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HomeMy Public PortalAbout2022.02.25 Special Meeting MinutesMINUTES McCall City Council Special Meeting McCall City Hall -- Legion Hall VIA TEAMS Virtual February 25, 2022 Call to Order and Roll Call Work Session Return to Open Session Adjournment CALL TO ORDER AND ROLL CALL 1 Mayor Giles called the special meeting of the McCall City Council to order at 9:00 a.m. Mayor Giles, Council Member Nelson, Council Member Nielsen, and Council Member Thrower all answered roll call. Council Member Maciaszek arrived at 9:02 City staff members present were Anette Spickard, City Manager; Bill Punkoney, City Attorney; BessieJo Wagner, City Clerk; Michelle Groenevelt Community and Economic Development Director; Brian Parker, City Planner; Rachel Santiago-Govier, Permit Tech; Meredith Todd, Assistant Planner; John Powell, Building Inspector; Linda Stokes, City Treasurer; Emily Hart, Airport Manager; Vlatko Jovanov, Network Administrator; Chris Curtin, Information Systems Manager; Traci Malvich, Human resources Also in attendance Garrett De Jong, Fire Chief WORK SESSION 1 AB 22-055 Permitting and Regulating Short Term Rentals Discussion and Direction to Staff - 2nd Touch Community and Economic Development Director Michelle Groenevelt presented to Council giving a brief overview of the previous work session and the current City Code. The purpose of this second work session is to review suggested code changes based on the first work session and staff recommendations to improve health and safety issues for Short Term Rentals (STRs). The work session discussions will focus on how to better regulate STRs based on input from the McCall Fire District, Building and Planning. The topics areas would ultimately affect Title 4 and Title 3 as permitting and regulating STRs is a collaboration between the Clerk's Department and Community and Economic Development Department. The intent of this work session is to further discuss the topic areas at more detail to help inform any change in policy needed. Director Groenevelt suggested adding an inspection process for every short-term rental with the inspection being built into the licensing or permitting process as an annual inspection or an inspection at the change of ownership. Adding the inspection process would require additional staff through the fire district. Fire Chief Garrett DeJong noted that the fire district is looking at the MCCALL CITY COUNCIL Page 1 of 6 February 25, 2022 Regular Meeting budget with a goal to create a full-time position for inspections. A health safety inspection checklist would be created to ensure all short-term rentals are meeting health safety regulations. Staff is considering a recommendation to change occupancy allowance and working on defining what a bedroom is and how to determine how many bedrooms a rental contains. Currently occupancy is set at 4 persons per bedroom, staff recommends reducing occupancy to 2 persons per bedroom and possibly deleting the current Conditional Use Permit process for large occupancy short-term rentals. Another issue to address is the use of basements and lofts as additional bedrooms and the fire safety concerns created by the practice. Mayor Giles asked what the tipping point is for requiring sprinkler systems and at what point does a short-term rental become a small hotel. Director Groenevelt noted that staff is still working out those details, but the goal is to create codes that make sense and are defensible. Attorney Punkoney commented that the City can require sprinklers for commercial uses such as hotels under international fire code. Under state code, those provisions do not apply to residential structures, but it is being looked at by staff to improve safety in short term rentals. The City needs a body of facts to support any decisions made to be able to regulate in a defensible manner within the constraint of the state code. The goal is to be in the best position to protect the residential nature of neighborhoods, the safety of residents and visitors, and to be able to prevail if a lawsuit occurs. Council Member Maciaszek asked if there is something in code for a home over 5000sqft to require fire sprinklers. Building Official John Powell commented that residential building code used to require fire sprinklers for all residences, but the state of Idaho amended the code, and it is no longer required for residential construction. Council Member Maciaszek would like to open the door to property managers for their input on the process. Reducing the occupancy is a reasonable change and defining what constitutes a bedroom for occupancy is important for health safety reasons. Inspections should have a fee separate from the permitting fee; it is not unreasonable to pass the cost of inspection on to the owner of the short-term rental. Council Member Nelson strongly supports the change of occupancy to 2 persons per bedroom for safety and staying within the character of the neighborhood. Council Member Nelsen is alarmed by the high -density projects that have short-term rentals. The increased density potentially doubles the initial impact of the development. Can the character of the neighborhood be used to impose density limits for short-term rentals? How can homeowners' associations limit short-term rentals in the way that the Woodlands HOA currently limits short-term rentals? Clarification is needed for the public on how local option taxes can and cannot be imposed on short-term rentals. Council Member Thrower is in favor of inspections and imposing a fee for inspections. Having short-term rentals inspected annually and permit renewal yearly is key to ensure safety for occupants. The City needs proactive enforcement for parking and impacts to the neighborhood and there needs to be consequences for either the property manager or