Council sends short-term rental owner-occupancy definition back to Planning Commission and adopts new licensing fees

Council members reviewed proposed text amendments to zoning (Chapter 7) and short-term rental licensing (Chapter 8) and a companion fee resolution on Feb. 12. Staff recommended sending the ordinance back to the Planning Commission to review and recommend the newly added definition of "owner-occupied," which requires at least one owner to reside on the property as a primary residence for at least nine months of a 12‑month period.

Planning-related staff explained that the code changes align short-term rental regulations with accessory dwelling unit rules, move performance standards into the licensing section, and clarify that a license is required whether a bedroom or an entire dwelling unit is rented short term. Staff noted the town has a cap of 50 licenses and warned that license revocation could require a new license that might not be available if the cap is reached.

Council asked about the effect of the new definition on existing license holders; staff indicated that only certain ADU configurations would be affected and identified one known case where an existing license may be disqualified. Council then considered a separate resolution amending fees and charges to add an inspection fee, a reinspection fee if required, and to raise the new-license fee. Staff described inspection scope (life-safety items, performance standards, on-site contact information) and verification processes.

Motion to send the ordinance back to the Planning Commission for review of the owner-occupied definition and to approve the fee resolution was moved and approved; the fee schedule resolution passed unanimously on roll call.