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MINUTES OF THE ANNUAL JOINT MEETING OF THE TRINIDAD CITY COUNCIL,
PLANNING COMMISSION, AND SHORT-TERM RENTAL ADVISORY COMMITTEE TUESDAY, JANUARY 25, 2022 (ZOOM)
I. CALL TO ORDER
Mayor Ladwig called the Zoom virtual meeting to order at 6:00pm. Council members in attendance: Ladwig, West, and Kelly. Grover was absent. Planning Commissioners in attendance: Johnson, Stockness, Hakenen, and Hopkins. STR Advisory Committee members in attendance: Bruce, Stockness, Nash-Hunt, and Moran.
City Staff in attendance: City Manager Eli Naffah, City Clerk Gabriel Adams, City Planner Trever Parker.
Approximately (15) participants were present online at the beginning of the meeting.
II. PLEDGE OF ALLEGIANCE
III. APPROVAL OF THE AGENDA
Motion (West/Kelly) approve the agenda as submitted. Passed unanimously.
IV. STAFF REPORTS
City Manager Naffah explained that STR Permit renewal cycle is underway.
V. ITEMS FROM THE FLOOR - None
VI. CONSENT AGENDA – No consent items.
X. DISCUSSION/ACTION AGENDA ITEMS
1. Discussion/Presentation of the Annual Report of the STR Advisory Committee.
STR Advisory Chairman Dick Bruce explained that the following annual report presented was included in the meeting packet:
The Committee met 3 times in 2021 with the scheduled December meeting pushed out to January 4, 2022 due to holiday scheduling conflicts. It has been our usual practice to request a staff report for each of our meetings detailing any complaints (and their resolution) received by the City since our last meeting, along with any specifically requested information pertaining to STRs like license renewals or Planning Commission activities related to the STR Ordinance.
March 23, 2021- The Committee reviewed the staff report documenting that:
1. The Covid related STR rental moratorium was lifted on March 9, 2021 and that during the moratorium approximately 12-15 STRs were occupied by essential workers as allowed.
2. No complaints were received by the City from November 2020 to date through March 2021.
3. The license application/renewal cost tracking timesheets previously recommended by the Committee had been implemented by staff for the 2021 license renewals. The cost of each individual license renewal is now tracked to provide the City data on the fees necessary to cover staff support.
Additionally, staff implemented two more cost tracking timesheets to track any post licensing costs for each individual STR along with a timesheet to track general staff costs associated with maintaining the STR program.
At the November 17, 2020 Committee meeting the City Manager was asked to get an opinion from the City Attorney “regarding enforcement of the ordinance and who should be responsible for the collection of fines resulting from violations of the ordinance”, the occupant or the STR operator. At the March 2 meeting the City Manager reported back to the Committee that the attorney advised that “the STR operator is clearly responsible for fines/penalties of this nature. If the Ordinance is not drafted as such, it should be”. After a back and forth discussion, the Committee deferred to the Planning Commission to review this at their upcoming review of the Ordinance.
The Committee next discussed the Planning Commission’s upcoming review of the Ordinance. Commissioner Stockness reported that the review/revision of the Ordinance would be completed in 2021 and that the Planning 01-25-2022 CCPCSTR Meeting Page 2
Commission wanted more input from the Committee. After discussion the following motion was passed unanimously:
Each Committee member to review the ordinance individually and bring forth two-three items for discussion (at the next meeting).
June 29, 2021- The Committee reviewed a staff report prepared by the City Manager that reported:
1. The renewal process was complete and STR Contact Information identifying 28 STRs had been sent to all city residents.
2. No complaints received since the March STR Committee meeting.
3. The new cost tracking timesheets provided the following data:
1. Average processing cost per application $141.21. Overall cost for all applications $3,812.75.
2. General cost to the City for all STR activity not associated with individual STRs (May 2020- current) including City Clerk, Administrative Assistant and City Planner $3,184.26
3. Average cost per application post license issuance $0.00.
The Committee discussed the Planning Commission’s initial review of the STR Ordinance and the Committee’s role in the process and agreed with staff’s observations that most of the Committee’s previous recommendations can be handled administratively. It was also agreed that since the Planning Commission was now already in the review process (two meetings, May and June had already been held) that further review by the Committee would be a duplication of the Planning Commission’s efforts. Commissioner Stockness confirmed she would be advising the Planning Commission to discuss the addition of the collection of security deposits in the ordinance. No motions were brought forth.
October 5, 2021- The Committee reviewed a staff report documenting that:
1. No complaints received since the June STR Committee meeting.
2. After the City Council addresses changes to the STR Ordinance (proposed by the Planning Commission) in November, a lottery process will be held to fill any available STR licenses from the waitlist.
