HomeMy WebLinkAboutHearing re Moratorium Short Term Rentals JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
TO: Board of County Commissioners
Mark McCauley, County Administrator
FROM: Josh D. Peters, AICP, Community Development Director
DATE: July 8, 2024
SUBJECT: Public Hearing regarding Ordinance 03-0610-24 regarding a development permit
application moratorium for Short-Term Rentals
STATEMENT OF ISSUE:
This public hearing will provide the general public an opportunity to provide public testimony on
Ordinance 03-0610-24 (attached), adopted by the Board of County Commissioners(BoCC)on June 10,
2024,thereby establishing a moratorium on acceptance and processing of development permit
applications for Short-Term Rentals(STRs), as regulated under Title 18 of the Jefferson County Code
(JCC). A public hearing is required within 60 days of adoption of an interim control such as the
referenced moratorium.
The Department of Community Development(DCD)plans to bring to the BoCC before the end of this
year a proposed ordinance that amends development regulations for short-term rentals, along with a
Planning Commission recommendation. The moratorium expires in April 2025, though it may be lifted
sooner, along with establishment of updated STR development regulations.
BACKGROUND
Following a trio of public listening sessions in March and subsequent Planning Commission meetings on
the topic of STRs (i.e., `vacation rentals' for fewer than 30 days), DCD will propose an ordinance to
amend the Unified Development Code(UDC) for consideration by the Planning Commission and the
BoCC. For background information,the July 3 DCD staff report to the Planning Commission is attached.
The report includes a summary of the results of the planning process to date, including public input. Also,
interested parties may visit the project webpage: www.co.jefferson.wa.us/I 73 I/Short-Term-Rentals
ANALYSIS
The BoCC has determined that development regulations for STRs should be evaluated for potential
amendment. Preliminary research indicates that there may be many more STRs in operation in the county
than have been permitted through DCD land use review. Additionally,there is an impact to the
availability of long-term housing from an abundance of STRs in a given community. See the attached
staff report and the STR project webpage for more information on the issue that the BoCC, DCD staff,
and the Planning Commission are in the process of addressing.
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The next step after the July 3 Planning Commission meeting is that DCD staff will assimilate and
synthesize ideas gathered from the community on(1)enforcement, (2) limiting rentals, (3)owner-
occupied versus other types, (4)neighborhood impacts, (5)tourism balance, (6)education/outreach, and
(7) life safety to help shape a proposed ordinance, which will then be posted in advance of a public
hearing before the Planning Commission this summer. A hearing date before the Planning Commission
has yet to be determined.
NOTICE
This public hearing is being held pursuant to Chapter 36.70A.390 RCW for the purpose of receiving
public testimony on the ordinance adopted in June to establish a moratorium on land use applications for
STRs. Written testimony submitted by electronic mail to:jeffbocc e,co.jefferson.wa.us; or by regular mail
postage prepaid to Jefferson County Commissioners' Office, PO Box 1220, Port Townsend, WA 98368;
will be accepted until the end of the public hearing, unless extended by the BoCC.
Notice of this hearing was published on June 26, 2024 and July 3, 2024 in the Port Townsend Leader,
Jefferson County's newspaper of record for legal notices.
FISCAL IMPACT/COST-BENEFIT ANALYSIS:
The General Fund supports this planning process. STR applications are supported by permit fees.
RECOMMENDATION:
Accept public testimony regarding the adoption of Ordinance 03-0610-24.
