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2015-0317 Council Agenda PACKET
CITY OF ASHLAND Important: Any citizen may orally address the Council on non-agenda items during the Public Forum. Any citizen may submit written comments to the Council on any item on the Agenda, unless it is the subject of a public hearing and the record is closed. Time permitting, the Presiding Officer may allow oral testimony. If you wish to speak, please fill out the Speaker Request form located near the entrance to the Council Chambers. The chair will recognize you and inform you as to the amount of time allotted to you, if any. The time granted will be dependent to some extent on the nature of the item under discussion, the number of people who wish to speak, and the length of the agenda. AGENDA FOR THE REGULAR MEETING ASHLAND CITY COUNCIL March 17, 2015 Council Chambers 1175 E. Main Street Note: Items on the Agenda not considered due to time constraints are automatically continued to the next regularly scheduled Council meeting [AMC 2.04.030.E.] 6:30 p.m. Executive Session in the Jury Room for the purpose of legal counsel pursuant to ORS 192.660(2)(h) 7:00 p.m. Regular Meeting 1. CALL TO ORDER II. PLEDGE OF ALLEGIANCE III. ROLL CALL IV. MAYOR'S ANNOUNCEMENTS V. APPROVAL OF MINUTES 1. Study Session of March 2, 2015 2. Business Meeting of March 3, 2015 VI. SPECIAL PRESENTATIONS & AWARDS 1. Annual presentation from the Tree Commission 2. Mayor's Proclamation of April 5 to 11, 2015 as Arbor Week in Ashland 3. Mayor's Proclamation of Culture of Peace Community 4. Presentation regarding 2015 potential drought plan VII. PUBLIC FORUM Business from the audience not included on the agenda. (Total time allowed for Public Forum is 15 minutes. The Mayor will set time limits to enable all people wishing to speak to complete their testimony.) [15 minutes maximum] VIII. CONSENT AGENDA 1. Minutes of Boards, Commissions, and Committees 2. Liquor license application for Aaron Glover dba The Organic Alcohol Co. COUNCIL MEETINGS ARE BROADCAST LIVE ON CHANNEL 9. STARTING APRIL 15, 2014, CHARTER CABLE WILL BROADCAST LIVE ON CHANNEL 180. VISIT THE CITY OF ASHLAND'S WEB SITE AT WWW.ASHLAND.OR.US 3. Recommendation for endorsement from the Public Art Commission for Main Street banner 4. Solid Waste and Collection Rate resolution 5. Request to increase and extend contract for Terra Survey-special procurement 6. Appointment of Danielle Amarotico to the Transportation Commission 7. Approval of MOU between the Ashland Police Department, Jackson County Sheriff's Department, and the Jackson County Sexual Assault Response Team 8. Approval of a resolution titled, "A resolution authorizing a loan from the Safe Drinking Water Revolving Loan Fund by entering into a financing contract with the Oregon Infrastructure Finance Authority" 9. Approval of an Intergovernmental Agreement for Lidar Data acquisition IX. PUBLIC HEARINGS (Persons wishing to speak are to submit a "speaker request form" prior to the commencement of the public hearing. Public hearings shall conclude at 9:00 p.m. and be continued to a future date to be set by the Council, unless the Council, by a two-thirds vote of those present, extends the hearing(s) until up to 10:30 p.m. at which time the Council shall set a date for continuance and shall proceed with the balance of the agenda.) None X. UNFINISHED BUSINESS None XI. NEW AND MISCELLANEOUS BUSINESS 1. Process for Implementing Welcome Signs Beautification project 2. Citizen Budget Committee appointments XII. ORDINANCES, RESOLUTIONS AND CONTRACTS 1. First reading by title only of an ordinance titled, "An ordinance amending Chapters 18.2.2, 18.2.3, 18.4.3, 18.4.7, and 18.6.1 of the Ashland Land Use Ordinance relating to definitions and accessory travelers' accommodations in various residential zoning districts" XI11. OTHER BUSINESS FROM COUNCIL MEMBERS/REPORTS FROM COUNCIL LIAISONS 1. Discussion of hanging flower basket program XIV. ADJOURNMENT OF BUSINESS MEETING In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Administrator's office at (541) 488-6002 (TTY phone number 1-800-735-2900). Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title 1). COUNCIL MEETINGS ARE BROADCAST LIVE ON CHANNEL 9. STARTING APRIL 15, 2014, CHARTER CABLE WILL BROADCAST LIVE ON CHANNEL 180. VISIT THE CITY OF ASHLAND'S WEB SITE AT WWW.ASHLAND.OR.US City Council Study Session March 2, 2015 Page 1 of 2 MINUTES FOR THE STUDY SESSION ASHLAND CITY COUNCIL Monday, March 2, 2015 Siskiyou Room, 51 Winburn Way Mayor Stromberg called the meeting to order at 5:30 p.m. in the Siskiyou Room. Councilor Seffinger, Rosenthal, Marsh, Morris, Lemhouse, and Voisin were present. 1. Public Input (15 minutes maximum) - None 2. Look Ahead review City Administrator Dave Kanner reviewed items on the Look Ahead. 3. Economic Development Strategy program and budget update Management Analyst Adam Hanks explained the Business Retention and Expansion Survey (BR&E) was one of the key projects for the upcoming biennium. The other key project was videos for the Business Resource Portal to drive marketing and outreach. Sandra Slattery, the executive director of the Ashland Chamber of Commerce added the BR&E started ten years ago through collaboration between the Chamber of Commerce and the City. The data from the 2012 study provided the information to build the Business Resource Portal. The surveys were confidential and conducted by an independent consultant who analyzed the data then published a final report for the Chamber of Commerce who in turn provided a report to the City. Only the consultant saw the raw data. Consultant services cost $35,000-$40,000. City Administrator Dave Kanner addressed the staffing resource allocation and explained there was no increase in staff. The budget would now accurately reflect Mr. Hanks' time with 25% for economic development, 35% in central services, 20% in electric, and 20% in water. The $50,000 under Immediate Opportunity Funds was a placeholder. Staff was looking into ways to revive the Green Business Challenge. The Immediate Opportunity Funds could go towards software that would support that challenge. The budget allocated up to $20,000 to jumpstart the Ashland Community Resource Center Job Seeker Program. If successful, Immediate Opportunity Funds could go to supporting that program as well. Another use of Immediate Opportunity Funds was the Rogue Community College (RCC) Entrepreneurial Scholarships that would provide funds to Ashland residents to reduce costs for entering into the training program. Avista put money into the program and could contribute or match finds for Ashland citizens interested in starting a business in Ashland. The business focused marketing and promotion for Ashland Fiber Network (AFN) services in alignment with AFN Business Plan was pending until AFN launched product and services. The Pre-development site expansion and growth evaluation for key employment lands with Ashland was not a high priority. It would take place incrementally. The concept involved a proactive pre-application that evaluated sites ready for expansion or probable expansion properties. Ms. Slattery provided background on the lack of middle educational training and the need for that training in Ashland. The Chamber of Commerce was looking into collaborating with Southern Oregon University (SOU) and RCC to determine specific skills required and bring in the necessary training. Funds could possibly come from the City and interested businesses. Council suggested applying Immediate Opportunity Funds for RCC Entrepreneurial Scholarships to the middle educational training program as it advanced. City Council Study Session March 2, 2015 Page 2 of 2 Ms. Slattery and Mr. Hanks clarified the City was not funding the Business Resource Portal or the Economic Dashboard. City contributions consisted of the video component and staff time instead of direct funding. The seven strategies in the economic development document were solid, the objectives worked well and staff was working through the actions. The document was set up for annual updates with a detailed review and revision every five years. Councilor Marsh suggested adding a Doing Business in Ashland link to the Business Resource Portal on the homepage of the City website. Council and staff discussed the homepage and possibly having a Doing Business in Ashland link for a six-month trial period. Councilor Seffinger was interested in information for careers and second careers for the older population. Councilor Voisin wanted the City to hire the SOU Research Center to conduct the next BR&E survey. Ms. Slattery met with the SOU Research Center and they did not have the capacity to work at the level required for the BR&E survey and maintain confidentiality. The BR&E survey required an independent, confidential economist. Even though the SOU Research Center participated on the Road Diet and Ashland Forest Resiliency projects, using students would not work with this particular survey. 4. Discussion of amendment to special events policy for Halloween parade City Administrator Dave Kanner explained Councilor Marsh had requested a discussion to establish the Halloween parade as a community event and exempt it from paying City expenses. Council could amend the special events policy and approve a resolution to waive fees for the parade during a Council meeting. Council agreed to add the amendment discussion to a future Council meeting. Opposing comment did not want to waive the costs and expressed concern the action would set precedence for future events. 5. Review of proposed Mayor/Council budget for 2015-2017 biennium City Administrator Dave Kanner proposed cuts to the Council budget that had increased 27% primarily due to health insurance by decreasing dues to various conferences, specifically the League of Oregon Cities. Of the $65,000 budget, $31,000 went to pay dues, the remaining covered meeting expenses, room rental fees, training, travel, lodging, and the State of the City celebration. Council discussed establishing one conference per year for each Councilor or selecting two Councilors to attend various conferences and report back. Some of Council was open to reducing the budget while others wanted to retain the level. One comment suggested breaking conferences down into line items for each conference. Mr. Kanner would forward conferences to Council they might be interested in attending. Meeting adjourned at 6:46 p.m. Respectfully submitted, Dana Smith Assistant to the City Recorder Ashland City Council Meeting March 3, 2015 Page 1 of 6 MINUTES FOR THE REGULAR MEETING ASHLAND CITY COUNCIL March 3, 2015 Council Chambers 1175 E. Main Street CALL TO ORDER Mayor Stromberg called the meeting to order at 7:00 p.m. in the Civic Center Council Chambers. ROLL CALL Councilor Voisin, Morris, Seffinger, Rosenthal, and Marsh were present. Councilor Lemhouse was absent. MAYOR'S ANNOUNCEMENTS Mayor Stromberg announced the annual appointment process for the various Commissions and Committees and the March 20, 2015 deadline to submit applications. APPROVAL OF MINUTES The minutes of the Business Meeting of February 17, 2015 were approved as presented. SPECIAL PRESENTATIONS & AWARDS Transportation Commissioner Joe Graf provided the annual presentation from the Transportation Commission. He noted projects in progress, ongoing review of traffic transportation related issues and upcoming projects that included additional crosswalks on North Main between Maple Street and Laurel Street. The Mayor's proclamation of March 8, 2015 as International Women's Day was read aloud. PUBLIC FORUM Huelz Gutcheon/2253 Hwy 99/Explained over several Public Forums he had introduced the Ashland Renewable Energy Acquisition Department and it's three de-carbonizing divisions that included a home energy upgrade program, a structural wattage learning center and the city policy procured server generators. Server generators were roof mounted solar panels or freestanding panel arrays ground mounted in yards or unused fields. The panels produced clean energy for up to 30 years with the buyer prepaying for the thirty years at the time of purchase. He shared several financing options designed to enable solar for every income bracket that he shared. The best City policy would be hiring an expert experienced in solar financing to determine the best methods. The City could also award the residential roof with the largest array a cash grant of 30% of the total installation costs and receive a prize for environmental leadership. Joseph Kauth/1 Corral Lane/Commented on the invasion of poison hemlock in the region. He had issues with the Road Diet and the speed bumps near the university had damaged his car. He expressed concern regarding the air quality of the area and opposed the Ashland Forest Resiliency project of slashing trees and covering them with plastic. It leeched into the soil and created lightning rods that attributed to the sharp increase of lightning strikes. Scott Green/no address available/Spoke regarding police misconduct in the community. o- Kristina Lefever/2359 Blue Sky Lane/Spoke regarding hanging baskets in the downtown area and encouraged Council to consider using more pollinator friendly plants for the baskets instead of petunias. CONSENT AGENDA 1. Endorsement of the AAUW Annual Spring Garden Tour for the purpose of hanging a banner 2. Approval of a resolution titled, "A resolution of the City Council of the City of Ashland allocating Ashland City Council Meeting March 3, 2015 Page 2 of 6 anticipated revenues from the Transient Occupancy Tax for the biennium 2015-2017 budget and repealing Resolution 2013-05" 3. Walker Safe Routes to School Sidewalk Project Update Councilor Voisin pulled Consent Agenda item #2 for discussion. Administrative Services and Finance Director Lee Tuneberg explained how the biennium total for small grants was determined. Language added under the "Non Tourism Portion" on the proposed Resolution was a direction from Council to staff. The budget would go through the normal budget process. Staff would present the proposed budget and identify allocations that included small grants and other areas as Council directed. Mr. Tuneberg clarified that there was no longer a percentage requirement and confirmed the total allocation was approximately $224,000. City Administrator Dave Kanner added Council could change that allocation amount. Mayor Stromberg and Councilor Marsh further clarified that small grant awards were now the same process used for Human Service grants. The City Administrator would propose an amount similar to the prior year instead of a percentage. Councilor Rosenthal/Morris m/s to approve Consent Agenda items. Voice Vote: all AYES. Motion passed. PUBLIC HEARINGS (None) UNFINISHED BUSINESS (None) NEW AND MISCELLANEOUS BUSINESS 1. Planning Commission report on master planning process Community Development Director Bill Molnar explained the Master Plan served as a guide and created certainty and predictability for future planning initiatives. The Planning Commission and staff focused on master plans for the North Mountain Neighborhood, the Croman Mill District, and the Normal Neighborhood Plan. Planning Commission Chair Richard Kaplan further explained how neighborhood master planning efforts resulted in the adoption of new comprehensive plan designations, zoning districts, and development standards for specific plan areas. The plan areas initially stood out because they were large tracks with limited development, lacking infrastructure with an interest from some property owners to develop. The Planning Commission thought a master plan had significant benefits because the plan took into consideration detail about environmental characteristics, neighborhood land use, and transportation patterns, more than the Comprehensive Plan. The Commission also saw gains in using special districts with tailored zones and design standards. The Planning Commission recommended examining the circumstances, benefits, and costs of doing the plan, and ensuring people understood the rationale of using unique zoning nomenclature before undertaking future master planning efforts. Additionally, it was important to involve neighborhood and community representatives, schools and other pertinent groups when identifying boundaries of the area. Initial agreement on plan goals and periodic review by the Council was also important since Council made the final decision of whether to adopt a master plan. Mr. Molnar addressed some of the process used regarding the North Mountain Neighborhood plan and turn around issues on Kestrel Parkway. System Development Charges (SDC) occurred at the end of the process and involved working with the Public Works Department and Capital Improvement Projects (CIP). Infrastructure went in first and it would not matter if a developer went bankrupt because SDCs were collected lot by lot as homes were built and did not create a burden on a future property owner. Plans were developer driven and development could occur in phases. The City was not responsible in any way. The master plan provided a big picture of how everything came together. If there was not a master plan, Ashland City Council Meeting March 3, 2015 Page 3 of 6 developers could proceed with a degree of development depending on site size. Developers were still responsible to install infrastructure regardless of the master plan. Planning Manager Maria Harris added it depended on what the market was doing. The start of a project may not be economically feasible but would be at a certain point. Staff addressed boundaries, and property owners not participating in a development. Reponses to each situation varied. Mr. Molnar confirmed a semi master plan was possible, each plan had varying levels of detail and provided examples. The master plans were transportation based and amendable. 2. Approval of a purchase and sale agreement with the Housing Authority of Jackson County for city-owned property at 380 Clay Street City Administrator Dave Kanner explained the City purchased the property in 2008 with the intention it would someday develop into affordable housing. The remaining issue was the Eastern Cottonwood tree on the property and the neighbors desire to preserve the tree. The sale agreement with the Housing Authority of Jackson County (HAJC) had a condition of the City obtaining a tree removal permit transferable with the property. The tree was considered a safety hazard resulting in the City erecting a fence around the tree's perimeter. Three arborists provided reports. Two stated the tree would live longer but drop limbs and branches while the third report said it would not drop limbs and branches. Councilor Voisin requested information that the sales and transfers of the property were supposed to generate $500,000 for the downtown parking and transportation fund. Staff would research the request and bring information back to Council. Albert Pepe/321 Clay Street/Explained there were over 300 homes off and on lower Clay Street. He provided background on three cottonwood trees originally on the property at 380 Clay Street. Damage caused the removal of one tree and another was removed to install a road for the Snowberry affordable housing units. An arborist had pruned and supported the remaining tree. To his knowledge, it was never a hazard to anyone and suddenly the City said it was a hazard. The neighborhood community thought the area was already crowded with homes. He supported what HAJC had done with Snowberry but thought it was in the best interest of the City and community to turn the property over to the Parks and Recreation Department. He thought the land could be a community garden or park. Ron Roth/6950 Old Hwy 99 South/Supported the work of Housing Authority as well as selling the property. He was not supportive of removing the tree. The cottonwood was a former Tree of the Year, and the largest cottonwood he had ever seen. Jason Elzy of HAJC explained they made two offers to the City. One contingent on the tree removal permit and the other was not. It was still possible to build 12-15 units on the property and retain the tree. He urged Council to search for a creative solution that could provide affordable housing and keep the tree alive. Removing the tree would create issues in the community. David Winn/2233 Villard/Shared his experience watching the tree during the past two windstorms and noted it handled the storms well. He was present when the core sample was taken and talked to the two people who conducted the core sample and both thought it was an extremely healthy three that could live another 200 years. He wanted Council to postpone any action that would remove the tree. Delores Nims/321 Clay Street/Supported low income housing. The cottonwood tree was 250 years old and was at odds with the Housing Authority. She requested the Council and HAJC explore alternatives to 380 Clay Street. She understood the City could sell two other parcels that might preserve the tree. The neighborhood wanted to preserve their beloved cottonwood. She did not understand the need for the fence and noted it was offensive and ugly. She referenced a petition that 65 neighbors signed to retain the tree. Mr. Kanner was unaware of any other properties for sale or discussions with HAJC on alternate locations. Councilor Voisin thought the Parks and Recreation Department owned the property mentioned during Public Ashland City Council Meeting March 3, 2015 Page 4 of 6 Testimony. There was also three acres on the other side of Snowberry for sale. Council should look at alternatives. Parks Director Michael Black clarified staff did have a conversation with property owners regarding the tree. They asked if the Parks Commission was willing to trade parks land scheduled for a dog park and other improvements adjacent to the YMCA Park for the property with the tree. The Parks Commission said no. The tree remaining there did not have the same value for parks land that the other property did. The tree did have issues regardless of its beauty, and age. He referred to earlier comment that the Parks and Recreation Department had a desire to maintain the property. If Council wanted to preserve the tree, the Parks and Recreation Department was willing to maintain the property. If they did maintain the tree they suggested having a barrier or signage to limit access under the tree due to the age of the tree, not the potential for falling limbs. Councilor Seffinger noted cottonwood trees could create allergic reactions in children. Councilor Voisin clarified the neighbors intended the full .97 acre for parks land, not just the area around the tree itself. Councilor Voisin motion to postpone the item until Council had the opportunity to look at alternatives that can be explored. Motion denied due to lack of second. Councilor Marsh/Morris m/s to approve a purchasing sale agreement with the Housing Authority of Jackson County for City owned property at 380 Clay Street. DISCUSSION: Councilor Marsh explained the tree would not fare well under public ownership. Arborists indicated the tree dropped branches. The tree needed private ownership to flourish. It was time to move forward. That did not mean anything would happen immediately. The City had to obtain a tree removal permit that required going through the Tree Commission, the Planning Commission and most likely the City Council. There was time for the community to come up with an alternative or land swap if they were interested. Councilor Morris questioned how private ownership would affect accessibility and liability. Mr. Kanner clarified the City would apply for the tree removal permit, not HAJC. Councilor Voisin questioned if Council needed a second motion to address the tree removal. City Attorney Dave Lohman did not think it was necessary to have two motions. City Recorder Barbara Christensen asked Councilor Marsh to clarify the motion because it did not include the tree removal process. Councilor Marsh withdrew the motion. Councilor Marsh/Morris m/s to approval of a sale agreement with the Housing Authority of Jackson County for property at 380 Clay Street and direct staff to initiate and submit a tree removal permit application. DISCUSSION: Councilor Rosenthal explained Council was in the unfortunate position of having to choose between an old tree and an increase in affordable housing. He personally did not want to see the tree removed but understood the need to do what was best for the community. Affordable housing was a Council goal and a long-term community goal. He would support the motion. Councilor Seffinger knew that some cottonwood trees were removed in neighborhoods because of children's allergies and asthma. Affordable housing was an important goal for the community and the area was appropriate for children because of the location. Councilor Voisin explained calling the tree old and dangerous was a stereotype. There were City trees in the community with the same issues. This cottonwood was Tree of the Year 2014. Ashland was a Tree City USA and protected trees. She observed over the past year the City was not holding to the promise of protecting the trees and cut some down they should not have. She strongly supported affordable housing and expressed concern the City had not looked at alternatives. Affordable housing was important and so was this tree. She would not support the motion and urged Council to vote against it as well and work to find a solution with the community. Ashland City Council Meeting March 3, 2015 Page 5 of 6 Mayor Stromberg noted there were instances where a tree needed to be removed to achieve a public purpose. There was a need to resolve the issues of trees on public property where there is a reason to remove them. Acquiring the tree permit would entail a long process with hearings, discussions, public input, and recommendations to the Council. There was time for the people who supported retaining the tree to find solutions. Roll Call Vote: Councilor Rosenthal, Morris, Marsh, and Seffinger, YES; Councilor Voisin, NO. Motion approved 4-1. 3. Allocation of anticipated TOT revenue for city capital projects to provide for permanent welcome signs Councilor Rosenthal/Seffinger m/s to approve of allocating $24,000 in anticipated 2016-17 TOT revenue for city capital projects for permanent welcome signs. DISCUSSION: Councilor Rosenthal explained the Welcome to Ashland signs were not permanent and needed replacing. He looked forward to seeing what the Public Arts Commission would produce. Councilor Seffinger added she participated on the Downtown Beautification Improvement ad hoc Committee, the welcome signs were an important goal for the Committee and would enhance the city. Councilor Marsh noted some of the items on the list could fold into plans coming from the Downtown Transportation Committee to redo sidewalks. Council would need to determine the allocation process for reviewing recommendations and spending the balance of the money. Roll Call Vote: Councilor Seffinger, Morris, Voisin, Marsh, and Rosenthal, YES. Motion passed. ORDINANCES, RESOLUTIONS AND CONTRACTS 1. Second reading by title only of an ordinance titled, "An ordinance establishing guidelines for film and media productions and repealing AMC 6.36" Councilor Rosenthal/Morris m/s to approve Ordinance #3106. Roll Call Vote: Councilor Marsh, Rosenthal, Voisin, Seffinger, and Morris, YES. Motion approved. 2. Approval of a resolution titled, "A resolution adopting fees for film and media production and repealing resolution 1984-45" Councilor Morris/Marsh m/s to approve Resolution #2015-05. DISCUSSION: Councilor Marsh thought the fees were fair and sent a positive message to filmmakers. The City was not making money from the process. Roll Call Vote: Councilor Rosenthal, Marsh, Seffinger, Morris and Voisin, YES. Motion approved. 3. Second reading by title only of an ordinance titled, "An ordinance amending Ashland Municipal Code Chapter 2.04.030(B)(1), Agendas" Councilor Voisin/Rosenthal m/s to approve Ordinance #3107. Roll Call Vote: Councilor Morris, Seffinger, Rosenthal, Marsh, and Voisin, YES. Motion passed. OTHER BUSINESS FROM COUNCIL MEMBERS/REPORTS FROM COUNCIL LIAISONS 1. Discussion of City funding for SOU aquatics facility Councilor Rosenthal explained Representative Peter Buckley acquired funds to help replace the aquatics facility at Southern Oregon University (SOU). The funds covered approximately $3,000,000 with $2,200,000 currently unfunded. SOU needed a response on whether the community and City would collaborate on the remaining funding by mid March. The Mayor, City Administrator, Parks Commission Chair, and the Parks Director had several discussions with the Executive Director of the YMCA in lieu of a subcommittee the Parks Commission authorized. Ashland City Council Meeting March 3, 2015 Page 6 of 6 Parks Director Michael Black explained the YMCA expressed interest in discussing options but were not in the position to make commitments at this time. Mr. Black and City Administrator Dave Kanner met with the superintendent of the Ashland School District and two members of the Board of Education regarding interest in participating in a feasibility study or master plan. It was a three to five year process if they had the funds. They discussed adding a bubble over Daniel Meyer Pool. Although the Daniel Meyer Pool could be not be used for competitive needs, teams could use it for practice. The cost to install a bubble over the pool was approximately $90,000. The Daniel Meyer Pool house would require improvements to add air and heat to the building for a total cost estimate of $120,000 including the bubble for the pool. This would not include maintenance. The Ashland School District thought it was feasible for up to five years. Mr. Black was waiting to hear from the swim teams. It would not solve the problem but provide time to research options and funding. Council majority did not think there was enough time to process the infonnation and make a decision involving $2,200,000. There were operating costs to consider as well. Alternately, there was not resounding support from the Parks Commission nor was there much enthusiasm from the users. Other Council comment wanted to determine regional interest in the pool, and have staff identify revenue streams to generate the $2,200,000. Another comment wanted information regarding private funding throughout the region. Mayor Stromberg supported a competitive cool water pool. He thought the Parks Director, City Administrator, Parks Commission Chair, and himself should meet with YMCA board members and gauge their interest in taking this on. Councilor Voisin/Marsh m/s to ask the City Administrator to write a letter of thanks to Representative Buckley for his efforts. Voice Vote: all AYES. Motion approved. Councilor Marsh added an item to the next Study Session to discuss a potential watershed utility fee to fund the Ashland Fire Resiliency (AFR) expenses. The fee would replace the .09 cents on property tax. Councilor Rosenthal wished the Southern Oregon University wrestling, men's basketball, and women's basketball teams the best of luck at their respective national tournaments. Councilor Voisin noted April 15, 2015 was Pay Equity Day for Women and the American Association of University Women (AAUW) would have several events. She went on to note the duties and efforts of the Assistant to the City Recorder Dana Smith. City Administrator Dave Kanner announced Steve Mason from the Wise Project would attend the Study Session on March 16, 2015. ADJOURNMENT OF BUSINESS MEETING Meeting adjourned at 9:50 p.m. Barbara Christensen, City Recorder John Stromberg, Mayor MY_ PROCLAMATION J. Sterling Morton proposed to the Nebraska Board of Agriculture in 1872 that a~ ~ special day be set aside for the planting of trees. ° ■ This holiday, called Arbor Day, was first observed with the planting of more than ° a million trees in Nebraska. _ Arbor Day is now observed throughout the nation and the world. < J~~ ° boo Trees can reduce the erosion of topsoil by wind and water, reduce heating and cooling costs, moderate the temperature, clean the air, produce oxygen, and provide a habitat for wildlife. ■ Trees increase property values, enhance the economic vitality of business areas, fJ, beautify our community; and are a source of joy and spiritual renewal for many. Trees are a renewable resource giving us paper, wood, fuel, and countless other °060 O° wood products. Ashland has been recognized as a Tree City USA by the National Arbor Day ~ Foundation for 30 years and desires to continue its tree-planting ways. ° K NOW, THEREFORE, the Mayor, on behalf of the citizens of Ashland, hereby ➢ Q proclaims April 5 to 11, 2015 as o' ARBOR WEEK IN ASHLAND and urges all citizens to support efforts to care for our trees and woodlands and to °o support our City's community forestry program. I further urge all citizens to plant trees to gladden the hearts and promote the well-being of present and future SIN generations. PCB Q Dated this 17th day of March, 2015 r~ Q John Stromberg, Mayor 6 Barbara Christensen, City Recorder 1 1 AP r o vc-fie "~~''v ~~a'u a cas-2 CGtI`Ono o o a o o o o $ 8 a° n 00 °°xa PROCLAMATION Culture of Peace Ashland aspires to be a city marked by mutually respectful and caring relationships among all its residents and between its residents and the natural ©°environment on which we depend. In sum, we wish to manifest a Culture of ° Peace. ° The past efforts of its residents have established a strong sense of community and _ an attentiveness to our natural environment. To maintain and enhance those 0 m°o relationships as we face our present challenges and prepare to handle future QQ challenges will require conscious, continuous, and concerted efforts on the part Jlo « o of the entire city. ■ Such efforts begin in the daily practice of Ashland's businesses, professions, l ➢ educational institutions, and religious, civic, and arts organizations, as well as the Q work of the City of Ashland government. t z, °°b ■ Mobilizing our community to develop a culture of peace pay be furthered by a a°° Q representative body that holds the vision, is alert to the challenges to its ti actualization, and is knowledgeable about the resources Ashland possesses. Coil NOW, THEREFORE, the City Council and Mayor of the City of Ashland, strongly f a Culture o P encourage residents to work toward development o of Pence community, and pledge to lend appropriate encouragement and support to that effort. Dated this 17th day of March, 2015 Q° ~(j 11 ( John Stromberg, Mayor Barbara Christensen, City Recorder P0 01) c ° G~ o tv G,, c✓ G a \J C^./ °y !:3 9`a ham/ P a tv G 9 fy ~7 0 7 4111 !/~~~nJ/ ~~'QJl ~,,I~~' ~ ~~@J ,r-:.d ~g©gg ~ r r, ~ •o ~1A~ 41 ~d.A~ ` ' ~,4~~ L l,'~ ~:~1~~~1,,~Q~J 1~4 r L.~Q/J L7 CITY OF -ASHLAND Council Communication March 17, 2015, Business Meeting 2015 Potential Drought Plan FROM: Michael R. Faught, Public Works Director, Public Works Department, faughtm@ashland.or.us SUMMARY This is an informational communication updating the Council on a plan for a potential drought. The current snow pack is similar to 2014 and staff is preparing for a potential 2015 drought. Staff will maintain a full reservoir for as long as possible by adding TID and TAP water as needed. The community will be asked to reduce its water use to 4.5 million gallons per day (mgd). The Water Conservation division will assist customers with ways to reduce water use and as a last resort the City will implement the water waste and curtailment steps as outlined in the municipal code. BACKGROUND AND POLICY IMPLICATIONS: Current snow pack levels at the Mount Ashland switchback (as recorded on the Natural Resources Conservation Service web site) are only slightly better this March (16 inches) than in March 2014 (12 inches). Moreover, both lakes that supply water to TID are less than half full: Howard Prairie is 43% full; Hyatt Lake is 37% full (see attached, `US Bureau of Reclamation, Pacific Northwest Region Bear Creek and Little Butte Creek Basins'). Staff is preparing for a drought in the event that the May 1St snow pack is not sufficient to meet Ashland's summer water supply needs. The first step will be to ask Ashland residents to voluntarily reduce water usage to 4.5 mgd. The specific strategy will be to keep Reeder Reservoir full (see `2014 Drawdown Curve' graph) for as long as possible, augmenting with TID and TAP water as needed. The first step of the plan is to start adding as much as 2 mgd of TID water when the Ashland Creek water supply is no longer able to meet demand. If the combination of Ashland Creek and TID water is not sufficient to keep the reservoir full, up to 2.13 mgd of TAP water will be added to the water distribution system. As a reminder, if there is a need to use 2 mgd of TID water, no TID water will be sent past the pump station at Park Estates, and downstream TID customers will not receive TID water. If additional TID water is needed, the remaining sections of the TID water canal (between Walker and Park Estates) will also be diverted to the plant. If this occurs, then those TID irrigation customers will not be allowed to use TID water for irrigation purposes. Additionally, Public Works crews are also impacted when TID water is added. The plant must be staffed 24/7 for the first couple of weeks to fine tune the water treatment process, and water distribution crews must work overtime, as required, to maintain water quality within the water system. The reservoir graphs (below) provide a daily look at Ashland's water supply over the last couple of years. The red line represents the theoretical reservoir use rate necessary to adequately meet Ashland's Page I of 4 CITY OF -ASHLAND water supply needs. The blue line represents the current reservoir level. If at any point the demand on Reeder Reservoir drops below the theoretical drawdown curve as shown in the chart below, staff is prepared to implement the water curtailment strategies. 2014 drawdown curve 144 80 60 40 20 2015 drawdown curve 100 $0 60 40 20 7 Page 2 of 4 CITY OF -AS H LA N D The water waste and curtailment steps, as outlined in the municipal code, will be implemented if voluntary water usage reductions, TID, and TAP all fail to keep the reservoir full. The following chart provides a summary of allocations at each stage of curtailment. i k Stage i • f f Government Feet Agencie 1 3,600 26,928 20% 2 2,500 18,700 30% 3 1,800 13464 40% 4 900 6,732 50% } Additional Drought 2015 Actions • Determine if restrictions on internal trees, shrubs or annual plantings should be restricted; • Add a `Drought 2015' section to the City's website - http://ashland.or.us/Sectionhidex.asp?SectionID=524; • Place blue lawn signs that say "Use water wisely" in the public right-of-way throughout town; • Julie Smitherman, conservation specialist, and Mike Faught, public works director, will provide public presentations on what the community can do to conserve at local civic clubs, the Mayor's town hall show, and interviews with the local media; • Activate the multi-departmental water curtailment committee. Conservation As our customers become aware of the severity of the 2015 drought, the most common question is usually "what can I do to reduce my water use?" Fortunately the city has a robust water conservation program, so when asked this question, staff will direct them to our water conservation specialist for specific short and long term water conservation recommendations. The water conservation team offers our water customers a free irrigation system and indoor water use evaluation. In most cases, this detailed evaluation of individual systems will uncover ongoing water Page 3 of 4 pra CITY OF -ASH LAN D waste (bad sprinkler heads, leaking faucets or toilets etc). In addition, the city provides free water efficient shower heads, faucet aerators, and soil moisture meters that can help our customer reduce water consumption. FISCAL IMPLICATIONS: The 2014-2015 revenues are estimated to be $300,000 less than what was projected in the biennium budget. Staff had the foresight to cut an equivalent amount of capital projects in October to offset the loss in revenue. In addition, 2015 revenue projections are based on 2014 revenues. STAFF RECOMMENDATION AND REQUESTED ACTION: N/A SUGGESTED MOTION: N/A ATTACHMENTS: US Bureau of Reclamation, Pacific Northwest Region Bear Creek and Little Butte Creek Basins Page 4 of 4 PrIft US Bureau of Reclamation, Pacific Northwest Region Bear Creek and Little Butte Creek Basins 0310912015 EqOe Q $ 0 u C'~ Ls L~«tit 664811560 48 { t'@ 420'4 Fu II LBCfr '1 c G 17 cfs f3Cfd 1 97 c A41 FSHb 17 cis i1 {7 4cfs P_5lG C?cfs 4 r to 814670 RN Full Gfi+? 2)c ts Fish take am 75 cfs 4 R2p 836 MF170 59 Os Me r t ~r SLaO 15 c DKO 6 cf: 41 OCTO 63 cft g f 7 &ASO 29 cft Howard Praine 3 26197160000 S SA 22 cft 4 Full Roque 7 Gay EMI 2 cfs I~W7 r HuYtt E, rant EG90 7 cfs 62 cft H6M fu 15200 2725=39000 ?0% Full CITY OF ASHLAND Council Communication March 17, 2015, Business Meeting Solid Waste and Collection Rate Resolution FROM: Adam Hanks, Management Analyst, Administration - adam@ashland.or.us SUMMARY In October of 2013, Council approved a new franchise agreement with Recology Ashland (Franchisee) for Solid Waste and Collections within the city limits of Ashland. The new franchise agreement included a rate increase methodology intended to provide the Franchisee an annual operating margin range of between eight and twelve percent. Recology Ashland has provided documentation that the projected 2015-16 rate year operating margin will fall below the eight percent operating margin range which triggers the Consumer Price Index (CPI) based rate increase to get back within the operating margin range. To meet the franchise agreement service rates and fees requirements set forth in Section 5.8 of Ordinance 3090 and Administrative Operations and Rules Resolution 2014-23, the attached resolution implements a 2.4% rate increase based upon the CPI-U Portland-Salem index. BACKGROUND AND POLICY IMPLICATIONS: The inclusion of a rate increase methodology in the franchise agreement and associated rate resolution was a key component of franchise development process. The goal was to create a mechanism with clear and objective criteria to ensure that the solid waste franchisee was able to maintain a reasonable operating margin over the life of the franchise agreement. To achieve this goal, as well as a parallel goal of rate stability for solid waste customers, the franchise agreement included a rate increase provision designed to trigger smaller, CPI based adjustments to stay within the agreed upon operating margin range of eight to twelve percent. This provides the franchisee with relative revenue stability and provides the customer with assurances that rate increases (if warranted) will be smaller and less of an impact from year to year. As detailed in the attached Recology Rate Application spreadsheet, the adjusted fiscal 2013-14 operating margin fell below the eight percent margin (5.5%). When the 2.4% CPI is applied to the projected 2015-16 rate year, the operating margin falls back in line with the range at 9%. COUNCIL GOALS SUPPORTED: N/A Page 1 M-7 I~, CITY OF -AS H LAN D FISCAL IMPLICATIONS: Per the attached documents from Recology Ashland, the CPI increase of 2.4% equates to a $.44 per month ($5.28 per year) increase for a standard single cart subscription service. STAFF RECOMMENDATION AND REQUESTED ACTION: Staff recommends approval of the 2.4% CPI-U (Portland-Salem) rate increase to maintain compliance with the existing Solid Waste and Collections franchise agreement with Recology Ashland. SUGGESTED MOTION: I move to approve the attached resolution implementing a 2.4% rate increase for solid waste and collections services consistent with the existing franchise agreement. ATTACHMENTS: Draft Resolution adopting new Solid Waste and Collections service fees CPI Rate adjustment request - Recology Ashland, February 27, 2015 Rate methodology related sections of Ordinance 3090 and Resolution 2014-23 of 2 Pau') RESOLUTION NO. 2015- A RESOLUTION MODIFYING SOLID WASTE FRANCHISE RATES AND FEES RECITALS: A. The Solid Waste and Collections franchise agreement adopted by City Council as ordinance 3090 and associated Administrative Operations Standards and Rules most recently adopted by resolution 2014-22 provide a methodology for annual service rates adjustments. B. The City concurs with the documentation provided by Recology Ashland (Franchisee) that the rate increase provision of the ordinance and resolution dictates the approval of a service rate increase of 2.4% based on the franchise established Consumer Price Index - All Urban Consumers (Portland-Salem) THE CITY OF ASHLAND RESOLVES AS FOLLOWS: SECTION 1. Effective April 1, 2015, Resolution 2014-22 is repealed in its entirety. SECTION 2. Effective April 1, 2015, solid waste and collection service rates increase by 2.4% as detailed in the attached service rate table. This resolution was duly PASSED and ADOPTED this day of , 2015, and takes effect upon signing by the Mayor. Barbara Christensen, City Recorder SIGNED and APPROVED this day of , 2015. John Stromberg, Mayor Reviewed as to form: David H. Lohman, City Attorney Resolution No. 2015- Page 1 of 1 l Recology Ashland WASTE ZERO Dave Kanner, City Administrator City of Ashland 20 East Main Street Ashland, OR 97520 February 27, 2015 Dear Mr. Kanner: Pursuant to Paragraph C (1) of Attachment A, City of Ashland Resolution No. 2013-32, we are formally submitting our request for a CPI rate increase of 2.4%, to be applied equally across all rate structures. This request is based on the most recent Consumer Price Index-All Urban Consumers-All Items- Portland-Salem (CPI-U). A copy of the most recent report, along with our accompanying financial statement and projections for 2015, is enclosed with this letter. The proposed CPI increase would become effective April 1, 2015, and would remain in effect for one year. This rate increase amounts to an increase of $.44 (44 cents) per month for a single-cart subscriber. Please let us know if you have any questions. Sincerely, seven J. ~Fa ion, eneral Manager ecology Ashland Inc. Encl. Cc: Tom Norris, Derek Ruckman, Adam Hanks 1701 Oak; Street Ashland, OR 97520-1804 ` T: 541.482.1471 recologyashlandsanitaryservice.corn Are t Y-°, a.ti~t3 :_anlt~arr} Bureau of Labor Statistics Data Page I of 2 foil.. us 71 11~ Search BtS,gov • Data Toois . Releases Databases, Tables & Calculators by Subject FONT SIZE:( Change Output From: 2W4 To: 2p14 Options: F include graphs F include annual More Formatting OotionsmW averages Data extracted on: February 26, 2015 (12:13:00 PM) Consumer Price Index - All Urban Consumers Series Id: CUURA425SAO Not Seasonally Adjusted Area: Portland-Salem, OR-WA ltem: All items Base Period: 1982-84c100 Download: W xlax A rMa _ Year San~Feb Marp t X1 ] 0 n'Ad Au ) ~ q J Sep Oct Nov Dec; Annual ! HALF1 I HALF2 2004 191.1. 189.8 192.5 2005 _ i 196.0 _ 194.5 197.5 2006 201.11 199.8 202.5 2007 208.556 `206.$53 210.460 2008 1215.389 216.159 2009 215.647' 214.102 217.191 2010 ; 1218.344217.508 219.179 2011 i 7H4-.s90 223.105 226.077 - 201,2! 229.779 228.746 230.811 2013 " 235.528'233 .735 237.3 2014 - 241.215 1239.751 242.679 12-Month Percent Change Series Id: CUURA425SAO Not Seasonally Adjusted Area: Portland-Salem, OR-WA Item: All items Base Period: 1982-84=100 Download: Mrelax Year ]an:Feb Mar [Apr May 3un`3u1 Aug~5 Oct Nov Dec;Annua11HALFiHALF2 2004 2.6 2.0 3.2 2005 2.6 2.5 2.6 2006! 2.6 2.7 2.5 20071-_~----- 1__...J i34 391 2008 i 3.31 3.9 2.7 2009 0.1 -0.2 0.5 2010 1.3 ° 1.6 019 2011 2.9 2.6 3.1=- 2012 - 2.3 2.5 2.1 2013 2.5 2.2 2.8 '2014: 2.4 2.6 2.3 http://data.bis.gov/pdq/SurveyOutputServlet 2/26/2015 9 N to N N N O m O n N w m o et n m m e-1 O N 0D 0 N M M a 00 00 O ln+l a a n h b c to N w o Lo H O w o Ln v w w to h to w h .4 to O M W 00 O w h w vi 0D 00 d' rt CO O O ul st to N O 00 N N O tt' r1 O to V7 Ili N w N C' m Oj > d e t6 v m' 0 r r, 6 O' 'T 00 m e N m N M tD' M M N '4 0) D O m O a, H N 0D 00 ^ m h 0 N to 00 n kD .-I e-1 w H It N N M N M m m cc m m ri m c w ° L aw 0) i~pmhNNfim mrvtimmm r, 0DVimp o IM sa t. o n to m v h w w w rv w to o w o N w H %t H to 00 (O H c-1 00 N m m h N h m' ItH N N V H w M O n toV' 'tY' Ct H C N. m CO Lnn V N .ti w a-I Q V .-i .ti O m QN N a 4 U d H ,do\ N N N tD N M 01 H r,'1 00 O 00 H N In tD 01 H 'i al n QI w h m M 00 O -It O tt N m 00 07 '4 LD Ct n w N 0 .-1 N N 00 O 0) 4 w tt M p m a Vl 00 m m n M n r4 00 00 O w It C ~~O}} h H m N h n N N m N h 1' ~ m H M tD Ol H h st cD u I tID m o d' m m r r . 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Cr' c7 M o a s to d ro m ° C w 6 a w d T; w E v cD 3 w 5 4 va c y w s M .0 c v w 'N w c O m u to w °u ' ar 0! a~i y OL n u •y :v c i_+ m S m a w ul ° y C a' a CL rQ7i w tY 0 ~ w It tw n cc to m CC 0) LL CO V a co 1= 0 1 ° Dec O u 0° ~ O v c m r C a E 4 a~ h A d C LL i { 3) A showing that the proposed Assignee meets all City criteria for the grant of a Franchise as enumerated in this Ordinance. 5,8 Establishment and Modil;cation'of Service Rates and Fees Except as set forth herein, the City Council may review and set rates on an annual basis by Council resolution that considers the following goals: i 1) Rates shall be established to the greatest extent practicable on a cost of service basis based on the ordinance established cost allocation methodology. 2) Rates shall be adjusted annually by Council resolution equal to the percentage change in the January to January Consumer Price Index for All Urban Consumers (GPI-U) but not to exceed the twelve percent operating margin cap. The City Administrator or designee shall certify the CPI-U rate in writing to Franchisee by March I of each year to initiate the rate resolution. 3) Rates shall be adequate to provide an Operating. Margin equal to ten percent (10%) of Franchise-wide Gross Revenues; however, the City shall not be required to change rates if the expected Operating Margin in the next future year falls between eight and twelve percent of Gross Revenues. The ten percent target return on Gross Revenues is ! considered sufficient to reflect the level of business risk assumed by the Franchisee, to allow investment in equipment, and to ensure quality collection service. Accordingly, the City shall have the authority to commission audits, reviews, or analysis of Franchisee Annual Reports to validate submissions. The expected Operating Margin in a future year would incorporate expected inflation factors, and the effect of known or expected increases or decreases in expenses or revenues. The rates charged by Franchisees shall conform to the most current Council resolution. Prior to implementation, the Council must approve any interim rate for services not included in the current resolution. i If the Franchisee notifies the City-in writing that they believe a material change outside the Franchisees' control has occurred, and the change will have an adverse effect on operating margins, such that the next future year operating margins will be less than eight percent, a material change will be deemed to have occurred. At that time, the City may undertake any type of review it finds necessary to validate the existence of the material change and estimate its effect on the operating margin. If the results of the review are such that no rate adjustment is warranted, persons requesting the review shall reimburse the City for reasonable costs incurred ? during the investigation at the time the next payment of franchise fees is due. If the City believes that a material change has occurred that will result in next future year operating margins falling under eight percent or over twelve percent, the City may undertake an abbreviated rate review at its own expense. I Ordinance No..7090 Page 15 of 21 i J i I CITY OF Attachment A -,SH LAND City of Ashland Solid Waste Franchise Administrative Operations Standards and Rules A. ADOPTION AND REVISION OF STANDARDS AND RULES The following standards and rules are hereby established by resolution of the City Council to set and maintain service levels for the efficient operation of a solid waste management service and collection franchise within the City of Ashland. Revisions to these standards and rules shall be approved by resolution of the Council. B. ENFORCEMENT OF STANDARDS AND RULES Upon discovery of violation or lack of adherence to these Standards and Rules, the City Administrator or designee shall inform Franchisee in writing of the nature of the violation and provide reasonable time for response from Franchisee. Should both parties fail to mutually resolve the matter, the City Administrator may pursue enforcement of identified violation as a general penalty of section 8.2 of Ordinance No 2013-24!~& C. SERVICE RATES AND FEES 1. Subject to the provisions of Section 5.10 of Ordinance No. 2013-rates in place upon the effective date of Ordinance No. 2013-30?gas shown in exhibit A, shall remain in effect until April 1, 2014. On April 1, 2014, and on April 1 of each year thereafter, rates for all services shall increase by a percentage equal to the most recent Consumer Price Index - All Urban Consumers - All Items - Portland - Salem (CPI-U), January-to-January, as determined by the U.S. Bureau of Gabor Statistics, except that in no case shall rates automatically increase by more than 5%. Should CPI-U increase by more than 5%, the Franchisee and City shall confer in good faith to determine whether the Franchisee is entitled to receive an increase larger than 5%. Should CPI-U be 0% or less than 0%, the Franchisee shall not be entitled to any rate increase, For purposes of calculating rate increases, CPI-U percentages shall be computed to the first decimal place. 2. Subject to the provisions of Section 5.10 of Ordinance No. 2013,50fo, Franchisee may request an adjustment of rates in excess of CPI-U. Such request City Administrator no earlier than February shall be delivered to the 15 and no later than May 15 of any calendar year. in determining whether to grant such rate adjustment, the Council may consider, but is not limited to, the following factors: a. Rates charged for collection service in other cities in Oregon; b. The most recent January-to-January (CPI-U); i Rules - I II i i CITY OF ASHLAND c. Costs and revenues associated with providing the opportunity to recycle and the ability of a rate structure to encourage recycling; d. A minimum rate sufficient to provide a reasonable rate of return, ; e. The anticipated change in the cost of providing the service; f. The need for equipment replacement and the need for additional equipment to meet service needs and to be in compliance with federal, state and local law; g. Increase in population or increase of intensive development within the service area. 3. Rates charged shall be those set as provided herein. Nonscheduled services may be provided at the reasonable cost of providing the service. 4. Franchisee shall bill and collect on a current billing basis. When Franchisee' has experienced collection problems on a particular account, other billing methods may be required. Such billing procedures will be subject to approval by the City and will be reasonable business practice. 5. Franchisee may charge a starting charge to any customer who has been previously terminated for failure to pay for service. 6. Rates shall be uniform or uniform within zones or classes of service. 7. Nothing in the above section shall prohibit City from requiring qualified senior citizen discount rates. 8. Franchisee may require the owner of rental or leased premises to accept responsibility for the payment for service to such facilities as a condition for providing such service. D. MANDATORY SERVICES Franchisees shall offer the following solid waste management and collection services, subject to the limitation under "Refusal of Service." A Franchisee that does not comply has 10 days from a date of infraction to accommodate the customer request with an equivalent level of service at or below the published rates for the requested service. 1. Residential Curbside Collection Solid Waste, monthly subscription Solid Waste, customer controlled pick-up Yard Debris Co-mingled Recycling Glass Recycling 2. Commercial Collection Rules - 2 i CITY OF ASHLAND Council Communication March17, 2015, Business Meeting Recommendation for Endorsement from the Public Art Commission for Main Street Banner FROM: Ann Seltzer, management analyst, seltzeragashland.or.us SUMMARY The Public Art Commission (PAC) recommends the City Council endorse Southern Oregon Arts and Research (SOAR) which will occur on the SOU campus in May. Ashland Municipal Code 2.10.090 states "proposals by boards and commissions for endorsement or sponsorship must receive approval by the City Council." A City endorsement of SOAR allows SOAR to hang a banner over Main Street. BACKGROUND AND POLICY IMPLICATIONS: On February 20, 2015 representatives from SOAR attended the Public Art Commission monthly meeting requesting endorsement of the SOAR event. The PAC voted in favor of the endorsement and is now forwarding their recommendation to the City Council for approval as is required. The PAC believes the SOAR event has a direct connection to the purpose of the Public Art Commission (AMC 2.17) which reads in part: "...the arts are an important part of the cultural and economic life of the entire community of Ashland and enrich the participants in the arts as well as those who observe them. The Public Art Commission will assist organizations and individuals to make arts a more important part of the city..." City endorsement of SOAR allows SOAR to hang a banner over Main Street. The Oregon Department of Transportation Guidelines for Banners Located on State Highway Right-of-Way requires an event be sponsored by a city, county or state agency. COUNCIL GOALS SUPPORTED: 3. Support our community partners FISCAL IMPLICATIONS: None STAFF RECOMMENDATION AND REQUESTED ACTION: Staff recommends approval. Page 1 of 2 ~r, CITY OF ASHLAND SUGGESTED MOTIONS: I move to endorse Southern Oregon Arts and Research as recommended by the Public Art Commission. ATTACHMENTS: Letter from SOAR Page 2 of 2 so January 15, 2015 City of Ashland Public Arts Commission c/o Ann Seltzer 20 East Main Street Ashland OR 97520 Southern OREGON Subject: Request for Endorsement of Southern Oregon University's UINI'VERSITY SOAR 2015 Hi Ann. Happy New Year to you. As you may recall from previous years, Southern Oregon University again seeks the endorsement of the Public Arts Commission for our annual Southern Oregon Arts & Research (SOAR) event taking place May 11th - 15th on the SOU Ashland Campus. Endorsement from the Public Arts commission will allow SOU to seek approval to install a banner across Main Street in early May. The banner will serve to inform the community about the event and heighten awareness of the partnership between the City of Ashland and SOU. SOAR showcases the extensive research and artistic activity of SOU faculty and students. Last year, 386 presenters conducted 116 poster sessions, 42 podium presentations, 22 panels and symposia, 6 exhibitions, and 13 performances. Admission and parking are free and we encourage community members to attend. The purposes of SOAR are consistent with the values and goals of the Ashland City Council, particularly those for education and economic development, as well as the mission of the Public Arts Commission. SOAR provides an opportunity for students, faculty and members of the community to interact and experience the arts as part of Ashland's cultural and economic life. It celebrates the vitality of the arts in Ashland and demonstrates how SOU contributes to the cultural, intellectual, and artistic vitality of the region. I e-ailed Margaret Garrington a similar message as I was told she is the current chair. I also wanted you to be aware of the request and provide any needed guidance. Thank you in advance for your consideration. cerely, Grants & Sponsored Programs 1250 Siskiyou Boulevard i i Ashland, Oregon 97520-5045 - Deborah d'Este Hofer T; 541.552.6662 F: 541.552.6115 • • • i,. ~•TM Minutes for the Conservation Commission January 28, 2015 Page 1 of 4 MINUTES FOR THE ASHLAND CONSERVATION COMMISSION Wednesday, January 28, 2015 Siskiyou Room, 51 Winburn Way 1. Call to Order Mark Weir called the meeting to order at 6:01 p.m. in the Siskiyou Room. Commissioners Bryan Sohl, Shel Silverberg, Jim McGinnis, Risa Buck, Jim Hartman and Councilor Rich Rosenthal were present. Staff member Adam Hanks was present. Commissioners Thomas Beam, Marni Koopman, and Roxanne Biegel-Coryell were absent. 2. Consent Agenda Buck/Silverberg m/s to approve the minutes of December 17, 2014. Voice vote: All ayes. Motion passes. 3. Announcements The next commission meeting will be held on February 25. The climate and energy subcommittee will meet on February 18th from 2-4 at the SOU library. Buck let the group know that SOU will be hosting the movie, Bag-It on February 10 from 5:30 - 7:30. Both Buck and Weir will be participating in a panel discussion following the movie. Buck thanked the City for using mostly all-durable goods at last night's State of the City Celebration. The only things she noted as not being durable were napkins and nametags. She thought the event set a good tone for the rest of the community. 4. Public Forum Louise Shawkat - thanked the group for the amount of work they do, especially the climate and energy subcommittee. She would like the group to consider working with local banks to provide loans for conservation and energy retrofits/remodels. This would help owners who otherwise can't afford to do so improve their energy efficiency. Reminded the group that we need a plan to develop more alternate energy resources. Huelz - Stated he had also given this information at a recent City Council meeting. He informed the group that global warming is bad and more disasters are on the way. Society created this problem with bad growth. The least Ashland could do was stop building homes and buildings designed with carbon pollution. Stopping bad growth would not ruin the economy. Bad growth reduces quality of life. He also suggested that we lease Tesla vehicles for Council members, so they know what we can achieve. Believes that people in town do not want growth and that our water and streets are at their maximum capacity so he wonders why people are still coming here and ruining our quality of life, making life more dangerous, and adding more carbon. He would like to create a new department, since no building would mean no need for any planning or building departments. This new department would focus on programs for efficiency and he would run it. He would call it the Ashland Renewal Acquisition Department. He will send links to the Commission on a recent speech which talks about the carbon problem and gives clear solutions of how to solve it. 5. Reports/ Presentations/ Updates Minutes for the Conservation Commission January 28, 2015 Page 2 of 4 Council - Councilor Rosenthal informed the group that he's been re-appointed as the liaison to this commission for the next year. On January 2°d, Council approved their goals for the next biennium and 22.1 (Develop and implement a community climate change and energy plan) was approved and labeled a priority goal for the Council. Next Tuesday (February 2) SOU is presenting information to the Council regarding their co-generation project, if any commissioner wants to learn more. Recently, Representative Buckley and Senator Bates presented to Council their upcoming legislative priorities. Climate change is one of their top priorities. McGinnis thanked Rosenthal for last night's State of the City Event and expressed his appreciation that it focused largely on vision rather than entirely on history. Buck agreed and hopes that the City continues to be more celebratory. City Conservation & Operations - Hanks updated the group on installation of LED street lights. Ones for Siskiyou Blvd. have been ordered and they are receiving partial funding from BPA. McGinnis requested that information regarding savings from the LED lights be kept for future reporting (particularly as part of the Climate and Energy plan). Hanks informed the group that results of a recent energy audit mean changes to water heating system at the waste-water plant, which should provide good savings. Quarterly Report from Gary Sisk (Ashland School District) - Mr. Sisk informed the group that the report in the packet shows a snapshot of what they are currently working on. He feels it is very critical that large entities like the school district track and work hard to make their buildings as energy efficient as possible. Described to the group some of the LED lighting changes they are making. The true cost savings for LED lighting is not in the energy savings but in the maintenance savings. If they only have to replace lighting once every few years rather than once a year, it's a huge savings. Group thanked Mr. Sisk for his report, enthusiasm and continued efforts. Group discussed ways they can encourage the school district to continue becoming more efficient. Conservation Awards sub-committee - Next meeting of the subcommittee is Monday (February 2) at Recology at 4:00 p.m. So far both the middle school and John Muir school are on-board with the Earth Bowl idea. The committee is hoping for eight teams of four, mixed boys and girls. They are looking for three coaches to supervise the kids and are hoping to get the science teachers involved. Chip Lindsey from ScienceWorks would like to help edit the questions. The committee would like the commission to consider skipping the regular April meeting and instead have the "meeting" be attending and working on the Earth Bowl event. The group agreed to have further discussion of this request at the February meeting. Hartman/Silverberg m/s to spend up to $100 to bring lunch to the middle school science teachers to discuss their possible participation. No discussion. VoiceVote: all ayes. Motion passes. 6. Old Business Sneak Preview Column - Hartman/Buck m/s to approve the February column as submitted. Discussion: It would have been helpful if this topic was actually one month out for better Minutes for the Conservation Commission January 28, 2015 Page 3 of 4 confirmation of dates and details. Group recognized that this wasn't possible due to submittal due dates. Group agreed that webpage for additional information would be ashland.or.us/EarthBowl. Voice Vote: all ayes. Motion passes. Group discussed possibility of having a column regarding Gary Sisk's work with the School District. Agreed that it would be a good idea. Upcoming column topics: • March - Energy Efficiency, written by Hanks • April - Water Conservation, written by Weir • May - Overview of Climate Action Plan, written by Koopman and McGinnis • June - Compost Classes, written by Buck • July - School Efficiency Improvements, written by Hartman Carbon Fee/Dividend Discussion - discussion postponed due to absences of group members. Earth Day - Buck informed the group that she expects a request to the commission at the February meeting to support the Earth Day event. She would like the group to take a few minutes to decide if they are interested in participating or sponsoring the event this year. Last year the commission supported with money but did not participate. With the upcoming Earth Bowl the group has transitioned away from the Earth Day event. Group discussed pros and cons of participating in the Earth Day event. Discussed whether it would be the right venue to get the message out. Group determined that it's probably not the best as there is too much going on for the message to really be heard. Group discussed how difficult it is to say yes or no to any financial requests as they don't really have a clear picture of priorities and budget regarding those priorities. Silverberg agreed to create a draft "budget" for the commission's financial priorities. Group is to send him projects/ideas as well as rough costs so he can begin prioritizing. Climate and Energy Sub-committee Presentation - McGinnis informed the group that the meetings have been going well. He gave an overview of the plan to-date. The biggest changes from the last version are inclusion of examples in the appendices. They would like the group to approve it and move forward with the proposed document. McGinnis/Buck m/s to adopt the plan, minus the Corvallis plan appendix, for sending to Council in their March meeting. Discussion: Group discussed what was left to be done (the presentation). Councilor Rosenthal believes this plan is what the Council requested. Group discussed the format of the groups in the plan and determined that using a Technical Advisory Group and a Policy Group format would work best. They agreed to amend the plan accordingly. Voice Vote: all ayes. Motion passes. 7. New Business Compost Classes - Buck informed the group the new teacher will be Jim Flarity. Planning for a total of four classes and hoping to utilize the compost areas at the Recycle Center in-class. Minutes for the Conservation Commission January 28, 2015 Page 4 of 4 Buck/McGinnis m/s to approve the new teacher for four classes, running from 10:00 a.m. - noon and that two classes will be basic classes, with the remaining two advanced classes. Voice Vote: all ayes. Motion passes. Group discussed possibility of a rebate for those who have taken both the basic and advanced classes and show proof of purchase on start up system. Agreed this topic should be on a future agenda (maybe April or May). Group agreed they will have a later discussion on approving a gift certificate for the teacher as that money would come from the next budget cycle. Fourth of July - Buck requested that the group consider ideas for what to do in/at the parade and new ways to "get the message out". 8. Wrap Up Group requested the following be on the upcoming agenda: Climate Action Plan Follow-up Earth Bowl/Conservation Awards Earth Day Event Draft budget/financial priorities Carbon Fee/Dividend Fourth of July Meeting adjourned at 7:56 p.m. Respectfully submitted, Diana Shiplet Executive Secretary CITY OF ASHLAND ASHLAND PLANNING COMMISSION REGULAR MEETING MINUTES February 10, 2015 CALL TO ORDER Chair Richard Kaplan called the meeting to order at 7:00 p.m. in the Civic Center Council Chambers, 1175 East Main Street. Commissioners Present: Staff Present: Troy J. Brown, Jr. Bill Molnar, Community Development Director Michael Dawkins Maria Harris, Planning Manager Richard Kaplan April Lucas, Administrative Supervisor Debbie Miller Melanie Mindlin Tracy Peddicord Lynn Thompson Absent Members: Council Liaison: None Greg Lemhouse, absent ANNOUNCEMENTS Community Development Director Bill Molnar stated Greg Lemhouse has been appointed as the Commission's new council liaison and announced the March study session may be moved to March 31St. He noted copies of the Mayor's state of the city address have been handed out and provided a brief status update on the Normal Working Group and neighborhood plan. Commissioner Mindlin cited a letter sent to the Commission from one of the Normal residents and asked if city staff went out to investigate and make notations about the condition of the Normal neighborhood wetlands after the recent rain storms. Mr. Molnar indicated he would follow up with the Public Works Department on this. AD-HOC COMMITTEE UPDATES Downtown Parking Management and Circulation Committee Commissioner Dawkins provided an overview of the committee's last meeting. He stated a new traffic pattern proposal was presented that reduces East Main Street to two lanes, includes traffic lights at Oak/East Main and Oak/Lithia, and removes the light at Helman. He noted a lot of people came to the meeting to share their concerns about tree removals, but clarified this may not be needed. He added the venue has been changed to council chambers moving forward due to the public participation levels. CONSENT AGENDA A. Approval of Minutes 1. January 13, 2015 Regular Meeting. Commissioner Mindlin requested a correction on page two. The first sentence under Discussion Items should read: "Commissioner Mindlin left the meeting due to a potential public perception of conflict of interest. " Commissioners Thompson/Dawkins mis to approve the January 13, 2015 minutes with the noted correction. Voice Vote: All AYES. Motion passed unanimously. Ashland Planning Commission February 10, 2015 Page 1 of 6 PUBLIC FORUM Huelz Gutcheonl2253 Highway 99/Shared his vision for a City of Ashland Renewable Equity Acquisition Department. LEGISLATIVE PUBLIC HEARINGS A. PLANNING ACTION: #2014-02053 DESCRIPTION: Proposed amendments to the land use ordinance which would allow small scale short-term rental units (i.e., accessory traveler's accommodations) in the single-family and multi-family zones. The proposed amendments are to Chapter 18.2.2 Base Zones and Allowed Uses, Chapter 18.2.3 Special Use Standards, and Chapter 18.6.1 Definitions. Commissioner Mindlin left the meeting due to a potential public perception of conflict of interest. 