HomeMy WebLinkAbout08-14-17 City Commission Packet Materials - A5. Ordinance 1974 Provisional Adoption, Short Term Rentals
Page 1
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Chuck Winn, Assistant City Manager Karen Stambaugh, Assistant City Attorney
SUBJECT: Provisional adoption of Ordinance 1974 Regulating Short Term
Rentals in the City of Bozeman
MEETING DATE: August 14, 2017
AGENDA ITEM TYPE: Action
RECOMMENDATION: Consider provisional adoption of Ordinance 1974. This ordinance
would amend Chapter 12 of the BMC to exempt STRs from the requirement to obtain a business
license and amend Chapter 38 of the Bozeman Municipal Code (BMC) to add short term rental
(STR) regulations, amend authorized use tables, establish registration requirements, establish
standards, provide for enforcement and penalties and provide an effective date.
RECOMMENDED MOTION #1: Having reviewed and considered the proposed ordinance,
public comment, recommendation from the Zoning Commission, and all the information
presented, I hereby adopt the findings presented in the staff report for application 17185 and
move to provisionally adopt Ordinance 1974.
RECOMMENDED MOTION #2: Having provisionally adopted Ordinance 1974, I move to
direct staff to bring back a fee resolution and take all other steps necessary to implement short
term rental regulations consistent with the provisionally adopted ordinance.
BACKGROUND: The City Commission considered a previous draft version of Ordinance
1974 at its regular meetings on May 22 and June 22, 2017. The Zoning Commission, after
considering the draft ordinance on May 16, 2017, voted against recommending adoption of the
ordinance as written.
The City Commission made several motions to amend the ordinance (see minutes of the May 22
and June 22 meetings, attached). Because of the extent of these amendments, the City Attorney
recommended the ordinance be redrafted and presented again to the Commission for its
consideration and provisional adoption. Included in the motions to amend adopted by the
2982
Page 2
Commission were the prohibition of Type-3 STRs in all residential zoning districts, and direction
to staff to draft provisions to “grandfather” existing STRs already in operation so that they may
register and comply with the STR standards set out in the proposed ordinance.
The following table summarizes the changes between the draft Ordinance 1974 presented at the
May 22 and June 22, 2017 meetings and the redrafted Ordinance 1974 for consideration at the
August 14, 2017 meeting:
Zoning Districts Type-3 STRs prohibited in all residential zoning districts: R-S, R-1, R-2,
R-3, R-4, R-5, R-O, RMH1 (Table 38.08.020)
“Operating”
Defined
Added a definition for “operation of” or “operating” an STR to clarify
the activities that are proposed to be regulated and to aid in
understanding and implementing the proposed grace period and
“grandfathering” provisions in sections 7 and 8 of the ordinance. See
38.22.250.C.4 of the draft ordinance.
Requirement for
tax identification
number
Added a requirement that the Montana Department of Revenue tax
identification number assigned to the STR be provided when registering
the STR with the Department of Community Development. See
38.22.250.H.2 of the draft ordinance. This edit was made to assist in
enforcing the requirement in the draft ordinance that the STR comply
with all applicable laws.
Grace period Section 7 describes the proposed grace period – 60 days after the
effective date of the ordinance – during which currently operating STRs
that are authorized under the new ordinance can come into compliance
with the ordinance. During the grace period the STR would not be in
violation of the ordinance for failure to register. STRs with a current
business license may wait to register, but must have registered their STR
by the time the business license expires. During the grace period, the
STR owner could “self certify” it meets the fire inspection requirements
and continue operating pending completion of a fire inspection.
“Grandfathering” Section 8 describes the process to “grandfather” currently operating
STRs in residential zoning districts where they are not authorized under
the new ordinance. The process would differ depending on whether or
not the STR is located in a residential zoning district where a CUP was
required for extended stay lodging before adoption of the Interim Zoning
Ordinance 1958 on August 8, 2016. If a CUP was required but not
1 Because “extended stay lodging” is not an authorized use in RMH in the current Chapter 38, Ordinance 1974 does not include STRs as an authorized use in RMH.
2983
Page 3
previously obtained, the grandfathering process would include
application for an administrative CUP. If there is a valid CUP for the
property, the grandfathering process would be the STR registration
described in the Ordinance. The period during which such STRs can
register and be “grandfathered” is either 60 days after the effective date
of Ordinance 1974, or before expiration of a current business license,
whichever is later.
Sections 7 and 8 of the ordinance include a list of evidence an applicant could provide to prove
current operation.
In drafting Sections 7 and 8, staff was mindful of the Commission’s stated intention to bring all
currently operating STRs into compliance with the new regulations, whether or not such STR
type is authorized after the effective date of Ordinance 1974. Encouraging the registration of all
STRs currently operating will aid the City in determining the extent of this use and will help
community members obtain information on who to contact in case of compliance issues.
Compliance monitoring and enforcement: Since the June 22 meeting, staff has received a second
quote for compliance monitoring software called “STR Helper”. Like Host Compliance, the
software package previously discussed, STR Helper can identify listings within the City, send
code enforcement letters (such as educational letters to non-registered STRs, notices of violation,
reminder letters to renew registration, etc.), and provides Code Enforcement officers evidence of
STR operation in violation of the City’s regulations. It also offers an online portal which would
reside on the City’s website for registration of STRs and an online portal for submitting
complaints to the City. Staff intends to present a proposal and license agreement from one of the
vendors for the Commission’s approval if Ordinance 1974 is finally adopted.
UNRESOLVED ISSUES: None identified regarding adoption of this ordinance.
ALTERNATIVES: As suggested by the Commission.
FISCAL EFFECTS: Staff time will be required for code enforcement and fire inspection
activities should the Ordinance be finally adopted.
Attachments:
A: Proposed Ordinance 1974
B: Staff Report Dated May 17, 2017 for Application 17185
C: Minutes of May 22, 2017 City Commission Meeting
D: Minutes of June 22, 2017 City Commission Meeting
E: Flowchart of proposed STR registration process
F: Flowchart of proposed STR registration renewal process
2984
EXHIBIT A
Page 1
ORDINANCE NO. 1974
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA AMENDING CHAPTER 12 OF THE BOZEMAN MUNICIPAL CODE TO
EXEMPT SHORT TERM RENTALS FROM THE BUSINESS LICENSE
REQUIREMENT; AMENDING CHAPTER 38, UNIFIED DEVELOPMENT CODE, TO
ADD SHORT TERM RENTAL REGULATIONS, AMEND AUTHORIZED USE TABLES,
ESTABLISH REGISTRATION REQUIREMENTS AND FEES, ESTABLISH
STANDARDS, AND PROVIDE FOR ENFORCEMENT AND PENALTIES; AND
PROVIDING AN EFFECTIVE DATE
WHEREAS, the City is authorized by its Charter and Montana law to adopt zoning
regulations and provide for the enforcement and administration of zoning regulations pursuant to
76-2-304, MCA; and
WHEREAS, the Director of Community Development is authorized to determine the
appropriate classification of a particular use within zoning districts pursuant to 38.07.050, BMC;
and
WHEREAS, “extended stay lodging” has been authorized as a conditional use in R-1, R-
2, R-S, and NEHMU zoning districts and as a principal use in R-3, R-4, R-5, R-O, B-2, B-2M,
B-3, REMU and UMU zoning districts; and
WHEREAS, Interim Zoning Ordinance 1958 (as extended by Ordinance 1970) repealed
and suspended extended stay lodging as a conditional use in R-1, R-2, R-S and NEHMU until
August 8, 2017 and directed the City Manager to research, seek public input on, and develop
recommendations for the regulation of short term rentals; and
WHEREAS, it is in the interests of the city to establish regulations and standards for
short term rental operations to ensure the public health, safety and welfare of city residents and
visitors.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF BOZEMAN, MONTANA:
2985
EXHIBIT A
Page 2
Section 1
Legislative findings:
1. Short term rentals provide economic opportunities to short term rental owners and other city
businesses by attracting visitors to engage in economic and social activities within the city.
2. Short term rentals add to a vibrant, diverse and welcoming community by providing
accommodations for a wide variety of visitors, including tourists and travelers, friends and
family of residents, and temporary workers.
3. The intent and purpose of all residential zoning districts is to establish areas that are
primarily residential in character.
4. The primary intent and purpose of R-S, R-1, and R-2 residential zoning districts is to
provide for primarily low and moderate density residential development and related uses
within the city, and to provide for community facilities that serve such development while
respecting the residential quality and nature of the area.
5. The primary intent and purpose of R-3, R-4, R-5, and R-O residential zoning districts is to
provide for the development of medium and high density residential development with a
variety of housing types along with secondary nonresidential uses, and to provide for
community facilities that serve such development.
6. The short term rental of sleeping rooms in an owner-occupied dwelling unit while the owner
is present on the property, and rental of an owner-occupied dwelling unit for part of the year
are primarily residential uses.
7. The short term rental of a dwelling unit by an owner who does not occupy the home as their
primary residence is not a primarily residential use.
8. Restrictions on noise and maximum occupancy, and requirements providing for life safety
inspections and easy reporting of concerns and complaints are necessary to help protect city
residents’ peaceful enjoyment of their residences and neighborhoods.
9. Reasonable, narrowly tailored regulation of short term rentals is necessary to protect the
health, safety and welfare of city residents and visitors.
Section 2
That Chapter 12, Article 1 of the Bozeman Municipal Code, Business Licensing, be
amended as follows:
Sec. 12.01.010. - Definitions.
2986
EXHIBIT A
Page 3
. . .
4. "Home occupationHome-based business" means the use of a portion of a dwelling as an
office, studio or workroom for occupations at home by one or more persons residing in the dwelling unit. No home occupation shall occupy more than 20 percent of the gross floor area nor more than 400 square feet of gross floor area. The activity must be clearly incidental to the use of the dwelling for dwelling purposes, and shall not change the
character or appearance thereof has the meaning ascribed to it in 38.42.1380.
Section 3
That Chapter 12, Article 2 of the Bozeman Municipal Code, Business Licensing, be
amended as follows:
Sec. 12.02.040. - Exemptions.
A. No license shall be required of any person or entity for any mere delivery in the city of any
property purchased or acquired in good faith from such person or entity as the person or entity's regular place of business outside the city where no intent by such person is shown to exist to evade the provisions this chapter.
B. No license shall be required of any nonprofit organization as defined by this chapter.
C. No license shall be required of any person under 18 years of age.
D. No license shall be required for any property manager managing or renting less than three rental dwelling units as defined in 38.42.940.
E. No license shall be required for short term rentals as defined in 38.42.2835.
EF. The exemptions listed in subsections A, B, C, and D and E of this section do not apply to
a transaction, use, or business involving marijuana.
Section 4
That Chapter 38, Articles 8 (Residential Zoning Districts), 9 (Residential Emphasis Mixed-
Use Zoning District), 10 (Commercial Zoning Districts), and 11 (Urban Mixed-Use Zoning District)
of the Bozeman Municipal Code be amended to remove the term “extended stay lodging” as a type
of authorized use, and to add “short term rental” as an authorized use in certain zoning districts, as
follows:
2987
EXHIBIT A
Page 4
Table 38.08.020
Table of Residential Uses
Authorized Uses
R-S R-1 R-2 R-3 R-4 R-5 R-O RMH
Extended stay lodgings C C C P P P P —
Short term rentals (Type 1) P P P P P P P —
Short term rentals (Type 2) — — P P P P P —
Short term rentals (Type 3) — — — — — — — —
Table 38.09.020
Table of Uses
Table of Uses Maximum Gross Building Area Authorized Uses
Extended-stay lodgingsShort term rentals (all types) 40,000 square feet P
Table 38.10.020
Table of Commercial Uses
Authorized Uses
B-1 B-2 B-2M B-3
Extended-stay lodgingsShort term rentals (all types) -- P P P
Table 38.11.020
Table of Uses Authorized Uses
Extended-stay lodgingsShort term rentals (all types) P
2988
EXHIBIT A
Page 5
Section 5
That Chapter 38, Article 42 of the Bozeman Municipal Code be amended as follows:
Sec. 38.42.390. - Bed and breakfast home.
A single-household dwelling which remains owner-occupied at all times providing one or
more guest rooms for compensation, and where food service is limited to breakfast which may
be served to overnight guests only.
Sec. 38.42.940. - Dwelling.