3. Despite the moratorium on STR rentals for most of the 3rd quarter of the fiscal year the TOT revenues received for FY 2020-21 should total approximately $134,000 versus the budgeted projection of $140,000.
In the prior fiscal year 2019-20, TOT revenues totaled $101,453 due to the moratorium on STR rentals covering most of the 4th quarter of that fiscal year.
The City Manager also reported that the TOT totals were for the fiscal year ended June 30, 2021 and that the new budget projection for fiscal year 2021-22 would again be $140,000 even though the actual amount collected could be more due to less covid related restrictions on rentals this year versus last.
The Committee discussed the status of the Planning Commission’s review and revision of the Ordinance.
Commissioner Stockness reported on the process and confirmed that the Commission had finished their revision and had made it available for the City Council to review back in August, but so far it had not gone to the Council.
The City Manager stated that due to other pressing City matters that the revised ordinance would not go to the Council until it’s November meeting. During the review process the Planning Commission received very little comment or input from the public, even though three meetings were held where the Ordinance revision was on the agenda.
One of the biggest issues discussed by the Committee has been complaints/fines and who is responsible for collection of fines. The revised ordinance addresses this along with several clarifications. The Committee was generally in favor of the revision as presented, particularly the inclusion of the Committee’s proposed definition of the “meet and greet”, but due to the absence of one committee member did not want to make a recommendation to the Council at this time. We invite comment to the Council from the Planning Commission on the process and the revised Ordinance.
January 4, 2022- The Committee reviewed a staff report documenting that:
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1. No complaints received since the October STR Committee meeting.
2. The City Council is waiting for a review by Coastal Commission staff before addressing the Planning Commission’s suggested revisions to the ordinance. Comments/suggested changes from Commission staff are expected in February or March, at which time the City Council will address the suggested revisions.
3. Annual license renewals for 2022 were in progress. 28 STR permit renewal packets were mailed out on November 10, 2021 with January 10, 2022 the deadline to return applications.
The Committee discussed a draft of the annual report to the City Council and requested chairman Bruce to add several additional comments to the draft.
Final Comments:
1. Although not perfect, the ordinance seems to be working. According to staff there were no formal complaints regarding STRs filed in 2021. Additionally, the STR Committee has had very little public input or participation in our quarterly meetings and we have not received any complaints during either items from the floor or public comment on agendized discussion items. This does not mean that there are not still occasional problems, but it appears to be an indication that at least in 2021 things have improved.
2. The Planning Commission reviewed and discussed the ordinance at 3 meetings and completed their suggested revision of the ordinance last August. The revision incorporates several of the Committee’s recommendations. It is somewhat disheartening, but at the same time understandable (due to more pressing matters like the water issue), that the Council has not yet acted on the revision. We strongly encourage the Council to move quickly on the ordinance revision once Coastal Commission staff returns their comments on the draft.
3. In the past, questions have been raised about how much the STR industry is costing the City. During 2021 staff implemented cost tracking measures (recommended by the Committee in 2020) to analyze costs associated with running the STR program. As discussed above in the City Manager’s June 29th Committee meeting staff report, the total cost to process the annual renewals was $3,812 and the general costs not specific to individual STRs was $3,184 for a grand total just under $7,000. As reported in the October 5th Committee meeting staff report, even though the summer of 2020 was year one of Covid, the TOT revenue received by the City for FY 2020-21 totalled approximately $134,000. As of January 10th 2022, staff reports that the revised TOT figure for fiscal year 2020-21 is $135,811 of which $19,393 is attributable to the B&B, making the amount generated by STRs $116,418. Looking at these numbers on a strictly financial basis there is definitely a financial benefit to the City from the STR industry, not to mention the economic benefits to the City’s business community from tourists staying in town.
4. The Committee has had several discussions about our future as a committee. We have been 1 “city resident” member short for over a year and no one has expressed an interest in filling that vacancy.
Although the current group is respectful of each other and works well together the vacancy means there is a 2 to 1 voting imbalance in favor of the STR industry representatives which is not the way the committee was designed to operate. Additionally, the Planning Commission has completed their revision of the ordinance and we are all waiting for first the Coastal Commission staff comments and then the City Council’s decision moving forward. At our recently completed January 4th meeting the consensus was to ask the City Council for direction. Unanimously we feel that there is currently no need to meet 4 times a year. We are not receiving public input at our meetings. There is presently not a lot more we can look at. Our recommendation is for us to meet twice a year (in June at the start of the tourist season and again in October or November at the end of the tourist season) to review any complaints or just act as a sounding board for the community. An annual joint meeting with the Council and Planning Commission would still be held if requested by the Council and any number of special committee meetings could be scheduled on an “as needed” basis as determined by either the Council or Staff. We request direction from the Council moving forward.