7 Staff Report Community Development Director Bill Molnar presented the staff report for the accessory traveler's accommodation ordinance. He explained this discussion began back in August 2012. After the adoption of code amendments for multi-family zoned lands, the City Council discussed code changes that would create a minor allowance for short term accommodations on owner occupied properties in single-family districts and requested the Planning Commission hold public meetings and put forth an ordinance for Council consideration. Mr. Molnar reviewed the requirements of the draft ordinance, which include: 1) the accessory traveler's accommodation operator must be the property owner, it must be their primary residence, and they must be present during operation, 2) the property is limited to one accessory traveler's accommodation covered under a single reservation and consisting of two or fewer rooms, 3) the accessory accommodation must be on a property that is located within 200 feet of a major city street, 4) the total number of guests occupying the accessory traveler's accommodation may not exceed three, 5) separate kitchen facilities are not permitted, 6) the property must have two off- street parking spaces and guests are limited to one automobile, and 7) the request to operate an individual accessory traveler's accommodation would require approval of a conditional use permit followed by a one-time renewal within 24 months of the original approval. Code Compliance Officer Kevin Flynn addressed the Commission and provided an overview of his efforts to curb illegal vacation rentals in the city. He explained when he first came on board there were 150-180 properties under review for illegal operations, however he has had a lot of success and the vast majority have either gone through the land use approval process or have ceased their illegal operation. He commented on his experience with these homeowners and stated most of them want to get legal and follow the rules, and stated many are waiting for a decision from the city on this issue. Mr. Flynn clarified 90% of this work is complaint driven, however he does locate some of the illegal operations on his own. When asked if the proposed ordinance is unenforceable, Mr. Flynn said no and remarked that it would not be difficult to obtain information from operators and guests. Public Testimony Dr. Ruth Resch11000 Terra/Voiced support for accessory traveler's accommodations in the R-1 zone. Dr. Resch stated she is 79 years old and disabled and her one bedroom Airbnb rental allowed to her supplement her limited income and keep her home in Ashland. Nancy Blonol49 Fourth/Stated Airbnb rentals attract a different demographic that would not necessarily stay at a traditional bed and breakfast or hotel, and stated a study conducted by Boston University concluded Airbnb generates a demand that did not exist before and has a positive impact on the local economy. Ms. Blono commented on parking and recommended the ordinance only require one parking space per bedroom rented. She also stated it would be in Ashland's best interest to allow accessory travelers accommodations in all zones and not just properties located within 200 ft. of a major street. Rhonda Lee/2949 Barbara/Stated there is no evidence that host occupied stays have any greater impact than someone renting long term or someone operating a home business. She recommended the Commission remove the 200 ft. rule in all zones, allow both land owners or business owners to operate the rental, and allow up to four total guests. Lois Van Aken1140 Central/Stated she is the owner of two legal traveler's accommodations in the multi-family zone and stated allowing these in single family zones is a poor idea that will reduce rental housing, increase traffic congestion, worsen downtown traffic and the parking problem, and negatively change neighborhoods. Ashland Planning Commission February 10, 2015 Page 2 of 6 Russ Manzone/249 Hillcrest/Stated he operated two rentals until he was contacted by code enforcement and explained his neighbors enjoyed his property and there were no impacts in terms of noise or value. He stated his experience with short term rentals was positive and feels that everyone should have this opportunity. Joseph Kanth/1 Corral #13/Voiced his support for the ordinance and stated small cottage rentals could be great for the economy. Ellen Campbell/120 Gresham/Stated the ordinance fails to identify whether the owner's kitchen would be accessible to the guests, and if it is accessible then by definition that room has the potential to be a long term rental. Ms. Campbell stated Ashland has a deficit of long term rentals and if this ordinance goes through there will be a lot of people who will convert their long term rental units into short term rentals. She added this would drive up the cost of rentals and make it difficult for people who want to live in Ashland to be able to do so. Melody Jones/79 Pine Street/Stated there is no evidence that short term rentals are detrimental to neighborhoods and stated if a guest is loud or destructive she is present and can address it immediately, whereas if it is a renter there is a lengthy eviction process. Brenda Heyden/801 Forest/Cited an article from the San Francisco Chronicle and stated Ashland does not need to reinvent the wheel and should review the San Francisco law. Ms. Heyden voiced support for allowing residents to share their homes with guests in order to make ends meet and asked the city to find a balanced solution to this issue. Anita Isser/84 Garfield/Stated she has an upstairs unit that she would like to turn into a vacation rental and asked that the 200 ft. rule be reconsidered. Ms. Isser recommended each property be looked at individually to determine if it could be a legal and safe rental. Val Bachmeyer/172 Skidmore/Voiced her opposition to allowing vacation rentals in single family zones and questioned how the city could adopt this without sending a public notice to all the property owners in the R-1 zone. Ms. Bachmeyer stated once this is in action there is no way to reverse it and commented that the city's code compliance officer will have a difficult time gaining access to the inside of homes to verify compliance. Kelly Weisheipl/831 Liberty/Voiced support for short term vacation rentals and believes the city can draft rules that will benefit travelers and residents alike. Ms. Weisheipl recommended the 200 ft. requirement be removed and stated the conditional use approval process is sufficient to allow neighborhoods to decide if this is wanted. She stated the impacts of short term rentals are much less than that of a long term renter and asked the city to protect the economic health of the entire population. Commissioner Kaplan closed the public hearing at 8:25 p. m. Commission Discussion & Decision The Commission held discussion on the provisions of the draft ordinance. C-1: The operator of the accessory tra veler's accommodation must be the property owner and the property must be the operator's primary residence. The operator must be present during operation of the accessory traveler's accommodation. Comment was made that the intent of this requirement is to prohibit owners from vacating the property but trips to work or the grocery store (etc.) is fine. No issues were raised with this provision. C-2: The property is limited to having one accessory traveler's accommodation unit covered under a single reservation and consisting of two or fewer bedrooms. Kitchen and cooking facilities are not permitted with an accessory traveler's accommodation, with the exception of kitchen cooking facilities for the primary residence. Ashland Planning Commission February 10, 2015 Page 3 of 6 Commissioner Brown voiced support for including a statement that meals are not included to remove the perception that this is a type of bed and breakfast. Recommendation was made to modify the second sentence of this provision to read 'Meals are not provided and kitchen cooking facilities are not permitted... "General support was voiced for this change. C-3: The total number of guests occupying an accessory traveler's accommodation must not exceed three people. Commissioner Dawkins commented that three seems like an odd number and the intent was to keep the rental to one family and one car. Commissioner Kaplan suggested limiting the number of guests per bedroom (no more than two people per bedroom) and general support was voiced for this modification. C-4: The property must have two off-street parking spaces. The total number of guest vehicles associated with the accessory traveler's accommodation must not exceed one. No issues were raised with this provision. C-5: Signs are not permitted in conjunction with the operation of an accessory traveler's accommodation. No issues were raised with this provision. C-6: A home occupation is prohibited with an accessory traveler's accommodation. Commissioners Dawkins and Brown expressed concern with this limitation. Mr. Molnar clarified the intent was to limit the overall impact on the neighborhood and stated the ordinance would not allow a property owner to operate an accessory travelers accommodation and a home occupation concurrently. He added there are different levels of home occupations; some have no travel or visitors while others have more frequent customers and deliveries. The Commission discussed this provision and recommended it be modified to allow for flexibility. Suggestion was made to tie this into the conditional use approval process and evaluate the number of visitors associated with the home occupation on a case by case basis. Mr. Molnar commented that staff would evaluate this and draft alternate language that would allow both an accessory traveler's accommodation and a home occupation so long as the cumulative impact is not greater than the eight clients that is currently allowed under the home occupation ordinance. C-7: The accessory traveler's accommodation requires the renewal of the conditional use permit under chapter 18.5.4 within 24 months of the original appro val. Support was voiced for this language. Comment was made that a one-time review was beneficial and would allow for input from the neighborhood. Definition of Accessory Traveler's Accommodation Commissioner Thompson raised concern with the definition and stated as written it implies that whole house rentals are allowed. Mr. Molnar clarified the last phrase was taken from the adopted traveler's accommodation definition and is there to provide teeth for enforcement. Suggestion was made to modify the language to read "..no more than two bedrooms under a single reservation to overnight guests on one or more than one occasions for a period of less than 30 consecutive days... Mr. Molnar stated he would present this change to the legal department for consideration. Commissioners Brown/Dawkins m/s to recommend approval of the ordinance with the changes as discussed in the event the City Council decides to adopt an ordinance. Roll Call Vote: Commissioners Brown, Dawkins, Miller, Peddicord, Thompson, and Kaplan, YES. Motion passed unanimously. 200-Foot Rule The Commission held discussion on the language that requires traveler's accommodations and accessory traveler's accommodations to be located within 200 ft. of a boulevard, avenue, or neighborhood collector. Mr. Molnar clarified this was put into the code in the 1970's and the intent was to make it convenient and easy for travelers who are not familiar with town to get to their destination and to keep traffic on the major streets. Commissioner Dawkins commented that he does not find a lot of value in this rule. He stated if you have accommodations within a short distance from downtown people will walk; however once outside downtown people will drive. Commissioner Peddicord agreed and stated this seems arbitrary. Commissioner Brown commented that the city is always talking about how to cut down on cars and stated he would like to see the results of the downtown traffic study that is currently being conducted before they add more cars. Commissioner Kaplan remarked that the majority of R-1 areas within 200 ft. of a major street are not walkable to downtown. Commissioner Ashland Planning Commission February 10, 2015 Page 4 of 6 Peddicord noted there are neighborhoods much further from downtown that would adhere to the rule, and others much closer to downtown that don't. Commissioner Miller suggested removing this requirement for the historic districts since those areas are truly walking distance from downtown. General support was voiced for this modification. Mr. Molnar noted the four nationally recognized historic districts are all roughly within a 10-minute walking distance of downtown. Commissioner Dawkins voiced support for this change and commented that this is a good first step. Commissioner Thompson commented that the 200 ft. rule is arbitrary and there should be a better way to determine what parts of town they want these located. Commissioners Miller/Peddicord m/s to eliminate the 200 ft. rule for accessory travelers accommodations in the historic districts. Roll Call Vote: Commissioners Thompson, Miller, Dawkins, Peddicord, and Kaplan, YES. Commissioner Brown, NO. Motion passed 5-1. Commissioners Dawkins/Peddicord mis to eliminate the 200 ft. rule for accessory traveler's accommodations. DISCUSSION: Commissioner Thompson voiced concern with the impact of accessory traveler's accommodations and stated while the 200 ft. rule is arbitrary, they do not have a better tool to limit the scope of these. Commissioners Peddicord, Dawkins, and Kaplan, YES. Commissioners Miller, Brown, and Thompson, NO. Motion tied 3-3. Should accessory traveler's accommodations be allowed in residential zones? Mr. Molnar clarified the distinction between accessory traveler's accommodations and regular traveler's accommodations for the Commission. Commissioners Brown/Thompson m/s to allow accessory traveler's accommodations in R-2 and R-3 zones as shown in the Uses Allowed by Zone matrix. Roll Call Vote: Commissioners Miller, Peddicord, Thompson, Brown, Dawkins, and Kaplan, YES. Motion passed unanimously. The Commission held discussion on whether accessory traveler's accommodations should be permitted in R-1 single family zones. Commissioner Peddicord stated she is empathetic to people wanting to make money in order to keep their homes, but is concerned about the overall impact to affordable housing and is worried about driving up housing prices long term. Commissioner Miller stated she is unsure and questioned if these would have any more impact than home occupations that are currently allowed. Commissioner Dawkins commented that people should have the right to use their homes this way to provide income and stated it is a changing time and it is a sharing economy right now. Miller countered that people who need supplemental income could rent long term. Commissioner Thompson commented that this is a very difficult problem. She stated the traditional thinking is that R-1 is strictly residential, but that has been eroded over time with a certain level of commercial activity and the number of people who work out of their homes. She stated from an impact standpoint accessory traveler's accommodations will not be dramatically different from home occupations, but she is concerned with how this will affect housing prices in the long run. Thompson stated they should be encouraging long term rentals in R-1 neighborhoods and this ordinance is not addressing a need that we have in the city. She stated there might be individual need, but as a city this is not something we need. She stated the 200 ft. rule does not make sense, but if the Council wants to allow accessory traveler's accommodations in R-1 she does not want to open this up to the entire city and this is the only reason she would support the 200 ft. regulation. Commissioner Brown commented that this will change the economics of the housing market and skews it away from long term renters and he does not believe this ordinance would benefit the city as a whole. He stated the R-1 districts have already been eroded and stated at what point do you draw the line. Commissioner Kaplan stated they have listened to a lot of testimony on both sides of this issue and he is not convinced this will be taken advantage of as much as some think. He stated it is a burden and there are costs involved and he believes there will be a lot of owners who could do this but won't want to. Commissioner Dawkins stated the neighborhoods have changed and are not the same as when he was growing up. He stated they have made the neighborhoods quiet, not energetic and he supports people doing business in their homes. He stated this is part of the change that is happening and while he is fine with the City Council saying no, this is what the future is and he believes they wrote a really good ordinance. Commissioners Brown/Thompson mis to not allow accessory travelers accommodations in the R-1 single family zone. Roll Call Vote: Commissioners Thompson, Brown, and Miller, YES. Commissioners Dawkins, Peddicord, and Kaplan, NO. Motion tied 3-3. Ashland Planning Commission February 10, 2015 Page 5 of 6 OTHER BUSINESS The Commission agreed to move the Study Session to March 31. ADJOURNMENT Meeting adjourned at 10:10 p.m. Submitted by, April Lucas, Administrative Supervisor Ashland Planning Commission February 10, 2015 Page 6 of 6 CITY OF -ASHLAND Council Communication March 17, 2015, Business Meeting Liquor License Application for Aaren Glover dba The Organic Alcohol Co. FROM: Barbara Christensen, City Recorder, christeb@ashland.or.us SUMMARY Approval of a Liquor License Application from Aaren Glover dba The Organic Alcohol Company at 650 Mistletoe Road. BACKGROUND AND POLICY IMPLICATIONS: Application is for a "change in location." The City has determined that the license application review by the city is set forth in AMC Chapter 6.32 which requires that a determination be made to determine if the applicant complies with the city's land use, business license and restaurant registration requirements (AMC Chapter 6.32) and has been reviewed by the Police Department. In May 1999, the council decided it would make the above recommendations on all liquor license applications. FISCAL IMPLICATIONS: N/A STAFF RECOMMENDATION AND REQUESTED ACTION: Endorse the application with the following: The city has determined that the location of this business complies with the city's land use requirements and that the applicant has a business license and has registered as a restaurant, if applicable and has been reviewed by the Police Department. The city council recommends that the OLCC proceed with the processing of this application. SUGGESTED MOTION: Under Consent agenda item, a motion to approve liquor license for Aaren Glover dba The Organic Alcohol Company. ATTACHMENTS: Liquor License Application Page 1 of 1 0 OREGON LIQUOR CONTROL COMMISSION LIQUOR LICENSE APPLICATION CITYAND COLW Y TIDE ONLY LNMMTYM Ort nlaas Sales ACTIONS Dab appoes"on mom"d: (:402.ti01yr) Chanpe Ow-nft Co memisl Estebtlehment New Milo The CHy Courson or CCU* Con ndealm Cower Greapr privilege paeeww Carrier AddNahel (rrawddhoraorarq~ O6nr Public Locastbn („harNev 7 oty nn reoomarerrde that e" Hama be: ft ale Club a Umbd On %miaes Sates 02MADtA O Granted D Danled W*mevass Nh Fuel POW : tom).) Brewery PW* Wows paw) None: /",~y r VYIM.i ~ 1 WO: 904)AYAUTHORRY 13Cbedc hero If you are appykv We cleave of ownership at 9A ta6resa OLCC USE ONL tlat has a current tlquor fliers. or N you are spOft ter an 0SPrembes AppAaft Recd by. Sales tloema and we requreeling a 90•Day Temporary Auft* FEE; S Date Z S I S / [3le 9t)-0sy auihorV. D Yes II No 13comimW 11 1. Erdy or Iru WWuois spplylrv for the license: [See SECTION 1 of tms Guido) 0 2. Trade Name (rma): I C".'r ~ ; a &nbws Loce9on• cQ 520 ft-W-1 ebew, r" ram) W t-OM (166) am sods) 4,anness Adtimm. :2-3o5 AsL kc4,q s+-,S4e C 1g yy~) s~1a~r~O,~ Q7520 VO bout, mnnbw saw, nW rout.) (am t p) tp oods) t► &AINa Numb=-5L( . q ( t! S2. 656 L✓ (Pbouw) aw 6. Is the business at We Ioceft currently li sed by OLCC? Yes PIo 7. H yes to whom: Type d Ueerse: 6. Former Bwbhess Name: 9. Will you have a manager? ;Yea Mo Name: L4 u f r-2 D rose yr (rrrarrsasr a out sn tomr) e 10 What le the local govendrtg body where your txgdrsas is tocated7 C i 7 o 6 /o I G7 dye aounpr) 11.Contaol person brthle appH=Gon: AUf2~r\I JC„ r t s 6C9 2 3o5 Ass &,J -(4,2e, C P,4=2 [ 7-' (fz irJ l QA e~mr4~n itG/ro/,o~/p,il W*-) sl10~V)CV g7SzC~ 1 und0t04nd that If my answers are not true and complete, the OLCC may deny my license app8eadon. Applicnhl(s) Slphwdae(s) and Date: m D e%D -i C R, ® Date ® Date 1$00454.OL00 (8522) • wwvroreganpovldx arraemre CITY OF ASHLAND Council Communication March 17, 2015, Business Meeting Request to increase and extend contract for Terra Survey-Special Procurement FROM: Rachel Dials, Recreation Superintendent, Ashland Parks and Recreation, rachel.dials@ashland.or.us SUMMARY The Calle Guanajuato Project is complete. Terra Survey is working with staff to complete a boundary survey. City Attorney and Parks and Recreation Staff have been using this boundary information to work through concerns with property owners and finalize with Jackson County. The required work will exceed the contract amount by more than 25%, thus requiring Local Contract Review Board approval. BACKGROUND AND POLICY IMPLICATIONS: This is a request for approval of an increase in Terra Survey's contract with the Parks Department. Terra Survey has provided a boundary survey, individual deed references and a field traverse around the buildings along the Calle Guanajuato to correct historic errors in regards to boundary lines. The City Attorney along with Parks and Recreation staff has worked closely with property owners to resolve and correct any boundary line issues. Because the substance of the project was to correct errors, the contractor and Agency were required to respond to developments as they were discovered, thus the Parties simply underestimated the amount of time and work that would be necessary to complete the project. Therefore, Staff is requesting to increase the amount and extend the contract due to the additional work and time to complete the remaining tasks of the project which will be setting the property corners, processing and finalizing the plat with Jackson County. Staff is asking for the funding amount to be increased by $5000 with a total not to exceed $18,900 and extend the contract through July 31, 2015. The Contract was previously approved by Council on February 18, 2014. COUNCIL GOALS SUPPORTED: N/A FISCAL IMPLICATIONS: Staff is requesting that the contract be extended to July 31, 2015 and that the total cost of the contract be increased to $18,900. The current contract is for $13,900. The funds were budgeted in Biennium `13-` 15 in the Capital Improvement Fund. STAFF RECOMMENDATION AND REQUESTED ACTION: Staff recommends approval of the increase of $5000 and extension of the contract to July 31, 2015. SUGGESTED MOTION: I move that Council, acting as the Local Contract Review Board, adopt the findings set forth in the attached request for extension and increase of the Terra Survey contract and approve the Special Procurement described therein. Page 1 of 2 rr, CITY OF ASHLAND ATTACHMENTS: Special Procurement-Request for Approval (Written Findings) Contract Addendum Page 2 of 2 CITY OF FORM #9 ASHLAND SPECIAL PROCUREMENT REQUEST FOR APPROVAL To: City Council, Local Contract Review Board From: Rachel Dials, Ashland Parks and Recreation Commission Date: 3-9-15 Subject: REQUEST TO INCREASE AND EXTEND CONTRACT- SPECIAL PROCUREMENT In accordance with ORS279B.085, this request for approval of a Special Procurement is being presented to the City Council for approval. This written request for approval describes the proposed contracting procedure and the goods or services or the class of goods or services to be acquired through the special procurement and the circumstances that justify the use of a special procurement under the standards set forth ORS 279B.085(4). 1. Requesting Department Name: Ashland Parks and Recreation 2. Department Contact Name: Rachel Dials 3. Type of Request: Class Special Procurement X Contract-specific Special Procurement 4. Time Period Requested: From: March 24, 2015 To: July 31, 2015 5. Total Estimated Cost: $5000 (Current contract is $13900) Total Contract Not to exceed $18,900 6. Short title of the Procurement: Increase amount of Special Procurement to finalize Boundary Survey and paperwork for the Calle Guanajuato project. Supplies and/or Services or class of Supplies and/or Services to be acquired: Terra Survey has provided a boundary survey, individual deed references and a field traverse around the buildings along the Calle Guanajuato to correct historic errors in regards to boundary lines The City Attorney along with Parks and Recreation staff has worked closed with property owners to resolve and correct any boundary line issues. Because the substance of the project was to correct errors, the contractor and Agency were required to respond to developments as they were discovered thus the Parties simply underestimated the amount of time and work that would be necessar~to complete the proiect. Therefore, Staff is req-uesting to increase the amount and extend the contract due to the additional work and time to complete the remaining tasks of the project which will be setting the property corners, processing and finalizing the plat with Jackson County. Staff is asking for the funding amount to be increased by $5000 with a total not to exceed $18,900 and extend the contract through July 31 2015. The Contract was previously approved by Council on 2/18/14 Form #9 - Special Procurement - Request for Approval, Page 1 of 4, 3/1012015 7. Background and Proposed Contracting Procedure: Provide a description of what has been done in the past and the proposed procedure. The Agency may, but is not required to, also include the following types of documents: Notice/Advertising, Solicitation(s), Bid/Proposal Forms(s), Contract Form(s), and any other documents or forms to be used in the proposed contracting procedure. Attach additional sheets as needed. Background: Terra survey is currently working on finalizing the boundary survey for the Calle Guanajuato Project. Proposed procedure: Increase contract amount for Terra Survey from $13,900 to 18,900. An increase of $5000 8. Justification for use of Special Procurement: Describe the circumstances that justify the use of a Special Procurement. Attach relevant documentation. Contract previously approved by council on 2/18/2014 Staff is requesting to increase contract by $5000 and extend through July 31, 2015. 9. Findings to Satisfy the Required Standards: This proposed special procurement: X_ (a) will be unlikely to encourage favoritism in the awarding of public contracts or to substantially diminish competition for public contracts because: (Please provide specific information that demonstrates how the proposed Special Procurement meets this requirement.); and (b)(i) will result in substantial cost savings to the contracting agency or to the public because: (Please provide the total estimate cost savings to be gained and the rationale for determining the cost savings); or (b)(ii) will otherwise substantially promote the public interest in a manner that could not practicably be realized by complying with the requirements of ORS 279B.055, 279B.060, 279B.065, or 279B.070, or any rules adopted thereunder because: Form #9 - Special Procurement- Request for Approval, Page 2 of 4, 3/10/2015 (Please provide specific information that demonstrates how the proposed Special Procurement meets this requirement.) Form #9 - Special Procurement- Request for Approval, Page 3 of 4, 3/10/2015 Public Notice: Pursuant to ORS 279B.085(5) and OAR 137-047-0285(2), a Contracting Agency shall give public notice of the Contract Review Authority's approval of a Special Procurement in the same manner as a public notice of competitive sealed Bids under ORS 279B.055(4) and OAR 137-047-0300. The public notice shall describe the Goods or Services or class of Goods or Services to be acquired through the Special Procurement and shall give such public notice of the approval of a Special Procurement at least seven (7) Days before Award of the Contract. After the Special Procurement has been approved by the City Council, the following public notice will be posted on the City's website to allow for the seven (7) day protest period. Date Public Notice first appeared on www.ashland.or.us - March 18, 2015 PUBLIC NOTICE Approval of a Special Procurement First date of publication: [Enter date] A request for approval of a Special Procurement was presented to and approved by the City Council, acting as the Local Contract Review Board, on if approved, March 18, 2015. Terra Survey has provided a boundary survey, individual deed references and afield traverse around the buildings along the Calle Guanajuato to correct historic errors in regards to boundary lines. The City Attorney along with Parks and Recreation staff has worked closely with property owners to resolve and correct any boundary line issues. Staff is requesting to increase the amount and extend the contract due to some additional work and time associated with setting the property corners, processing the plat and finalizing with Jackson County. Asking for amount to be increased by $5000 with a total not to exceed $18,900 and extend through July 31, 2015. Contract was previously approved by Council on 2118114. It has been determined based on written findings that the Special Procurement will be unlikely to encourage favoritism in the awarding of public contracts or to substantially diminish competition for public contracts, and result in substantial cost savings or substantially promote the public interest in a manner that could not be realized by complying with the requirements that are applicable in ORS 279B.055, 27913.060, 279B.065, or 279B.070. An affected person may protest the request for approval of a Special Procurement in accordance with ORS 27913.400 and OAR 137-047-0300. A written protest shall be delivered to the following address: City of Ashland, Ashland Parks and Recreation, Rachel Dials, 340 S. Pioneer St. Ashland OR 97520. The seven (7) protest period will expire at 5:00pm on March 24, 2015 This public notice is being published on the City's Internet World Wide Web site at least seven days prior to the award of a public contract resulting from this request for approval of a Special Procurement. Form #9 - Special Procurement- Request for Approval, Page 4 of 4, 3/10/2015 ADDENDUM TO CITY OF ASHLAND CONTRACT FOR PERSONAL SERVICES LESS THAN $35,000 Addendum made this 24 day of March 2015, between the City of Ashland ("City") and Terra Survey ("Consultant"). Recitals: A. On 9116113 City and Consultant entered into a "City of Ashland Contract for Personal Services Less than $35,000" (further referred to in this addendum as "the agreement"). B. The parties desire to amend the agreement to increase the compensation to be paid Consultant and extend the contract. City and Consultant agree to amend the agreement in the following manner: 1. The maximum price as specified in Paragraph 4 of the agreement is increased to $18,900 and contract will be extended through July 31, 2015 2. Except as modified above the terms of the agreement shall remain in full force and effect. CONSULTANT: CITY OF ASHLAND: BY BY Department Head Its Date DATE Purchase Order # Acct. No.: (For City purposes only) 1- CITY OF ASHLAND, ADDENDUM TO CONTRACT FOR PERSONAL SERVICES CITY OF -ASHLAND Council Communication March 17, 2015, Business Meeting Appointment to Transportation Commission FROM: Barbara Christensen, City Recorder, christebkashl and. or.us SUMMARY Confirm Mayor's appointment of Danielle Amarotico to the Transportation Commission with a term to expire April 30, 2017. BACKGROUND AND POLICY IMPLICATIONS: This is confirmation by the City Council on the Mayor's appointment to the Transportation Commission. Ashland Municipal Code (AMC) Chapter 2.17.020 COUNCIL GOALS SUPPORTED: N/A FISCAL IMPLICATIONS: N/A STAFF RECOMMENDATION AND REQUESTED ACTION: Motion to approve appointment of Danielle Amarotico to the Transportation Commission with a term to expire April 30, 2017. SUGGESTED MOTION: Motion to approve Danielle Amarotico to the Transportation Commission with a term to expire April 30, 2017. ATTACHMENTS: Application Page I of 1 CITY OF -ASHL APPLICATION FOR APPOINTMENT TO CITY COMMISSION/COMMITTEE M~41 0 6 y. Please type or print answers to the following questions and submit to the City Recorder at f City Hall, 20 E Main Street, or email christeb(alashland.orms. If you have any questions, please feel free to contact the City Recorder at 488-5307. Attach additional sheets if necessary. Name { > c~v~ e e. I~wi n r ct1 v Requesting to serve on: T S lno t cfi t v~ _ (Commission/Committee) Address W 5 1 ei k- e to-tjl Occupation re s V a u x O.v1-4 Phone: Home'i 1 q-k y c7 Work5LII 4`1`4 g33~) Email ~c ~,ette~srci,n~5e Fax 1~rew,n~ c.cnn 1. Education Background What schools have you attended? 5 c~v What degrees do you hold? p,~, pit;„~ c-s5 A ct vv, n r 4 What additional training or education have you had that would apply to this position? 2. Related Experience What prior work experience have you had that would help you if you were appointed to this position? 7C~ c-0vy1✓\,\ v vi~ GO t~ } vQ t t. e e- Do you feel it would be advantageous for you to have further training in this field, such as attending conferences or seminars? Why? U 5. Vn cve Lrt cw I c c~ IS /i VV0.`IS /c,IVable ~r, 3. Interests l Why are you applying for this position? cam. ~~c~rc~v~ cxVl(} n )~v~ineSS ot..~~f-c =1: Feral t'xG;t~c' tt" cl.~ Cu- C- >CJ -41 C I'l I I Z: U- +o 4. Availhbili Are you available to attend special meetings, in addition to the regularly scheduled meetings? Do you prefer day or evening meetings? iJ C s . 1 Ir c v c 5. Additional Information How long have you lived in this community? ZJ . Please use the space below to summarize any additional qualifications you have for this position - C~e.c~llFc'c1 ct_ l':~i~ ~~~'~c~v ~r✓~ .hrr c:V~ l~~ ~ I U ~ ~ J ` ~1-7C (ili v ~ C ' v :rye vr'1 ✓1 C, LYl w ~/1lr? lS es nL~v%~lQ c~ ~ ~ C_1 -7 9- U o C- a (f Date S e CITY OF ASHLAND Council Communication March 17, 2015, Business Meeting Approval of MOU between the Ashland Police Department, Jackson County Sheriffs Department and the Jackson County Sexual Assault Response Team FROM: Terry Holderness, Police Chief, holdenet@ashland.or.us SUMMARY The Ashland Police Department, Jackson County Sheriff's Department and the Jackson County Sexual Assault Response Team will each participate in implementing the national You Have Options Program (YHOP). This memorandum of understanding spells out the expectations and responsibilities of the particular agencies. BACKGROUND AND POLICY IMPLICATIONS: The You Have Options Program was developed by the Ashland Police Department to increase reporting of sexual assaults and improve any subsequent investigations. With the assistance of the Jackson County Sexual Assault Response Team, the Ashland Police Department has further developed the You Have Options Program for law enforcement implementation on a national level. Since its inception, several agencies from across the country have shown a significant interest in the program and have attended training seminars hosted by APD. One of those agencies has since signed on as a You Have Options agency; several other agencies are in the process of joining the program or have advised of their intent to become a You Have Options agency. We expect the interest to grow exponentially on a national level and are preparing for its continued and future success. While staff believes that in the long term we should be able to fund the program by of combination of grants, user fees and/or charging for related training, in the short term we are having funding and staffing problems. Our current program manager has found that even working full time on YHOP she is having trouble dealing with all of the calls for information, training and other responsibilities related to the program. We are activity looking for ways to fund additional paid assistance and the possibility of the using volunteers and interns. In addition our existing grant does not fully fund the cost of developing the YHOP website and providing adequate support including financial management related to the YHOP training programs and grant administration is becoming a problem with the limited resources available at the Police Department. Entering into an agreement with the Jackson County Sherriff's Department (JCSO) and the Jackson County Sexual Assault Response Team (SARI) will allow us to strengthen the program by combining the resources of all three parties to manage the program and acquire additional funding. FISCAL IMPLICATIONS: Page 1 of 2 ~S, CITY OF ASHLAND The Ashland Police Department will assign one full time employee to administer the program as the Program Director, funded from the general fund for 2016-2018. This may be offset by a combination of grants, user fees and/or charging for YHOP related training. STAFF RECOMMENDATION AND REQUESTED ACTION: Staff recommends that Council accept the MOU between the Ashland Police Department, Jackson County Sheriff's Department and the Jackson County Sexual Assault Response Team. SUGGESTED MOTION: Move to approve the MOU between the Ashland Police Department, Jackson County Sheriff's Department and the Jackson County Sexual Assault Response Team to jointly manage the National You Have Options Program. ATTACHMENTS: MOU between the Ashland Police Department, Jackson County Sheriff's Department and the Jackson County Sexual Assault Response Team. Page 2 of 2 RE Memorandum of Understanding (MOU) Between Ashland Police Department, Jackson County Sheriffs Department and Jackson County Sexual Assault Response Team The purpose of this document is to acknowledge the parties' joint undertaking and mutual expectations related to the You Have Options Program. The You Have Options Program was developed by the Ashland Police Department to increase reporting of sexual assaults and improve any subsequent investigations. With the assistance of the Jackson County Sexual Assault Response Team, the Ashland Police Department has further developed the You Have Options Program for law enforcement implementation on a national level. Ashland Police Department, Jackson County Sheriff's Department and Jackson County Sexual Assault Response Team will each participate in implementing the national You Have Options Program. The Ashland Police Department will assign one full time employee to administer the program as the Program Director, continue to promote the program and assist in developing funding sources to the cover the cost of the program. The Jackson County Sheriff's Department will provide financial assistance of up to $25,000 required to complete the national You Have Options website; provide office space and support for the Program Director and any other employees or volunteers working in support of the You Have Options Program; provide the Ashland Police Department with the services of a sexual assault advocate; provide assistance, including accounting services, for training related to the program or other funds generated by the program; promote the program; and assist in developing funding sources to cover the cost of the program. The Jackson County Sexual Assault Response Team will promote the program and assist in developing funding sources to cover the cost of the program. The Jackson County Sheriff's Department and Jackson County Sexual Assault Response Team will jointly work to secure funding for and hiring a full time civilian employee to assist the Program Director in running the You Have Options Program. The You Have Options program will be jointly administered by a five-person steering committee. The steering committee will consist of three permanent and two appointed members. The permanent members shall consist of the Police Chief of Ashland (or a delegate appointed by the Police Chief, the Sheriff of Jackson County (or a delegate appointed by the Sheriff), and the Executive Director of Jackson County Sexual Assault Response Team (or a delegate appointed by the Executive Director). The two appointed members will be appointed or removed by a majority vote of the permanent steering committee members. One of the appointed steering committee members is to be a current or former law enforcement officer, and the other is to be a person currently or formerly working in the field of sexual assault victim advocacy. The steering committee will meet quarterly. The steering committee will provide direction and guidance for the program, including but not limited to: ■ Evaluating the performance of the program director at least annually; ■ Authorizing and recommending changes and updates to the You Have Options program; ■ Developing and implementing strategies to fund the program; ■ Approving and assisting in the development of training courses related to the You Have Options program; ■ Entering into agreements with agencies interested in joining the You Have Options program; and ■ Determining equitable use of funds generated by the You Have Options program. The steering committee members will strive for consensus on any proposed modification to the mutual understandings set forth in this memorandum. Any party that decides to stop participating in the You Have Options program will notify the other parties at least 30 days in advance. If any party withdraws from participating in the program, the remaining parties may enter into a new agreement to jointly manage the implementation of the national You Have Options Program. If they are unable to come to an agreement to jointly manage implementation the You Have Options program will revert in its entirety to the Ashland Police Department. Each party may disclose publicly the terms of this Memorandum of Understanding. This Memorandum of Understanding is intended exclusively to clarify expectations and provide guidance for the parties in the management of the You Have Options program. Nothing in this Memorandum of Understanding is binding on any of the subscribing parties. This Memorandum of Understanding does not create additional jurisdiction or limit or modify the existing jurisdiction of any of the parties. Nothing contained herein creates or extends any actionable legal right, privilege, or benefit to any person or entity. CITY OF ASHLAND Council Communication March 17, 2015, Business Meeting TAP Infrastructure Financing Authority Loan Authorization Resolution FROM: Scott A. Fleury, Engineering Services Manager, Public Works/Engineering fleurys@ashland.or.us SUMMARY Council is asked to approve a new resolution authorizing a loan with the Infrastructure Financing Authority (IFA). Council previously approved a resolution authorizing the borrowing for the emergency Talent Ashland Phoenix Intertie (TAP) and two other water capital improvement projects. A new resolution is required to increase the loan amount in order to construct the permanent 2.13 million gallons per day (mgd) TAP pump station. BACKGROUND AND POLICY IMPLICATIONS: As previously approved by Council at the December 2, 2014 meeting, Public Works has proceeded with the design and construction for the permanent 2.13 mgd pump station. In order to complete this portion of the project staff has worked with the IFA to increase the original loan amount from $2,970,000 by $541,027. In order to finalize the increase through the IFA a resolution approved by Council is required, authorizing the total loan amount. Resolution 2014-14 was previously approved by Council at the July 1, 2014 meeting. Project Update n sCurrently RH2 Engineers are designing the permanent 2.13 mgd pump station and working towards obtaining Jackson County Planning and required environmental approvals. The permanent easements for both access to the pump station and the pump station itself have been finalized. The emergency pump station will be left in place until the permanent pump station has been constructed. Project History The TAP project included engineering and construction of 14,000 feet of 16-inch pipeline within ODOT Highway 99 right-of-way from Ashland Mine Road in Ashland to Creel Road in Talent, and construction of a pump station near the corner of Valley View and Highway 99. The new water supply system was designed to provide an additional 2.13 mgd of water to Ashland for emergencies. At the February 18, 2014 Council meeting staff brought forward the option of constructing the TAP emergency intertie under emergency conditions due to the severe drought and lack of snowfall. Council approved the emergency engineering procurement process for the TAP pipeline. At the March 4, 2014 meeting Public Works presented the cost options for paying the Medford Water Commission (MWC), System Development Charge (SDC) along with the water delivery agreement. These options included whether to purchase 2.13 or 3 mgd worth of SDCs from the MWC. The Council approved purchasing 2.13 mgd of SDCs from the Medford Water Commission. The 2.13 mgd Page I of 3 al, CITY OF ASHLAND represents the amount of water the City could receive on a daily average amount over five months based on the 1,000 acre feet of Lost Creek water rights. At the April 22, 2014 Council meeting staff presented a TAP project update along with associated costs for construction of the pipeline. In addition, staff asked Council to approve the emergency construction of the TAP pipeline in order to have the system in place by the end of August when possible water shortages could occur. Council approved the emergency construction procurement of the TAP pipeline, re-obligated $2.4 million Park Estates Pump Station monies to the TAP project, granted the City Administrator contracting authority in excess of $100,000 for construction of the TAP pipeline and granted the City Administrator authority to sign a State Revolving Fund loan agreement in the amount of $2.97 million. A ribbon cutting ceremony was held on September 11, 2014 to celebrate the substantial completion of the TAP project. Medford water was added to Ashland's distribution system beginning on August 27, 2014. More than 17 million gallons was added during the testing period that ended in mid-September. At the December 2, 2014 meeting staff presented another TAP update to Council along with the wholesale water agreement with the Medford Water Commission for approval. This update presented two options for Council regarding construction of a permanent pump station. Council approved the wholesale water agreement and approved, construction of a permanent pump station capable of expanding to 3 mgd in the future if needed. COUNCIL GOALS SUPPORTED: N/A FISCAL IMPLICATIONS: The additional funds requested from IFA to construct the permanent pump station amount to $541,027. In order to compensate for the additional funds required, staff has worked with a financial advisor to assess the water fund revenue and expenditures. As stated at the December 2 meeting, no additional rate increases past what have been recommended in the Water Master Plan are necessary for the additional debt service for construction of the TAP line. STAFF RECOMMENDATION AND REQUESTED ACTION: Staff recommends approving the resolution authorizing the additional borrowing from the IFA. SUGGESTED MOTION: Move to approve a resolution titled "A Resolution Authorizing a Loan from the Safe Drinking Water Revolving Loan Fund by Entering into a Financing Contract with the Oregon Infrastructure Finance Authority." ATTACHMENTS: I. IFA Borrowing Resolution 2. Resolution 2014-14 3. December 2, 2014 Business Meeting Minutes http://www.ashland.or.us/Agendas.asp?Display=Minutes&AMID=5 850%20 4. April 22, 2014 Business Meeting Minutes http://www.ashland.or.us/Agendas.asp?Displqy=Minutes&AMID=5659 Page 2 of 3 CITY OF ASHLAND 5. March 4, 2014 Business Meeting Minutes http://www.ashland.or.us/Agendas.asp?Display=Minutes&AMID=5593 6. February 18, 2014 Business Meeting Minutes http://www.ashland.or.us/Agendas.asp?Display=Minutes&AMID=5579 Page 3 of 3 RESOLUTION NO. 2015- A RESOLUTION AUTHORIZING A LOAN FROM THE SAFE DRINKING WATER REVOLVING LOAN FUND BY ENTERING INTO A FINANCING CONTRACT WITH THE OREGON INFRASTRUCTURE FINANCE AUTHORITY RECITALS: A. The Recipient is a community water system as defined in Oregon Administrative Rule 123-0490010. B. The Safe Drinking Water Act Amendments of 1996, Pub.L. 104-182, as amended (the "Act'), authorize any community or nonprofit non-community water system to file an application with the Oregon Infrastructure Finance Authority ("the IFA") to obtain financial assistance from the Safe Drinking Water Revolving Loan Fund. C. The Recipient has filed an application with the IFA to obtain financial assistance for a "safe drinking water project" within the meaning of the Act, and the IFA has approved the Recipient's application for financial assistance from the Safe Drinking Water Revolving Loan Fund. D. The Recipient is required, as a prerequisite to the receipt of financial assistance from the IFA, to enter into a Financing Contract with the IFA, substantially in the form attached hereto as Exhibit A. E. Notice relating to the Recipient's consideration of the adoption of this Resolution was published in full accordance with the Recipient's charter and laws for public notification. THE CITY OF ASHLAND RESOLVES AS FOLLOWS: SECTION 1. Financing Loan Authorized. The Governing Body authorizes the City Administrator to execute the Financing Contract and the Promissory Note (the "Financing Documents") and such other documents as may be required to obtain financial assistance including a loan from the IFA on the condition that the principal amount of the loan from the IFA to the Recipient is not more than $2,970,000 (with $950,000 eligible for principal forgiveness if contract conditions are met) and the interest rate is not more than I% if contract conditions are met (and 3.48% if not met). The proceeds of the loan from the IFA shall be applied solely to the "Costs of the Project" as such term is defined in the Financing Contract. SECTION 2. Security. Amounts payable by the Recipient shall be payable from the sources described in Section 4 of the Financing Contract and the Oregon Revised Statutes Section 285A.213 (5) which include: (a) Revenue from any water system project of the Recipient, including special assessment Resolution No. 2015- Page 1 of 2 revenue; (b) Amounts withheld under subsection 285A.213 (6); (c) The general fund of the Recipient; (d) Any combination of sources listed in paragraphs (a) to (c) of this subsection; or (e) Any other source. SECTION 3. Additional Documents. The City Administrator is hereby authorized to enter into any agreements and to execute any documents or certificates which may be required to obtain financial assistance from the IFA for the Project pursuant to the Financing Documents. SECTION 4. Tax-Exempt Status. The Recipient covenants not to take any action or omit to take any action if the taking or omission would cause interest paid by the Recipient pursuant to the Financing Documents not to qualify for the exclusion from gross income provided by Section 103(a) of the Internal Revenue Code of 1986, as amended. The City Administrator of the Recipient may enter into covenants on behalf of the Recipient to protect the tax-exempt status of the interest paid by the Recipient pursuant to the Financing Documents and may execute any Tax Certificate, Internal Revenue Service forms or other documents as shall be required by the IFA or their bond counsel to protect tax-exempt status of such interest. This resolution was duly PASSED and ADOPTED this day of , 2015, and takes effect upon signing by the Mayor. Barbara Christensen, City Recorder SIGNED and APPROVED this day of , 2015. John Stromberg, Mayor Reviewed as to form: David H. Lohman, City Attorney Resolution No. 2015- Page 2 of 2 RESOLUTION NO.2014-11-A A RESOLUTION AUTHORIZING A LOAN FROM THE SAFE DRINKING WATER REVOLVING LOAN FUND BY ENTERING INTO A FINANCING CONTRACT WITH THE OREGON INFRASTRUCTURE FINANCE AUTHORITY RECITALS: A. The Recipient is a community water system as defined in Oregon Administrative Rule 123-0490010. B. The Safe Drinking Water Act Amendments of 1996, Pub.L. 104-182, as amended (the "Act'), authorize any community or nonprofit non-community water system to file an application with the Oregon Infrastructure Finance Authority ("the IFA") to obtain financial assistance from the Safe Drinking Water Revolving Loan Fund. C. The Recipient has filed an application with the IFA to obtain financial assistance for a "safe drinking water project within the meaning of the Act, and the IFA has approved the Recipient's application for financial assistance from the Safe Drinking Water Revolving Loan Fund. D. The Recipient is required, as a prerequisite to the receipt of financial assistance from the IFA, to enter into a Financing Contract with the IFA, substantially in the form attached hereto as Exhibit A. E. Notice relating to the Recipient's consideration of the adoption of this Resolution was published in full accordance with the Recipient's charter and laws for public notification. THE CITY OF ASHLAND RESOLVES AS FOLLOWS: SECTION 1. Financing Loan Authorized. The Governing Body authorizes the City Administrator to execute the Financing Contract and the Promissory Note (the "Financing Documents") and such other documents as may be required to obtain financial assistance including a loan from the IFA on the condition that the principal amount of the loan from the IFA to the Recipient is not more than $2,970,000 (with $950,000 eligible for principal forgiveness if contract conditions are met) and the interest rate is not more than 1% if contract conditions are met (and 3.48% if not met). The proceeds of the loan from the IFA shall be applied solely to the "Costs of the Project" as such term is defined in the Financing Contract. SECTION 2. Security. Amounts payable by the Recipient shall be payable from the sources described in Section 4 of the Financing Contract and the Oregon Revised Statutes Section 285A.213 (5) which include: (a) Revenue from any water system project of the Recipient, including special assessment Resolution No. 2014- Page l of 2 revenue; (b) Amounts withheld under subsection 285A.213 (6); (c) The general fund of the Recipient; (d) Any combination of sources listed in paragraphs (a) to (c) of this subsection; or (e) Any other source. SECTION 3. Additional Documents. The City Administrator is hereby authorized to enter into any agreements and to execute any documents or certificates which may be required to obtain financial assistance from the IFA for the Project pursuant to the Financing Documents. SECTION 4. Tax-Exempt Status. The Recipient covenants not to take any action or omit to take any action if the taking or omission would cause interest paid by the Recipient pursuant to the Financing Documents not to qualify for the exclusion from gross income provided by Section 103(a) of the Internal Revenue Code of 1986, as amended. The City Administrator of the Recipient may enter into covenants on behalf of the Recipient to protect the tax-exempt status of the interest paid by the Recipient pursuant to the Financing Documents and may execute any Tax Certificate, Internal Revenue Service forms or other documents as shall be required by the IFA or their bond counsel to protect tax-exempt status of such interest. This res lution was duly PASSED and ADOPTED this day of , 2014 d takes effect upon signing by the Mayor. 4~ 43arbara Christensen, City Recorder SIGNED and APPROVED this -7 day of Review as to form: D211 +1 t S s Co~nei~ C~ha;I.r , D vi H. Lo n, City Attorney Resolution No. 2014- Page 2 of 2 Regular City Council Meeting December 2, 2014 Page 3 of 10 small town feel of Ashland. Increasing the height of the commercial area would change the entire look of the downtown radically and was another reason she would opposed the ordinance. Roll Call Vote: Councilor Marsh, Lemhouse, Slattery, Morris, and Rosenthal, YES; Councilor Voisin, NO. Motion passed 5-1. UNFINISHED BUSINESS None NEW AND MISCELLANEOUS BUSINESS 1. Talent Ashland Phoenix Emergency Pipeline Intertie project update and approval of Medford Water Commission wholesale agreement Public Works Director Mike Faught explained staff had taken a project that typically took two years and accomplished it in five months. He introduced and thanked key staff Morgan Wayman, Steve Walker, Scott Fleury, Dave Lohman, Dave Kanner, Mike Morrison, and contract Design Engineer Jeff Ballard from RH2. He thanked Oregon Department of Transportation (ODOT), and Jackson County for expediting the permit process. Mr. Ballard presented the Mayor and Council with plaques in honor of the project. Councilor Voisin thanked Senior Engineer Pieter Smeenk for acquiring the $2.9 million loan that enabled the City to afford the project. Mr. Faught thanked Chris Peters, a consultant who helped Mr. Smeenk work on the loan. In order to meet the September deadline, the City built a temporary pump station on a right of way and was presently negotiating the property purchase. Of the $559,120 spent to construct the temporary facility, $115,876 could not be re-used at the new site. Associated costs for professional services on final construction totaled approximately $151,600 leaving a balance of $478,973 to complete the permanent pump station. Mr. Faught reviewed the options RH2 researched for future expansion from 2.13 million gallons of water per day (mgd) to 3 mgd. He also contacted Ray Bartlett from Economic and Financial Analysis who reported revenue short falls but did not think it would necessitate a rate increase. The City had 18 months to move the temporary pump station 150 feet to another lot. Mr. Ballard addressed Option 2 and explained two pumps provided redundancy at a smaller amount to generate 2.13 mgd. The second pump was smaller than the rented one. There was a possibility to align the pumps differently to function depending on the flow rates required. Mr. Faught clarified it was not cost effective to build a shell at this time because of the unknown of what was needed 5-10 years from now. Mr. Ballard further clarified they were building half of a shell, completing the remainder of the shell was not recommended considering the amount of mechanical and electrical required for the space. It would also cost the same as funding a full pump station. Mr. Faught went to explain the City had the foresight to raise rates in anticipation of the TAP project and created the surplus money to pay the debt in the future. They were riot sure what that would look like ten years from now but at this time, there was no reason to raise rates. Staff also pushed a couple projects out on the 20-year plan to fund the TAP project. Mr. Ballard added because of the differences in pumps, controls, and mechanical and electrical connections, they would replace everything in order to pump 3 mgd from the permanent pump station. It would also require some remodeling. Only a small portion of the temporary system would be re-used in the permanent system. The pump was chosen because of the emergency and what was available at the time and was not the long-term solution. Mr. Bartlett included loss of water sales in the financial report. Due to conservation the City lost Regular City Council Meeting December 2, 2014 Page 4 of 10 approximately $200,000 in projected revenue, Mr. Bartlett factored that loss into the analysis and built it into the financial plan. Councilor Rosenthal/Voisin m/s to approve Option 1 TAP Pump Station project to include the acquisition of a new pump. DISCUSSION: Councilor Rosenthal explained TAP was an emergency arrangement and the City would never have to use water from the Medford water supply while Option 2 mortgaged several projects. Councilor Voisin could support Option 1, but was very disappointed they had to move the pump station because of the emergency. She supported Option 1 using the existing pump equipment. Councilor Morris liked Option 2 and thought eventually the City would end up paying the money to get to Option 2. Councilor Lemhouse agreed with Councilor Morris. He would rather spend money on a redundant system while there was momentum and cost less than it would in a decade. Councilor Slattery supported Option 2 as well. Councilor Marsh disliked both options. The City made it through the crisis without using Medford water. Option 1 provided the capacity for 2.13 mgd and there was not a budget for infrastructure costs to go to 3 mgd. Councilor Rosenthal questioned if there was enough time to research other options. Mr. Faught responded there was possibly two weeks. It would take 18-months to get everything accomplished including construction. Senior Engineer and Project Manager Morgan Wayman added the permit process and contract biding would take time. Waiting two weeks was reasonable. Mr. Ballard commented they initially started with more options but from a technical perspective and engineering mindset, these were the two best options. Mr. Faught preferred Option 2 because it prepared the City for all contingencies. Councilor Lemhouse noted both options were legitimate and preferred over preparedness to being under prepared. Councilor Voisin explained the City could have redundancy built on redundancy and still not have water if the area experienced a serious drought. Councilor Lemhouse raised a point of clarification and asked staff to explain the difference between the Ashland and Medford watershed. Mr. Faught explained Ashland had an 800-acre watershed with no reserve and a different weather pattern while the Lost Creek watershed had reserve levels specifically saved for drought years. Medford had the better system to extend water during drought than Ashland did. Councilor Voisin commented water from Medford would be extremely expensive and did not want to spend the money at this time. She suggested waiting to see the effects of climate change and make a decision then. Mr. Faught confirmed Option 1 would meet the 2 mgd requirement for emergencies. However, it was not designed to run for extended periods. Roll Call Vote: Councilor Rosenthal and Voisin, YES; Councilor Marsh, Lemhouse, Morris, and Slattery, NO. Motion failed 4-2. Councilor Morris/Slattery m/s to approve the Option 2 TAP pump station project. DISCUSSION: Councilor Morris explained Option 2 was more reliable. The two-pump system offered a back up. Roll Call Vote: Councilor Marsh, Lemhouse, Rosenthal, Morris, YES; Councilor Voisin, NO. Motion passed 5-1. Councilor Slattery/Lemhouse m/s to approve the Medford Water Commission Wholesale Water Service Agreement. Roll Call Vote: Councilor Marsh, Lemhouse, Rosenthal, Lemhouse, Voisin, and Slattery, YES. Motion passed. 