REVIEWED BY:
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Mark McCaule ounty Administrator Date
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STATE OF WASHINGTON
COUNTY OF JEFFERSON
An Ordinance Relating to Development
Regulations for Short-Term Rentals,
Declaring an Emergency, and Establishing a
Moratorium on Acceptance and Processing of
Applications for Hospitality Establishment ORDINANCE NO. 03-0610-24
Permits for Transient Residences or Transient
Guest Houses per Jefferson County Code
(JCC) 18.20.210(3)
WHEREAS, the Washington Constitution, Article XI, Section 11, confers upon
county legislative authorities the police power to adopt regulations necessary to protect the
health,safety, and well-being of its residents; and
WHEREAS,RCW 36.32.120(7)provides that the county legislative authorities shall
make and enforce, by appropriate resolutions or ordinances, all such police and sanitary
regulations as are not in conflict with state law; and
WHEREAS,the Growth Management Act, Chapter 36.70A RCW requires Jefferson
County to plan consistent with its provisions; and
WHEREAS, the Jefferson County Department of Community Development (DCD)
has on its workplan for 2024 study and adoption of amendments to JCC 18.20.210 concerning
development regulations for short-term rentals; and
WHEREAS,short-term rentals are considered accommodations for transient or tourist
use of fewer than 30 days; and
WHEREAS,Jefferson County has issued approximately 76 land use permits for short-
terms rentals; and
WHEREAS,Jefferson County has information that suggests that there may be more
than 400 short-term rentals in its jurisdiction operating without the required permits; and
WHEREAS, since Jefferson County will conduct a public planning process to review
and potentially amend existing regulations for short-term rentals, it is possible that DCD could
receive a substantial number of permit applications for short-term rentals submitted by
applicants wishing to be vested under current regulations; and
WHEREAS, Jefferson County wishes to decide whether to change existing
regulations and then be able to adopt new regulations, if any, before processing a substantial
set of short-term rental applications under current rules; and
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WHEREAS,without adequate land use regulation of short-term rentals, there may be
life and safety concerns or impacts to neighbors; and
WHEREAS, the planning process will also address the issue of availability of long-
term housing and how it is related to the number of short-term rentals in the county, and a
moratorium would preserve the status quo to allow time for the County to adequately review
the issue; and
WHEREAS, permitting of a large number of short-term rentals before Jefferson
County has an opportunity to revisit applicable development regulations could threaten the
integrity and rural character of rural areas in Jefferson County; and
WHEREAS, time is needed to study the issue of short-term rentals and potential
effects of regulation in various parts of Jefferson County; and
WHEREAS, Jefferson County needs to adopt clear standards for determining who
may operate a short-term rental business and under what conditions; and
WHEREAS, a number of other jurisdictions in Washington State have struggled to
find a suitable balance in the regulation of short-term rentals,considering the needs of the unit
owners, the needs of different segments of the community, and the needs of those who may
rent the units; and
WHEREAS, Jefferson County needs to study this issue with input from the
community concerning the most appropriate ways to regulate short-term rentals in Jefferson
County, and has developed a work plan to facilitate the process; and
WHEREAS,an emergency exists necessitating adoption of a moratorium concerning
the acceptance and processing of applications for land use approval of short-term rentals
pursuant to Title 18 JCC, otherwise known as the Unified Development Code(UDC);and
WHEREAS, a moratorium enacted under RCW 36.70A.390 and RCW 36.70.795
provides a method by which a county may preserve the status quo so that new plans and
regulations shall not be rendered moot by intervening development; and
WHEREAS, RCW 36.70A.390 and RCW 36.70.795 authorize the Board of County
Commissioners to adopt and renew a moratorium, interim zoning map, interim zoning
ordinance, or interim official control without holding a public hearing, as long as a public
hearing is held within at least 60 days of its enactment; and
WHEREAS, pursuant to WAC 197-1 l-880,the adoption of a moratorium ordinance
is exempt from the requirements of a threshold determination under the State Environmental
Policy Act(SEPA)and future permanent zoning regulations shall be reviewed in accordance
with SEPA Rules; and
WHEREAS, a moratorium shall provide Jefferson County with additional time to
review and amend its land use regulations and, if necessary, its comprehensive plan related
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to these issues in accordance with a work plan approved by the Board of County
Commissioners; and
WHEREAS, the Board of County Commissioners concludes that an emergency
moratorium is appropriate to preserve the status quo while it considers options for regulating
short-term rentals; and
WHEREAS,Jefferson County adopted Ordinance No. 01-0408-24 on April 8, 2024,
but it expired on its own terms on June 7, 2024 for failure to hold a hearing within 60 days;
and
WHEREAS, significant work on developing a permanent ordinance consisted with
the work plan in Ordinance No. 01-0408-24 has occurred since April 8, 2024,but more work
needs to be done pursuant to the work plan adopted in Ordinance No. 01-0408-24; and
WHEREAS, the Board of County Commissioners has decided to adopt a new
emergency moratorium for twelve months, less the time of the moratorium was in effect
pursuant to Ordinance No. 01-0408-24, because the reasons for adopting Ordinance No. 01-
0408-24 remain;
NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY
COMMISSIONERS OF JEFFERSON COUNTY, STATE OF WASHINGTON as
follows:
Section 1. Findings of Fact. The Board of County Commissioners adopts the above
"WHEREAS" recitals as findings of fact. These findings of fact support the action as
required by RCW 36.70A.390.