A building, or portion thereof, meeting the requirements of the city's adopted International Building Code and used by one household, as defined by this article, for residential
purposes. Dwelling occupancy duration is typically longer than 30 continuous days. Dwellings
may exist in many configurations, including single-household, two-household, multiple-household dwellings and group homes. Dwellings do not include hotels, motels, extended stay lodgings or tourist homesType-3 short term rentals as defined in article 22.
Sec. 38.42.1040. - Extended stay lodgingsReserved.
Guest rooms intended or designed to be used, or which are used, rented or hired out to be
occupied, or which are occupied for sleeping purposes for guests and contain kitchen facilities for food preparation, including, but not limited to, such facilities as refrigerators, stoves and ovens. Generally an individual guest will not exceed 30 days stay. This definition includes dwelling units used, rented or hired out for vacation homes.
Sec. 38.42.1410. - Hotel or motel.
A building or a group of buildings in which lodging is provided and offered to transient guests for compensation; the term "hotel or motel" shall not include a boardinghouse, extended stay lodgings short term rental, lodginghouse or roominghouse.
Sec. 38.42.2835. – Short term rental.
A vacation home, tourist home as defined in MCA 50-51-102, a dwelling as defined in
38.42.940, accessory dwelling unit, or room within a vacation home or dwelling, which is rented
by or on behalf of the owner to the general public for compensation for transient occupancy as
provided for in article 22.
Section 6
That the Bozeman Municipal Code be amended by adding a new section 250, Short term
rentals, to Chapter 38, Article 22, Unified Development Code – Standards for Specific Uses, as
follows:
2989
EXHIBIT A
Page 6
Sec. 38.22.250. – Short term rentals.
A. Purpose and intent.
The purpose of this article is to provide for the regulation of short term rentals in certain zoning
districts within the city in order to preserve neighborhood character while encouraging economic
activity and diversity, and to promote public health, safety, and welfare.
B. Applicability.
1. The provisions of this article apply only to short term rentals as defined herein.
2. This article does not apply to any rental of a dwelling unit which is governed and
defined by The Montana Residential Landlord and Tenant Act of 1977 (Landlord
Tenant Act). This article applies only to transient occupancy of a short term rental as
defined herein.
3. A lower-priced or moderate-priced home subject to and defined by chapter 38, article
43, or a dwelling that received financial support from the city, including but not
limited to down payment assistance, impact fee payment, or other financial subsidy,
may not be used as a short term rental until such time as the lien instrument against
the property in favor of the city securing the amount of such subsidy has been
released and the release recorded with the Gallatin County Clerk and Recorder’s
Office.
C. Definitions.
For purposes of this article, the following definitions apply:
1. Hosting platform means a person or entity that provides a means through which an
owner may advertise and offer for rent a short term rental to the general public.
2. Owner includes any part owner, joint owner, tenant in common, joint tenant, tenant
by the entirety, or lessee with exclusive possession under a valid lease or rental
agreement, and any agent of the owner such as a property manager.
3. Owner-occupied means the owner occupies the dwelling as his or her principal
residence for more than 50% of the calendar year.
4. Operation of or operating a short term rental means the short term rental has been
rented by or on behalf of the owner to the general public for compensation for
transient occupancy. “Operation of” or “operating” a short term rental does not
include mere advertisement of or offering to rent short term rental(s).
2990
EXHIBIT A
Page 7
5. Responsible person means the person responsible for addressing all maintenance,
nuisance, and safety concerns related to a short term rental.
6. Short term rental is defined in article 42 of this chapter.
7. Transient occupancy of a short term rental means occupancy which has the
following characteristics:
a. The period of occupancy is less than 28 consecutive days, and
b. The renter has a principal residence other than the short term rental, and
c. The short term rental is furnished with personal property necessary to make the
unit ready for immediate occupancy by the renter.
D. Short term rental classifications.
Short terms rentals are classified as:
a. Type-1: A short term rental of one or more bedrooms in an owner-occupied
dwelling while the owner is occupying the same dwelling unit for the entire rental
period.
b. Type-2:
(1) A short term rental of an owner-occupied dwelling if the owner is not
occupying the dwelling during the entire rental period.
(2) A short term rental of a permitted accessory dwelling unit (ADU) whether or
not the ADU’s owner is present in the primary dwelling unit during the rental
period.
(3) A short term rental of one dwelling unit within a duplex whether or not the
duplex’s owner is present in the duplex’s other dwelling unit during the rental
period.
c. Type-3: A short term rental that is not owner-occupied.
E. Where allowed. An owner may operate a short term rental in all zoning districts where
such use is authorized in Chapter 38, articles 8-11 and 14 subject to the requirements of
this article.
F. Compliance with laws.
1. In addition to the provisions of this article, the short term rental owner must comply
with all other applicable local, state and federal laws, including but not limited to city
parking regulations, including time limitations and ADA parking restrictions; lodging
facility use tax and accommodations sales tax regulations; health department
2991
EXHIBIT A
Page 8
permitting requirements; the Americans with Disabilities Act; fair housing laws;
building codes and fire codes, and the nondiscrimination provisions in chapter 24,
article 10. Loss of any required permit or license will result in revocation of the short
term rental registration in accordance with subsection J of this section.
2. Compliance with all applicable laws and regulations is the sole responsibility of the
owner and city approval of an application for short term rental registration in no way
waives or transfers to the city such responsibility. In addition, the owner is solely
responsible for verifying the use of a property as a short term rental is compatible
with insurance and mortgage contracts, home owners’ association covenants, rental
agreements and any other contracts which govern the use of the property.
G. Administration. The director will collect all registration fees and will issue registrations
and renewals thereof in the name of the city to all persons qualified under the provisions
of this article and has the power to:
1. Make rules. The director will promulgate and enforce all reasonable rules and
regulations necessary to the operation and enforcement of this article. All rules are
subject to city commission review and modification.
2. Adopt forms. The director will adopt all forms and prescribe the information to be
given therein.
3. Obtain approvals. The director will submit all applications to interested city officials
for their approval as to compliance by the applicant with all city regulations which
they have the duty of enforcing.
4. Investigate. The director will investigate and determine the eligibility of any
applicant for a short term rental registration as prescribed herein.
5. Examine records. The director may examine the books and records of any applicant
when reasonably necessary to the administration and enforcement of this article.
6. Give notice. The director shall notify any applicant of the acceptance or rejection of
the application and will, upon the director’s refusal of any registration, at the
applicant's request, state in writing the reasons therefor and deliver them to the
applicant.
7. Record keeping. The director will maintain at all times a record of registered short
term rentals, including the full name of each registrant, the address at which such
short term rental is operated, the date of issuance, the fee paid therefor, the telephone
and address of the applicant, and the time such registration will continue in force.
2992
EXHIBIT A
Page 9
H. Registration. The following requirements apply to all short term rentals unless otherwise
noted.
1. General. It is unlawful for any person to operate within the city a short term rental
without having first registered the short term rental with the Department of
Community Development. A separate registration shall be required for each short
term rental.
2. Application; submittal materials. The applicant must complete and submit an
application for a short term rental registration to the Department of Community
Development using a form provided by the city. The form will include an
acknowledgement and agreement the short term rental meets and will continue to
meet the definition of short term rental classification (Type-1, Type-2, or Type-3)
during the registration term. Before the application will be accepted by the director,
the applicant must provide:
a. The name, telephone number, address, and email address of all property owners
and of the responsible person, if different. If the property owner is a business, the
name(s) and contact information of all business owners must be provided.
b. The Montana Department of Revenue tax registration number for the short term
rental.
c. A sketch plan with a description of the short term rental, including street address,
number of bedrooms, and number of off-street parking spaces available for
guests’ use.
d. Certification the short term rental meets and will continue to meet the definition
of short term rental classification (Type-1, Type-2, or Type-3) during the
registration term.
e. For Type-2 and Type-3 short term rentals, certification the applicant has read and
understood the standards in subsection I of this section and the property applied
for meets the standards.
f. For Type-2 short term rentals in residential zoning districts, certification that
residents adjacent to the proposed short term rental have been provided written
notice in accordance with subsection 6 of this section.
g. The registration fee and fire inspection fee.
3. Safety inspections.
a. Initial inspection. Prior to issuance of a short term rental registration, an
inspection by the city fire department must be completed and signed off by a city
fire inspector, or by an NFPA-certified fire inspector using an inspection form
approved by the city fire marshal. A fire inspection checklist form will be
2993
EXHIBIT A
Page 10
provided to the applicant with the application materials. If a short term rental
registration lapses for any period of time, upon reapplication for registration an
inspection must be completed and signed off as described in this subsection
before the short term rental registration will issue.
b. Re-inspection. If re-inspection or multiple visits by a fire inspector are required
before the inspection form may be signed, additional inspection fees will apply.
c. Subsequent inspections; self-certification. The city fire marshal may require a
repeat inspection on a periodic basis, and at any time upon complaint or evidence
of non-compliance. Applications for annual renewal of registration will include a
self-certification by the applicant that they continue to comply with the fire
inspection checklist. By applying for renewal of registration, the applicant will
acknowledge and agree that the city may randomly select a certain percentage, not
to exceed 10%, of the renewal applications for a full inspection as described in
subsection (a). If selected, the registration renewal will be conditioned on
completion of the fire inspection and payment of the fire inspection fee. The
owner of a short term rental selected for a full inspection will be allowed to
continue to operate the short term rental pending completion of the inspection,
provided all other renewal requirements have been met.
4. Safety hazards. The short term rental owner acknowledges that the city, or any
authorized representative thereof, have the right to suspend operation of any short
term rental when the city determines the rental is causing or contributing to an
imminent public health or safety hazard.
5. Fees. Short term rental registration and inspection fees shall be established by
resolution of the city commission.
6. Additional notice requirements for registrations and registration renewals of
Type-2 short term rentals in residential zoning districts. The applicant for a
Type-2 short term rental registration in a residential zoning district included in Table
38.08.020 must give notice on a form provided by the city to each residence adjacent,
including those residences adjacent across a public right-of-way and properties
connected to the applicant’s property by property corners. The notice must include a
description of the proposed use and the name, address, telephone number and email
address (if any) of the responsible person.
7. Issuance of registration. Once the applicant submits the completed application
form, all required submittal materials, and registration and inspection fees, the
director will review the application form and submittal materials and determine
whether the short term rental meets all city requirements for registration. The city
will issue the short term rental registration when:
2994
EXHIBIT A
Page 11
a. The director determines the short term rental meets all city requirements for
registration; and
b. The applicant has provided either a signed pre-operational inspection report from
the health department indicating the short term rental may operate as a public
accommodation or a valid and current public accommodation license issued by the
state of Montana department of health and human services pursuant to Title 50,
Chapter 51, MCA.
8. Listing of registration. The short term rental registration form will require the
applicant to agree to inclusion in an online listing of short term rentals registered with
the city, to include the registrant’s name, address and contact information.
9. Display of short term rental registration number. The owner must include the
short term rental registration number in all listings of the short term rental on any
hosting platform and print advertising.
10. Change in ownership. A short term rental registration does not run with the land,
and a change in ownership of the short term rental terminates the registration. The
new owner wishing to continue operation of the property as a short term rental must
apply for registration following the process described in this section.
11. Expiration. Registrations issued pursuant to this article are valid for one year from
the month in which such registration is issued and will expire automatically unless
renewed in accordance with this section.
12. Renewal. The registrant may apply to renew the registration annually using a form
provided by the city. It is the registrant’s responsibility to renew the registration on
time even if a courtesy reminder is not received by the registrant.
I. Short term rental standards. The following requirements apply only to Type-2 and Type-
3 short term rentals unless otherwise noted.
1. Short term rental agreement; written rules for guests. The short term rental
owner must enter into a written rental agreement with the guest for each stay in the
short term rental.
a. The guest must be provided with a written list of rules applicable to the short term
rental with the rental agreement, and the rental agreement must include a written
acknowledgement by the renters of their agreement to comply with such rules.
b. The list of rules must include those rules required by this article to be included.
c. The list of rules must be prominently displayed within the short term rental.
2995
EXHIBIT A
Page 12
2. Responsible person. The applicant must designate a person responsible for
addressing all maintenance, nuisance, and safety concerns related to a short term
rental. The responsible person must be available to take and respond to reports of
concerns and complaints 24 hours per day, 7 days per week during the registration
term. The name and contact information for the responsible person must be included
in the list of rules.