2. Annual appointments to the Citizen Budget Committee and the Council liaison to the Municipal Audit Commission City Recorder Barbara Christensen received one application from Chase Mayer and Garrett Furuichi was interested in reappointment. There were three vacancies on the Commission. Council requested that the City Recorder continue to advertise for the two vacant positions on the Citizen Budget Committee and bring to council once more applications are received. Special City Council Meeting April 22, 2014 Page I of 3' MINUTES FOR THE SPECIAL MEETING ASHLAND CITY COUNCIL April 22, 2014 Council Chambers 1175 E. Main Street CALL TO ORDER Mayor Stromberg called the meeting to order at 7:00 p.m. in the Civic Center Council Chambers. ROLL CALL Councilor Voisin, Morris, Lemhouse, Slattery, Rosenthal, and Marsh were present. NEW AND MISCELLANEOUS BUSINESS 1. Talent Ashland Phoenix Pipeline Intertie Project update City Administrator Dave Kanner introduced a video regarding Ashland's water supply. Mandatory conservation would not work at this time, the reservoir was full, and there was no place to store the water. The snowpack was the lowest the area had ever seen. In previous drought years, the City supplemented the water supply with Talent Irrigation District (TID) water. This year TID was planning to shut water off in September because they did not have enough to sustain customers until the rains returned in the fall. Ashland needed 1.5 million gallons a day (mgd) to meet basic needs along with another I mgd in the streams for fish. It was possible there would not be enough water to meet basic needs and that was the impetus in expediting the Talent Ashland Phoenix (TAP) Intertie Project. Public Works Director Mike Faught explained Council needed to approve the emergency construction of the TAP pipeline, using restricted fund monies associated with the Park Estates Pump station for the project, and grant the City Administrator contracting authority in excess of $100,000 for project construction and the ability to sign the State Revolving Loan for $2,970,000. Jeff Ballard, the consulting engineer from RH2 explained his background and company's expertise. The project was aggressive and challenging and he was confident they would meet the August deadline. The permitting process with the Rail Road, Army Corp, Oregon Department of Transportation (ODOT) and the Oregon Health Authority (OHA) were underway. RH2 had better defined the project since March and established multiple options to ensure they met the target date for completion. The permit process was the most complicated part and pipe installation the easiest to accomplish. The increase in cost was due to • creating the engineering estimate in a short timeframe prior to having all the information. Costs also included a 30% contingency because RH2 at that time was not confident they could complete the project by August. Mr. Faught explained how the price went from $2,300,000 to $4,400,000. Increasing the flow from 1.5 mgd to 2.13 mgd was $400,000, the Pump Station was $150,000, upgrading pipe to ductile iron cost $250,000, the standard construction index for inflation was $210,000, and additional costs to move the project forward as an emergency project was $325,000. Engineering Services Manager Scott Fleury added the contract contained a $600 fine per day for liquidated damages. Mr. Ballard explained the regional booster pump station was designed to meet the capacity of Ashland at 1.5 mgd in 2000. Because Ashland did not tie on at that time, the controls were not set up to deliver that volume of water. They will modify the programming at the pump station to change the operation of the four pumps located at that facility. The communication and telemetry at the location was outdated and needed upgrading and was not included in the project due to the aggressive timeline. TAP would utilize the Talent pump station to pump water to Ashland and would require modifications to deliver 1.5'mgd or Special City Council Meeting April 22, 2014 Page 2 of 3 2.13 mgd. The current lines were sufficient to carry 2.13 mgd. Capacity was directly proportional to velocity. Two 12-inch pipes came off the Talent pump station, split, and eventually connected to 16-inch pipeline. Even at 3 mgd the velocity was tolerable but not recommended, 2.13 mgd was fine. The City would have to upgrade pipe on their end for 3 mgd capacity and it would be expensive. Staff wanted options for 3 mgd for possible upgrades in 2060. Mr. Ballard clarified RH2 had redundant management in place to serve in Mr. Ballard's place if needed. Kindler Stout/130 Orange Avenue/The public was not informed regarding project costs or present and future rate increases to pay. for the project. He thought the public might get behind the project after a season of shortage. He had issue with the word "emergency." The use of the word was designed to frighten the public and he equated it to extra costs. He urged Council not to advocate control of the water system out of town. ' Cate Hartzell/881 East Main/Explained she opposed the,project for years. Climate change predictions were being confirmed. TAP increased dependence on sources that would experience snow pack issues as well. The Water Master Plan talked about long-term solutions involving storage and conservation. She had issues with borrowing against capital projects and thought the $600 fine a day invited mistakes. Fear was motivating this response. B.G. Hicks/190 Vista Street/Provided his background in geology, water wells, and the forest service. The City should conduct small scale testing for wells and research trapping the water that ran over the dam. Ashland had excellent underground reservoirs. Additionally a major geological consulting firm should be employed to do a study on wells and ground water. He questioned whether the town could afford two full supply systems. Connecting to TAP could endanger Ashland's future use of ground water. Ashland had the potential for water and ground water currently not understood. Mr. Ballard explained RH2 had the experience to minimize risk for projects in expedited timeframes. Mr. Faught added a City project manager would be involved as well. If Council did not approve the project, they would stop the project, continue with the engineering, and move it to its scheduled time in 2015. Several projects were postponed to cover the expedited costs for the TAP pipeline and avoid raising rates. Staff was looking into permanent pumps and had diesel pumps secured as a back-up option. In the unlikely event the project was not in place, staff was developing multi-department contingency plans that included public notification, not planting new plants, and encouraging the public to do the same. Mr. Faught clarified the City had a robust conservation plan in place but a severe drought was about curtailment and not conservation. Councilor Marsh/Slattery m/s to approve an emergency construction procurement of the TAP pipeline. DISCUSSION: Councilor Marsh explained the project was about building redundancy. The City was not obligated to purchase water. This was a way to provide multiple options for assuring the City could provide water to the community. Councilor Slattery added this was moving a project in the Water Master Plan up one year for sound reasons. Councilor Lemhouse agreed with Councilor Marsh and reiterated TAP was about redundancy. Had Council moved on this six years ago the City would not bd in the position it is today. Rates might increase but to not do something that was in the best interest of City's public safety due to rates was a difficult call. Councilor Voisin clarified that $325,000 of project costs was actually to pay for the water. She questioned whether the City could afford two water systems in TAP and Reeder Reservoir. Councilor Morris responded there was only one water system with two sources of water for the system. Roll Call Vote: Councilor Voisin, Morris, Lemhouse Slattery, Rosenthal, and Marsh, YES. Motion passed. Special City Council Meeting April 22, 2014 Page 3 of 3 Councilor Slattery/Lemhouse m/s to approve re-obligating Park Estates Pump Station monies of 2.4 million to the TAP project. Roll Call Vote: Councilor Marsh, Rosenthal, Voisin, Morris, Slattery, and Lemhouse, YES. Motion passed. Councilor Lemhouse/Rosenthal m/s to grant the City Administrator contracting authority in excess of $100,000 for construction of the TAP pipeline. Roll Call Vote: Councilor Slattery, Lemhouse, Marsh, Voisin, Morris, and Rosenthal, YES. Motion passed. Councilor Morris/Lemhouse m/s to grant the City Administrator authority to sign a State Revolving Fund loan agreement in the amount of $2.97 million. DISCUSSION: Councilor Rosenthal noted the assurances provided were based on signs the project would be completed and hoped Council would not operate this loosely going forward in other endeavors. Roll Call Vote: Councilor Marsh, Rosenthal, Slattery, Lemhouse, Morris, and Voisin, YES. Motion passed. ADJOURNMENT Meeting adjourned at 8:30 p.m. Dana Smith, Assistant to the City Recorder J 4g Stromberg, Mayor Regular City Council Meeting March 4, 2014 Page 1 of 7 MINUTES FOR THE REGULAR MEETING ASHLAND CITY COUNCIL March 4, 2014 Council Chambers 1175 E. Main Street CALL TO ORDER Council Chair Dennis Slattery called the meeting to order at 7:00 p.m. in the Civic Center Council Chambers. ROLL CALL Councilor Voisin, Morris, Lemhouse, Rosenthal, and Marsh were present. Mayor Stromberg was absent. MAYOR'S ANNOUNCEMENTS Council Chair Slattery announced the City was accepting applications for annual appointments to the various Commissions and Committees. The deadline for applications was March 21, 2014. In addition to annual appointments, there was one vacancy on the Citizens' Budget Committee. The deadline for applications for the Citizens' Budget Committee was March 14, 2014. Council Chair Slattery moved agenda item 1. Approval of Medford Water Commission Talent, Ashland, and Phoenix System Development Charge Payment and Water Delivery Agreements under NEW AND MISCELLANEOUS BUSINESS before the UNFINISHED BUSINESS agenda item with Council consent. APPROVAL OF MINUTES The minutes of the Business Meeting of February 18, 2014 and Study Session of February 18, 2014 were approved as presented. SPECIAL PRESENTATIONS & AWARDS The Mayor's proclamation of March 8, 2014 as International Women's Day was read aloud. CONSENT AGENDA 1. Appointment of Victoria Sturtevant to the Firewise Commission 2. Request to donate fire pumper and rescue equipment to Guanajuato 3. Award of a professional services contract in excess of $75,000 for the Wastewater Treatment Plant Supervisory Control and Data Acquisition Upgrade project Councilor Voisin pulled Consent Agenda Item #3 for further discussion. Public Works Director Mike Faught and Wastewater Treatment Plant Supervisor David Gies explained the Wastewater Treatment Plant Supervisory Control and Data Acquisition (SCADA) system had degraded faster than expected and staff had to reprioritize the upgrade in the Wastewater Master Plan priority project list. SCADA was important because the plant was only staffed two thirds of the time. It was critical the system was reliable. Staff would make budget adjustments in order to cover the project. Councilor Lemhouse/Morris m/s to approve Consent Agenda item #3. DISCUSSION: Councilor Lemhouse noted that plans changed and it was important for staff to adjust projects when needed. Councilor Voisin expressed concern the Wastewater Master Plan was two years old and staff was unable to see the failure then. She thought staff should adhere to the Master Plan and would not support the motion. Voice Vote: Councilor Morris, Lemhouse, Slattery, Rosenthal, and Marsh, YES; Councilor Voisin, NO. Motion passed 5-1. Councilor Rosenthal pulled Consent Agenda Item #2 and noted his appreciation for the donation of the fire Regular City Council Meeting March 4, 2014 Page 2 of 7 pumper and rescue equipment to Guanajuato, Mexico. Fire Chief John Karns added that the Guanajuato Fire Department maintained their vehicles exceptionally well and planned to drive to Ashland with a trailer to transport the fire pumper and rescue equipment back to Guanajuato. Councilor Rosenthal/Voisin m/s to approve Consent Agenda items #1 and #2. Voice Vote: all AYES. Motion passed. PUBLIC HEARINGS - None PUBLIC FORUM Heather Stafford/100 E Main Street/Explained she was the Executive Director of the Sustainable Valley Technology Group, distributed their annual report and shared accomplishments and upcoming projects. David Sherr/Diane Street/Announced that 65% of citizens polled by the Sneak Preview disliked the Plaza pavers including 500 petitioners. He explained that during the project "checks and balances" were disregarded by staff and questioned why renderings depicting salmon colored pavement were shown to the public and press the entire design process then gray pavers installed. He questioned why the City Administrator was unaware of the choice, why the decision was kept out of the press and why Council would not divulge when the decision was made. Showing salmon colored paving in an illustration for nine months was the same as promising them. He wanted Council and staff to keep that promise, citing both had given false impressions to the public and press. NEW AND MISCELLANEOUS BUSINESS 1. Approval of Medford Water Commission Talent, Ashland, and Phoenix System Development Charge Payment and Water Delivery Agreements Public Works Director Mike Faught explained the 2012 Water Master Plan identified the need to construct the emergency Talent Ashland Phoenix pipeline (TAP) in 2015. Staff began working with the Medford Water Commission (MWC) on System Development Charges (SDC) October 2013. The plan was finish negotiations, hire an engineering firm, and construct the pipeline in 2015. Severe low snowpack and winter drought conditions caused staff to recommend moving the project up to 2014. Staff recommended 3,000,000 million gallons a day (mgd) but could get by using 2.13 mgd along with 2 mgd from the Talent Irrigation District (TID) and 2 mgd from Ashland Creek. Construction would be on an aggressive schedule to have it built by August 15, 2014 when typically Ashland needed additional water. Currently Mt. Ashland had 17-20 inches of snow pack. The TAP project would require 14,000 linear feet of line and a pump station. Staff had selected an engineering firm, and the next step was formalizing an agreement with the MWC for water delivery. The MWC would raise SDCs on April 1, 2014 making the SDC for 3 mgd $3,967,000 when it was currently $3,690,000. Mr. Faught explained that staff arrived at 2.13 mgd by taking the 1,000 acre feet water right and dividing it by five months. In addition to the SDC, MWC would charge .55 cents per 1,000 gallons to treat and transfer the water to Ashland. The SDC was not included in the Water Master Plan because the City was under the impression emergency water use did not incur those charges. However, when the City discussed an agreement prior to 2008, MWC made capacity improvements in anticipation of connecting Ashland to TAP. Ashland decided not to participate and now was responsible for paying MWC for those improvements through SDCs regardless. Senior Engineer Pieter Smeenk explained TID charged .39 cents per 1,000 gallons. In addition to the .55 cents per 1,000 gallons, MWC would charge pumping costs at .10-.20 cents per 1,000 gallons for a possible total cost of .65-.70 cents per 1,000 gallons depending on which pumper system Ashland chose. Financial Analyst Ray Bartlett from Economic & Financial Analysis explained how the additional Regular City Council Meeting March 4, 2014 Page 3 of 7 $3,500,000 would fit into the Master Plan budget. The Water Master Plan forecast was conservative in revenue and generous in operating expenses. After a year, the City would produce $300,000 more a year in net revenue than was anticipated. The City obtained cheaper financing for approximately $12,000,000 of the $34,000,000 the City was planning to spend over the next five years through an Oregon State Revolving fund loan at 1-1.5% instead of the 5% anticipated in the Master Plan. This would save the City $340,000 a year due to the interest rate adjustment. Building the TAP line would reduce construction costs for the Crowson II Reservoir by $1,300,000. Depending on how much the City put down, which was $396,000 year one to MWC, the City could pay off the balance over the next 20 years. The City had some options through negotiations with MWC that allowed pre-paying the loan without penalty or otherwise pay off equal amounts over a 20-year period. The City faced $37,000,000 additional debt over the next 5-6 years and would tailor that second payment to reduce the amount of new debt service to Medford and at the same time hold cash reserves for emergencies that might come up. Mr. Bartlett ran the forecast assuming half the balance would be paid off by Fiscal Year 2016. At that point, the City would evaluate where it stood financially. There were unknowns and risks with Capital Improvement projects where preliminary engineering estimates could come in below or above budget project by project. There was also potential long-term drought that might affect water revenue. Then there was the economy and where it would grow in Ashland to produce additional revenues. The forecast kept the growth analysis at a conservative .5%. The City had managed its debt well and taken every opportunity to reduce debt service and that helped. Mr. Faught added the City could afford this if Council continued to raise rates as adopted in the current Water Master Plan. Mr. Smeenk addressed the 1 % loan with the state and clarified the City could apply for one loan each year. Subsequent loans depended on changing conditions and competition. Staff went on to explain if the City did not hook into TAP, Ashland would have 4 mgd with a general demand of 6 mgd that would result in curtailment. Additionally the City could incur a severe reduction in revenue. Mr. Smeenk clarified the Crowson 11 Reservoir savings of $1,300,000 would occur because the City would not need as much storage with TAP and could reduce the size by 500,000 gallons. Cost constraints prevented the City from having both. The TAP pipeline would allow the City to refill Crowson 11 Reservoir if needed in an emergency and the water was already treated. The contract stated the City's 1,000 acre feet water right was during the summer months and Medford would meet that same demand with their water during the winter months. Staff asked the two engineering firms how they would meet the deadline and whether the budget was realistic. The engineering firms response expressed concern the $2,300,000 was not enough to cover 3 mgd. An analysis would provide a concrete figure by March 21, 2014. If Council chose 3 mgd and it cost more, the City would have to raise rates. Mr. Faught clarified Medford had a much larger watershed and could probably experience 2-3 years of drought conditions before having issues. Medford would use an equal curtailment that applied to everyone. TID had a similar curtailment policy as well. He confirmed the .70 cents per 1,000 gallons was included in the current and anticipated rates. If Council chose 2.13 mgd and Ashland exceeded that amount, the City would owe MWC the extra SDCs immediately, MWC would not cut the water supply. The City's current pumping facility could handle 2.5 mgd and staff was researching a second pump for 3 mgd. Conservation and curtailment efforts helped but would have a large impact on City revenue. The $337,000 in the Water Master Plan covered water from Medford and was not an annual cost, only when needed. Mr. Bartlett clarified the latest analysis increased that amount. They adjusted the forecast to account for changes that had occurred since the Water Master Plan. Regular City Council Meeting March 4, 2014 Page 4 of 7 Ron Roth/6950 Old Hwy 99 S/Opposed the TAP project since it was initially proposed. TID was the secondary water source. The WISE (Water for Irrigation, Streams, and Economy) group promoted piping all the canals in the valley to save massive amounts of water. Approximately 25%-30% of water was lost to evaporation and leakage. He estimated the TAP project would cost at least $6,000,000 if Council went with 3 mgd and cost $300 per capita for Ashland citizens. He spoke to the Medford Water Commission and asked if they were short on water, what would happen, it was a board decision they had not made yet. There was no guarantee. If the City waited until next year, it would cost $314 per capita. The curtailment in 2009 was not necessary had there been more anticipation. The City did not use TID until Reeder Reservoir dropped below 60%. He suggested filling Reeder Reservoir with TID as it lowered instead of waiting for the level to drop below the 60% mark. Councilor Voisin/Marsh m/s to approve granting authority to authorize the City Administrator to complete negotiations and sign the MWC Water Delivery Contract and SDC payment agreement for 2.13 mgd of water. DISCUSSION: Councilor Voisin explained there were two reasons to have TAP. One was redundancy and the other for emergencies like fire and flood. She also wanted to find ways to increase and encourage conservation at the same time. Councilor Marsh added the City needed to develop alternative water sources. She noted language in the MWC contract that stated the MWC was under no obligation to act in the best interest of any customer outside the City of Medford. The City could pay additional SDCs later for 3 mgd. The 2.13 mgd covered the bulk, and the remaining would not be as expensive. That also gave the City time to sort out what was really happening with the drought, TID, and financing options. Ashland definitely needed the 2.13 mgd as it moved into climate change and unpredictable conditions. Councilor Lemhouse would have preferred 3 mgd instead of 2.13 mgd but would support the motion. The option of not doing the project was not good. The first responsibility of Council was protecting the citizenry. Councilor Rosenthal would have supported the 3 mgd option but this made sense. Choosing this option may not increase rates and the 3 mgd would have. This was an insurance policy for community. Councilor Morris also preferred the 3 mgd due to Ashland's storage and reservoir capacity issues but understood they could go up to that amount another time if needed. Council Chair Slattery supported the motion. Roll Call Vote: Councilor Voisin, Marsh, Lemhouse, Slattery, Rosenthal, and Morris, YES. Motion passed. City Administrator Dave Kar►ner addressed the possible $1,000,000 savings due to Council choosing 2.13 mgd instead of 3 mgd and explained staff did not know actual costs for the project at this time. This was an emergency procurement and staff would not know actual costs until they had a completed engineering plan. Reducing the size of Crowson II Reservoir would save the City $1,300,000 but it was unknown whether that amount would be necessary for the TAP construction and pump installation or if there was a savings that would go into the unappropriated fund balance in the Capital Improvement Fund. BUSINESS 1. First Reading by title only of an ordinance titled, "An ordinance amending AMC Chapter 2: Rules of City Council; Uniform Policies and Operating Procedures for Advisory Commissions and Boards; Recreation Commission; Conservation Commission; and Certain Administrative and Operating Departments" City Attorney Dave Lohman explained the following changes: 2.04.010 Authority (E) allowed suspension of the rules in limited circumstances. Mr. Lohman would add a list of circumstances. 2.04.010 Authority (F) clarified the City Attorney as parliamentarian and not the decision maker. 2.04.020 Meetings Study Sessions Councilor Voisin suggested allowing 15 minutes for Public Forum during Study Sessions. Mr. Lohman would retain the current language and bring possible amendment Minutes for the City Council Study Session February 18, 2014 Page 1 of 2 MINUTES FOR THE STUDY SESSION ASHLAND CITY COUNCIL February 18, 2014 Council Chambers, 1175 East Main Street Mayor Stromberg called the meeting to order at 9:29 p.m. in the Civic Center Council Chambers. Councilor Voisin, Morris, Lemhouse, Slattery, Rosenthal, and Marsh were present. 1. Review, discussion and Council direction to staff regarding an ordinance or ordinances relating to the open carry of weapons and minor's access to weapons City Attorney Dave Lohman explained that the two proposed ordinances discussed at the February 3, 2014 Study Session originated from a citizens group. One proposed ordinance would ban under certain circumstances open carry of loaded firearms as well as open carry of unloaded firearms with attachable magazine and clip, and would allow police inspection of an open carry weapon to determine whether it is loaded. The other ordinance would make it illegal to give minors access to firearms without appropriate permission. At February 3, 2014 Study Session, Council requested that staff bring back a draft ordinance that had a good chance of withstanding judicial scrutiny and requested more information from the eleven cities in Oregon that had similar ordinances. Police Chief Terry Holderness contacted the eleven cities and found some had modified their ordinances to be consistent with the City of Portland. Not one city had attempted to measure the impact on community, reviewed crime statistics, or did an analysis of impact. The Police Department planned to conduct an active analysis on their own but found that data for ordinances established in the 1970s was no longer available or the ordinances were too recent to have comparative data. The City of Beaverton passed similar ordinances in 2000 and their data did not reveal anything. Chief Holderness addressed probable cause as it related to determining whether a gun was loaded. The Oregon Supreme Court in 1991 made a decision on a case in Portland that stated the only real reason someone would have to carry a weapon was to use it and it was reasonable to assume barring other information that if someone is carrying a gun it was loaded. The fact someone was carrying gun and an officer could not determine whether the gun was loaded established probable cause in Oregon law. Mr. Lohman added the case was not overturned and the Supreme Court denied review. However subsequent cases that referred to it made it clear the issue was and still is whether an officer needed reasonable suspicion a crime was committed before the police can make a stop. Once the police made the stop, the stop and frisk statute kicked in and the police had the ability to inspect at that time. The police needed to establish reasonable suspicion that a crime was committed before they could inspect the weapon. Chief Holderness explained the police had the right to have a consensual encounter with anyone and that individual could choose not to respond. None of the eleven cities had ever cited or arrested someone during a failure to inspect a weapon. Mr. Lohman clarified a city that continually charged people then subsequently dropped the charges prior to prosecution would not run the risk of false arrest but could face an equal protection claim. He went on to explain the staff-proposed ordinance did not include banning ammunition, inspection by the police and child access in order to have an ordinance that had the best chance to withstand litigation. Banning loaded open carry had a high likelihood of withstanding judicial scrutiny due to a specific exemption in the state preemption law that stated local governments could enact a provision to ban loaded open carry under certain circumstances. The other two elements, banning ammunition, and inspection by the police, could be subject to challenge in court. A specific preemption in the state statute stated local Minutes for the City Council Study Session February 18, 2014 Page 2 of 2 governments could not enact any ordinances concerning ammunition. Police inspection could end up in litigation due to the Fourth Amendment. The only element highly likely to withstand judicial scrutiny was the ordinance he presented that just concerned open carry of loaded weapons. In addition, it was unknown whether the case challenged in Portland would be appealed to federal court. The ordinance preventing minors' access to firearms might not withstand scrutiny and could invite litigation. One reason was the preemption statute contained a provision stating local government could not enact provisions regarding storage of firearms. He went on to explain his document Realistic Options for Council Action on Firearms Restrictions provided Council with 13 options that involved ordinances, resolutions, referrals, and taking no action. If Council wanted to add something to the ballot for May 20, 2014, they would need to act at the March 4, 2014 meeting. City Administrator Dave Kanner clarified insurance would not cover lawsuit fees related to a policy decision by the City Council. Liability insurance provided coverage for alleged negligence on the part of the City that resulted in tortuous harm to a litigant. City Recorder Barbara Christensen would provide Council with the initiative process for citizens. Mr. Kanner noted slight consensus from Council in favor of adding Mr. Lohman's draft ordinance and making the options listed in the Realistic Options for Council Action on Firearms Restrictions available for public testimony during the March 18, 2014 Council meeting. Staff would also post the options on Open City Hall. Council agreed. Council discussed their concern adding the original ordinances from the citizens group to the agenda since the ordinances as written could result in taxpayers paying high litigation fees. A Councilor could make a motion to add an ordinance or have the original ordinances considered without it being on the agenda. Meeting adjourned 10:30 p.m. Respectfully submitted, Dana Smith Assistant to the City Recorder CITY OF ASHLAND Council Communication March 17, 2015 Business Meeting Approval of an Intergovernmental Agreement for Lidar Data Acquisition FROM: Jason Wegner, GIS Manager, Public Works, wegnerj@ashland.or.us SUMMARY This is an Intergovernmental Agreement (IGA) with the Oregon Department of Geology and Mineral Industries (DOGAMI) to acquire Lidar, a 3D map of the City. BACKGROUND AND POLICY IMPLICATIONS: The efficiency of the Geographical Information Systems (GIS) program is dependent on current and up to date data. One important data component includes 3D mapping of the City, known as Lidar. Lidar is a remote sensing method used to generate precise, three-dimensional information about the surface of the earth. It stands for "light radar" or "light detection and ranging" and uses a laser to collect the information. Lidar can be used to examine both natural terrain and manmade features. The City of Ashland can use it for infrastructure related projects, specifically in the planning and design phases for major capital projects. Forestry applications include aiding in generating tree counts and timber volumes in the Ashland Watershed. Conservation applications include solar exposure analysis and determining suitability for new solar panel installations. DOGAMI has established a multi-partner Lidar collection group called the "Upper Rogue 2015 Lidar Project," and with approval of the IGA Ashland will be a funding partner in the project. As additional background, GIS provides many services for the City of Ashland to both internal and external customers. In a general sense GIS provides the management, storage, editing, analysis and sharing of spatial and geographic information. GIS applications are tools that allow users to create interactive queries (user-created searches), analyze spatial information, edit data in maps, and present the results of all these operations. Primary functions related to the City's GIS include traffic accident reporting and compilation; creating and maintaining the City's utility infrastructure maps (water, sewer, streets, storm drain, electric); development and maintenance of mobile mapping applications for field crews; address assignments; cartographic design and production of specialty maps; and development of other specialty applications. Public services include over-the-counter mapping; maintaining access to digital data for general public queries and development of online web applications highlighting, among other things, Ashland's history, parks, and cemeteries and can be found on the City's website at www.ashland.or.us/Pageasp?NavlD=16588. COUNCIL GOALS SUPPORTED: N/A Page 1 of 2 1, CITY OF ASHLAND FISCAL IMPLICATIONS: The cost for the Lidar project is $11,060. The Engineering Division will pay $8,848 and Ashland Fire and Rescue will pay $2,212 from the current budget year. STAFF RECOMMENDATION AND REQUESTED ACTION: Staff recommends approving the IGA for Lidar acquisition. SUGGESTED MOTION: Move to approve State Of Oregon Contract 41300-021122015 Lidar Data for City of Ashland ATTACHMENTS: 1. State Of Oregon Contract 41300-021122015 2. Lidar Data Area Map Page 2 of 2 DOGAMI Contract # 41300-02112015 STATE OF OREGON CONTRACT 41300-021122015 Lidar Data for City of Ashland THIS AGREEMENT is made and entered into by and between THE STATE OF OREGON, acting by and through the Department of Geology and Mineral Industries, hereinafter referred to as "DOGAMI," and City of Ashland, hereinafter referred to as "Ashland". Unless otherwise stated, the designees named below shall be the contact for all activities relating to the Work/Services to be performed under this Agreement. Ashland Designates: DOGAMI Designates: Name/Title: Dave Kanner / City Administrator Name/Title` Jacob Edwards/ Lidar data Coordinator Address: Address: 800 NE Oregon St, Suite 965 City, State zip code: Ashland, Oregon 97520 City, State, zip code: Portland, OR 97232 Phone: Phone: 971-673-1542 Fax: Fax: (971) 673-1562 Email Email.- . acob.edwards@dogami. state. or. us 1. EFFECTIVE DATE AND DURATION: This Agreement becomes effective on the date at which Ashland and DOGAMI both have signed this Agreement. Unless earlier terminated or extended, this Agreement expires when DOGAMI's completed performance has been accepted by Ashland, or June 30th , 2016, whichever date occurs first. II. AMENDMENTS: This Agreement may be amended. No changes to or waivers of provisions of this Agreement will be valid until they have been reduced to writing, approved and signed by all parties. III. AUTHORITY: Subject to OAR 632-001-0020, DOGAMI is authorized by ORS 516.035 to enter into contracts or agreements with a person, a public body as defined in ORS 174.109 or the federal government or an agency thereof, pursuant to which the department performs geoscientific surveys or analyses. DOGAMI is the "Authorized Purchaser" to acquire lidar data under State of Oregon Agency-Specific Price Agreement 8865 (Price Agreement) and the manager of the Oregon LIDAR Consortium. 1 Upper Rogue 2015 Lidar Project DOGAMI Contract # 41300-02112015 IV. STATEMENT OF WORK: Under such authority, DOGAMI has established a multi-partner lidar collection called the "Upper Rogue 2015 Lidar Project", and Ashland is a funding partner in that project. The extent of the project is shown in Figure 1 of this agreement, and the project area will cover at least 250 square miles. DOGAMI and Ashland agree that Ashland shall provide funding for approximately 20 square miles of the total. Agency-Specific Oregon Price Agreement (OPA) 8865 that identifies Watershed Sciences as the lidar Contractor of DOGAMI is attached hereto as Exhibit A and by this reference made a part hereof. The Upper Rogue 2015 Lidar Project is over 250 square miles, so the Contractor price for the Ashland area of interest is set at $451 per square mile. DOGAMI shall add a 22.7% project management and quality control services fee ($102 per square mile) in addition to the direct costs charged by the Contractor to acquire the lidar data and deliverables, as defined in section 2.1 of Exhibit A. This 22.7% fee corresponds to the current effective federally negotiated Indirect Cost rate for DOGAMI. The net unit cost to Ashland is $553 per square mile. DOGAMI shall collaborate with Ashland on a best effort basis in directing the Contractor to acquire data during leaf-off, low-water and snow-off conditions. However, given the large scope, variable terrain, unpredictable weather, and general need to acquire lidar data in an efficient manner and on a timely basis, Ashland hereby agrees that DOGAMI has the sole authority to plan and authorize data acquisition by Contractor and accept or reject the final deliverables from the Contractor Ashland may communicate with the Contractor exclusively through DOGAMI. DOGAMI shall provide Ashland with regular updates, nominally on a monthly basis, regarding the project status including amounts of data collection and data processing by the Contractor and status of deliverables. As a funding partner Ashland is entitled to receive all data collected for the Upper Rogue 2015 Lidar Project. Data will be provided to Ashland when it has been finalized, and will be copied onto an external hard drive that Ashland shall provide. 2 Upper Rogue 2015 Lidar Project DOGAMI Contract # 41300-02112015 City of Ashland AOI I t r Upper Rogue Phase 1 A01 Upper Rogue Phase 2 AOI UpperRogue Phase 3 - 3DEPA01 7.4 Exisiting Lidar f I - )1 l) , .LJ War (nformeHon:JokeEdiwardw,IDOGA41!~ r r pc~K cse oi s FAD c" IRCAIf Fa Yr5'. ! J _Aa .tt,',f tl'r. *1> >hS+f j#anb.cSiKraMa~dogarryi.at: o,acut -(871)673-1667 ,wri s, , Figure 1. Approximate extents of the Upper Rogue 2015 Lidar Project. V. CONSIDERATION: A. Ashland agrees to pay DOGAMI an amount not to exceed $11,060 for performance of this agreement. The basis for this cost estimate is: 20 square miles x $553 per square mile. B. DOGAMI shall invoice Ashland in accordance with the payment terms of OPA 8865 for the full amount, with all payments completed, prior to June 30 2015. C. Ashland shall make payment to DOGAMI within 30 days after the invoice date. Ashland agrees that such payment is necessary for DOGAMI to pay Contractor. D. DOGAMI agrees to submit a final invoice for work completed under this agreement, not later than 45 days after the expiration date of this agreement. E. DOGAMI agrees to submit invoices for payment to the Ashland Designate named above. VI. SUBCONTRACTS: 3 Upper Rogue 2015 Lidar Project DOGAMI Contract # 41300-02112015 DOGAMI shall not enter into any additional subcontracts for any of the work scheduled under this agreement without obtaining prior written approval from Ashland. VII. TERMINATION: This agreement may be terminated at any time by mutual written consent of both parties. If contract is terminated by DOGAMI after Ashland has made payment to DOGAMI, and DOGAMI is unable to deliver LIDAR data to Ashland, all funds will be returned to Ashland within 60 days of termination. Ashland may terminate this agreement effective upon delivery of written notice to DOGAMI, or at such later date as may be established by Ashland, under any of the following conditions: A. If DOGAMI fails to provide services called for by this agreement within the time specified herein or any extension thereof. B. If DOGAMI fails to perform any of the other provisions of this agreement or so fails to pursue the work as to endanger performance of this agreement in accordance with its terms, and after receipt of written notice from Ashland fails to correct such failures within ten days or such longer period as Ashland may authorize. Termination of this agreement does not prejudice any rights or obligations accrued to the parties prior to termination. VIII. COMPLIANCE WITH APPLICABLE LAW: DOGAMI shall comply with all federal, state and local laws, regulations, executive orders and ordinances applicable to the Work under this Agreement, including, without limitation, the provisions of ORS 279C.505, 2790:515, 279C.520, and 279C.530, which are incorporated by reference. Without limiting the generality of the foregoing, DOGAMI expressly agrees to comply with: (i) Title VI of the Civil Rights Act of 1964, (ii) Section V of the Rehabilitation Act of 1973, (iii) the Americans with Disabilities Act of 1990 and ORS 659A.142, (iv) all regulations and administrative rules established pursuant to the foregoing laws; and (v) all other applicable requirements of federal and state civil rights and rehabilitation statutes, rules and regulations. IX. RECYCLED PAPER: DOGAMI agrees to use recycled paper for all reports which are prepared as part of this Agreement. This requirement applies even when the cost of recycled paper is higher than that of virgin paper. X. NON-APPROPRIATION: The State of Oregon's obligations under this Agreement are conditioned upon Agency's receiving funding, appropriations, limitations, allotments, or other expenditure authority sufficient to allow Agency, in the exercise of its reasonable administrative discretion, to 4 Upper Rogue 2015 Lidar Project DOGAMI Contract # 41300-02112015 meet its obligations under this Agreement. Nothing in this Agreement is to be construed as permitting any violation of Article XI, section 7 of the Oregon Constitution or any other law regulating liabilities or monetary obligations of the State of Oregon. XI. MERGER CLAUSE: This agreement constitutes the entire agreement between the parties. No waiver, consent, modification or change of terms of this agreement shall bind either party unless in writing and signed by both parties and all necessary approvals have been obtained. Such waiver, consent, modification or change, if made, shall be effective only in the specific instance and for the specific purpose given. There are no understandings, agreements or representations, oral or written, not specified herein regarding this agreement. DOGAMI and Ashland acknowledge that they have read this agreement, understand it and agree to be bound by its terms and conditions. AGREED: Department of Geology & Mineral Industries: Approved By: 93-6001955 Name/Title Andree Pollock, Assistant Director GS&S Date Federal ID # City of Ashland Approved By: Name/Title Dave Kanner, City Administrator Date, Federal ID # 5 Upper Rogue 2015 Lidar Project 3 24 19 2 21 22 23 24 19 6 25 3 29 7 26 25 30 oo~~ ~FY 36 3 y~Y9 33 34 35 36 31 9 1 6 y~ 4 3 2 1 6 Na 12 7 8 ST 1 12 7 ASHLAND ST 13 18 S p~ Ci X z 24 1 2 21 22 23 24 GN y~Y 19 66, 25 30 2 \ 28 27 26 25 30 36 1 32 33 34 35 36 31 1 6 5 4 3 2 1 6 Lidar Acquisition Area Map Legend CITY OF Q Lidar Acquisition Area 1 inch = 1 mile -AS H LAN D 0 0.25 0.5 1 1.5 2 QCity Limit Miles 0 Sections MAProj_MAP\2015-1-27 LidarAcquisition\mxd\lidar2.mxd CITY OF ASHLAND Council Communication March17, 2015, Business Meeting Process for Implementing Welcome Signs Beautification Project FROM: Ann Seltzer, management analyst, seltzera a,ashland.or.us SUMMARY The Downtown Beautification Committee requested that the Public Art Commission (PAC) oversee the process of commissioning permanent welcome signs. The Council requested the opportunity to review the process for each of the beautification projects. The PAC is seeking approval from the City Council to move forward with its proposed process to commission and install permanent "Welcome to Ashland" signs. BACKGROUND AND POLICY IMPLICATIONS: The Downtown Beautification Committee recommended a number of beautification projects which the Council approved in September 2014. These projects will be implemented using transient occupancy tax revenues for city capital projects that qualify. One approved project is the installation of "Welcome to Ashland" signs at the city's entryways, a project that will be overseen by the Public Arts Commission. The PAC proposes to issue a Request for Qualifications (RFQ) for qualified graphic designers with experience developing visual aspects of wayfinding, communicating identity and shaping a sense of place. Applicants who wish to be considered for the project should have experience working with stakeholders and a proven ability to fabricate their own work or to work with fabricators and installers. The selected designer will work with the PAC to develop the goals and objectives of the project. The PAC envisions forming a subcommittee with representatives from both the PAC and representatives from the Beautification Committee to work with the selected designer. The PAC will discuss and develop the timeline at its upcoming meeting. They anticipate the overall time frame to be four to six months. COUNCIL GOALS SUPPORTED: N/A FISCAL IMPLICATIONS: The budget for this project is $24,000. Funds are available and budgeted. Page I of 2 ~r, CITY OF ASHLAND STAFF RECOMMENDATION AND REQUESTED ACTION: Staff recommends approval of the proposed process. SUGGESTED MOTIONS: I move approval of the proposed process to implement permanent welcome signs. ATTACHMENTS: Draft RFQ for Welcome Signs Page 2 of 2 Irm 'Will CITY OF -ASHLAND DRAFT Call for Artists Request for Qualifications (RFQ) Welcome to Ashland Signs The Proiect The City of Ashland Public Art Commission is seeking a graphic designer(s) or graphic design team to develop permanent, original, artistic city-entry signs that welcome people to Ashland. The signs will be located in three locations and will replace the current signs at: the North entrance to Ashland on Highway 99 adjacent to the railroad trestle; on the median on Highway 66 near Exit 14 and adjacent to Highway 99 on the north side of Tolman Creek Road. The application deadline is 5:00 p.m. [Date]. Proiect Intent The vision for this project is welcome signs that communicate identity and convey a sense of place. The city of Ashland is the cultural hub of southern Oregon, and is an active performance and visual arts community. The signs should act as an expression of the uniqueness of the city. and articulate and enhance the experience of entering town. The signs: ■ Must be readable and durable ■ Must comply with city and_QDOT requirements ■ Must meet the objectives developed with the appointed committee ■ Must require minimum maintenance Criteria The Public Art Commission will evaluate all submissions based on the following criteria: • Examples of prior relevant work • Placemaking experience Experience working within the collaborative processes in public settings • Professional graphic design expertise • Statement of approach Experience fabricating and installing permanent artwork suitable for the outdoor environment • Project management experience Eligibility This opportunity is open to established professional graphic designers living in Oregon. Applicants should have experience developing the visual aspects of wayfinding, communicating identify and shaping a sense of place. Only professional designers with reviewable portfolios are eligible to submit qualifications. The selected designer will work with the Public Art Commission to align and coordinate the goals and objectives of the project. Applicants who wish to be considered for this project should have experience working within the public process, working with stakeholders and a proven ability to fabricate their own work or to work with fabricators and installers. The design must be original, demonstrate artistic excellence and RFQ Welcome Signs Page 1 of 2 March 2015 CITY OF ASHLAND reflect the goals and objectives developed in conjunction with the committee. It must be designed to be adequately and safely displayed, maintained and secured. The selected designer will be required to provide evidence of appropriate liability, property damage, and workers compensation insurance while working on the site. The Award(s) ■ Up to $24,000 will be awarded to the selected designer. This budget includes graphic design, fabrication, delivery and installation as well as the designer fee, travel, up to four group meetings and other direct costs. The Process [Date] is the deadline for submittals. The Public Art Commission will review the submittals, select the finalist who will be notified by [Date]. How to Apyl Designers interested in this project must prepare and submit a single PDF and include the following: 1. Letter of Interest (Required): A letter not to exceed two pages outlining your interest in this project, experience working on comparable projects and a statement of approach, Letter must include mailing address, email, phone number, and web site of the designer. 2. Professional Resume (Required). A resume not to exceed two pages. Include designer's training, professional experience, and design and experience in environmental design. If submitting as a team, an individual resume should be submitted for each team member. 3. Images (Required). A maximum of ten (10) images of a variety of prior projects. Ten images per application, not per team member. Each image must be numbered and include the title, date of completion/installation, media, dimensions (hek,fit x width x depth, in feet), location, project budget, final project cost and a brief description of the work. Include the designer name and date on each page. 4. Professional References (Required): A list of three (3) prior project references with contact information for the funding agency (name, title, organization, mailing address, phone number, and email address) and a brief description of the relationship with reference, name, location, date and cost of the project. 5. Support Materials (Optional): A maxirnum of three (3) pieces of support materials, such as exhibition announcements, reviews, or newspaper clippings. As noted above, the entire submission inust be a single PDF. Submissions must be submitted electronically as an email attachments and received by 5:00 p.m. on [Date]. Email the submission to: seltzera@ashland.or.us Additional Information If you have any questions or need any additional information, please call Ann Seltzer at (541) 552-2106 or email her at seltzer@ashland.or.us RFQ Welcome Signs Page 2 of 2 March 2015 Locations of Welcome to Ashland Signs North Main :t Ashland Street Highway 99 xp b~O O RINGS V O = O\) V) y Z Q~~ O O z F-- W V v ~ M tn O v o W z h 4 w C/) F- s LLI Of w / 4 cnP~N sT w, ppla ~ is CITY OF ASHLAND Council Communication March 17, 2015, Business Meeting First Reading of an Ordinance Amending Title 18 Land Use of the Ashland Municipal Code for Accessory Travelers' Accommodations FROM: Bill Molnar, Community Development Director, molnarb@ashland.or.us SUMMARY This proposed ordinance would allow as a conditional use Accessory Travelers' Accommodations, a newly defined limited form of short term accommodation. The Planning Commission recommended approval of land use ordinance amendments that identify accessory travelers' accommodations in multiple family zoning districts, R-2 and R-3. The Planning Commission was split (3 to 3) on whether to recommend a similar provision in single family and suburban residential zoning districts, R-1 and R- 1-3.5 respectively. Adoption of the ordinance will establish special use standards that apply to accessory travelers' accommodations that address management, number of rooms, maximum occupancy, kitchen facilities and prepared meals, location and other site considerations. Specifically, the homeowner is required to be present during operations, may rent up to two rooms to a single party traveling in one car (maximum 2 persons per room), and cannot offer kitchen facilities or prepared meals. Accessory travelers' accommodations would be subject to the same requirements that currently apply to standard travelers' accommodations for licensing, taxes, advertising and safety inspections. BACKGROUND AND POLICY IMPLICATIONS: The City has had an ongoing problem with unlicensed short term accommodations in all of its residential zones. These facilities, which operate without conditional use permits or business licenses and without paying transient occupancy tax, will often advertise on web sites, making them relatively easy to identify for code enforcement purposes. Since May of 2012, when the City began more vigorous code enforcement efforts with regard to illegal short term accommodations, about 60% to 70% of the code enforcement actions have been targeted at facilities in single family zones. Since reinstatement of a city code compliance specialist, there has been a noticeable reduction in unlicensed short term rental activity, which has permitted staff resources to be directed toward other areas of municipal code compliance. On November 4, 2013, the City Council discussed potentially permitting short term accommodations on owner-occupied properties in single-family zoning districts, and requested that the Planning Commission evaluate the issue and make recommendations to Council. After holding a series of public meetings, the Commission provided a report and their findings at the July 1, 2014 Council meeting. Rather than including an analysis of the benefits and impacts associated with continuing the current prohibition on short term travelers' accommodations in single family zoning districts, the Commission's report identified appropriate measures and code standards that would minimize impacts Page 1 of 4 ~r, CITY OF ASHLAND should the Council decide to allow the use. After receiving public testimony on the report, the Council directed staff and the Planning Commission to draft an ordinance for its consideration. Ordinance Objectives How a city addresses the impacts associated with short term accommodations is strictly a local choice, unique to that community and influenced by its history and values. Much of the discussion surrounding this issue falls into the following areas that are important when considering the overall well being of the community. • Protection of neighborhood character • Expansion of individual property rights & increased consumer choice • Long term rental housing Under the proposed ordinance, a homeowner residing in his/her primary residence is allowed to operate an accessory travelers' accommodation and rent not more than two bedrooms to a single party, under a single reservation and traveling in one car. Two off-street parking spaces must be located on the property and the accommodation is limited to a maximum of two persons per room. The homeowner is also expected to be present during the operation of the accommodation. The Planning Commission found that these provisions would provide safeguards to ensuring minimal impact on the character of the neighborhood. The homeowner would be available to address any concerns over the operations of the accommodation should any issues arise. The national phenomenon of short term accommodations taking the attention of many communities can be attributed to a variety of reasons. Internet services have increased the availability of lodging choices for the consumer, while property owners see an opportunity to financially benefit from what has been defined as the sharing economy, through expanded use of their homes. With this in mind, the ordinance provides the opportunity for more homeowners to offer a single accommodation to visitors. If passed, the amendments will serve to extend property rights to a significant portion of Ashland's residential zoning districts, by allowing a homeowner to establish and engage in a land use not currently permitted. Ashland has long been committed to trying to encourage a wide range of housing options for households with a variety of incomes. In the 1990s, the city rolled out several code amendments and program incentives to encourage development of more affordable housing choices. Ashland's quality of life has made it an extremely desirable community in which to reside, but with that desirability has come higher than average housing prices. Throughout the development of the Accessory Travelers' Accommodation ordinance, there has been testimony and discussion about the potential implications the proposed changes may have on long term room rentals. On the one hand, citizens expressing concern argue that the code amendments will result in a reduction of longer term room rentals and accessory residential units because it is much more profitable to operate an accessory travelers' accommodation. On the other hand, some proponents argue that they have little desire to operate a long term room rental or accessory residential unit because they want the space to be available for visiting family and close guests. In order to discourage conversion of existing long term rentals, the ordinance restricts the installation of or equipping an accessory travelers' accommodation with kitchen facilities. Page 2 of 4 ~%'J CITY OF ASHLAND Accessory Travelers Accommodations and Home Occupations The Planning Commission suggested modifying the proposed prohibition of home occupations in conjunction with an accessory travelers' accommodation (see 18.2.3.220.C.7. on page 12). As a result, staff recommends deleting the prohibition. The prohibition was originally included in the draft ordinance as a way to limit the overall impact on the neighborhood from concurrent operation of the two uses. At the February 10 public hearing, the Planning Commission raised concerns with the prohibition and asked staff to modify the ordinance to allow for flexibility. Specifically, the Commission felt that any noticeable impacts to a neighborhood from a home occupation generally are the number of visiting customer or client vehicle trips. The Commission discussed possible situations where the home occupation may not generate client trips or where the vehicle trips from two uses might be offset. Staff considered modifying the provision to limit the cumulative impact of a home occupation and accessory travelers' accommodation to eight clients a day and no more than one client at a time, as currently is allowed under the home occupation ordinance. However, the city's land use ordinance currently does not prohibit a home occupation in conjunction with other types of conditional use permits that are allowed in residential zones, such as child care facilities and travelers' accommodations. As a result, including the prohibition for accessory travelers' accommodations would be inconsistent with past practice. Additionally, complaints associated with approved home occupations are extremely limited and there is no indication that operation of a home occupation concurrent with a conditional use permit has historically been problematic. Procedural and Fee Considerations A land use application fee for a conditional use permit of $1038 is required to process a standard traveler's accommodation request (1 to 9 unit potential). Once approved, a subsequent application for annual or biennial review is not required and the business-ownership may be transferred. Similarly, an accessory travelers' accommodation also requires a land use application fee of $1038 for a conditional use permit. In addition, the draft ordinance requires a onetime renewal of the conditional use permit within 24 months of the original approval date. Given the limitations imposed by the draft ordinance, staff resources needed to review and process these requests generally will be less when compared to the time and resources spent on a conditional use permit for a standard travelers' accommodation. The required renewal of the conditional use permit potentially comes with a comparable application fee ($1038). If the homeowner has operated the single accommodation consistent with the land use approval and without compliant, a $1038 application fee could be considered onerous given the limited amount of time needed to process the request. It is also important to design the approval and renewal procedures in a fashion that encourages a homeowner to be compliant with the local land use process, rather than potentially avoiding it due to what may be perceived as an unfair fee structure. As part of the city's annual adoption of the "Miscellaneous Fees and Charges Document", staff could evaluate and propose application and renewal fees for accessory traveler's accommodations that are commensurate to the resources expended to process such requests. FISCAL IMPLICATIONS: Accessory travelers' accommodation would be subject to land use permit and business licensing fees, and payment of the city transient occupancy tax. Page 3 of 4 VIF4LOW-011 CITY OF ASHLAND STAFF RECOMMENDATION AND REOUESTED ACTION: Staff does not have a specific recommendation on this ordinance proposal. In July, Council directed the Commission to craft an ordinance that would potentially accomplish the following: allow a single travelers' accommodation on certain properties in the R-1 zone; specifically exclude accessory residential units; and require the property to be owner occupied. The Commission has forwarded an ordinance for Council consideration which limits the number of accessory travelers' accommodation to one accommodation per lot, requiring the homeowner to reside on the property and be present during its operation. To discourage conversion of long term accessory residential units, separate kitchen facilities are not permitted within an accessory travelers' accommodation. As noted earlier, the Planning Commission recommended approval of land use ordinance amendments that would allow as a conditional use Accessory Travelers' Accommodations in multiple family zoning districts, R-2 and R-3. The Planning Commission was split (3 to 3) on whether to recommend a similar provision in single family and suburban residential zoning districts, R-1 and R-1-3.5 respectively. SUGGESTED MOTION: I move to approve first reading of an ordinance titled, "An Ordinance amending chapters 18.2.2, 18.2.3, 18.4.3, 18.4.7, and 18.6.1 of the Ashland Land Use Ordinance relating to definitions and Accessory Travelers Accommodations in various residential zoning districts," and move the ordinance on to second reading. ATTACHMENTS: 1. Land Use Ordinance Amendments for Accessory Travelers Accommodations 2. Accessory Travelers Accommodation/Standard Travelers Accommodation Comparison Matrix 3. Map - Accessory Travelers Accommodation Eligible Areas - R-1 4. Map - Accessory Travelers Accommodation Eligible Areas - R-2/R-3 5. Planning Commission Report - July 2014 6. Record for Planning Action 2014-02053 Page 4 of 4 orpF410 ORDINANCE NO. AN ORDINANCE AMENDING CHAPTERS 18.2.2, 18.2.39 18.4.3,18.4.7, AND 18.6.1 OF THE ASHLAND LAND USE ORDINANCE RELATING TO DEFINTIONS AND ACCESSORY TRAVELERS' ACCOMMODATIONS IN VARIOUS RESIDENTIAL ZONING DISTRICTS. Annotated to show deletions and additions to the code sections being modified. Deletions are bold lined thr-ou and additions are bold underlined. WHEREAS, Article 2. Section 1 of the Ashland City Charter provides: Powers of the City. The City shall have all powers which the constitutions, statutes, and common law of the United States and of this State expressly or impliedly grant or allow municipalities, as fully as though this Charter specifically enumerated each of those powers, as well as all powers not inconsistent with the foregoing; and, in addition thereto, shall possess all powers hereinafter specifically granted. All the authority thereof shall have perpetual succession. WHEREAS, the City Council has determined that preservation of the character of residential neighborhoods is a legitimate and beneficial goal; and WHEREAS, the City Council has found an increasing number of residential dwellings are being rented to transients on a short-term basis, for less than thirty (30) days; and WHEREAS the City Council has determined the City has a substantial interest in ensuring that all transient occupancy tax required to be collected and remitted is in fact collected and remitted on a fair and equitable basis; and WHEREAS, the City Council has determined it is necessary to establish rules and regulations to permit transient lodging within the City that allows a variety of choices, while ensuring the safety and convenience of transients, and to preserve the peace, safety and general welfare of the long-term resident of neighboring properties; and WHEREAS, the Planning Commission of the City of Ashland conducted on January 30, 2015 a duly advertised public hearing on amendments to the Ashland Municipal Code and Land Use Ordinances concerning accessory travelers' accommodations; and WHEREAS, the City Council of the City of Ashland, following the close of the public hearing and record, deliberated and conducted first and second readings approving adoption of the Ordinance in accordance with Article 10 of the Ashland City Charter; and WHEREAS, the City Council of the City of Ashland has determined that in order to protect and benefit the health, safety and welfare of existing and future residents of the City, it is necessary Ordinance No. Page 1 of 18 to amend the Ashland Municipal Code and Land Use Ordinance in the manner proposed, that an adequate factual base exists for the amendments, the amendments are consistent with the comprehensive plan and that such amendments are fully supported by the record of this proceeding. THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS: SECTION 1. Chapter 18.2.2 [Base Zones and Allowed Uses] of the Ashland Land Use Ordinance is hereby amended as follows: 18.2.2.030 Allowed Uses A. Uses Allowed in Base Zones. Allowed uses include those that are permitted, permitted subject to special use standards, and allowed subject to approval of a conditional use permit. Where Table 18.2.2.030 does not list a specific use and chapter 18.6 does not define the use or include it as an example of an allowed use, the City may find that use is allowed, or is not allowed, following the procedures of section 18.1.5.040. Uses not listed in Table 18.2.2.030 and not found to be similar to an allowed use are prohibited. For uses allowed in special districts CM, HC, NM, and SOU, and for regulations applying to the City's overlays zones, refer to part 18.3. B. Permitted Uses and Uses Permitted Subject to Special Use Standards. Uses listed as "Permitted (P)" are allowed. Uses listed as "Permitted Subject to Special Use Standards (S)" are allowed, provided they conform to chapter 18.2.3 Special Use Standards. All uses are subject to the development standards of zone in which they are located, any applicable overlay zone(s), and the review procedures of part 18.5. See section 18.5.1.020. C. Conditional Uses. Uses listed as "Conditional Use Permit Required (CU)" are allowed subject to the requirements of chapter 18.5.4. D. Prohibited Uses. Uses not listed in Table 18.2.2.030 and not found to be similar to an allowed use following the procedures of section 18.1.5.040 are prohibited. Prohibited uses are subject to the violations, complaints, and penalties sections in 18-1.6.080, 18-1.6.090, and 18-1.6.100. E. Uses Regulated by Overlay Zones. Notwithstanding the provisions of chapter 18.2.2, additional land use standards or use restrictions apply within overlay zones. An overlay zone may also provide for exceptions to some standards of the underlying zone. For regulations applying to the City's overlays zones, please refer to part 18.3. F. Accessory Uses. Uses identified as "Permitted (P)" are permitted as primary uses and as accessory uses. For information on other uses that are customarily allowed as accessory, please refer to the description of the land use categories in part 18.6 Definitions. G. Mixed-Use. Uses allowed in a zone individually are also allowed in combination with one another, in the same structure or on the same site, provided all applicable development standards and building code requirements are met. Ordinance No. Page 2 of 18 H. Temporary Uses. Temporary uses require a Conditional Use Permit under chapter 18.5.4; except as follows: 1. Short-Term Events. The Staff Advisor may approve through Ministerial review short- term temporary uses occurring once in a calendar year and lasting not more than 72 hours including set up and take down. Activities such as races, parades, and festivals that occur on public property (e.g., street right-of-way, parks, sidewalks, or other public grounds) require a Special Event Permit pursuant to AMC 12.03. 2. Garage Sales. Garage sales shall have a duration of not more than two days and shall not occur more than twice within any 365-day period. Such activity shall not be accompanied by any off-premises advertisement. For the purpose of this ordinance, garage sales meeting the requirements of this subsection shall not be considered a commercial activity. 3. Temporary Buildings. Temporary occupancy of a manufactured housing unit or similar structure may be permitted for a period not to exceed 90 calendar days upon the granting of a permit by the Building Official. Such occupancy may only be allowed in conjunction with construction on the site. Said permit shall not be renewable within a six-month period beginning at the first date of issuance, except with approval of the Staff Advisor. 1. Disclaimer. Property owners are responsible for verifying whether a proposed use or development meets the applicable standards of this ordinance. 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Q -o a a) W Oo 'O C 7 a) > >a) E O E O Y 7:1 SECTION 2. Chapter 18.2.3 [Special Use Standards] of the Ashland Land Use Ordinance is hereby amended to read as follows: 18.2.3.220 Travelers' Accommodations in D 2 and D 3 Zones Where traveler-is' accommodations and accessory travelers' accommodations are allowed, they require a Conditional Permit under chapter 18.5.4, are subject to Site Design Review under chapter 18.5.2, and shall meet the following requirements. See definitions of travelers' accommodatio i.e. more than one guest unit and accessory travelers' accommodation i.e. Q est unit in art 18-6. A. Travelers' Accommodations and Accessory Travelers' Accommodations. Travelers' accommodations and accessory travelers' accommodations shall meet all of the following requirements. 1. An accommodation must met all applicable building, fire, and related safety codes at all times and must be inspected by the Fire Department before occupancy following approval of a Conditional Use Permit and periodically thereafter pursuant to AMC 15.28. 2. The business-owner of a travelers' accommodation or the property owner of an accessory travelers' accommodation must maintain a City business license and pay all transient occupancy tax in accordance with AMC 4.24 and AMC 6.04 as required. 3. Advertising for an accommodation must include the City planning action number assigned to the land use approval. 4. Offering the availability of residential property for use as an accommodation without a valid Conditional use Permit approval, current business license and Transient Occupancy Tax registration is prohibited and shall be subject to enforcement procedures. B. Travelers' Accommodations. In addition to the standards described above in section 18.23.220.A, travelers' accommodations shall meet all of the following requirements. 1.B-.The property is located within 200 feet of a boulevard, avenue, or neighborhood collector as identified on the Street Dedication Map in the Comprehensive Plan. Distances to the property from a boulevard, avenue, or neighborhood collector shall be measured via a public street or public alley to a lot line. 2A.During operation of a traveler''-s' accommodation, the property on which the traveler''-s' accommodation is sited must be the primary residence of the business-owner. "Business- owner" shall be defined as a person or persons who own the property and accommodation outright; or who have entered into a lease agreement with the property owner(s) allowing for the operation of the accommodation. Such lease agreement must specifically state that Ordinance No. Page 10 of 18 the property owner is not involved in the day-to-day operation or financial management of the accommodation, and that the business-owner has actual ownership of the business and is wholly responsible for all operations associated with the accommodation, and has actual ownership of the business. 3C.The primary residence on the site must be at least 20 years old. The primary residence may be altered and adapted for traveler=s' accommodation use, including expansion of floor area. Additional structures may be allowed to accommodate additional units, but must be in conformance with all setback and lot coverage standards of the underlying zone. 4D.The number of traveler-is' accommodation units allowed shall be determined by the following criteria. a47. The total number of units, including the business-owner's unit, shall be determined by dividing the total square footage of the lot by 1,800 square feet. Contiguous lots under the same ownership may be combined to increase lot area and the number of units, but not in excess of the maximum established by this ordinance. The maximum number of accommodation units shall not exceed nine per approved traveler''-s accommodation with primary lot frontage on boulevard streets. For traveler''-s' accommodation without primary lot frontage on a designated boulevard, but within 200 feet of a boulevard, avenue, or neighborhood collector street, the maximum number of units shall be seven. Street designations shall be as determined by the Street Dedication Map in the Comprehensive Plan. Distances to the property from a boulevard, avenue, or neighborhood collector shall be measured via a public street or public alley to a lot line. U. Excluding the business-owner's unit and the area of the structure it will occupy, there must be at least 400 square feet of gross interior floor space remaining per unit. 5£. Each accommodation must have one off-street parking space and the business-owner's unit must have two parking spaces. All parking spaces shall be in conformance with chapter 18.4.3. 6F. Only one ground or wall sign, constructed of a non-plastic material, non-interior illuminated, and a maximum of six square feet total surface area is allowed. Any exterior illumination of signage shall be installed such that it does not directly illuminate any residential structures adjacent or nearby the traveler=s' accommodation in accordance with subsection 18.4.4.050.C.1. G. T-r-a.-c:.-.-s acimirrirvazct-le-ire-must building, fir", and related sa" eodes at all times and must be inspeeted by the Fire Department before oeetipaney following approval of a Conditional Use Permit and per-iodieally thereafter- pur-st to Anar 1548. 7H. An annual inspection by the Jackson County Health Department shall be Ordinance No. Page 11 of 18 conducted as required by the laws of Jackson County or the State of Oregon. 1. The business owner- must maintain a eity business heense and pay all transient oeeupaney tax in neeor-danee with AMC 4.24 and AAIC 6.04 as requi i. Advertising for any tr-aveler-'s neeommodation must inelude the City planning netion. number assigned to the land use approval. K. Offering the availability of residential property for- use as a travel aeeommodation without a valid Conditional use Permit approval, eur-r-ent busin ""d shall b ,1'; 1Reense and T t Oeeupaney T registration prohibited ua u a 1~ 8D.Transfer of business-ownership of a traveler''-s' accommodation shall be subject to all requirements of this section and conform with the criteria of this section. Any further modifications beyond the existing approval shall be in conformance with all requirements of this section. C Accessory Travelers' Accommodations. In addition to the standards in section 18.2.3.220.A, accessory travelers' accommodations shall meet all of the following requirements. 1 The property must be located within 200 feet of a boulevard, avenue, or neighborhood collector as identified on the Street Dedication Map in the Comprehensive Plan, except that properties located in the Historic District Overlay are not subiect to this requirement. Distances to the property from a boulevard, avenue, or neighborhood collector shall be measured via a public street or public alley to a lot line. 2 The operator of the accessory travelers' accommodation must be the property owner and the property must be the operator's primary residence. The operator must be present during operation of the accessory travelers' accommodation. 3 The property is limited to having one accessory travelers' accommodation unit, covered under a single reservation and consisting of two or fewer bedrooms. Meals are not provided and kitchen cooking facilities are not permitted with an accessory travelers' accommodation, with the exception of kitchen cooking facilities for the primary residence. 4 The total number of guests occupying an accessory travelers' accommodation must not exceed two people per bedroom. 5 The property must have two off-street parking spaces. The total number of guest vehicles associated with the accessory travelers' accommodation must not exceed one. Ordinance No. Page 12 of 18 6. Signs are not permitted in conjunction with the operation of an accessory travelers' y accommodation. • C' " 7. A home occupation is prohibited with an accessory travelers' accommodation. See definition of home occupation in part 18-6. 8. The accessory travelers' accommodation requires renewal of the Conditional Use Permit under chapter 18.5.4 within 24 months of the original approval. SECTION 3. Chapter 18.4.3 [Parking, Access, and Circulation] of the Ashland Land Use Ordinance is hereby amended to read as follows: 18.4.3.040 Parking Ratios Except as provided by section 18.4.3.030, the standard ratios required for automobile parking are as follows. See also, accessible parking space requirements in section 18.4.3.050. Table 18.4.3.040 = Automobile Parking Spaces by Use Use Categories Minimum Parking per Land Use (Based on Gross Floor Area; fractions are rounded to whole number.) Residential Categories 2 spaces for the primary dwelling unit and the following for accessory residential units. a. Studio units or 1-bedroom units less than 500 sq. ft. 1 space/unit. Single Family Dwelling b. 1-bedroom units 500 sq. ft. or larger 1.50 spaces/unit. c. 2-bedroom units --1.75 spaces/unit. d. 3-bedroom or greater units 2.00 spaces/unit. a. Studio units or 1-bedroom units less than 500 sq. ft. 1 space/unit. b. 1-bedroom units 500 sq. ft. or larger 1.50 spaces/unit. Multifamily c. 2-bedroom units 1.75 spaces/unit. d. 3-bedroom or greater units 2.00 spaces/unit. e. Retirement complexes for seniors 55-years or greater One space per unit. Parking for Manufactured Home on Single-Family Lot is same as Manufactured Housing Single Family Dwelling; for Manufactured Housing Developments, see sections 18.2.3.170 and 18.2.3.180. Performance Standards See chapter 18.3.9. Developments Commercial Categories Auto, boat or trailer sales, retail 1 space per 1,000 square feet of the first 10,000 square feet of nurseries and other open-space gross land area; plus 1 space per 5,000 square feet for the excess uses over 10,000 square feet of gross land area; and 1 space per 2 em to ees. Ordinance No. Page 13 of 18 Table 18.4.3.040 - Automobile Parking Spaces by Use Use Categories Minimum Parking per Land Use (Based on Gross Floor Area; fractions are rounded to whole number.) 3 spaces per alley, plus 1 space for auxiliary activities set forth in Bowling Alleys this section. Chapels and Mortuaries 1 space per 4 fixed seats in the main chapel. 1 space per guest room, plus 1 space for the owner or manager; Hotels see also, requirements for associated uses, such as restaurants, entertainment uses, drinking establishments, assembly facilities. Offices General Office: 1 space per 500 s q. ft. floor area. Medical/Dental Office: 1 space per 350 sq. ft. floor area. Restaurants, Bars, Ice Cream 1 space per 4 seats or 1 space per 100 sq. ft. of gross floor area, Parlors, Similar Uses whichever is less. Retail Sales and Services General_ 1 space per 350 s q. ft. floor area. Furniture and Appliances: 1 space per 750 s q. ft. floor area. Skating Rinks 1 space per 350 sq. ft. of gross floor area. Theaters, Auditoriums, Stadiums, 1 space per 4 seats. Gymnasiums and Similar Uses Traveler''-s' Accommodations 1 space per guest room, plus 2 spaces for the owner or manager. Industrial Categories Industrial, Manufacturing and 1 space per 1,000 sq. ft. of gross floor area, or 1 space for each 2 Production, Warehousing and employees whichever is less, plus 1 space per company vehicle. Freight Institutional and Public Categories Clubs, Fraternity and Sorority 2 spaces for each 3 guest rooms; in dormitories, 100 sq. ft. shall be Houses; Rooming and Boarding equivalent to a guest room. Houses; Dormitories Daycare 1 space per two employees; a minimum of 2 spaces is required. Golf Courses Regular: 8 spaces per hole, plus additional spaces for auxiliary uses. Miniature: 4 spaces per hole. Hospital 2 space per patient bed. Nursing and Convalescent Homes 1 space per 3 patient beds. Public Assembly 1 space per 4 seats Religious Institutions and Houses 1 space per 4 seats. of Worship Rest Homes, Homes for the Aged, 1 space per 2 patient beds or 1 space per apartment unit. or Assisted Living Schools Elementary and Junior High: 1.5 spaces per classroom, or 1 space per 75 s q. ft. of public assembly area, whichever is greater High Schools: 1.5 spaces per classroom, plus 1 space per 10 students the school is designed to accommodate; or the Ordinance No. Page 14 of IS Table 18.4.3.040 - Automobile Parking Spaces by Use Use Categories Minimum Parking per Land Use (Based on Gross Floor Area; fractions are rounded to whole number.) requirements for public assembly area, whichever is greater Colleges, Universities and Trade Schools: 1.5 spaces per classroom, plus 1 space per five students the school is designed to accommodate, plus requirements for on-campus student housing. Other Categories Parking standards for temporary uses are the same as for primary Temporary Uses uses, except that the City decision-making body may reduce or waive certain development and designs standards for temporary uses. SECTION 4. Chapter 18.4.7 [Signs] of the Ashland Land Use Ordinance is hereby amended to read as follows: 18.4.7.060 Residential and North Mountain Sign Regulations Signs in the residential zones and North Mountain Neighborhood District (NM) shall conform to the following regulations. A. Special Provisions I . No sign or portion thereof shall extend beyond any property line of the premises on which such sign is located. 2. Internally illuminated signs shall not be permitted. 3. Nothing contained herein shall be construed as permitting any type of sign in conjunction with a commercial use allowed as a home occupation, as no signs are allowed in conjunction with a home occupation. Signs in residential areas are only permitted in conjunction with a Conditional Use Permit. B. Type of Signs Permitted I . Neighborhood Identification Signs. One sign shall be permitted at each entry point to residential developments not exceeding an area of six square feet per sign with lettering not over nine inches in height, located not over three feet above grade. 