PORT ANGELES — Port Angeles city officials hope to pass an ordinance governing the use of short-term rentals before the summer tourist season, but proposed regulations have been met with skepticism and even scorn by members of the public and the city planning commission.
After a nearly five-hour meeting Wednesday evening, the Port Angeles Planning Commission declined to recommend one of the five proposed alternatives to regulate short-term rentals, or STRs, in the city and instead passed a motion recommending the Port Angeles City Council amend the city’s 2017 code and pursue a more comprehensive solution.
On Wednesday, the planning commission’s typically quiet meeting had city hall chambers packed with dozens of people and heard more than two hours of public comment, both in person and online. Dozens more written public comments were submitted.
Many of the commentators Wednesday identified themselves as STR operators and spoke in favor of limited or no regulations on STRs in the city. While there was support for the idea of regulating STRs in some way, most of the comments were critical of the alternatives and the city’s proposed fee schedule.
“These fees have no basis in reality,” said David Squires, who stated in public testimony that his Cherry Hill rental was currently closed and losing money.
Squires and many others said that the city had declined to enforce its 2017 regulations for several years until last June, when the council passed a moratorium on new rentals in some zones.
The 2017 code allows STRs in commercial zones and some residential zones, but not all. Following the moratorium, the city received several complaints against STRs and began issuing letters to the rental owners. The city’s code enforcement procedure is complaint-based, and the city does not actively seek out code violations.
Members of the planning commission also expressed frustration with the regulations and suggested the city begin the process over again.
“I haven’t seen any discussion of actual enforcement procedures,” said Planning Commissioner Chair Ben Stanley. “How are we going to enforce this and pay for that enforcement?”
Commissioner Maloree Smith said the 2017 code was poorly written and suggested STR regulations be done within the city’s comprehensive plan update for 2025.
The city has been trying to find a way to adequately regulate the use of short-term rentals — rentals for 30 days or less, typically through online platforms such as Airbnb or VRBO — following concern from the community about the proliferation of the rentals and their impact on housing availability.
Following several public feedback sessions and an online survey, city staff put forward five alternatives to the 2017 code with hopes the council will adopt regulations in late February or early March.
The five alternatives were meant to offer the widest range of regulations, said Deputy City Manager Calvin Goings, from unlimited STRs in all zones to a limited number of new STRs in each city zone.
The city is also proposing a licensing program and a series of annual fees and fines for rentals that violate the code. The proposed license fee for an STR where the owner lives on-site or operates for less than 90 days a year is $665 and the proposed fee for a full-time STR is $951. An annual fire and life-safety inspection will also be required under the alternatives at a cost of $560 if performed by the city or $380 if done by a qualified inspector.
The proposed alternatives also could include a provision to license existing STRs operating outside of permitted zones, charging $2,853 for the initial license fee.
Planning commissioners struggled to agree on what action to take and ultimately passed a motion recommending the council amend the 2017 code to allow for nonpermitted STRs to operate lawfully and find a more comprehensive solution.
The motion, which passed 5-1, with Commissioner Smith voting against it, asked the council to “amend the existing ordinance in such a manner that supports enforcement of the 2017 Port Angeles Municipal Code and provides a time-limited exception option for existing nonconforming short-term rentals; and pursue platform-based enforcement; and pursue a comprehensive assessment of an ideal short-term rental process.”
Speaking to Peninsula Daily News on Thursday, Goings said the public feedback given at the meeting was valuable and that city staff will bring revised recommendations before the city council at their Feb. 20 meeting.
“As the commission struggled with this issue, that is emblematic of this very complex item,” Goings said. “I think the challenge the commission felt last night is amplified and reflected in the broader community.”
Goings said the city was hoping to bring resolution to the STR issue and that including regulations in the 2025 comprehensive plan would push the matter out another 18 months. The city hopes to have a regulations passed in late February or early March, which hopes of having an online licensing platform active by July 1.
“We are trying to provide as much clarity and certainty as possible,” Going said. “The sooner this issue is acted upon by council, the better. Eighteen more months of study, debate and dialogue would seem counterproductive at this point.”
Goings said recommendations brought forward Wednesday will be incorporated into revisions brought to the council next month.
“We so value the hundreds of comments that have been made, the five hours of public comment,” Goings said. “It really is helping us improve the package, to narrow down the alternatives.”
The revised alternatives will be included in the meeting’s agenda packet, which are typically available online the Friday before the council’s next meeting.
Last year the city hired consulting firm GovOS Inc. for $40,000 to collect data about the number of rentals operating in the city.
The GovOS study found there were 234 STRs operating within city limits, both in permitted and unpermitted zones, making up about 3 percent of the city’s single-family and duplex housing units. The study also found those STRs paid an estimated $294,000 in annual lodging tax, paid to the State of Washington and transferred to the city.
Some studies have found STRs can impact the amount of long-term housing and increase rents. Many cities have struggled to find appropriate regulations that can balance both the need for local housing and the benefit STRs bring to the economy.
________
Reporter Peter Segall can be reached at peter.segall@peninsuladailynews.com.