the owner when regulations are not followed. She was in favor of an addition of an enforcement fee worked into the permitting fee based on a percentage of occupancy. Council Member Thrower supports the occupancy change to 2 persons per bedroom for safety and taking pressure off the water and sewer systems as well as keeping the character of the neighborhood residential. She questioned doing away with the CUP for larger rentals stating that there needs to be a way to limit the impact of large occupancy short term rentals. She would like staff to look at the structure of Sand Point's short-term rental limiting the number of STRs but understands there may be legal ramifications with implementing the same MCCALL CITY COUNCIL Page 2 of 6 February 25, 2022 Regular Meeting structure in McCall. She is also interested in additional language around the parking restrictions regarding parking in the right of way. Attorney Punkoney clarified that homeowner associations cannot add, amend, or enforce limiting or prevent short-term rentals under Idaho state code regardless of if the restriction was in place before the code changed in 2016. Planner Parker noted that an option would be to use deed restrictions on new developments and some developers may voluntarily offer a deed restriction against short-term rentals. Council Member Thrower questioned the ability to have a different fee structure for owner occupied short-term rentals. Council Member Nelsen noted that the Woodlands have limited short-term rentals successfully since 2016. Council Member Nielsen asked for clarification if a neighborhood got together and created an HOA, they cannot regulate short-term rentals. Attorney Punkoney noted that it is a bit of grey area because CC&Rs run with the land but if all the owners agree in writing to be limited by the regulation. Deed restrictions are a better tool because CC&Rs can be amended but the deed restriction cannot. Council Member Nielsen agrees with the rest of Council and staff and believes the City is moving in the right direction. There may be some push back on the lower occupancy, but it is a reasonable adjustment. Director Groenevelt noted that the occupancy limit is really to cap the total number of people but there would not be anything to stop a rental from sleeping 3 people in one bedroom and 1 in a second bedroom. Council Member Nelsen would like to see the County work with the City for more consistency on short-term rental regulations over a wider area. Property management is key to regulating short-term rentals and being proactive. Is it possible to require on site management for certain situations? Mayor Giles noted that Council and staff are headed in the right direction and there is unanimous support from Council. Mayor Giles is uncomfortable with giving up the CUP process for large occupancy short-term rentals. Director Groenevelt noted that deleting the CUP option would eliminate an avenue to increase the occupancy per bedroom, but if Council would like, staff can look at drawing the threshold to structure size and not occupancy. Council Member Thrower noted that having the ability to add additional conditions before approving a CUP would be a great tool. Attorney Punkoney noted that the state has an activist legislature and suggests the City take actions that are known to be effective and not be overly aggressive because it will be noticed by the legislature. Mayor Giles asked about an additional Local Option Tax for short-term rentals of all varieties including hotels. How can the City use the additional funds to be proactive to provide opportunities for long term rentals and workforce housing? Council Member Nielsen asked Mayor Giles for clarification. Mayor Giles noted that he is proposing an additional LOT tax to be used for implementing deed restrictions, land banking and providing workforce housing. Council Member Nielsen noted that the City already has a short-term rental LOT tax. City Clerk BessieJo Wagner clarified that the City has a 7% LOT tax on all short-term rentals. Manager Spickard further noted the City currently has an ordinance already defining the use of Local Option Tax funds for local housing. Manager Spickard asked Director Groenevelt and Attorney Punkoney how fractional ownership plays into the discussion around short-term rentals, and at what point is owning one week a year considered a short-term rental? Attorney Punkoney noted it would merit staff time to investigate the issue. Additionally, Manager Spickard asked if the City changes the current process to a permit through Community Development from a business license through the City Clerk's office, could MCCALL CITY COUNCIL Page 3 of 6 February 25, 2022 Regular Meeting the City take the new code to the County Commissioners and ask for it to be adopted in the impact area? Director Groenevelt noted staff needs to address which pieces of the code update would fall under Title 4 and which pieces would fall under Title 3. Council Member Nelsen summarized that the City is not against short-term rentals but rather has concern surrounding safety. Director Groenevelt mentioned the need for public outreach once Council's goals are clearly defined. Clerk Wagner noted that DoneRight Management has made comment in support of additional regulations for short-term rentals and encourages a requirement of a noise limiting device. Council took a 10 -minute break. AB 22-056 Set Council Strategic Priorities for 2022 Discussion and Direction to Staff City Manager Anette Spickard addressed the Council. At the Council Retreat on January 28, 2022 the Council brainstormed the following list of possible strategic priorities for Council focus in 2022. The purpose of this discussion is to review the list, make any additions or deletions, and finalize the priorities. Mayor Giles emphasized researching Local