3. Maximum occupancy for Type-2 and Type-3 short term rentals. The maximum
occupancy of a Type-2 or Type-3 short term rental is two persons per bedroom plus
two additional persons, except that this number may be reduced by the city based on
available parking spaces. The maximum occupancy will be noted on the short term
rental registration and must be included in the list of short term rental rules.
4. Maximum number of bedrooms that may be rented in a Type-1 short term
rental; maximum occupancy. The owner of a Type-1 short term rental may rent or
offer for rent up to two bedrooms in the dwelling, except that in a two-bedroom
dwelling, only one bedroom may be rented or offered for rent. No other area of the
dwelling may be rented or offered for rent. The maximum occupancy of a Type-1
short term rental is two persons per bedroom.
5. Trash removal. The responsible person must ensure proper disposal of solid waste
pursuant to local and state rules, regulations and laws. The schedule for trash and
recycling collection and instructions for proper disposal must be included within the
short term rental rules.
6. Signage. Exterior signs identifying the unit as a short term rental are prohibited on
short term rentals. During a rental period, there must be a sign posted inside the front
door of the short term rental showing the locations of all fire extinguishers in the unit,
the gas shut-off valve, and fire exits.
7. Noise and nuisance
a. The owner of the short term rental must ensure that use of the short term rental by
guests is in compliance with the noise provisions of chapter 16, article 6 and all
nuisance provisions of the Bozeman Municipal Code.
b. A prohibition against making loud noise in such a manner as to disturb the quiet,
comfort or repose of a reasonable person of normal sensitivity must be included in
the short term rental rules.
c. All outdoor activities producing noise discernible from a neighboring property
shall cease by 10:00 p.m. This requirement must be included in the short term
rental rules.
2996
EXHIBIT A
Page 13
J. Violations; enforcement.
1. Registration suspension or revocation. The director may suspend or revoke a short
term rental registration when the registrant commits one or more of the following acts
or omissions:
a. Failure to comply with any provision of this article;
b. Operating or allowing the operation of the short term rental in such a manner as to
create a public nuisance, cause a breach of the peace, constitute a danger to the
public health, safety, welfare or morals, or interfere with the rights of abutting
property owners;
c. Cancellation of the health department’s public accommodation license, tax
authority registration, or any other required permit; or
d. The securing of the registration by fraud or misrepresentation, to specifically
include false or incorrect information on the registration application.
2. Procedure. Should the director decide to suspend or revoke a registration, the
registrant will be given notice and an opportunity to respond following the procedures
in this subsection, except that should the director determine the short term rental or its
operation present a safety hazard or require immediate remedy, the director may order
operation of the short term rental to cease immediately.
a. The registrant will be notified in writing by the director at least seven days prior
to the action contemplated and the reasons therefore.
b. Upon receipt of the notice, the registrant may request a meeting with the director.
Such request must be in writing and must be received by the director within seven
days of the registrant’s receipt of the notice. Failure on the part of the registrant
to request in writing a meeting and within the specified time period shall be a
waiver of the registrant’s right to a meeting.
c. If a meeting is requested by the registrant, the director will set a time, date and
place and will so notify the registrant, in writing.
d. When a meeting is conducted, the city will present the evidence supporting the
contemplated action. The director may request evidence be presented by other
parties. The registrant may present evidence. The director will take all evidence
admitted under advisement and once a decision has been made the director will
notify the registrant of the findings and decision in writing.
3. Appeal. Any person aggrieved by a decision of the director will have the right to appeal
to the city commission by following the procedures in 38.35.030.
2997
EXHIBIT A
Page 14
4. Unpaid fee constitutes debt. The amount of any unpaid fee, the payment of which is
required hereunder, constitutes a debt due the city.
5. Violation constitutes a misdemeanor. In addition to suspension or revocation under
subsection A of this section, a knowing violation of this article constitutes a misdemeanor
punishable as described in 38.34.160.
Section 7
Grace period for registration of short term rentals authorized by this Ordinance.
A short term rental as defined in this Ordinance operating as of the effective date of this
Ordinance and authorized as a principal use by this Ordinance must submit a complete
application and appropriate fees within 60 days after the effective date, or prior to expiration of a
current business license for the short term rental, whichever occurs last. After the grace period
described in this section 7, operation of a short term rental after failure to submit a complete
application and applicable fees within such time period is a misdemeanor punishable as
described in 38.34.160 and may result in an enforcement action for non-compliance with the
requirements of this Ordinance. Applicants who submit a complete application and applicable
fees within the grace period described in this section 7 may operate pending completion of the
fire inspection required in 38.22.250.G.4 by submitting a signed self-certification on a form
provided by the city that the short term rental meets applicable safety requirements.
Proof of operation. Proof of operation prior to the effective date may be shown by one or more
of the following:
i. Valid conditional use permit (CUP); or
ii. Current business license; or
iii. Current bed tax registration with the Montana Department of Revenue and proof
of payment of bed taxes; or
iv. Current public accommodations license with the Montana Department of Health
and Human Services; or
v. Such other evidence as may be acceptable to the City Attorney.
Section 8
2998
EXHIBIT A
Page 15
“Grandfathering” grace period for registration as a legal nonconforming use.
Certain short term rentals (formerly “extended stay lodgings”) in residential zoning
districts which were authorized as a conditional or principal use in Chapter 38, BMC will no
longer be authorized as of the effective date of this Ordinance. Short term rentals which were in
operation prior to the effective date but are not an authorized use after the effective date may be
allowed to continue operating under the following conditions:
a. Proof of operation. Proof of operation prior to the effective date may be shown by
one or more of the following:
i. Valid conditional use permit (CUP); or
ii. Current business license; or
iii. Current bed tax registration with the Montana Department of Revenue and
proof of payment of bed taxes; or
iv. Current public accommodations license with the Montana Department of
Health and Human Services; or
v. Such other evidence as may be acceptable to the City Attorney.
b. Short term rentals in R-1, R-S, R-2 and NEHMU operating under a valid CUP must
submit a complete application for STR registration and applicable fees within 60 days
after the effective date, or prior to the expiration of a current business license for the
short term rental, whichever occurs last.
c. Type-2 and Type-3 short term rentals in R-1, R-S, R-2 and NEHMU operating
without a valid CUP must submit a complete application for STR registration and an
application for a CUP and applicable fees within 60 days after the effective date. The
CUP application will be reviewed pursuant to 38.19.110, BMC, except that the
review authority will be the Director of Community Development.
d. Type-3 short term rentals in R-3, R-4, R-5, and R-O must submit a complete
application for registration and applicable fees within 60 days after the effective date,
or prior to the expiration of a current business license for the short term rental,
whichever occurs last.
Applicants who submit a complete application for registration and, if necessary, a CUP
application with all applicable fees within the grace period described in this section 8 may
operate pending completion of the fire inspection required in 38.22.250.G.4 by submitting a
2999
EXHIBIT A
Page 16
signed self-certification on a form provided by the city that the short term rental meets applicable
safety requirements.
After grace period described in this section 8, operating a short term rental not authorized
by this Ordinance without submitting a complete application for registration, and a CUP
application if necessary, and all applicable fees is a misdemeanor punishable as described in
38.34.160 and may result in an enforcement action for non-compliance with the requirements of
this Ordinance.
Section 9
Reporting.
By July 31, 2019 the City Manager must report to the City Commission on the efficacy of
the regulations adopted pursuant to this Ordinance.
Section 10
Repealer.
All provisions of the ordinances of the City of Bozeman in conflict with the provisions of
this ordinance are, and the same are hereby, repealed and all other provisions of the ordinances
of the City of Bozeman not in conflict with the provisions of this ordinance shall remain in full
force and effect.
Section 11
Savings Provision.
This ordinance does not affect the rights and duties that matured, penalties that were
incurred or proceedings that were begun before the effective date of this ordinance. All other
provisions of the Bozeman Municipal Code not amended by this ordinance shall remain in full
force and effect.
3000
EXHIBIT A
Page 17
Section 12
Severability.
That should any sentence, paragraph, subdivision, clause, phrase or section of this
ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect
the validity of this ordinance as a whole, or any part or provision thereof, other than the part so
decided to be invalid, illegal or unconstitutional, and shall not affect the validity of the Bozeman
Municipal Code as a whole.
Section 13
Codification.
This ordinance shall be codified as indicated in Sections 2-6.
Section 14
Effective Date.
This ordinance shall be in full force and effect thirty (30) days after final adoption.
PROVISIONALLY ADOPTED by the City Commission of the City of Bozeman,
Montana, on first reading at a regular session held on the _____ day of ________________, 2017.
____________________________________
CARSON TAYLOR
Mayor
ATTEST:
____________________________________
ROBIN CROUGH City Clerk
3001
EXHIBIT A
Page 18
FINALLY PASSED, ADOPTED AND APPROVED by the City Commission of the
City of Bozeman, Montana on second reading at a regular session thereof held on the ___ of
____________________, 2017. The effective date of this ordinance is __________ __, 2017.
_________________________________
CARSON TAYLOR Mayor
ATTEST:
_______________________________ ROBIN CROUGH City Clerk
APPROVED AS TO FORM:
_________________________________ GREG SULLIVAN City Attorney
3002
Page 1 of 21
17185, Staff Report for the Short Term Rental Municipal Code Text
Amendment
Public Hearing Dates: Zoning Commission, May 16, 2017
City Commission, May 22, 2017
Project Description: Amend the Bozeman Municipal Code to address short term rentals.
The amendment will create and repeal definitions, establish where short term rentals
are allowed, establish what standards apply to short term rentals, and the review
process for approval of short term rentals. A requirement for a business license will
be removed. Three different types of short term rentals will be authorized. In general,
a short term rental is a vacation home; dwelling as defined in 38.42.940; accessory
dwelling unit; or room within a vacation home or dwelling, rented by or on behalf of
the owner to the general public for compensation for periods of less than 28
consecutive days.
Project Location: These amendments apply to all residentially zoned property designated
as RS, Residential Suburban District; R-1, Residential Single-Household Low
Density District; R-2, Residential Two-Household Medium Density District; R-3,
Residential Medium Density District; R-4 Residential High Density District; R-5,
Residential Mixed-Use High Density District; R-O, Residential-Office District;
RMH, Residential Manufactured Home Community District; REMU, Residential
Emphasis Mixed-use District; and NEHMU Northeast Historic Mixed-Use District.
The amendments also apply to non-residential districts BP, Business Park; B-2
Community Business District; B-2M, Community Business District – Mixed; B-3,
Central Business District; and UMU, Urban Mixed Use District.
Recommendation: Approval
Zoning Commission Recommended Motion: Having reviewed and considered the
proposed ordinance, public comment, and all the information presented, I hereby
adopt the findings presented in the staff report for application 17185 and move to
recommend adoption of Ordinance 1974.
Commission Recommended Motion: Having reviewed and considered the proposed
ordinance, public comment, recommendation from the Zoning Commission, and all
the information presented, I hereby adopt the findings presented in the staff report
for application 17185 and move to provisionally adopt Ordinance 1974.
Report Date: May 17, 2017
Staff Contacts: Chris Saunders and Chuck Winn
Agenda Item Type: Action - Legislative
3003
17185, Staff Report for the Short Term Rental Municipal Code Text Amendment Page 2 of
21
TABLE OF CONTENTS
EXECUTIVE SUMMARY ...................................................................................................... 2
Unresolved Issues ............................................................................................................... 2
Project Summary ................................................................................................................. 3
Zoning Commission ............................................................................................................ 3
City Commission Alternatives ............................................................................................ 4
SECTION 1 - MAP SERIES .................................................................................................... 5
SECTION 2 - RECOMMENDATION AND FUTURE ACTIONS ........................................ 8
SECTION 3 - STAFF ANALYSIS AND FINDINGS ............................................................. 8
Section 76-2-304, MCA (Zoning) Criteria ......................................................................... 9
PROTEST NOTICE FOR ZONING AMENDMENTS ......................................................... 18
APPENDIX A - PROJECT BACKGROUND ....................................................................... 18
APPENDIX B - NOTICING AND PUBLIC COMMENT .................................................... 18
APPENDIX C - APPLICANT INFORMATION AND REVIEWING STAFF .................... 20
FISCAL EFFECTS ................................................................................................................. 21
ATTACHMENTS ................................................................................................................... 21
EXECUTIVE SUMMARY
Unresolved Issues
1) The Commission must ultimately determine what set of standards best address the variety
of issues affecting short term rentals.
