HomeMy WebLinkAboutPlanning September 16 20141
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WHATCOM COUNTY COUNCIL
Planning and Development Committee
September 16, 2014
CALL TO ORDER
Committee Chair Ken Mann called the meeting to order at 3:05 p.m. in the Council
Chambers, 311 Grand Avenue, Bellingham, Washington.
ROLL CALL
(3 :08:00 PM)
Present: Ken Mann, Barbara Brenner and Rud Browne.
Absent: None.
Also Present: Barry Buchanan, Pete Kremen and Sam Crawford.
COMMITTEE DISCUSSION
1. DISCUSSION OF POSSIBLE OPTIONS FOR REGULATION OF VACATION
RENTAL USES IN WHATCOM COUNTY (AB2014 -295)
Gary Davis, Planning and Development Services Department, gave a staff report and
read through the staff memo beginning on Council packet page 364. He described the
options listed in the staff memo.
Brenner stated jurisdictions should consider whether there is adequate sewer service
or septic capacity for these uses.
Mann asked and there was discussion about the ability for enforcement on a
potential rental unit.
Kremen asked and there was discussion about the threshold for a transient rental
compared to a long -term rental.
Mann asked about the option that includes a registration requirement and whether
the County would create its own regulation and licensing bureaucracy, or make sure they
comply with State licensing. Davis stated many jurisdictions have set up their own licensing
programs.
Browne stated he supports option four, which allows the use as permitted with
restrictions and with a registration requirement. If the County is going to allow someone to
do a vacation rental by owner (VRBO), they are obligated to care for the safety of the
guests.
Royce Buckingham, Prosecutor's Office, stated concerns about VRBO are occurring all
over the country. There are key terms on Council packet page 378. There is no definition
for this specific type of rental. At the minimum they must create a current definition for a
short -term rental. Currently, the Code is silent about this type of use.
Planning and Development Committee, 9/16/2014, Page 1
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Brenner asked and there was discussion about whether the Code prohibits any use
not expressly written.
Clayton Petree spoke about existing rentals in rural areas. Investigate the potential
impacts on those types of operations. Make regulations easy to comply with. Don't require
a new permit for each event, as the Planning Commission is talking about. Another concern
is about those people who take working vacations in rural areas.
Paul Taylor spoke about the draft amendment, which should address safety issues.
These are commercial businesses and should adhere to safety standards, including
substandard roads, access for emergency vehicles, and adequate septic system capacity.
Allowing the VRBO would upzone every residential zone in the county. He recommends
option three to allow them in specific areas, including on large parcels that don't impact
neighbors, or in areas where there are already tourism uses. Don't allow them in the
watershed.
Don Gustafson spoke about his presence in his house while a portion of it is rented
out so he can monitor what is going on, the maximum number of people who rent his rooms
at one time, not allowing loud or large events, State licensing and paying taxes, and
generating tourism dollars from VRBO units. He supports option two.
Mann asked and there was discussion about Mr. Gustafson's license with the State.
John Sutley spoke about past bad behavior of his neighbors who rent out their
homes, the increased traffic, enforcement, the current code about rental cabins being the
most relevant code requirement, considering growth management requirements, and
current enforcement through the Sheriff's Office.
Cindy Walker spoke about how she rents out her home responsibly, never having
any noise issues, the benefits of tourism, and how well her home is taken care of. The
problem is not with VRBOs, but with the individual home owners who don't take care of
their properties responsibly.
Patrick Alesse submitted information (on file) and spoke about the number of
vacation rentals by owner in Birch Bay and keeping the process simple.
Perry Eskridge, Whatcom County Association of Realtors, stated be cautious about
knowing how many complaints are actually received, who the complaints are coming from,
and the nature of the complaints. He spoke about travel trends that shift away from hotels
and toward home rentals.
Jane Terpsma spoke about not blaming or targeting responsible VRBO owners,
addressing the actual problems instead of banning short -term rentals, and addressing
nuisance neighbors directly instead of involving local government officials.
