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REQUEST FOR COUNCIL ACTION Date: 2/12/2024 Item No.: 7.b. Department Approval City Manager Approval Item Description: Consider adoption of an ordinance revising regulations related to short term rentals and restarting issuance of short term rental licenses 1 2 Background 3 Since February 2023, issuance of new short term rental licenses has been on pause. Several Council 4 discussions have occurred since that time in an effort to try and understand what revisions need to be 5 made to the short term rental license process and/or regulations in order to lift the license pause and 6 begin to allow issuance of new short term rental licenses. Any license approved prior to February 2023 7 have been able to be renewed while the pause was in place. Most recently, the Council engaged in a 8 detailed discussion on December 4, 2023 about license regulations and directed staff to pursue several 9 ordinance amendments. The legislative history surrounding short term rental licensing is as follows 10(starting with the most recent): 11 December 4, 2023: The City Council examined a list of concerns surrounding short term rental 12 licensing, as well as additional regulations that aim to help mitigate real or perceived negative 13 impacts surrounding those concerns (see RCA dated 12-4-2023 as Attachment 1). The City 14 Council provided direction to staff regarding revisions to the regulations governing short term 15 rental licensing. Meeting minutes are provided as Attachment 2. 16 February 13, 2023: The City Council adopted an ordinance stopping the issuance of new short 17 term rental licenses. 18 January 30, 2023: After accepting testimony from residents concerning short term rentals, the 19 Council directed staff to draft an ordinance to stop issuance of new short term rental licenses 20 until such time the regulations could be further evaluated. 21 February 8, 2021: The City Council adopted Ordinance 1596 establishing a license requirement 22 for short term rentals. 23 January 11, 2021: The City Council discussed regulations for short term rentals and provided 24 direction to City staff with regard to an ordinance establishing license requirements. Extensive 25 public comment was taken during this meeting. 26 September 28, 2020: The City Council discussed various options for the regulation of short term 27 rentals. Extensive public comment was taken during this meeting. 28 As a result of the December 4, 2023 City Council discussion, an ordinance has been prepared 29(Attachment 3), which reflects the following revisions to the license requirement for short term rentals: 30 Lines 44-55: Clarification on what is meant by the minimum stay requirement of 7 or 10 days. 31 Lines 91-93: Establishment of a 500' setback between properties licensed for short term 32 rental. Properties not meeting this setback, but established prior to January 1, 2024, are exempt 33 for the setback. 34 Lines 124-125: Clarification that local lodging taxes must be paid monthly to the City's finance 35 department on forms provided by the City. 36 Lines 127-129: Notice that failure to pay local lodging taxes is subject to license suspension or 37 revocation. Page 1 of 2 Qbhf!24!pg!614