2) Some homes have reduced parking required because a deviation or a PUD relaxation was
previously approved to have less parking than the norm. When calculating required
parking for STR should the minimum standards as generally applicable today or the
approved amount of parking for the existing residential use be applied?
3) The limitation on what type of STR is allowed in the R-2 zone will be reflected in the
Northeast Historic Mixed Use District (NEHMU) which is a blend of uses from R-2 and
M-1. M-1 does not allow STR. Which does the Commission wish to apply to STR in
NEHMU?
3004
17185, Staff Report for the Short Term Rental Municipal Code Text Amendment Page 3 of
21
Project Summary
For several years, the City Commission has been considering issues related to the increase in
the number of short term rentals (STRs) throughout the City and in particular Bozeman’s lower
density residential zoning districts. During the past 9-10 months City staff has, at the
Commission’s direction, been studying possible regulation of STRs. The Commission
discussed this issue at its regular meeting on July 11, 2016 and a continuation of that discussion
occurred on July 18, 2016. The staff memorandum from those policy discussions is available
in the City’s online archive of Commission materials.
On July 18, 2016 the Commission requested that staff draft an interim zoning ordinance that
would prohibit extended stay lodging uses in specific zoning districts until such time as the
City was able to study the effects of the increasing number of STRs on existing residential
neighborhoods. “Extended stay lodging” was a conditional use in R-1, R-2, R-S and
NEHMU, subject to approval of a conditional use permit (CUP) pursuant to 38.19.110,
Bozeman Municipal Code (BMC). Interim Zoning Ordinance 1958 repealing and
suspending “extended stay lodging” as a conditional use in these zones was adopted on
August 8, 2016 and was to expire on February 8, 2017. It was extended by Ordinance 1970
on February 6, 2017 for an additional six months and will now expire on August 8, 2017.
Substantial outreach to the community has resulted in participation from hundreds of persons
through surveys, attendance at meetings, and written comments. The comments have been
wide ranging in the topics and diverse in preferences. The comments are almost evenly
divided whether to approve or disapprove STRs.
Ordinance 1974 amends several portions of the municipal code. This report is specific to
those sections of the ordinance which revise Chapter 38 of the municipal code.
Zoning Commission
At their public hearing on May 16, 2017, the Zoning Commission did not recommend
approval of the ordinance. The recommended motion was made and failed to pass 0-4. The
Zoning Commission did not find that there was adequate justification for regulating short
term rentals to the degree proposed in the draft ordinance. They found that short term rentals
were not an intrusion in residential areas. The video record of the meeting can be seen at
http://www.bozeman.net/Video.
The Zoning commission discussion included a variety of reasons why they did not support
the ordinance including that they considered the ordinance overreached, why STR were
beneficial, how Type 3 STR could be segregated, concern on Criterion J and negative effect
of the ordinance, cost of administration, STR ability to support income to owners to enable
them to afford to live in Bozeman.
3005
17185, Staff Report for the Short Term Rental Municipal Code Text Amendment Page 4 of
21
Thirteen members of the public spoke at the public hearing. Two written comments were
received in advance of the meeting and after the distribution of the packet. See Appendix B
of this report for a description of the public comments.
City Commission Alternatives
1) Adopt the ordinance as presented;
2) Direct revisions to the ordinance prior to adoption;
3) Do not adopt the ordinance; or
4) Request additional information and continue discussion on the ordinance.
3006
17185, Staff Report for the Short Term Rental Municipal Code Text Amendment Page 5 of
21
SECTION 1 - MAP SERIES
3007
17185, Staff Report for the Short Term Rental Municipal Code Text Amendment Page 6 of
21
3008
17185, Staff Report for the Short Term Rental Municipal Code Text Amendment Page 7 of
21
3009
17185, Staff Report for the Short Term Rental Municipal Code Text Amendment Page 8 of
21
SECTION 2 - RECOMMENDATION AND FUTURE ACTIONS
Having considered the criteria established for a municipal code text amendment, Staff
recommended approval as submitted.
The Zoning Commission held a public hearing on this text amendment on May 16, 2017, at 6
pm at 121 N. Rouse Avenue, Bozeman.
The City Commission will hold a public hearing on the amendment on May 22, 2017, at 121
N. Rouse Avenue, Bozeman. The meeting will begin at 6 p.m. If the Commission
provisionally adopts the ordinance, a final adoption action will be scheduled.
SECTION 3 - STAFF ANALYSIS AND FINDINGS
In considering applications under this title, the advisory boards and City Commission shall
consider the following criteria. As an amendment is a legislative action, the Commission has
broad latitude to determine a policy direction.
3010
17185, Staff Report for the Short Term Rental Municipal Code Text Amendment Page 9 of
21
In considering the following criteria the analysis must show that the amendment
accomplishes zoning criteria A-D or is neutral. Criteria E-K must be considered and may be
found to be affirmative, neutral, or negative. A favorable decision on the proposed
application must find that the application meets all of criteria A-D and that the positive
outcomes of the amendment outweigh negative outcomes for criteria E-K.
Section 76-2-304, MCA (Zoning) Criteria
A. Be in accordance with a growth policy.
Yes. The growth policy does not dictate uses or specific standards to the level of detail
contained in the ordinance. It does identify issues and priorities for consideration and does
contain goals and objectives that are desirable outcomes. There is no prioritization of one
goal or objective over another. In determining appropriateness of a particular zoning
ordinance, the Commission needs to find a balance that best advances the interests of the
community. The City adopted the current edition of the growth policy, the Bozeman
Community Plan, in 2009. The growth policy has 285 pages of data, goals, and description,
most of which is not applicable to the discrete issue of short term rentals.
A review of the document found goals and objectives applicable to this application. Each is
identified and addressed in turn.
“Objective G-2.1: Ensure that development requirements and standards are efficiently
implemented, fairly and consistently applied, effective, and proportionate to the concerns
being addressed.”
Response: The public comment on STRs has been extensive. See Appendix B for a summary.
A theme in the comments has been to ensure that any regulations are reasonable. This is
consistent with the objective. The draft ordinance meets the objective. The regulations match
specific concerns with specific standards. For example, a safety inspection is required to
ensure that guests have adequate exiting options from sleeping areas in case of fire. The
exiting standard will be the same as for other residential properties. This standard has been
evaluated by fire and building organizations nationwide and found to be adequate. All STRs
who do not meet this standard will have the opportunity to make a correction before
beginning operation. If they cannot meet the standard they will not be approved.
Implementation of the exiting standard will use existing programs and personnel which is
more efficient than creating new standards or programs to address the need.
Chapter 3 identifies seven land use principles which are the basis for the chapter. An
applicable principle which has also appears in many of the public comments is
neighborhoods.
“ Neighborhoods. There is strong public support for the preservation of existing
neighborhoods and new development being part of a larger whole, rather than just
anonymous subdivisions. This idea includes the strengthening and support of existing
3011
17185, Staff Report for the Short Term Rental Municipal Code Text Amendment Page 10
of 21
neighborhoods through adequate infrastructure maintenance and other actions. As the
population of Bozeman grows, it is harder to keep the same “small town” feel because
residents cannot be on familiar terms with everyone. The neighborhood unit helps
provide the sense of familiarity and intimacy which can be lacking in larger communities.
The neighborhood commercial/activity center and local parks provide opportunities to
casually interact with other nearby residents. Not all neighborhoods are of equal size or
character.”
Response: This excerpt from the plan notes that neighborhoods are both important and vary
in character and size. People often make reference to their neighborhood in describing where
they live. The personal mental map of what defines the neighborhood are influenced by
familiarity, availability of notable features, social connections, and travel patterns.
Neighborhoods are often difficult to define objectively as a specific geographic area and may
not have strongly marked natural edges as perceived identity may changes with proximity to
a characteristic feature. A neighborhood is defined in the glossary to the growth policy as:
“Neighborhood. An area of Bozeman with characteristics that distinguish it from other areas
and that may include distinct economic characteristics, housing types, schools, or boundaries
defined by physical barriers, such as major highways and railroads or natural features, such
as watercourses or ridges. A neighborhood is often characterized by residents sharing a
common identity focused around a school, park, business center, or other feature. As a
distinct and identifiable area, often with its own name, neighborhoods are recognized as
fostering community spirit and a sense of place, factors recognized as important in
community planning.”
The definition nor the reality of neighborhoods rely on zoning district boundaries as
distinguishing features. The City’s Neighborhoods program does defined specific geographic
areas as individual neighborhood areas in association with the owners and residents of the
proposed neighborhood. The map of organized neighborhoods shows that 12 of 14 recognized
neighborhoods span zoning district boundaries.
As discussed in Appendix B, the City conducted substantial outreach to the public regarding
STRs. The majority of comments supported allowing STRs in all zoning districts. Some
comments suggested STRs with a less intensive use level would be a better fit for zoning districts
with more restrictive and less intensive other uses.
Chapter 3 contains multiple goals and objectives. Two goals are specifically applicable to short
term rentals.
“Goal LU-1: Create a sense of place that varies throughout the City, efficiently provides
public and private basic services and facilities in close proximity to where people live and
work, and minimizes sprawl.
Rationale: A sense of community is strengthened by distinctive areas which facilitate
neighborhood identity. This is strengthened when essential services are available and
3012
17185, Staff Report for the Short Term Rental Municipal Code Text Amendment Page 11
of 21
encourage informal interactions. Full featured neighborhoods allow extensive interaction
and build identity with a specific part of the community. A sense of place does not
prohibit change or continued evolution of the community.”
Response: The draft ordinance respects the existing zoning district structure which contributes to
the development of a varied sense of place within the City.
Objective LU-1.3: Encourage positive citizen involvement in their neighborhood and
community.
Response: The City’s outreach efforts for STRs has fulfilled this objective for this text
amendment. See Appendix B. Further, the draft ordinance requires those seeking approval for a
Type 2 or Type 3 STR to provide notification to nearby residents and to provide contact
information. This is a higher level of notice than would be required otherwise. Use of an existing
residence as an STR falls within the scope of a sketch plan review for zoning compliance as
described in Section 38.19.070 of the municipal code. Section 38.40.030 of the municipal code
describes the level of notice required for all applications. Sketch plans do not require
independent notice. Working directly with local residents and owners strengthens understanding
of respective concerns of STR owners and adjacent residents who may be affected by the STR.
“Objective LU-1.4: Provide for and support infill development and redevelopment which
provides additional density of use while respecting the context of the existing
development which surrounds it. Respect for context does not automatically prohibit
difference in scale or design.”
Response: The online listings for STRs show them distributed throughout the community. Short
term rentals occur within previously approved residential buildings which reviewed for
compliance with all applicable zoning criteria. Therefore, the objective is met for the physical
characteristics of the site. The draft ordinance creates three categories of STRs because there is a
wide diversity of operations from incidental to a owner occupied residence to a full-time wholly
occupied building. Conversion from a full time residence to an STR is redevelopment within the
meaning of this objective. The procedures and standards of the draft ordinance require an STR to
operate in a manner that respects the existing context by limiting intensity of use, requiring
adequate parking, and ensuring that users are informed of noise restrictions.
“Goal LU-3: Strengthen the Historic Core of Bozeman to preserve the community
character, economic resource, and historical connection represented by this area.
Rationale: The Historic Core, as defined in the glossary, is one of Bozeman’s most
distinctive and valued features. Loss of or injury to this area would lessen the
community’s cultural, economic, and social assets and reduce the sense of place
Bozeman holds within the community, state, and nation.”
3013
17185, Staff Report for the Short Term Rental Municipal Code Text Amendment Page 12
of 21
“Objective LU-3.1: Ensure that development and redevelopment of this area, including
the adaptive reuse of historic buildings, is done in a manner which enhances, and is
compatible with, the current community fabric.”
Response: Public comment is mixed on this goal. Some asserts that STRs may be more carefully
maintained than longer term rentals in the same area. Some asserts that a vacant home is more or
less disruptive than one used as an STR.