2. Conditional Uses. Uses authorized in accordance with the chapter 18.5.4 Conditional Use Permits may be permitted one ground sign not exceeding an overall height of five feet and an area of 15 square feet, set back at least ten feet from property lines; or one wall sign in lieu of a ground sign. Such signs shall be approved in conjunction with the issuance of such Conditional Use Permit. Said signs shall not use plastic as part of the exterior visual effect and shall not be internally illuminated. 3. Retail and Traveler''-s' Accommodation Uses. Retail commercial uses allowed as a conditional use in the Railroad District and traveler's' accommodations in residential zones shall be allowed one wall sign or one ground sign that meets the following Ordinance No. Page 15 of 18 standards, except as otherwise prohibited for accessory travelers' accommodations. a. The total size of the sign is limited to six square feet. b. The maximum height of any ground sign is to be three feet above grade. c. The sign must be constructed of wood and cannot be internally illuminated. 4. North Mountain Neighborhood District (NM) Signs. Signs for approved non-residential uses within the NM-R-1-5, NM-C and NM Civic zones shall be permitted one ground sign not exceeding an overall height of five feet and an area of 15 square feet, set back at least ten feet from property lines; or one wall or awning sign in lieu of a ground sign. Said signs shall not use plastic as part of the exterior visual effect and shall not be internally illuminated. SECTION 5. Chapter 18.6.1 [Definitions] of the Ashland Land Use Ordinance is hereby amended to read as follows: Accessory Travelers' Accommodation. Transient lodging in a residential zone where the property owner resides in a dwelling on its own lot and rents no more than two bedrooms under a single reservation to overnight guests on one or more occasions for a period of less than 30 consecutive days. Group Living. Group living is characterized by the long-term residential occupancy of a structure by a group of people. The size of the group typically is larger than the average size of a household. Group Living structures do not include self-contained units but rather have common facilities for residents including those for dining, social and recreational, and laundry. Residential Care Homes, Residential Care Facilities, and Room and Board Facilities are types of Group Living. - Residential Care Home. A residential treatment or training or adult foster home licensed by or under the authority of the department, as defined in ORS 443.400, under ORS 443.400 to 443.825, a residential facility registered under ORS 443.480 to 443.500 or an adult foster home licensed under ORS 443.705 to 443.825 that provides residential care alone or in conjunction with treatment or training or a combination thereof for five or fewer individuals who need not be related. (See also, ORS 197.660). - Residential Facility. Residential facilities provide housing and care for 6 to 15 individuals who need not be related as defined under ORS 430.010 (for alcohol and drug abuse programs); ORS 443.400 (for persons with disabilities); and ORS 443.880. Staff persons required to meet State-licensing requirements is not counted in the number of facility residents and need not be related to each other or the residents. - Room and Board Facility. Group living establishment located in a dwelling or part thereof, other than a traveler''-s' accommodation or hotel, where lodging, with or without meals, is provided for compensation for a minimum period of 30 days. Personal care, training, and/or treatment is not provided at a room and board facilities. Examples include dormitories, fraternities, sororities, and boarding houses. Ordinance No. Page 16 of 18 Hotel/Motel. A building or portion thereof designed and used for oee"paney of transient lodging individuals in a non-residential zone for a period of less than 30 days, lodged with or without meals and which may include additional facilities and services, such as restaurants, meeting rooms, entertainment, personal services, and recreational facilities. (See ORS 446.310 Residential or Residential Use. Long-term occupancy of a dwelling unit, which may be owner-occupied or rented. Occupancy of a dwelling unit for shorter periods (i.e., less than 30 days) of time is considered an overnight accommodation for transient individuals. See also, definitions of Accessory Travelers' Accommodation, Hotel/Motel, and Traveler''-s' Accommodation. Traveler''-s' Accommodations. Transient lodging in a residential zone having a room, rooms, or dwellings rented or kept for rent to travelers or transients for a charge or fee paid or to be paid for rental or use of such facilities on one or more occasions for a period of less than 30 consecutive days, building, as is rental of a dwelling, or any portion hereof on two or more oeensions within a 30 day. See also, definition of accessory travelers' accommodation. SECTION 6. Savings. Notwithstanding this amendment/repeal, the City ordinances in existence at the time any criminal or civil enforcement actions were commenced, shall remain valid and in full force and effect for purposes of all cases filed or commenced during the times said ordinances(s) or portions thereof were operative. This section simply clarifies the existing situation that nothing in this Ordinance affects the validity of prosecutions commenced and continued under the laws in effect at the time the matters were originally filed. SECTION 7. Severability. The sections, subsections, paragraphs and clauses of this ordinance are severable. The invalidity of one section, subsection, paragraph, or clause shall not affect the validity of the remaining sections, subsections, paragraphs and clauses. SECTION 8. Codification. Provisions of this Ordinance shall be incorporated in the City Code and the word "ordinance" may be changed to "code", "article", "section", "chapter" or another word, and the sections of this Ordinance may be renumbered, or re-lettered, provided however that any Whereas clauses and boilerplate provisions (i.e. Sections 6-7) need not be codified and the City Recorder is authorized to correct any cross-references and any typographical errors. The foregoing ordinance was first read by title only in accordance with Article X, Section 2(C) of the City Charter on the day of , 2015, and duly PASSED and ADOPTED this day of , 2015. Barbara M. Christensen, City Recorder Ordinance No. Page 17 of 18 SIGNED and APPROVED this day of , 2015. John Stromberg, Mayor Reviewed as to form: David H. 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CITY OF ASHLAND Planning Commission Report on Limited Short Term Accommodations in Residential Zones Potential Code Amendment: Amend the Land Use Ordinance to allow an owner-occupied residence to operate a single traveler's accommodation in a residential zone. The goal is to minimize impacts on neighborhood character and ensure the affects of the code amendments are not inconsistent with other currently permitted uses. The single traveler's accommodation use would be subject to the following types of standards and procedures: A. Use-Related Standards: 1. Management of the accommodation Property Owner Occupied - The individual operating and managing the traveler's accommodation must be the owner of the property and the residence on the property must serve as the property owner's "primary residence". The property cannot be sub-leased to another individual that operates the traveler's accommodation Commission Discussion: • The presence of the property owner living on site would greatly reduce the opportunity for adverse impacts to the neighborhood. 2. Location All Residential Zoning Districts - Under the proposed recommendations, this type of short term rental could be allowed in all Residential Zones Distance from a major street - The accommodation must be located on a property within 200 feet of a major city street. This would include a boulevard, avenue, or neighborhood collector. Commission Discussion: • Given the limited nature of the use, a single accommodation within an owner-occupied home, the code amendment could be applied to all residential zoning districts. • Maintaining the "20D-foot rule" would be consistent with the existing standard applied to traveler's accommodations in R2 and R3 zoned neighborhoods and establishes a level playing field. Planning Commission Report - Limited Short Term Rentals in Residential Zones 1 • While uncertain, the origin/rationale for the "200-toot "'standard seems to have been intended to minimize directing non-local traffic into the interior of existing neighborhoods by limiting traveler's accommodations to within a half block of city streets identified for carrying more traffic. • It is unclear that the rationale behind the standard is still valid and that the standard is still accomplishing what it was intended to achieve? • The adjacency between and connectivity of Ashland's neighborhoods makes it difficult at times to identify neighborhood areas that appear more interior than others. • Accommodations located in proximity to major city streets with a continuous public sidewalk system may provide an incentive for visitors to walk to their destination or public transit, especially when the accommodation is near the downtown or within a historic district. • In the end, it is difficult to surmise that the standard is in fact protecting a more quiet residential character the further you get away from a major street. • On the other hand, it is not obvious that the standard is broken and that there exists a logical reason to change it. 3. Number, Size and Type of Accommodations per Property Number of Accommodations - One traveler accommodation (i.e. reservation) permitted per property. Accommodation Type - The single traveler accommodation could reflect A or B of the following accommodation types: A. A one bedroom or two bedroom suite located within the residence that uses the main entrance(s) of the residence to access the accommodation; B. A one bedroom or two bedroom suite within the foot print of an existing residence but accessed through a private, exterior entrance separate from main entrance; or Planning Commission Report - Limited Short Term Rentals in Residential Zones 2 C. A separate structure located on the property and detached from the primary residence of the property (not recommended by the Planning Commission due to the potential impact on longer term accessory residential unit (ARU) rentals). Maximum Size - Accommodation can consist of one or two-bedrooms, potentially with restrictions limiting total size and/or maximum number of occupants. Commission Discussion: • An owner-occupied property with a single accommodation within the footprint of the residence would be consistent with impacts associated with residential zoning districts, specifically single family districts. • To reduce the potential for converting existing accessory residential units (i.e. ARU:s) from long term rentals to short term traveler's accommodations, it is recommended that detached buildings not be permitted for use as a traveler's accommodation. • The traveler's accommodation would need to be attached or located within the footprint of the primary residence, with visitors entering from the residence's main entrance(s) or from a private, exterior entrance. • Consensus was not reached on whether or not the single traveler's accommodation unit should be limited in size or square footage, or restrictions placed on the number of bedrooms, or total number of occupants. • Additional restrictions seem arbitrary and difficult to enforce, while most negative impacts seem related to the number of cars and number of occupants It might be best to target those impacts • An argument could be made that greater specificity in the ordinance, through limitations on size and number of occupants and requiring a floor plan, could lead to more successful compliance. Restriction on Kitchen/Cooking Facilities - Kitchen cooking facilities would not be permitted in a limited short term accommodation. • Allowing kitchen cooking facilities within an individual, limited short term accommodation may encourage existing long term rentals and interior Planning Commission Report - Limited Short Term Rentals in Residential Zones 3 spaces suitable for long term rental use to be more readily converted to short term operations B. Potential Site Design Regulations 1. Parking Off-street Parking - There would be no additional off-street parking requirement. However, the property must have two off-street parking spaces available. Commission Discussion: • Given the limited nature of the use, no additional parking other than that which is already requisite for a single family residence would be required. This would discourage physical changes to the property and landscaping that is potentially out of character with the neighborhood. 2. Signs Signs prohibited - Similar to Home Occupations, signs would not be permitted, however, except as allowed under the "Exempt" section of 18.96, which could limit the use to two, small incidental signs provided signs do not exceed two square feet in area per sign. Commission Discussion: • Additional signs would not be permitted, other than those already permitted under the "exempt" section of the sign code. C. Procedure for Approval 1. Land Use Application Type Conditional Use Permit (Type I Procedure) - The request to operate a single traveler's accommodation would require approval of a conditional use permit. Annual or Biennial Review - A process to periodically review the operations of a single traveler's accommodation could be established after the initial land use approval Commission Discussion: • The conditional use permit process would include public notice to the surrounding neighborhood, informing neighbors of the request and Planning Commission Report - Limited Short Term Rentals in Residential Zones 4 providing an opportunity to provide comments to the Planning Division prior to final approval. The Community Development Director's decision could be appealed to the Planning Commission. • The conditional use permit process establishes a level playing field with existing, multi-unit traveler's accommodations in multiple family zoning districts (i, e. R-2,' R-3), • A biennial review after two years could be considered to allow city staff to confirm that the traveler's accommodation unit is being operated consistent with the land use approval. Planning Commission Report - Limited Short Term Rentals in Residential Zones 5 From: Steve Larson [mailto:slarsonbiz@ gmail.com] Sent: Tuesday, March 10, 2015 9:06 AM To. council@ashland.or.us RECEIVED Subject: Council Contact Form -Steve Larson - 3/10/2015 MAR1o ?0t5 Name: Steve Larson Email: slarsonbiz@ gmail.com Subject: traveler's accommodations Message: I'm Steve Larson,. I live and run a licensed vacation rental at 635 Siskiyou Blvd.. Although I am vice president of the Ashland Lodging Association the comments I have are my own and not meant to represent those of the ALA. I have no problem with the creation of Accessory Traveler's Accommodations as proposed. In fact I feel it would creat a less ex pensive alternative and bring in visitors to Ashland who would not normally be able to afford it. Such accommodations are common in Europe and are quite inexpensive in comparison to a private room or house where the proprietor is not living down the hall. The proposal here mandates that only one party at a time with only one car can be provided with not more than 2 rooms by the hosting party. Use of the kitchen is prohibited and the proprietor must be present during the visit. Unfortunately here is what will happen. Hundreds of applicants will apply for and be licensed to operate such accommodations in every neighborhood in Ashland. After that it will be impossible to determine who is complying with the ordinance and who is not. As in the past those who don't find the rules agreeable will simply do what they want except now, with their license, they will be able to advertise and operate in full view and without fear of being discovered. By passing this with no effective plan for enfor cement the city council will be creating a chaotic situation which will lead to the end of any kind of municipal control of the accommodation industry here in Ashland. It is my suggestion that those who are in favor of this get rid of the rules pertaining to traveler's accommodation all together. Simply award a business license to anyone who is willing to pay for it and require a city room tax be charged. The negative impact of doing that however is another issue. Barring midnight raids and neighborhood surveillance cameras how can the city make an attempt at insuring compliance by the licensees of these "Accessory Travelers Accommodations" The only practical solution I can think of is, at the cities expense, to have personnel pose as tourists, book accommodations and physically stay there and report back any violations. Also, if licensed, all advertisements in the description of the property must include an outline of what an Accessory Traveler's Accommodation is as defi tied by th e city and encourage visitors to report violations. Since there will be hundreds of licensees to monitor it should be a one strike and you're out policy. The city, at it's sole discretion, should be able to revoke a license and impose substantial fines. Perhaps with this operators of these businesses will be intimidated enough that they will be more likely to self regulate themselves and adhere to the conditions of their license. { From: Jean-Pierre Langlade [mailto:i p 11950@comcast.net] VA~ Sent: Monday, March 09, 2015 4:23 PM go A - To: council@ashland.or.us ?077 Subject: Council Contact Form - Jean-Pierre Langlade - 3/9/2015 Name: Jean-Pierre Langlade Email: i_ p 1 1950@comcast.net Subject: R1 Short Term Vacation Rentals Message: To: Ashland Mayor and Councilors From: Jean-Pierre Langfade Address: 522 Fair Oaks As a resident of Ashland, I am opposed to allowing any kind of traveler's accommodations in R-1 single family zones. I want to know who my neighbors are, and live a community with long-term residents. Ashland ne eds to up hold the existing R-1 zoning Iaws that promote and encourage a suitable environment for family life. Ashland needs to have neighborhoods for its.citizens, not for tourists. It also threatens long-term rental stock; there is already a housing crisis for' low- income wage earners. Sincerely yours, PUBLIC HEARING NOTICE On March 17, 2015, the Ashland City Council will hold a public hearing regarding proposed amendments to the land use ordinance which would allow small scale short-term rental units (i.e., accessory traveler's accommodations) in the single-family and multi-family zones. The proposed amendments are to Chapter 18.2.2 Base Zones and Allowed Uses, Chapter 18.2.3 Special Use Standards, Chapter 18.4.7 Signs, and Chapter 18.6.1 Definitions. The public hearing will be held at 7:00 p.m. at the Ashland Civic Center Council Chambers located at 1175 E. Main St., Ashland, OR. The proposed ordinance amendments are available for review at the City of Ashland Department of Community Development located at 51 Winburn Way, Ashland, OR between 8:30 a.m. and 4:30 p.m. Copies of the ordinance and file information are available for purchase if requested. For additional information concerning these ordinance amendments, call the Ashland Planning Division at 541-488-5305. Oral and written public testimony regarding this matter will be accepted at the public hearing before the City Council on March 17, 2015. Written statements are encouraged and may be submitted prior to the hearing dates. Mail written comments to Bill Molnar, Community Development Director, City of Ashland Department of Community Development, 20 E. Main St., Ashland OR 97520, via FAX at 541-552-2050, or via E-mail at molnarbgashland.or.us. Failure to raise an issue in person or in writing prior to the close of the public hearing with sufficient specificity to provide the reviewing bodies opportunity to respond to the issue may preclude your opportunity for appeal on that issue. By the order of Bill Molnar, Community Development Director In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Administrator's office at (541) 488-6002 (TTY phone number 1-800-735-2900). Notification 72 hours prior to the meeting will enable the city to make reasonable arrangements to ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title I). Publish: Friday, March 6, 2015 E-mailed: February 26, 2015 Purchase Order: 92356 PUBLIC FORUM Huelz Gutcheon/2253 Highway 991Shared his vision for a City of Ashland Renewable Equity Acquisition Department. LEGISLATIVE PUBLIC HEARINGS A. PLANNING ACTION: #2014-02053 DESCRIPTION: Proposed amendments to the land use ordinance which would allow small scale short-term rental units (i.e., accessory traveler's accommodations) in the single-family and multi-family zones. The proposed amendments are to Chapter 18.2.2 Base Zones and Allowed Uses, Chapter 18.2.3 Special Use Standards, and Chapter 18.6.1 Definitions. Commissioner Mindlin left the meeting due to a potential public perception of conflict of interest. Staff Report Community Development Director Bill Molnar presented the staff report for the accessory traveler's accommodation ordinance. He explained this discussion began back in August 2012. After the adoption of code amendments for multi-family zoned lands, the City Council discussed code changes that would create a minor allowance for short term accommodations on owner occupied properties in single-family districts and requested the Planning Commission hold public meetings and put forth an ordinance for Council consideration. Mr. Molnar reviewed the requirements of the draft ordinance, which include: 1) the accessory traveler's accommodation operator must be the property owner, it must be their primary residence, and they must be present during operation, 2) the property is limited to one accessory traveler's accommodation covered under a single reservation and consisting of two or fewer rooms, 3) the accessory accommodation must be on a property that is located within 200 feet of a major city street, 4) the total number of guests occupying the accessory traveler's accommodation may not exceed three, 5) separate kitchen facilities are not permitted, 6) the property must have two off- street parking spaces and guests are limited to one automobile, and 7) the request to operate an individual accessory traveler's accommodation would require approval of a conditional use permit followed by a one-time renewal within 24 months of the original approval. Code Compliance Officer Kevin Flynn addressed the Commission and provided an overview of his efforts to curb illegal vacation rentals in the city. He explained when he first came on board there were 150-180 properties under review for illegal operations, however he has had a lot of success and the vast majority have either gone through the land use approval process or have ceased their illegal operation. He commented on his experience with these homeowners and stated most of them want to get legal and follow the rules, and stated many are waiting for a decision from the city on this issue. Mr. Flynn clarified 90% of this work is complaint driven, however he does locate some of the illegal operations on his own. When asked if the proposed ordinance is unenforceable, Mr. Flynn said no and remarked that it would not be difficult to obtain information from operators and guests. Public Testimony Dr. Ruth Resch11000 Terra/Voiced support for accessory traveler's accommodations in the R-1 zone. Dr. Resch stated she is 79 years old and disabled and her one bedroom Airbnd rental allowed to her supplement her limited income and keep her home in Ashland. Nancy Blono/49 Fourth/Stated Airbnb rentals attract a different demographic that would not necessarily stay at a traditional bed and breakfast or hotel, and stated a study conducted by Boston University concluded Airbnb generates a demand that did not exist before and has a positive impact on the local economy. Ms. Blono commented on parking and recommended the ordinance only require one parking space per bedroom rented. She also stated it would be in Ashland's best interest to allow accessory travelers accommodations in all zones and not just properties located within 200 ft. of a major street. Rhonda Lee/2949 Barbara/Stated there is no evidence that host occupied stays have any greater impact than someone renting long term or someone operating a home business. She recommended the Commission remove the 200 ft. rule in all zones, allow both land owners or business owners to operate the rental, and allow up to four total guests. Lois Van Aken/140 Central/Stated she is the owner of two legal traveler's accommodations in the multi-family zone and stated allowing these in single family zones is a poor idea that will reduce rental housing, increase traffic congestion, worsen downtown traffic and the parking problem, and negatively change neighborhoods. Ashland Planning Commission February 10, 2015 Page 2 of 6 Russ Manzone/249 Hillcrest/Stated he operated two rentals until he was contacted by code enforcement and explained his neighbors enjoyed his property and there were no impacts in terms of noise or value. He stated his experience with short term rentals was positive and feels that everyone should have this opportunity. Joseph Kanth/1 Corral #13/Voiced his support for the ordinance and stated small cottage rentals could be great for the economy. Ellen Campbell/120 Gresham/Stated the ordinance fails to identify whether the owner's kitchen would be accessible to the guests, and if it is accessible than by definition that room has the potential to be a long term rental. Ms. Campbell stated Ashland has a deficit of long term rentals and if this ordinance goes through there will be a lot of people who will convert their long term rental units into short term rentals. She added this would drive up the cost of rentals and make it difficult for people who want to live in Ashland to be able to do so. Melody Jones/79 Pine Street/Stated there is no evidence that short term rentals are detrimental to neighborhoods and stated if a guest is loud or destructive she is present and can address it immediately, whereas if it is a renter there is a lengthy eviction process. Brenda Heyden1801 Forest/Cited an article from the San Francisco Chronicle and stated Ashland does not need to reinvent the wheel and should review the San Francisco law. Ms. Heyden voiced support for allowing residents to share their homes with guests in order to make ends meet and asked the city to find a balanced solution to this issue. Anita Isser/84 Garfield/Stated she has an upstairs unit that she would like to turn into a vacation rental and asked that the 200 ft. rule be reconsidered. Ms. Isser recommended each property be looked at individually to determine if it could be a legal and safe rental. Val Bachmeyer/172 Skidmore/Voiced her opposition to allowing vacation rentals in single family zones and questioned how the city could adopt this without sending a public notice to all the property owners in the R-1 zone. Ms. Bachmeyer stated once this is in action there is no way to reverse it and commented that the city's code compliance officer will have a difficult time gaining access to the inside of homes to verify compliance. Kelly Weisheipl/831 Liberty/Voiced support for short term vacation rentals and believes the city can draft rules that will benefit travelers and residents alike. Ms. Weisheipl recommended the 200 ft. requirement be removed and stated the conditional use approval process is sufficient to allow neighborhoods to decide if this is wanted. She stated the impacts of short term rentals are much less than that of a long term renter and asked the city to protect the economic health of the entire population. Commissioner Kaplan closed the public hearing at 8:25 p.m. Commission Discussion & Decision The Commission held discussion on the provisions of the draft ordinance. C-1: The operator of the accessory traveler's accommodation must be the property owner and the property must be the operator's primary residence. The operator must be present during operation of the accessory traveler's accommodation. Comment was made that the intent of this requirement is to prohibit owners from vacating the property but trips to work or the grocery store (etc.) is fine. No issues were raised with this provision. C-2.• The property is limited to having one accessory traveler's accommodation unit covered under a single reservation and consisting of two or fewer bedrooms. Kitchen and cooking facilities are not permitted with an accessory tra veler's accommodation, with the exception of kitchen cooking facilities for the primary residence. Ashland Planning Commission February 10, 2015 Page 3 of 6 Commissioner Brown voiced support for including a statement that meals are not included to remove the perception that this is a type of bed and breakfast. Recommendation was made to modify the second sentence of this provision to read 'Meals are not provided andkitchen cooking facilities are notpermitted... "General support was voiced for this change. C-3: The total number of guests occupying an accessory traveler's accommodation must not exceed three people. Commissioner Dawkins commented that three seems like an odd number and the intent was to keep the rental to one family and one car. Commissioner Kaplan suggested limiting the number of guests per bedroom (no more than two people per bedroom) and general support was voiced for this modification. C-4.• The property must have two off-street parking spaces The total number ofguest vehicles associated with the accessory traveler's accommodation must not exceed one. No issues were raised with this provision. C-5: Signs are not permitted in conjunction with the operation of an accessory traveler's accommodation. No issues were raised with this provision. C-6: A home occupation is prohibited with an accessory traveler's accommodation. Commissioners Dawkins and Brown expressed concern with this limitation. Mr. Molnar clarified the intent was to limit the overall impact on the neighborhood and stated the ordinance would not allow a property owner to operate an accessory travelers accommodation and a home occupation concurrently. He added there are different levels of home occupations; some have no travel or visitors while others have more frequent customers and deliveries. The Commission discussed this provision and recommended it be modified to allow for flexibility. Suggestion was made to tie this into the conditional use approval process and evaluate the number of visitors associated with the home occupation on a case by case basis. Mr. Molnar commented that staff would evaluate this and draft alternate language that would allow both an accessory traveler's accommodation and a home occupation so long as the cumulative impact is not greater than the eight clients that is currently allowed under the home occupation ordinance. C-7: The accessory traveler's accommodation requires the renewal of the conditional use permit under chapter 18.5.4 within 24 months of the original approval. Support was voiced for this language. Comment was made that a one-time review was beneficial and would allow for input from the neighborhood. Definition of Accessory Traveler's Accommodation Commissioner Thompson raised concern with the definition and stated as written it implies that whole house rentals are allowed. Mr. Molnar clarified the last phrase was taken from the adopted traveler's accommodation definition and is there to provide teeth for enforcement. Suggestion was made to modify the language to read "...no more than two bedrooms under a single reservation to overnight guests on one or more than one occasions for a period of less than 30 consecutive days... Mr. Molnar stated he would present this change to the legal department for consideration, Commissioners Brown/Dawkins m/s to recommend approval of the ordinance with the changes as discussed in the event the City Council decides to adopt an ordinance. Roll Call Vote: Commissioners Brown, Dawkins, Miller, Peddicord, Thompson, and Kaplan, YES. Motion passed unanimously. 200-Foot Rule The Commission held discussion on the language that requires traveler's accommodations and accessory traveler's accommodations to be located within 200 ft. of a boulevard, avenue, or neighborhood collector. Mr. Molnar clarified this was put into the code in the 1970's and the intent was to make it convenient and easy for travelers who are not familiar with town to get to their destination and to keep traffic on the major streets. Commissioner Dawkins commented that he does not find a lot of value in this rule, He stated if you have accommodations within a short distance from downtown people will walk; however once outside downtown people will drive. Commissioner Peddicord agreed and stated this seems arbitrary. Commissioner Brown commented that the city is always talking about how to cut down on cars and stated he would like to see the results of the downtown traffic study that is currently being conducted before they add more cars. Commissioner Kaplan remarked that the majority of R-1 areas within 200 ft. of a major street are not walkable to downtown. Commissioner Ashland Planning Commission February 10, 2015 Page 4 of 6 Peddicord noted there are neighborhoods much further from downtown that would adhere to the rule, and others much closer to downtown that don't. Commissioner Miller suggested removing this requirement for the historic districts since those areas are truly walking distance from downtown. General support was voiced for this modification. Mr. Molnar noted the four nationally recognized historic districts are all roughly within a 10-minute walking distance of downtown. Commissioner Dawkins voiced support for this change and commented that this is a good first step. Commissioner Thompson commented that the 200 ft. rule is arbitrary and there should be a better way to determine what parts of town they want these located. Commissioners Miller/Peddicord mis to eliminate the 200 ft. rule for accessory travelers accommodations in the historic districts. Roll Call Vote: Commissioners Thompson, Miller, Dawkins, Peddicord, and Kaplan, YES. Commissioner Brown, NO. Motion passed 5-1. Commissioners Dawkins/Peddicord m/s to eliminate the 200 ft. rule for accessory traveler's accommodations. DISCUSSION: Commissioner Thompson voiced concern with the impact of accessory traveler's accommodations and stated while the 200 ft. rule is arbitrary, they do not have a better tool to limit the scope of these. Commissioners Peddicord, Dawkins, and Kaplan, YES. Commissioners Miller, Brown, and Thompson, NO. Motion tied 3-3. Should accessory traveler's accommodations be allowed in residential zones? Mr. Molnar clarified the distinction between accessory traveler's accommodations and regular traveler's accommodations for the Commission. Commissioners Brown/Thompson m/s to allow accessory traveler's accommodations in R-2 and R-3 zones as shown in the Uses Allowed by Zone matrix. Roll Call Vote: Commissioners Miller, Peddicord, Thompson, Brown, Dawkins, and Kaplan, YES. Motion passed unanimously. The Commission held discussion on whether accessory traveler's accommodations should be permitted in R-1 single family zones. Commissioner Peddicord stated she is empathetic to people wanting to make money in order to keep their homes, but is concerned about the overall impact to affordable housing and is worried about driving up housing prices long term. Commissioner Miller stated she is unsure and questioned if these would have any more impact than home occupations that are currently allowed. Commissioner Dawkins commented that people should have the right to use their homes this way to provide income and stated it is a changing time and it is a sharing economy right now. Miller countered that people who need supplemental income could rent long term. Commissioner Thompson commented that this is a very difficult problem. She stated the traditional thinking is that R-1 is strictly residential, but that has been eroded over time with a certain level of commercial activity and the number of people who work out of their homes. She stated from an impact standpoint accessory traveler's accommodations will not be dramatically different from home occupations, but she is concerned with how this will affect housing prices in the long run. Thompson stated they should be encouraging long term rentals in R-1 neighborhoods and this ordinance is not addressing a need that we have in the city. She stated there might be individual need, but as a city this is not something we need. She stated the 200 ft. rule does not make sense, but if the Council wants to allow accessory traveler's accommodations in R-1 she does not want to open this up to the entire city and this is the only reason she would support the 200 ft. regulation. Commissioner Brown commented that this will change the economics of the housing market and skews it away from long term renters and he does not believe this ordinance would benefit the city as a whole. He stated the R-1 districts have already been eroded and stated at what point do you draw the line. Commissioner Kaplan stated they have listened to a lot of testimony on both sides of this issue and he is not convinced this will be taken advantage of as much as some think. He stated it is a burden and there are costs involved and he believes there will be a lot of owners who could do this but won't want to. Commissioner Dawkins stated the neighborhoods have changed and are not the same as when he was growing up. He stated they have made the neighborhoods quiet, not energetic and he supports people doing business in their homes. He stated this is part of the change that is happening and while he is fine with the City Council saying no, this is what the future is and he believes they wrote a really good ordinance. Commissioners Brown/Thompson mis to not allow accessory travelers accommodations in the R-1 single family zone. Roll Call Vote: Commissioners Thompson, Brown, and Miller, YES. Commissioners Dawkins, Peddicord, and Kaplan, NO. Motion tied 3-3. Ashland Planning Commission February 10, 2015 Page 5 of 6 OTHER BUSINESS The Commission agreed to move the Study Session to March 31. ADJOURNMENT Meeting adjourned at 10:10 p.m. Submitted by, April Lucas, Administrative Supervisor Ashland Planning Commission February 10, 2015 Page 6 of 6 Planning Commission Speaker Request Form 1) Complete this form and return it to the Secretary prior to the discussion of the item you wish to speak about. 2) Speak to the Planning Commission from the table podium microphone. 3) State your name and address for the record. 4) Limit your comments to the amount of time given to you by the Chair, usually 5 minutes. 5) If you present written materials, please give a copy to the Secretary for the record. 6) You may give written comments to the Secretary for the record if you do not wish to speak. 7) Speakers are solely responsible for the content of their public statement. Names`` i (please print) Address (no P.O.:Boa) Phoned` Email - - Tonight's Meeting Date + Regular Meeting Agenda item nu be OR Topic for public forum (non agenda item) "A Ile Land Use Public Hearing For: Against: Challenge for Conflict of Interest or Bias If you are challenging a member (planning commissioner) with a conflict of interest or bias, please write your allegation complete with supporting facts oil this form and deliver it to the clerk immediately. The Chair will address the written challenge with the member. Please be respectful of the proceeding and do not interrupt. You may also provide testimony about the challenge when you testify during the normal order of proceedings. Written Comments/Challenge: The Public Meeting Lan, requires that all city rrreetings are open to the public. Oregon law does not always require that the public be permitted to speak. The Ashland Plaruring Commission generally invites the public to speak on agenda items acrd during public forum on non-agenda items unless time corrstrairrts limit pzrblic testinrorry. No person has an absolute right to speak or participate in every phase of a proceeding. Please respect the order of proceedings for public hearings and strictly follow the directions of the presiding officer. Behavior or actions which are unreasonably loud or disruptive are disrespectful, and may constitute disorderly conduct. Offenders will be requested to leave the room. Comments and statements by speakers do not represent the opinion of the City Council, City Officers or employees or the City of Ashland. RECEIVED h t: Ashland City Planning Commission 10February 2015 Ruth Codier Rescb 1000 Terra Avenue 541-482-9280 1) Thank you for the privilege of speaking to you today. I am Dr Ruth Resch, I am disabled, 79 years old and live on an extremely limited income. 2) airbnb enabled me and people like me to continue to live in Ashland, and contribute to a viable economic diversity. 3) My property situation is that I live on Terra Ave 11/2 blocks from Siskyou Blvd, not within the proposed 200 ft rule. I live in my home and rent only one bedroom. My neighbors liked what I was doing. Ruth's Quiet Retreat attracted people who wanted relaxation in a lovely residential area whose coming and goings had minimal effect on the street. In conclusion; I am requesting R1 Zoning flexible enough for my home to have transient guests so that I am able to increase income, support economic diversity and to be able to remain in Ashland where my family lives. Speaker Request Form s THIS FORM IS A PUBLIC RECORD ALL MORMATAON. PROVIDED WILL BE MADE AVAILABs~E TO THE PUBLIC 1) Complete this form and return it to the City Recorder prior to the discussion of the item you wish to sneak about 2) Speak to the City Council from the table podium microphone. 3) State your name and address for the record. 4) Limit your comments to the amount oftime given to you by the Mayor, usually 3 or 5 minutes. 5) If you present written materials, please give a copy to the City Recorder for the record. 6) You may give written comments to the City Recorder for the record if you do not wish to speak. (Comments can be added to the back of this sheet if necessary) 7) Speakers are solely responsible for the content of their public statement. Tonight's Meeting Date L` Name / UC~rr~C' (please jr* , t) Address (no P.O. Box) Phone Email Regular Meeting Agenda topiclitem number - X plL -ACS-& reQ{7 OR Topic for public forum (non agenda item) Land Use Public Hearing Please indicate the following- For: Against: Challenge for Conflict of Interest or Bias if you are chatlenging.a member (a city councilor or a planning commissioner) with a conflict of interest or bias, please write your allegation complete with supporting facts on this form and deliver it to the clerk immediately. The Presiding Officer will address the written challenge with the member, Please be respectful of the proceeding and do not interrupt. You may also provide testimony about the challenge when you testify during the normal order of proceedings. Written Comments/Challenge:' The Public Meeting Law requires that all city meetings are open to the public. Oregon law does not always require that the public be permitted to speak. The Ashland City Council generally invites the public to speak on agenda items and during public forum on non-zgenda items unless time constraints limit public testimony. No.person has an absolute right to speak or participate in every phase of a proceeding. Please respect the order ofproceedings for public hearings and strictly follow the directions of the presiding officer. Behavior or actions which are unreasonably loud or disruptive are disrespectful, and may constitute disorderly conduct. Offenders will be requested to leave the room. Comments and statements by speakers do not represent the opinion of the City Council, City Officers or employees or the City of Ashland. V Thank you for your consideration of all factors involved. It is wise for us to consider data and best practice. First - Economic Impact Boston University conducted a study of 22000 AirBnB rentals in Texas over 5 years and found negligible economic impact on existing hotels. Interestingly, the area where they found the largest impact was from non-owner occupied houses which were on AirBnb - not from single rooms rented in someone's home. Their report stated that AirBnB attracts a different demographic - tech savvy, peerto peer oriented travelers who would not necessarily stay at a traditional B and B or hotel. AirBnB is considered a social media website, like Facebook. The report concluded AirbnB generates a demand that did not exist before and has a positive impact on the local economy by increasing travel and tourism spend. On a more local note, the City of Newport Oregon has recently considered this issue and determined that it was "in their best interest to allow vacation rentals in all residential zones" - and not only within 200' of a main artery. 2nd issue: Parking The Newport Ordinance also requires 1 parking space per bedroom rented, which makes way more sense than the 3 spaces currently being considered here. Many owner occupied homes and legal full house rentals in Ashland have NO parking spaces, yet they are considered legal residences. In fact, parking is much more of an issue in a non-owner occupied short term rental, where a group of friends rent a house and all drive to town separately, often bringing 4-6 cars to park on the street. Whereas, a person renting in a room in a single family home will only be arriving with 1 car, and the owner will be on site supervising. So a 1 room short term rental should increase the parking required by 1 space per bedroom rented (not the proposed minimum of 3 spaces per applicant). Based upon the current parking requirements for longterm residences and rentals in Ash land, a 3 space requirement is both discriminatory and punitive. CITY OF NEWPORT ORDINANCE NO. 2032 AN ORDINANCE AMENDING THE NEWPORT. ZONING1ORDINANCE (ORDINANCE NO. 13b8, AS AMENDED) RELATING TO.. VACATION RENTALS-AND BED AND BREAKFAST FACILITIES Findings: 1. The City of Newport Zoning Ordinance (No. 1308, as amended) contains criteria that. apply to the use of dwelling units as vacation rentals or bed and breakfast facilities: inside the City of Newport. The criteria are found in Section 2-1-1.10'1 ("Definitions")=. Section 2-2-1 ("Zoning Districts") and Section 2-4-11 (`Bed and Breakfast Faciii of the Ordinance. 2. These criteria set out the terms and procedures by which vacation rental :and bore and 'breakfast uses may be permitted for the purpose of ensuring the safety and convenience of renters, owners and neighboring property owners; protectflg thy`;: character of residential neighborhoods;. and addressing potential negative 6016 such as excessive noise, overcrowding, illegal parking, and accumulation of refuse.: 3. The City of Newport Planning Commission and an Ad-Hoc Work Group-::of ` community volunteers completed a comprehensive review of these code sec#ions and determined that amendments are needed because the existing rules are difficult to interpret and enforce and, in the case of conditional uses, have led to inconsistent' appjiratiott_and_Implementation._of_:the-_r..eq.uirements-over-tiime, 4. The City of Newport Planning Commission and the Ad-Hoc Work Group further-f! that creating clear and objective criteria to allow vacation rentals and bed .:arid breakfast facilities in all residential zones is a more effective method of achieving #Fe: purpose of the regulations than existing requirements that limit vacation rentals, iii,` `ten bed and breakfast uses through the imposition of discretionary criteria or arbitrary _```e u ancy li !1 s. 5. The Ad-Hoc Work Group, in consultation with the Newport Planning Commission, met seven (7) times between March and November of 2011 to develop draft amendments (File No. 1-Z-11). The Planning Commission met six (6) times in work session during this same time period to review the amendments. Following public hearings on January 9, 2012 and February 27, 2012, the Planning Commission voted to recommend adoption of the proposed amendments. 6. Prior to the Planning Commission hearings, a public workshop was held: 'on September 12, 2011 at which the general public was provided an opportunity to comment on the proposed amendments. Mail notice of the workshop was provided to persons that will be subject to these regulations with an August water billing mailing. A stakeholder list compiled by the city of persons operating vacation rentals also received the notice. Page 1 Ordinance No. 2032, Amending the Newport Zoning Ordinance (Ordinance No. 1308 (as omnn,4^e 11 roia4inn fin inn rnn#ol and h-A onA hrn WL fonilkino t 7. The City Council held a public hearing on March 19, 2012 regarding the question of:.`.. the proposed. revisions and voted in favor df':their adoption after considering the recommendation of the Planning Commission and evidence and argument in fie: record. 8. Information in the record, including affidavits of mailing and publication, demonstrate that appropriate public notification was provided for both the Planning Commission and City Council public hearings. THE CITY OF NEWPORT ORDAINS AS FOLLOWS: Section 1. The above findings are hereby adopted as support for the Council's Land Use Code amendments, below. Section 2. Definitions for the terms "Bed and Breakfast Facility," "Hotel;" "Motel," and•. "Residential Unit," of Section 2-1-1.101 of Ordinance .:-No 1308 (as amended_), Definitions, are amended as follows: A. Bed and Breakfast Facility. An owner occupied single-family dwelling containing..-rlot;.._ more than five (5) guest rooms, where meals are provided for a fee on a daily Qr weekly room rental basis, not to exceed 30 consecutive days. B. Hotel. A building in which lodging is provided for guests, for compensation and contains a common entrance and where lodging rooms do not have art entrant;; opening directly to the outdoors (except for emergencies)-, with or without cooking,' facilities, and where more than 50 percent of the lodging rooms are for rent to transient guests for a continuous period of less than 30 days. A bed and breakfast facility or a vacation rental conducted in a single family dwelling or individual dwelling . unit is not a hotel use. C. Motel. A building or group of buildings in which lodging- is provided for guests for compensation, containing guest units with separate entrances from the building exterior, with or without cooking facilities, and where more than 40 percent of the lodging rooms are for rent to transient guests for a continuous period of less than 30 days. A bed and breakfast facility or a vacation rental conducted in a single family dwelling or individual dwelling unit is not a motel use. D. Residential Unit,. See definition of "Dwelling Unit." Section 3. A definition for the term "Vacation Rental" is added to Section 2-1-1.101 of Ordinance No. 1308 (as amended), Definitions, as follows: Vacation Rental. A dwelling unit containing not more than five (5) guest rooms that is rented for less than 34 consecutive days. Section 4. Definitions for the terms "Preexisting Time Share Project,". "Time Share Interest," "Time Share Project," and "Weekly Rental," of Section 2-1-1.101 of Ordinance No. 1308 (as amended), Definitions, are deleted. Page 2 Ordinance No.2032, Amending the Newport Zoning Ordinance (Ordinance No. 1308 (as amendedl) relatino to vacation rental and bed and breakfast facilities. Section 5. Subsection 2-2-1.025(11) of Ordinance No. 1308 (as amended), Zoning: Districts/Residential Uses is amended to fist a "Bed and Breakfast Facility" at "Vacation Rental" as permitted uses in all residential zone districts subjeit endorsement requirements of Section 2-4-11. Section 6. Section 2-4-11 of Ordinance No. 1308 (as amended), Bed and Breakfast.:; Facilities, is repealed in its entirety and replaced with a new Section 2-4-11, as shown in'` Exhibit "A". Section 7. This ordinance shall take effect on July 1, 2012. Adopted on April 2, 2012. Signed by the Mayor one --12012. Mark McConnell, Mayor ATTEST: _Y Marga a M. Ha r, Ci Recorder Page 3 Ordinance No.2032, Amending the Newport Zoning Ordinance (Ordinance No. 1308 (as amendedl) ralatinn to vacetion rental and hed and breakfast facilities. 4 ~ - Exhibit A to Ordinance No. 2032, Repealing and Replacing Section 2-4-11 of the Newport Zoning Ordinance (Ordinance No. 1306, as Amended) Relating to Vacation Rental and Bed and Breakfast Facilities g RE D E IV Section 2-4-11. BED AND BREAKFAST AND VACATION RENTAL FACILITIES 2-4-11.005. Purpose. This section establishes the terms, criteria and procedures by which bed and breakfast and vacation rental uses may be permitted to ensure the safety and convenience of renters, owners and neighboring property owners; protect the character of residential neighborhoods; and address potential negative effects such as excessive noise, overcrowding, illegal parking, and accumulation of refuse. 2-4-11.010. General Provisions. A. Vacation rental and bed and breakfast use of an existing dwelling unit is permitted in all residential and commercial zone districts subject to a business license endorsement ("endorsement") pursuant to the provisions of this section; B. An endorsement for a vacation rental or bed and breakfast use is specific to the owner of a dwelling unit. When the holder of an endorsement sells or transfers the real property, the new owner shall obtain an endorsement before using the dwelling. unit as a vacation rental or bed and breakfast facility However, if a vacation rental or bed and breakfast use was in existence on such real property as of the effective'date of subsection 2-4-11.010(D), that subsection shall apply to the transferee as well; C. Vacation rental or bed and breakfast endorsements shall remain in effect so long as a valid business license is maintained for the rental use and the property is not sold or transferred; D. Each vacation rental and bed and breakfast use in existence as of the effective date of this section shall be subject to the provisions of this section. L(l) A business license endorsement shall be applied for within one hundred twenty (120) days of the effective date of the ordinance enacting this section. In the event an owner previously established a vacation rental or bed and breakfast facility use in accordance with applicable City of Newport land use codes, the City shall permit the existing land use to continue without requiring compliance with 1 standards listed in subsection 2-4-11.025 relating to maximum overnight occupancy, parking, landscaping, and shared access. The exemption to standards in subsection 2-4-11.025 listed herein shall not apply to vacation rentals operated not more than ten times in a calendar year. (2) A prior land use approval shall be voided and the standards of 2-4-11,025 complied with if. (a) an owner fails to apply for an endorsement within one hundred twenty (120) days of the effective date of the ordinance; or (b) a business license lapses for at least 12 consecutive months. NEWPORT ZONING ORDINANCE (NO. 7.308, AS AMENDED) Page I of 7 1 -~3 Pal ~ ~ Nav, cOc av-0110 t4 j Exhibit A to Ordinance No. 2032, Repealing and Replacing Section 2-4-11 of the Newport Zoning Ordinance (Ordinance No. 1308, as Amended) Relating to Vacation Rental and Bed and Breakfast Facilities (3) The provisions of this subsection 2-4-11.010 govern, notwithstanding NZO Section 2-5-1, governing Nonconforming Uses, Structures, and Lots; E. If one or more of the standards under subsection 2-4-11.025 cannot be met, an owner may seek approval of a vacation rental or bed and breakfast use as a Conditional Use, pursuant to Section 2-5-3 of this Ordinance. A Conditional Use Permit may allow relief from one or more of the endorsement standards of subsection 2-4-11.025, but does not excuse the general NZO Section 2-4-11 endorsement requirement. 2-4-11.015. Approval Authority. A. Upon receipt of an application for a vacation rental or bed and breakfast endorsement, the Community Development Director, or designee shall determine if the request satisfies the standards of subsection 2-4-11.025. If the request satisfies the standards, then the Director shall issue the endorsement and provide notice per subsection 2-4- 11.035. Such action is ministerial and, as a non-discretionary act, is not subject to appeal. The endorsement is effective upon satisfaction of the inspection requirements of subsection 2-4-11.030. B. In the event that the Community Development Director or designee determines that an application does not meet one or more of the standards of subsection 2-4-11.025, an endorsement shall not be issued. C. A Conditional Use Permit application for a vacation rental or bed and breakfast use shall be submitted to the Community Development Director, or designee, and shall be reviewed by the Planning Commission via a Type III decision making process, consistent with NZO Section 2-6-1, Procedural Requirements. D. An approved Conditional Use Permit that grants relief from, or provides alternative requirements to, one or more of the standards of subsection 2-4-11.025 shall satisfy the standards of subsection 2-4-11.025 and permit the Director to issue the endorsement. 2.4-11.020. Application Submittal Requirements. An application for a vacation rental or bed and breakfast endorsement shall be submitted on a form provided by the Community Development Department, and shall include the following: A. Site plan, drawn to scale, showing the dimensions, property lines, existing buildings, landscaped area, and off-street parking locations; B. Lincoln County Assessor's map showing the subject property and notification area; and C. Names and addresses of property owners within 200' of the subject property (or outline of property that is held in common), as shown in the records of the County NEWPORT ZONING ORDINANCE (NO. 1308, AS AMENDED) Page 2 of 7 Exhibit A to Ordinance No. 2032, Repealing and Replacing Section 2-4-11 of the Newport Zoning Ordinance (Ordinance No. 1306, as Amended) Relating to Vacation Rental and Bed and Breakfast Facilities Assessor. If the property is within a Homeowners Association, then contact information for the Association shall also be provided. 2-4-11.025. Standards for Vacation Rental or Bed and Breakfast Endorsement. An application fof.a vacation rental or bed and breakfast use shall omply~with the following standards. A. Maximum Overnight Occupancy. Maximum overnight occupancy shall be two (2) f rsons per bedroom, plus two additional persons per property; B. Maximum Building Occupancy. The maximum number of individuals permitted within a vacation rental or bed and breakfast is subject to the limitations of the Uniform Fire Code or such other provisions of said code as may be applicable; C. Parking Standards. One (1) off-street parking space per bedroom that is dedicated to the vacation rental or bed and breakfast use. The location and design of parking spaces sha11 comply with NZO Section 2-3-6, and designated spaces shall be . available at all times to guests; D. Waste Mana ament. Weekly solid waste disposal service shall be provided while the dwelling is occupied for vacation rental or bed and breakfast use; (1) Owner or designee shall provide for regular garbage removal from the premises; and (2) Trash receptacles shall be stored or screened out of plain view of the street. E. Landscaping. For vacation rental and bed and breakfast uses situated on individual lots or parcels in residential zones, at least 50% of the front yard and 40% of the total area shall be landscaped. No more than 50% of the front yard landscaping may be impervious surfaces, such as patios and decks. Driveway and parking areas shall not satisfy any portion of these landscaping requirements; F. Guest Register. Owner or designee shall maintain a guest and vehicle register for each tenancy. The register shall include the name, home address, and phone number of the primary tenant; the total number of occupants; vehicle license plate nrunbers of all vehicles used by the tenants, and the date of the rental period. This information shall be provided to City emergency responders upon request; G. Contact Information. Owner or designee shall maintain on file with the City the f name, telephone number, mailing address and entail address (if available) of a contact person responsible for responding to questions or concerns regarding operation of the vacation rental or bed and breakfast. The contact person or designee must accept calls on a 24 hour basis and respond to inquiries from a tenant, complainant or the City within 24 hours. For the purpose of this subsection "respond" means an attempt NEWPORT ZONING ORDINANCE (NO. 1308, AS AMENDED) Page 3 of 7 Exhibit A to Ordinance No. 2032, Repealing and Replacing Section 2-4-11 of the Newport Zoning Ordinance (Ordinance No. 1308, as Amended) Relating to Vacation Rental. and Bed and Breakfast Facilities to contact the person or persons that made the inquiry to address their questions or concerns; H. Emergency Information. Owner or designee shall provide information within the dwelling unit to inform and assist renters in the event of a natural disaster, power outage, or other emergency. Required information includes, but is not limited to: (1) A tsunami evacuation map produced by Lincoln County Emergency Services, Oregon Department of Geology and Mineral Industries or other agency with similar authority. (2) Phone numbers and addresses for emergency responders and utility providers. (3) Other information as established by resolution of the City Council; 1. Noise. Noise levels shall conform to the requirements of Chapter 8.15 of the Newport Municipal Code; J. Po, sting. A copy of the business license endorsement shall be located within the vacation rental or bed and breakfast and its location shall be posted inside the dwelling unit's primary entrance. In addition to the endorsement, such information shall include occupancy limits; a phone number and address for the designated contact; a diagram of the premises with parking locations; the maximum number of vehicles that can be parked on-site; instructions for trash pick-up, storage and recycling; emergency information; and the noise limitations of Section 8.15.015 of the Newport Municipal Code. This information shall be maintained and current at all times; K. Shared Access. Written consent is required from affected owners for applications that rely upon shared driveway, parking or beach access; L. Ste. Signs shall conform. with applicable provisions of Title X of the Newport Municipal Code; M. Business License Required. A business license for the rental use shall be obtained pursuant to Chapter 4.05 of the Newport Municipal Code; and N. Room Tax. Owner or designee shall adhere to the room tax requirements of Chapter 3.05 of the Newport Municipal Code. 2-4-11.030. Inspections. A. A dwelling unit proposed for a vacation rental or bed and breakfast use shall be inspected by the Building Official or designee to determine its conformance with the endorsement standards of subsection 2-4-11.025 and the following basic health and safety elements: NEWPORT ZONING ORDINANCE (NO. 1308, AS AMENDED) Page 4 of 7 Exhibit A to Ordinance No. 2032, Repealing and Replacing Section 2-4-11 of the Newport Zoning Ordinance (Ordinance No. 1308, as Amended) Relating to Vacation Rental and Bed and Breakfast Facilities (1) Bedrooms shall have an egress window or exterior door that is operable, with a minimum opening size of 5.7 sq. ft., and that is located not more than 44 inches above the finished floor; (2) Interior and exterior band railing shall be secure with a maximum width of four (4) inches between guard rails an open stairs. Hand and/or guard railing shall be installed for staircases with four (4) or more risers and on decks or porches that are more than 30 inches above grade; (3) Windows within a 24 inch are of doors shall be safety glazed; (4) Wood frame decks shall be structurally sound. In cases where a deck supports a hot tub or other features of a similar size and weight, engineering analysis of the supports may be required; (5) Electrical plug-ins and light switches shall have face plates; (6) Electric breaker boxes shall have all circuits labeled, and empty breaker spaces must be plugged; (7) GFCI (Ground Fault Circuit Interrupter) protected plug receptacles shall be provided for exterior, kitchen, and bathroom plugs; (S) Functioning smoke detectors shall be installed in all bedrooms and in hallways between a potential fire source and sleeping areas. (9) Functioning carbon monoxide alarms shall be installed if the unit (a) contains a heater, fireplace, appliance or cooking source that uses coal, kerosene, petroleum products, wood or other fuels that emit carbon monoxide as a by-product of combustion; or (b) includes an attached garage with an opening that communicates directly with a living space. Such alarms shall be installed in compliance with State Fire Marshal Rules and any applicable requirements of the State Building Code, and there shall be available in the premises a written notice containing instructions for testing the alarm, (10) Water heaters shall be strapped and secured in accordance with seismic protections standards, with a TEP (Temperature and Pressure Relief) line that is run to an approved location. (B) If the Building Official or designee requires alterations, the identified deficiencies must be corrected as follows: (1) In circumstances where the unit is already subject to a rental agreement the Building Official or designee may allow continued use, provided corrective action is taken within 30 days, or an alternative timeline acceptable to the Building Official. NEWPORT ZONING ORDINANCE (NO. 008, AS AMENDED) Page 5 of 7 Exhibit A to Ordinance No. 2032, Repealing and Replacing Section 2-4-11 of the Newport Zoning Ordinance (Ordinance No, 1308, as Amended) Relating to Vacation Rental and Bed and Breakfast Facilities (2) For units undergoing an initial inspection prior to vacation rental or bed and breakfast use, corrective action shall be undertaken before the dwelling unit can be rented. (C) Dwelling units with an endorsement for vacation rental or bed and breakfast use shall be subject to periodic re-inspection by the Building Official or designee at the City's discretion to ensure compliance with the provisions of this chapter. The timeframe for such inspections is subject to the City's discretion and available resources. 2-4-11.035. Notice Requirements. Upon issuance of-an endorsement, the City shall provide notice to property owners within 200' of the subject property (or outline of property that is held in common) and a Homeowners Association, if one is established where the dwelling unit is located, advising that an endorsement fora vacation rental or bed and breakfast use has been issued. Such notice shall include the address of the dwelling unit that received the endorsement, a location where additional information can be obtained about the nature of the endorseinent,.and the .name, phone number, mailing address, and email address (if available) of the owner or designated contact. 2-4-11.040. Complaints. The designated contact identified in subsection 2-4- 11.025(G) above, is the initial point of contact for complaints regarding the use of the dwelling unit. That individual shall maintain a written log documenting the nature of all complaints related to endorsement standards, the dates they were received, and efforts taken to resolve issues that have been raised. The written log shall be provided to the City upon request. 2-4-11.045. Violations. Penalties, as specified in subsection 2-4-11.050, may be imposed for one or more of the following violations: A, Advertising; renting; using; or offering for use, occupancy or rent; a vacation rental or bed and breakfast facility where the owner does not hold a valid endorsement issued pursuant to this section; B. Advertising; renting; using; or offering for use, occupancy or rent; a vacation rental or bed and breakfast facility in a manner that does not comply with the endorsement requirements of subsection 2-4-11.025; C. Failure to comply with the endorsement standards and operational requirements of this NZO Section 2-4-11; D. Failure by the owner to pay the transient room tax required by Chapter 3.05 of the Newport Municipal Code; or E. Failure of the owner's designated contact to respond to tenant, citizen or City complaints or inquiries, "Failure to respond" occurs if City staff is unable to reach NEWPORT ZONING ORDINANCE (NO. 1308, AS M%NDED) Page 6 of 7 Exhibit A to Ordinance No_ 2032, Repealing and Replacing Section 2-4-11 of the Newport Zoning Ordinance (Ordinance No. 1308, as Amended.) Relating to Vacation Rental and Bed and Breakfast Facilities the designated contact after three attempts, using the information that the owner or designee has on file with the City. 2-4-11.050. Penalties. Penalties for a violation of subsection 2-4-11.045.A shall be as established in NZO Section 2-6-8. Where the owner possesses a valid endorsement or land use permit; the penalties for violations of 2-4-11.045.13-E shall be as follows: A. For the first violation within a 12 month period, City shall issue a written warning to owner. B. For the second violation within a 12 month period, City shall suspend owner's vacation rental or bed and breakfast endorsement for 30 days. C. For the third violation within a 12 month period: 1) City shall revoke owner's vacation rental or bed and breakfast endorsement; and 2) where an endorsement includes a Conditional Use Permit, City shall also initiate the revocation procedure as outlined under NZO Section 2-6-1.075. NEWPORT ZONING ORDINANCE (NO. 1308, AS AMENDED) Page 7 of 7 RECEIVED w -r Boston university School of Management Boston University School of Management Research Paper Series No. 2013-1b "The Rise of the Sharing Economy: Estimating the Impact of Airbnb on the Hotel Industry" Georgios Zervas Davide Proserpio John W. Byers r cam, ~ - ~ - The Rise of the Sharing Economy: Estimating the Impact of Airbnb on the Hotel Industryt Georgios Zervas Davide Proserpio, John W. Byers School of Management Computer Science Department Boston University Boston University January 22, 2014 Airbnb is an online community marketplace facilitating short-term rentals ranging from shared accommodations to entire homes that has now contributed more than ten million worldwide bookings to the so-called sharing economy. Our work addresses a central question facing the hospitality industry: to what extent are Airbnb stays serving as substitutes for hotel stays, and what is the impact on the bottom line of affected hotels? Our focus is the state of Texas, where we identify Airbnb's impact by exploiting significant spatiotemporal variation in the patterns of adoption across city-level markets. Using a dataset we collected spanning all Airbnb listings in Texas and a decade-long panel of quarterly tax revenue for all Texas hotels, we develop a nuanced estimate of Airbnb's material impact on hotel revenues. Our baseline, estimate is that a l% increase in Airbnb_ listings in Texas results in a 0.05% decrease in cluartcrly hotel revenues, an estimate compounded by Airbnb's rapid growth. To further isolate Airbnb's impact, we employ hotel segments that consumers are less likely to substitute for Airbnb stays as additional control groups. We find that the impacts are distributed unevenly across the industry, with lower-end hotels and hotels not catering to business travelers being the most affected. Finally, by simulating various regulatory interventions informed by current events, such as limiting Airbnb hosts to a single listing, we find only a moderate mitigating impact on hotel revenues. 