Option Tax options for workforce housing. Council Member Nelsen mentioned looking at managing and shaping growth and development. Council Member Nielsen noted working with the County and having a close working relationship with County Commissioners. Council Member Nielsen asked when the City will transition to electric vehicles for the City Fleet. Manager Spickard noted that staff is looking into power infrastructure in conjunction with the library expansion project. Council Member Nelsen noted the importance of fire resiliency and preparedness in relation to environmental management. Council Member Thrower asked about re- establishing the previous Environmental Advisory Committee. Manager Spickard observed the struggle to fill the committee open seats but with new goals for the committee to focus on there may be more community interest. Council Member Thrower would like to see Council focus on traffic management in residential areas, specifically commercial, construction and UTV traffic traveling through neighborhoods. Manager Spickard gave an overview of the work staff is doing in relation to the Sewer District Master Plan, updates on the Resort Cities Coalition and summarized the priorities outlined by Council. Council Member Nelsen added a priority of community health and well-being. • Local housing and workforce initiatives a. Local option tax for future election to support housing initiatives. Research and determine ability to ask voters to approve a new ordinance b. Housing Action Plan/Housing Advisory Committee initiatives c. Broad look at managing growth, through development codes, work with county on the cooperative planning initiative and shared impacts beyond our city limits. Relationship with county is high priority. • Studying traffic demands and updated transportation planning, including continued partnership with ITD for the Highway 55/Deinhard-Boydstun improvements • Environmental management/climate resiliency actions MCCALL CITY COUNCIL Page 4 of 6 February 25, 2022 Regular Meeting a. Explore transition to a city EV fleet b. Evaluate City Campus for public EV stations c. Wildfire Resiliency and Planning d. Try to re-establish the EAC to implement the Climate Resilience plan e. Follow through on Lake Management and Waterways plans/water quality issues identified through those planning processes. • Establish a Youth Council using the Association of Idaho Cities model as a guide • Neighborhood quality improvements in response to concerns residential neighborhoods are being overrun by visitors. a. What are ways to increase community/good neighbor culture? b. Create pocket neighborhoods for workforce housing with full time residents and apartments for workers, larger units for families with affordable rents c. Can we reroute commercial/construction truck traffic away from residential? d. What can we regulate regarding UTV traffic on city streets? e. Traffic enforcement, traffic calming devices? f. What impacts happened from right turn only at Railroad last summer? Thompson Ave impacts. • Creative community engagement efforts, make sure we are getting shared thoughts from the community, and they can participate with council. • Sewer District Master Plan process • Advocating for a share of federal dollars received by the state for housing and infrastructure • Legislative advocacy through the Resort Cities' Coalition • Community Health and Well -Being remains a value. Promote opportunities to be healthy and active. AB 22-057 Update on Federal Coronavirus State and Local Fiscal Recovery Funds (SLRF) Discussion and Direction to Staff City Manager Anette Spickard and City Treasurer Linda Stokes presented to Council giving an overview of deadlines and utilization options. As part of the American Rescue Plan passed by Congress in response to the Coronavirus pandemic, state and local governments were allocated $350 Billion across the country through the SLRF. The payments are spread over two funding cycles and granted to local governments based on population percentages. The US Treasury Rule for use of the funds is effective April 2022. The purpose of the SLRF is to: • Fight the pandemic and support families and businesses struggling with its public health and economic impacts, • Maintain vital public services, even amid declines in revenue, and • Build a strong, resilient, and equitable recovery by making investments that support long-term growth and opportunity Council Member Maciaszek noted it would be logical to use the funds to address the priorities outlined by Council for 2022 with the focus being local housing. Council Member Thrower agreed with focusing on local housing. Mayor Giles commented that there is a lot to gain from having community involvement in the decision of how to use the funds. Allow residents to have time to provide input on the direction the Council sees as priority for the community and have more transparency about the how and why the final decision is made. Council Member Nelsen agrees MCCALL CITY COUNCIL Page 5 of 6 February 25, 2022 Regular Meeting with the importance of community input in the process. Council Member Nielsen noted that local housing would be a meaningful investment for the community that supports growth and opportunity in line with the purpose of the SLRF. Manager Spickard will continue to keep Council informed as staff works to identify specific opportunities with the feedback provided by Council. The guidelines allow for funds to be combined for partnership projects with other government entities which opens possibilities to work with the County and other cities ADJOURNMENT 1 Without further business, Mayor Giles adjourned the meeting at 11:00 a.m. ATTEST: o• OF Mcc'4%,.. ii i *' 84, : I •a s .../LZ j's IL i ;Robert S. Giles, Mayor 1Hl►►►►►►l' MCCALL CITY COUNCIL Page 6 of 6 February 25, 2022 Regular Meeting