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Short-term rental resolutions continued

Posted 8/4/22

The Gilpin County Commissioners continued a resolution for a ballot measure for a two-percent lodging tax on rentals as well as resolution regarding short-term rentals during a regular meeting

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Short-term rental resolutions continued

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The Gilpin County Commissioners continued a resolution for a ballot measure for a two-percent lodging tax on rentals as well as resolution regarding short-term rentals during a regular meeting starting at 9 a.m. on August 2, 2022, at the Courthouse and online. The Board also approved an ordinance on second reading concerning the Restriction of Open Fires, Fireworks, Public Displays of Fireworks, and Use of Combustible Devices and one addressing human trafficking by adding massage business regulations

County Attorney Brad Benning introduced a resolution for a lodging tax ballot question.

He said they went over this in depth at the last meeting but need the amount the County estimates it will receive, which will be $305,000 per year. Should Gilpin voters vote in favor of the lodging tax it will bring more funds to the County for tourism marketing, child care, housing, and other community projects to enhance the visitor experience. including but not limited to roads, signage, and trails. etc. Benning would like to bring this back in the first week of September.

“Once we submit the language for the ballot measure,” he said, “we are prohibited by law to provide information for the ballot issue. This gives us more time and will help us better set the stage. We have to do a question and answer, so we need more time.”

The Board agreed to table this until September 6.

Robert Gutierrez, Director of Community Development, introduced a resolution approving revision to Section 3.10 of the Zoning Regulations for short term rentals. He also introduced an ordinance on first reading for short-term rental regulations.

The Planning Commission has been working with staff to prepare revisions to Section 3.10 since March, 2022. The Commission held six meetings on the draft revisions over a four- month period. The Commission held a public hearing on June 14, and made a “do-pass” recommendation on the revisions.

Based on the regulations as certified by the Commission, staff members have drafted an ordinance for the regulation of short-term rentals to be passed concurrently with the text amendments to the Zoning Regulations.

On March 23, 2020, Governor Jared Polis signed House Bill 20-1093 which amended Colorado Revised Statutes to allow a Board of County Commissioners to adopt ordinances for the regulation and licensing of short-term rentals. Gilpin County then proceeded to adopt the County’s first regulations on short term rentals as text amendments to the zoning regulations on September 8, 2020. Gilpin County only pursued adopting regulation by resolution to amend the existing zoning regulations.

This is an important distinction, as the County does not currently have the full licensing and enforcement power that was granted. The standards of the inspection now incorporated in the regulations and modifications include smoke and carbon monoxide detectors.

In January 2022, the Community Development Department staff determined that about 75 percent of the building permit technician and code enforcement officer’s time was being spent working on applications and issues related to short-term rentals. Based on revenue collected from short-term rentals in 2021, staff calculated that only 21 percent of staffing costs were covered by permit revenue.

With a staff of only two people, it had become increasingly challenging for staff to keep up with the general workload of the department. To address this issue, the County Commissioners scheduled a work session on February 15, 2022, to discuss the issue of short-term rentals with the department.

During the work session, staff provided some insights into the recent growth of short-term rentals within the county. Thirty-four of the 187 homes sold in Gilpin County in 2021, or 18 percent of them, were turned into short-term rentals.

Of all short-term rentals applications received by the County up to February 2022, 51 percent were to non-residents and 49 percent were to residents. Staff members also observed that on average 10 percent of applicants for short-term rental permits were found to have a failing onsite wastewater treatment system.

During the regularly scheduled meeting of the Commissioners on the same day as the work session, eight individuals addressed the Commissioners during the public comment period about the issue of short-term rentals. Concerns were raised by the public on both sides of the issue.

The Board ultimately decided on March 1, 2022, to institute a moratorium based on data and concerns on the issuance of permits for short-term rentals and asked staff and the Planning Commission to work to develop updates to the existing short-term rental regulations to address the issues raised by both residents and staff.

Major changes include a two-year license. An inspection is required within 180 days of the application. They added waste water and a well permit, and it allows use of a cistern as long they have a water contract.

Commissioner Linda Isenhart said that the documents reflect many of the public comments the Commissioners have heard and the emails they have received. This reflects many concerns in the neighborhoods. Commissioner Sill suggested a $2,500 fee for out-of- county short-term rentals. That will have an effect on businesses that remain. Commissioner Sill said he would rather take a chance on a bad neighbor for a couple of months, than for seven years.

“Counties that surround us charge a lot more than that,” he said. “This does level the field, but it is overreaching. Keep it a rural county. It is rural life,” Sill said.

Chair Sandy Hollingsworth asked Sill if he supports higher fees and unlimited short-term rentals. Sill said he doesn’t want to put a limit on STRs. “I support a massive [fee] increase for out of county.”

Gutierrez asked if the Board wanted to rebalance the fee structure where it’s a little bit higher for non-residents and lower for residents. He suggested a cap of 5% of available housing. Hollingsworth said, “If we are going to allow 50 or 60 more short-term rentals, that’s a concern for me based on what we are hearing from residents about impacts in their neighborhoods”

Isenhart said they should keep the bottomlineinmindwitha5percent limit of available housing stock. Sill said 10 percent is the cap, and Hollingsworth said a 10 percent cap would raise the number allowed in the county.

Sill proposed making the non-resident rate higher. Commissioner Isenhart said prefers the 5 percent cap. They would have 165 STRs at 5% and a 10- percent cap would be 338 possible.

Hollingsworth preferred the 5 percent cap. Gutierrez said it would be really challenging if we would have had to enforce this over the past two months.

Gutierrez said he has heard a lot of comments from the public, so we went for two years. Residents didn’t want to apply every year, and the Commissioners liked two years.

The Board moved to continue the resolution and the ordinance to August 16.

Benning introduced an ordinance on second reading concerning the Restriction of Open Fires, Fireworks, Public Displays of Fireworks, and Use of Combustible Devices. He said they had an ordinance in the past as the basis for dealing with violations of fire restrictions, but they needed to recreate it. It allows the Board to delegate authority to the sheriff.

It would apply to any combustible gasoline engines, and chain saws with a spark arrestor. It can include recreational shooting because that could cause a spark.

Shooting restrictions can come into force with either Stage 1 or 2. This ordinance creates penalties for violating restrictions and enforces criminal and civil penalties.

Sill said “Climate change has nothing to do with it. It’s a political statement.” He wanted climate change removed from the ordinance. Sill lit his lighter. “You’re subject to a $1,000 fine if you have a lighter in the woods. This is a gigantic over reach. I don’t think it’s necessary. $5,000 would be almost nothing. I find it embarrassing.”

Hollingsworth said the resolutions would only apply to the forest service if the Sheriff determines it with other agencies. Isenhart moved to approve the ordinance, and the commissioners approved with Sill voting no.

The next meeting of the Gilpin County Board of Commissioners will be Tuesday, August 9, 2022, at 9 a.m. For more information, go to https://gilpincounty. colorado.gov/public-meetings/board-of- county-commissioners-bocc-meetings.