1The authors thank the participants and organizers of SCECR'13 (http://Bcecr.org/scecr20l3/), WISE'13 (http: //wiseconf . org), and the seminar participants at Telefonica I+D Research, Barcelona and Technicolor Research, Paris for their helpful feedback on earlier drafts of this work. We thank Smith Travel Research (STR) for sharing data with us. We are also indebted to Flavio Esposito for motivating us to investigate Airbnb and for his contributions to our earlier research on the topic. I I Introduction Much ado has recently been made of the "sharing economy", in which broad segments of the population can collaboratively make use of under-utilized inventory via fee-based sharing. On the supply side, individuals can provide short-term rentals of vehicles they own that would otherwise be sitting idle, they can rent out spare rooms in their apartment or home, and now they can even rent out their pets.' On the demand side, consumers benefit from the sharing economy by renting goods at lower cost or with lower transactional overhead than buying or renting through a traditional provider. While sharing of goods and services is an age-old phenomenon, the key enabler to this marketplace operating at scale has been the rise of websites that facilitate far more of these transactions. In the first phase of this technology- driven boom, web sites like Craigslist enabled the selling of goods locally, primarily through the use of searchable listings, allowing suppliers to reach broader audiences at minimal cost, and for purchasers to browse a massive online inventory from their desktop. In the second phase, web sites such as Airbnb have addressed the much more challenging problem of the sharing of goods, where unlike selling a good, retaining (much of) the post-transaction value of the good is essential for the owner. Although we do not study this aspect of the sharing economy in this work, a key enabling technology has been the development of strong online reputation and signaling mechanisms. For example, online rental sites now prominently display the responsiveness of hosts to rental inquiries, which hosts can use to signal their quality relative to their competition. Also, many web sites promoting the sharing economy have embraced the use of online reviews firms such as eBay pioneered bidirectional post- transaction reviews using ordinal star ratings; firms now encourage users to provide and publish detailed reviews of their experiences subsequent to each transaction. Along with the rise of the sharing economy comes a host of open research questions. From the socioeconomic standpoint, tapping into and realizing the promise of the sharing economy comes with considerable attendant complexity, as new models challenge both existing busi- ness models and the underlying social fabric. Consider the case of Airbnb, a website enabling short-term rentals. In many markets, notably New York City, protectionist legislation pro- moted by the hotel industry forbids apartment owners from short-term rentals, and indeed, recent litigation has upheld these laws, effectively making Airbnb rental illegal.' Along a somewhat similar line, lack of regulation and oversight of gray-market transactions facili- tated by the sharing economy may also lead to a shaking-out period during which regulatory 'See e.g., Borrow My Doggy - https : //www. borrowmydoggy. com/ 'See "Judge rules Airbnb illegal in New Yorlc City", May 2013, http://money.cnn.com/2013/05/21/ technology/innovation/airbnb-illegal-new-york/index.html 2 action clamps down upon and limits the scope and sweep of the sharing eeonomy.3 Finally, under certain settings, the sharing economy imposes significant negative externalities upon non-participants. A canonical example is that of apartment dwellers being subjected to the whites of short-term renters, who may not ascribe to norms of noise, cleanliness, and public safety, and who provide no continuity in building and maintaining a sense of community.' Ultimately, the sharing economy can and should be viewed through the lens of social welfare, which we take to be the standard interpretation: the suns of individual utilities over a society. Clearly, there exist beneficial transactions enabled through the sharing economy that have no negative externalities, benefit both transacting parties, and thus provide positive utility. Such a transaction manifests itself as a net gain in social welfare. Proponents of the sharing economy opine that a vast number of hypothetical transactions are of this form, and thus, the ability to unlock the sharing economy would provide a great boon to social welfare (see, e.g., Batsman (2012)). Detractors, as well as entrenched interests, argue that the sharing economy presents a societal risk; and while under certain scenarios; a properly regulated sharing economy may add value, the net gain to social welfare in the long run could be insubstantial.5 In this paper, we empirically examine the impact that the rise of the sharing economy, and specifically the emerging market for short-term rentals, has on the hospitality iridustry. We investigate whether and to what extent, stays in the short-term apartment and home rental market displace hotel stays. Using data we collected from Airbnb.com on over 22,000 stays in the state of Texas over the five yeas period from 2008 to 2013, and quarterly hotel revenue tax data from over 4,000 hotels in 'T'exas dating back to 2003, we show that Airbnb penetration is negatively correlated with hotel revenue, and that lower-end hotels incur most of the financial impact. In particulax, due to the significant variability in both the temporal rate and the spatial density of Airbnb penetration, as well as the geographic specificity of both our hotel and Airbnb datasets, we are able to treat Airbnb market entry as a -variable intervention in space and time against the hotel tax revenue dataset. Our analysis also accounts for differences in consumer behavior across regions (municipalities) of Texas through a rich set of control variables, and exploits the panel nature of our dataset by incorporating hotel fixed effects. Our preferred specification allows us to project that, in Texas, an additional 1% increase in the size of the Airbnb market will result in a 0.05% 3See "Sharing Verboten: Berlin Puts Kibosh on Airbnb and Co.", August 2013, http: //www.spiegel.de/international/business/berlin-to-penalize-short--term-rental-companies- like-airbnb-in-fall-a-916416.html. 'See "Is Airbnb Bothering the Neighbors?", September 2012, http://betabeat.com/2012/01/is- airbnb-bothering-the-neighbors/. 5,9ee "The Rise Of The Renting And Sharing Economy Could Have Catastrophic Ripple Effects"; August 2013,http://www.businessinsider.com/rise-of-the-renting-and-sharing-economy-2013-Vop-i 3 J decrease in total hotel revenue. `.ro provide additio al robustness to this finding, we then move to study our hypothesis that Airbrib does not affect all hotels in a given municipality equally. Using a design sim- ilar to a difference-in-difi'erence-in-differences analysis, we incorporate high-end hotels, and hotels that cater to business travelers as additional control groups. We find that Airbnb disproportionately impacts lower-end properties, as one might expect, given the nature of rentals on Airbnb, typically with fewer amenities and services that higher-end hotels provide. Through a similar analysis, we find that the impact of Airbnb also falls disproportionately on hotels with little or no conference space, our proxy for the extent to which the hotel caters to business travel, as we hypothesized. Finally, we perform a series of counterfactual simulations to estimate Airbnb's impact on hotel revenue. We focus attention on the expected effects of possible regulatory interven- tions informed by laws and regulations related to illegal hotels, as well as Airbnb's terms and conditions; 1ATe first estimate the effects of disallowing the rental of non-shared accomrnoda.- tions, then consider limiting Airbnb hosts to one listing each. We find that the improvement of hotel revenues is more significant when the former regulation is applied as opposed to the latter, but neither regulation individually eliminates a significant proportion of Airbub's impact on hotel revenues. 2 Related. Work Our work contributes to the small but expanding literature on substitution between online and offline markets, as firms like Airbnb can be viewed as providing enabling technology that facilitates suppliers of niche inventory to bring their products to market, online. In contrast to offline naaa•kets, Airbnb provides sufficient reach and sufficiently low cast of revenue for individuals to profitably list their remnant inventory. As such, our study of Airbnb can be viewed as investigating the consequences of lowering the barrier to entry for online suppliers in relation to traditional suppliers. Brynjolfsson et al. (2009) examine the role of product popularity with respect to con- sumers' choices among bricks-and-mortar retailers, shopping catalogs, and electronic com- merce stores. They find that substitution between online and offline channels is less intense for niche products which are generally less likely to be available offline. Forman et al. (2009) consider the role of consumers' physical locations, and find that consumers who live closer to bricks-and-mortar stores have a stronger preference for them; furthermore, these consumers are less sensitive to online discounts. Similar to aspects of these works, our study and iden- tification strategy focuses on settings where 1) the online offering arises subsequent to an 4 established offfine market presence, 2) there is significant observable variability with respect to the emergence of the online offering, and 3) geographic variability in the offerings plays a key role with respect to consumer choice. However, our work differs substantially from these studies, as they consider the case of identical goods, whereas we consider the case where the online products axe different, often distinctively so; from traditional offerings, and cannot be considered pure substitutes. Moreover, we consider the case where a new technology platform enables a wide range of micro-suppliers to enter the market, as opposed to prior work's focus on the emergence of a monolithic online alternative to retail stores. Prior work has also examined substitution between online and offfine advertising and retailing channels. The study by Goldfarb and !tacker (2011x) exploits cross-state regular tory differences to show that in states where lawyers are prohibited from contacting poten- tial clients by traditional mail, costs-per-click for online search engine ads are substantially higher. A second study by Goldfarb and '17ucker (2011b) exploits local variation in offline alcohol advertising bans; and finds that while alcohol advertising bans reduce alcohol pur- chase intent, this reduction is significantly smaller for consumers who are exposed to online advertising. Finally, Goldfarb and IVeker (2011c) summarize the progress on measuring sub- stitution between online and offfine advertising, and discuss the methodological challenges facing researchers who wish to identify such patterns, many of which also arise in our work. A different body of relevant related work considers online technologies which enable sup- pliers of niche goods and services, or consumers with remnant inventory, to reach broader audiences. For example, a large number of recent studies have focused on the impact of Craigslist - a website featuring free online classified ads on the newspaper industry. Sear mans and Zhu (2013) estimate the effect of Craigslist's market entry on several newspaper performance nfctrics. They find that in the face of increasing competition by Craigslist, newspapers with greater reliance on classified ad revenue responded by reducing their ad rates, and by increasing their subscription prices more than newspapers whose revenues were less reliant on advertising; On the }buy side, they find that this increase in competition translated to approximately $5 billion worth of savings that accrue to advertisers. Along similar lines, Kroft and Pope (2013) estimate that Craigslist's entry resulted in a 7% re- duction in the volume of classified ads appearing in newspapers during the period between January 2005 and April 2007. Further, they estimate that Craiglist's entry caused a decrease in the rental vacancy rate by approximately 1%. In a different line, Chan and Ghoso (2011) provide evidence that the entry of Craigslist has led to a significant increase in the rate of new sexually transmitted disease cases by facilitating the posting of casual encounter ads. Our work shares a methodological trait with these studies: all of them rely on the tempo- ral and geographic variation in Craigslist's entry to identify its effect. We exploit similar 5 variation in the patterns of Airbnb's diffusion to measure its impact on hotel revenues: Our work also contributes to the literature studying the impact the external shocks on the tourism and the hospitality industry. Much of the prior work though, has centered on demand shocks. For example, O'Connor et al. (2008) study the impact of terrorism on tourism in lreland, and Baker and Coulter (2007) estimate the impact of the 2002 and 2005 terrorist attacks in Bali on the islands' vendors. Most closely related to our work is the study of Kosova and Enz (2012) who examine the adverse effects of the 911 attack and the 2008 financial crisis on hotel performance. Their findings on the 2008 financial crisis are directly relevant to our work since the events leading to the crisis overlap with Airbnb's initial entry into the Texas market, a factor we must correct for. Overall, they find that hotel revenues recovered gradually, returning to pre-crisis levels of performance around the beginning of 2009. Among different hotel segments, upmarket properties were those that suffered most, but also the ones that rebounded fastest. In contrast to these works, our research considers impacts from the sup_ ply side, as Airbnb rentals increase the supply of accommodation alternatives available to travelers. Moreover, unlike one-time, industry- wide demand shocks, the impact introduced by Airbnb is gradual and exhibits geographic variability, adding considerable nuance to appropriate identification strategies. Finally, our work is related specifically to research that investigates the economic impacts from the sharing economy. A number of studies have been conducted on the adoption and effects of car-sharing. Cervero et al. (2007) study car-sharing in San Francisco using survey analysis methods to find that car-sharing is associated with significant decreases in miles traveled, gasoline consumption, and car ownership. In a similar survey of approximately 6,000 North American households participating in a car-sharing program, Martin et al. (2010) find that the average number of vehicles owned per household dropped by nearly 50%. Our analysis uncovers similar substitution patterns in the context of travel accommodation. We also find a large number of opinion pieces on accommodation sharing, for example in the popular press and on blogs; but little in the way of academic literature; Our closest comparison point are a set of short studies, commissioned by Airbnb, which argue that the Airbnb business model is complementary to the hotel industry and quantify the substantial net economic benefit to cities that Airbnb renters provide.' While our work is related to these 6See: 1. "Study Finds that Airbnb Hosts and Guests Have Major Positive Effect on City Economies", Novern- ber 2012,https://www.airbnb.com/press/news/study-finds-that-airbnb-hosts-and-guests- have-major-positive-effect-on-city-economies. 2. "New Study: Airbnb Community Contributes €185 million to Parisian Economy", June 2013. https://www.airbnb.com/press/news/new-study-airbnb-community-contributes-I85- million-to'-parisian-economy. 3. "New Study: Airbnb Community Contributes $130 Million to Berlin Economy", Septem- 6 1 i studies; we apply a more sophisticated methodology and segmentation analysis, resulting in conclusions that are botli different and more nuanced. For example, our empirical strategy results in our quantitative identification of the non-negligible revenue impact that Airbnb has had on the Texas lodging industry, broken out by market segment. 3 The rise of .A.irbnb Airbnb defines itself as "a social website that connects people who have space to spare with those who are looking for a place to stay", and exemplifies a community marketplace. Airbnb hosts list their spare rooms or apartments, establish their own nightly, weekly or monthly price, and offer accommodation to Airbnb guests. Airbnb derives revenue from both guests and hosts for this service. They charge guests a 9 -12% service fee every time a reservation is booked, depending on the length of the reservation, and they charge hosts a 3% service fee to cover the cost of processing payments. Airbnb's business model currently operates with minimal regulatory controls in most locations, and as a result, hosts and guests both have incentives to use signalling mechanisms to build trust and maximize the likelihood of a successful booking. To reinforce this behavior, Airbnb has built an online reputation system that enables and encourages each guest and host to leave a review upon completion of a stay. Guests use star ratings to rate features of their stay, e.g., cleanliness, location, and communication, while both guests and hosts may provide other information about aspects of the stay, including personal comments. Since its launch in 2008, the Airbnb online marketplace has experienced very rapid growth, with more than four million guests and over ten million nights of cumulative book- ings worldwide at the end of 2012. The site is now being used by over 50,000 renters per night and had a market cap of $2.5 billion after its most recent funding round, late in 2012.7 4 Datasets and Data Preprocessing For our study, we collect and combine data from various sources including the Airbnb website, the Texas Comptroller Office, Smith Travel Research (STR.), county demographics from the U.S. Census Bureau, and the Current Population Survey (CPS) from the U.S. Bureau of Labor Statistics (BLS). ber 2013. http://publicpolicy.airbab.com/wp-content/uploads/2013/09/Berlin-Airbnb- economic-impact-study.pdf. 'httpz //go.bloomberg.com/tech-deals/2013-03-10-the-missed-airbnb-investrnent-now-worth-250-million/ 7 4.1 Airbnb Data To estimate the extent of Airbnb's market entry, we collected consumer-facing information from Airbnb.com on the complete set of users who had listed their properties in the state of Texas for rental on Airbnb. We refer to these users as frosts, and their properties as their listings: Each host is associated with a set of attributes including a photo; a personal statement, their listings, guest reviews of their properties, and Airbnb-certified contact in- formation. Hosts who supply Airbnb with a copy of a government-issued photo ID receive a prominently displayed "Verified ID" badge. Similarly, each listing displays attributes includ- ing location, starting price, a brief textual description, photos, capacity, availability, check-in and check-out times, cleaning fees, and security deposits. Figure I displays a typical Airbnb listing, and Figure 2 displays a typical Airbnb user profile. Our collected dataset contains detailed information on 5, 994 distinct hosts and 7,361 distinct listings. Airbnb provides a number of tools for guests and hosts to build their online reputations. Most prominent among these tools is an archival reputation system that solicits, records, and displays crowdsourced reviews from Airbnb users. After each stay, both the guest and the host are asked by Airbnb to provide a review about their experience, which are then published on the publicly available host and guest pages, respectively. We collected all user reviews from transactions involving the Texas listings; but for this paper; make use only of the subset of 22,650 reviews written by guests for the Texas listings for transactions between 2008 and Q2 201.3. From. our collected data, we are able to quantify certain measures of spatiotemporal penetration of Airbnb. Ideally we would use bookings data to estimate penetration, but individual transaction values on Airbnb are not available to us. Instead, for any given region in space, e.g., city, ZIP rode, state; and for any given point in time, we define penetration to be the number of distinct Airbnb listings that have cumulatively entered the market in that region up to that point in time. We approximate the entry date of individual listings by using the (prominently displayed) date their owners became Airbnb members. A clear limitation of this measure is the lack of direct correspondence between the supply of Airbnb listings and consumer demand for these listings. This challenge is not unique to our setting. For example, to analyze the impact of Craigslist's penetration, Seamans and Zhu (2013) and Chan and Chose (2011) rely on similar proxy measures such as the riLunbcr of classified ads available on the website, or, more simply, the appearance of the first classified ad in a 'The Airbnb review corpus has some distinctive differences from other collections of online reviews. Unlike forums like eBay, Airbnb does not use star-ratings or other summaries to rank users; it simply publishes the review content. Also, users may participate on both sides of the market, and thus may build both a reputation as a host and as a guest. 8 E` F region; in Section 7i Nye perform a series of robustness. checks with different proxy measures. to investigate the sensitivity of our results to this choice. Separately, we must choose an appropriate level of geographic aggregation. Here, our data is suitably granular (with location accuracy to roughly 100 meters) to permit analysis at many different scales. Our use of city-level granularity in our primary specification is driven by the observation that a city is the largest geographic unit within which we reasonably expect to see significant substitution patterns between hotels and Airbnb properties. We anticipate and assume that the fraction of travelers who will substitute a hotel for an Airbnb room in a different city is insignificant. 4.2 Hotel Revenue Data The dependent variable we use in our analysis of the impact of Airbnb is hotel revenues. We obtained quarterly tax panel dataset for hotels in Texas from the website of the Texas Comptroller Office, which publishes tax reports for individual hotels.' In addition to basic information including hotel name, address, and capacity, the panel data includes all hotel room receipts, broken out as taxable and non-taxable receipts, by quarter." The raw dataset spans the period between the first quarter of 2003 and the second quarter of 2013 and contains approximately 330, 000 records. Interestingly, according to Texas law, a hotel is considered to be any building in which members of the public rent sleeping accommodations for $15 or more per day." 11 For this reason; Airbnb properties complying with the Texas tax code appear in this tax dataset. This is evident from Figure 3, which plots the quarterly number of unique tax-paying properties in Austin broken down by capacity, i. e., maximum occupancy. We conjecture that the rapid increase in low capacity properties starting in 2008 is related to Airbnb's entry into the Texas market at the same time. To exclude non-hotel properties from our analysis, we cross-reference the tax dataset with the U.S. hotel census data provided to us by STR. The STR census includes all U.S. hotels and contains a rich attribute set for each hotel including its opening date, price segment, capacity, operation (chain vs. independent), and geographic location. In total, the STR dataset contains information on 4,673 hotels in the state of Texas. After linking the STR census dataset with the Texas tax dataset, we obtain high-confidence matches for a panel of 4,006 properties (86% of the Texas hotels in the STR census), and exclude the rest. Table 1 provides summary statistics of the variables we use 'Available at http://aixtcp.cpa.state.tx.us/hotel/hotel_gtr_all_srch.php "Differences due to non-taxFLble receipts are generally small; We use total room receipts as our measure. 11http://www.window.state.tx.us/taxinfo/hotel/faqhotel.html 9 in our analysis from 2003 through June 2013. Each pair of entries are computed by taking the average and standard deviation of each variable for all observations in our dataset falling within a given year. Finally, we assemble a set of control variables derived from publicly available data sources. We obtain quarterly unemployment data at the city level, annual demographic information at the county level, and quarterly employment in the accommodation industry at the county level from the BLS at bls. gov and the U.S. Census Bureau at census. gov. We also adjust for inflation using quarterly Consumer Price Indexes (CPIs) reported by the BLS. 5 Empirical Strategy Airbnb has seen widely varying degrees of traction within different local, regional and in- ternational markets, both with respect to initial market entry and the rate at which it has been adopted within markets. For example, consider Figure 4, which depicts the current extent of market penetration both of Airbnb properties and hotels within the state of Texas (top panels), and within the county encompassing the state capital, Austin (bottom panels). Unlike hotels, which have coverage throughout the state and pockets of local density, such as in downtown Austin, Airbnb has spotty coverage at best throughout the state, but broader coverage across metro areas including suburbs and exurbs: Table 2 reveals that patterns of Airbnb adoption over a five year period in the ten most populous cities in Texas are them- selves diverse, with several cities experiencing early adoption and rapid growth and others experiencing minimal impacts. Our empirical strategy exploits this variability to identify the impact of Airbnb's rise on hotel revenues. Our base specification tapes the following form: log Hotel Revenueit 7--,31og Airbnb Listingsit + x', -y + ai + Tt + cit. (1) We colistruct the dependent variable of our specification by applying two transformations to quarterly hotel revenues, indexed both by quarter t and hotel i. First, since our data spans a decade of observations, we adjust hotel revenues for inflation, correcting all revenue to January 2003 dollars using the All Prices Consumer Price Indexes (CPIs). Second, we opt for a logarithmic transformation based on the observation that the distribution of hotel revenues is highly skewed, as shown in the left panel of Figure 5. By contrast, as shown in the right panel of the same figure, the logarithmic transformation better approximates a normal distribution. An additional advantage of the logarithmic transformation is that it constrains the predictions of our model to positive revenue values. 10 The coefficient of interest is 13, which we interpret as the percentage change in hotel revenues caused by a 1% increase in the number of Airbnb listings. The vector xit contains a set of time-varying control variables (x' denotes the transpose of this vector). In xit we include: the total number of hotel rooms measured at the city level (we expect that the supply of hotel rooms will also affect revenues), as well as unemployment rate, population, and the number of employees in the leisure and accommodation industry measured at the county level. We apply a logarithmic transformation to all controls except for unemployment, which is already expressed as a rate. To further control for pre-existing trends across cities we also include city-specific quadratic time-trends in our set of controls. A concern with the inclusion of city-specific tirric-trends is that they can be confounded with hotels' response to Airbnb. Wolfers (2006) examines this issue in detail, and highlights problems that arise when time-trends are estimated on a small number of pre-intervention observations. Fortunately, our dataset covers a long pre-Airbnb period from 2003 to 2008, alleviating these concerns. Our specification also includes hotel fixed effects (variables aj to control for unobservable time-invariant hotel properties, and year-quarter fixed effects (variables Tt) to control for concurrent effects common across all hotels (e.g., the 2008 financial crisis.) Finally, we cluster standard errors at the hotel level to account for autocorrelation in our data (see e.g., the treatment recommended by Bertrand et al. (2004)). We report our results in Table 3. We begin with the simplest specification lacking any controls xit, the results of which axe reported in the first column. We find that a 1% increase in Airbnb listings is associated with a statistically significant 0.04% (P < 0.01) decrease in quarterly hotel revenues. We then proceed to check the robustness of this relationship by successively incorporating the set of controls xit elaborated above. Our estimations with these added controls, reported in columns two through five of Table 3, remain similar III directionality; moreover, the resulting coefficients of our control variables have reasonable direction and magnitudes. For example, the coefficients of unemployment rate and the number of hotel rooms are both negative and significant,, while the number of employees in the accommodation sector is positively correlated with hotel revenues, lending additional credibility to our model specification. Ultimately, in our preferred specification (Column (5)), a 1% increase in Airbnb listings results in the association with largest magnitude, a 0.05% (p < 0.01) decrease in quarterly hotel revenues," Placing our results in context, we observe that our preferred specification in Table 3 suggests that a percentage increase in the supply of hotel rooms in Texas is associated with "The number of observations is smaller in this specification because our dataset lacks the number of employees in the accommodation industry for a small number of counties. An alternative specification where we impute the missing values by substituting with the Texas-wide average produced almost identical results. Furthermore, these missing counties account for a very small fi•action of the Airbnb listings in our dataset. 11 l 1. a roughly 0.29% decrease in Texas hotel revenues. Therefore, even at the current modest rate of Airbnb penetration, a percentage point increase in the supply of Airbnb listings has roughly a sixth of the impact of a comparable percentage increase in hotel roorms.13 This makes intuitive sense, as any Airbnb stay that substitutes a hotel room stay equates to lost revenue for the hotel industry, whereas increased hotel room supply merely provides diminished revenue through increased price competitiveness. But this currently substantial impact is all the more striking in light of the fact that Airbnb continues to grow rapidly. For example, the number of Airbnb listings in Austin more than doubled between 2011 and 2012 (see Table 2). Furthermore, larger markets in Texas such as Houston and Dallas appear to have ample room for Airbnb growth, due to their large population, and relatively low Airbnb penetration. Therefore, our results suggest that market entrants such as Airbnb can pose a legitimate competitive threat to the hospitality industry going forward. 5.1 Farther isolating the Airbnb effect While Airbnb can provide an alternative to hotels, one can hardly expect it to be a perfect substitute for all travel needs. Here, we attempt to further isolate the impact of Airbnb on hotel revenues by focusing on two hotel segments that we argue should be less vulnerable to Airhnb's entry; high-end hotels, and hotels. catering to business travelers. Motivated by this intuition, we estimate a set of regressions conceptually analogous to a. differenec-in- difference-in-differences (DDD) design. Observe that our base specification in Equation 1 can be interpreted as a difference-in-differences estimate where each unit i acts as its own control. Our goal is to arrive at a more robust estimate of the impact of Airbnb by employing those hotels least affected by Airbnb's entry as additional controls (a third difference). 5.1.1 High-end hotels as a control group On the basis of price, Airbnb inventory is most comparable to the Budget, Economy, and Midprice segments of the hotel inventory in Texas. Our comparison is furnished in Figure 6. The left panel of this figure plots 2012 average daily rates for all hotels in Texas, and for the top-5 cities broken down by price segment, plotting reservation data that we obtained from STR and hotels. com. The right panel of Figure G presents the average offered nightly rates for Airbnb properties in Texas in 2013. Based both on this price comparison and the fact that upmarket hotels provide amenities (e.g., pools, conference rooms, concierge) to travelers that typical Airbnb rentals do not, we "In absolute terms, the total supply of Airbnb listings in Texas is currently about 7,300, while the number ,of hotel rooms. i9 appw imtely 360}000 pQr 5T RE. 4ot4l C..Omw•.). 12 C hypothesize that the impact of Airbnb. will differ substantially by hotel price segment. We expect the impact to be disproportionately larger for lower price tiers. To investigate this hypothesis, we first estimate separate regressions for hotels by price segment. The results, shown in the first five columns of Table 4, laxgely support our hypothesis. While the impact is negative across segments, the magnitude is largest for lower price tiers, while for hotels in the Luxury classification, the estimated Airbnb effect is not significant. Next, we estimate the following model using our complete dataset: log Hotel Revenueit =Qilog Airbnb Listingsit + Qzlog Airbnb Listingsit x Price Segmenti + xit'y + Gi + Tt + rit. (2) We report our results in the rightmost column of Table 4. Both the main effect (coefficient 01), and its interactions with the Budget, Economy, and Midprice hotel price segments (coeffici(!rits E32) are statistically significant. Pirthermore, the interaction coefficients; which are the ones of interest in this analysis, have the expected direction and magnitude: using Luxury hotels as the reference group, we find that the negative impact of Airbnb is amplified as we move to lower price tiers, with Economy hotels being most impacted. Upscale hotels on the other hand, are not significantly affected compared to the Luxury segment. According to this analysis the impact of Airbrib remains significant and substantial on lower-end hotels even once we control for revenue trends common across different price tiers. 14 Rom a managerial standpoint, this result has direct import: even though lower-end hotels in Texas account for a disproportionately small amount of revenue as compared with upmarket hotels, they nevertheless bear the brunt of the impact of the market entry of Airbnb. Our evidence suggests that consumers are increasingly substituting Airbnb stays for lower-end hotels in Texas, possibly identifying the former as offering better value at a similar price point. While this increased competition affords consumers greater choice, it also places lower-end hotels in regions with high Airbnb penetration at greater risk. 5.1.2 Business travel hotels as a control group A second distinction that relates to the substitutability between hotel and Airbnb stays regards the extent to which hotels are used for business travel. With most business travel traditionally arranged through employers, an Airbnb stay may be. more difficult to suhstitute. 14A concern with this analysis is our choice of Luxury hotels as the control group. As is evident in Figure 8 their average quarterly revenues are significantly higher compared to lower price segments, with more pronounced inter-quater variation. As a robustness check, we repeated the same analysis using Upscale hotels as the control group, omitting Luxury hotels altogether. Our results remained essentially unchanged. 13 F Also; business travelers may make greater use of those hotel amenities not typically provided in an Airbnb stay. Concretely, consider hotels with conference and meeting facilities. This amenity primarily serves business travelers, drives accommodation revenue through stays by conference attendees, and is a service rarely provided with an Airbnb stay. For these reasons, we anticipate that hotels with larger conference and meeting spaces will see less of an impact on their revenues as a direct consequence of Airbnb's entry. This observation motivates a second DDD design, this time employing conference hotels as a control group. Our hypothesis is that the most affected segment of the hotel industry are those hotels in areas with high Airbnb penetration but which are less likely to attract business travelers. Our STR hotel dataset spans 'T'exas hotels with wide variety in meeting space size, facil- itating this comparative analysis. Approximately 10% of the hotels in our dataset have at least 10,000 square feet of meeting space. For reference, spaces of this size can usually ac- commodate hundreds of people. We begin our analysis by separately estimating the impact of Airbnb on hotels with successively higher cutoffs for meeting space: no meeting space; at least 500 square feet of meeting space, at least 1,000 square feet, and at least 2,000 square feet. We present our results in the first four columns of Table 5, which shows that as we limit our analysis to hotels with larger cutoffs, the impact of Airbnb becomes progressively smaller. We then estimate the following model on our complete dataset: log Hotel R.evenueit =Qllog Airbnb Listingsit + #21og Airbnb Listingsit x log Meeting Spacei + x',,y + ai + Tt + cit. (3) The coefficient of interest in this model is P2i for the term representing the interaction of log Airbnb Listings and log Meeting Space. According to our hypothesis, hotels with conference facilities should experience less of an impact due to Airbnb and hence (32 should be positive. Our results, displayed in the final column of Table 5, are consistent with this hypothesis: a unit increase in log Meeting Space reduces the magnitude of the Airbnb effect by 0.002 (p < 0.01). Meanwhile, the coefficient of the main effect, 01, remains negative and statistically significant. In summary, we argue that whereas differences in hotel revenues between markets with varying degrees of Airbnb adoption could potentially arise due to unobserved factors un- related to Airbnb, the DDD methodology applied here is much less prone to that line of argumentation. By contrasting hotel revenues along the dimension of meeting space in ad- dition to existing controls; we have further isolated the effect of Airbnb on a hotel segment 14 t t that we hypothesized should be most vulnerable to the rise of Airbnb; hotels that are located in areas with high Airbnb adoption rates and are less likely to attract business travelers. 6 Simulation of Counterfactual Outcomes In the previous section we estimated Airbnb's overall impact on hotel revenue; and the variation of impact across different hotel price categories. However, the point estimates we derived by category (such as changes in Economy hotel revenue with Luxury hotels as a control group) provide limited insight on counterfactual outcomes. In this section, we employ statistical simulation to convey our results more intuitively while incorporating the uncertainty built into our estimates of model parameters (sec King ct a1. (2000)). We first focus on Austin - where Airbnb has been most popular - and ask: what would the revenues of Austin hotels have been if there had been fewer Airbnb listings available? We also consider counterfactual outcomes in which Airbnb grew even faster than observed, to derive insights into hypothetical future scenarios. We finally consider the effect of hypothetical regulatory interventions motivated by current events. As a first step towards answering this question we recast the fixed-effects model in Equa- tion (2) as a random-effects model where we treat the ai as random normal terms with unknown variance (to be estimated). This random-effects specification better serves our simulation goal since; unlike its fixed-effects counterpart, it can be used to mare predictions for hotels outside our sample, including the average hotel. The main shortcoming in random- effects models is that the cat term is assumed to be orthogonal to observed variables. We address this concern in two ways. First, we incorporate hotel capacity, price category, and city as additional controls in our model. Second, following standard practice (see Mundlak (1978)), we explicitly allow for correlation between observables and unobservables by decom- posing hotel random effects to ai = aixi + pi, where pi is a zero-mean random normal term, and xi are the group-means of all time-varying variables in our model." The estimates of the random effects model, omitted for brevity, remain virtually unchanged compared to the corresponding fixed-effect estimates shown in the rightmost column of Table 4. Next,, we use the random-effeets model to compute an expectation for the quarterly revenues of the average hotel for different price categories under different scenarios of Airbnb penetration. The algorithms we use are described in detail by King et al. (2000). We summarize them here for completeness. First, recall that our model can be described in terms of the following parameters: the coefficients P, the variance as of hotel random effects caa, and the variance a' of the idiosyncratic error term cit. Additionally, let x be a vector of 15This correction is easily implemented by incorporating the group means Xj as regressors in otir model: 15 explanatory variables appropriately chosen to describe the setting for which we are computing an expected value (x, for example, contains as one element the number of Airbnb listings, and as another the price category of the hotel.) To obtain an expectation for the average hotel we set ore to zero. Then, to compute a single expected value we do the following: 1, Draw a parameter vector (b, 6,) from the sampling distribution of our model'& es.tima- tors.rs 2. Using the vector (Q, c~E) we produce 1000 samples from a normal distribution N(/ x', &E). 3. Since the dependent variable is expressed in a log-scale we apply an exponential trans- formation to the above samples to convert them to dollar values, and take their sample mean to arrive at a single expected value. To approximate the full distribution of the expected value of a hotel's quarterly revenues we repeat the above process 1000 times, and use these samples to compute quantities of interest such as the mean expected revenue, and its standard error. A final technical point merits discussion. When we perform simulations of alternative levels of Airbnb penetration we only manipulate the explanatory variables associated with the interaction coefficients in Equation 2, while we keep the explanatory variable rtssociatcd with the main effect at its observed levels. This leads to more conservative estimates of Airbnb's effect, and captures the intuition that we measure changes in revenue above and beyond any changes in the revenue trends of our Luxury hotel control group. For our simulations, we consider two sets of counterfactuals. The first is motivated by an alternative reality in which Airbnb did not come to exist. An obvious way to proceed with simulating this scenario would be to assume that the number of Airbnb listings would be zero. However, we believe that such an assumption is unrealistic. In a world without Airbnb, some consumers would have likely used one of many other websites that serve a similar purpose, such as Vacation Rentals by Owner (VRBO), HomeAway, or even Craigslist, to make their properties available for rental. At the same time, given the inability of incumbent sites to match Airbnb's growth, we conjecture that the fraction of listings that would have found their way online if Airbnb did not exist is small. While acknowledging that this fraction is difficult to estimate, we propose simulating two counterfactuals where 1% and 10%a of Airbnrb's inventory is made available online via alternative sites. Our first set of simulations is shown in Figure 9. For each hotel category other than the control group (Luxury), for which we assume. the Airbnb effect to be zero, we plot the mean expected value of the first "The coefficients of the rnodel follow a multivariate-normal sampling distribution, while the error term follows an inverse scaled chi-square distribution. 16 difference in hotel revenues by quarter between observed levels of Airbilb penetration and the counterfactual of 1% Airbnb penetration. The solid lines can be interpreted as the expected financial impact of Airbnb on the average hotel in Austin over time (or, alternatively the expected gain for the average hotel if a large fraction of Airbnb inventory is eliminated). The grey bands are 95% confidence intervals. These plots depict a negative trend in revenue coincident with the arrival of Airbnb in 2008 for each of the three lowest hotel categories, while that of Upscale is inconclusive. For the three lowest categories, the revenue gap appears to widen over time, most prominently for the Economy segment, due to the sharp rise of Airbnb listings. The difference in quarterly revenues for the average Economy hotel in Austin grows to an absolute value that exceeds $50,000 in expectation in early 2018. The plots also highlight a limitation of our modeling strategy: due to the logarithmic nature of our model, small absolute changes in Airbnb inventory during Airbnb's early stages have a seemingly disproportionately high effect on hotel revenues. However this modeling choice is not arbitraryt we chose it intentionally to incorporate diminishing hotel revenue impacts as the marginal supply of Airbnb rooms increases. In Figure 10, we apply the same methodology to simulate revenue differences for all of 2012, the most recent year for which we have complete data. Yearly estimates are of interest because unlike quarterly estimates, they are not sensitive to seasonal variation (see, e.g. Figure 8). The two darkest bars correspond to differences between observed levels of Airbnb penetration and the 1% and 10% alternatives. We estimate that the difference at the 1% penetration level is A84,000 + $28, 000 for an average Budget hotel.; -$250,000+ $61, 000 for Economy, and, -$200,000 f $142, 000 for Midprice. For an average Upscale hotel, the difference is not significantly different from zero. If we assume 10% Airbnb penetration, these estimates become substantially lower: -$40,000 f $14, 000 for Budget, -$119, 000 f $32, 000 for Economy, and -$98,000 ± $75, 000 for Midprice. These estimates axe reflective of significant substitution patterns between Economy hotels and Airbnb accommodations, Next, We turn our attention to predicting the impact of Airbnb's growth in the future, While it is beyond the scope of this work to predict the rate at which Airbnb will grow, our methods can readily be extended to analyze the counterfactual setting in which Airbnb adoption doubles, while keeping other variables in our analysis constant at their latest ob- served values. Here, we return our focus to the state-wide Airbnb impact, by forming a prediction for every hotel in Texas. To proceed, we first obtain predictions for the random components ai for all hotels in our dataset. We then use these predicted ai's in our simula- tion as above, enabling us to compute first-differences in quarterly revenue between current rates of Airbnb penetration and doubled rates of penetration. We assume that under this Airbnb-doubling scenario there will be no new Airbnb listings in areas that currently have no 17 Airbnb listings.. In percentage terms; a doubling of Airbnb amounts to an additional revenue shortfall of -2.1% (with a standard deviation of 0.36%) for Budget hotels, -2.6% (0.32%) for Economy hotels, and -0.9% (0.32%) for Midprice hotels. The effect is insignificant for Upscale properties. We next turn our attention to scenarios motivated by the regulatory and legal headwinds that Airbnb currently faces. For example, in NYC, Airbnb is currently being challenged by litigators who allege that Airbnb accommodations not shared by a landlord are in violation of city law, and in many cases, the leases that tenants signed. In related legal action, regulators are targeting owners who have multiple units on offer, arguing that those owners are running illegal and unregulated hotels. These considerations are encapsulated in our second set of simulations, in which regulators successfully either eliminate non-shared rooms, or limit Airbnb landlords to a single unit, respectively. To put these various effects in perspective; in Austin there are (as of Q2 2013) 5,468 listings, of which 3,979 are managed by single-property hosts; while the remaining, 1;489 listings are managed by 594 hosts; Segmenting Airbnb listings by type, the Austin market consists of 3,771 entire apartments and 1,697 private or shared rooms.17 The results of these simulations are also displayed in Figure 10 (using the two lightest shades), and they can be interpreted as the expected hotel revenue loss in 2012 incurred due to entire Airbnb apartments, and due to Airbnb properties belonging to hosts who manage multiple listings. Alternatively, the absolute values of these numbers can be interpreted as the expected gains in revenue following successful implementation of the two regulatory interventions we consider. Of the t%vo interventions, the most significant expected gains for hotels are realized when eliminating whole apartments from Airbnb inventory. We estimate that the expected yearly revenue gain for the average Economy hotel from eliminating entire apartments from Airbnb inventory is $56, 000 + $22, 000. The expected gain for the average Economy hotel when limiting Airbnb hosts to a single property each is smaller. $11,0004418,000. When comparing the expected effects of these regulatory interventions;. we should take into account two facts our simulations do not capture. First, the number of Airbnb en- trepreneurs flouting the law by renting out multiple properties is much smaller than the number of hosts renting out entire apartments, making regulation directed at them easier to enforce.1$ Second, according to our data, while multi-unit hosts manage 27% of Airbnb "In NYC, which is the focal point of conversation regarding regulation, there are 18,421 listings, of which 11,309 are managed by single-property hosts, while the remaining 7,112 are managed by 1,869 hosts. In NYC, Airbnb listings consist of 13,240 entire apartments and 5,181 private or shared rooms. "See http;//pando.com/2013/12/08/airbnb-says-this-man-does-not-exist-so--i-had-coffee- with-him/ for the story of an Airbnb host who has received outside funding to build a business leasing out apartments on Airbnb. 18 inventory in Austin, their listings account for 45% of the total number of guest reviews, sug- gesting that these units serve greater demand than the units managed by single-unit hosts. Therefore, the expected hotel revenue gains of regulation that limits the number of listings per host may be greater than our simulations suggest. 7 Sensitivity Analyses and Robustness Checks We now study the sensitivity of our results to modeling assumptions we made, and identify several potential concerns that could limit the applicability and generality of our results. We address these concerns through a series of robustness checks which result in estimations that continue to be consistent with our primary specification. 7.1 Endogeneity of Airbnb market entry A key concern in studies like ours is endogeneity in adoption, i. e., whether there are time- varying unobservables that are correlated both with Airbnb adoption and hotel revenues. For example, failure to control for unemployment rate would raise serious concerns, as clearly it is negatively correlated with hotel revenues, and it is natural to hypothesize that it could be positively correlated with Airbnb adoption. Indeed, Airbnb touts the help it provides to struggling homeowners in paying their mortgage, occasionally making a difference in these properties being repossessed by lenders.19 While we include a rich set of controls in our analyses, and employ a difference-in-differences methodology; the issue potentially remains: are there city-specific, time varying unobservables that affect Airbnb adoption as well as hotel revenues? For example; do individuals wait for hotel revenues in their vicinity to drop to list their property on Airbnb? Intuitively, we view this as unlikely, given the distributed and idiosyncratic nature of Airbnb's expansion. Airbnb adoption is driven by a broad set of distributed individual hosts, each acting in their own self-interest, as opposed to a planned rollout from corporate headquarters. While a firm like Airbnb could promote, itself through incentives when and where it views its competition from hotels as weak, we have no evidence that Airbnb engaged in this strategy. Instead, individuals, many with little prior experience in this marketplace, acted to list their inventory on Airbnb. Since the overhead of doing so is low (limited mostly to production costs in setting up a web page to market the property - there are no fees associated with creating a new Airbnb listing), we argue that individuals largely have acted "See "How Airbnb helps users save their homes", August 2012, http://finan.ce.fortune.cnn.com/ 2012/08/16/Airbnb-foreclosure/ 19 E opportur~istieally; rather than leyeraging deeper strategic ciecision-makin regarding hotel performance, when they adopt Airbnb. This line of reasoning suggests that reverse-causality is not an issue: it is unlikely that many individuals strategically consider hotel revenues in their vicinity before listing their property on Airbnb. To provide additional quantitivc evidence against such concerns, we analyze three dif- ferent subsets of our dataset: 1) cities which Airbnb has entered by Q2 2013, 2) the top-10 largest cities in Texas, and 3) the top-5 largest cities in Texas. By focusing on progres- sively smaller sections of the Texas market, we limit the scope of self-selection in decisions to adopt Airbnb that are correlated with city-specific unobservables. We report the results of these robustness checks in Table 7. In all cases, the impact of Airbnb remains statistically significant, and quantitatively similar to our main specification. To further rule out the possibility of endogeneity in Airbnb's market entry, we employ hazard models to predict the entry of Airbnb into cities as a function of demographic factors, other socioeconomic factors; and hotel revenue; Talale 8 presents the results of this analysis; In column one we define Airbnb market entry as the year and quarter in which the first listing appears in the market. In columns two and three we use alternative definitions of Airbnb market entry: when at least 10 Airbnb listings appear in the market and the date of the market's first review respectively. We find that log hotel roomsit (column one, two and three), unemployment rateit (column two and three) and log Accommodation Sector Employeesit (column two) are statistically significant predictors of Airbnb's entry. However, we find no direct relationship between hotel revenue and Airbnb adoption. These results further support the argument that hotel revenues and the timing of Airbnb's market entry axe unrelated. 7.2 Alternative definitions of Airbnb penetration We next address the concern that our results are driven by our particular choice of pene- tration metric. In response to this concern, we perform sensitivity analyses with alternative measures. First, we consider Airbnb-entry as a dummy variable which is zero before the first Airbnb listing appears in a city, and one thereafter. Our results are reported in the first column of Table 9. The coefficient for Airbnb-entry is near zero. This entry measure appears in the main specification of other studies including Forman et al. (2009), and Chan and Chose (2011). 13ut is it equally valid in the Airbnb setting? According to this definition, and referring back to Table 2, Airbnb has penetrated the San Antonio market in an identical manner to the Austin market. However, by 2013 these similarly sized cities have seen wildly different levels of Airbnb adoption; weakening the case for the appropriateness of this metric. 1Jotivated by this observation,- we experiment with two more robust df.giiitlons of market 20 entry: 1) when at least 10 Airbnb. listings appear in a city, and 2) when at least 50 Airbnb listings appear in a city. We define two corresponding dunnny entry variables, and report our results in columns two and three of Table 9. In both instances, the coefficient for Airbnb entry is negative, statistically significant, and of substantive magnitude. Next, based on the observation that Airbnb only allows guests who have paid for accom- modation to review a listing, we construct a measure of Airbnb penetration based on the count of reviewed listings in each city. First, we exclude any listing which has never been reviewed. Then, for the entry date of each remaining listing, we use the date of its first review (rather than the date the listing owner registered on Airbnb, used in our preferred specification). This measure clearly reflects a more conservative estimate of Airbnb's diffu- sion, as the date of the first review occurs strictly later than the appearance of the property on Airbnb. Our results using this conservative measure are reported in the fourth column of Table 9 and show a negative, mid statistically significant relationship, albeit with smaller magnitude than our preferred specification; Taken together; these robustness checks suggest that our results are not driven by our particular selection of penetration measure. 7.3 The 2008 financial crisis Our next concern regards the 2008 financial crisis, a complex economic event whose impacts -0 I are still being tallied. Airbnb entered the Texas market during the 3rd quarter of 2008, concurrent with Lehman's bankruptcy filing and Merrill Lynch's acquisition by Bank of America. Recall further that the crisis was driven in no small part by subprime lending, which is directly related to Airbnb, a business driven by spare housing inventory. The impact of the crisis on hotel revenues is most evident in the right panel of Figure 8. Given the complexity of the event, one has to wonder if we can control for every time-varying unobservable that could affect revenues as well as Airbnb adoption. Our approach is simple, but not especially nuanced: we exclude the period from the third quarter of 2008 through the end of 2009, which spans the main crisis period, The results using this censored dataset are reported in Table 10, with the full estimation across different hotel price segments. Overall, our results remain unchanged. While somewhat surprising, we conjecture that between controlling for time fixed effects and city-specific time trends we capture the "essence" of the crisis in our prior specification: 7.4 Alternative levels of geographic aggregation A natural question that arises from our analysis regards the level of geographical aggregation over which we define each competitive market, Recall that our preferred specification used 21 i city-level granularity, the relevance of which we argued for in Section 4. Another alternative; which we now consider, is to use the finer ZIP code level granularity in defining markets. However, this definition can be limiting, as each hotels placement within a city is typically the result of strategic placement of a firm, and hotels are therefore often concentrated in ZIP codes zoned specifically for development. See for example the highly non-uniform placement of hotels in Travis County, TX, in the bottom-right panel of Figure 4. In contrast, Airbnb hosts enter the market opportunistically and presumably pay little attention to their ZIP code in their decision to enter the market. Indeed, the histograms in Figure 7 confirm that Airbnb and hotel frequencies do not respect ZIP code boundaries in Austin. Here, we plot the number of hotels and Airbnb listings for the ten Austin ZIP codes with the most hotels (left panel) and with the most Airbnb listings (right panel) as of Q1 2013. Nevertheless, for completeness, we ran regressions using the alternative definition where we consider ZIP code as the level of geographical aggregation. We do this by defining the variable log Airbnb listings as the number of listings in the ZIP code of hotel i at time t and report the result of this model in Table 6. Not surprisingly, we observe that while the coefficients of interest are negative they are not statistically significant for any of the five models. To recap, we have argued that hotels in a specific ZIP are competing not just with Airbnb hosts in that same ZIP code, but across a larger city-level market. For example, in downtown Austin, downtown hotels in ZIP 78701 have only modest competition from Airbnb in that same ZIP (350 listings), but are also contending with hosts in neighboring ZIPS that are highly popular with Airbnb, e.g.., 78704 (approximately 1300 Airbnb listings), and 78702 (approximately 700 Airbnb listings). Finally, we consider the ZIP code model as inconsistent with both Airbnb and the hospitality industry's marketing strategies, both of which are done by city and neighborhoods (often spanning several ZIP codes). Taken together, these observations show that using ZIP codes to define relevant market is not appropriate for our study as it fails to capture important underlying dynamics of the hospitality industry. 8 Discussion and FiAure Work The sharing economy has recently emerged as a viable alternative to fulfilling a variety of consumer needs, ranging from prepared meals to cars to overnight accommodations, that were previously provided by firms. As the size of the sharing economy has grown, so has the magnitude of its economic and societal impacts. To date, discussion of the sharing econ- omy has risen to the level of heated debate, along with a rapidly growing level of attention by legal and regulatory bodies. But rigorous studies that attempt to empirically estimate the impacts of the sharing economy have not yet emerged. Our work is among the first to 22 f provide empirical evidence that the sharing economy is significaiitly changing consumption patterns, as opposed to generating purely incremental economic activity, as argued in prior work. Studying the case of Airbnb, a pioneer in shared accommodations, we identify that its entry into the Texas market has had a quantifiable negative impact on local hotel rev- enues. The substitution patterns we observe by incorporating business hotels and high-end hotels as control groups, strongly suggest that Airbnb provides a viable, but imperfect, al- ternative for certain traditional types of overnight acconnnodation. Our results, which we ccri(irined through a series of robustness checks, pinpoint lower-end hotels as those that are most vulnerable to increased competition from rentals enabled by firms like Airbnb. Us- ing counterfactual simulations, we also model various regulatory interventions to provide an intuitive quantification of their likely effects on Airbnb and hotel revenue in Texas. Returning to the thesis that the sharing economy has the potential to transformatively increase social welfare, as evangelized by Botsman (2012) and others, we assert that a large population of individuals worldwide have indeed benefitted from Airbnb; both those that de- rive incremental income by renting properties through Airbnb, as well as individuals selecting an Airbnb rental as an alternative to a hotel stay. But more broadly, our results should be viewed from outside the confines of the accommodation industry. This more encompassing viewpoint can weigh the positive change the sharing economy can bring about not.only by providing imperfect substitutes for existing products, but also, through an application of Say's Law, by generating demand that did not previously exist through the supply of new products and'services. Harkening back Lo arguments Airbnb has made, supply of inexpensive accommodations can increase travel and tourism spend overall, and thus the sharing econ- omy could be a net producer of new jobs. However, these positives must be evaluated against various costs; including those estimated in this paper. Our study represents a first step into understanding the complex economic, regulatory, and technological issues surrounding the sharing econorny With the projected rapid growth of the sharing economy, a host of related studies will be needed to fully understand and reap its benefits. 23 References. Baker, Kathleen, Alex Coulter. 2007. 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Responses to Entry in Multi-Sided Markets: The Impact of Craigslist on Local Newspapers. Management Science (Forthcoming). Wolfers, Justin. 2006. Did Unilateral Divorce Laws Raise Divorce Rates? A Reconciliation and New Results. The American Economic Review 96(5) 1802-1820. 25 ( Table 1: Means and standard deviations (in parentheses) of the variables used in our analysis. Year Airbnb Hotel Unemployment Hotel Population Accommodation Listings Revenue Rate Rooms Sector Employees 2003 0;0 268392.5 6;6 13214.2 1152272:3 129:3 (0.0) (583259.5) (1.3) (17302.1) (1260860.8) (96.9) 2004 0.0 283580.3 6.0 13594.3 1187167.6 134.6 (0.0) (648198.6) (1.2) (17800.1) (1290309.2) (99.6) 2005 0.0 303021.7 5.3 13364.4 1203840.7 138.0 (0.0) (717413,1) (1,0) (17556:6) (1308677.9) (101.8) 2006 0.0 333977.2 4.9 13377.7 1228555.9 142.1 (0.0) (781584.8) (0.9) (17483.0) (1345337.5) (105.8) 2007 0.0 339360.9 4.3 13298.3 1233473.5 147.6 (0.0) (765206.8) (0.8) (17623.4) (1359674.2) (110.7) 2008 .0:6 337071,9 4;9 13217:0 1241844;1 150;9 (3.0) (748809.8) (1.0) (17546.6) (1377469.2) (113.2) 2009 4.1 270484.0 7.4 13055.0 1245851.2 149.9 (16.4) (592641.9) (1.4) (17531.9) (1401038.8) (112.5) 2010 13.3 269551.5 8.1 13626.2 1261781.9 151.2 (51.3) (603565.4) (1.4) (18454.4) (1418697.4) (112.2) 2011 55.5 284115.4 7.8 13675.9 1283574.3 157.2 (211.1) (638167.1) (1.6) (18653.9) (1450474.8) (115.6) 2012 160.0 301599.9 6.7 14106.1 1309857.6 164.9 (634.7) (652575.6) (1.5) (19219.3) (1478980.8) (121.4) 2013 257:9 333018:3 6.5 14358;2 1332087:0 170:2 (993.5) (736259.8) (1.5) (19646.9) (1506317.7) (125.4) Overall 45.7 300622.8 6.4 13545.4 1250082.9 150.2 (355.1) (677674.0) (1.8) (18153.4) (1394690.3) (112.3) N 118687 118687 118576 118687 118437 97836 Note;- 2013 statistics only include Q1 and. Q2.- Table 2: Airbnb's spatial and temporal penetration. Cumulative counts of Airbnb listings per year in the ten most populous Texas cities. HOstoal San Atitoiuo. Dallas. Austin Ft. Worth BI Paso. Arlington Coi•}itts. Clnistl Plana Laredo. (Pop.) 2.16M 1.38M 1.24M 0.84M 0.78M 0.67M 0.38M 0.31M 0.27M 0.24M 2008 1 5 0 23 0 0 0 0 0 0 2009 4 8 7 125 2 0 0 0 0 0 2010 30 15 19 375 7 0 2 0 0 0 2011 129 52 68 1464 23 3 9 6 3 1 2012 254 12r 150 4278 44 7 17 21 11 1 2013 353 155 198 5168 52 15 20 25 16 1 26 Table 3: The impact, of Airbnb on hotel- revnntlc: (1) (2) (3) (4) (5) log Airbnb -0.040*** --0.037*** -0.041*** -0.041*** -0.050*** Listings (-8.37) (--7.74) (-8.51) (-8.60) (-9.99) Unemployment -0.052*** -0.052*** -0.052*** -0.049*** Rate (-9.86) (-9.95) (-10.06) (-7.44) log Hotel Rooms --0.284*** -0.286*** -0.289*** (-7.87) (-7.88) (-6.04) log Population -0.158 -0.270** (-1.44) (-2.11) log Accommodation 2.028*** Sector Employees (14.32) N 118687 118576 118576 118437 97836 R2 within 0.20 0.20 0.20 0.20 0.19 Note: The dependent variable is log Hotel Revenueit. Cluster-robust t-statistics (at the individual hotel level) are shown in parentheses. All specifications include hotel and time fixed effects, and a city specific quadratic time trend. Significance levels: * p<0.1, p<0.05, p<0.01. Table 4: The impact of Airbnb on hotel revenue by hotel price segment. Budget Economy Midprice Upscale Luxury DDD log Airbnb -0.066*** -0.047*** -0.040*** -0.039*** -0.021 -0.025*** Listings (-7.05) (-4.29) (-4.05) (-3.58) (-1.29) (-4.21) Unemployment --0.052*** -0.023* -0.045*** -0.080*** -0.001 -0.049*** Rate (-4.55) (-1.65) (-3.84) (-5.40) (-0.04) (-7.40) log Hotel Rooms -0:169*** -0:314*** -0:417*** -0:567*** -0:010 --0.289*** (-3.92) (-6.02) (-8.12) (--7.43) (-0.12) (--6.04) log Population -0.456** -0.519** 0.311 -0.052 -0.603 -0.239* (-2.24) (-2.25) (1.18) (-0.17) (-1.58) (-1.90) log Accommodation 1.601*** 3.289*** 2.292*** 1.604*** 3.098* 2.030*** Sector Employees (9.99) (8.68) (6.64) (4.38) (1.67) (14.32) Budget x -0.037*** log Airbnb Listings (6.56) Economy x -0.044*** log Airbnb Listings (-8.15) Midprice x -0:015*** log Airbnb Listings (-2.89) Upscale x -0.004 log Airbnb Listings (--0.89) N 37387 20816 19179 12808 7646 97836 RZ within 0.22 0.30 0.24 0.21 0.16 0.19 Note: The dependent variable is log Hotel Revenueit. Cluster-robust t-statistics (at the individual hotel level) are shown in parentheses. All specifications include hotel and time fixed effects, and a city-specific quadratic time trend. Sign.ifiran.re levels: * p<0.1, p<0.05, p<0.01. 27 ii Table 5: The impact of Airbnb on hotel revenues by rr~eeting space No Meeting Meeting Space Meeting Space Meeting Space DDD Space at least 500 sq. ft. at least 1000 sq. ft. at least 2000 sq. ft. log Airbnb -0.055*** ---0.041*** -0.032*** --0.031** -0.057*** Listings (-7.46) (-4.98) (-3.12) (-2.33) (-10.79) Unemployment -0.047*** -0.054*** -0.053*** -0.060*** -0.049*** Rate (-4.91) (-5.12) (-3.66) (-3.15) (-7.40) log Hotel Rooms -0.236*** -0.273** -0.176 -0.121 -0.289*** (--5.96) (-2.41) (-1.46) (-0.96) (--6.04) log Population -0.397*** 0.162 0.032 0.018 -0.260** (-2.68) (0.75) (0.13) (0.05) (-2.03) log Accommodation 2.142*** 1.740*** 1.684*** 1.668*** 2.030*** Sector Employees (11.85) (5.87) (4.29) (4.17) (14.32) log Meeting Space x 0.002*** log Airbnb Listings (3.82) N 51532 33692 21412 12734 97836 R2 within 0.22 0.19 0.20 0.22 0.19 Note: The dependent variable is log Hotel Revenue;t. Cluster-robust t-statistics (at the individual hotel level) are shown in parentheses. All specifications include hotel and time fixed effects, and a city-specific quadratic time trend. Sig7rificanve levels: * p<0.1, p<0.05, p<0.01. Table 6: The impact of Airbnb on hotel revenue when the relevant market considered is a ZIP code. (1) (2) (3) (4) (5) log Airbnb 0.001 0.000 -0.001 --0.001 -0.010 Listings (Zipcode) (0.09) (0.02) (-0.08) (-0.14) (--1.41) Unemployment -0.052*** -0.053*** -0.053*** -0.050*** Rate (-9.88) (-10.02) (-10.05) (-7.39) log Hotel Rooms -0.182*** -0.183*** -0.160*** (Zipcode) (-9.67) (-9.68) (-8.20) log Population -0.036 -0.144 (-0.35) (-1.26) log Accommodation 1.983*** Sector Employees (14.03) N 118687 118576 118576 118437 97836 W within 0.24 0.24 0.24 0.24 0.23 Note: The dependent variable is log Hotel Revenue;, Cluster-robust t-statistics (at the individual hotel level) are shown in parentheses. All specifications include hotel and time fixed effects, and a city-specific quadratic time trend. Significance levek * p<0.1, p.<0.05, p<0.01. 28 Table 7: Robustness checks for endogeneity in Airbnb's entry into different. cities. Airbnb Eventually Top 10 Cities Top 5 Cities log Airbnb Listings -0.053*** -0.083*** -0.076*** (-10,57) (-12.17) (--8.88) Unemployment rate -0.034*** -0.032*** -0.006 (-4.77) (---2.78) (-0.44) log Hotel Rooms -0.337*** -0.419*** 0.020 (-9.06) (--5,68) (0.21) log Population -0.216 -0.247 -0.479 (----1,51) (-0.99) (-1.56) log Accommodation 2.107*** 2.212*** 2.728*** Sector Employees (13.29) (10.80) (12.68) N 84489 47392 38109 11,2 within 0.16 0.14 0.14 Note: The dependent variable is log Hotel Revenuejt. Cluster-robust t-statistics (at the individual hotel level) are shown in parentheses. All specificaLions'include hotel and time fisted effects, and a city-specific quadratic Lime trend. Significance levels: * p<0.1, p<0.05, p<0.01. Table, 8: Hazsard- ModelK for predicting Air-bnb's entry Airbnb enters when Airbnb enters when Airbnb enters when 1 listing appears 10 listings appear 1 listing is reviewed log Population 0.048 -0.190 0.041 (0.62) (-0.88) (0.37) log Hotel Rooms 0.551*** 1.286*** 0.622*** (6.49) (4.28) (4.90) Unemployement -0.102 -0.280** -0.189* Rate (-1.40) (-2.10) (-1.82) log Accommodation 0.103 0.307* 0.140 Sector Employees (1.54) (1.96) (1.50) log Hotel Revenue 0.146 0.043 0.071 (1.17) (0.14) (0.41) N 9892 10607 10408 Log Likelihood -593.6 -97.7 -361.2 Note: The table reports the results from the hazard model predicting Airbnb's entry into a city. The dependent variable equals one when the city experiences Airbnb's entry and zero otherwise. Airbnb's entry is an absorbing state, therefore the city is dropped from the sample in the quarters after the dependent variable becomes one. The controls include de- mographic and number of employees in the accommodation sector at county level and unemployment rate, number of hotel rooms and hotel revenue at city level. Significance levels: * p<0.1, p<0.05, p<0.01. 