In 2016, 5,200,000 million persons drove through Bozeman and of those 1,900,000 spent at least
one night in Bozeman. The downtown area is one of Bozeman’s most prominent physical and
social features. Proximity to downtown can be an asset to visitors. Well-established residential
areas with a wide mix of housing types surround downtown. The historic core encompasses
commercial, residential, institutional, and industrial uses. There are competing viewpoints of
what will best strengthen the historic core. Reinvestment in building maintenance will support
the preservation of the distinctive buildings and streetscapes. Reinvestment can be by a fulltime
resident owner or by a business operator of an STR. Public comment contains assertions that the
opportunity to meet visitors to STRs strengthens social bonds and assertions that short term
visitors do not contribute to the social structures that build the local community. Neither
assertion invalidates the other as both can be occurring at different levels of interaction.
Section 3.4 Land Use Category Descriptions.
“ Residential. This category designates places where the primary activity is urban density
dwellings. Other uses which complement residences are also acceptable such as parks,
low intensity home based occupations, fire stations, churches, and schools. High density
residential areas should be established in close proximity to commercial centers to
facilitate the provision of services and employment opportunities to persons without
requiring the use of an automobile. Implementation of this category by residential zoning
should provide for and coordinate intensive residential uses in proximity to commercial
centers. The residential designation indicates that it is expected that development will
occur within municipal boundaries, which may require annexation prior to development.
Community Core. The traditional core of Bozeman is the historic downtown. This area
has an extensive mutually supportive diversity of uses, a strong pedestrian and multi-
modal transportation network, and a rich architectural character. Essential government
services, places of public assembly, and open spaces provide the civic and social core of
town. Residential development on upper floors is well established. New residential uses
should be high density. The area along Main Street should be preserved as a place for
high pedestrian activity uses, with strong pedestrian connectivity to other uses on nearby
streets. Users are drawn from the entire planning area and beyond. The intensity of
development is high with a Floor Area Ratio well over 1. Future development should
continue to be intense while providing areas of transition to adjacent areas and preserving
the historic character of Main Street.
3014
17185, Staff Report for the Short Term Rental Municipal Code Text Amendment Page 13
of 21
Response: The residential designation underlays all residential zoning districts. The
description is broad and does not compel one or another district on a given location. The
focus is on housing use, not housing ownership. Rentals are equally acceptable as owned
dwellings in all areas with a residential designation.
Short term rentals are consistent with this designation as they occur within residential
structures and the use can begin and end without any change to the structure. Public comment
submitted from AirBNB (see Attachment 3, 2017 comments hyperlink) asserted that there
were 300 active hosts with 350 listings, average guest stay was 3.3 nights, and a typical
listing was for 49 nights per year, and 5 percent of listings were for more than 180 days per
year. Staff has no data to dispute these assertions. Assuming this data is representative of the
overall industry, 95% of STRs appear to classify as Type 1 or Type 2 which occur within the
owners principal residence and average 15 visits per year.
According to the US Census Bureau’s American Community Survey 2015, Bozeman had an
estimated 18,293 dwellings. If the number of Type 3 STRs were three times that indicated by
AirBNB’s comments then Type 3 STRs would comprise 0.29% of all the housing in
Bozeman. This appears to fit within the “Other uses which complement residences…”
element of the Residential land use category description.
The community core description supports inclusion of STRs through its call for diversity of
uses and its draw for users from within and without the planning area. The draft ordinance
includes STRs in most mixed use and commercial districts. The establishment of an STR
would first require approval for residential uses according to the standards of the district.
Chapter 4 opening statement. “Community Quality refers to those things that make
Bozeman a special, attractive and enjoyable place to live, work, and play. Community
Quality issues include the ways neighborhoods are designed, the way new development
looks, the way our streets feel including our urban forest, parkland, trails, commercial
districts, new and old residential neighborhoods, open spaces, views to the mountains that
surround the City, the historic and new architectural styles, and the core of Downtown
Bozeman. An important component of Bozeman’s uniqueness and livability is the quality
of the people who live and work here. Community quality, regardless of design, is
ultimately meaningless without citizens that respect each other and treat one another and
the City landscape with decency.”
Response: The draft ordinance requires notification, registration, and option for revocation of
registration for those who do not operate an STR in accordance with established standards.
Public comment included assertions that part of what makes Bozeman desirable is its welcoming
character to visitors and new residents. It also included assertions that visitors to STRs can be
disruptive and disrespectful. Both can be factual. Police and fire response data do not show a
disproportionate impact from STRs. This could be a deficiency in reported issues. A majority of
3015
17185, Staff Report for the Short Term Rental Municipal Code Text Amendment Page 14
of 21
public comment respondents found that owner present short terms rentals were the most
acceptable. This is the Type 1 option.
Goal H-1: Promote an adequate supply of safe, quality housing that is diverse in type,
density, cost, and location with an emphasis on maintaining neighborhood character and
stability.
Rationale: A community needs a variety of housing stock to accommodate the diversity
in personal circumstances and preferences of its population. The type of housing required
may be different throughout a person’s life. A healthy community has a wide range of
citizens with differing age, education, economic condition, and other factors. Stable
neighborhoods encourage reinvestment, both financial and emotional that strengthens and
builds the community.
Objective 1.1 - Encourage and support the creation of a broad range of housing types in
proximity to services and transportation options.
Objective 1.2 – Encourage the preservation and rehabilitation of the existing housing
stock to protect the health, safety, and welfare of Bozeman residents.
Objective 1.3 - Promote the provision of a wide variety of housing types in a range of
costs to meet the diverse residential needs of Bozeman residents.
Goal H-3– Encourage an adequate supply of affordable housing and land for affordable
housing.
Rationale: There will always be a portion of the population which earns less than the
median income. This may be for many reasons. This affects the ability to find market rate
housing which is adequate for basic housing needs. Lack of adequate housing effects
health, social stability, and many other issues which can have severe negative and inter-
generation effects.
Objective 3.1 – Encourage the provision of affordable housing.
Objective 3.3 – Promote the development of a wide variety of housing types, designs, and
costs to meet the wide range of residential needs of Bozeman residents.
Response: Some comments on the issue of affordable housing asserted that use of homes for
STRs can remove dwellings from the stock of homes for long term use and therefore increase
pricing. Other comments asserted that the ability to obtain additional income from rentals
was helpful in being able to meet housing costs.
Type 1 or Type 2 STRs occur within the principal residence of the owner or lessee.
Therefore, they do not remove dwellings from the housing stock.
According to the US Census Bureau’s American Community Survey 2015, Bozeman has an
estimated 18,293 dwellings. Public comment submitted from AirBNB asserted that there
3016
17185, Staff Report for the Short Term Rental Municipal Code Text Amendment Page 15
of 21
were 300 active hosts with 350 listings, average guest stay was 3.3 nights, and a typical
listing was for 49 nights per year, and 5 percent of listings was for more than 180 days per
year. Staff has no data to dispute these assertions. Assuming this is representative of the
overall industry then only 5% of the STRs would be Type 3, which are not the owner’s
principal residence. Type 3 STRs would remove a dwelling from the general housing stock
for at least a part of the year. If the number of Type 3 STRs were three times that indicated
by AirBNB’s comments (assuming additional units with different listing services) then Type
3 STRs would comprise 0.29% of all the housing in Bozeman. This is a very small
percentage and appears unlikely to have material impacts on housing prices.
The draft ordinance does include a restriction on the operation of STRs within dwellings
where financial affordable housing support was provided by the City. This restriction ends
when the City has recaptured the support. It is expected that this will prevent redirection into
a non-owner occupied condition.
Overall, after considering the public comment, text of the growth policy, and the draft
ordinance staff finds that the growth policy does not prohibit STRs in any area of the
community. Neither is there specific direction in the growth policy to compel unlimited
authorization for STRs throughout the community. The draft ordinance is responsive to
applicable goals and objectives of the growth policy. The City Commission in their final
action on the draft ordinance has authority to weigh the various considerations and determine
what ordinance ultimately best balances the interests of the community. This includes the
decision to not regulate.
B. Secure safety from fire and other dangers.
Yes. Required initial and periodic follow-up inspections will help ensure that locations are
safe. Designs which cannot demonstrate adequate exiting from sleeping areas, fire
suppression or access, or compliance with other adopted safety standards will not be
approved. Site with less owner supervision are subject to greater inspection and information
to guest requirements. See also criterion C.
C. Promote public health, public safety, and general welfare.
Yes. The essential standards for provision of public services such as water and sewer will
not be modified. The balance of proposed standards are expected prevent overcrowding or
other negative impacts. Examination of police and fire records do not show any unusual
demand for services from STRs. The Health Department’s implementation of state law
requires a public accommodation license for all STRs. This in turn requires safety inspections
performed by the Health Department and Fire Department to address sanitation, emergency
exiting, and other issues. Structures which do not pass these inspections will not be allowed
to be STRs. The City will coordinate its review process for STRs with the Health Department
to ensure that all required inspections have been passed prior to approval of use of an STR.
3017
17185, Staff Report for the Short Term Rental Municipal Code Text Amendment Page 16
of 21
D. Facilitate the provision of transportation, water, sewerage, schools, parks and other
public requirements.
Neutral. Short term rentals are the use of an existing residence within a residential or non-
residential zoning district. The determination of whether a residence is appropriate in that
location is previously determined by application of a zoning district through a zone map
amendment and by review of a site specific development. Use as an STR does not materially
change the essential use of the property or the physical characteristics of the residential use
as it applies to this criterion. Demand for services from STRs is expected to be similar to
other residential uses. Mitigation for residential impacts will be addressed either during
subdivision or site development review of the property. Billing for sewer or water
consumption will follow standard practice and offset public expenses.
E. Reasonable provision of adequate light and air.
Neutral. The basic standards for setbacks, dedication of parks, etc. that affect this criterion
are not altered with the proposed ordinance. Minimum standards for windows and air
circulation/venting remain in the building codes. There is a maximum occupancy standard
keyed to the number of bedrooms in each STR to limit excessive occupancy. Maximum
occupancy is most restrictive in Type 1 STRs where the owner must be present during the
time of use.
F. Effect on motorized and non-motorized transportation systems.
Neutral. The current allowances and requirements for parking apply based on the number of
bedrooms in the structure. Presently, any residential development may count a certain
number of on-street parking spaces and provide for parking on-site as well. The draft does
not require enclosed parking of any sort. Enclosed parking is allowed if the owner chooses to
provide it. This is the same standard that applies to other residential development. STRs must
provide the same perimeter sidewalks as all other development. Short term rentals occur
within residential or mixed use structures. Evaluation of overall traffic effects will occur
during subdivision or site development review. This standard is no different from other
residential development.
G. Promotion of compatible urban growth.
No. The ordinance does not change any development standard that would enhance the ability
to expand the City. The ordinance does not impede the expansion of the City. Therefore, the
ordinance is neutral rather than a promotion of urban growth.
H. Character of the district.
Yes. Residences are an allowed use in all R and most B zoning districts. There are options
for administrative approval in all districts where residences are allowed. Short Term Rentals
are a form of residential use therefore, they are consistent with the character of each district.
They may only occur within structures which comply with development standards applicable
3018
17185, Staff Report for the Short Term Rental Municipal Code Text Amendment Page 17
of 21
to that district. The proposed ordinance places more intensive uses into districts which allow
more intensive uses. Registration will enable the City to track use and follow up if there are
problems with a particular location. Some public comment asserts that STRs are not
residential uses and should not be allowed in some zoning districts. The majority of public
comments asserts that STRs should be allowed in all zoning districts.
All zoning districts provide for a variety of principal and conditional uses. Those uses vary
by district. The uses range in intensity and likely size. No single use defines the entirety of
any zoning district. The draft ordinance identifies STRs as principal uses. This shows a
determination that the use is consistent with the overall character of the district represented
by the total of all uses and development standards applicable to each district. Short term
rentals must abide by the same physical standards for setbacks, building heights, lot coverage
and others which apply in each district. The draft ordinance finds that STRs are a residential
use of property. The classification of three types of STRs enables the intensity of respective
use to be fitted to individual districts. Therefore, this criteria is met.
I. Peculiar suitability for particular uses.
Neutral. Short term rentals are the use of an existing residence within a residential or non-
residential zoning district. The determination of whether a residence is appropriate in that
location is previously determined by application of a zoning district through a zone map
amendment and by review of a site specific development. Use as an STR does not materially
change the essential use of the property or the physical characteristics of the residential use.
Conversion from an STR to a permanent residence requires no zoning review or alteration to
the property.
