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Electronic CopY REQUEST FOR COUNCIL ACTION DATE: March 14, 2016 ITEM NO: 13 Department Approval: Administrator Reviewed: Agenda Section: Name Jeremy Barnhart �� Planning Title Community Development Director Item Description: #15-3759, City of Orono, Text Amendment: Short Term(Vacation)Rentals Application Summary The issue of short term (also known as vacation) rentals has been a topic of growing concern nationally over the last couple of years. It appears the loss of tax revenue and inspection oversight is a concern of larger municipalities. In Orono, the concerns seems to revolve more around neighborhood concerns with noise, parking, traffic, etc. Last summer, some Councilmembers receive one or more complaints from property owners regarding excessive noise, traffic, and trash associated from some rentals. At the time, a letter was sent to property owners understood to be renting to vacationers, reminding them to be good neighbors. Two properties were reported by neighbors to be renting to vacationers,though were found to be owner occupied. No complaints were received by city staff after the letters went out. Planning Commission Recommendation In February, the Planning Commission hosted a listening session on the subject, hearing from 8 owners (of the 12 identified by staf� of vacation rental property who advised the Planning Commission that they regulate their renters in a manner stricter than proposed by the City. Public hearings have been held on the subject in November 2015, January and February 2016. A copy of the draft ordinance was posted on the cities website since December. During this time, the Planning Commission reviewed several drafts of an ordinance, including a version that prohibited short term rentals. After much discussion during the February Planning Commission meeting(draft minutes attached, Exhibit C), the Commission is forwarding an ordinance that requires an annual license to rent dwellings in a short term basis. Included within this requirement are 6 conditions that must be followed to receive a license. The Commission purposefully did not restate ardinance regulations already in the city code. The 6 conditions primarily act as a reminder, and an ability to register property owners so that upon complaint,the city can react faster. The Planning Commission, with a vote of 5-1, recommended approval of the ordinance following the public hearing on February 16th. Commissioner Schoenzeit felt that the ordinance was unnecessary and was regulating something that wasn't an issue. No one spoke in favor or opposition to the proposal. C�t ��5 I�� Planning Staff Recommendation