Section 2. Declaration of Emergency. The Board of County Commissioners hereby
declares that a moratorium must be imposed as an emergency measure to prevent the
submission of land use applications for short-term rentals to DCD in an attempt to vest rights
for an indefinite period of time. A vesting of a large number of applications to existing
regulations for short-term rentals would frustrate the ability of the County to study the issue
and provide an adequate regulatory solution that balances the differing needs of members of
community. The Board of County Commissioners finds as a fact and declares that an
emergency exists and that this moratorium ordinance is necessary for the immediate
preservation of public peace, health, or safety or for the support of county government and
its existing public institutions.
Section 3. Moratorium Imposed. Jefferson County hereby establishes an immediate
moratorium on the acceptance, processing, review or issuance of any application for a land
use permit for short term rentals pursuant to JCC 18.20.210.
Exceptions to this moratorium include:
1. Any application for repair of an existing permitted or legally nonconforming onsite
septic system, irrespective of the fact that there may be an existing, unpermitted short-
term rental onsite;
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2. Any application for repair, remodel, or expansion of an existing permitted or legally
nonconforming single or multi-family residence,commercial or industrial structure, or
facility owned by a public entity, irrespective of the fact that there may be an existing,
unpermitted short-term rental onsite;
3. Any application for a short-term rental permit that is deemed complete by DCD prior to
the date of the moratorium in Ordinance No. 01-0408-24;
4. Any building or development application which contains an accessory dwelling unit or
other similar units that could be suitable for short-term rental in the future,but does not
include an application for a short-term rental; and
5. Any publicly funded land use permit or building application or other development
application used primarily for housing persons experiencing homelessness or low-
income households.
Section 4. Duration of Moratorium. Because the County has developed a workplan in
Section 6, below, this moratorium shall be in effect from the effective date of this ordinance
until April 7, 2025, one year from the effective date of Ordinance No. 01-0408-24, unless
subsequently extended by the Board of County Commissioners pursuant to RCW
36.70,\ 190 and RCW 36.70.795.
Section 5. Public Hearing Required. As required by RCW 36.70A.390 and RCW
36.70.795, within 60 days of passage of this ordinance,the Board of County Commissioners
shall hold a public hearing on this moratorium. The public hearing shall be held within 60
days of the passage of this ordinance, which is August 9, 2024.
Section 6. Work Plan. During the moratorium period, County staff shall complete the
following work plan: (1) Study the issues concerning short-term rentals; (2) prepare a draft
ordinance with appropriate revisions to Jefferson County's zoning and land use regulations
and, if necessary, the comprehensive plan; (3)perform SEPA review of the draft ordinance;
and(4)conduct a public review process for the amendments, which includes public hearings
before Jefferson County's Planning Commission and Board of County Commissioners, if
required.
Section 7. Effective Date. This ordinance shall take effect and be in full force and effect
immediately upon passage.
Section 8. Conflict with Other Provisions of County Code. If the provisions of this
moratorium are found to be inconsistent with other provisions of the Jefferson County Code,
this moratorium shall control.
Section 9. Severability. The provisions of this ordinance are severable. If any section,
sentence, clause or phrase of this ordinance or its application to any person or circumstance
is held to be unconstitutional or unlawful by a court of competent jurisdiction, the remainder of
this ordinance or application of its provisions or other persons or circumstances shall remain
valid and unaffected.
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Section 10. SEPA Compliance. This ordinance is categorically exempt from the State
Environmental Policy Act under WAC 1 97-1 1-8000 9).
(SIGNATURES FOLLOW ON THE NEXT PAGE)
Page 5 of 6
APPROVED and ADOPTED this Q , day of lo h , 2024.
SEAL: JEFFERSON COUNTY BOARD OF
COMMISSIONERS
•�N,NINMNyN
co
%SS/ Ly�= Kate an, Chair
RAI
/''•OF WASN� ..
•• u uuNPM
Greg Brotherton, Member
ATTEST:
rawe-�- clz6og
Carolyn 41laway
Clerk of the Board
Approved as to form only:
0• C. 44--'L June 10, 2024
Philip C. Hunsucker Date
Chief Civil Deputy Prosecuting
Attorney
Page 6 of 6
JEFFERSON COUNTY
PLANNING COMMISSION
TO: Honorable Chair and Members of the Planning Commission
FROM: Brent A. Butler,AICP, Chief Strategy Officer
DATE: July 3, 2024
SUBJECT: Regulations governing rentals for less than 30 days
STATEMENT OF ISSUE:
Short Term Rentals("STR")subject to the Planning Commission's current review and analysis is limited
to rentals for less than 30 days in legally permitted Jefferson County housing. These regulations do not
apply to STRs in the City of Port Townsend's municipal boundaries.