29 ( t Table 9: Robustness checks with alternate definitions of Airbnb Penetration. Airbnb enters when Airbnb enters when Airbnb enters when Airbnb enters when 1 listing appears 10 listings appear 50 listings appear 1 listing is reviewed Airbnb Entry 0.003 -0.072*** -0.066*** -0A17** (0.44) (-8.44) (-6.39) (-2.42) Unemployment -0.051*** -0.049*** -0.052*** -0.051*** Rate (-7.72) (-7.37) (-7.80) (-7.69) log Hotel Rooms -0.276*** -0.282*** -0.276*** -0.277*** (-5.95) (-5.96) (-5.96) (---5.97) log Population 0269** -0.264** -0.278** -0.265** (-2.10) ( 2.06) (-2,18) (--2.07) log Accommodation 1.992*** 2.048*** 1.981*** 1.992*** Sector Employees (14.12) (14.42) (14.06) (14.12) N 97836 97836 97836 97836 R2 within 0.18 0.18 0.18 0.18 Note: The dependent variable is log Hotel Revenue;t. Cluster-robust t-statistics (at the individual hotel level) are shown in paren- theses- All specifications include Hotel and time fixed effects, and a city-specific quadratic time trend. Significance levels: * p<0.1, p<0.05, p<0.01. Table 10: The impact of Airbnb on hotel revenues excluding observations spanning the 2008 financial crisis. All Budget Economy Midprice Upscale Luxury log Airbnb -0.046*** -0.065*** ---0.032** -0.044*** -0.040*** -0.012 Listings (-8.38) (-6.19) (-2.49) (-4.28) (-3.35) (-0.63) Unemployment -0.023*** -0.036*** 0.005 -0.014 -0.045*** 0.034 Rate (-3.06) (-2.73) (0.32) (-1,05) (-2.65) (1.13) log Hotel Rooms -0.315*** -0.199*** -0.308*** -0.413*** --0.604*** --0.007 (-7.82) (-4.99) (-6.79) (-8.12) (--7.34) (-0.08) log Population -0.120 -0.562*** --0.286 0.684** 0.348 -0.698* (-0.86) (-2.73) (-1.19) (2.51) (0.99) (--1.80) log Accommodation 2.045*** 1.658*** 3.253*** 2.364*** 1.517*** 3.315* Sector Employees (14.38) (10.36) (9.14) (6.61) (4.01) (1.77) N 82823 31803 17625 16198 10751 6446 W within 0.20 0.23 0.31 0.26 0.22 0.18 Note: The dependent variable is log Hotel Revenue,t. Cluster robust t-statistics (at the individual hotel level) are shown in parentheses. All specifications include hotel and Lime fixed effects, and a city-specific quadratic lime trend. Significance levels: * p<01, p<0.05, p<0.01. 3Q Right in the Hurt of E. 6th St. Fynut65 i 8tx C•-M +_W ! G °7}`-i:'f . ' w . r $59 k c C tG t y SAVL To WISH a 1 LIST. . 1,.dd•li:, s Y- K Uescrlritton l,;,a<r,l~. ~ . ' Ho t~ iytit ' r J E--i!1 A '5i ta.r.. Emit _ nom rlalri t. s s i` ' t a i i, r: Real Bed h+_ r tF 1 91 ci 1 + a: Y'A t i. F I F, U 1 _t Sl~t•a , se P, man 'rly it a1r t t Ft s t' :f 1 5 ~witrF . ss,. at.-3 t:= i ,r.~ i•=''. Ct-~ sir, ivrth;n a fora' fraurs 2 claps atp - 2:(X) Phi l.^-J i2:(YJ t , 1, lnurn) Htnti• does A!Ftu}i+ G'r:~l ' ri to, M ft Fzst. S SV , l4 fry" %i q,rimpt 5:Ai tt' f F F~ i si a i a _.._.w:1 t.: ty: i>s 1~ tuFriir Yd y s:rd , lieviews t93j Y7>r•!'~:Is ;Sf, . Are you or yotu Ir ,,ntls i . IM Mill ttv~ NVO? Overall Guest Accura p cemn uunlcRti L4 ' w Satisfaction 4tean'.a,ess Location fia Cf*ck In x ifaitrr A A ~sg~,Y r:;f1'...as uor`... 11 .3 t ,tea"r. } I Sr.i- 1 1a '1` ~c 11 # T ~ r i : CS., i f; i.) a.J ;tar ~s . 1_«,r ;ill lay CSitrer l_istilvs Figure 1: A typical Airbnb listing. 31 1 I mn aFmv?~b;e gup VIAe xha A:rt',1ptf to nll.-.G-I Uu4Jo m!. gaud n:gh6lo. aay5 somA-;-I . S,- k.." ;.A,,+1, XT.1 'i G•,dd I .--0-!IJ n'/'-.:,rl-ma.aun, 114) "1. 14l..-;,'1'1 nousa :n SxliiI A"!:;Y ."'d .11 ':-11:, W!-110 ..._:t>I c :sn i•:~~, -1 Znylnrq 7:4a~lA p' HsF fY T'•+•~ . ~5 4 Jeremiah Reviews ,...0 Vcrilicationc ' X Royluws From Guests G:n tly 'E I I l/ I, I -P," ]d i E. -dVTh- ~Id_l.yh.+„j :..i1 Fr". ~y pd4. d. n,13o1 ,-1 1J'~•, j- iw ',.64„_~.,n I'IY M1: ff SYb-, Thz~ 1',t- Y, d N 11J I I1 dl-"'e' Ih ,I t-AAW.. }I r 1, d•111 y a I 1a 1 h cf1 d Y i r Ir 1 S tfOrI 1 1 I J I I,- 1i t- L ji ..FKt 4,. H1til .r Y1.~1,:Y ]'n J:lunv l?,L•:' )ud l~l, i. nc]: _d y... 1y 1•.I.-dot-, ha ' I'nslt%1c-ty Ikvi2rrFtl ~ you lar~o7 :,q}Ih::Yp, irok 1.3 .1{'.{.-ty, A..l. !h:..1:»fortnv ai of .~;iN..,•. ur to Rwtn. ~Y:1 dut(n ry 6y hr; .•umu~~p I AuH! Work . PCL. so f¢b- . - . - Loc d h nud r 4.. t p oat x t'._.1 f al d p'._ ,'g, a. al 'maa ]Mal UstungS hail r, 9-d ..v. 4nvn.; i n 1 t..d t rt_y 1 J G :rc.y.cd Ili; 11 t. I 1fll Y YJI 1 J 1' t rylh y, f~ t q y F i J I- y 1 I i 1 I,,' ] f F' I J J 1 d [ 'd 11 1 ~ tit ! y h t Y J'.i 1 1 ~..:~lht1 I:NJ.. h s F i, 11 ,-<,t r..n<t 1•'1t•r i, li ItYI ~a~i , - .:.ni .n, a. I T r:.amm n.! tna yl Rrtt„t. .':i 'ir., i.. ) P,a - •lo ,L/ y.. .ubM1r -g.:».A.•.... to ,p out. ih.-.~ J. Ipt~... Li 4)...1uS:ht Figure 2: A typical Airbnb user profile. 400 ; 0 300 1 P n .0200- 100- 20x1 2003 2005. 200.7 2609. 20.11 2043. Capacity - At least 5 rooms - • Fewer than 5 rooms Figure 3: Quarterly counts of Austin hotel occupancy tax paying properties by capacity. 32 { Airbnb Hptis a ••»e• 8 g,~ya• 9 ~ • • J•p M 0.4 goo 00 to* :2 0 i I 4~ T 0 2110 400 kin 8 7 s ~ •y oz • v s a no c d°~ «a® • ® • O • U N ® « w • e 0 10 20 Figure 4: Geographical distribution of hotels. and Airbnb listings in the state of Texas (top) and in Travis County, TX (bottom) in 2013. 1.5 0.25 - log Hotel Revenue Normal MIYI Aon 0,20- 1.0- 0.15- 0.10 0.5 0.05- 0.0 0.00- $5M $10M $15M 4 6 0 10 12 14 10 $0 M Figure 5: Density of Hotel Revenue (left) and log Hotel Revenue (right). 33 $400 0 All Texas $400 ❑ > 0 reviews $300 Top 5 cities $300 ® > 5 reviews a $200 - MM N $200 $1$0 ❑ 1 Elm $100 $0 `A $0 .a Figure 6: Average 2012 daily rate (ADR) by price segment (left) vs. average Airbnb listing prig by type (right). In the left panel, light bass reflect ApR across all of Texas (source: STR), and dark bars reflect ADR for the five biggest metro areas of Texas (source: Ho- tels.com). The right panel presents average price by Airbnb listing type in Texas in 2013. 1000° 1000 500 500 0 0- 20 15 15 • ~ 10 0 10 N 5 N 5 ® r~ 0- 0- 1~'~ 1~~ 10~ 1yti 1y~ 1y0 1oa 1y4> 1~ 1~ 1'5 1b '1b 1% 1b 16 4b 1q, Alb 1b At 19, Alb 1Ib 1a 1% 1l' At Figure 7: Hotel and Airbnb density, as measured in Q2 2013, for the ten Austin zip codes with the most hotels (left) and with the most Airbnb listings (right). 14- C $2.0 CD 13 C -\f-~~ a 12N. a' $0.5 x_ w w_Y 11 2004 2006 2008 2010 2012 2004 2006 2008 2010 2012 Price segment Luxury -naev Upscale Midprice Economy Budget Figure 8: Average quarterly hotel revenue by price segment (left) and log hotel revenue (right). Dollar values are deflated to January 2003 (start of our sample). 34 r Budget Economy $50,000 ` . $0 -$100,000 , I, Midprice Upscale T $50,000- $0- -$50,000- -$100,000- 2003 2005 2007 2009 2011 2013 2003 2005 2007 2009 2011 2013 Figure 9: Expected difference in the quarterly revenues of the average Austin hotel between the cases, of a) observed. Airbnb penetration, and b) 17o of observed Airbnb penetration.. $300,000 Airbnb vs. $200,000 M 1% Airbnb ® 10% Airbnb 13 Airbnb excluding entire apartments $100,000 0 Airbnb limited to one listing per host $0 - !M111111~ 4 - ~ f -$100,000 -$200,000 -$300,000 -$400,000 Budget Economy Midprice Upscale Figure 10: Expected difference in 2012 revenues for the average Austin hotel between a) observed Airbnb penetration, and b) four counterfactual scenarios with varying levels of Airbnb penetration. 35 Speaker Request Form TMS FORM IS A PUBLIC RECORD ALL INFORMA a. 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Speaker Request Poem t: THbS EORM IS A PUBLIC RECORD ALL INFORMATION PROVIDED WILL BE MADE AVAILABLE TO THE PUBLIC 1) Complete this form and return it to the City Recorder prior to the discussion of the item you wish to speak about 2) Speak to the City Council from the table podium microphone. 3) State your name and address for the record. 4) Limit your comments to the amount of time given to you by the Mayor, usually 3 or 5 minutes. 5) If you present written materials, please give a copy to the City Recorder for the record- b) You may give written comments to the City Recorder for the record if you do not wish to speak. (Comments can be added to the back of this sheet if necessary) 7) Speakers are solely responsible for the content of their public statement. Tonight. 's Meeting Date 0-(9 2,0 1-4; Name (plea e per] Address (no P.O. Box) 4,..,--- Phoneme "-t _36W-0/S_`-Email F UV fi-tom ILCE'Ai ~'r to` a''&. 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Oregon law does not always require that the public be permitted to spear The Ashland City Council generally invites the public to speak on agenda items and during public forum on non-agenda items unless time constraints limit public testimony. No-person has an absolute right to speak or participate in every phase of a proceeding. Please respect the order of proceedings for public hearings and strictly follow the directions of the presiding officer. Behavior or actions which are unreasonably loud or disruptive are disrespectful, and may constitute disorderly conduct. Offenders will be requested to leave the room. Comments and statements by speakers do not represent the opinion of the City Council, City Officers or employees or the City of A.shland. 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Box - ~f a~~'j Z2 Email yzuuaulc'l('JnL( 7-~,tS~(aa el -Phone Tonight's Meeting Date (d (~J f Regular Meeting Agenda item number l0 OR Topic for public forum (non agenda item) Land Use Public Hearing For: Against: Challenge for Conflict of Interest or Bias if you are challenging a member (planning commissioner) with a conflict of interest or bias, please write your allegation complete with supporting facts on this form and deliver it to the clerk immediately. The Chair will address the written challenge with the member. Please be respectful of the proceeding and do not interrupt. You may also provide testimony about the challenge when you testify during the normal order of proceedings. Written Comments/Challenge: The Public Meeting Lam requires that all city meetings are opera to the public. Oregon law does riot always require that the public be perrrritted to speak. The Ashland Planning Commission generally invites the public to speak on agenda items and during public forum on iron-agenda items unless time constraints lirrrit public testimony. No person has an absolute right to speak or participate in every phase of a proceeding. Please respect the order of proceedings for public hearings and strictly follotiw the directions of the presiding officer-. Behavior or actions which are ur7reasoiiably loud or• disruptive are disrespectfirl, and rimy constitute disorderly conduct. Offenders will he requested to leave the room. Comments and statements by speakers do not represent the opinion of the City Council, City Officers or employees or the City of Ashland. Speaker Request Form. THIS FORM IS A PUBLIC RECORD ALL INFORMATION. PROVIDED WC L BE MADE AVAILABa E TO THE PUBLIC 1) Complete this form and return it to the City Recorder prior to the discussion of the item jou wish to sneak about. 2) Speak to the City Council from the table podium microphone. 3) State your name and address for the record. 4) Limit your comments to the amount of time given to you by the Mayor, usually 3 or 5 minutes. 5) If you present written materials, please give a copy to the City Recorder for the record. 6) You may give written comments to the City Recorder for the record if you do not wish to speak. (Comments can be added to the back of this sheet if necessary) 7) Speakers are solely responsible for the content of their public statement. Tonight's Meeting Date Name gu_s~ R) .(please print) Address (no P.O. Box) (`t f < V @ S Phone • V C~ rf t Regular Meeting Agenda topiditem number 1 OR Topic for public forum (non agenda item) Land Use Public Hearing Please indicate the following: For: Against: Challenge for Conflict of Interest or Bias If you are challenging a member (a city councilor or a planning commissioner) with a conflict of interest or bias, please write your allegation complete with supporting facts on this force and deliver it to the clerk immediately. The Presiding Officer will address the written challenge with the member. Please be respectful of the proceeding and do not interrupt,. You may also provide testimony about the challenge when you testify during the normal order of proceedings. Written Comments/Challenge: The Public Meeting Law requires that all city meetings are open to the public. Oregon law does not always require that the public be permitted to speak The Ashland City Council generally invites the public to speak on agenda items and during public forum on non-agenda items unless time constraints limit public testimony. No -person has an absolute right to speak or participate in every phase of a proceeding. Please respect the order ofproceedings for public hearings and strictly follow the directions of the presiding officer. Behavior or actions which are unreasonably laud or disruptive are disrespectful, and may constitute disorderly conduct. Offenders will be requested to leave the room. Comments and statements by speakers do not represent the opinion ofthe City Council, City Officers or employees or the City of Ashland. Planning Commission Speaker Request Form 1) Complete this form and return it to the Secretary prior to the discussion of the item you wish to speak about. 2) Speak to the Planning Commission from the table podium microphone. 3) State your name and address for the record. 4) Limit your comments to the amount of time given to you by the Chair, usually 5 minutes. 5)1f you present written materials, please give a copy to the Secretary for the record. 6) You may give written comments to the Secretary for the record if you do not wish to speak. 7) Speakers are solely responsible for the content of their public statement. 1 Name (plea we print) Address (no P.O. Box) Phone `mail Tonight's Meeting Date( 11-„ ~l 15 _ Regular Meeting A genda item number OR Topic for public forum (non agenda item) 1P, / - vl/t Land Use Public Hearing For: Against: Challenge for Conflict of Interest or Bias If you are challenging a member (planning commissioner) with a conflict of interest or bias, please write your allegation complete with supporting facts on this form and deliver it to the clerk immediately. The Chair will. address the written challenge with the member. Please be respectful of the proceeding and do not interrupt. You may also provide testimony about the challenge when you testify during the normal order of proceedings. Written CommentslChallenge: The Public Meeting Lam, requires that all city meetings are open to the public. Oregon lam, does not alivays require that the public be permitted to Speak. The Ashland Planning Commission generally invites the public to speak on agenda iterrrs and during public"forum on non-agenda items zrrrless time co77sb•aints limit public testimony. No person has an absolute right to speak or participate in every phase of'a proceeding. Please respect the order of proceedings f n• public hearings and strictly follom, the directions of the presiding officer:. Behavior or actions which are unreasonably loud or disruptive are disrespectful, and may constitute disorderly conduct. Offenders tivill be requested to leave the room. Comments and statements by speakers do not represent the opinion of the City Council, City Officers or employees or the City of Ashland. Planning Commission Speaker Request Form 1.) Complete this form and return it to the Secretary prior to the discussion of the item you wish to speak about. 2) Speak to the Planning Commission from the table podium microphone. 3) State your name and address for the record. 4) Limit your comments to the amount of time given to you by the Chair, usually 5 minutes. 5) If you present written materials, please give a copy to the Secretary for the record. 6) You may give written comments to the Secretary for the record if you do not wish to speak. 7) Speakers are solely responsible for the content of their public statement. Name_ (please print) Address (no P.O. Box) i 0 Phone',-A) Email Tonight's Meeting Date Regular Meeting Agenda item number OR Topic for public forum (non agenda item) Land Use Public Hearing For: Against: Challenge for Conflict of Interest or Bias If you are challenging a member (planning commissioner) with a conflict of interest or bias, please write your allegation complete with supporting facts on this form and deliver it to the clerk immediately. The Chair will address the written challenge with the member. Please be respectful of the proceeding and do not interrupt. You may also provide testimony about the challenge when you testify during the normal order of proceedings. Written Comments/Challenge: The Public Meeting Law requires that all city meetings are open to the public. Oregon law does not always require that the public be permitted to speak. The Ashland Planning C0171missiOn generally invites the public to speak on agenda items and during public forum on non-agenda items unless tinge constraints liinit public testimony. No person has an absolute right to speak or participate in every phase of a proceeding. Please respect the order of proceedings for public hearings and strictly follow the directions of the presiding officer. Behavior or actions which are unreasonably loud or disruptive are disrespectful, and may constitute disorderly conduct. Offenders will be requested to leave the room. Comments and statements by speakers do not represent the opinion of the City Council, City Officers or employees or the City of Ashland. Speaker Request Form THIS FORM IS A PUBLIC RECO" f ALL INFORMATION PROVIDED WILL BE MADE+ AVAILAB LX TO THE PUBLIC 1) Complete this form and return it to the City Recorder prior to the discussion of the item you wish to speak about. 2) Speak to the City Council from the table podiuin microphone. 3) State your name and address for the record. 4) Limit your comments to the amount of time given to you by the Mayor, usually 3 or 5 minutes. 5) If you present written materials, please give a copy to the City Recorder for the record. 6) You may give written comments to the City Recorder for the record if you do not wish to speak. (Comments can be added to the back of this sheet if necessary) 7) Speakers are solely responsible for the content oftheir public statement. Tonight's Meeting Date jil? o Name iUU y Q ~i (please print) Address (no P.O. Box) f Phone , Q Email Uc~ Regular Meeting Agenda topiditem number V { ~R Topic for public forum (non agenda item) Land Use Public Hearing Please indicate the following: For: Against: Challenge for Conflict of Interest or Bias if you are challenging a member (a city councilor or a planning commissioner) with a conflict of interest or bias, please write your allegation complete with supporting facts on this form and deliver it to the clerk immediately. The Presiding Officer will address the written challenge with the member. Please be respectful of the proceeding and do not interrupt. You may also provide testimony about the challenge when you testify during the normal order of proceedings. Written Comments/Challenge:' The Public Meeting Law requires that all city meetings are open to the public. Oregon law does not always require that the public be permitted to speak The Ashland City Council generally invites the public to speak on agenda items and during public forum on non-agenda items unless time constraints limit public testimony. No person has an absolute right to speak or participate in every phase of a proceeding. Please respect the order of proceedings for public hearings and strictly follow the directions of the presiding officer. Behavior or actions which are unreasonably loud or disruptive are disrespectful, and may constitute disorderly conduct. Offenders will be requested to leave the room. Comments and statements by speakers do not represent the opinion of the City Council., City Officers or employees or the City of Ashland. RECEIVED thumb gallery map « <prev 1-20 next> nevhes± ieb~(:El!tt ftl i,tt?tr;x cti'a133rz.,}t;to-$135/1br-525ft2-(Ashland) map Feb s 'got- 's,c,rrl•; its{ w r'lJ tN t;} ''•'2 bccirt:r . to vnl vei>c " `-,sc.::l}`; -:$901/ 2br - 1262ft2 - (E Medford) . map reb7SIT. PS cf ,f>t3." -'I Ii'I"tI 0 S1 C J FAN` ti l_1-,X_'W,-2br-676ft2-(Ashland). map rcb2 far ltiiflu 1 4 sti ation II m.,e $2300 / 3br - (Ashland, OR) : 1to Uc River - `.$139: / 2br - 1152ft2 - (Trail) snap J111131 11rt1l t r4::^ '~"7_.i,d Cove C',fi?t-~t 1.1 the 'Woo; hill 27 C. UCc l ??mete: i n ;ea,, en - $85 / 1 br - 600ft2 - (Rogue River) CI_ ! medford " ; I housing vacation rentals : I [ aCCetint post vacation rentals << Ashland ee"t' care a?e~ search search titles only jail 13 " ` ".:'C i C - yG fUU 1 i UI t,• iiai iv, JI ~f has image i posted today Jai, 21 R!r shed, i tr,t<ftze = Ionic III, (JU+vr1tY> .1 - $2300 / 3br - 1500ft2 - (Ashland) I Cats Ok Jan 16 01 ,I)Ihng- C of -e the I ulevarti -$1900 / 1br - 7502 - (Ashland) map i dogs ok Jan 13 PCaCCl i:ii 'S? r , F,c tl e1 t :u"E 1 iTIS is shlaml - 3br - (Ashland, OR) r map ,-I private bath private roam Ju s AUGUS'F on Pine Sit cet! $1300 / 1 br - (Ashland) + housing type j,", 5 I3c°mlf ul V IC 1(JR tAN V ica4 c3 . I lon . - $2300:/ 3br - (Ashland, OR) Ja114 I & 2, 3-odr oni N;21Nft .;,.c -(Talent) map min max Jan 3 Pea 1-1 titre.[ C tt ",e: n6re i'vl ?tlt !'f t t to 201 $2000; 121br - 900ft2 - (Ashland) .r map all bedrooms : 1 all bathrooms : i Dec 31 i_, t <,;; Vacation t-IiJr,t< is ?<tt dliazl - $495 / 6br - 5000ft - map FT2 D,01 F ,III 'olzll 1< ~ 1'ron, I)o vntmvn K fa+rch 7 to A til 1 ° 2015 -1$1850.! / 2br - 1850ft2 - (Ashland) rein max Dec 28 Stay at.'Rulh's Qviet Relreal' by [he month - $710 / 1br - (Ashland) reset search Few LOCAL results found. Here are some from NEARBY areas rab6 1 Full 8"Ittr, f' .lly [-urnished, 1)cr~?.rilcrt~ r> -~,.sh1.~;.ct - $310. / 4br - (Ashland, OR) map back to top << < prev 1 - 20 next > ^ back to top Speaker Request Form t THIS VORM IS A PUBLIC RECORD € ALL INFORMA'l AON. PROVIDED WILL BE MADE AVAILAlsi.E TO THE PUBLIC 1) Complete this form and return it to the City Recorder prior to the discussion of the item You wish to speak about. 2) Speak to the City Council from the table podium microphone. 3) State your name and address for the record. 4) Limit your comments to the amount of time given to you by the Mayor, usually 3 or 5 minutes. 5) If you present written materials, please give a copy to the City Recorder for the record. 6) You may give written comments to the City Recorder for the record if you do not wish to speak. (Comments can be added to the back of this sheet if necessary) 7) Speakers are solely responsible for the content of their public statement. Tonight's Meeting Date CI ZC'I/ Name o~~ ,yZC C~ ~ 16 1r (please print) Address (no P.O. Box) Phone ; 211( Email Regular Meeting Agenda topic/item number OR Topic for public forum (non agenda item) Land Use Public Hearing Please indicate the following: For: Against: Challenge for Conflict of Interest or Bias If you are challenging a member (a city councilor or a planning commissioner) with a conflict of interest or bias, please white your allegation complete with supporting facts on this form and deliver it to the clerk immediately. The Presiding Officer will address the written challenge with the member. Please be respectful of the proceeding and do not interrupt. You may also provide testimony about the challenge when you testify during the normal order of proceedings. Written Comments/Challenge: The Public Meeting Law requires that all city meetings are open to the public. Oregon law does not always require that the public be permitted to speak The Ashland City Council generally invites the public to speak on agenda items and during public forum on non-agenda items unless time constraints limit public testimony. No person has an absolute right to speak or participate in every phase of a proceeding. Please respect the order of proceedings for public hearings and strictly follow the directions of the presiding officer. Behavior or actions which are unreasonably loud or disruptive are disrespectful, and may constitute disorderly conduct. Offenders will be requested to leave the room. Comments and statements by speakers do not represent the opinion of the City Council, City Officers or employees or the City of Ashland. Supes back'Airbnb law' to allow short-term ^a`als, with limits http://www.sfgas -,om/btisiness/article/Supervisors-approve-Ai... ' ATE http:/Iwww.sfgate.coin/news/article/Stpervisors-approve-Airbnb-law-5807858.php ECCEIV short-term rentals, limits with By Carolyn Said Updated 8:02 am, Wednesday, October 8, 2014 - ~ mac{. ~ ~ rr b - ~yrA~ t ?1 9 't r 1 rO4~ _,~Sr ~ en ~i ~r- '=tom- - IMAGE 1 OF 36 Pro house sharing members of the public react to proposed amendments during a Board of Supervisors meeting which discussed David Chiu's proposed legislation to regulate Airbnb and other short-term rentals in San Francisco on October 7th 2014. The San Francisco Board of Supervisors voted Tuesday to legalize the growing trend of turning homes into ad-hoc hotels by passing the "Airbnb law," which places some restrictions on the controversial practice. "The status quo isn't wo>lung; we have seen an explosion in short-term rentals," Board President David Chin said in introducing the law he spent more than two years crafting. San Francisco has long barred residential rentals of less than 3o days. The new legislation now allows them, with several caveats. 1 of 5 219115 10:02 PM Supes back `Airbnb law' to allow short-term r, -11s, with limits littp://wNvw.sfgat ^om/business/article/Supcivisoi-s-approve-Ai... The law allows only permanent residents to offer short-term rentals, establishes a new city registry for hosts, mandates the collection of hotel tax, limits entire-home rentals to go days per year, requires each listing to carry $500,000 in liability insurance, and establishes guidelines for enforcement by the Planning Deparhllent. The measure, which passed 7-4, is slated to take effect in February. Chin and other supervisors said they sought a balance between preserving affordable housing - by making sure landlords can't convert permanent units to more-lucrative vacation rentals and allowing residents to earn extra income. by renting to travelers. "We can protect our city's housing tut its from being converted to hotels, while also allowing short-term rentals on a limited basis to help residents afford to stay in their homes," Chin said in a statement after the vote. Airbnb praises lava For Airbnb, a 6-year-old San Francisco startup worth more than many major hotel chains, the passage came as a huge validation, legalizing its business model in its hometown and clarifying the roles by which it must abide. It was also a victory for Airbnb that several proposals to toughen the legislation failed to pass. Supervisors grappled with ideas including limiting "hosted rentals" - in which the resident is present to go days, barring temporary rentals of in-law twits and requiring Airbnb to pay back taxes, but ultimately rejected them. In an upbeat statement, Airbnb said the law "will give regular people the right to share the home in which they live," underscoring its contention that most hosts are community members trying to make ends. meet, Scores of Airbnb hosts spoke at public meetings and rallies over the past several months, supporting the version of the law that the supervisors green-lighted. But housing advocates, landlords, neighborhood associations and labor groups also showed up in force to express concerns that vacation rentals were diverting housing units, raising prices, threatening tenant security and interfering with residential areas. Ted Gullicksen, head of the Sari Francisco Tenants Union, was disappointed that 2 of 5 2/9/15 10:02 PM Supes baek'Airbnb law' to allow short-term r( --41s, with limits http:I/Vvww.sfga )in/business/article/Supervisors-approve-Ai... more-stringent requirements didn't make the final cut. Allowing people to rent rooms to travelers year-round removes a source of affordable shared housing, he said. "Bedrooms in houses, condos and apartments, which normally would be made available to permanent roommates, will now be put on the market as tourist rentals, malting housing less findable for San Franciscans," he said. Another issue is how the city can distinguish between hosted and non-hosted rentals, malting enforcement more challenging, he said. Little enforcement of ban The city's ban on short-term rentals has been lightly enforced, even while thousands of residents turned to Airbnb, HomeAway/VRBO, Flipkey and other websites to rent their homes and rooms to travelers. Airbnb, the dominant short-tern rental site in San Francisco, has about 5,000 listings here, two-thirds of them in entire homes, according to a Chronicle analysis. HomeAway/VRBO has about 1,200 in San Francisco, all entire homes. Proposals to beef up enforcement of the law by allowing housing nonprofits to quieldy sue violators had some support but must go through additional hearings. That concept will be introduced as "trailing legislation" in the future. Supervisors Jane Kim and London Breed both introduced proposals to give nonprofit housing groups "private right of action" against those who flout the law. Allowing fast-track lawsuits for nonprofits would be "an effective and cheaper means to do enforcement," said Kiln, saying the city hadn't demonstrated that it had the resources to investigate issues. MORE ON THE 'AIRBNB LAW Vacation rental site HomeAway, which also owns the VRBO brand, decried the Advocates want legislation as tailored for Airbnb and more limits on "wildly unenforceable." Airbnb rentals added to Chiu plan HomeAway/VRBO listings are mainly T vacation homes, so many won't meet the residency requirement. Airbnb paying its hotel tax bill 3 of s S.F. could get $11 million a year Supervisors amended Chin's law in 2/9I15 10:02 PM 5upes back'Airbnb law' to allow short-term with limits littp://www.sfgatt -^otn/business/article/Supen,isors-approve-Ai... when Airbnb collects hotel tax several ways, mostly minor. They added KE S.F. supervisors building owners to those with standing consider revisions to file lawsuits, agreed to tell to short-terra rental rules complainants if no violations were found, and agreed to notify neighbors in certain residential areas of registry Chiu toughens applications. A proposal to bar vacation proposed Airbnb legislation rentals in units where tenants had been evicted under the Ellis Act will undergo ' future hearings. Despite efforts to protect S.F. tenants, housing crisis persists Supervisor David Campos, who is vying with Chin for an Assembly seat in next month's election, proposed the most sweeping changes to the legislation. He called for the law to be frozen until Airbub paid $25 million in back taxes dating to when the city treasurer ruled that vacation rentals are liable for the city's 14 percent hotel tax. "it is only right that Airbnb maize good on its overdue taxes before this legislation becomes law," he said. "We should ensure a multibillion-dollar company pays its fair share of taxes just like everyone else." That amendment failed 6-5. 's'axes to be collected Airbnb has said it will start collecting and remitting the hotel tax this month, something Chin said was spurred by his legislation. It should bring at least $11 million a year to city coffers. Chiu said the law doesn't exempt anyone from paying taxes, whether retroactive or forward, but that back taxes are the purview of the city attorney and treasurer. Voting in favor of the law were Supervisors Chin, Kim, Breed, Mark Farrell, Malia Cohen, Katy Tang and Scott Wiener. Supervisors Campos, John Avalos, Norman Yee and Eric Mar voted against it. San Francisco ordinances require two votes for passage; the second vote, which is expected to be pro forma, is slated for Oct. 21. The measure would then move to Mayor Lee, who is expected to sign it. 4 of 5 219/1510:02 PM Supes back'Airbnb law' to allow short-term v `•'als, with limits... http://www.Sfgar ^om/business/article/Supervisors-approve-Ai... t; Carolyn Said is a San Francisco Chronicle staff water. E-mail: csaid@sfclironicle.com Twitter: @csaid a 2015 Hearst Gbnimunications, Inc. 5 of 5 2/9/1510:02 PM Planning Commission Speaker Request Form 1) Complete this form and return it to the Secretary prior to the discussion of the item you wish to speak about. 2) Speak to the Planning Commission from the table podium microphone. 3) State your name and address for the record. 4) Limit your comments to the amount of tune given to you by the Chair, usually 5 minutes. 5) If you present written materials, please give a copy to tine Secretary for the record. 6) You may give written comments to the Secretary for the record if you do not wish to speak. 7) Spe keys are solely responsible for the content of their public statement. Name 1v~Jt 1 _ (p ease paint) Add ress (no P.O. Box)_ Pbone, ~~3'JtJ~ ;''Ennail Tonight's Meeting Date Regular Meeting Agenda item number OR Topic for public forum (non agenda item) Land Use Public Ae i c ~1 40 / For t Challenge for Conflict of Interest or Bias Nyou are challenging a member (planning commissioner) with a conflict of interest or bias, please write your allegation complete with supporting facts on this form and deliver it to the clerk immediately. The Chair will address the written challenge with the member. Please be respectful of the proceeding and do not interrupt. You may also provide testimony about the chap nge when ou testify during the normal order of proceedings. Written Comments/Challen e: The Public Meeting Law requires that all city meetings are open to the public. Oregon laiv does not always require that the public be permitted to speak-. The Ashland Plcn777ing CO777n7iSSiO77 generally invites the public to speak on agenda items and during public forum on non-agenda items unless tune constraints limit public leslimony. No person has an absolute right to speak or participate in eve7y phase of a proceeding. Please respect the order of proceedings for public hearings and strictly follow the directions of the presiding officer. Behavior or actions which are unreasonahly loud or disruptive are disrespectful, and nxT constitute disorderly conduct. Offenders will be requested to leave the room. Comments and statements by speakers do not represent the opinion of the City Council, City Officers or employees or the City of Ashland. Speaker Request Form THIS FORM IS A PUBLIC RECORD ALL EWORMATruN PROVIDED WILL BE MADE AVAII.,ABx.E TO THE PUBLIC 1) Complete this form and return it to the City Recorder prior to the discussion of the item you wish to sneak about. 2) Speak to the City Council from the table podium microphone. 3) State your name and address for the record. 4) Limit your comments to the amount of time given to you by the Mayor, usually 3 or 5 mina-tes. 5) If you present written materials, please give a copy to the City Recorder for the record- 6) You may give written comments to the City Recorder for the record if you do not wish to speak. (Comments can be added to the back of this sheet if necessary) 7) Speakers are solely responsible for the content of their public statement. Tonight.'s Meeting Dare Name ("Pease p int) i . . Address (no P.O. Box).:..~GR.c- Phone A 'l 3 70 Email A 11 1,)s1 t t1_.C~ Vij- I Regular Meetin Agenda topic/item number Vbk(.' c'i v~ OR Topic for public forum (non agenda item) Land Use Public Hearin Please indicate the following: For: Against- Challenge for Conflict of Interest or Bias If you are challenging a member (a city councilor or a planning commissioner) with a conflict of interest or bias, please write your allegation complete with supporting facts on this form and deliver it to the clerk immediately. The Presiding Officer will address the written challenge with the member. Please be respectful of the proceeding and do not interrupt. You may also provide testimony about the challenge when you testify during the normal order of proceedings. Written Comments/Challenge: The Public Meeting Law requires that all city meetings are open to the public. Oregon law does not always require that the public be permitted to speak. The Ashland City Council generally invites the public to speak on agenda items and during public forum on non-agenda items unless time constraints limit public testimony. No-person has an absolute right to speak or participate in every phase of a proceeding. Please respect the order ofproceedings for public hearings and strictly follow the directions of the presiding officer. Behavior or actions which are unreasonably loud or disruptive are disrespectful, and may constitute disorderly conduct. Offenders will be requested to leave the room. Comments and statements by speakers do not represent the opinion of the City Council, City Officers or employees or the City of .Ashland. Planning Commission Speaker Request Form 1) Complete this form and return it to the Secretary prior to the discussion of the item you wish to speak about. 2) Speak to the Planning Commission from the table podium microphone. 3) State your name and address for the record. 4) Limit your comments to the amount of time given to you by the Chair, usually 5 minutes. 5) if you present written materials, please give a copy to the Secretary for the record. 6) You may give written comments to the Secretary for the record if you do not wish to speak. 7) Speakers are solely responsible for the content of their public statement. G.Gi ~1 ELI Name (please print) pp Address (no P.0 Box). Phone `L U L IA ? nn"lif Ae"4 Cr.. l ~L r f ! (7 ~vt.,) Tonight's Mecting Date r c l , Regular Meeting Agenda item number OR Topic for public forum (non agenda item) V"vL lid- L ;L(d'4ej .5 Land Use Public Hearing For: Against: Challenge for Conflict of Interest or Bias If you are challenging a member (planning commissioner) with a conflict of interest or bias, please write your allegation complete with supporting facts on this form and deliver it to the clerk immediately. The Chair will address the written challenge with the member. Please be respectful of the proceeding and do not interrupt. You may also provide testimony about the challenge when you testify during the normal order of proceedings. Written Comments/Challenge: The Public Meeling.Law requires that all city meetings are open to the public. Oregon law does not always require that the public be permitted to speak. Tl7e Ashlanad Plaiiiiirng Commission gen7erally invites the public to speak on agenda items and during publie forum on none-agenda items unless time co?astrainnty lii7nit public iestirraoi7y. No person has an absolute right to speak or participate in every phase of a proceeding. Please respect the order of proceedings for public hearings and strictly follow the directions of the presiding officer. Behavior or actions which are urrreasonably loud or disruptive are disrespec f dr and wcq, constitute disorderly conduct. Offenders will be requested to leave the room. Comments and statements by speakers do not represent the opinion of the City Council, City Officers or employees or the City of Ashland. Note: Anyone wishing to speak at any Planning Commission meeting is encouraged to do so. If you wish to speak, please rise and, after you have been recognized by the Chair, give your name and complete address for the record. You will then be allowed to speak. Please note that the public testimony may be limited by the Chair and normally is not allowed after the Public Hearing is closed. ASHLAND PLANNING COMMISSION REGULAR MEETING FEBRUARY 10, 2015 AGENDA 1. CALL TO ORDER: 7:00 PM, Civic Center Council Chambers, 1175 E. Main Street II. ANNOUNCEMENTS III. AD-HOC COMMITTEE UPDATES IV. CONSENT AGENDA A. Approval of Minutes 1. January 13, 2015 Regular Meeting. V. PUBLIC FORUM VI. LEGISLATIVE PUBLIC HEARINGS A. PLANNING ACTION: #2014-02053 DESCRIPTION: Proposed amendments to the land use ordinance which would allow small scale short-term rental units (i.e., accessory traveler's accommodations) in the single-family and multi- family zones. The proposed amendments are to Chapter 18.2.2 Base Zones and Allowed Uses, Chapter 18.2.3 Special Use Standards, and Chapter 18.6.1 Definitions. VII. OTHER BUSINESS Vlll. ADJOURNMENT CITY OF ASHLAND lFWAM l►, In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Community Development office at 541-488-5305 (TTY phone is 1-800-735-2900). Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title 1). ASHLAND PLANNING DIVISION STAFF REPORT February 10, 2015 PLANNING ACTION: #2014-02053 APPLICANT: City of Ashland ORDINANCE REFERENCES: AMC 18.08 Definitions AMC 18.22 Suburban Residential (R-1-3.5) AMC 18.24 Low Density Multiple Residential (R-2) AMC 18.28 High Density Multiple Residential (R-3) REQUEST: Amendments to Ashland's Municipal Code establishing an "Accessory Traveler's Accommodation" as a new type of transient accommodation, allowed within specific residential zoning districts and subject to explicit standards. 1. Relevant Facts A. Background Over the past several years, city Code Compliance has seen a dramatic increase in the number of unlicensed, short-term accommodations being operated without zoning approval. Additionally, these short term transient accommodations are knowingly or unknowingly avoiding paying local transient occupancy taxes, licensing fees and utility rates normally associated with the guest accommodation industry. In November 2013, standards in Chapter 18, Land Use, of the Ashland Municipal Code were amended that relate to the operation of a traveler's accommodation in a multi-family zoning district (R2 and R-3). The changes included stipulating that a business license, transient occupancy tax registration and land use approval be obtained prior to operation of a traveler's accommodation. Additionally, a safety inspection by the Fire Department is required before commencing the use and on a semi-annual basis thereafter. Further, the amendments not only made it a violation to offer or present a traveler's accommodation for lease before obtaining the prerequisite city permits and licenses, but also to offer by any means any use of land, a building, or premise contrary to the provisions of Chapter 18, Land Use. Single family zoning districts Following the adoption of code amendments for multi-family zoned lands, the City Council discussed code changes that would create a minor allowance for short term accommodations on owner-occupied properties in single-family zoning districts, and requested that the Planning Commission hold public Planning Action PA #2014-02053 Ashland Planning Division - Staff Report Applicant: City of Ashland Page 1 of 6 meetings and outline suggestions in a report for Council consideration. The Commission held a series of meetings starting in early 2014 and rather than focusing on the question of whether it is appropriate to allow short term accommodations in single family zoning districts suggested a variety of code standards addressing potential impacts. Highlights of the Commission's initial July 2014 report include limiting the allowance to owner-occupied properties, permitting not more than one accommodation per property, requiring that the accommodation be attached or within the footprint of the primary residence, prohibiting kitchen facilities within the accommodation and processing a request for a short term accommodation through the conditional use permit procedure. B. Ordinance Amendments The proposed Land Use Code amendments address the approval process and set forth minimum requirements for operating an accessory traveler's accommodation within particular residential zoning districts. Establishment of an accessory traveler's accommodation would be subject to city procedures for a conditional use permit. An owner-applicant would prepare the land use application and submit the paperwork to the Community Development Department with the prescribed fee. Public notice would be sent to property owners within 200-feet of the site, making people aware of the land use request. Unless the proposal included significant deviations from the approval criteria, the application could be approved administratively with notice of the decision sent to surrounding property owners. An administrative decision is appealable to the Planning Commission. Following is a summary of key special use standards that will be applied to accessory traveler's accommodations: General Requirements - Management The individual operating and managing the accessory traveler's accommodation must be the owner of the property and the residence on the property must serve as the owner's "primary residence". The owner/operator is required to reside on the premises during the operation of an accessory traveler's accommodation. Location The accessory accommodation must be on a property that is located within 200 feet of a major city street. This would include a boulevard, avenue, or neighborhood collector. Under the proposed recommendations, this type of short term rental could be allowed in R-1, R-1-3.5, R-2 and R-3 Residential Zones. Planning Action PA #2014-02053 Ashland Planning Division - Staff Report Applicant: City of Ashland Page 2 of 6 Number and Type of Accommodations One traveler accommodation (i.e. reservation) is permitted per property. The single accommodation would be restricted to two or fewer rooms. Staff is suggesting considering amending the city's fee schedule to recognize and reflect the limited extent of accessory traveler's accommodation proposals, specifically when compared to traveler's accommodations with multiple units and business owner provisions. Kitchen Facilities - Not Permitted Separate kitchen cooking facilities are not permitted in conjunction with an accessory traveler's accommodation. This provision is intended to discourage the conversion of existing, long term residential units into short term accommodations. Site Design Considerations Additional off-street parking is not required beyond that requisite for a single family residence. Accordingly, the property must have two off-street parking spaces. Guests are limited to one automobile. Additionally and similar to standards for home occupations, signs would not be permitted. Procedure for Approval and Annual Review Thereafter The request to operate an individual accessory traveler's accommodation would require approval of a conditional use permit. The conditional use permit process would include public notice to the surrounding neighborhood, informing neighbors of the request and providing an opportunity to provide comments to the Planning Division prior to final approval. The Community Development Director's decision could be appealed to the Planning Commission. A process to periodically review the operations of an accessory traveler's accommodation could be established after the initial land use approval. If the process for annual or bi-annual review requires public notice, it would be customary to charge an application fee. This would result in an additional cost to the property owner. With or without an annual or biannual review, the property owner is bound by the conditions that accompany the original land use approval. Failure to maintain compliance with these conditions of approval is subject to code compliance actions or, in severe cases, a public hearing to address the possible revocation of the conditional use permit. Licensing, Inspections, Taxes & Advertising Both the existing Traveler's Accommodation section and the newly proposed Accessory Traveler's Accommodation code section include language that describes the owner's responsibility for obtaining an Ashland business license, paying applicable transient occupancy tax, and scheduling a safety Planning Action PA #2014-02053 Ashland Planning Division - Staff Report Applicant: City of Ashland Page 3 of 6 inspection, if applicable. It is a violation of the land use ordinance to advertise the availability of property for use as an accessory traveler's accommodation without land use approval, a current business license and transient occupancy tax registration. Changes following the January 13th Planning Commission Meeting Staff revised the special use standards in 18.2.3.220.C on page 12 of the ordinance to address concerns raised by the Planning Commission at the January 13 meeting. The changes are described below. C.1 - Language was added requiring the operator to be present during the operation of the accessory traveler's accommodation. C.2 - The previous language regarding "not including bathrooms" in the accessory traveler's accommodation was deleted. This same language was also deleted in the definition of an accessory traveler's accommodation on page 1. C.3 - The limitation on the number of residents and guests to the definition of a family (i.e., five people) was deleted and replaced with a limitation on the number of guests of three people. Staff believes some kind of cap on the number of guests needs to be considered so that the impact of the accessory traveler's accommodation is comparable to other households. The Planning Commission and City Council's previous discussions emphasized the importance of crafting an ordinance that limits impacts of short-term rentals on existing neighborhoods. C.4 - Language was added limiting the total number of guest vehicles to one. Page 13, section 3 - A cross reference to the prohibition of signs for accessory traveler's accommodations was added to the residential sign regulations. Page 14, Section 4 - The definition of residential or residential use was added so that a cross reference to the definition of accessory traveler's accommodation could be included. II. Procedural 18.108.170 Legislative amendments A. It may be necessary from time to time to amend the text of the Land Use Ordinance or make other legislative amendments in order to conform with the comprehensive plan or to meet other changes in circumstances and conditions. A legislative amendment is a legislative act solely within the authority of the Council. Planning Action PA #2014-02053 Ashland Planning Division - Staff Report Applicant: City of Ashland Page 4 of 6 B. A legislative amendment may be initiated by the Council, by the Commission, or by application of a property owner or resident of the City. The Commission shall conduct a public hearing on the proposed amendment at its earliest practicable meeting after it is submitted, and within thirty days after the hearing, recommend to the Council, approval, disapproval, or modification of the proposed amendment. C. An application for amendment by a property owner or resident shall be filed with the Planning Department thirty days prior to the Commission meeting at which the proposal is to be first considered. The application shall be accompanied by the required fee. D. Before taking final action on a proposed amendment, the Commission shall hold a public hearing. After receipt of the report on the amendment from the Commission, the Council shall hold a public hearing on the amendment. Notice of time and place of the public hearings and a brief description of the proposed amendment shall be given notice in a newspaper of general circulation in the City not less than ten days prior to the date of hearing. E. No application of a property owner or resident for a legislative amendment shall be considered by the Commission within the twelve month period immediately following a previous denial of such request, except the Commission may permit a new application if, in the opinion of the Commission, new evidence or a change of circumstances warrant it. III. Conclusions and Summary The city initially embarked on a community discussion about short term vacation accommodations in August 2012. At that time, staff noted that changes to land use requirements related to short-term vacation rentals should be undertaken with caution. This was because of potential impacts to longstanding community goals for maintaining strong neighborhoods, as well as a diverse, permanent housing stock designed to serve a wide range of households representing a variety of household incomes. Some of the potential impacts commonly associated with short term accommodations include: Positive Impacts • Increased Transient Occupancy Tax collection and business license fees • Increased choice of accommodation types • Income source for individual property owners Negative Impacts • Potential reduction long term rental availability • Neighborhood Impacts - noise, traffic, physical changes to site, etc. • Increased use of infrastructure and services How a city deals with short term rentals and the countless number of shapes and styles the accommodations take on is strictly a local choice, unique to that community and influenced by its history and values. The proposed ordinance would allow a unique form of short term accommodation in particular zoning Planning Action PA #2014-02053 Ashland Planning Division - Staff Report Applicant: City of Ashland Page 5 of 6 districts, single family (R-1), suburban (R-1-3.5) and multi-family (R-2 and R-3) through a conditional use permit procedure. The accessory traveler's accommodation differs from the existing, traditional type of traveler's accommodation through placing limitations on total number accommodations, limiting interior amenities and requiring property owner oversight. The amendments permit the property owner/operator to offer two or fewer rooms under a single reservation for short term occupancy with a fee. The ordinance prohibits standalone kitchen cooking facilities in the accommodation and requires the property owner to live on the property and be responsible for its operations. In summary, limiting the number of accommodations to one is intended to minimize impacts upon the existing neighborhood (noise, traffic, etc.). Similarly, substitution of a longer term, accessory residential unit (ARU) rental for an accessory traveler's accommodation (ATA) is potentially discouraged by disallowing the provision of independent kitchen facilities. In order to maintain and foster continuity within existing neighborhood, the property owner is required to reside on the premises during operations and be available to address concerns should any arise. Attachments: • Draft Ordinance • R-1 Properties within 200 feet of Major Streets • Planning Commission Report to Council - July 1, 2014 • Council Meeting Minutes - July 1, 2014 • Letters and Comments from Public Planning Action PA #2014-02053 Ashland Planning Division - Staff Report Applicant: City of Ashland Page 6 of 6 ORDINANCE NO. AN ORDINANCE AMENDING CHAPTERS 18.2.2, 18.2.3, 18.4.7, AND 18.6.1 OF THE ASHLAND LAND USE ORDINANCE RELATING TO DEFINTIONS AND ACCESSORY TRAVELER'S ACCOMMODATIONS IN VARIOUS RESIDENTIAL ZONING DISTRICTS. Annotated to show deletions and additions to the code sections being modified. Deletions are bold lined through and additions are bold underlined. WHEREAS, Article 2. Section 1 of the Ashland City Charter provides: Powers of the City. The City shall have all powers which the constitutions, statutes, and common law of the United States and of this State expressly or impliedly grant or allow municipalities, as fully as though this Charter specifically enumerated each of those powers, as well as all powers not inconsistent with the foregoing; and, in addition thereto, shall possess all powers hereinafter specifically granted. All the authority thereof shall have perpetual succession. WHEREAS, the City Council has determined that preservation of the character of residential neighborhoods is a legitimate and beneficial goal; and WHEREAS, the City Council has found an increasing number of residential dwellings are being rented to transients on a short-term basis for less than thirty (30) days; and WHEREAS the City Council has determined the City has a substantial interest in ensuring that all transient occupancy tax required to be collected and remitted is in fact collected and remitted on a fair and equitable basis; and WHEREAS, the City Council has determined it is necessary to establish rules and regulations to permit transient lodging within the City that allows a variety of choices, while ensuring the safety and convenience of transients, and to preserve the peace, safety and general welfare of the long-term resident of neighboring properties; and WHEREAS, the Planning Commission of the City of Ashland conducted a duly advertised public hearing on the amendments to the Ashland Municipal Code and Land Use Ordinances on January 30, 2015; and WHEREAS, the City Council of the City of Ashland, following the close of the public hearing and record, deliberated and conducted first and second readings approving adoption of the Ordinance in accordance with Article 10 of the Ashland City Charter; and WHEREAS, the City Council of the City of Ashland has determined that in order to protect and benefit the health, safety and welfare of existing and future residents of the City, it is necessary Ordinance No. Page 1 of 15 to amend the Ashland Municipal Code and Land Use Ordinance in the manner proposed, that an adequate factual base exists for the amendments, the amendments are consistent with the comprehensive plan and that such amendments are fully supported by the record of this proceeding. THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS: SECTION 1. Chapter 1 8.2.2 [Base Zones and Allowed Uses] of the Ashland Land Use Ordinance is hereby amended as follows: 18.2.2.030 Allowed Uses A. Uses Allowed in Base Zones. Allowed uses include those that are permitted, permitted subject to special use standards, and allowed subject to approval of a conditional use permit. Where Table 18.2.2.030 does not list a specific use and chapter 18.6 does not define the use or include it as an example of an allowed use, the City may find that use is allowed, or is not allowed, following the procedures of section 18.1.5.040. Uses not listed in Table 18.2.2.030 and not found to be similar to an allowed use are prohibited. For uses allowed in special districts CM, HC, NM, and SOU, and for regulations applying to the City's overlays zones, refer to part 18.3. B. Permitted Uses and Uses Permitted Subject to Special Use Standards. Uses listed as "Permitted (P)" are allowed. Uses listed as "Permitted Subject to Special Use Standards (S)" are allowed, provided they conform to chapter 18.2.3 Special Use Standards. All uses are subject to the development standards of zone in which they are located, any applicable overlay zone(s), and the review procedures of part 18.5. See section 18.5.1.020. C. Conditional Uses. Uses listed as "Conditional Use Permit Required (CU)" are allowed subject to the requirements of chapter 18.5.4. D. Prohibited Uses. Uses not listed in Table 18.2.2.030 and not found to be similar to an allowed use following the procedures of section 18.1.5.040 are prohibited. Prohibited uses are subject to the violations, complaints, and penalties sections in 18-1.6.080, 18-1.6.090, and 18-1.6.100. E. Uses Regulated by Overlay Zones. Notwithstanding the provisions of chapter 18.2.2, additional land use standards or use restrictions apply within overlay zones. An overlay zone may also provide for exceptions to some standards of the underlying zone. For regulations applying to the City's overlays zones, please refer to part 18.3. F. Accessory Uses. Uses identified as "Permitted (P)" are permitted as primary uses and as accessory uses. For information on other uses that are customarily allowed as accessory, please refer to the description of the land use categories in part 18.6 Definitions. G. Mixed-Use. Uses allowed in a zone individually are also allowed in combination with one another, in the same structure or on the same site, provided all applicable development standards and building code requirements are met. H. Temporary Uses. Temporary uses require a Conditional Use Permit under chapter 18.5.4; except as follows: Ordinance No. Page 2 of 15 1. Short-Term Events. The Staff Advisor may approve through Ministerial review short-term temporary uses occurring once in a calendar year and lasting not more than 72 hours including set up and take down. Activities such as races, parades, and festivals that occur on public property (e.g., street right-of-way, parks, sidewalks, or other public grounds) require a Special Event Permit pursuant to AMC 12.03. 2. Garage Sales. Garage sales shall have a duration of not more than two days and shall not occur more than twice within any 365-day period. Such activity shall not be accompanied by any off-premises advertisement. For the purpose of this ordinance, garage sales meeting the requirements of this subsection shall not be considered a commercial activity. 3. Temporary Buildings. Temporary occupancy of a manufactured housing unit or similar structure may be permitted for a period not to exceed 90 calendar days upon the granting of a permit by the Building Official. Such occupancy may only be allowed in conjunction with construction on the site. 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Chapter 18.2.3 [Special Use Standards] of the Ashland Land Use Ordinance is hereby amended to read as follows: 18.2.3.220 Traveler's Accommodations in R 2 and R 3 Zones Where traveler's accommodations and accessory traveler's accommodations are allowed, they require a Conditional Permit under chapter 18.5.4, are subject to Site Design Review under chapter 18.5.2, and shall meet the following requirements. See definitions of traveler's accommodations (i.e., more than one quest unit) and accessory traveler's accommodations (i.e., one quest unit) in part 18-6. A. Traveler's Accommodations and Accessory Traveler's Accommodations Traveler's accommodations and accessory traveler's accommodations shall meet all of the following requirements. 1. The property is located within 200 feet of a boulevard avenue or neighborhood collector as identified on the Street Dedication Map in the Comprehensive Plan Distances to the property from a boulevard avenue or neighborhood collector shall be measured via a public street or public alley to a lot line. 2. Accommodations must met all applicable building fire and related safety codes at all times and must be inspected by the Fire Department before occupancv following approval of a Conditional Use Permit and periodically thereafter pursuant to AMC 15.28. 3. The business-owner of a traveler's accommodation or the property owner of an accessory traveler's accommodation must maintain a City business license and pay all transient occupancy tax in accordance with AMC 4.24 and AMC 6.04 as required. 4. Advertising for either accommodation must include the City planning action number assigned to the land use approval. 5. Offering the availability of residential property for use as an accommodation without a valid Conditional use Permit approval, current business license and Transient Occupancy Tax registration is prohibited and shall be subiect to enforcement procedures. B. Traveler's Accommodations. In addition to the standards described above in section 18.23.220.A, traveler's accommodations shall meet all of the following requirements 1A.During operation of a traveler's accommodation, the property on which the traveler's accommodation is sited must be the primary residence of the business-owner. "Business-owner" shall be defined as a person or persons who own the property and accommodation outright; or who have entered into a lease agreement with the property owner(s) allowing for the operation of the accommodation. Such lease agreement must specifically state that the property owner is not involved in the day-to-day operation or financial management of the accommodation, and that the business-owner has actual ownership of the business and is wholly responsible for all operations associated with the accommodation, and has actual ownership of the business. B. The property is IeGated within 200 feet of a boulevaFd, avenue, or ne*ghbGFhOGd Ordinance No. Page 10 of 15 r.olleGtar- as mdentufaed on the Street Dedication Map in the Comprehensive Plan. shall be measured via a public street or publiG al 2C. The primary residence on the site must be at least 20 years old. The primary residence may be altered and adapted for traveler's accommodation use, including expansion of floor area. Additional structures may be allowed to accommodate additional units, but must be in conformance with all setback and lot coverage standards of the underlying zone. 3S.The number of traveler's accommodation units allowed shall be determined by the following criteria. al-. The total number of units, including the business-owner's unit, shall be determined by dividing the total square footage of the lot by 1,800 square feet. Contiguous lots under the same ownership may be combined to increase lot area and the number of units, but not in excess of the maximum established by this ordinance. The maximum number of accommodation units shall not exceed nine per approved traveler's accommodation with primary lot frontage on boulevard streets. For traveler's accommodation without primary lot frontage on a designated boulevard, but within 200 feet of a boulevard, avenue, or neighborhood collector street, the maximum number of units shall be seven. Street designations shall be as determined by the Street Dedication Map in the Comprehensive Plan. Distances to the property from a boulevard, avenue, or neighborhood collector shall be measured via a public street or public alley to a lot line. b-2. Excluding the business-owner's unit and the area of the structure it will occupy, there must be at least 400 square feet of gross interior floor space remaining per unit. 4€. Each accommodation must have one off-street parking space and the business-owner's unit must have two parking spaces. All parking spaces shall be in conformance with chapter 18.4.3. 5€. Only one ground or wall sign, constructed of a non-plastic material, non-interior illuminated, and a maximum of six square feet total surface area is allowed. Any exterior illumination of signage shall be installed such that it does not directly illuminate any residential structures adjacent or nearby the traveler's accommodation in accordance with subsection 18.4.4.050.C.1. G. TraveleF's acieemmedations must met all appliGable building, fire, and Fellated sa" oodes at all times and must be inspeeted by the Fore DepaAment befGFe theFeafter- pursuant to AMC 15.28. 6#.An annual inspection by the Jackson County Health Department shall be conducted as required by the laws of Jackson County or the State of Oregon. a0men numbeF assigned to the 'and use approval-. Ordinance No. Page 11 of 15 K. Offer-ing the availability of residential property for use as a traveleF'S ar.Gemmodatmen without a valid Conditional use Permit approval, GUFFent business subject to e nfe..,°.......nt p.,^,....a`.....res. 7L.Transfer of business-ownership of a traveler's accommodation shall be subject to all requirements of this section and conform with the criteria of this section. Any further modifications beyond the existing approval shall be in conformance with all requirements of this section. C. Accessory Traveler's Accommodations. In addition to the standards in section 18.2.3.220.A accessory traveler's accommodations shall meet all of the followin requirements. 1. The operator of the accessory traveler's accommodation must be the property owner and the property must be the operator's primary residence The operator must be present during operation of the accessory traveler's accommodation 2. The property is limited to having one accessory traveler's accommodation unit covered under a single reservation and consisting of two or fewer bedrooms Kitchen cooking facilities are not permitted with an accessory traveler's accommodation, with the exception of kitchen cooking facilities for the primary residence. 3. The total number of quests occupying an accessory traveler's accommodation must not exceed three people. 4. The property must have two off-street parking spaces. The total number of quest vehicles associated with the accessory traveler's accommodation must not exceed one. 5. Signs are not permitted in conjunction with the operation of an accessory traveler's accommodation. 6. A home occupation is prohibited with an accessory traveler's accommodation See definition of home occupation in part 18-6. 7. The accessory traveler's accommodation requires renewal of the Conditional Use Permit under chapter 18.5.4 within 24 months of the original approval Ordinance No. Page 12 of 15 SECTION 3. Chapter 18.4.7 [Signs] of the Ashland Land Use Ordinance is hereby amended to read as follows: 18.4.7.060 Residential and North Mountain Sign Regulations Signs in the residential zones and North Mountain Neighborhood District (NM) shall conform to the following regulations. A. Special Provisions 1. No sign or portion thereof shall extend beyond any property line of the premises on which such sign is located. 2. Internally illuminated signs shall not be permitted. 3. Nothing contained herein shall be construed as permitting any type of sign in conjunction with a commercial use allowed as a home occupation, as no signs are allowed in conjunction with a home occupation. Signs in residential areas are only permitted in conjunction with a Conditional Use Permit. B. Type of Signs Permitted 1. Neighborhood Identification Signs. One sign shall be permitted at each entry point to residential developments not exceeding an area of six square feet per sign with lettering not over nine inches in height, located not over three feet above grade. 2. Conditional Uses. Uses authorized in accordance with the chapter 18.5.4 Conditional Use Permits may be permitted one ground sign not exceeding an overall height of five feet and an area of 15 square feet, set back at least ten feet from property lines; or one wall sign in lieu of a ground sign. Such signs shall be approved in conjunction with the issuance of such Conditional Use Permit. Said signs shall not use plastic as part of the exterior visual effect and shall not be internally illuminated. 3. Retail and Traveler's Accommodation Uses. Retail commercial uses allowed as a conditional use in the Railroad District and traveler's accommodations in residential zones shall be allowed one wall sign or one ground sign that meets the following standards, except as otherwise prohibited for accessory traveler's accommodations. a. The total size of the sign is limited to six square feet. b. The maximum height of any ground sign is to be three feet above grade. c. The sign must be constructed of wood and cannot be internally illuminated. 