01-23-2024 CC/PC/STR Annual Meeting Minutes Page 1
MINUTES OF THE SPECIAL JOINT MEETING OF THE TRINIDAD CITY COUNCIL,
PLANNING COMMISSION, AND SHORT-TERM RENTAL ADVISORY COMMITTEE TUESDAY, JANUARY 23, 2024 (LIVE/HYBRID)
I. CALL TO ORDER
Mayor Kelly called the live-hybrid meeting to order at 6:00pm. Council members in attendance: Kelly, Tuttle, Ladwig, West, and Breckenridge. Planning Commissioners in attendance: Hakenen, Johnson, Hopkins, Slay, (Cole-Absent). STR Committee members in attendance: Stockness, Bruce, Moran, (Hunt-Absent). City Staff in attendance: City Manager Eli Naffah, City Clerk Gabriel Adams, Administrative Assistant Anton Souza, and Project Manager Jennifer Hakenen. Approximately (3) participants were present by video-conference, and (4) were present live at the beginning of the meeting.
II. PLEDGE OF ALLEGIANCE
III. APPROVAL OF THE AGENDA
Motion (Ladwig/West) to approve the agenda as amended, removing Discussion 1 at the request of the Trinidad Rancheria. Passed unanimously.
IV. ITEMS FROM THE FLOOR
(Three (3) minute limit per Speaker unless Council approves request for extended time.) V. CONSENT AGENDA - None
VI. DISCUSSION/ACTION AGENDA ITEMS
1. Discussion/Presentation of the Annual Report from the STR Advisory Committee.
STR Committee Chair Dick Bruce presented the following Annual Report:
Trinidad licenses and regulates STRs. In 2016 the City approved an ordinance which attempted to address citizen concerns over the proliferation of unregulated STRs while fulfilling State mandates to provide visitor services and accommodations in the Coastal Zone. In 2022 the Coastal Commission approved the City’s revised and updated STR Ordinance which further addressed citizen concerns. The City’s municipal code defines a Short-Term Rental as “a rental of any dwelling, in whole or part, within the City of Trinidad, to any person(s) for transient use, other than (1) a permitted bed and breakfast, (2) ongoing month to month tenancy granted to the same renter for the same dwelling, (3) one less-than-30-day rental per year, or (4) a house exchange for which there is no payment”.
The Committee held 2 meetings in 2023:
January 23, 2023 - Joint Meeting with the City Council and Planning Commission The Committee presented their Annual Report and there was a general discussion on the operation of the STR program. The Committee recommended that the Council authorize a survey of City residents regarding the operation of the STR program and how it was currently (not historically) affecting them, and provided suggestions on how the survey could be structured. The Council agreed that a survey was a good idea and that a survey might also include questions regarding other City operations and issues. Although the Minutes of that meeting do not indicate that any motion was passed, it was generally understood that the City would move forward with a survey.
October 16, 2023 - A staff report was presented that reported:
1. The 2024 license renewal process is being streamlined and renewal packets will go out electronically unless a paper packet is requested.
2. The City has not received any formal complaints in 2023 related to the STR program.
3. Tourist Occupancy Tax for fiscal year 2022-23 was $164,771 vs $150,685 in 2021-22.
4. The voter approved Tourist Occupancy Tax rate increase from 8% to 12% took effect on April 1, 2023 and the City worked co-operatively with STR operators and managers to implement the increase.
5. The City plans to do a general survey of residents that includes questions about the STR program as previously recommended by the STR Committee.
6. Staff implemented a streamlined STR cost tracking system for 2023 licensing and discovered that the cost of issuing a new permit is approximately $800 versus the current fee of $300. 01-23-2024 CC/PC/STR Annual Meeting Minutes Page 2
Following the staff report the Committee passed the following motion:
“That the City implement a two-tier rate for issuing STR permits. One rate for new STR applications (to be determined by staff) and one for renewals and include a cost recovery feature for both.” Council/Commissioner comments included:
Kelly: Community survey will be going out in a few weeks and questions related to STR’s will be included.
Bruce: Cost recovery analysis was performed last year and the cost per permit averaged $800. The City should consider developing a new system to determine initial permit cost, compared with the flat rate for renewal permits.
Hakenen: Asked how the T.O.T. revenue factors into the cost recovery of STR permitting. Program directive should be revenue neutrality.
City Mananger Naffah explained that occupancy taxes are not intended to cover permit issuance.
Stockness: Renewal permit cost should be raised to at least $400.
Moran: Permit fee should recover the cost of issuance.
Slay: $800 was just a sample size of 2 recent permits issued. Does this reflect the larger sample size average? The website should also be a place to host STR documents and complaints.
Tuttle: Questioned the fairness of the STR Lottery system.
Ladwig: Asked Planning Commission to come up with alternatives to the current lottery system adopted. Would like to see some recommendations and make a decision.
City Planner Parker recommended adding this to bi-annual STR Ordinance review.
No public comment.
2. Discussion/Presentation – Open Public Forum to Solicit Input from the Community on Issues or Successes Committee Chair Bruce explained that unfortunately, and just as in 2022, no one from the public either attended the meeting or submitted written public comment on this item. As noted in the staff report, no formal complaints regarding STRs had been received year to date in 2023. Committee members generally agreed that the lack of complaints seemed to indicate that the ordinance appeared to be working better than in years past, although one Committee member indicated that they occasionally receive anecdotal verbal complaints about minor STR issues. It is hoped that more feedback will be obtained when the City completes the planned survey.
No public comment.
3. Related to the Implementation of the Short-Term Rental Ordinance Regulations.
4. Discussion/Decision regarding Committee Recommendations and Direction Moving Forward.
STR Chair Bruce explained that the operation of the STR program has improved since the Committee was formed in 2019. There have been no formal complaints filed with the City in the last 3 years. The Committee is receiving virtually no input from the public regarding STRs and the “Public Forum” at our October 16, 2023 meeting received neither written nor in person comments or suggestions.
Staff has streamlined the administrative part of the program and STR representatives report that the annual renewal process is working well. The Committee again requests direction from the Council moving forward.
Council/Commissioner comments included:
Moran: Recommend the committee be rested. Problems have been resolved, and the committee’s purpose was served.
01-23-2024 CC/PC/STR Annual Meeting Minutes Page 3
Stockness: Suggest waiting for the survey results before deciding to rest this committee.
Slay: The PC has a full agenda, and STR Committee relieves a small part of the burden placed on the PC with recommendations, discussion topics, etc.
Bruce: The Committee was established to put out fires. The City is on the right track now, and I would support a “half-time”. If the City wants to meet periodically for a specific purpose, that’s reasonable. If the complaints aren’t coming in, then perhaps the Committee should retire.
Motion (West/Ladwig) to suspend the STR Advisory Committee until further notice. Passed unanimously.
5. Discussion/Recommendation regarding a draft ADU Ordinance and whether any type of STR should be allowed in either an ADU or the primary unit.
City Planner Trever Parker explained that under state law, ADUs meeting certain standards are not allowed to be STRs, and for other ADUs, a local jurisdiction may prohibit them from being STRs. I have lumped all of these standard ADUs together in order to simplify the ordinance. Therefore, Coastal Commission staff feel that ADUs must be prohibited from being full-time STRs. In addition, there are several examples of ADU regulations in LCPs that prohibit both the ADU and primary unit from being STRs (including Humboldt County). And some Coastal Commissioners have pushed for that, but not all; staff opinions vary on this issue. There is also the option to allow ADUs (and/or primary units) to be STRs only with approval of a use permit, which is the same as for ADUs that don’t meet all the
standard requirements.
In addition, Trinidad has allowances for Homeshare and Resident STRs. Homeshare STRs are where the resident rents out a bedroom in their home while they are home. Resident STRs are where someone lives in their home most of the year but can rent the entire house for up to 60 days while they are gone. Except that ADUs should not be rented as Full-time STRs based on state law, Coastal Commission staff did not have a consensus about whether to allow other types of STRs should be allowed. However, ADU Ordinance Agenda Report January 23, 2024 STR/CC/PC Meeting they anticipate that some Coastal Commissioners will have strong opinions. So, we want to get direction from the community. It can be argued that with Trinidad’s caps on STRs, housing is already protected, and new ADUs would not result in additional STRs. In addition, Resident and Homeshare STRs could increase affordability of housing in Trinidad for residents and encourage the creation of ADUs.
In summary, the following questions in relation to ADUs and STRs should be considered:
1. Should the primary unit be allowed to be a Full-time STR?
2. Should Full-time STRs be allowed in an ADU subject to approval of a use permit?
3. Should Homeshare or Resident STRs be allowed in ADUs and/or the primary unit, and if so, with or without a use permit?
Council/Commissioner comments included:
Moran: The County is looking at Trinidad’s ordinance for guidance. Trinidad should look to the County for ADU advice. The County does not allow new ADU’s to be used as STR’s.
Stockness: No more than 1 STR per property.
Bruce: The ADU regulations are designed to make long-term housing available. Kelly agreed.
Breckenridge: How can the City define or require “affordable” housing? Support ADU’s being used as STR.
City Planner Parker noted that septic systems will ultimately limit ADU possibilities.
Hakenen: We also have to consider that having an ADU on the property operating as an STR could make owning a home in Trinidad affordable for someone that may not have the ability to do so. Tuttle agreed.
Tuttle: Can we condition an ADU be constructed with low-flow water conserving fixtures? Recommend ADU’s be for long-term tenants only.
01-23-2024 CC/PC/STR Annual Meeting Minutes Page 4
Ladwig: The STR Ordinance stands on its own. Encouraging ADU’s meets State law and objectives.
Kelly: Support new ADU’s as long-term only. West agreed.
Public comment included:
Jonna Kitchen – Trinidad Resident and Trinidad Retreats Owner I prefer basing caps on housing stock percentages, not ADU’s.
By a straw vote of 3 yes, 2 no, the majority of the Council favored ADU’s being restricted to long-term tenants only. It was also agreed that the discussion would be continued to a future meeting to allow more public comment and Council discussion. Results of the future discussion will be forwarded to the Planning Commission.
FUTURE AGENDA ITEMS - None
ADJOURNMENT: 8:30pm.
Submitted by: Approved by:
_____________________________ _____________________________ Gabriel Adams Cheryl Kelly
Trinidad City Clerk Mayor