2018 Comprehensive Plan
The Planning Commission review and analysis meets the expectation of the 2018 Jefferson County
Comprehensive Plan("CP"). Specifically, the CP's Housing Plan states that the county shall: "Evaluate
short-term rentals and consider policies to ensure a sufficient housing supply for year-round residents."'
Furthermore,the CP's Housing Action Plan is more specific. Exhibit 3-7 reads:
❖ "Evaluate short-term rentals using available local and state data sources. Determine if a
registration program and limits on numbers,zones, or locations are appropriate to help ensure a
sufficient housing supply for year-round residents."
❖ "Evaluate short-term rentals. To ensure such uses do not further restrict the housing supply for
year-round residents,the County could examine the prevalence of short-term rentals and
determine if a registration program and limits on numbers, zones, or locations are appropriate.
The Board of County Commissioners(`BoCC"or"Board")adopted a limited term prohibition
(moratorium)on new short term rental applications because of the possibility that the Department of
Community Development(DCD)would receive a substantial number of short-term rental permit
applications during this process. The BoCC also set July 8, 2024 at 11:00 AM as the hearing date and
time to accept public testimony on this moratorium, as initially enacted by Ordinance No.01-0408-24, and
reenacted by Ordinance 03-0610-24 on June 10, 2024.
These ordinances establish the five step workplan as set forth below:
(1) Study the issues concerning short term rentals,
(2)Prepare a draft ordinance with appropriate revisions,
(3)Perform State Environmental Policy Act(SEPA)review of the ordinance,
(4)Conduct a public review process.
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BACKGROUND:
Significant distinctions exist between transient rentals in structures for which a septic permit was
designed and properly permitted and HIP Camp or glamping type accommodations,which may not
include septic permit approvals unless permitted in accordance with the conditional use provisions of the
Jefferson County Code(JCC). For purposes of this agenda item, HIP Camp type of short-term rentals are
considered separately, and identified as transient rentals without structures.
Considerations Affecting Both Types of Short-Term Rentals
The municipal research service center has broadly discussed the concerns associated with these types of
uses and writes:
1. Lack of lodging and sales tax collection on these short-term rental stays;
2. Unregulated traffic, parking, and noise impacts on the surrounding neighborhood; and/or
3. Non-compliance with life/safety standards that are commonly applied to other types of lodging
establishments(such as hotels, motels, and bed-and-breakfasts)?"
You can access more information on this topic by going to: https://mrsc.org/stgy-informed/mrsc-
insi jzht/february-2016/local-government-catching-up-with-airbnb
Short Term Rentals in Structures(STRS)
Short term rentals, alternatively, are broadly permitted throughout the county in numerous zoning districts
including: 1)Agriculture (AG), 2)Commercial Forest(CF), 3)Rural Forest(RF),4)In-holding Forest
(IF), 5)Rural Residential (RR):1:5, RRl:10, RR1:20 & 6)Rural Village Center(RVC).
Master Planned Resorts
Jefferson County's two master planned resorts, including the Port Ludlow Master Planned Resort and the
Pleasant Harbor Master Planned Resort area in part designed to accommodate short term rentals. In Port
Ludlow, short tern rentals are permissible in the RC/CF Zone. Additionally,the county code requires that
at least 65%of the accommodations in the Pleasant Harbor Master Planned Resort consist of short-tern
rentals, as it is envisioned as a tourist destination. For specifics,please go to the Jefferson County Code
Section 17.60.070 entitled, "Resort cap and residential use restrictions"and also JCC 18.15.123 entitled,
"Allowable uses" Subsection(2)clearly states that short term visitor accommodations include but not
limited to hotels, motels, lodges, and other residential uses...and shall constitute no less than 65%of
rentals. It is also more broadly discussed in the definitions as permissible in Master Planned Resorts(see,
18.10.130 M definitions"Master Planned Resort", and JCC 18.15.126 Requirements for master planned
resorts)
ANALYSIS
Using the Planning Commission's input and in consultation with the Board,the DCD Director, and the
County Administrator,the Chief Strategy Officer("CSO")held three community sessions.One County
Commissioner attended each session' Several Planning Commissioner also attended and staff shared the
results as part of the Planning Commission's regular agenda on May 1 and 15,2024.
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At the May 15,2024 Planning Commission meeting, county staff working with the Planning Commission
distilled the concerns, comments, and ideas into seven subcategories. These include: 1)enforcement, (2)
limiting rentals, (3)owner-occupied versus other types, (4)neighborhood impacts, (5)tourism balance,
(6)education/outreach and(7) life safety. Since some of the comments do not fall neatly within these
seven areas, I've created an eighth row for entitled"other". On June 10, 2024,the county published a
press release outlining the above seven topics as those subject to further review at the July Yd meeting.