4. North Mountain Neighborhood District (NM) Signs Signs for approved non-residential uses within the NM-R-1-5, NM-C and NM Civic zones shall be permitted one ground sign not exceeding an overall height of five feet and an area of 15 square feet, set back at least ten feet from property lines; or one wall or awning sign in lieu of a ground sign. Said signs shall not use plastic as part of the exterior visual effect and shall not be internally illuminated. Ordinance No. Page 13 of 15 SECTION 4. Chapter 18.6.1 [Definitions] of the Ashland Land Use Ordinance is hereby amended to read as follows: Accessory Traveler's Accommodation. Transient lodging in a residential zone where the property owner resides in a dwelling on its own lot and rents no more than two bedrooms under a single reservation to overnight quests for a period of less than 30 consecutive days, as is rental of a dwelling building or any portion hereof on two or more occasions within a 30-day period. See also definition of traveler's accommodation. Hotel/Motel. A building or portion thereof designed and used for 0(;rupanGy of transient lodging individuals in a non-residential zone for a period of less than 30 days, lodged with or without meals and which may include additional facilities and services, such as restaurants, meeting rooms, entertainment, personal services, and recreational facilities. (See ORS 446.310) Residential or Residential Use. Long-term occupancy of a dwelling unit, which may be owner-occupied or rented. Occupancy of a dwelling unit for shorter periods (i.e., less than 30 days) of time is considered an overnight accommodation for transient individuals. See also, definitions of Accessory Traveler's Accommodation, Hotel/Motel., and Traveler's Accommodation. Traveler's Accommodations. Transient lodging in a residential zone having a room, rooms or dwellings rented or kept for rent to travelers or transients for a charge or fee paid or to be paid for rental or use of such facilities for a period of less than 30 consecutive days, as is rental of a dwelling, building, or any portion hereof on two or more occasions within a 30-day period. See also, definition of accessory traveler's accommodation. SECTION 5. Savings. Notwithstanding this amendment/repeal, the City ordinances in existence at the time any criminal or civil enforcement actions were commenced, shall remain valid and in full force and effect for purposes of all cases filed or commenced during the times said ordinances(s) or portions thereof were operative. This section simply clarifies the existing situation that nothing in this Ordinance affects the validity of prosecutions commenced and continued under the laws in effect at the time the matters were originally filed. SECTION 6. Severability. The sections, subsections, paragraphs and clauses of this ordinance are severable. The invalidity of one section, subsection, paragraph, or clause shall not affect the validity of the remaining sections, subsections, paragraphs and clauses. SECTION 7. Codification. Provisions of this Ordinance shall be incorporated in the City Code and the word "ordinance" may be changed to "code", "article", "section", "chapter" or another word, and the sections of this Ordinance may be renumbered, or re-lettered, provided however that any Whereas clauses and boilerplate provisions (i.e. Sections 6-7) need not be codified and the City Recorder is authorized to correct any cross-references and any typographical errors. The foregoing ordinance was first read by title only in accordance with Article X, Section 2(C) of the City Charter on the day of , 2015, Ordinance No. Page 14 of 15 and duly PASSED and ADOPTED this day of , 2015. Barbara M. Christensen, City Recorder SIGNED and APPROVED this day of , 2015. John Stromberg, Mayor Reviewed as to form: David H. Lohman, City Attorney Ordinance No. Page 15 of 15 L- O 06 N yew 0 Co V y~ PP., Y 0 U v) O O C) O N C: 0 Z r 5t N N w= lol a N3380 Nl of Arm IN N W O 1S AVIo , x -2 r r _r CU Ca is mHvd V lvyy N Vd N i ! I ■ 0 co F AVa3NIVM A m a 0 0 1S NVNIHJIM 1S VNVIM O O AV NIV1Nf10 r p T AV iZ z < N ti N Co m m F< o w m w w CO C Q 2 4NVHS bo ~ 3 5 / J ■ y~ R, 1s aoo r 0 y c~ C O °o N Oa 3NIN ONVIHSVN '0 3 U ❑ m e - o w j o E N J Z J Q In ❑ w D ° C d m Q 2= U Q ~LLII Iorb t E I To Planning Commission and Bill Molnar: Ashland has a .significant deficit of low-income rental stock. The US census.data and Ashland's latest Housing Analysis Report (see link and attachment below) clearly show there is a lack of affordable housing in Ashland. Allowing Accessory Traveler's Accommodations in R-1 zones will contribute to the ever- increasing problem of lower income (less than $201(/year) non-student householders to find suitable rentals in which to live. The proposed ordinance can NOT protect existing rental stock, in fact it will encourage more conversion from long-term to short-term. The abundance of dwellings that convert every year to short-term during the OSF season is already problematic for people who should be able to live and work in Ashland. Point in fact, OSF housing director says they can't find long-term housing in Ashland for their actors/designers, they must go to Talent and beyond. Ashland residents who are employed have difficulty finding places to live retired population is growing, and they too have difficulty on fixed incomes. One reason companies will not relocated to Ashland or start up in Ashland is due to expensive or unavailable housing for their employees. Let's not throw fuel on the housing issue fire, instead, the City should respect the stated purpose of residential zones. R-1 zones are not places to promote lodging businesses, even if the property is to be "host-occupled". Neighborhoods should be just that, neighborhoods. The City should not create an ordinance that undermines the low-income housing stock. Below are to references that support my position, one is Ashland's Housing Needs Analysis and the other is a housing model using US census data. Sincerely yours, Ellen Campbell Ashland's 2012 Housing Needs Analysis htt : /www.ashland.or.us/SIB/files/Adopted 2012- 2040 HNA.pdf Ribbon is a consultant company in Sacramento who researches and analyzes housing issues. They use their computer model that takes readily available census data to analyze a housing situation in an area. The attached pdf file is their results of Ashland housing. em php ribbon. ~d ogra I MEMORANDUM TO: MARY ELLEN SHAY FROM: Julia LaVigne COMPANY: ME SHAY & CO DATE: October 1, 2013 RE: ASHLAND Mary Ellen, I have compiled some demographic data from the Census Bureau and our own HISTA database to help us understand existing conditions affecting the short term rental issue in Ashland. All data are based on the city as a whole, using 2010 Census Place boundaries: - Cln r ~ - 5833 Devon Drive, Rocklin, CA 95765 916-880-1644 I opted to use Census 2010 data rather than more recent American Community Survey (ACS) data from the Census Bureau for two reasons: • Only three-year averages (2009 to 2011) are currently available from the ACS. Ashland has too small a population for single-year estimates. • Census 2010 counts are more accurate than ACS sampling data based on surveys and the household and population elements we need were collected for the 2010 Census. • Our 2013 HISTA data is controlled to Census 2010. Ashland City had a population of 20,078 in 2010. Out of this total, 19,117 lived in households and the remaining 961 lived in group quarters. The large majority of those living in group quarters (783 or 81 lived in college dorms or student housing. The remainder lives in a mix of nursing homes and non-institutional group quarters. There were 9,409 households in 2010. These households contained a total of 2,290 Non-Relative individuals. The large majority (1,809 or 79%) lived in Non-Family Households - those where none of the members are related. Of these, 54% were roommates or housemates, 33% were unmarried partners and the remaining 14% were evenly split boarders or other non-relatives. Of the 483 non-relatives living in Family Households, where two or more of the members are related, 44% were unmarried partners, 27% were roommates or housemates, 21% were other non-relatives and 8% were boarders. Total: - - - - - 2,2901 Infamily households; 483. Roomer or boarder 40 Housemate or roommate 128 Unmarried partner 212 Other nonrelatives 103 In ionfamly households.; Roomer or boarder 123 Housemate or roommate 968 Unmarried partner 596 Other nonrelatives 120 Census 2010 data plus HISTA 2013 estimates show that approximately 48% of all households in Ashland are renters. It is not uncommon for cities of various sizes to have higher renter rates than the local state or nation due to their denser layouts. Cities often attract younger, more mobile households looking for greater social, cultural and job opportunities than found in rural and suburban areas. These 2 households do not want to be tied to homeownership, regardless of income, so a reasonable supply of rental apartments and houses is essential for these households. Lower-income households and those working in seasonal jobs need even more flexible housing to meet their needs. HISTA Data for 2013 shows the number of households broken down by tenure, age, income, and household size. Renter Households Age 15 to 54 Years Year 2013 EsUinates :101; qjjig jim e v eea a ■ e v - to ■ e e v ea a r$10,000-20,000 ,000 413 82 67 1 1 564 347 234 107 66 4 758 ,,000 276 90 55 37 668 $30,000-40,000 131 151 101 36 43 462 $40,000-50,000 109 85 78 33 1 306 $50,000-60,000 14 79 73 1 0 167 $60,000-75,000 8 48 10 14 43 123 $75,000-100,000 23 34 32 3 4 96 $100,000-125,000 5 I 3 0 1 10 $125,000-150,000 2 2 2 1 0 7 $150,000-200,000 2 1 21 22 6 52 $200,000+ J2 $ .t 25 Q 46 Total 1,276 1,001 585 257 140 3,259 The above data for those aged below 55 years shows a significant number of very low-income renter households with just one person - circled in red. This group has high potential to need affordable housing. A much smaller number of households over age 55 years are renters and three- quarters are one-person households. The single largest group is 1-person households earning $10,000 to $20,000 per year, which would likely include retirees relying mostly on social security benefits. These numbers are shown on the following table: 3 Renter Households Aged 55+ Years Year 2013 Estimates a a 0 ! e e ,ae e e e , $0-10,000 90 8 1 3 3 105 $10,000-20,000 295 43 16 5 2 361 $20,000-30,000 152 56 4 7 0 219 $30,000-40,000 132 38 2 2 2 176 $40,000-50,000 53 97 2 4 8 164 $50,000-60,000 34 25 4 12 0 75 $60,000-75,000 37 8 5 3 1 54 $75,000-100,000 27 18 13 2 2 62 $100,000-125,000 23 7 5 2 4 41 $125,000-150,000 27 27 3 0 1 58 $150,000-200,000 15 2 3 2 4 26 $200,000+ ,15 4 2 a 0 24 Total 900 333 60 45 27 1,365 Households over age 55 own their homes at much greater rates than their younger counterparts with 72% of all homeowners estimated to be above this age in 2013. Owner Households Age 25 to 54 Years Year 2013 Estimates t~ o 0 0 e Q a o a ! o $0-10,000 44 29 3 7 4 87 $10,000-20,000 43 0 25 32 7 107 $20,000-30,000 66 89 12 3 4 174 $30,000-40,000 26 10 23 19 3 81 $40,000-50,000 40 12 0 48 3 103 $50,000-60,000 4 59 19 23 3 108 $60,000-75,000 23 38 50 13 1 125 $75,000-100,000 24 61 17 58 26 186 $100,000-125,000 1 72 69 38 0 180 $125,000-150,000 0 13 35 17 2 67 $150,000-200,000 8 13 14 25 13 73 $200,000+ fl 41 a2- 255 3 111 Total 279 437 299 318 69 1,402 4 E. Owner Households Aged 55+ Years Year 2013 Estimates 51 a • - e 0 e a e 0 1° • $0-10,000 132 118 11 1 6 268 $10,000-20,000 208 147 4 3 5 367 $20,000-30,000 207 167 17 3 12 406 $30,000-40,000 174 250 51 20 5 Soo $40,000-50,000 140 146 17 t 9 313 $50,000-60,000. 108 188 18 2 8 324 $60,000-75,000 133 188 48 1 6 376 $75,000-100,000. 51 269 33 19 6 378 $100,000-125,000 61 125 93 3 9 291 $125,000-150,000 6 54 11 23 6 100 $150,000-200,000 16 87 25 1 3 132 $200,000+ 32 64 5 18 2 126 'total 1,268 1,803 333 95 82 3,581 I am unaware of any data that would indicate whether older homeowners have lesser or greater potential to rent their homes (or space within them) to either local residents or visitors. This issue should perhaps be researched as they are the largest group of homeowners locally. 5 E From: "B. V. Leier Heyden" <yrnda ,mind.net> Subject: Airbnb Law passed October 7, 2014 in San Francisco m € f. ;r:.r Date: February 9, 2015 11:08:00 PM PST To: sassetta(i4mind.net Brenda Leier Heyden 801 Forest Street Ashland, Or 97520 541 552 0108 Dear Melanie, I would very much appreciate it if you would take the time to read the article below published in the San Francisco Chronicle October 8, 2014.. In summary, the San Francisco Board of Supervisors voted to pass the Airbnb Law October 7, 2014, legalizing short term rentals with limits. They..."sought a balance between preserving affordable housing - by making sure landlords can't convert permanent units to more-lucrative vacation rentals - and allowing residents to earn extra income by renting to travelers." We can protect our city's housing units from being converted to hotels, while also allowing short-term rentals on a limited basis to help residents afford to stay in their homes," Board President David Chin said. I pray Ashland can also find this balance in the near future. Sincerely, Brenda Leier Heyden ht(p://www.sfgate.com/business/article/Supervisors-apt)rove-Airbnb-lair-5807858 php Supes back'Airbnb law' to allow short-term rentals, with limits By Carolyn Said Updated 8:02 am, Wednesday, October 8, 2014 Pro house sharing members of the public react to proposed amendments during a Board of Supervisors meeting which discussed David Chiu's proposed legislation to regulate Airbnb and other short-tern rentals in San Francisco on October 7th 2014. Pro house sharing members of the public react to proposed amendments during a Board of Supervisors meeting which discussed David Chiu's proposed legislation to regulate Airbnb and other short-term rentals in San Francisco on October 7th 2014. The San Francisco Board of Supervisors voted Tuesday to legalize the growing trend of turning homes into ad-hoc hotels by passing the "Airbnb law," which places some restrictions on the controversial practice. "The status quo isn't working; we have seen an explosion in short-term rentals," Board President David Chin said in introducing the law he spent more than two years crafting. San Francisco has long barred residential rentals of less than 30 days. The new legislation now allows them, with several caveats. The law allows only permanent residents to offer short-term rentals, establishes a new city registry for hosts, mandates, the collection of hotel tax, limits entire-home rentals to 90 days per year, requires each listing to carry $500,000 in liability insurance, and establishes guidelines for enforcement by the Planning Department. The measure, which passed 7-4, is slated to take effect in February. Chiu and other supervisors said they sought a balance between preserving affordable housing - by making sure landlords can't convert permanent units to more-lucrative vacation rentals - and allowing residents to earn extra income by renting to travelers. "We can protect our city's housing units from being converted to hotels, while also allowing short-term rentals on a limited basis to help residents afford to stay in their homes," Chiu said in a statement after the vote. Airbnb praises law For Airbnb, a 6-year-old San Francisco startup worth more than many major hotel chains, the passage came as a huge validation, legalizing its business model in its hometown and clarifying the rules by which it must abide. It was also a victory for Airbnb that several proposals to toughen the legislation failed to pass. Supervisors grappled with ideas including limiting "hosted rentals" - in which the resident is present to 90 days, barring temporary rentals of in-law units and requiring Airbnb to pay back taxes, but ultimately rejected them. In an upbeat statement, Airbnb said the law "will give regular people the right to share the home in which they live," underscoring its contention that most hosts are community members trying to make ends meet. Scores of Airbnb hosts spoke at public meetings and rallies over the past several months, supporting the version of the law that the supervisors green-lighted. But housing advocates, landlords, neighborhood associations and labor groups also showed up in force to express concerns that vacation rentals were diverting housing units, raising prices, threatening tenant security and interfering with residential areas. Ted Gullicksen, head of the San Francisco Tenants Union, was disappointed that more-stringent requirements didn't make the final cut. Allowing people to rent rooms to travelers year-round removes a source of affordable shared housing, he said. "Bedrooms in houses, condos and apartments, which normally would be made available to permanent roommates, will now be put on the market as tourist rentals, making housing less F F 1 findable for San Franciscans," he said. Another issue is how the city can distinguish between hosted and non-hosted rentals, making enforcement more challenging, he said. Little enforcement of ban The city's ban on short-term rentals has been lightly enforced, even while thousands of residents, turned to Airbnb, HomeAway/VRBO, Flipkey and other websites to rent their homes and rooms to travelers. Airbnb, the dominant short-term rental site in San Francisco, has about 5,000 listings here, two-thirds of them in entire homes, according to a Chronicle analysis. HomeAway/VRBO has about 1,200 in San Francisco, all entire homes. Proposals to beef up enforcement of the law by allowing housing nonprofits to quickly sue violators had some support but must go through additional hearings. That 'Concept will be introduced as "trailing legislation" in the future. Supeivisors Jane Kim and London Breed both introduced proposals to give nonprofit housing groups "private right of action" against those who flout the law. Allowing fast-track lawsuits for nonprofits would be "an effective and cheaper means to do enforcement," said Kim, saying the city hadn't demonstrated that it had the resources to investigate issues. More on the 'Airbnb law' b ,y C V L D P_a From: Anita Isser <anita ,mind.net> Date: February 9, 2015 at 8:23:05 PM PST To: ipkqplan46@gmaii.com Subject: Vacation Rentals February 9, 2015 Ashland Planning Commission Dear Mr. Kaplan We are appealing to you once again to look at the "200 ft rule regarding vacation rentals. We have written before and spoke at a couple of meetings. We have lived in our house on Garfield Street for 36 years. The upstairs has a separate entrance, kitchen, bath and electrical meter. For many years we rented the apartment full time. But we no longer rent it year round, because we want the space for our visiting adult children and extended family and friends. A vacation rental is the most appropriate use for this apartment. We would like to create a legal vacation rental. We meet all of the current required criteria we live on the site, there is adequate off-street parking, and we live in a multi-family residential zone. However, we are not 200 feet from an arterial street. We are approximately 500 feet from East Main. In all our inquiries we have yet to receive a satisfactory explanation for this rule. That "it's been on the books for a long time" does not explain the rationale behind the rule. To "prevent undesired traffic in neighborhoods" is totally irrelevant on Garfield Street, which is highly populated, with a fair amount of traffic, and with access to SOU and Garfield Park. We could be running a lovely vacation rental that would benefit the city, tourists, and ourselves. The city would receive lodging tax revenue, tourists would have another good option for their visit, and we would be supplementing our income as we approach retirement with very limited funds. Seems like it could be a win-win situation. We urge the planning commission to please revisit this issue and create some reasonable rules and guidelines. Sincerely, Anita and Steve Isser 84 Garfield Street Ashland Ri`.". a... . s t a L ~:::V From: Abby Hogge <abby,rowleyCcr~gmail,com> , (I Date: February 9, 2015 at 8:47:31 PM PST To: rpkaplan46 rr,_mail.com Subject: Ashland Hosted Accommodations Dear Mr Kaplan, For 2 1/2 years, residents of Ashland have been asking the city to adopt ordinances, which will both protect and promote a safe and new wave of accommodations. During this time, we are continually reminded of the change in direction in the lodging industry. This significant importance cannot be overlooked. Just LAST week, the COVER of TIME magazine highlighted the "shared economy" and America's new embrace of sharing spaces, homes, cars or even a meal for a unique and affordable means to earn income, interact with locals, all while reducing the overall consumer and environmental impact. Month after month we are seeing tourist cities and towns creating ordinances that embrace this idea. while simultaneously protecting the integrity of its citizens Please do not be a city that denies this glaring evolution. Ordinances can be written that both welcome this new idea and protect the integrity of Ashland. I ask that you do not limit the regulations to the point in which no one can participate. I urge you to consider specifically: Removing the 200ft rule in all zones • Welcoming both land owner or business owner as occupied hosts in RI zones, just like R2 and R3 zones. • Allowing up to 4 total guests There is NO evidence showing that host occupied stays have any greater impact than someone renting long term or someone operating a home business. I would argue that since switching to a long-term rental, the impact on my property has increased substantially. What was once a room occupied 2-3 days a week is now occupied 7 days a week ALL YEAR LONG. This outcry of opposition is solely from business owners who have come into threat of losing against an industry which is quickly evolving away from the past models. It is not up to the commission to protect these businesses, but to find ways to embrace a new concept of lodging, just like the city did when the pioneer B&B owners were sitting here advocating to allow their style of lodging many years ago. We are not here to destroy our neighborhoods. We are the good neighbors who have invested into our homes so that we may share them with others. Thank you for your consideration, Abby Hogge f.. r, E From: "Tom DuBois" <tduboisl gmall.com> To: "Bill Molnar" <molnarb@ashland.or.us>, "Deborah Miller" <hmiller@ieffnet.or~>, "Lynn Thompson" <Ikthompson hotmail.com>, "Melanie Mindlin" <sassetta@mind.net>, "Mike Morris" <mike@council.ashland.or.us>, "Richard Kaplan" <rpkaplan46@gmail. com>, "Tracy Peddicord" <tmpeddicord@gmail.com>, "Troy Brown" <tbrownpc@~mail.com> Sent: Friday, February 6, 2015 12:24:43 PM Subject: February 10 Planning Commission Meeting: HOSTS Dear Commissioners, My name is Tom DuBois. i am writing on behalf of the many members of Ashland HOSTS (Home Occupied Short Term Stays), who support short term rentals in R-1 zones. Thank you for your thoughtful consideration over these last 18 months. HOSTS feel both sides of this issue have been more than sufficiently explored via public testimony... and we imagine you agree. As such, and in the interest of supporting the most expeditious meeting possible on Feb 10th, we have agreed as a group that HOSTS will not provide additional testimony, nor will we be present en masse. Please, do not mistake a lack of HOSTS presence for our lack of passion. We will be watching - optimistically and passionately - from home. . Thank you again. Tom DuBois HOSTS Laura L. Smith 1100 Paradise Lane Ashland, Oregon 9752Q February 5, 2015 City of Ashland Planning Commission Ashland, Oregon 97520 (Hand-delivered) RE: Upcoming regulations of hosting AirBNB guests. Dear Gentleperson: My objective in writing this is to express my strong support of allowing wide latitude to the citizens of Ashland to participate with companies like AirBNB, and here's why: I am a single woman and have lived in the home I own in Ashland for over 20 years. I will reach retirement age within the next year and could work a few more years except for a repetitive stress injury I suffer from. I will receive no pension and no disability pay. For the last several years, my adjusted gross income has fallen within the 60% AMI range listed in the city's affordable housing website. Since I live in a 2400 square foot home, and my home is my single most valuable asset, finding ways for my asset to sustain me is now my focus. My daughter suggested hosting through AirBNB as perhaps the best route since I can pick and choose when to open my home to guests, all at my convenience and need. Property taxes in this home "I own" are over $5,000 annually, before the costs of upkeep. As I am less able to work, my assets need to work best for me. I live on a street in Ashland where mine is the fourth house up from Peachey Road, in an RR,S zone. My house is the last property within city limits. There are six houses past mine in the county. Of these properties, one has a dojo and the owner teaches martial arts there; one rents out rooms on his property; and one Page 2 holds construction workshops, The road is a major access to the TID ditch trail and there is considerable foot traffic and occasional car traffic for accessing the ditch. 5o there is not a sense of only our immediate neighbors traveling our very short road - it is a very busy road for the few homes along its way. I think disallowing AirBNB hosting in RR.5 zones is too arbitrary and discriminatory to property owners. All property owners need to have full authority and decision- making powers to determine who lives with them, who rents from them, who visits them. Micro-managing individuals' personal decision-making around their own property seems, in my mind, to overstep reasonable government oversight. To limit Air13NB hosting only to those whose properties fall within R1 and are no more than 200 feet of neighborhood connector roads is discriminatory and inherently unfair. There should be no limitations on any property owner's rights and abilities to manage his or her own household around any issues like this. In speaking with the planning department, I was told that the proposal would be first to limit the freedom and rights around hosting via AirBNB to only homeowners within R1 zoning, and only those within the 200-foot limit. Then once those potential sites were defined, that property owners wishing to host would need to apply for a conditional use permit in the amount of $249, and it was my understanding that even then, that homeowner could be denied the right to have others rent a room or two in their own homes. This whole proposed process seems like a bunch of rigmarole. Why not let each individual property owner decide what he/she should do with their own home on this issue, in any zone, and let the AirBNB process either help them be successful or to fail, with the only requirement being the fees due the city upon each paid use of a room (which I have read that AirBNB is moving to facilitate the collection and payment through their own site between host and city), OR let anyone in Ashland apply for the conditional use permit and let that process fulfill its apparent intended purpose to qualify a homeowner as a host, either of which seems wholly more fair across the board. And no business license required; personal income taxes should suffice. FEB 0 5 29'15 Page 3 That the lodging industry of this town wants to place the same restrictions and burdens upon homeowners that they bear is comparing apples to oranges. Homeowners who wish to participate in AirBNB have a bit of extra room in their own home - perhaps a guest room with a bathroom -that is underutilized or not used at all, and wish to help sustain their ability to stay in Ashland through the use of perhaps their only asset. When the city talks about "affordable housing," it should recognize and think very clearly about all the property owners living here just barely and whose property taxes help build affordable housing for others. If the city is serious about affordable housing, people who live in Ashland need to have the right to make their own home affordable through whatever gentle means they can employ. Would neighbors rather have weekend guests (one car, perhaps) traveling the city road past their homes, or one or more cars each and every day from long-term renters, and the landlord/property owner living in some other city? If long-term renters are permitted, short-term should be, too. No government, no neighbors, should have the right to say when/who/if a person or persons can sleep in a bed in one's own home. . . Period. As a property tax-paying citizen of this city, I request that the least burdensome, most open and wide policies be developed around this issue of individual rights of homeowners to determine their own needs and means and to have the full option to choose hosting through sites like AirBNB. I request the least bureaucratic, least burdensome process be put in place with the utmost ease and convenience to homeowners who choose utilizing AirBNB for whatever personal reasons. After all, it is upon our homeowners' collective backs that all levies rest and that the majority of government is funded. We are a major engine of the City of Ashland and the State of Oregon. Let us have the fuel we need to keep ourselves going. Do not consider collective association rights above those of the larger population who need their rights and freedoms and privacy protected more and more these days. FEB 0 5 2015 Page 4 Thank you for all your consideration you are giving to these issues. I know they seem complex, but at its core, it is really quite simple. We live in a rapidly changing world - either we flow and grow or we resist, stagnate and diminish. Let's flow! Cordially, 'La Ora mith FEB 0 5 2015, RE ' , From: "Ellen C Campbell" <comfY(a)ashlandbnb.com> JAN 2 3 21114 To: tbrownpc@gmail.com, rpkapian46@amail.eom, "GregLemhouse" <greg_@council.ashland.or.us>, bmiller0jeffnet.or- sassetta ,mind.net, "Bill Molnar" <rnolnarb(a~ashland.or.us>, lkthompson(a?hotmail.com, tmpeddicord(cr~,gmail.com Sent: Friday, January 23, 2015 9:17:24 AM Subject: Information/questions to the Planning Commission To: Planning Commissioners From: Ellen Campbell The proposed Accessory Traveler's Accommodations ordinance should not be recommend to city council. These kinds of accommodations, are redundant in R2/R3, and should not apply to R-I zones. Below are 7 items, some point out problematic aspects that should provide reasons enough to not recommend this proposed ordinance. Other items bring up questions for discussion, that should be considered by the commission, if going forward this ordinance. Even though you're tasked with reviewing the proposed ordinance for Accessory Traveler's Accommodations, as advisors to the City Council, it is still within your purview to recommend, or not recommend the ordinance. Thank you for your time in considering the below points, Ellen Campbell 1. Enforcement. The owner-occupied requirement in the proposed ordinance will not be enforceable The existing ordinance requires Traveler's Accommodations (TAs) in R2/R3 to be owner-occupied, And today there are approximately a handful of TAs that are not actually owner-occupied. It's known (this is a small town) and a few are even known by Ashland's Enforcement Specialist. The reality is he has difficulty enforcing the owner-occupied rules in R2/R3 zones. When he asks, "Do you live here?" they lie he has to take their word for it. (And yes, they lie.) The process of investigating whether a property is owner-occupied will not be pursued further, unless a neighbor is willing to go on the record, and give testimony that the owner is not present when guests are there. This is a set up for neighbor conflicts, which people tend to avoid; as well as being unjust for all those who abide by the law. Literally, short of conducting surprise bed checks, it is not possible to prove whether the owner lives on the property when hosting visitors. That's for R2/R3, expand TAs into RI zones and the same thing will happen. If TAs are prohibited in R-I zones enforcement is much easier. When a TA is advertised on a website, the enforce officer can contact the owner and infonn them of the ordinance and tell them to stop. Most times according to the enforcement officer that is all that's needed, the ad goes down. If a neighbor sees multiple out of state cars corning and going every 2-3 days (that's the average duration of stays) it's obvious something is fishy. 2. Long-term Rental Stock In the last meeting, Commissioner Kaplan questioned if the presence of short-term rentals in R-I zones would erode long-term rental stock. It most certainly does. First, let's agree that owner's purpose for having rentals (long- or short-term) is to generate revenue; and people make choices and financial decisions based on maximizing the income potential of a property. Some facts: A. Compared to long-term rentals, short-term rentals bring in 3-4 titres the revenue per month. B. Today to have a property generate rental revenue in an R-1 zone, one must rent long-term (for more than 30 days). Thus an owner can either: 1. rent the entire house, 2. share the house, i.e., take on a roommate, or 3. build an additional dwelling unit (ADU). All of which are legal if the tenants are long term, and at least the last two options would definitely add to the long-term housing stock. C. Reducing long-term rental stock will increase rent for the remaining rental properties supply and demand. D. Ashland has a deficit of rental stock for those whose incomes are lower than $10,000/year. Allowing short-term rentals in R-1, even with the restrictions in the proposed ordinance, will not protect the long-term stock. No matter how tight the ordinance is written. 1. The shared housing situation will be greatly reduced. If an owner is willing take on roommates, then why not short-term visitors who will pay 3-4 times more than a regular roommate? Especially, if the visitor will only be in the bedroom, and not in the kitchen. Especially as landlord-tenant law protects long-terra renters and not short-term, so if you have the rare difficult visitor you can ask the guest to leave with long-term renters the eviction process is onerous, Bottom line: an owner can live with short-term renters for 5-6 months a year and make way more money. 2. For someone who wants to generate more revenue (and that's what this all about getting more money for your property), today they will build an ADU. The return on investment on an ADU takes awhile, but eventually the ADU will be a nice cash cow. With the new proposed ordinance, there is little to no waiting for an return on investment, the funds for building an ADU will be diverted to fix up a room or two to accommodate tourists. The cost to fix up a spare room or two, or carve out a little rental unit in one's basement is so much cheaper than getting a permit for, and building, an ADU. As a consequence, less ADUs will be built. In fact, there will be ADUs that will be converted to short-term by removing the stove. For marry years there has been a deficit of housing for Ashland citizens whose income is less than $10- 15K a year. Short-term lodging in R-1 zones will only exacerbate the housing issues in Ashland. 3. Parldng and Traffic Off-street Parking: For each 2-room TA, expect 2 guest cars, in addition to how many cars owners have. Guests will use as many cars as it's convenient to their schedules and departure points, they will not abide with parking rules. The Planning Commission discussed the possibility of restricting the number of cars their guests can use. This is neither feasible for the owner nor easily enforceable for the city. As a practical matter, and based on experience, it is reasonable to assume that majority of the time there will be one car for each room. If the room has two double-occupancy beds, then assume two cars per room (for a two room ATA, that could total 4 guest cars per visit). It is vyM rare that guests carpool, i.e., two couples in one car. Visitors are not friends of the homeowner, but clients; it is impossible and unfair for the homeowner to dictate to how many cars visitors will use. Meanwhile, R2/R3 TAs offering the exact same kind of accommodations most have off-street parking for each rental unit/room. This is patently unfair to the existing TAs. Traffic and 200 feet: Tourists/visitors are a source of increased traffic. This is one of the reasons the location of existing R2/R3 traveler's accommodations are restricted to 200 feet from a collector or arterial street. Traffic to and fro TAs will stay on the larger streets, and not go deeper into the neighborhoods. Visitors come and go all the time, far more than residents. Please remember as TAs in residential neighborhoods are owner- occupied, guests' car traffic is over and above residents'trafFic. Most R-2 & R-3 zones are within close walking distance of downtown or within downtown districts, many of those guests never use their cars until it's time to leave. For any lodging 6 or more blocks away from the downtown and theaters, visitors will drive into the downtown (at least twice a day with a duration of 3-5 hours) which will further exacerbate downtown parking shortages and circulation issues. If the Planning Commission has any interest in encouraging visitors to walk, then placing TAs in R1 zones will undermine that goal. Most collector or arterial streets in R1 zones are many blocks or miles from downtown. 4. Liability Insurance If ATAs are allowed, the owners need to prove they have appropriate liability insurance that will protect their property, guests, and the city. This requirement has been questioned by Bill Molnar as to whether the city should do this. However, the city of San Francisco included that requirement in their recently passed law. For a good reason, please consider this scenario: if a renter's accident is grievous enough, and the homeowner did not have liability insurance, a claimant's lawyer would go for the closest'deep pocket', and name the city as a cc-defendant. The city allowed this business in residential home without requiring the proper insurance. The city probably won't be held accountable in the court of law, (and most insurance law suits settle) however the taxpayers will be held accountable for the billable hours their lawyers will charge to get the city off. It . would be fiducially responsible to include the requirement for liability insurance. 5. Kitchen Access The proposed Accessory Traveler's Accommodations disallows having a kitchen in the rentable unit for the purpose of protecting long-term rental stock. There is however no mention whether the guest will have access to the owner's kitchen. Many rooms on airbnb and craigslist advertise access to a kitchen. If access is allowed, then we are back to describing a roommate/shared housing scenario which should be a long-term rental. Additionally there are county health ordinances and inspections that come into play. There will be no way to enforce a no-kitchen-access ordinance. 6. HOAs Most homeowner associations' CC&Rs disallow short-term renting. Is it appropriate, or necessary, to mention in the proposed ordinance that if TAs are allowed in R-1 zones, HOAs' rules and CC&Rs' supersedes the ordinance? 7. Transferable CUP and Mortgage Fraud Will the ATA CUP be transferable upon sell of the home? Should banks or mortgage companies be informed of change of use when a CUP is, issued? First some facts: Currently, in R2/R3-zoned TAs, CUPS stay with the property, if there's a change in ownership, then the new owner needs to inform the city. There is no need to undergo a new CUP process. Most TAs in R2/R3 have commercial mortgages or modified residential mortgages (both kinds with higher interest rates) because they are income-generating property even if they are owner-occupied. When writing loans, banks ignore the owner-occupied and focus on the rental part in order to justify higher charging higher interest rates, because they are taking on more risk. It's safe to say that most, if not all, mortgages in R-1 zones originated as primary residential loans. If the mortgage is older than 2 years, then most mortgage companies will not care that use of the house has changed, and the house is now operating as a lodging business (although the bank is unwittingly taking on higher risk). Some banks might actually care, but the older the mortgage the more likely they will over look it until it's time to re-fi or sell of course. Most residential loans have a clause that requires the house to be the owner's primary residence (usually for 2 years after closing) and will allow the house to become a rental, or income generating, after the 2 years are up. If the owner changes use of the house within the time stated in the mortgage agreement, it is considered mortgage fraud jail time and big fines are the consequences of this kind of fraud. When a property has a CUP associated with it, selling and buying the house can be problematic. Disclosures and County records will indicate CUPS. The buyer might not want to operate a TA, and will have to go through extra hoops to prove to the mortgage company of their intent in order to qualify for a lower interest rate. If they do that, and they continue taking guests, then that's mortgage fraud. If after 2 years, they want to operate a lodging business they then can apply for a CUP in their own name. Discussion: Under certain conditions (i.e., with new mortgages or recently re--fi'd homes), allowing lodging businesses in R-I zones actually means the city is paving the way for homeowners to commit fi-aud or at the very least be in breach their contract with their mortgage companies. Therefore before the city gives a permit to operate a TA in R-1 zones, should the owner prove to the city that the mortgage company is good with the house becoming a traveler's accommodation? i ' Ashland Planning Commission R E U_ 9 VED January 13, 2015 aM 0 9 701 Dear Planning Commission. I urge you not to recommend moving forward with the Short Term Rental in R-1. In all the materials generated by the Planning Commission or Staff, II did not find the results of any assessments of the benefits of Short Term Rentals in R-1 zones. In the City's documents on Short Term Rental, I did find the following: 1. "Neither staff nor the Planning Commission has forwarded a recommendation on whether to pursue or not pursue changes to the Land Use Ordinance. " Makes you wonder why this topic has not deleted from further deliberation. !2 "The goal is to minimize impacts on neighborhood character and ensure the affects of the code amendments are not inconsistent with other currently permitted uses." "The presence of the property owner living on site would greatly reduce the opportunity for adverse impacts to the neighborhood" What inappropriate and tragic goals. The city should not inflict our residential communities with a code change and then find ways to minimize those adverse impacts! Furthermore, to ensure that the affects are not-inconsistent with other permitted uses is so shortsighted. The code amendments should be consistent with the zoning code for R- 3. "As part of considering this type of use, which currently is not permitted in single-family zoning districts, a number of code amendments are being evaluated by the Planning Commission, including., size of accommodation, location, type (i.e. attached or detached, management, parking; and the approval process. Additionally, the Planning Commission is evaluating neighborhood impacts and the potential effect on long term rental housing supply. " This is very poor thinking. Size, location, type are not the benchmarks that should be used for evaluation. Such shortsighted benchmarks! Short Term Vacation Rentals should be evaluated by whether not they are in alignment with the code: "The purpose of the R-1 district is to stabilize and protect the suburban characteristics of the district and to promote and encourage a suitable environment for family life. " And clearly, Short Term Vacation Rentals in R-1 does not support the purpose of R-1, in fact, it undermines it and breaks faith with the Ashland families that purchased homes in R-1 neighborhoods. During discussions between commission members and Planning Department personnel at the Planning Commission meetings on this issue, it Was mentioned that the occupancy rate for currently licensed vacation rentals does not indicate any shortage of available short-term accommodations, and (allowing:short-term rentals in R-1 neighborhoods will lilrely reduce the availability of long-term rental housing. This assessment does not support having Short Term Vacation Rental in R-1: Furthermore, the area maps for Short Term Vacation Rentals would divide some R-1 neighborhoods. Therefore, Short Term Vacation Rentals would violate our neighborhoods, break the zoning code for, R-t, and then divide neighborhoods. This is unbelievably harsh. Finding the courage to not recommend Short Term Vacation Rental in R-1 is easy and absolutely needed: There are no benefits. ,,There is no needs assessment that supports doing so. -It violates the code for R--1. -It divides some R-1 neighborhoods. ,,A code change that requires ways to "minimize" the adverse impact is wrong. ,,The long-term consequences to our residential R-1 neighborhood, where we raise our children, are detrimental to the sustainability of Ashland. ,,Above all, do no harm. Please do not recommend Short Term Vacation Rentals in R-1. Sincerely, Dolly Travers 426 Clinton Street Ashland, Oregon Hello Bill Molnar, As promised here is as a starling point a list of recommended items that should be included in either the CUP process or written in the ordinance. As ill advised as it would be, if the council opens up R-1 zones for lodging businesses, the ordinance should be. carefully written. In the July 1, 2014 city council meeting, Pam Marsh implied she would support an ordinance that allows STRs in R-1 zones if there can be a.level playing field with existing TAs. From any notes, she listed a few of the parameters that would entail an even playing field: only one bedroom, no ARUs, parking, same fee structure. (this is not a complete list of what she said, I didn't capture every item) Recommendations of what should be included in the CUP process and in the ordinance In general, ALL Traveler's Accommodations (TAs) in all residential zones must be compliant with the laws and ordinances of the city, state, and county. R-I zoned TAs at a minimum should have at least the same restrictions and requirement as R2/R3 zoned TAs, to include the 200 foot restriction. Here is a more detailed list: 1. Because of the potential for loan fraud, the owner's mortgage company should be notified re: change of use of the home. 2. Proof of appropriate property rental insurance (avoids the city being named as a co-defendant in law suits, and further ensures that there's an even playing field) 3. Inspection by fire department 4. Proof that the owner has registered with the State of Oregon to charge visitors lodging tax that will be remitted to the OR Department of Revenue 5. Owner to pay County Personal Property Tax either the city notifies the county of the new business or the owner provides proof that they are registered with the county 6. Utility is notified that changes in billing needs to made 7. Parking requirements are the same as for an R2/R3 TAs, off-street parking for each room rented in addition to two off-street spaces for the owners 8. No kitchen access or privileges, no breakfasts served 9. 1 year review, notices go out to neighbors 10. The CUP expires with the sale of the property, if new owners want to continue the business, they must apply for their own CUP 11. One reservation per TA at any time, one bedroom 12. Room must be within the footprint of the owner's house 13. Owner-occupied only, owner present when guests are visiting no subletting and no property manager 14. Additional dwelling units, cottages, ARUs or any accommodations that have kitchen facilities are not for short-tern renting. Loan Fraud I know this might sound strange, but in the interest of 1. making sure the owner square with the mortgage lender, and 2. creating an even playing field, the mortgage bank should be notified that there's been a change in the property. The lending agents I've talked to said that they would want to know if someone was converting from a residence to a TA, even if it's still their primary residence. The property is no longer just a primary residence but it is also an investment property. The fact is if the loan has been in existence for some time, then the mortgage company might not care, BUT if the loan is new within a year or two, or recently refinanced, and the owners got the loan on the pretense that it was not an revenue generating property that it was merely primary residence, then changing the use of the home is actually fraud. When any of the existing B&B and vacation rental owners try to refinance, our mortgage rate is HIGHER because we're a hybrid between primary residence and commercial even though we are owner-occupied. I don't think the city wants to create an ordinance that paves the way for an owner to commit mortgage fraud. In all likelihood it won't be the case, but there's no harm in requiring the owner to notify the mortgage bank of their intent to change the use of the property. For a definition of mortgage fraud: http://en:wilcipedia.org/wiki/Mortgage fraud CITY OF ASHLAND Accessory Traveler's Accommodations PUBLIC INPUT A complete record of the public input (submitted December 2013 to January 2015) can be found online at: http://www.ashland.or.us/Files/2015-02-10_ATA_Publiclnput.pdf ATTN: LEGAL PUBLICATIONS PUBLIC HEARING NOTICE On February 10, 2015, the Ashland Planning Commission will hold a public hearing regarding proposed amendments to the land use ordinance which would allow small scale short-term rental units (i.e., accessory traveler's accommodations) in the single-family and multi-family zones. The proposed amendments are to Chapter 18.2.2 Base Zones and Allowed Uses, Chapter 18.2.3 Special Use Standards, and Chapter 18.6.1 Definitions. The Planning Commission will review the ordinance amendments and make recommendations to the Ashland City Council. The public hearing will be held at 7:00 p.m. at the Ashland Civic Center Council Chambers located at 1175 E. Main St., Ashland, OR. The proposed ordinance amendments are available for review at the City of Ashland Department of Community Development located at 51 Winburn Way, Ashland, OR between 8:30 a.m. and 4:30 p.m. Copies of the ordinance and file information are available for purchase if requested. For additional information concerning these ordinance amendments, call the Ashland Planning Division at 541-488-5305. Oral and written public testimony regarding this matter will be accepted at the public hearing before the Planning Commission on February 10, 2015. Written statements are encouraged and may be submitted prior to the hearing dates. Mail written comments to Bill Molnar, Community Development Director, City of Ashland Department of Community Development, 20 E. Main St., Ashland OR 97520, via FAX at 541-552-2050, or via E-mail at molnarbgashland.or.us. Failure to raise an issue in person or in writing prior to the close of the public hearing with sufficient specificity to provide the reviewing bodies opportunity to respond to the issue may preclude your opportunity for appeal on that issue. By the order of Bill Molnar, Community Development Director In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Administrator's office at (541) 488-6002 (TTY phone number 1-800-735-2900). Notification 72 hours prior to the meeting will enable the city to make reasonable arrangements to ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title I). Publish: Friday, January 30, 2015 E-mailed: January 26, 2015 Purchase Order: #92355 Commissioners Miller/Thompson mis to approve the Findings with the noted correction. Roll Call Vote: Commissioners Brown, Dawkins, Thompson, Peddicord, Miller, Mindlin and Kaplan, YES. Motion passed unanimously. DISCUSSION ITEMS A. Accessory Traveler's Accommodations in Residential Zoning Districts (Short Term Rentals)' Commissioner Mindlin left the meeting due to a potential public perception of conflict of interest. Planning Manager Maria Harris presented the staff report and draft ordinance to the Commission. She reviewed some of the key provisions of the ordinance, which include: • The operator of the accessory traveler's accommodation must be the property owner, and the property must serve as the property owner's primary residence, • There is a limitation on the size of the operation. Only one accessory traveler's accommodation is permitted. The accommodation can be up to two bedrooms with no kitchen facilities, but it must be made under one reservation, • The ordinance does not require the accommodation to be within the footprint of the primary residence. • No more than five people can be on the site at one time (including the property owners). • The property must have two off-street parking spaces. • The property must be located within 200 ft. of a boulevard, avenue, or neighborhood collector. • Approved accessory traveler's accommodations would require a review and renewal of the conditional use permit within 24 months. Ms. Harris clarified this is a draft ordinance and the Commission can edit or change as they see fit. She added depending on how the discussion goes, the final ordinance could come back before the Commission for the public hearing on February 10, 2015. Commission Discussion Commissioner Thompson asked if there is anything in the ordinance that would prohibit property owners from renting out the entire house when they are not there, and recommended the presence of the owner be required. Ms. Harris clarified kitchen facilities are defined as having stove/cooking facilities, and Commissioner Dawkins recommended 220 volt outlets not be allowed in accessory traveler's accommodations. Staff was asked about the limit of five individuals. Ms. Harris clarified this language mirrors the requirements of all other single family residences. Staff was asked why this has come back to the Commission again. Ms. Harris explained the City Council is interested in looking at an ordinance that makes small scale short term rentals a possibility in single family zones. Commissioner Kaplan added the Commission needs to put forward an ordinance that lays out appropriate requirements, but stated it is also appropriate for the Commission to weigh in on whether these should be allowed at all in single family zones. Commissioner Kaplan recommended the Commission have more discussion on the draft ordinance language before they take public comment. • C-1: The operator of the accessory tra veler's accommodation must be the property owner and the property must serve as the property owner's primary residence during operation of the accessory traveler's accommodation. Recommendation was made for staff to revisit this language to make it clear that absentee owners would not be permitted, and to perhaps establish a limit on the number of hours the property owner can be off site. • C-2.• The property is limited to having one accessory traveler's accommodation unit, covered under a single reservation and consisting of two or fewer bedrooms, not including bathrooms. Kitchen cooking facilities are not permitted with an accessory Ira velar's accommodation, with the exception of kitchen cooking facilities for the primary residence. Ashland Planning Commission January 93, 2095 Page 2 of 5 Comment was made questioning if it is necessary to state that bathrooms are not included. • C-3: The total number of residents and guests occupying a dwelling unit with an accessory traveler's accommodation must not exceed the number allowed for a family. See definition of family in part 18-6. Ms. Harris commented on how this requirement has been applied in the past and stated it usually comes up with roommate situations. She added she would check with the City's legal department to see if there is another option instead of relying on the definition of family. Suggestions were made to establish a limit on the number of guests or limit the number of vehicles. • C-4: The property must have two off-street parking spaces. Ms. Harris clarified if the two parking spaces were located in the garage, this would still satisfy the requirement. Comment was made that adding additional parking could change the lot and the character of the neighborhood. • C-5: No signs shall be permitted in conjunction with the operation of an accessory traveler's accommodation. No concerns were expressed with this requirement. • C-6: A home occupation is prohibited with an accessory traveler's accommodation. No concerns were expressed with this provision. • C-7: When accessory traveler's accommodations are approved, they require a review of the original land use approval within 24 months of the initial decision. The review requires renewal of the Conditional Use Permit under chapter 18.5.4. The Commission discussed whether the property owner should have to go back through the conditional use process after two years, and if there are alternate ways these properties can be reviewed. Ms. Harris clarified this would be a one-time renewal and after that it would be compliant driven. The group discussed and voiced support for keeping this language as written. Recommendation was made for staff to revisit the wording in Section 3 to make it clearer to understand. Staff was also asked to remove "not including bathrooms." Commissioner Kaplan asked for the group's input on the 200 ft. rule. He stated the intent is to direct traffic onto higher order streets, and asked if this was a valid consideration. Commissioner Brown commented on the desire to get visitors out of their cars and walking, and stated if you want to maintain low car usage these accommodations need to be closer in. Comment was made that higher order streets in the R-1 zones can be quite a ways from downtown and this provision may not stop people from driving. Commissioner Thompson commented on keeping the more restrictive requirements in the R-1 zone; however, if it were her decision she would not allow these accommodations in the single family zone and would remove the distance requirements in the R-2 and R-3 zones. Public Testimony Ellen Campbell/120 Gresham/Stated lodging businesses do not belong in single family neighborhoods and asked why the City would break face with the residents who invested in homes and want to live in neighborhoods. Ms. Campbell asked if the City could draft an ordinance that protects long term housing stock and expressed concern that this would invite more illegal rentals in single family neighborhoods. She spoke to the 200 ft. rule and stated this likely works well in R-2 and R-3 zones, but the R-1 zones are further out and guests will drive if they are going more than five blocks. Adam Lemon/451 North Main/Stated he is the owner of Abigail's Bed and Breakfast and during their analysis of the purchase they came across AirBnB and it became clear Ashland was struggling to handle this issue. Mr. Lemon stated the City's code officer has been making strides, but does not see any proposal to increase the size of the compliance department. Lois Van Aken/140 Central/Stated she is the owner of two single reservation traveler's accommodations in the R-3 zone, and is also president of the Ashland Lodging Association. Ms. Van Aken stated they are opposed to traveler's accommodations in the R-1 zone and stated the financial gain to a few does not mitigate the effects that will be felt citywide. She added no matter how detailed the ordinance is, it will be impossible to enforce and monitor in the R-1 zones. Ashland Planning Commission January 13, 2015 Page 3 of 5 Francesa Amery/860 Ashland/Commented on the lack of long term rentals in Ashland and stated she wants to live in a residential neighborhood and work in a commercial neighborhood. Ms. Amery noted the noise impacts of traveler's accommodations and stated she does not want strangers staying next door. Barbara Hetland1985 East Main/Stated this should not be done lightly and recommended this be taken to a vote of the entire City. Ms. Hetland stated the impact would be huge and there would be unforeseen circumstances. She added no one has proven there is a need for this, and asked why the City would change neighborhoods if there is no real need. John Baxter/831 Liberty/Stated he operated a short term rental until he learned this was not permitted in his zone, and now has a long term renter. Mr. Baxter stated he did not receive a single complaint when he was renting short term and the long term renter has a much greater vehicle impact. He stated the 200 ft. rule is arbitrary and recommended it be removed, and stated the conditional use permit process is sufficient for each neighborhood to decide for themselves if a short term rental is appropriate for their neighborhood. Laura Westerman/252 Timberlake/Stated her short term renters never generated a compliant, but she has received several complaints now that she is renting long term. Ms. Westerman stated her rental was 4 blocks from downtown and most visitors would never use their car and feels the 200 ft. rule is arbitrary. She voiced support for a 24 month review but recommended the fees be reduced. Katy Reppl514 Siskiyou/Voiced her support for Commissioner Thompson's stance and voiced concern with registered sex offenders who are not required to register if they live in a place less than 30 days. Ms. Repp asked if this moves forward that property owners be required to reapply every 12 months, which is the same requirement as business licenses. Steve Richiel1481 Windsor/Voiced his support for Ashland Lodging Association and stated he is opposed to traveler's accommodations in the R-1 zone and any expansion into the R-2 and R-3 zones. Mr. Richie stated he owns two vacation rentals in the commercial zone. One is up and running, but has been vacant much of this month, and the other is on hold pending decision of this group and the City Council. He stated he does not want to invest if they are going throw the gates open and allow this everywhere in town. He stated the City should keep the status quo and not do any further expansion. Commission Discussion Commissioner Kaplan clarified the charge of the Commission is to make a recommendation to the City Council on if accessory traveler's accommodation are allowed in the R-1 zones, what would the requirements be. He stated they can only make a recommendation and the final decision lies with the Council. Commissioner Dawkins commented that last time this went to Council the Commission did not make a recommendation on whether this should occur, and this needs to happen this time. Commissioner Kaplan stated he does not agree with the notion that if there are legal accommodations in the R-1 zone that this will spawn more illegal activity. He added making this legal with restrictions would be a more controlled circumstance. Peddicord agreed and stated she has three main issues: 1) maintaining the neighborhood character, 2) whether it is their responsibility to preserve the investment of people who are operating legal rental accommodations and reducing competition, and 3) whether this would have more impact than those operating a home business in the R-1 zone. Commissioner Thompson restated her position that traveler's accommodations should be not allowed in single family zones. She stated aside from the fact that there are people out there who want to do this and have financial motivations, she does not see this step is warranted. She added she would support removing the 200 ft. rule from the R-2 and R-3 zones but not allow any rentals in the R-1 zone. Commissioner Kaplan asked staff if there is a way to have a periodic review that does not trigger the full Type 1 process and fee. Commissioner Dawkins noted when the bed and breakfasts were first permitted a lot of these same discussions occurred and they also had a review period. Ms. Harris concurred and clarified there was an annual review each year for the first three years. Commissioner Brown stated they can create an ordinance if that is what they are asked to do, but he does not agree with allowing accessory traveler's accommodations in the R-1 zone. Commissioner Kaplan announced there will be a formal hearing on this issue, and while the City Council will want to know how many agree and disagree with this, they also need to put forward an ordinance and provide input on the 200 ft. rule in R-2 and R-3 zones. Ashland Planning Commission January 13, 2015 Page 4 of 5 OTHER BUSINESS A. Planning Commission's Annual Report Commissioner Kaplan was thanked for presenting the Commission's annual report to the City Council. ADJOURNMENT Meeting adjourned at 9:05 p.m. Submitted by, April Lucas, Administrative Supervisor Ashland Planning Commission January 13, 2015 Page 5 of 5 Planning Commission Speaker Request Form 1) Complete this form and return it to the Secretary prior to the discussion of the item you wish to speak about. 2) Speak to the Planning Commission frorn the table podium microphone. 3) State your name and address for the record. 4) Limit your comments to the amount of time given to you by the Chair, usually 5 minutes. 5) If you present written materials, please give a copy to the Secretary for the record, b) You may give written comments to the Secretary for the record if you do not wish to speak. 7) Speakers are solely responsible for the content of their public statement. Name (please print) Address (no P.O. Boa) 1 =i (-A . C. Phone G- In ail Tonight's_Meeting.Date_` .i cam. , ' t 1 Regular Meeting Agenda item number!-._1. OR Topic for public forum (non agenda item) Land Use Public Hearing For: Against: Challenge for Conflict of Interest or Bias If you are challenging a member (planning commissioner) with a conflict of interest or bias, please write your allegation complete with supporting facts on this form and deliver it to the clerk immediately. The Chair will address the written challenge with the member. Please be respectful of the proceeding and do not interrupt. You may also provide testimony about the challenge when you testify during the normal order of proceedings. Written Comments/Challenge: The Public Meeting Lore requires that all city meetings are open to the public. Oregon law does not always require that the public he permitted to speak. The Ashland Plarnring Commission generally invites the public to speak on agenda items and during public forun on non-agenda items unless time corrstr•anrts limit public testimony. No person has an absolute right to speak or participate in every phase of a proceeding. Please respect the order of proceedings. for puhlic hearings and strictly. follow the directions of the presiding officer. Behavior or actions m hick are unreasonably loud or disruptive are disrespectful, and may constitute disorderly conduct. Offenders will be requested to leave the room. Comments and statements by speakers do not represent the opinion of the City Council, City Officers or employees or the City of Ashland. Planning Commission Speaker Request Form 1) Complete this form and return it to the Secretary prior to the discussion of the item you wish to speak about. 2) Speak to the Plannning Commission from the table podium microphone. 3) State your name and address for the record. 4) Limit your comments to the amount of time given to you by the Chair, usually 5 minutes. 5) If you present written materials, please give a copy to the Secretary for the record. 6) You may give written comments to the Secretary for the record if you do not wish to speak, 7) Speakers are solely responsible for the content of their public statement. Y - (Please pant) Address (no P.O. Phone .i tS~"4 +a'.~ Lmaii---z~_-.L Tonight's Meeting Date ,fit' 1"' Regular Meeting Agenda item number _V\ ~ OR Topic for public foram (non agenda item) Land Use Public Hearing For: Against: Challenge for Conflict of Interest or Bias If you are challenging a member (planning commissioner) with a conflict of interest or bias, please white your allegation complete with supporting facts on this form and deliver it to the clerk immediately. The Chair will address the written challenge with the member. Please be respectful of the proceeding and do not interrupt. You may also provide testimony about the challenge when you testify during the normal order of proceedings. Written Comments/Challenge: The Public Meeting Lane requires that all city meetings are open to the public. Oregon law does not always require that the public he permitted to speak Tlie Ashland Planning Commission generally invites the public to speak on agenda items and during public forum on non-agenda items unless time constraints limit public testinaoiry. No person has an absolute right to speak or participate in every phase of a proceeding. Please respect the order of proceedings for public hearings and strictly follow the directions of the presiding offrcer. Behavior or actions which are unreasonably loud or disruptive are disrespectful, and may constitute disorderly conduct. Offenders will he requested to leave the room. Comments and statements by speakers do not represent the opinion of the City Council, City Officers or employees or the City of Ashland. Planning Commission Speaker Request Form 1) Complete this form and return it to the Secretary prior to the discussion of the item you wish to speak about. 2) Speak to the Planning Commission from the table podium microphone. 3) State your name and address for the record. 4) Limit your comments to the amount of time given to you by the Chair, usually 5 minutes. 5) if you present written materials, please give a copy to the Secretary for the record. 6) You may give written comments to the Secretary for the record if you do not wish to speak. 7) Speakers are solely responsible for the content of their public statement. Name Ake4t (please print) Address (no P.O. Box) J 1~ J Pboned Email r f~2 !:lL: 1:tt•-~ Tonight's. Meeting Date 1. ` r7 Regular Meeting Agenda item numberSIC-OR Topic for public forum (non agenda item) Land Use Public Hearing For: Against: Challenge for Conflict of Interest or Bias If you are challenging a member (planning commissioner) with a conflict of interest or bias, please write your allegation complete with supporting facts on this form and deliver it to the clerk immediately. The Chair will address the written challenge with the member. Please be respectful of the proceeding and do not interrupt. You may also provide testimony about the challenge when you testify during the normal order of proceedings. Written Comments/Challenge: The Public Meeting Lam, requires that all cio; meetings are open to the public. Oregon lanv does not ahi'CryS require that the public be pernzitfed to speak. Tlue Ashland Planning Cnrrnrtission geruerally invites the public to speak on agenda items and during public forum on non-agenda items unless time constr-airuts limit pzrblic iesfinrorry. No person has an absolute right to speak or participate in every phase of a proceeding. Please respect the order of proceedings for public bearings and strictly follow the directions of the presiding officer. Behavior or actions which are unreasonably loud or disruptive are disrespecfful, and may constitute disorderly conduct. Offenders 1vill be requested to leave the roo»r. Comments and statements by speakers do not represent the opinion of the City Council, City Officers or employees or the City of Ashland. Planning Commission Speaker Request Form l) Complete this form and return it to the Secretary prior to the discussion of the item you wish to speak about. 2) Speak to the Planning Commission from the table podium microphone. 3) State your name and address for the record. 4) Limit your comments to the amount of time given to you by the Chair, usually 5 minutes. 5) If you present written materials, please give a copy to the Secretary for the record. 6) You may give written comments to the Secretary for the record if you do not wish to speak. 7) Speakers are solely responsible for the content of their public statement. Name VI G2.lr +'i_ (please print) Address (no P.O. Box) 91 l0 0 - A d~ , ~ ~c a- S l f- ~Q .Phone fo 1 ®(D Email hYGyiGe f C Tonight's Meeting Date _ Regular Meeting Agenda item number OR Topic for public forum (non agenda item) Land Use Public Hearing For: Against: X Challenge for Conflict of Interest or Bias If you are challenging a member (planning commissioner) with a conflict of interest or bias, please write your allegation complete with supporting facts on this form and deliver it to the clerk immediately. The Chair will address the written challenge with the member. Please be respectful of the proceeding and do not interrupt. You may also provide testimony about the challenge when you testify during the normal order of proceedings. Written Comments/Challenge: Pl r L ti trl c~ i J2 L~ 1~~+ t ~'~-u ~i S o w t W i l l C l-1Gt cn ~1.e C y,- oti~ 1.~~ o u The Public Meeting La-pt, requires that all city meetillgs are open to the public. Oregon laiv does not always require that the public he permitted to .speak. The Ashland Planning Commission generally invites the public to speak on agenda items and during public forum on 17077-agenda items u17less time constraints lin7it public testirr7ony. N0 person has an absolute right to speak or participate in every phase of a proceeding. Please respect the order of proceedings for public hearings and strictly follotiv the directions 0f the presiding officer. Behavior or aCti071S which are unreasonably loud or disruptive are disrespectful, and may constitute disorderly conduct. Offenders ivill be requested to lecn,e the room. Comments and statements by speakers do not represent the opinion of the City Council, City Officers or employees or the City of Ash!ard. Planning Commission Speaker Request Form 1) Complete this form and return it to the Secretary prior to the discussion of the item you wish to speak about. 2) Speak to the Planning Commission from the table podium microphone. 3) State your name and address for the record. 4} Limit your comments to the amount of time given to you by the Chair, usually 5 minutes. 5) If you present written materials, please give a copy to the Secretary for the record. 6) You may give written comments to the Secretary for the record if you do not wish to speak. 