Peggy Gustafson spoke about the countries where her renters live, tourism revenue,
property owners who don't take care of the property they live on, and her setback
requirements. The licensing for her VRBO is only as a limited liability corporation (LLC)
business operating license. She also pays a business tax with the State Department of
Revenue.
Browne stated neither of those are licenses specifically for a VRBO.
Planning and Development Committee, 9/16/2014, Page 2
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Crawford asked the location of the Gustafson VRBO and stated one VRBO owner
advertises that their renters don't need a County boating permit.
Eric Moore spoke about his experience as a hospitality manager and VRBO owner,
complaint problems being regulated already by other laws and ordinances, not punishing
responsible owners, the businesses being self - regulated due to reliance on customer
reviews, and small business owners having an opportunity to have a small VRBO business.
Dan Graham spoke about allowing vacation rentals to exist peacefully next to
residences, supporting option two, having good neighborhood relationships, supporting the
creation of a licensing structure, and making sure VRBO owners pay taxes.
Mann asked if the licensing structure should be just a business license or should also
include an inspection and regulatory function. Graham stated require a State business
license, make sure they pay taxes, and have a general set of guidelines, but no
enforcement body.
Loni Rahm, Bellingham - Whatcom County Tourism Bureau, spoke about her
experience with this issue in Chelan, Washington. Most of the owners today indicate they
have proper licensing, are paying proper taxes, and that the business depends on a good
reputation. This industry generates millions of dollars. Transient lodging is defined as any
rental less than 30 days, according to the Department of Revenue. She explained the 10.5
percent tax that the owners pay, which generates four percent that comes back to Whatcom
County.
Mann asked and there was discussion about whether hotels are resistant to VRBOs
because they may have a competitive advantage and have lower operational standards.
Brenner asked and there was discussion about whether the County has safety rules
and handrails in residential structures.
Sam Ryan, Planning and Development Services Director, stated there are safety
requirements. There is no inspection program now. She is more concerned about facilities
that act more as hotels than as residences.
Browne described a recent experience he had with a residential rental in which work
had been done illegally. There are no inspection triggers, despite receiving good reviews.
The VRBO market will grow. He supports an owner's ability to generate income, but make
sure there is safety, tax fairness, and neighborhood fairness. An inspection program can
improve the marketability of a VRBO.
Davis stated the Whatcom County Code doesn't currently have a 30 -day definition
for transient lodging.
Kremen stated any policy should require a VRBO to follow standards for legal reasons
and to have adequate utility capacity, including sewage, electricity, water, and all other
utilities. If there is a complaint or reason for inspection, they would be out of compliance,
be shut down, and may have to pay a fine, especially in the Lake Whatcom watershed. The
use shouldn't be allowed in the Lake Whatcom watershed.
Crawford stated he supports Councilmember Kremen, but don't create a local
licensing system. He is in favor of making it an allowed permitted use in single family
residential zones. They need to define the standards. The system would be complaint-
Planning and Development Committee, 9/16/2014, Page 3
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driven. As a resident, he has an obligation to talk with the neighbors when there are
concerns.
Mann stated he supports item two as an accessory use. He asked and there was
discussion of why it would be an accessory use instead of a permitted use. He supports
making sure that all utilities are up to standard. He supports option two.
Browne stated don't require an existing VRBO to be reviewed and brought up to
current code, but he would like a suggestion on the minimum safety requirements they
would want to see. He doesn't know yet how to ensure compliance. Require basic safety
measures.
Brenner stated have standards, but don't require an inspection.
Davis stated the Planning Commission could address the issue at the beginning of
next year. It seems there is councilmember consensus on option two.
The Committee concurred.
Mann stated staff will schedule this before the Planning Commission for discussion
next year.
OTHER BUSINESS
There was no other business.
ADJOURN
The meeting adjourned at 4:30 p.m.
ATTEST:
Dana Brown - Davis, Council Clerk
Jill Nixon, Minutes Transcription
WHATCOM COUNTY COUNCIL
WHATCOM COUNTY, WASHINGTON
Ken Mann, Committee Chair
Planning and Development Committee, 9/16/2014, Page 4