Phase One Outreach
March 12, 13 and 14, 2024 Workshops
May 1 & 15, 2024 Planning Commission meeting
TABLE 1:
Public Input Informed Research Matrix
Subject Area March 12, 2024 March 13, 2024 March 14, 2024
Cape George Tri-Area Quilcene
Enforcement 1) In example 3,a 1) In example 6,someone
jurisdiction limited said we should have two
numbers of cars and enforcement procedures,
uses police to enforce one platform-based
parking violations enforcement,and the
2) In example 4,impose an other requirements for
immediate fine that's platform to post only
removed upon those with valid permits
compliance
3) Questions 3 and 4.
Using the county GIS
see if there's a permit;if
there isn't,you should
file a complaint or,
alternatively,contact the
Sheriff regarding a
public nuisance
4) Question 5 options—a)
contract with a third-
party,b)revising the
code to require
platform-based
enforcement.
Limited Rentals 1) Question 6 options, 1) In example 1,an STR 1) In example 1,people
a)population size-based approval may have been residing near the forest
cap, conditioned upon a may rely on rental
b)water availability- community benefit(in income.
based cap, this case,a land 2) In example 2,someone
c)geography-and dedication) said that caps unequally
population-based caps, 2) In Example 3,Cayucos, distribute the rental
d)STR permission California approach to profits throughout the
conditioned upon long reduce density of STR is region.
term rental(s) addressed by zoning.No 3) In example 3,someone
2) Corporate Rentals two may be 100'radius suggested using limiting
a) Prohibit rentals for or 200' linear feet from rentals to 10 percent of
V two years, another the housing stock(60
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b) Require carbon- 3) In example 4,Portland, out of 600 homes in
based life form to Oregon sets up a Quilcene),or requiring
sign permit, process akin to a CUP the owner to live nearby
c) Require annual for larger STRs(6 or 4) In example 9,someone
permit renewal more)with six said that we should
process conditions for STRs consider a requirement
3) with 5 or less for carbon-based life
occupants) forms to sign the
4) Question 1 —if there's a agreement.
cap,should the county
wait for the level to fall
below the limit,wait for
the next year's annual
permitting process(if
adopted),or offer to the
next on a waitlist.
5) In question 2,someone
said a Cap based on
density should be
adopted,e.g.,ABC
licenses in California
are an example,when a
census tract or block is
oversaturated,then no
alcohol serving
businesses may be
approved.
Owner Occupied 1) 1) In example 4,Portland, 1) In example 8,someone
versus other types Maine,documents that shared that the tiered
they exempt both STR approach,which gives
and long-term rentals higher priority to
that are landlord- resident-occupied
occupied with fewer housing should be
than five units(note: prioritized.
rental control is in place
in this city)
Neighborhood I) In example 1;a Sedona, 1) In question 7,someone
Impacts AZ homeowner shared suggested allowing
his experience with a unlimited rentals in
loss of community ith a areas not designated for
high concentration of residential use
STRs.
2) In example 3,a
community members
shared concerns about
speeding cars by STR
occupants.
Tourism Balance 1) In question 4,someone
asked about economic
impacts,and income
generated by platforms
for which scant data is
available.
Education/Outreach Notes:Since there are no specific public comments,the suggestions originate from the May
I and 15,2024 Planning Commission meetings
1) Commissioner Koan recommends and annual public outreach using social media
and other media sources to share the requirements regarding STRs.
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Life Safety Notes: Since there are no specific comments documented regarding this,comments originate
from the May 1 and 15,2024 Planning Commission meetings
1) Commissioner Coker stated that the egress window requirements may benefit
firefighters by enabling them to access the structures from the outside
2) DCD issues a permit with conditions to address specific life-safety requirements
see Attachment 1-Conditions addressing life safetyr uirements .
Other 1) Example 2-Family 1)In questions 3,staff 1)In example 5,someone
related impacts researched what someone asked the impact of
(forced to move in said about prices,namely proposed leases on corporate
high season) that Airbnb increases rentals like Jefferson
housing prices. A survey of Healthcare
the literature suggests that 2)In example 7,someone
this may be true. shared the Sedona offers
money if you provide short
term rentals
RECOMMENDATION:
Consider the outreach proposal and any specific areas of interest you may have regarding the existing
regulations.
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