7) Speakers are solely responsible for the content of their public statement. Name J ( [ ,f (please print] Address (no P O. Box) 1 . C Phone r7 ~1~:~'/ tZ Finail_~ Tonight's Meeting Date §731 Regular Meeting Agenda item number OR Topic for public forum (non agenda item) Land Use Public Hearing For: Against: Challenge for Conflict of Interest or Bias If you are challenging a member (planning commissioner) with a conflict of interest or bias, please write your allegation complete with supporting facts on this form and deliver it to the clerk immediately. The Chair will address the written challenge with the member. Please be respectful of the proceeding and do not interrupt. You may also provide testimony about the challenge when you testify during the normal order of proceedings. ]Written Comments/Challenge: The Public Meeting Law refjuires that all city meetings are open to the pitblic. Oregon late does not always require that the public be permitted to speak. The Ashland Planning Commission generally invites the public to speak on agenda items and during public fortan on non-agenda items unless time constraints limit public testimony. No person has an absolute right to speak or participate in every phase of a proceeding Please respect the order of proceedings for public hearings and strictly f rllow the directions of the presiding officer. Behavior or actlol7s which al'e trill"ea.Sonably lotld Or' drSr'uptive are disrespectful, and may constitute disorderly conduct. Offenders will be requested to leave the room. Comments and statements by speakers do not represent the opinion of the City CoundI, City Officers or employees or the City of Ashland. Planning Commission Speaker Request Form 1) Complete this form and return it to the Secretary prior to the discussion of the item you wish to speak about. 2) Speak to the Planning Commission from the table podium microphone. 3) State your name and address for the record. 4) Limit your comments to the amount of time given to you by the Chair, usually 5 minutes. 5) If you present written materials, please give a copy to the Secretary for the record. 6) You may g;-,e written comments to the Secretary for the record if you do not wish to speak. 7) Speakers e solely responsible for the content of their public statement. Iti;'PL- l :Name (}cease print) Address (no P.O. Box) 2 31 SV Phone. 51//-t/ 0~2 Email 6G~LC~. gym. ytz ~t7. C arc / S Tonight's Meeting.Date 1 13 Regular Meeting Agenda item number OR Topic for public forum (non agenda item) Land Use Public Hearing For.: Against: Challenge for Conflict of Interest or Bias if you are challenging a member (planning commissioner) with a conflict of interest or bias, please write your allegation complete with supporting facts on this form and deliver it to the clerk immediately. The Chair will address the written challenge with the member. Please be respectful of the proceeding and do not interrupt. You may also provide testimony about the challenge when you testify during the normal order of proceedings. Written Comments/Challenge: The Public Meeting Law requires that all city meetings are open to the public. Oregon Im+, does not always require that the public be permitted to speak. The Ashland Planning Corrttttissiort generally invites the public to speak on agenda items and during public forum on non-agenda items unless time constraints limit public testiratorty. No person has an absolute right to speak or participate itt every phase of a proceeding. Please respect the order of proceedings for public bearings and strictly follom, the dir'e'ctions of the pl'esidltig of cer'. Behavior or actions which are urrreasortably loud or disruptive are disrespectful, and may constitute disorderly conduct. Offenders will be requested to leave the room. Comments and statements by speakers do not represent the opinion of the City Council, City Officers or employees or the City of Ashland. Planning Commission Speaker Request Form 1) Complete this form and return it to the Secretary prior to the discussion of the item you wish to speak about. 2) Speak to the Planning Commission from the table podium microphone. 3) State your name and address for the record. 4) Limit your comments to the amount of time given to you by the Chair, usually 5 minutes. 5) If you present written materials, please give a copy to the Secretary for the record. 6) You may give written comments to the Secretary for the record if you do not wish to speak. 7) Speakers are solely responsible for the content of their public statement. Name (please print) i Address (no P.O.-Box) L- . Yt~ k.C f- LAS c' °}r ~~i, r~ ?a 2a 4 i ~k~y4t Phone Email Tonight's Meeting Date Regular Meeting Agenda item number OR Topic for public forum (non agenda item) Land Use Public Hearing For. Against: Challenge for Conflict of Interest or Bias If you are challenging a member (planning commissioner) with a conflict of interest or bias, please write your allegation complete with supporting facts on this form and deliver it to the clerk immediately. The Chair will address the written challenge with the member. Please be respectful of the proceeding and do not interrupt. You nay also provide testimony about the challenge when you testify during the normal order of proceedings. Written Comments/Challenge: 717e Public Meeting Lax requires that all city meetings are open to the public. Oregon laic, does not always require that the public be permitted to speak. The Ashland Planning Corrnrri.ssiorr generally invites the public to speak on agenda items and during public, forum on non-agenda items unless time cor7st7•crints limit public testimony. No person has an absolute right to speak or participate in ever), phase of o proceeding. Please respect the order c f proceedings for• public hearings andstrictly follmi, the directions of the presiding officer. Behavior or actions ivhich are unreasonably loud or disruptive are disrespecorl, acrd may constitute disorderly conduct. Offenders will be requested to leave the room. Comments and statements by speakers do not represent the opinion of the City Council, City Officers or employees or the City of Ashland. Planning Commission ti Speaker Request Form 1) Complete this form and return it to the Secretary prior to the discussion of the item you wish to speak about. 2) Speak to the Planning Commission from the table podium microphone. 3) State your name and address for the record. 4) Limit your comments to the amount of time given to you by the Chair, usually 5 minutes. 5) If you present written materials, please give a copy to the Secretary for the record. 6) You may give written comments to the Secretary for the record if you do not wish to speak. 7) Speakers are solely responsible for the content of their public statement. Name - - (please print) l Address (no P.O. I3ox) Phone i Email Tonight's Meeting Date f --r Regular Meeting Agenda item number OR Topic for public forum (non agenda item) Land Use Public Hearing For: Against Challenge for Conflict of Interest or Bias If you are challenging a member (planning commissioner) with a conflict of interest or bias, please write your allegation complete with supporting facts on this form and deliver it to the clerk immediately. The Chair will address the written challenge with the member. Please be respectful of the proceeding and do not interrupt. You may also provide testimony about the challenge when you testify during the normal order of proceedings. Written Comments/Challenge: The Public Meeting Law requires that all city meetings are open to the public. Oregon law does not always require that the public be permitted to speak. The Ashland Plartnirrg Con1r77isS10r1 generally invites the public to speak on agenda items and cluring public forum on non-agenda iterrrs unless time constraints lirrrit public testinrorty. No person has an absolute right to speak or participate in every phase of a proceeding Please respect the order of proceedings, for public hearings and strictly follow the directions of the presiding officer. Behavior or actions which are unreasonably loud or disruptive are disrespectful, and pray constitute disorderly conduct. Offenders will be requeslecl to leave the room. Comments and statements by speakers do not represent the opinion of the City Council, City Officers or employees or the City of Ashland. Planning Commission Speaker Request Form 1) Complete this form and return it to the Secretary prior to the discussion of the item you wish to speak about. 2) Speak to the Planning Commission from the table podium microphone. 3) State your name and address for the record. 4) Limit your comments to the amount of time given to you by the Chair, usually 5 minutes. 5) If you present written materials, please give a copy to the Secretary for the record. b) You may give written comments to the Secretary for the record if you do not wish to speak. 7) Speakers are solely responsible for the content of their public statement. Name`" ~C- 6 - - ' (please print} - 1 ! t Address (no P.O. Boa) q 7 76, # 1G1 Email 17 6 0'w11 Phone 1 Tonight's Meeting Date: I Regular Meeting Agenda item number ~tf OR Topic for public forum (non agenda item) p << S 4~'I o~eC i~ C~ s r' v~l r<y r` ¢r~l~rt:<xo`~= _ ,:'.,f C l fj f :t7 , 7 Land Use Public Hearing For: Against: Challenge for Conflict of Interest or Bias If you are challenging a member (planning commissioner) with a conflict of interest or bias, please write your allegation complete with supporting facts on this form and deliver it to the clerk immediately. The Chair will address the written challenge with the member. Please be respectful of the proceeding and do not interrupt. You may also provide testimony about the challenge when you testify during the normal order of proceedings. Written Comments/Challenge: The Public Meeting La►v requires that all city meetings are open to the public. Oregon lain does not always require that the public be permitted to speak. The Ashlai?d Plaruling Conrrrlissiorr generally invites the public to speak 071 agenda items and during public forum on non-agenda items unless time cotlstr~aiiits limit public testinrorry. No person has an absolute right to speak or participate ill every phase of a proceeding. Please respect the order of proceedings for public hearings and strictly follow the directions of the presiding officer. Behavior or actions which are unreasonably loud or disruptive are disrespectful, and may constitute disorderly conduct, Offenders will be requested to leave the room. Comments and statements by speakers do not represent the opinion of the City Council, City Officers or employees or the City of Ashland, Note: Anyone wishing to speak at any Planning Commission meeting is encouraged to do so. If you wish to speak, please rise and, after you have been recognized by the Chair, give your name and complete address for the record. You will then be allowed to speak. Please note that the public testimony may be limited by the Chair and normally is not allowed after the Public Hearing is closed. ASHLAND PLANNING COMMISSION REGULAR MEETING JANUARY 13, 2015 AGENDA 1. CALL TO ORDER: 7:00 PM, Civic Center Council Chambers, 1175 E. Main Street II. ANNOUNCEMENTS III. AD-HOC COMMITTEE UPDATES IV. CONSENT AGENDA A. Approval of Minutes 1. November 25, 2014 Special Meeting 2. December 9, 2014 Regular Meeting V. PUBLIC FORUM VI. UNFINISHED BUSINESS A. Approval of Findings for PA-2014-01956, First Place Subdivision (Lithia Way & First Street) VII. DISCUSSION ITEMS A. Accessory Traveler's Accommodations in Residential Zoning Districts (Short Term Rentals) VIII. OTHER BUSINESS A. Planning Commission's Annual Report IX. ADJOURNMENT CITY 0F ASHLAND pram" In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Community Development office at 541-488-5305 (TTY phone is 1-800-735-2900). Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title 1). CITY OF ASHLAND Memo TO: Ashland Planning Commission FROM: Bill Molnar, Community Development Director DATE: January 13, 2015 RE: Accessory Traveler's Accommodations in Residential Zoning Districts SUMMARY: On November 4, 2013, the City Council discussed the potential for permitting short term accommodations on owner-occupied properties in single-family zoning districts, and requested that the Planning Commission hold public meetings and forward suggestions for Council to consider. After several meetings, the Commission compiled a report that was presented to Council in July 2014. The report discussed and suggested code standards that would allow, but place limitations on operating short term accommodations from an owner-occupied property. Based upon the Commission's report and feedback from Council, staff has prepared a draft ordinance that with approval of a conditional use permit would allow a homeowner the ability to lease a single short term accommodation. Given that the scope of the operation would be far more limited than the existing traveler's accommodation ordinance, the proposed single accommodation is defined as an "accessory traveler's accommodation". Highlights of the draft code amendment include restricting the conditional use to owner-occupied properties, permitting not more than one accommodation per property, prohibiting the provision of kitchen facilities in the accommodation, disallowing the use in combination with a home occupation permit and setting a maximum number of individuals residing on the property at one time. BACKGROUND: For several years the City has had an ongoing problem with illegal lodging facilities in all of its residential zones. These facilities, which operate without conditional use permits or business licenses and without paying transient occupancy tax, will often advertise on web sites such as VRBO.com or AirBnB.com, making them relatively easy to find for code enforcement purposes. Since May of 2012, when the City began more vigorous code enforcement efforts with regard to illegal lodging facilities, about 60% to 70% of the code enforcement actions have targeted facilities in single family zoning districts. Most of these case involved whole house rentals where the property owner or manager did not reside on the property. At the direction of Council, the Planning Commission initiated a new discussion about potentially permitting short term accommodations in single family zoning districts. Public meetings on the subject were conducted in January, March and April, with the Commission focusing on prospective land use code language that would allow for limited operations comprised of a single accommodation on a "hosted" property. Additionally, the Commission reviewed and discussed the existing code standard that limits approval of traveler's accommodations to only properties located within 200-feet of a boulevard, avenue or neighborhood collector. In a prior Council communication, staff noted that there are currently 5,305 parcels in R-1 zones, with approximately 2,710 of these parcels within 200 feet of an arterial, avenue or neighborhood collector street. Draft Ordinance The draft code amendments have been incorporated into the format of the recently approved Unified Land Use Ordinance (ULUO). Land uses allowed by zone are identified in Table 18.2.2.030. Accessory Traveler's Accommodations are allowed and described in the table as a conditional use with special use standards in R-1; R-1-3.5, R-2 and R-3 zoning districts. Staff has provided comments (in italics) following some of the draft standards. This is intended to present some additional background information as well as to provide a basis for public discussion. The Commission's report delivered to Council in July addressed the issue of making adjustments to the standard that specifies that a traveler's accommodation be within 200-feet of a major street. The report noted that it is unclear that the rationale behind the standard is still valid and that the standard is still accomplishing what it was intended to achieve. However, the Commission concluded that it was not obvious that the standard was broken and that there exists a logical reason at this time to change it. During Council discussion about the report, it was suggested that any additional guidance with respect to the "200-foot" standard would be useful. For discussion purposes, staff has included information compiled for prior meetings concerning possible changes to standards for traveler's accommodations in multi-family zoning districts, R-2 and R-3. By adjusting the required distance from a major street, staff estimated the number of potentially new traveler's accommodation establishments based upon each scenario. Out of the existing 1507 properties within 200-feet of a boulevard, avenue or neighborhood collector, 39 (2.6%) of the properties have a conditional use permit to operate a traveler's accommodation. Applying these percentages to the three additional scenarios for R-2 and R-3 zoning properties yields the results shown in Table 1. Table 1 - R-2 and R-3 zoned properties Distance # of properties # of traveler's # of traveler's # of traveler's from a major accommodation accommodation accommodations Min street establishments units/rooms Historic District 200' 1507 39 (existing) 122 units/rooms existin 34 (existing) 300' 1861 48 (projected) 150 units/rooms estimate 42 estimate 400' 2026 53 (projected) 166 units//rooms estimate 47 estimate no restriction 2126 56 (projected) 175 units/room estimate 49 estimate For single family zoned properties (R-1), Staff extrapolated the same type of information for each of the four scenarios. Some of the data used for providing the hypothetical scenarios, however, had certain limitations and did not have the same level of accuracy as in the case for multi-family zoned land. This represents a general estimate of the potential for new short term rentals in single family zoned neighborhoods based upon the number and location of existing traveler's accommodations in multi-family zones. Simply stated, the tables show the potential of 2.6 accommodations for every 100 properties. This is merely an assumption and clearly there are other factors that have a greater influence on an increase or decline in the total number of establishments. Table 2 - R-1 zoned properties Distance # of properties Potential # of traveler's Potential # of traveler's from a major accommodation accommodation street establishments units/rooms 200' 2710 actual 70 estimate 70 estimate 300' 3322 estimate 86 estimate 86 estimate 400' 3620 estimate 94 estimate 94 estimate no restriction 5305 138 estimate 138 estimate NEXT STEPS: The purpose for this agenda item is to present code amendments that allow through the conditional use permit process a property owner to establish a single, short term rental. This new land use, an accessory traveler's accommodation, would be subject to a number of the same standards as a typical traveler's accommodation, but also would have to comply with specific standards intended to limit impacts to single family zoned neighborhoods. Based upon direction provided by the Commission, staff will prepare a revised draft ordinance. As required by the municipal code, a formal public hearing on the draft ordinance will be scheduled at a future date before the Commission. At that time, the Commission will again take public testimony, deliberate on the code amendments and forward a recommendation to the City Council. Attachments: • Draft Ordinance • Council Meeting Minutes • Planning Commission Report to Council ORDINANCE NO. AN ORDINANCE AMENDING CHAPTERS 18.2.2, 18.2.3, AND 18.6.1.030 OF THE ASHLAND LAND USE ORDINANCE RELATING TO DEFINTIONS AND ACCESSORY TRAVELER'S ACCOMMODATIONS IN VARIOUS RESIDENTIAL ZONING DISTRICTS. Should an allowance for an "accessory traveler's accommodation" through the conditional use permit process be available to all properties within single family, suburban, and multi family zoning districts? Annotated to show deletions and additions to the code sections being modified. Deletions are bold lined through and additions are bold underlined. WHEREAS, Article 2. Section 1 of the Ashland City Charter provides: Powers of the City. The City shall have all powers which the constitutions, statutes, and common law of the United States and of this State expressly or impliedly grant or allow municipalities, as fully as though this Charter specifically enumerated each of those powers, as well as all powers not inconsistent with the foregoing; and, in addition thereto, shall possess all powers hereinafter specifically granted. All the authority thereof shall have perpetual succession. WHEREAS, the City Council has determined that preservation of the character of residential neighborhoods is a legitimate and beneficial goal; and WHEREAS, the City Council has found an increasing number of residential dwellings are being rented to transients on a short-term basis for less than thirty (30) days; and WHEREAS the City Council has determined the City has a substantial interest in ensuring that all transient occupancy tax required to be collected and remitted is in fact collected and remitted on a fair and equitable basis; and WHEREAS, the City Council has determined it is necessary to establish rules and regulations to permit transient lodging within the City that allows a variety of choices, while ensuring the safety and convenience of transients, and to preserve the peace, safety and general welfare of the long-term resident of neighboring properties; and WHEREAS, the Planning Commission of the City of Ashland conducted a duly advertised public hearing on the amendments to the Ashland Municipal Code and Land Use Ordinances on ; and Ordinance No. Page 1 of 15 WHEREAS, the City Council of the City of Ashland, following the close of the public hearing and record, deliberated and conducted first and second readings approving adoption of the Ordinance in accordance with Article 10 of the Ashland City Charter; and WHEREAS, the City Council of the City of Ashland has determined that in order to protect and benefit the health, safety and welfare of existing and future residents of the City, it is necessary to amend the Ashland Municipal Code and Land Use Ordinance in the manner proposed, that an adequate factual base exists for the amendments, the amendments are consistent with the comprehensive plan and that such amendments are fully supported by the record of this proceeding. THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS: SECTION 1. Chapter 18.2.2 [Base Zones and Allowed Uses] of the Ashland Land Use Ordinance is hereby amended as follows: 18.2.2.030 Allowed Uses A. Uses Allowed in Base Zones. Allowed uses include those that are permitted, permitted subject to special use standards, and allowed subject to approval of a conditional use permit. Where Table 18.2.2.030 does not list a specific use and chapter 18.6 does not define the use or include it as an example of an allowed use, the City may find that use is allowed, or is not allowed, following the procedures of section 18.1.5.040. Uses not listed in Table 18.2.2.030 and not found to be similar to an allowed use are prohibited. For uses allowed in special districts CM, HC, NM, and SOU, and for regulations applying to the City's overlays zones, refer to part 18.3. B. Permitted Uses and Uses Permitted Subject to Special Use Standards. Uses listed as "Permitted (P)" are allowed. Uses listed as "Permitted Subject to Special Use Standards (S)" are allowed, provided they conform to chapter 18.2.3 Special Use Standards. All uses are subject to the development standards of zone in which they are located, any applicable overlay zone(s), and the review procedures of part 18.5. See section 18.5.1.020. C. Conditional Uses. Uses listed as "Conditional Use Permit Required (CU)" are allowed subject to the requirements of chapter 18.5.4. D. Prohibited Uses. Uses not listed in Table 18.2.2.030 and not found to be similar to an allowed use following the procedures of section 18.1.5.040 are prohibited. Prohibited uses are subject to the violations, complaints, and penalties sections in 18-1.6.080, 18-1.6.090, and 18-1.6.100. E. Uses Regulated by Overlay Zones. Notwithstanding the provisions of chapter 18.2.2, additional land use standards or use restrictions apply within overlay zones. An overlay zone may also provide for exceptions to some standards of the underlying zone. For regulations applying to the City's overlays zones, please refer to part 18.3. F. Accessory Uses. Uses identified as "Permitted (P)" are permitted as primary uses and as accessory uses. For information on other uses that are customarily allowed as accessory, please refer to the description of the land use categories in part 18.6 Definitions. Ordinance No. Page 2 of 15 G. Mixed-Use. Uses allowed in a zone individually are also allowed in combination with one another, in the same structure or on the same site, provided all applicable development standards and building code requirements are met. H. Temporary Uses. Temporary uses require a Conditional Use Permit under chapter 18.5.4; except as follows: 1. Short-Term Events. The Staff Advisor may approve through Ministerial review short-term temporary uses occurring once in a calendar year and lasting not more than 72 hours including set up and take down. Activities such as races, parades, and festivals that occur on public property (e.g., street right-of-way, parks, sidewalks, or other public grounds) require a Special Event Permit pursuant to AMC 12.03. 2. Garage Sales. Garage sales shall have a duration of not more than two days and shall not occur more than twice within any 365-day period. Such activity shall not be accompanied by any off-premises advertisement. For the purpose of this ordinance, garage sales meeting the requirements of this subsection shall not be considered a commercial activity. 3. Temporary Buildings. Temporary occupancy of a manufactured housing unit or similar structure may be permitted for a period not to exceed 90 calendar days upon the granting of a permit by the Building Official. Such occupancy may only be allowed in conjunction with construction on the site. Said permit shall not be renewable within a six- month period beginning at the first date of issuance, except with approval of the Staff Advisor. 1. Disclaimer. Property owners are responsible for verifying whether a proposed use or development meets the applicable standards of this ordinance. 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Chapter 18.2.3 [Special Use Standards] of the Ashland Land Use Ordinance is hereby amended to read as follows: 18.2.3.220 Traveler's Accommodations On R 2 and R 3 Zo Zones Where traveler's accommodations and accessory traveler's accommodations are allowed, they require a Conditional Permit under chapter 18.5.4, are subject to Site Design Review under chapter 18.5.2, and shall meet the following requirements. See definitions of traveler's accommodations (i.e., more than one quest unit) and accessory traveler's accommodations (i.e., one quest unit) in part 18-6. A. Traveler's Accommodations and Accessory Traveler's Accommodations. Traveler's accommodations and accessory traveler's accommodations shall meet all of the following requirements. 1. The property located within 200 feet of a boulevard avenue or neighborhood collector as identified on the Street Dedication Map in the Comprehensive Plan. Distances to the property from a boulevard, avenue, or neighborhood collector shall be measured via a public street or public alley to a lot line. 2. Accommodations must met all applicable building fire, and related safety codes at all times and must be inspected by the Fire Department before occupancy following approval of a Conditional Use Permit and periodically thereafter pursuant to AMC 15.28. 3. The business-owner of a traveler's accommodation or the property owner of an accessory traveler's accommodation must maintain a City business license and pay all transient occupancy tax in accordance with AMC 4.24 and AMC 6.04 as required. 4. Advertising for either accommodation must include the City planning action number assigned to the land use approval. 5. Offering the availability of residential property for use as an accommodation without a valid Conditional use Permit approval, current business license and Transient Occupancy Tax registration is prohibited and shall be subject to enforcement procedures. B. Traveler's Accommodations. In addition to the standards described above in section 18.23.220.A, traveler's accommodations shall meet all of the following requirements 1A. During operation of a traveler's accommodation, the property on which the traveler's accommodation is sited must be the primary residence of the business-owner. "Business-owner" shall be defined as a person or persons who own the property and accommodation outright; or who have entered into a lease agreement with the property owner(s) allowing for the operation of the accommodation. Such lease agreement must specifically state that the property owner is not involved in the day-to-day operation or financial management of the accommodation, and that the business-owner has actual ownership of the business and is wholly responsible for all operations associated with the accommodation, and has actual ownership of the business. Ordinance No. Page 10 of 15 B. The property is IeGated within 200 feet of a > avenue, OF neighbOF140 GGI!eGtor as identified on the StFeet DediGatiGn Map in the Comprehensive Plan. shall be measured via a public street," I - II , I a lot line. 2Q The primary residence on the site must be at least 20 years old. The primary residence may be altered and adapted for traveler's accommodation use, including expansion of floor area. Additional structures may be allowed to accommodate additional units, but must be in conformance with all setback and lot coverage standards of the underlying zone. 30.The number of traveler's accommodation units allowed shall be determined by the following criteria. a4. The total number of units, including the business-owner's unit, shall be determined by dividing the total square footage of the lot by 1,800 square feet. Contiguous lots under the same ownership may be combined to increase lot area and the number of units, but not in excess of the maximum established by this ordinance. The maximum number of accommodation units shall not exceed nine per approved traveler's accommodation with primary lot frontage on boulevard streets. For traveler's accommodation without primary lot frontage on a designated boulevard, but within 200 feet of a boulevard, avenue, or neighborhood collector street, the maximum number of units shall be seven. Street designations shall be as determined by the Street Dedication Map in the Comprehensive Plan. Distances to the property from a boulevard, avenue, or neighborhood collector shall be measured via a public street or public alley to a lot line. U. Excluding the business-owner's unit and the area of the structure it will occupy, there must be at least 400 square feet of gross interior floor space remaining per unit. 4€. Each accommodation must have one off-street parking space and the business-owner's unit must have two parking spaces. All parking spaces shall be in conformance with chapter 18.4.3. 51=. Only one ground or wall sign, constructed of a non-plastic material, non-interior illuminated, and a maximum of six square feet total surface area is allowed. Any exterior illumination of signage shall be installed such that it does not directly illuminate any residential structures adjacent or nearby the traveler's accommodation in accordance with subsection 18.4.4.050.C.1. G. TsaveleF's aGGOmmedatiens must met all applirable building, fire, and Felated safety Gedes at all times and must be inspected by the FiFe Department befGFe thereafter pursuant to AMC 28. 614.An annual inspection by the Jackson County Health Department shall be conducted as required by the laws of Jackson County or the State of Oregon. The business owneF must maintain a olty business Ineense and pay all tFans er.Gupanr.y tax on aer.Wdanrae with AMC 4.24 and AMC 6.04 aS FequiFed. Ordinance No. Page 11 of 15 aGt"on number assigned to the land use appMyah s GUffent business imeense and Tr-ansment ~lcoupaney TaX ctr-ati n ohibited and shall h.. ..44...74 and .l A.1Jf 7L.Transfer of business-ownership of a traveler's accommodation shall be subject to all requirements of this section and conform with the criteria of this section. Any further modifications beyond the existing approval shall be in conformance with all requirements of this section. C. Accessory Traveler's Accommodations. In addition to the standards in section 18.23.220.A, accessory traveler's accommodations shall meet all of the following requirements. 1. The operator of the accessory traveler's accommodation must be the property owner, and the property must serve as the property-owner's primary residence during operation of the accessory traveler's accommodation. This standard would prevent an individual or household that subleases a house as their primary residence from operating an accessory traveler's accommodation. A concern was raised that this standard is not fair, since some cannot enjoy the same rights of use from their primary residence because they lease on a long term basis, rather than own the property. 2. The property is limited to having one accessory traveler's accommodation unit, covered under a single reservation and consisting of two or fewer bedrooms, not including bathrooms. Kitchen cooking facilities are not permitted with an accessory traveler's accommodation, with the exception of kitchen cooking facilities for the primary residence. This standard would allow an accessory traveler's accommodation to consist of two or fewer rooms, under a single reservation. Separate kitchen cooking facilities are prohibited. This section would permit the use of a detached structure on the property as an accessory traveler's accommodation, as long as the structure did not contain kitchen cooking facilities. Consequently, should the property owner of an existing, approved accessory residential unit (ARU)desire to convert to an accessory traveler's accommodation, a new conditional use permit would need to be approved and all kitchen cooking facilities would need to be removed from the premises. 3. The total number of residents and quests occupying a dwelling unit with an accessory traveler's accommodation must not exceed the number allowed for a family. See definition of family in part 18-6. Chapter 18.6.1.030 of AMC provides the following definition for a family: Family. An individual or two or more persons related by blood, marriage, legal adoption, or guardianship, or not more than five persons who are not related by blood, marriage, legal adoption, or guardianship. Ordinance No. Page 12 of 15 4. The property must have two off-street parking spaces. 5. No signs shall be permitted in conjunction with the operation of an accessory traveler's accommodation. 6. A home occupation is prohibited with an accessory traveler's accommodation. This prohibition is intended to minimize impacts associated with a single family household by limiting the property to a single commercial use, either in the form of a home occupation or an accessory traveler's accommodation. 7. When accessory traveler's accommodations are approved, they require a review of the original land use approval within 24 months of the initial decision. The review requires renewal of the Conditional Use Permit under chapter 18.5.4. This step may be unnecessary because the original conditional use permit would be subject to the revocation process should the City receive complaints regarding the operation of an accessory traveler's accommodation. Should the property owner fail to comply with the conditions of approval from the original request, the property would be subject to compliance proceedings and possible revocation of conditional use permit. The current application fee for review of a previously approved conditional use permit (Type 1 procedure) is over $1000.00. _ Ordinance No. Page 13 of 15 SECTION 3. Chapter 18.6.1.030 [Definitions] of the Ashland Land Use Ordinance is hereby amended to read as follows: Accessory Traveler's Accommodation. Transient lodging in a residential zone where the property owner resides in a dwelling on its own lot and rents no more than two bedrooms, not including bathrooms, under a single reservation to overnight guests for a period of less than 30 consecutive days, as is rental of a dwelling, building, or any portion hereof on two or more occasions within a 30-day period. See also, definition of traveler's accommodation. Is this definition really needed? The intent of the definition is to clearly distinguish between the two types of traveler's accommodations and highlight requirements for owner occupancy and the limitation of a single accommodation under a single reservation. Hotel/Motel. A building or portion thereof designed and used for ocoupa;,ey Gf transient lodging +ndiv+dals in a non-residential zone for a period of less than 30 days, lodged with or without meals and which may include additional facilities and services, such as restaurants, meeting rooms, entertainment, personal services, and recreational facilities. (See QRS 446.310) Traveler's Accommodations. Transient lodging in a residential zone having a room, rooms or dwellings rented or kept for rent to travelers or transients for a charge or fee paid or to be paid for rental or use of such facilities for a period of less than 30 consecutive days, as is rental of a dwelling, building, or any portion hereof on two or more occasions within a 30-day period. See also, definition of accessory traveler's accommodation. Ifa new definition for "accessory traveler's accommodation" is recommended, then the wording suggested is intended to distinguish between the two types. Does having "rooms "plural create an issue if an accessory traveler's accommodation is limited to a "singular" room? SECTION 6. Savings. Notwithstanding this amendment/repeal, the City ordinances in existence at the time any criminal or civil enforcement actions were commenced, shall remain valid and in full force and effect for purposes of all cases filed or commenced during the times said ordinances(s) or portions thereof were operative. This section simply clarifies the existing situation that nothing in this Ordinance affects the validity of prosecutions commenced and continued under the laws in effect at the time the matters were originally filed. SECTION 7. Severability. The sections, subsections, paragraphs and clauses of this ordinance are severable. The invalidity of one section, subsection, paragraph, or clause shall not affect the validity of the remaining sections, subsections, paragraphs and clauses. Ordinance No. Page 14 of 15 SECTION 8. Codification. Provisions of this Ordinance shall be incorporated in the City Code and the word "ordinance" may be changed to "code", "article", "section", "chapter" or another word, and the sections of this Ordinance may be renumbered, or re-lettered, provided however that any Whereas clauses and boilerplate provisions (i.e. Sections 6-7) need not be codified and the City Recorder is authorized to correct any cross-references and any typographical errors. The foregoing ordinance was first read by title only in accordance with Article X, Section 2(C) of the City Charter on the day of , 2015, and duly PASSED and ADOPTED this day of , 2015. Barbara M. Christensen, City Recorder SIGNED and APPROVED this day of , 2015. John Stromberg, Mayor Reviewed as to form: David H. Lohman, City Attorney Ordinance No. Page 15 of 15 Regular City Council Meeting July 1, 2014 Page 4 of 10 changes for second reading. Councilor Marsh/Slattery m/s to the amend the motion Section 6.50.060 Permit Conditions (1) and keep the state standards convicted once in 5 years or twice ever. Roll Call Vote: Councilor Marsh, Morris, Slattery, and Rosenthal, YES. Motion passed. Councilor Marsh motioned to amend the motion and eliminate (K) under Section 6.50.060 Permit Conditions (K) and eliminate the first sentence in (L) regarding accounting in the books. Motion died for lack of a second. Roll Call Vote on amended motion: Councilor Slattery, Rosenthal, Marsh, and Morris, YES. Motion passed. NEW AND MISCELLANEOUS BUSINESS 1. Planning Commission's Report on considering a limited type of short term traveler's accommodation in residential zones Community Development Director Bill Molnar explained the Planning Commission and staff recommendation focused on primary elements of the zoning code and standards if Council decided to pass a limited form of short-term rentals (STR), and if it was desirable to have them. Planning Commission vice Chair Michael Dawkins further explained the Planning Commission looked for an accommodation type and rules. The Commission did not consider accessory units because they were potentially long term affordable rentals. They defined long-term rentals as a unit with a kitchen and did not recommend short-term rentals of an entire house. Another discussion was whether the rental was a Bed and Breakfast or a room in a house. They looked at specific one car per visit scenarios. Mr. Molnar added the Planning Commission recommended an owner occupied set up where the primary residence was on the property. Eligible locations were similar to traveler's accommodations in multifamily zones, on a property within 200-feet of a major street. One of the primary standards was having the accommodation within the footprint of an existing residence excluding out buildings. There was not clear consensus on maximum size or occupant number. The Commission recommended not allowing units with kitchen facilities to discourage converting an accessory unit within the building to a STR or an on sight space that had potential for a kitchen facility. The Commission suggested using a Conditional Use Permit (CUP) with a reduced fee since the STR was smaller than a Bed and Breakfast or multiuse accommodation. A Type I procedure involved a pre- application where a property owner submitted a conceptual idea to the Community Development Department that led to a meeting with staff. Neighbors within 200-feet of the property received a land use request to operate as a STR. Staff would send another notice regarding approval to the same residents that could subsequently initiate an appeal process. Dr. Ruth Resch/1000 Terra Avenue/Lived in an R-1 zone, was a handicapped senior citizen renting one bedroom in her house in order to retain her home. Her home was located a block and a half from Siskiyou Boulevard. The one bedroom she rented did not create congestion, cars parked in her driveway. It was important for the community to maintain economic community diversity so Ashland was not just home for the rich and people could maintain homes with small businesses like short-term rentals. Larry Chaser/1271 Munson Drive/Encouraged Council to allow host occupied STRs in all neighborhoods and provided examples of consistent use with small home businesses currently allowed in R-1 zones. Creating reasonable regulations to guide host occupied STRs, as a use already consistent with current use would maintain a suitable and sustainable R-1 housing environment. He urged Council to support sharing Regular City Council Meeting July 1, 2014 Page 5 of 10 economy and allow host occupied STRs. Ellen Campbell/120 Gresham/Ashland had a strong tourist industry and a local vibrant community due to zoning laws. Council needed to look for ways to broaden business base and not rely on tourism. Housing needed to be affordable and available to long-term residents not tourists. She encouraged Council not to move forward and change the ordinance. Allowing STRs in R-1 would be difficult to enforce. If STRs were allowed in the R-1 zone the requirements should be the same as R-2 and R-3 zones with a Conditional Use Permit, 200-foot buffer, owner occupied, no subletting, require user street fees, taxes, registered with the state, fire and county health inspections, water rates, and provide off street parking for each unit. Corinne Lombardi/1685 Old Hwy 99 South/Explained she was surprised the Planning Commission ordinance referenced all residential zones. The term sharing economy was just a name change. San Francisco had 5,000 Air B&B rentals and over 66% were not one bedroom as indicated but multiple bedrooms and entire units. A third of the owners had multiple units and managed it as a property manager. The Ashland Compliance Officer removed 95 people who were operating illegally in Ashland. Abby Hogge/1700 Parker StreetlDescribed the difference from renting to a long-term tenant to when she used her accessory unit as an STR_ She supported regulating STRs in R-1 zone and suggested Council conduct a one-year trial like the one the City did for Bed and Breakfasts in the 1970s. According to the City code enforcement division there were zero complaints regarding host occupied STRs. She encouraged Council to explore shared economy and facilitate peer-to-peer networking and commerce. Tom Dubois/690 South Mountain Avenue/Noted 20 years prior Council approved residents in all residential zones to operate businesses from homes. STRs owners were neighbors and friends. People staying at STRs were visitors to Ashland and welcome guests. Allowing hosted micro stays in the R-1 was a seamless, natural addition. He supported reasonable regulations for host occupied micro stays in R-1 zones. Melody Jones/79 Pine Street/Agreed with Ms. Hogge and Mr. Dubois and hoped the Council approved owner occupied STRs and did not exclude accessory dwelling units (ADU). Her ADU was 375 square feet and two small for someone to live in long term. She wanted to rent it short term during the summer and long term during winter. With owners receiving cease and desist letters there were fewer places for visitors to stay. The City would be able to collect TOT (Transient Occupancy Tax) and Food and Beverage Tax. Her property was more beautiful as an STR than it would be if she were not having guests. Laura Westerman/252 Timberlake Drive/Encouraged Council to pass the STR requirement. She had vacation rentals on her property with room to park six cars if needed. Her home was more beautiful now that it was an STR. She had her home as an STR for the past two years with no complaints from the neighbors. Councilor Rosenthal/Marsh m/s to direct staff to prepare an ordinance to consider this type of home occupation and traveler's accommodation in the R-1 zone. DISCUSSION: Councilor Marsh supported the motion, expected to vote yes on the ordinance when it came back and wanted background information. There were three critical questions. The first was whether STRs in R-I neighborhood provided tourists with positive and safe experiences. The second question was allowing STRs without undermining R-1 neighborhoods. The third question was if allowing STRs in R-1 could happen in a way that created a level playing field. She would limit STRs in R-1 to one bedroom, exclude accessory units, address the parking issue, and retain the same fee structure in the CUP. Councilor Morris would support the motion. His concern was impact to housing stock and rentals. He wanted the Planning Commission to look into parking and square footage instead of one bedroom. Councilor Slattery was not in favor of moving it forward or supporting visitor accommodations in R-1 zones. Overnight guests in neighborhoods changed the dynamic in that neighborhood. He was not comfortable allowing STRs in the entire R-1 zone even with a CUP. Regular City Council Meeting July 1, 2014 Page 6 of 10 Councilor Rosenthal withdrew motion with Councilor Marsh's consent. Councilor Rosenthal/Marsh m/s to direct staff to craft an ordinance to permit a single traveler accommodation in the R-1 zone. Councilor Marsh/Morris m/s to amend the motion to specifically exclude accessory residential units. Roll Call Vote: Councilor Marsh, Slattery, Morris, and Rosenthal, YES. Motion passed. Councilor Morris/Marsh m/s to amend the motion and require it is owner occupied. DISCUSSION: Councilor Morris clarified the owner needed to be present when the STR was rented. Roll Call Vote: Councilor Slattery, Marsh, Morris, and Rosenthal, YES. Motion passed. Continued Discussion on Main Motion: Councilor Marsh requested the Planning Commission provide specific guidance on the 200-foot limit and that staff provide information on enforcement. She also wanted the equivalent requirements imposed on lodging to apply to STRs. Councilor Morris wanted an evaluation of which R-1 may or may not work. Roll Call Vote on amended main motion: Councilor Marsh, Morris, and Rosenthal, YES; Councilor Slattery NO. Motion passed 3-1. _ORDINANCES, RESOLUTIONS AND CONTRACTS 1. Second reading by title only of an ordinance titled, "An ordinance amending 18.08, 18.32.025, 18.40.030, and 18.52.020 of the Ashland Municipal Code establishing medical marijuana dispensaries as a special permitted use in the Commercial (C-1), Employment (E-1) and Industrial (M-1) zoning districts" Planning Manager Maria Harris explained changes since first reading included adding dispensaries as a conditional use in the C-1 and E-1 zone if the location was at least 200-feet from a residential zones and not adjacent to a boulevard. Another change added dispensaries to the list of prohibited home occupations and the final change deleted language regarding hours of operation. Dave Helmich/468 Williamson Way/Asked Council to reconsider and amend the acceptable locations for medical marijuana dispensaries (MMD) and increase the buffer around residential property from 200 to 300 feet. He submitted a petition into the record not to allow significant business traffic on their narrow streets. A 1,000 square foot dispensary would bring 80-200 additional auto transits through their neighborhood daily. Council needed to protect their neighborhood from the impact traffic would have. Linda Stickle/492 Rogue Place/Expressed concern regarding the traffic impact on her neighborhood. Williamson Way was not designed to handle traffic and a dispensary could possibly generate several 100 trips daily. Increasing the buffer from 200 feet to 300 feet would solve the issue and have no affect on the current dispensary at Clear Creek. Mary Canfield/465 Williamson Way/During the last meeting Council discarded the Planning Commission recommendations. She asked Council to delay the vote until there was a full Council. Other neighborhoods in E-1 zones were just becoming aware of the impact MMDs would have on them, and they needed time to educate community. Ronda Barker/459 Williamson Way/Noted that during the last meeting, the Planning Commission recommended putting MMDs on the boulevards and she supported that recommendation. Then Council went a different direction and established the 200-foot buffer zone. A 200-foot buffer zone was too small to address Williamson Way concerns. She asked Council to adopt a 300-foot buffer zone and to delay a decision until all of Council was present. Community Development Director Bill Molnar explained dispensaries 200-feet or more from a residential CITY OF ASHLAND Planning Commission Report on Limited Short Term Accommodations in Residential Zones Potential Code Amendment: Amend the Land Use Ordinance to allow an owner-occupied residence to operate a single traveler's accommodation in a residential zone. The goal is to minimize impacts on neighborhood character and ensure the affects of the code amendments are not inconsistent with other currently permitted uses. The single traveler's accommodation use would be subject to the following types of standards and procedures: A. Use-Related Standards: 1. Management of the accommodation Property Owner Occupied - The individual operating and managing the traveler's accommodation must be the owner of the property and the residence on the property must serve as the property owner's "primary residence". The property cannot be sub-leased to another individual that operates the traveler's accommodation Commission Discussion: • The presence of the property owner living on site would greatly reduce the opportunity for adverse impacts to the neighborhood. 2. Location All Residential Zoninsz Districts - Under the proposed recommendations, this type of short term rental could be allowed in all Residential Zones Distance from a major street - The accommodation must be located on a property within 200 feet of a major city street. This would include a boulevard, avenue, or neighborhood collector. Commission Discussion: • Given the limited nature of the use, a single accommodation within an owner-occupied home, the code amendment could be applied to all residential zoning districts • Maintaining the "200-foot rule" would be consistent with the existing standard applied to traveler's accommodations in R2 and R3 zoned neighborhoods and establishes a level playing field. Planning Commission Report - Limited Short Term Rentals in Residential Zones 1 • While uncertain, the original rationale for the "200-foo t "standard seems to have been intended to minimize directing non-local traffic into the interior of existing neighborhoods by limiting traveler's accommodations to within a half block of city streets identified for carrying more traffic. • It is unclear that the rationale behind the standard is still valid and that the standard is still accomplishing what it was intended to achieve? • The adjacency between and connectivity of Ashland's neighborhoods makes it difficult at times to identify neighborhood areas that appear more interior than others. • Accommodations located in proximity to major city streets with a continuous public sidewalk system may provide an incentive for visitors to walk to their destination or public transit, especially when the accommodation is near the downtown or within a historic district • In the end, it is difficult to surmise that the standard is in fact protecting a more quiet residential character the further you get away from a major street. • On the other hand, it is not obvious that the standard is broken and that there exists a logical reason to change 'it. 3. Number, Size and Type of Accommodations per Property Number of Accommodations - One traveler accommodation (i.e. reservation) permitted per property. Accommodation Type - The single traveler accommodation could reflect A or B of the following accommodation types: A. A one bedroom or two bedroom suite located within the residence that uses the main entrance(s) of the residence to access the accommodation; B. A one bedroom or two bedroom suite within the foot print of an existing residence but accessed through a private, exterior entrance separate from main entrance; or Planning Commission Report - Limited Short Term Rentals in Residential Zones 2 C. A separate structure located on the property and detached from the primary residence of the property (not recommended by the Planning Commission due to the potential impact on longer term accessory residential unit (ARU) rentals). Maximum Size - Accommodation can consist of one or two-bedrooms, potentially with restrictions limiting total size and/or maximum number of occupants. Commission Discussion: • An owner-occupied property with a single accommodation within the footprint of the residence would be consistent with impacts associated with residential zoning districts, specifically single family districts • To reduce the potential for converting existing accessory residential units (i. e. ARU'5) from long term rentals to short term traveler's accommodations, it is recommended that detached buildings not be permitted for use as a traveler's accommodation. • The traveler's accommodation would need to be attached or located within the foo tprin t o f the primary residence, with visitors en tering from the residence's main entrance(s) or from a private, exterior entrance. • Consensus was not reached on whether or not the single traveler's accommodation unit should be limited in size or square footage, or restrictions placed on the number of bedrooms, or total number of occupants. • Additional restrictions seem arbitrary and difficult to enforce, while most negative impacts seem related to the number of cars and number of occupants It might be best to target those impacts • An argument could be made that greater specificity in the ordinance, through limitations on size and number of occupants and requiring a floor plan, could lead to more successful compliance. Restriction on Kitchen/CookinP Facilities - Kitchen cooking facilities would not be permitted in a limited short term accommodation. • Allowing kitchen cooking facilities within an individual, limited short term accommodation may encourage existing long term rentals and interior Planning Commission Report - Limited Short Term Rentals in Residential Zones 3 spaces suitable for long term rental use to be more readily converted to short term operations B. Potential Site Design Regulations 1. Parking Off-street Parking - There would be no additional off-street parking requirement. However, the property must have two off-street parking spaces available. Commission Discussion: • Given the limited nature of the use, no additional parking other than that which is already requisite for a single family residence would be required. This would discourage physical changes to the property and landscaping that ispotentially out of character with the neighborhood. 2. Signs Signs prohibited - Similar to Home Occupations, signs would not be permitted, however, except as allowed under the "Exempt" section of 18.96, which could limit the use to two, small incidental signs provided signs do not exceed two square feet in area per sign. Commission Discussion: • Additional signs would not be permitted, other than those already permitted under the "exempt" section of the sign code. C. Procedure for Approval 1. Land Use Application Type Conditional Use Permit (Type I Procedure) - The request to operate a single traveler's accommodation would require approval of a conditional use permit. Annual or Biennial Review - A process to periodically review the operations of a single traveler's accommodation could be established after the initial land use approval Commission Discussion: • The conditional use permit process would include public notice to the surrounding neighborhood, informing neighbors of the request and Planning Commission Report- Limited Short Term Rentals in Residential Zones 4 providing an opportunity to provide comments to the Planning Division prior to final approval. The Community Development Director's decision could be appealed to the Planning Commission. • The conditional use permit process establishes a level playing field with existing, multi-unit traveler's accommodations in multiple family zoning districts (i e. R-2,• R-3). • A biennial review after two years could be considered to allow city staff to confirm that the traveler's accommodation unit is being operated consistent with the land use approval. Planning Commission Report - Limited Short Term Rentals in Residential Zones 5 CITY OF -ASHLAND Council Communication March 17, 2015, Business Meeting Citizen Budget Committee Appointments FROM: Barbara Christensen, City Recorder, christeb@ashland.or.us SUMMARY There are currently two positions on the Citizen Budget Committee. One is a 4-year term ending of December 31, 2018 and one is a term ending December 31, 2015. BACKGROUND AND POLICY IMPLICATIONS: The annual appointment process for the Citizen Budget Committee produced only a limited number of applications for review and consideration. City council requested that the time period for accepting additional applications remain open in order to allow for more applications to be submitted for review and consideration. Attached are three applications from Pamela Lucas, Shaun Moran and William Gates for your review and consideration. Ballots will be provided for your voting preference. COUNCIL GOALS SUPPORTED: N/A FISCAL IMPLICATIONS: N/A STAFF RECOMMENDATION AND REQUESTED ACTION: None SUGGESTED MOTION: I move to appoint to the Citizen Budget Committee with term ending of December 31, 2018. I move to appoint to the Citizen Budget Committee with term ending of December 31, 2015. ATTACHMENTS: Applications Page I of 1 r`, CITY OF -ASH LAN D APPLICATION FOR APPOINTMENT TO CITY COMMISSION/COMMITTEE Please type or print answers to the following questions and submit to the City4 ocorder a 0 D City Hall, 20 E Main Street, or email christebn ashtand.ocus. If you have any questions,,, s please feel free to contact the City Recorder at 488-5307. Attach additional sheets if necessary. , Name Pamela P. Lucas Requesting to serve on: Citizens Budget Committee (Cotnmission/Committee) Address 420 Taylor Street Ashland, OR 97520 Occupation Retired Phone: Home 541-482-2081 Email Naminal1OW--maiLcom 1. Education Background What schools have you attended? Idaho State University What degrees do you hold? B.A., Business Administration/Accounting What additional training or education have you had that would apply to this position? I have taken several workshops presented by the Oregon Department of Education, to assist Business Managers with the budgeting process. 2. Related Experience What prior work experience have you had that would help you if you were appointed to this position? I am very familiar with fund accounting from having served as the Business Manager for both Tillamook School District #9 and Ashland School District #5, where I developed and administered their annual budgets. Additionally, I am familiar with the protocol of self-insured health insurance plans, as this was the model used at the Ashland School District and I was responsible for insurance and risk management. Do you feel it would be advantageous for you to have further training in this field, such as attending conferences or seminars? Why? Yes, some refresher work with local budget laws would be helpful since I have been several years away from them. 3. Interests Why are you applying for this position? Being retired, I have time to volunteer and would like to become more involved in the community. 4. Availability Are you available to attend special meetings, in addition to the regularly scheduled meetings? Do you prefer day or evening meetings? I can attend special meetings and would prefer day meetings. 5. Additional Information How long have you lived in this community? Ten years. Please use the space below to summarize any additional qualifications you have for this position Please see the attached personal resume, which will give a detailed profile of my education, experience, and skills. February 10, 2015 Croy / 06E~ A"~ Date Signature Pamela P. Lucas 420 Taylor Street Ashland, OR 97520 (541) 482-2081 EDUCATION: Bachelor of Business Administration, Accounting, Idaho State University, July 1990. Cumulative GPA: 3.814.0. EXPERIENCE: Business Manager, Ashland School District, Ashland Oregon, July 2005 to July 2008. • Assist and advise the Superintendent in: o Business and financial questions and issues. o Preparation and administration of the annual budget. o Negotiations, employee selection, terns of employment, wages and hours of all employees • Serve as Deputy Clerk and assisted the School Board with management of the district. • Responsible for insurance and risk management. • Plan, organize, direct, coordinate and control the financial affairs of the school district, through the supervision of the Business Office Staff, Supervisors or Directors in: o Handling and investment of funds, while acting as payroll and budget control officer. o Debt service and capital projects fund management. o Accounting and reporting procedures and protocols, compliant with GASH requirements. o Applications for and the compliant use of state and federal funds. o Student lunch program, including menu planning and purchasing. o Information technology program, including data processing and long range planning. o Negotiations, employee selection, terms of employment, wages and hours of all employees. o Purchasing of supplies, services, and equipment for district, using bidlquotation protocols. o Maintenance and operations of facilities and equipment, including transportation department. o Internal (and arrangements for external) auditing of school district accounts. Finance Director, Tillamook School District No. 9, July 2002 to June 2005. • Provided financial information and advice to the Superintendent and appropriate staff. • Supervised the financial clerical staff in the District's: o Personnel and accounting records. o Payables and receivables. o Purchasing and management of the District's supplies, equipment, and food service program. • Administered the District's insurance program. • Developed and administered the annual budget and prepare budget documents. o Prepared financial reports and monthly fiscal report to the Board of Education. • Maintained an accounting system consistent within state and federal laws, regulations, and District policy. o Responsible for developing and assuring internal financial control policies. o Supervise preparation of schedules for annual external audit. o Administer federal, state and local grants. • Administered $12,000,000 General Obligation Bond for renovation of school facilities, within the Oregon Purchasing and Contracting Statues • Met continuing disclosure requirements to financial markets on bonded debt of over $29,000,000. • Facilitated the District's compliance with new GASH reporting requirements. Accounting Analyst, Tillamook County Creamery Association, Tillamook Oregon, March 2000 to June 2002. • Developed and published monthly financial statistics reported to the Board of Directors. • Compiled data and developed annual departmental and plant budgets. • Evaluated operating results for production departments, and analyzed variances. • Verified and reconciled milk purchases and sales, valued at current market prices and correct utilization, for the $200 million dollar a year cheese company. • Prepared monthly entries to journalize to the General Ledger, and reconciled the GL accounts involved. Journalized and reconciled both operating and manufacturing supplies for the production departments of three manufacturing different operations. • Responsible for the project accounting of two large capital projects: o Automatic Storage and Retrieval System (ASKS robotic warehouse) for $23 Million dollars. o Satellite cheese plant construction and start-up, for more than $50 Million dollars. o Monitored invoice coding. o Maintained overall spreadsheets of costs. • Reconciled those to the GL and outside Project Engineers. • Allocated costs to individual assets created as projects segments were completed. Financial Coordinator, Martin Dental Center, Sunnyside, Washington, October 1993 to December 1996. • Managed accounts receivable, by preparing statements, posting payments, and collection functions. • Facilitated change from paper to a totally electronic system. • Created and maintained a database of patients, insurance carrier, procedure codes, and fee schedules. • Trained staff to use new system and software. • Electronically filed and tracked insurance claims. • Prepared reports and monitored allocation of payments to correct providers. • Provided customer service to patients as required. • Prepared payroll reports, as well as both state and federal payroll tax returns. • Maintained computer system by loading updates, new software, monitoring routine backup functions, and interfacing with outside MIS support. Staff Accountant, Sattler and White CPA's, Sunnyside, Washington, tax seasons of 1991 and 1992. Prepared individual and partnership federal income tax returns, and state and federal payroll tax returns. Performed general accounting functions. CITY OF ASHLAND APPLICATION FOR APPOINTMENT TO CITY COMMISSION/COMMITTEE Please type or print answers to the following questions and submit to the City Recorder at City Hall, 20 E Main Street, or email christebPashland.or us. If you have any questions, please feel free to contact the City Recorder at 488-5307. Attach additional sheets if necessary. Name 014 1 a'm L~ a~S Requesting to serve on: t i ~/2 Vl'JS -/6/Q (Commission/Committee) AddressZ~ / 5 0 Dy h 6( Occupation-FM r &W Phone: Home V 0 Work Email Gt5 y --r , / a plh al / coq Fax 1. Education Background What schools have you attended? c f C y6441 /6 What degrees do you hold? / 7 Cry C / C /S a 1 ~ What additional training or education have you had that would apply to this position? rte-) Air qr 2. Related Exuerience What prior work experience have you had that would help you if you were appointed to this position? /fig /r~ w c~ eve ut, 1,1441 _ _ C' e" Do you feel it would be advantageous for you to have further tramin in this f ld, s h as attending conferences or seminars? Why?/~ Pl~~ 164t'rI a %r e41 Misr anal e6 or h )h r" f 1^P~t~U> l rh e~, fs' ~l ~tri►, 3. Interests Why are you applying for this position? L fs a rP~S e., i i 29/1 aOAJ- d Rx•~ ~ ilPJr9 m orrf liev 4. Availability Are you available to attend special meetings, in addition tot the regularly scheduled meetings? Do you prefer days or evening meetings? v 5. Additional Information How long have you lived in this community. Please use the space below to summarize any additional qualifications you have for this position tts ~ ew lrG~ tom- r reN ~ S ~e ~a~ ✓ ~i rr~~ s ~ {'d% Date Signature IaIi1 CITY OF -ASHLAND APPLICATION FOR APPOINTMENT TO CITY COMM WON/COMMITTEE gY: Please type or print answers to the following questions and submit to the City Recorder at City (fall, 20 E Main Street, or email christeb(dashland.or.us. Ifyou have any questions, please feel free to contact the City Recorder at 488-5307. Attach additioeW sheets if necessary. Name Shaun Moran Requesting to serve on: Citizen motel c` nmitkuA (Commission/Committee) Address 615 Taylor Street Ashland, OR Occupation self employed phone: home 541-708-6067 Work Email Moran-chaUngDyaboo.corn Fax - 1. Edacatin Backmead What schools have you attended? Bates College (89' graduate). Edinburgh Unkws4 (88') What degrees do you hold? BA Political Science from Bates Cole What additional training or education have you had that would apply to this position? I woriced in nanm for over 15 years for rnaW investment banks in various management PUSNOW which fired ;Q-a-r'r•' n,/m-;napin7lianalYLn°brdaets for several di lerent nesse- L R~elat s ce What prior work experience have you had that world help you if you were appointed to this position? In my Last job I was responsible for managing over 40 people which demanded strong interpersonal skills. in addition I was a key contributor to the yearly $90-$100nt1 business bette line. 1 think Fny expedenoe both in man"ing people and ng the process of running a business could be a valuable help to the committee. Do you feel it would be advantageous for you to have further training in this field, such as attending conferences or seminars? Why? Yes, of course If the trairtirtg made sense and my schedule allowed I would be interested in attending WAS 3. Interests I have the skill set and time necessary to commit to this Why are you applying for this position? way to our great community, l am keenly aware how heavy the responsibility is for everyone on this committee and i would lira to be a Dart of tha pioce s 4. Availabil ty Are you available to attend special meetings, in addition to the regularly scheduled meetings? Do you prefer day or evening meetings? Yes 5. Additional Irformatim we moved to Ashland in early 2009 How long have you lived in this community? Please use the space below to summarize any additional qualifications you have for this position 2/1/2015 Date Vida, CITY OF -ASHLAND Council Communication March 17, 2015, Business Meeting Discussion of hanging flower basket program FROM: Dave Kanner, city administrator, dave.kanner@ashland.or.us SUMMARY At its February 17, 2015, meeting, the Council approved a proposal to hang flower baskets on 28 downtown light poles this summer. Councilor Voisin has requested a Council discussion of whether some of the baskets should contain "pollinator friendly" flowers. BACKGROUND AND POLICY IMPLICATIONS: The Council at its February 17, 2015, meeting approved a proposal to have Four Seasons Nursery of Central Point hang flower baskets on 28 downtown light poles and to water and maintain those flower baskets throughout the summer. The proposal from Four Seasons calls for cascading petunias in a variety of colors in each of the flower baskets. The cost of the program ($16,800), at least in this first year, will be shared by the City, the Chamber of Commerce and a private donor. At the March 3, 2015, Council meeting, a citizen, Kristina Lefever, spoke to the Council during public forum and encouraged the Council to consider using more pollinator friendly plants for the baskets instead of petunias, which are non-nectar producing flowers with non-viable pollen, and which therefore do not attract bees and other pollinators. Councilor Voisin subsequently requested a Council discussion of changing the hanging basket program to include pollinator-friendly hanging baskets. COUNCIL GOALS SUPPORTED: N/A FISCAL IMPLICATIONS: Four Seasons Nursery is willing to substitute four or five baskets of pollinator-friendly flowers for baskets of petunias at no additional charge. STAFF RECOMMENDATION AND REQUESTED ACTION: There is no requested action. Staff has questions as to whether it is prudent to attract bees to the downtown tourist area and would suggest soliciting input from downtown merchants - and especially downtown restaurateurs with outdoor seating - on that question. SUGGESTED MOTION: N/A ATTACHMENTS: None Page 1 of 1