03-12-2018 Council Packet - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, February 26, 2018 7:00 o'clock p.m. 12. #17-3984 CITY OF ORONO, TEXT AMENDMENT, SHORT-TERM (VACATION) RENTALS — ORDINANCE NO. 204, THIRD SERIES — Continued property owner. In addition, the City Attorney added some language provisions relating to suspending, revoking, non -renewals, or denial of a license. Barnhart noted the draft ordinance received by the City Council on Friday included some language relating to building and fire safety codes involved with a license. Staff from the beginning has looked at the ordinance as a means to obtain information about who is renting in the City and the extra level of building code inspection was not the intention. Barnhart noted he sent a new draft out earlier today without that language. Staff recommends the Council consider two additional exceptions in addition to the homesteaded property renting a room, group homes, etc.: 1. Snowbird rentals, which allows a snowbird to rent their home up to 120 days without a license. The homeowner must occupy the home the remainder of the year. 2. Activity Duty Military, which allows an active duty service person to rent their home without a license. Barnhart noted 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 two years. Barnhart stated overall it is Staff's belief the ordinance does what the City Council would like to accomplish in relation to rentals. Dankey asked if it will cost the City $50,000 to implement this ordinance. Barnhart indicated that is his best estimate and that he has included a summary of the anticipated costs in the Council packet. In addition, implementing a licensing program will require an amendment to the City's fee schedule. Assuming 500 rental properties, Staff estimates a cost of approximately $100 per rental unit, which amounts to $50 per year for each two-year license. If the Council desires a lower per year cost, the license term could be extended to three years. In addition, Staff recommends a reinstatement 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. Dankey commented it appears the people renting are getting a deal since it is costing the City a significant amount of money. Dankey stated she is still concerned about the ordinance. Walsh stated the City is looking to recuperate those costs through the licensing fee. Crosby noted the ordinance will also have a waiver for military and snowbirds. Walsh stated those items are up for discussion. Page 5 of 13