02-26-2018 Council Packet - Laserfiche WebLink

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AGENDA ITEM Item No.: 12 Date: February 26, 2018 Item Description: #17-3984 City of Orono, Text Amendment Short Term (Vacation) Rentals Presenter: Jeremy Barnhart, Community Agenda Planning Department Development Director Section: Report 1. Purpose. The purpose of this action item is to consider one of more ordinances amendments related to short term (aka Vacation) rentals and noise regulations. 2. 15.99 Deadline. Not Applicable 3. Background/ Summary. The Council directed the development of an ordinance that requires a license of all residential rental property and a prohibition of any rental term less than 30 day, except for a homesteaded property owner may rent up to two rooms of their home while occupied by the property owner. The City Attorney expanded the original draft ordinance to incorporate Council's direction, including provisions to suspend, revoke, non -renew or deny a license, including the three strikes provision. Of note, the draft ordinance does not require a license for a resident to rent up to two rooms for up to three unrelated persons the exception does not limit the number or age of renters due to enforcement challenges. The proposed license is for 2 years. Staff recommends the Council consider two additional exceptions, in addition to the homesteaded property renting a room, group homes, etc.: 1. Snowbird rentals, allows a snowbird to rent their home up to 120 days without a license, but must occupy the home the remainder of the year. This may help snowbirds maintain the home through house sitters and similar. 2. Activity Duty Military, allows an active duty service person rent their home without a license. License Initiating a licensing program will require an amendment to the fee schedule. The table below illustrates the anticipated costs involved in administering the program each license period. Assuming 500 rental properties (the number supplied by the Metropolitan Council), Staff estimates a cost of approximately $100.00 per rental unit, which, over the two year license term, is $50.00 per year. If the council desired a lower per year cost, staff suggests extending the license term to three years. Staff also suggests a re -instatement fee of $750, plus the license fee. The reinstatement fee is intended to offset the additional investigation and process costs expected in a revocation or suspension process. Prepared By: J. Barnhart Reviewed By: jS)V Approved By: -Sb9a