J. Conserving the value of buildings.
Yes. The standards and procedures for STRs do not alter the standards for building location,
size, or other physical development standards. No structure will be non-conforming due to
the proposed ordinance. The proposed standards for STRs offset or prevent the physical
effects of their use. Adequate parking must be provided prior to approval of a registration.
Utilities will have the same connections as other dwellings.
K. Encourage the most appropriate use of land throughout the jurisdictional area.
Neutral. Short term rentals are similar in impact to many other uses allowed in zoning
districts. Type 1 and Type 2 STRs are operated intermittently within an existing residence
and are not expected to have a material impact on the overall use of land. Type 3 occupy an
entire home but have the same lot area, parking, and other development requirements as a
dwelling. If a dwelling has not already been approved and deemed appropriate for an area an
STR will not be allowed.
3019
17185, Staff Report for the Short Term Rental Municipal Code Text Amendment Page 18
of 21
PROTEST NOTICE FOR ZONING AMENDMENTS
IN THE CASE OF WRITTEN PROTEST AGAINST SUCH CHANGES SIGNED BY THE OWNERS OF 25% OR MORE OF THE AREA OF THE LOTS WITHIN THE AMENDMENT AREA OR THOSE LOTS OR UNITS WITHIN 150 FEET FROM A LOT INCLUDED IN A
PROPOSED CHANGE, THE AMENDMENT SHALL NOT BECOME EFFECTIVE EXCEPT BY THE FAVORABLE VOTE OF TWO-THIRDS OF THE PRESENT AND VOTING MEMBERS OF THE CITY COMMISSION.
For this text amendment application the applicable calculation of protesting owners would
include the entire ownership of all affected residential districts.
APPENDIX A - PROJECT BACKGROUND
Project Background: The City Commission received a memo from the Assistant City
Manager prior to their policy discussion on April 24, 2017. That memo describes the history
of this issue and is included with this report to provide background for this text amendment.
APPENDIX B - NOTICING AND PUBLIC COMMENT
This application is for an amendment to the municipal code. Therefore, the required notice is
publication in the newspaper per Table 38.40.030, BMC. Notices were published on April 16,
23, and 30th, 2017 in the Bozeman Daily Chronicle. In addition to this notice, a notice of the
proposed amendment as well as the text of the amendment were posted on the City’s website.
Information was distributed through the InterNeighborhood Council and Neighborhood
Coordinator.
The City advertised a public workshop held on May 12, 2017 to explain the proposed ordinance.
Twenty persons attended.
The Zoning Commission held a public hearing on May 16, 2017. Thirteen persons spoke
regarding the ordinance. Primary issues were:
1) Character of zoning districts. Some spoke in favor of protecting the R-1 from STR and
others questioned the validity of treating R-1 so differently and that all residential
districts in Bozeman should be good quality places to live.
2) Several persons questioned whether there was a demonstrable problem requiring a
solution.
3) Several persons felt the proposed standards were excessive to address the issues
identified.
4) Several persons spoke regarding the registration process, possible costs, and discouraging
persons from complying.
3020
17185, Staff Report for the Short Term Rental Municipal Code Text Amendment Page 19
of 21
5) Several person spoke regarding the need to allow existing STR to continue forward and
to apply the proposed standards only to new STR.
6) Some persons challenged or supported the public survey data and other comments to date
as an adequate basis for decision making.
7) Several persons described their positive experiences with STR.
8) One person identified privacy concerns from listing registration materials on the City’s
website.
9) One person asserted that Type 3s have a negative impact on affordable housing and two
questioned whether there is enough Type 3s exist to make a material difference.
A recording of the public hearing is available at http://www.bozeman.net/Video.
Background: Subsequent to the adoption of the Interim Zoning Ordinance and in preparation for
this discussion, City staff took a proactive approach to soliciting community input. We initiated
three major opportunities for citizen input into this initiative:
• Online City Hall Forum
• Public Forums
• Written Public Comment
Online City Hall: The internal team drafted and launched an Online City Hall survey which began
on December 19, 2016 and ran through January 31, 2017.
The City received 768 survey responses with 177 of those from registered, identified users.
Survey highlights (rounded to nearest percentage):
• 73% of people surveyed believed there are STRs in their neighborhood.
• When asked about the positive effects of STRs,
o 84% believed STR properties are usually well cared for,
o 47% believed there are fewer empty/dark houses in their neighborhood, and
o 47% believed that it provided an opportunity to meet new people.
• When asked about the negative effects,
o 65% were concerned with parking,
o 56% were concerned with the effect on the supply of housing, and
o 44% were concerned with changes to the character of their neighborhood and noise.
• 62% agreed there should be a permit and fee for operating an STR
• 64% agreed there should be a limit on the number of guests
• 79% agreed there should be a local property manager or responsible person
• Primary reasons for owning or operating an STR:
o 44% own or operate an STR to make additional income,
o 35% to pay the mortgage, and
3021
17185, Staff Report for the Short Term Rental Municipal Code Text Amendment Page 20
of 21
o 21% because they live there part-time and did not want to leave their property
empty.
When asked about the areas in which STRs should be allowed, 73% felt they should be allowed in
all city residential zoning districts.
Public forums: Assistant City Manager Winn led three public engagement meetings in January
2017. The public meetings were scheduled on different days of the week in the evening at three
different locations in an effort to boost attendance. The meetings were organized in a consensus
format with all participants’ input captured in their words.
103 people attended the community forums. Participants were asked to describe their “worst fears”
and “best possible outcomes”. Staff captured these ideas in the speaker’s own words on large pads
of paper. At each meeting, discussions were lively and the participants were engaged and
respectful of the different viewpoints offered. Overall, we received very positive feedback on the
usefulness of these meetings. A summary of the feedback received at these public forums can be
found in Attachment 1.
Written public comment: At the time of this writing, the City has received 77 written comments
related to STRs as of the writing of this report. These comments were submitted to
agenda@bozeman.net and the Neighborhood Coordinator including comments submitted for a
related CUP application for a property at 304 W. Cleveland (see hyperlinks below for 2016
comments and 2017 comments online). These comments reflect a wide range of viewpoints.
The InterNeighborhood Council (INC), which is composed of an elected representative from each
of the 13 neighborhood associations, formed a working group to investigate STRs and their effect
on neighborhoods. This resulted in a set of recommendations that were supported by the INC.
Regarding the zoning districts that should allow STRs, INC’s recommendation is that the rental of
a room should be allowed in all zoning districts, and that STRs which are not the owner’s primary
residence should not be allowed in R-S and R-1. They were not able to reach a consensus on where
to allow STRs that are the owner’s primary residence. See Attachment 3, 2017 comments for
INC’s recommendation.
APPENDIX C - APPLICANT INFORMATION AND REVIEWING STAFF
Applicant: Bozeman City Commission, PO Box 1230, Bozeman MT 59771
Report By: Chris Saunders, Policy and Planning Manager
3022
17185, Staff Report for the Short Term Rental Municipal Code Text Amendment Page 21
of 21
FISCAL EFFECTS
Minimal budgeted funds will immediately be expended for implementation of this text
amendment. Costs will be incurred for review of individual registration requests. If the
Commission chooses to use an online compliance monitoring service costs will be incurred.
Costs vary depending on what level of service the community desires. Revenue will be obtained
by application fees. The Commission has not yet established the fee for registration. Total
balance of costs and revenues will depend on how many applications are submitted and for of
what type of STR.
ATTACHMENTS
The full application and file of record can be viewed at the Community Development
Department at 20 E. Olive Street, Bozeman, MT 59715.
Provisional Ordinance 1974
Public Comments (available by web link)
- Attachment 1 – Summary of public workshops (Attachment E of the April 24, 2017
memo to the City Commission regarding short term rentals)
- Attachment 2 – Survey responses
- Attachment 3 – Web link to 2016 comments and 2017 comments
Short term rental review process diagram
Large scale map of zoning districts by STR type allowed. Available electronically only.
3023
3024
3025
3026
3027
3028
3029
3030
3031
3032
3033
3034
3035
3036
3037
Page 1 of 11
THE CITY COMMISSION SPECIAL MEETING OF BOZEMAN, MONTANA
MINUTES
Thursday, June 22, 2017
Deputy Mayor - Cynthia Andrus: Present
Commissioner - Jeff Krauss: Present
Mayor - Carson Taylor: Present
Commissioner - Chris Mehl: Present
Commissioner - I-Ho Pomeroy: Present
Staff Present at the Dais: Interim City Manager (ICM) Dennis Taylor, Assistant City Manager (ACM)
Chuck Winn, City Attorney (CA) Greg Sullivan, Assistant City Attorney (ACA) Karen, City Clerk Robin
Crough
A. 06:02:18 PM (00:05:14) Call to Order – 6:00 PM - Commission Room, City Hall, 121 North Rouse
Mayor Taylor called the meeting to order at 6:02 PM.
B. 06:02:32 PM (00:05:27) Pledge of Allegiance and a Moment of Silence
C. 06:03:26 PM (00:06:22) Changes to the Agenda
Dennis Taylor asked to move Public Comment, Item D, until after the Action Items. Mayor Taylor
confirmed.
D. Public Comment - Please state your name and address in an audible tone of voice for the record. This
is the time for individuals to comment on matters falling within the purview of the Bozeman City
Commission. There will also be an opportunity in conjunction with each agenda item for comments
pertaining to that item. Please limit your comments to three minutes. MOVED TO AFTER ACTION
ITEMS.
E. 06:03:54 PM (00:06:50) Action Items
1. 06:03:57 PM (00:06:53) Continued from May 22, 2017 – Ordinance 1974 Provisional Adoption,
Amending the Bozeman Municipal Code to Regulate Short Term Rentals, Application 17185 (Winn
/ Saunders) (Original materials from May 22, 2017)
3038
Bozeman City Commission Special Meeting DRAFT MINUTES, June 22, 2017
Page 2 of 11
06:04:15 PM (00:07:11) Discussion
Mayor Taylor explained that the hearing would picked up directly from May 22, 2017. He clarified a
previous statement about public comment.
06:05:52 PM (00:08:48) Public Comment
Mayor Taylor opened public comment.
06:06:23 PM (00:09:19) Nick Landeros, Public Comment
Mr. stated it was not appropriate to regulate short-term rentals. He spoke of the benefits of short-term
rentals.
06:09:33 PM (00:12:29) Steve Wagner/Gabriella Nelson, Public Comment
Mr. Wagner read a letter from Ms. Nelson, speaking of their family home and short-term term rentals.
They asked to continue allowing vacation rentals.
06:10:53 PM (00:13:49) Jeff York, Public Comment
Mr. York opposed the proposed regulations, he stated the issue was a red herring and did not see issues
with short-term rentals. He asked to end the temporary ban, but move forward with fees.
06:13:17 PM (00:16:13) Maryann Martell, Public Comment
Ms. Martell spoke of unfairness and confusion regarding the grandfather issue, CUPs, and what the law
and the City asked of them. She asked for a cap, but allow those already in existence to come into
compliance. She asked to bring back the CUP.
06:17:11 PM (00:20:07) Carl Warren, Public Comment
Mr. Warren spoke of a next door vacation rental and his neighbors, and how well he knows his
neighbors and that the STR is owned by an LLC. A neighborhood has to have neighbors.
06:20:27 PM (00:23:23) Steve Candler, Public Comment
Mr. Candler discussed some recommended changes to the proposed ordinance. He submitted physical
public comment with his requested changes.
06:24:07 PM (00:27:03) Jessie Brown, Public Comment
Ms. Brown helps fund her college by helping her family manage a short-term rental.
06:24:44 PM (00:27:40) Public Comment
Mayor Taylor closed public comment.
06:24:53 PM (00:27:49) City Attorney Clarification
City Attorney Sullivan discussed the formal protest for this issue.
From May 22, 2017: Motion that having reviewed and considered the proposed ordinance, public
comment, recommendation from the Zoning Commission, and all the information presented, I hereby
adopt the findings presented in the staff report for application 17185 and move to provisionally adopt
Ordinance 1974, Amending the Bozeman Municipal Code to Regulate Short Term Rentals.
Commissioner – Jeff Krauss: Motion
Deputy Mayor – Cynthia Andrus: 2nd
3039
Bozeman City Commission Special Meeting DRAFT MINUTES, June 22, 2017
Page 3 of 11
From May 22, 2017: Amendment to the Motion to treat NEHMU as R-3 instead of R-2 for the purposes
of short-term rentals. The amendment passed 5-0.
Commissioner – Chris Mehl: Motion
Commissioner – Jeff Krauss: 2nd
06:29:01 PM (00:31:57) Discussion
CR Mehl was interested in addressing grandfathering.
CR Krauss stated it would hard to write grandfathering in at the dais, but he discussed the different
nature of currently operating STRs. He then discussed capping it after a year’s submissions and using a
Conditional Use Permit.
CR Mehl favors grandfathering for those who are registered and legal. He also favors a density cap.
DM Andrus discovered there are 96 tourist homes registered in the county. 56 of them are in the city
limits. These should be grandfathered. She asked CR Krauss about ones that could be permitted, which
he answered.
Mayor Taylor clarified what grandfathering actually is, and who it would generally apply to. He is open
to grandfathering in those with a business license and those who have gone through the Health
Department. He discussed some variables he was interested in looking at.
CR Pomeroy asked the mayor to clarify what grandfathering as discussed means.
06:46:52 PM (00:49:48) City Attorney Clarification
City Attorney Sullivan clarified what the City’s current legal and illegal uses are, and the grace period in
the proposed ordinance addresses this.
06:50:20 PM (00:53:16) Discussion
CR Krauss confirmed the City Attorney’s stated, and clarified his preference is to accommodate those
operating now regardless of if it was legal.
Mayor Taylor stated his category for grandfathering is much narrower, and described those parameters.
DM Andrus wants to use the webcrawler to identify those currently operating.
06:55:40 PM (00:58:36) City Attorney Clarification
As to the effective date of the ordinance, they could require evidence prior of use, possibly with a sworn
affidavit. The Commission would need to determine the administrative process, and the time period for
allowance.
06:57:59 PM (01:00:55) Discussion
CR Mehl discussed a number of issues discussed this evening across all districts.
CR Pomeroy asked if the City will allow unlicensed owners to come in legally.
Mayor Taylor again discussed what he was willing to consider.
07:00:59 PM (01:03:55) Amendment to the Motion to make legal non-conforming those short-term
rentals with both a business license and have completed the Health Department “public
accommodations” license.
3040
Bozeman City Commission Special Meeting DRAFT MINUTES, June 22, 2017
Page 4 of 11
Commissioner - Chris Mehl: Motion
Deputy Mayor - Cynthia Andrus: 2nd
07:01:26 PM (01:04:22) Discussion
CR Mehl discussed who this would apply to.
DM Andrus supports this as well, as there are very few.
CR Krauss clarified what this motion intends. The Commission discussed in detail.
CR Pomeroy asked about the health and fire inspections.
City Attorney Sullivan explained the business license requirements and zoning review from the City.
Mayor Taylor supports this as it’s a limited number.
07:11:44 PM (01:14:40) Vote on the Amendment to the Motion to make legal non-conforming those
short-term rentals that both have a business license and a Health Department “public
accommodations” license. The amendment passed 5-0.
Commissioner - Chris Mehl: Motion
Deputy Mayor - Cynthia Andrus: 2nd
Deputy Mayor - Cynthia Andrus: Approve
Commissioner - Jeff Krauss: Approve
Mayor - Carson Taylor: Approve
Commissioner - Chris Mehl: Approve
Commissioner - I-Ho Pomeroy: Approve
07:12:12 PM (01:15:08) Discussion
CR Krauss stated his main change is to allow Type 2 in R-1.
07:13:00 PM (01:15:56) Amendment to the Motion to allow currently operating unauthorized short-
term rentals in R-S, R-1, and R-2 to submit an application to register with the City – following a process
acceptable to the City Attorney - prior to the effective date of the ordinance, and to then apply within
X months for a Conditional Use Permit using the Conditional Use Permit process in the new ordinance
to be a legal non-conforming use.
Commissioner - Jeff Krauss: Motion
Commissioner - I-Ho Pomeroy: 2nd
07:14:42 PM (01:17:38) Discussion
CR Krauss asked the City Attorney if anything was missed.
Mayor Taylor clarified the process and intent of CR Krauss’s motion. CR Krauss clarified.
CR Mehl asked the City Attorney about how to incorporate in the CUP process in the ordinance.
CR Pomeroy clarified that this includes all types. She supports the motion.
CR Krauss discussed the public purpose of the amendment.
CR Mehl asked how this affects future applications and density caps. He is going to oppose this. He is
not convinced a CUP is the best option.
DM Andrus still wants to bring folks in that haven’t gone through the process.
3041
Bozeman City Commission Special Meeting DRAFT MINUTES, June 22, 2017
Page 5 of 11
CR Krauss discussed the necessity of the CUP.
Mayor Taylor opposes the motion, as he would never support a non-owner occupied house being an
STR in an R-1 or R-2. Staff does not have the resources to do this.
07:33:11 PM (01:36:07) Vote on the Amendment to the Motion to allow currently operating
unauthorized short-term rentals in R-S, R-1, and R-2 to submit an application to register with the City –
following a process acceptable to the City Attorney - prior to the effective date of the ordinance, and
to then apply within X months for a Conditional Use Permit using the Conditional Use Permit process
in the new ordinance to be a legal non-conforming use. The amendment passed 3-2.
Commissioner - Jeff Krauss: Motion
Commissioner - I-Ho Pomeroy: 2nd
Deputy Mayor - Cynthia Andrus: Approve
Commissioner - Jeff Krauss: Approve
Mayor - Carson Taylor: Disapprove
Commissioner - Chris Mehl: Disapprove
Commissioner - I-Ho Pomeroy: Approve
07:33:29 PM (01:36:25) City Attorney Clarification
City Attorney Sullivan stated that the final motions may change at final adoption to be correct. The
Commission discussed and agreed.
07:35:47 PM (01:38:43) Questions of Staff
CR Pomeroy asked how the outreach would be implemented.
CR Krauss discussed personal responsibility.
07:38:13 PM (01:41:09) Amendment to the Motion to allow Type-2 STRs as a permitted use in R-1 and
R-S zoning districts.
Commissioner - I-Ho Pomeroy: Motion
Deputy Mayor - Cynthia Andrus: 2nd
07:38:44 PM (01:41:40) Discussion
CR Pomeroy stated this use is fine.
CR Krauss discussed the nature of owner-occupied use.
CR Mehl discussed the small area that this effects. He discussed the neighborhood character of R-1.
DM Andrus stated the intent of zoning, but has thought of the impact of STRs, and their impact on
quality of life. She supports the amendment, as everything should experience the same.
Mayor Taylor opposes the amendment. His issue is accountability. He stated this impacts the incentive
to rent ADUs long-term. CR Krauss clarified this was permitted.
CR Pomeroy asked how this could be enforced.
07:54:03 PM (01:56:59) City Attorney Clarification
Assistant City Attorney asked if this also applied to R-S since they are treated the same.
3042
Bozeman City Commission Special Meeting DRAFT MINUTES, June 22, 2017
Page 6 of 11
07:55:19 PM (01:58:15) Discussion
CR Mehl doesn’t understand why this is allowed considering others discussion.
DM Andrus stated that she intends to remove non-owner-occupied.
CR Mehl stated then that she would want to vote no on this.
Mayor Taylor stated it’s easier to loosen the strings than to tighten.
07:59:02 PM (02:01:58) Vote on the Amendment to the Motion to allow Type-2 STRs as a permitted
use in R-1 and R-S zoning districts. The amendment failed 2-3.
Commissioner - I-Ho Pomeroy: Motion
Deputy Mayor - Cynthia Andrus: 2nd
Deputy Mayor - Cynthia Andrus: Disapprove
Commissioner - Jeff Krauss: Approve
Mayor - Carson Taylor: Disapprove
Commissioner - Chris Mehl: Disapprove
Commissioner - I-Ho Pomeroy: Approve
07:59:23 PM (02:02:19) Amendment to the Motion to eliminate Type-3 STRS as an authorized use in all
residential zoning districts.
Deputy Mayor - Cynthia Andrus: Motion
Commissioner - Chris Mehl: 2nd
07:59:43 PM (02:02:39) Discussion
DM Andrus stated that STRs impact quality of life, and non-owner-occupied have a bigger impact.
08:01:51 PM (02:04:47) City Attorney Clarification
The City Attorney clarified if this was all zones or just residential.
08:02:32 PM (02:05:28) Discussion
The Commission discussed where this was authorized.
CR Krauss asked if this recognizes that there will be some grandfathered in.
CR Pomeroy stated this also affects affordable housing.
CR Mehl understands the intent and agrees with the commercial exception.
Mayor Taylor will support as it’s easier to loosen this than tighten it.
CR Krauss referred to comments that state “tenants don’t build neighborhoods.” We need to stop
stigmatizing renters, as this is wrong.
CR Pomeroy asked the mayor why he changed his opinion.
08:12:59 PM (02:15:55) Vote on the Amendment to the Motion to eliminate Type-3 STRS as an
authorized use in all residential zoning districts. The amendment passed 5-0.
Deputy Mayor - Cynthia Andrus: Motion
Commissioner - Chris Mehl: 2nd
3043
Bozeman City Commission Special Meeting DRAFT MINUTES, June 22, 2017
Page 7 of 11
Deputy Mayor - Cynthia Andrus: Approve
Commissioner - Jeff Krauss: Approve
Mayor - Carson Taylor: Approve
Commissioner - Chris Mehl: Approve
Commissioner - I-Ho Pomeroy: Approve
08:13:15 PM (02:16:11) Commission Recess
The mayor called the Commission into recess until 8:25 PM.
08:26:43 PM (02:29:39) Call to Order
Mayor Taylor called the meeting to order at 8:26 PM.
08:27:31 PM (02:30:27) Questions of Staff
CR Mehl asked City Attorney Sullivan if the conditions of CUPs must still be followed. He also asked if the
CUP would stay with the land or individual.
CR Krauss asked if that’s how the grandfathering would be set up.
08:29:46 PM (02:32:42) Discussion
CR Mehl stated he wants an overall cap.
CR Krauss stated that the fourth amendment this evening acts as a limit.
CR Pomeroy agreed with CR Krauss.
DM Andrus is interested but is concerned about enforcement.
Mayor Taylor stated he’s not interested in creating a race for people coming in. This should really only
apply in areas of permitted uses.
CR Mehl stated it would have just been Type-2.
08:36:09 PM (02:39:05) Amendment to the Motion for Amendment #2 to apply to all residential zoning
districts.
Commissioner - Jeff Krauss: Motion
Commissioner - I-Ho Pomeroy: 2nd
08:37:16 PM (02:40:12) Discussion
CR Krauss stated the associated CUP process.
08:38:41 PM (02:41:37) Vote on the Amendment to the Motion for Amendment #2 to apply to all
residential zoning districts. The amendment passed 5-0.
Commissioner - Jeff Krauss: Motion
Commissioner - I-Ho Pomeroy: 2nd
Deputy Mayor - Cynthia Andrus: Approve
Commissioner - Jeff Krauss: Approve
Mayor - Carson Taylor: Approve
Commissioner - Chris Mehl: Approve
Commissioner - I-Ho Pomeroy: Approve
3044
Bozeman City Commission Special Meeting DRAFT MINUTES, June 22, 2017
Page 8 of 11
08:38:57 PM (02:41:53) Discussion
CR Mehl asked about the CUP requirement before progressing through amendments.
Mayor Taylor discussed his willingness to discuss CUP or process alternatives.
CR Mehl asked staff if they recommend a CUP. City Attorney Sullivan and ACM Winn responded.
CR Krauss stated that there are some situations that will not have the conditions, which is why this is
important.
08:49:43 PM (02:52:39) Amendment to the Motion for Amendment #2 to add “, if necessary,” after
“effective date of the ordinance, and.”
Commissioner - Chris Mehl: Motion
Commissioner - Jeff Krauss: 2nd
08:50:06 PM (02:53:02) Discussion
CR Mehl agrees this isn’t carte blanche, and it should also be administrative.
CR Krauss explained when this could apply and when it wouldn’t. The Commission discussed in detail.
08:54:09 PM (02:57:05) Vote on the Amendment to the Motion for Amendment #2 to add “, if
necessary,” after “effective date of the ordinance, and.” The amendment passed 5-0.
