3. Request: Proposed Amendments to the Title 33, Zoning, Chapter 33.51, Vacation Rentals and Chapter 33.03, Definitions that address:

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1 Staff Report To The Clallam County Planning Commission Amending Chapter 33.51, Vacation Rentals To Include New Standards For Vacation Rentals And Bed And Breakfast Inns And Amend Chapter 33.03, Definitions, For Bed And Breakfast Inns and Bedroom Unit February 1, 2017 Prepared by the Clallam County Department of Community Development 223 East Fourth Street, Port Angeles, WA (360) A. Project Information 1. Applicant: Clallam County Department of Community Development 223 East Fourth Street Port Angeles, WA DCD Staff: Kevin LoPiccolo, Principal Planner Phone (360) Request: Proposed Amendments to the Title 33, Zoning, Chapter 33.51, Vacation Rentals and Chapter 33.03, Definitions that address: a. Proposed amendment to Chapter 33.51, Vacation Rentals, to include amending vacation rental standards and adding new bed and breakfast inn standards (Exhibit 1). b. Proposed definition changes to Chapter that includes modifying the existing definition of bed and breakfast inn and adding a new definition for bedroom unit (Exhibit 2). 4. State Environmental Policy Act (SEPA): Clallam County is the lead agency for this nonproject proposal has determined that it does not have a probable significant adverse impact on the environment. An environmental impact statement (EIS) is not required under RCW 43.21C.030 (2) (c). This decision was made after review of a completed environmental checklist and other information on file with the lead agency. This information is available to the public upon request. Clallam County Department of Community Development issued a Determination of Non-significance (DNS) on January 20, 2017, under SEPA Rules (Chapter WAC) and the Clallam County Environmental Policy Ordinance (Chapter CCC) for the proposed non-project action (Exhibit 3). 5. Notice: Notice of Public Hearing was published in the Peninsula Daily News on January 22, 2017 (Exhibit 4). 6. Agency Comments: The Notice of the Application was routed to: City of Port Angeles, City of Sequim, City of Forks, WA State Departments of Ecology, Department of Commerce, Lower Elwha S Klallam Tribe, Jamestown S Klallam Tribe on January 20, As of the date of this staff report, no comments have been received from agencies or interested parties. B. Analysis As discussed previously, the Board of County Commissioners adopted and extended interim zoning controls to limit building size of structures to 10,000 square feet in certain

2 rural zoning districts. Ordinance 911 (adopted on September 6, 2016) is effective for up to six months. The purpose of enacting these interim controls is to allow the Department to work with the Planning Commission to study the issue of impacts of building size and scale on rural character for otherwise permitted uses, to obtain public input, and to recommend proposed updates to development regulations. The Commission has discussed building scale and size issues in rural and residential areas. At this point, the Planning Commission has worked with the Department towards drafting new and amended building size and a number of other standards for Bed & Breakfast Inns (B&B) and vacation rentals of single-family homes. Building size standards for other permitted uses in rural areas outside of rural commercial have not yet been recommended. At the January 18, 2017 Planning Commission meeting, staff provided an overview of the previous discussions that took place related to drafting standards for vacation rentals and bed & breakfast use in a single-family dwelling. Staff also presented recommended zoning code amendments consisting of: Amending current zoning definition for B&B s. Adding a new zoning definition for bedroom units to clarify what constitutes a room for rent as that term is used in the amended B&B zoning definition. Amendments to Chapter 33.51, Vacation Rentals, to add a new section containing B&B development standards in addition to otherwise required by the respective zone. Added standards for vacation rentals related to maximum size, maximum number of rooms, when a conditional use permit required, and architectural requirements, and other standards similar to what being proposed for B&B s. At the January 18, 2017 meeting, staff requested that the Planning Commission discuss the following recommendations that the Planning Commission directed staff to incorporate as part of the development standards for vacation rentals and bed and breakfast inns at their December 21, 2016 meeting. The recommended changes that the Planning Commission requested were: Increase the maximum building size for vacation rentals and bed & breakfast inns from 10,000 square feet to 15,000 square feet through a conditional use permit. Allow a bed and breakfast to either be owner or manager occupied. Increase the maximum number of guest bedrooms for vacation rentals and bed & breakfast inns from 5 to 8 through a conditional use permit. Increase the number of guests for vacation rentals and bed & breakfast inns from 10 to 24 through a conditional use permit. Allow for the proportionality to be adjusted based on the number of guest bedrooms. Staff and the Planning Commission discussed the following development standards at the last meeting: 1. Increase the maximum building size for vacation rentals and bed & breakfast inns from 10,000 square feet to 15,000 square feet through a conditional use permit. The conditional use is required for all structures that exceed 4,000 square feet. Page 2

3 The Planning Commission supported County consideration of a maximum building size standard for B&B s and vacation rentals, and requiring a conditional use permit in noncommercial zones for such uses where larger than 4,000 square feet. The majority of the Commission supported to establish the maximum size at 10,000 square feet for noncommercial zones. The Planning Commission supported the maximum size of a single-family dwelling of 10,000 square feet for vacation rental and bed and breakfast use in that the rural zones are generally intended to provide and protect the rural areas from encroachment of commercial type uses. The Planning Commission found that the commercial zones that allow motels and bed and breakfast are the more appropriate zones for this type of use in that some of the commercial zones allow for larger structures to be constructed. The Planning Commission found that the proposed development standards for bed and breakfast and vacation rentals are intended to protect the rural character of residential neighborhoods, and that the County s comprehensive plan supports retaining rural character in rural lands and also neighborhood residential character in urban growth areas. 2. Allow a bed and breakfast to either be owner or manager occupied. The Planning Commission at their December 21, 2016 meeting requested that either a manager or owner operate the bed and breakfast inn. Staff agrees with this standard and has included this standard in the proposed draft ordinance, but recommends that the owner or manager reside in the single-family dwelling used as a bed a bed and breakfast. 3. Increase the maximum number of guest bedrooms for vacation rentals and bed & breakfast inns from 5 bedrooms to 8 bedrooms through a conditional use permit. The Planning Commission supported the increase of guest bedrooms from 5 guestrooms to 8 guestrooms at their December 21, 2016 and January 18, 2017 meetings. The Planning Commission felt that if an operator of a vacation rental or bed and breakfast inn would like to increase the number of guestrooms not to exceed 8 for their operation that a conditional use permit could address any impacts that may arise. The current standard by definition is five rooms for bed and breakfast inns, and there is no standard for number of rooms in a vacation rental. Staff has included this standard in the proposed draft ordinance. The policy issue is related to whether to increase the number of rooms that can be rented for a bed and breakfast use within a single-family home and to add an equivalent room rental limitation for vacation rentals. In urban and rural commercial zones, there are opportunities for more rooms to be rented for short-term transient uses where motels are an allowed or conditional use. To qualify for construction under the residential building code for single-family dwellings, the bed and breakfast type use would be limited to 5 or less guestrooms and owneroccupied. Where 3 to 5 bedrooms are rented, the dwelling must be sprinkled by a fire sprinkler system. The building code would require more stringent construction and fire protection standards based on boarding house/motel/hotel type occupancies where the structures short-term transient use would exceed 6 or more guestrooms. Page 3

4 4. Increase the number of guest/occupants for vacation rentals and bed & breakfast inns from 10 to 24 through a conditional use permit. At the January 18, 2017 Planning Commission meeting, staff requested that this requirement be struck from the proposed vacation rental and bed and breakfast standards. The building codes will determine construction standards based on occupancy and use. The Planning Commission agreed with deleting this from the proposed development standards for vacation rentals and bed and breakfast inns. 5. