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HomeMy WebLinkAbout06-22-17 City Commission Minutes V 9x 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. 1-3. Public-Ge mmeR% Please state your PaMe and-ad-dreSS an audible tene ef,Wrp fAr thp FeeeFd.This pertaining to th-;# i+,,,, Please limit y commPRU to thrpp .„ Ruto 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) i Page 1 of 11 Bozeman City Commission Special Meeting Final Minutes,June 22,2017 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 Wapner/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, 1 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 Page 2 of 11 Bozeman City Commission Special Meeting Final Minutes,June 22,2017 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: 2"d 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. Page 3 of 11 Bozeman City Commission Special Meeting Final Minutes,June 22,2017 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. Page 4 of 11 Bozeman City Commission Special Meeting Final Minutes,June 22,2017 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. Page 5 of 11 Bozeman City Commission Special Meeting Final Minutes,June 22,2017 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-1-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 Page 6 of 11 Bozeman City Commission Special Meeting Final Minutes,June 22,2017 Deputy Mavor-Cynthia Andrus:Approve Commissioner-Jeff Krauss:Approve Mavor-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 Mavor-Carson Taylor:Approve Commissioner-Chris Mehl:Approve Commissioner-I-Ho Pomeroy:Approve Page 7 of 11 Bozeman City Commission Special Meeting Final Minutes,June 22,2017 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. Page 8 of 11 Bozeman City Commission Special Meeting Final Minutes,June 22,2017 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 Manor-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) 01 - 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 Page 9 of 11 Bozeman City Commission Special Meeting Final Minutes,June 22,2017 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. C Carson Taylor Mayor Page 10 of 11 Bozeman City Commission Special Meeting Final Minutes,June 22,2017 ATTEST: Oz 41 Robin Crough < City Clerk 1, a 9 1 10 TIN CO-,, ,- PREPARED BY: Robin Crough City Clerk Approved on: Page 11 of 11