Commissioner - Chris Mehl: Motion
Commissioner - Jeff Krauss: 2nd
Deputy Mayor - Cynthia Andrus: Approve
Commissioner - Jeff Krauss: Approve
Mayor - Carson Taylor: Approve
Commissioner - Chris Mehl: Approve
Commissioner - I-Ho Pomeroy: Approve
08:54:26 PM (02:57:22) Discussion
DM Andrus asked if the bed tax gets included in the business license or the health department, specific
to number 1. The Commission discussed the relationship to the previous amendment. CA Sullivan
clarified that a business license is required per amendment 1, and detail about requirements the City
will need to see in relationship to amendment 2.
CR Pomeroy asked about the fees for inspections. ACM Winn explained what is annual and what is
initial, and explained in detail.
09:03:32 PM (03:06:28) City Attorney Clarification
CA Sullivan reminded the Commission to make findings regarding public comment. He also requested
that staff be able to bring this back for provisional adoption at a later date since these are significant
issues.
09:04:37 PM (03:07:33) Discussion
Mayor Taylor stated that when it comes back, people can protest it, and rule on it at that time.
3045
Bozeman City Commission Special Meeting DRAFT MINUTES, June 22, 2017
Page 9 of 11
Currently the requirements for a protest have not been met. He also requested staff to look at Mr.
Candler’s language.
09:06:39 PM (03:09:35) Discussion
CR Krauss stated that this is the third large meeting on this. This discussion addresses many of the
comments. He discussed the health, safety, and welfare concern of his. He also sees the value of
protecting R-1 neighborhoods.
DM Andrus spoke highly of the process and thinks this is on the right track.
CR Pomeroy reiterated she wants all types in all zones, but she compromised.
CR Mehl supports the motion. He reiterated the importance of public health and safety.
Mayor Taylor discussed the process and the cost issue. He asked staff to consider the fees, staffing, and
time limits. The fundamental issue of this discussion is the integrity of the neighborhoods, and safety of
the neighborhoods. The enforcement piece will also be an issue.
09:28:30 PM (03:31:26) Vote on the Main Motion as Amended that having reviewed and considered
the proposed ordinance, public comment, recommendation from the Zoning Commission, and all the
information presented, I hereby adopt the findings presented in the staff report for application 17185
and move to provisionally adopt Ordinance 1974, Amending the Bozeman Municipal Code to Regulate
Short Term Rentals. The motion passed 5-0.
Commissioner - Jeff Krauss: Motion
Deputy Mayor - Cynthia Andrus: 2nd
Deputy Mayor - Cynthia Andrus: Approve
Commissioner - Jeff Krauss: Approve
Mayor - Carson Taylor: Approve
Commissioner - Chris Mehl: Approve
Commissioner - I-Ho Pomeroy: Approve
09:28:42 PM (03:31:38) City Attorney Clarification
CA Sullivan stated that this will not happen before July 17, 2017 for noticing reasons.
2. 09:29:20 PM (03:32:16) Interim Ordinance 1977, Second Extension of Interim Ordinance 1958,
Amending Section 38.08.020 of the Municipal Code to Change the Uses Allowed Within the R-1,
R-2, R-S and NEHMU Zoning Districts by Removing Extending Stay Lodgings as a Conditional Use
for a Period of Six Months (2/3 Majority of Commission Required) (Winn / Stambaugh)
09:30:07 PM (03:33:03) Staff Presentation
CA Sullivan stated the timelines for final adoption and policy implementation.
09:31:08 PM (03:34:04) Public Comment
There was no public comment.
09:31:36 PM (03:34:32) Motion that having conducted a public hearing, considered public testimony,
and finding insufficient protests have been so far received, and finding the City requires additional
time to develop short term rental regulations, I hereby move to adopt Ordinance 1977 extending
3046
Bozeman City Commission Special Meeting DRAFT MINUTES, June 22, 2017
Page 10 of 11
Interim Zoning Ordinance 1958 for an additional six-month period or until such time as the City acts to
amend the municipal code or reinstate the conditional use, whichever is earlier.
Commissioner - Chris Mehl: Motion
Commissioner - Jeff Krauss: 2nd
09:32:08 PM (03:35:04) Discussion
CR Mehl stated this need to be continued to be sufficient.
CR Krauss stated this was necessary since this wasn’t expected.
CR Pomeroy supports the motion.
09:33:53 PM (03:36:49) Vote on the Motion that having conducted a public hearing, considered public
testimony, and finding insufficient protests have been so far received, and finding the City requires
additional time to develop short term rental regulations, I hereby move to adopt Ordinance 1977
extending Interim Zoning Ordinance 1958 for an additional six-month period or until such time as the
City acts to amend the municipal code or reinstate the conditional use, whichever is earlier. The
motion passed 5-0.
Commissioner - Chris Mehl: Motion
Commissioner - Jeff Krauss: 2nd
Deputy Mayor - Cynthia Andrus: Approve
Commissioner - Jeff Krauss: Approve
Mayor - Carson Taylor: Approve
Commissioner - Chris Mehl: Approve
Commissioner - I-Ho Pomeroy: Approve
D. 09:34:45 PM (03:37:41) Public Comment
There was no public comment.
F. 09:34:56 PM (03:37:52) FYI/Discussion
1. CR Mehl asked staff to update him on the intersection policy.
2. CR Krauss is seeing delay in projects because of intersection restrictions. He stated his
interest is heightened.
3. Mayor Taylor reminded the public of upcoming meetings.
G. 09:37:30 PM (03:40:26) Adjournment
Mayor Taylor adjourned the meeting at 9:37 PM.
___________________________________
Carson Taylor
Mayor
3047
Bozeman City Commission Special Meeting DRAFT MINUTES, June 22, 2017
Page 11 of 11
ATTEST:
___________________________________
Robin Crough
City Clerk
PREPARED BY:
___________________________________
Robin Crough
City Clerk
Approved on: ___________________________________
3048
PROPOSED SHORT TERM RENTAL (STR) REGISTRATION PROCESS - REVISED
STEP #1:
APPLY TO THE CITY/COUNTY HEALTH
DEPARTMENT FOR A
PUBLIC ACCOMMODATION LICENSE.
(If applicant contacts the City first, the applicant will be
directed to the Health Department.)
The Health Department will take the public
accommodation license application, collect their
application fees, and direct the applicant to the City’s
Community Development Department to register their STR
with the City and to schedule the fire inspection required
by the Health Department. The Health Department will
begin their review process.
The State of Montana requires every type of STR to
obtain a Public Accommodation License pursuant to
50-51-201, MCA. The Gallatin City/County Health
Department is charged with implementing this State
requirement in Gallatin County. See
http://healthygallatin.org/permits-licensing/lodging/
The Health Department and the City will work
together on the approval process. The Health
Department cannot approve a public accommodation
license without a successful fire inspection by the
City, and the City cannot approve a STR registration
without proof the public accommodation license has
been approved.
STEP #2:
APPLY TO THE CITY COMMUNITY DEVELOPMENT
DEPARTMENT FOR STR REGISTRATION
The City has created a website to take the STR
registration application, collect the registration fee
and fire inspection fee, and forward applicant’s
information to the Bozeman Fire Department for
inspection scheduling.
STEP #3:
BOZEMAN FIRE INSPECTION
Once the Fire Department receives the request from
Community Development, a fire inspector will
contact the applicant to schedule the inspection.
When the fire inspection is completed and signed off
by the fire inspector, the inspector will forward the
signed fire inspection form to Community
Development. The Community Development
Department will provide the signed fire inspection
form to the applicant.
Every type of STR must register with the City under
the proposed STR ordinance. Information,
application forms, and the fire inspection checklist
will be available on the City website or by contacting
the Community Development Department at
20 E. Olive St.
406-582-2260
www.bozeman.net/STR
A fire inspection checklist will be provided to the
applicant when they first apply so that the applicant
may prepare for the fire inspection and hopefully
pass on the first try. However, if a repeat inspection
is required, additional fees will apply for the re-
inspection(s) and must be paid before the re-
inspection will be scheduled.
STEP 3(a):
Applicant provides the signed fire
inspection form to the Health Department
so they can complete their review.
→
↓
↓
3049
STEP #4:
CITY ZONING REVIEW
With the fire inspection completed, the Community
Development Department will finalize review of the
registration application materials to confirm the STR
complies with city requirements.
↓
↓
The Health Department completes their
review, performs a pre-operational
inspection, and approves the public
accommodation license. Health Department
provides applicant a signed inspection
report.
STEP #5:
ISSUANCE OF STR REGISTRATION
Once the Community Development Department determines the STR complies with city requirements and
confirms the STR has been licensed by the Health Department as a public accommodation, the City will issue
the STR registration.
The STR will have a unique registration number. The City will list the STR registration on its website, and the
registrant must include the STR registration number on all advertising of the STR.
The registration will be valid for one year from the end of the registration month, unless the registration is
revoked as provided in the proposed STR Ordinance.
STEP #4(a):
Once the Health Department public accommodation
license is approved, applicant provides a copy of the
signed Health Department inspection report to the
Community Development Department.
Most elements of the zoning review will occur during
the period when the fire inspection is being
scheduled and completed. If needed, public notice
occurs during this step.
→
←
3050
PROPOSED SHORT TERM RENTAL (STR) REGISTRATION RENEWAL PROCESS
STEP #1:
CITY/COUNTY HEALTH DEPARTMENT
PUBLIC ACCOMMODATION LICENSE RENEWAL.
(If applicant contacts the City first, the applicant will be
directed to the Health Department.)
A renewal notice will be mailed out by the state, typically
in November. Applicant must submit the renewal
application and fee.
The State of Montana requires every type of STR to
obtain a Public Accommodation License pursuant to
50-51-201, MCA. The Gallatin City/County Health
Department is charged with implementing this State
requirement in Gallatin County. See
http://healthygallatin.org/permits-licensing/lodging/
The Health Department and the City will work
together on the approval process. The Health
Department cannot approve a public accommodation
license without a successful fire inspection by the
City, and the City cannot approve a STR registration
without proof the public accommodation license has
been approved.
STEP #2:
APPLY TO THE CITY COMMUNITY DEVELOPMENT
DEPARTMENT FOR STR REGISTRATION RENEWAL
The City has created a website to take the STR
registration renewal application and collect the
registration fee. If you keep your license current, a
repeat fire inspection may be required if deemed
necessary by the City.
STEP #3:
BOZEMAN FIRE INSPECTION ONLY IF NEEDED
If a fire inspection is needed, once the Fire
Department receives the request from Community
Development, a fire inspector will contact the
applicant to schedule the inspection. When the fire
inspection is completed and signed off by the fire
inspector, the inspector will forward the signed fire
inspection form to Community Development. The
Community Development Department will provide
the signed fire inspection form to the applicant.
Every type of STR must register with the City under
the proposed STR ordinance. Information,
application forms, and the fire inspection checklist
will be available on the City website or by contacting
the Community Development Department at
20 E. Olive St.
406-582-2260
www.bozeman.net/STR
A fire inspection checklist will be provided to the
applicant when they first apply so that the applicant
may prepare for the fire inspection and hopefully
pass on the first try. However, if a repeat inspection
is required, additional fees will apply for the re-
inspection(s) and must be paid before the re-
inspection will be scheduled.
↓
↓
3051
STEP #4:
CITY ZONING REVIEW
With the fire inspection completed, the Community
Development Department will finalize review of the
registration renewal materials to confirm the STR
complies with city requirements.
↓
↓
The Health Department completes their
review, performs a pre-operational
inspection, and approves the public
accommodation license. Health Department
provides applicant a signed inspection
report.
STEP #5:
ISSUANCE OF STR REGISTRATION RENEWAL
Once the Community Development Department determines the STR complies with city requirements and
confirms the STR has been licensed by the Health Department as a public accommodation, the City will issue
the STR registration renewal.
The STR will have a unique registration number. The City will list the STR registration on its website, and the
registrant must include the STR registration number on all advertising of the STR.
The registration will be valid for one year from the end of the registration month, unless the registration is
revoked as provided in the proposed STR Ordinance.
STEP #4(a):
Once the Health Department public accommodation
license is approved, applicant provides a copy of the
signed Health Department inspection report to the
Community Development Department.
Most elements of the zoning review will occur during
the period when the fire inspection is being
scheduled and completed. If needed, public notice
occurs during this step.
→
←
3052