Planning Commission

RECORD OF PROCEEDINGS OF THE PLANNING COMMISSION CITY OF BELLINGHAM, WASHINGTON THURSDAY WORK SESSION 7:00 P.M. September 21, 2017 CITY COUNCIL CHAMBERS Video-taped www.cob.org CALL TO ORDER: The meeting was called to order by Ali Taysi, Chairman of the Planning Commission. ROLL CALL: Ali Taysi (C), Garrett O'Brien (VC), Phyllis McKee, Steve Crooks, Lisa Anderson, Mike Estes and Iris Maute- Gibson Present: Ali Taysi, Garrett O'Brien, Steve Crooks, Phyllis McKee, Mike Estes and Iris Maute-Gibson Absent: Lisa Anderson Staff Present: Rick Sepler, PCDD Director; Lisa Pool, Senior Planner; Heather Aven, Recording Secretary. APPROVAL OF MINUTES No minutes submitted for approval. 15-MINUTE PUBLIC COMMENT PERIOD Deborah Middaugh spoke to the lack of regard for enforcement related to the regulations proposed at the last Commission meeting. She shared some photographs of different parking issues that she has witnessed in the community, and stated that the City needs to enforce its laws regarding 1) commercial uses in single-family neighborhoods; 2) illegally constructed units; 3) requirements for off-street parking; and 4) safe access for emergency vehicles. She also stated that, in her opinion, one parking space for every bedroom rented should be required. She emphasized that the Commission needs to carefully consider how their decisions impact the neighborhoods and its character. Anne Mackie commented on the discussion held by the Commission at their last meeting regarding enforcement. She stated that all steps related to the housing issues should be considered / discussed. She stated that if the City chose to enforce the existing housing rules, illegal rooming houses in single- family zones would not be allowed and maybe families could afford to move back in. She expressed her concern that the Commission upzoned the entire City by suggesting that detached ADUs be allowed in every neighborhood. WORK SESSION A work session on short-term rentals (e.g. Aribnb, HomeAway, etc.) in residentially-zoned areas. At this initial work session, staff will present background information, current city regulations and regulatory approaches used by other jurisdictions. STAFF PRESENTATION: Lisa Pool responded to the questions asked by the Commissioners at the August 17th work session and shared a potential regulatory approach that Bellingham could use with regard to short-term rentals in the city. Final Copy - 1 PUBLIC COMMENT Deborah Middaugh wondered why short-term rentals are being considered. She suggested that rather than rent the room short-term, owners should rent long-term, which could assist in addressing the housing shortage. Dick Conoboy spoke to enforcement of short-term rentals. He commented on the lack of enforcement that currently exists in the city. He questioned how enforcement will occur when the police don’t respond and parking enforcement is not “on the clock”. Jeff Middaugh commented on the lack of parking discussed in the staff materials. He wanted to know how short-term rentals will compete with the bed / breakfast regulations and noted the comments made by the South Hill Neighborhood. He asked the Commission to consider the impact they will have on the neighborhoods. Anne Mackie questioned why we are discussing turning our neighborhoods into commercial tourist attractions, when there is such a housing shortage crisis. She stated that she is in support of the Conditional Use Permit option to make short-term rentals a more laborious process. She mentioned that she does not believe that it should be the job of the neighborhoods to complain. She encouraged the Commission to take a stand and support more affordable housing, rather than short-term rentals. Jean Layton noted that the problem with short-term rentals is that they are businesses in single-family zoning. She commented that it undercuts the hotel/motel businesses who are not at capacity and supply jobs. She stated that the Commission will need to choose if they are going to support a business or individuals making money. COMMISSIONER QUESTION / COMMENT The Commission discussed a couple ideas:  The importance of having different rules for single rooms being rented vs. several rooms / entire house  Costs associated with monitoring services  How short-term rentals could be allowed in the Lake Whatcom watershed - but not within the shoreline jurisdiction  Enforcement strategy should not be solely complaint-based  Accessory use vs. primary use Review of Exhibit D: Application Requirement: It was suggested that staff review the process that applicants must go through with Airbnb so that the City can avoid duplicating work / cost. Business License: A comment was made about how this requirement could affect someone renting a single room to help make ends meet versus the entire home for profit. It was suggested that this requirement also be considered in a tiered approach with regard to the application / business license fees. It was suggested that exemptions be allowed for certain situations. Applicable taxes: All establishments are treated the same with regard to the LTAC guidelines. Staff will provide more details. Final Copy - 2 A brief conversation was held related to what some of the incentives could be to encourage participation in the program. Guest number limitation: Staff explained that this regulation would pertain to adults and children over a certain age in an effort to limit over-crowding. It was suggested that family traditions be considered when setting the "maximum" number of occupants. 24-hour local contact with two-hour response time: Requirement to have someone who could be responsible for connecting with the "renters" in the event the house rules are not followed. Through discussion, it was suggested that:  This may be an unrealistic requirement, and one that is not expected of any other home owner or business owner.  There are landlord responsibilities and in some instances, a back-up plan must be put in place.  Staff will collect more information on this topic. Age limitations on renters: Many jurisdictions place an age restriction of "25-years +" for the rental of an entire house. House rules posted in STR: These would be mandatory rules that must be followed for the duration of the stay, including:  Quiet hours  Parking requirements  Prohibition on large parties and events  No overnight use of RV or campers on site or in adjacent street right-of-way It was suggested that the rules be posted on the website, so potential renters know rules up front before engaging in a contract. There was a question as to whether these units would be required to participate in the Rental Registration program – to ensure signage and life/safety considerations have been complied with. Staff will investigate this topic further. There was a brief discussion on the idea of developing a method for renters to be rated, similar to the way the property owner might be. Basic life safety requirements: There was some question on how this could be ensured. STRs prohibited in Lake Whatcom Watershed (will be reviewed during the 2020 Shoreline Master Plan update). It was suggested that Lake Whatcom Watershed group be notified that this is being considered. There was general consensus that the prohibition should only pertain to the shoreline jurisdiction. Prohibited in detached accessory dwelling units (D-ADUs) Through discussion it was suggested that rather than prohibiting D-ADUs, the ordinance should include language that it be revisited in "x" number of years to review the housing stock and determine if it makes sense to allow short-term rentals in D-ADUs. Other suggestions included removing the prohibition all together. Final Copy - 3 Owner must reside in unit for rental of bedrooms and attached accessory dwelling unit  Maximum number of STR rental days = 182 days and administrative approval. No resident owner for rental of whole house or whole unit  Maximum number of STR rental days = 365 days and a Conditional Use Permit must be obtained There was a discussion about Type 1 not having a limit on the number of days as long as the owner truly occupies the home and the number of bedrooms being rented is two or less. Monitoring the number of days will occur through the host websites. Maximum number of STR Conditional Use Permits (Type III-A) permitted per owner  One permit Additional discussions were had on:  How many units in a multi-family complex (located in a single-family zone) can be used for short- term rentals. It was suggested that only one unit be allowed, rather than the "up to 25%" as it reads now.  The importance of considering dispersion.  The property owner must always be the applicant. GENERAL BUSINESS ADJOURNED: 9:35 p.m. Minutes prepared by: _____________________________ Heather Aven, Recording Secretary Minutes edited by Planning Commission members and various Planning Staff. Final Copy - 4