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AGENDA ITEM Item No.: 19 Date: February 12, 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. Background/ Summary. The City Council has discussed the Vacation rental issue recently, including March and April of 2016, June, October and November of 2017and most recently in the workshop on January 22, 2018. The Council has received reports that in some cases renters have not been respectful of neighboring properties. Reports of the disrespectful behavior have centered on noise complaints, though other factors have been reviewed, including lack of parking, additional traffic, trash. The Council was conscious about Orono's perception in the region as a transient community [by allowing short term rentals] and had concern that allowing short term rentals would promote this perception. The City Council, in their workshop on January 22nd, directed staff to prepare an ordinance that would prohibit the rental of a residential home for a period less than 30 days, but also allow for a resident to rent up to one room of their home to no more than 2 people for a short term. The workshop also included discussion on the need for a residential rental licensing program. In response to the workshop discussion and direction, staff has prepared three ordinances: Option A is an ordinance that prohibits short term rentals and requires a license. (Exhibit A) Option B is an ordinance that prohibits short term rentals and does not require a rental license. (Exhibit B) Option C is an ordinance that enhances our existing noise regulations, giving our police responders more tools with which to evaluate noise issues when they occur. (Exhibit D) Licensing The Metropolitan Council estimates that there are 500 renter occupied homes in Orono, more than 15% of our housing stock. Licensing would apply to all of these, in addition to the short term rentals. The anticipated costs associated with licensing are outlined below. Should the City desire to adopt more stringent rental housing and property maintenance codes, these fees will be re-evaluated to accommodate the additional investigation and inspection time. Prepared By: J. Barnhart Reviewed By: -Sb)R Approved By: -TV