5. And lastly, we thank the Trinidad community, neighborhoods and residents for welcoming our daytime and city visitors and tourists.
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Questions from Council and Commissioners:
Richard Johnson – PC
Question regarding the cost of administering the STR program. What is included in the $3k + figure? City Manager Naffah explained that the cost reflects administrative staff plus City Planner and Building Official, confirming a total cost of just over $7k per year.
West – CC
Appreciate the hard work from everyone involved.
Stockness – PC/STR
Complimented Angela Zetter for doing an excellent job tracking costs.
2. Discussion/Presentation – Open Public Forum to Solicit Input from the Community, Council, and Commission on Issues or Successes related to the implementation of the Short-Term Rental Ordinance and Regulations.
Dwight Miller – Trinidad
Complimented the STR Committee and tone of Bruce’s report, and the industry members for running STR’s in a professional manner. They deserve the respect of the Council and the entire community. The Ordinance isn’t perfect, but it seems to be working. The Council should revise the ordinance per the Committee’s recommendations. Also important to note that the administrative costs were minimal. The TOT income is a significant portion of the City’s budget. Anyone wanting to restrict STR’s to only owner-occupied have a responsibility to suggest ways to fill the budget gap that would cause. Letters of concern from residents primarily reflect problems occurring prior to the ordinance. Those issues have disappeared. We now have a limit and strict controls on the business and the managers. The ordinance works.
Sherry Provolt – Trinidad
I would like to read the ordinance in detail.
Bryce Kenny – Trinidad
Submitted comments by email. STR numbers have been limited and resolve some fiscal problems, but they also impact the number of residents available to volunteer for public positions. Decreasing the number may help us keep the City run with more people to contribute.
Dick Bruce – STR
What’s the status of the lottery moratorium? Naffah explained that we’re waiting for the Coastal Commission to weigh in on the proposed ordinance changes. Planner Trever Parker noted that the Coastal Commission’s preliminary review was brief and favorable.
Adora King – Trinidad
I love this town. I appreciate all the Committee’s work. I’m bothered that the vacation rental business is profitable, but I hope the people that live here are listened to. Many houses are empty. My neighbors don’t live here. The houses are a mix of STR’s and second homes. Residents participating aren’t listened to. The Committee’s votes are one-sided.
Paula Levine – Trinidad Area
The town has changed over the decades. Businesses come and go. Does a person that owns a home in Trinidad have a right to use their property the way they want? There’s no perfect solution, but things seem to be working.
Written correspondence received, and included in the public comment record:
Maria Bartlett – Trinidad
Alan Grau – Trinidad
Kathleen Lake – Trinidad
Jacques BeauPre – Trinidad
Ladwig, CC: Shared a story of other tourist communities that developed policies to encourage full-time residency.
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Hakenen, PC: Consistent theme involving the complaint process. Closing the loop on the complaint process would be helpful. Notify the contact person and the City, so there is follow up. That may help.
Kelly, PC: Thanked the Committee and Planning Commission. Meeting less frequently seems reasonable.
Community outreach is needed to gain more participation. We haven’t received many complaints, but public comments written in advance of the meeting seems to indicate there are problems. We need to update our website with new software that encourages interaction. I’m sensitive to the economic and social benefits that vacation rentals create, but also the balancing and preserving quality of life for the full-time residents. I agree with Ladwig that there are other ways to solve these problems and I look forward to working on that.
Stockness, PC/STR: I get a lot of feedback from residents who report problems to the managers, they get resolved, but aren’t reported to the City. We need to clarify the property manager’s duty to follow through with the City.
Bruce, STR: It’s my recollection that the property manager is supposed to notify the City if they receive a complaint.
Johnson, PC: What does it mean when a complaint is filed? The expectation is that the manager handles it, but it’s a different thing if we expect that the complaint (minor or major) is filed.
Moran, STR: Complaints should go to the City, but there should be a distinction made between major and minor issues.
Hakenen, PC: Volunteer creating a complaint flow chart. Staff recognized that Commissioner Johnson created a flow chart in 2016, and will share it at the next discussion for consideration.
Kelly, PC: It’s my understanding that the revised Ordinance will now come before the City Council for review. It seems like a reasonable request to have the STR Committee meet twice per year, and request the complaint flow chart be discussed.
West, CC: For residents that feel threatened by submitting complaints, we need to encourage a safe environment to communicate with the City. I support keeping the annual meeting.
Stockness, PC: Put the STR Ordinance review at the top of your February meeting priority.
No decision was made. The City STR Ordinance will be on the February 08 meeting for Council review.
ADJOURNMENT: 7:50pm.
Submitted by: Approved by:
_____________________________ _____________________________ Gabriel Adams Steve Ladwig
Trinidad City Clerk Mayor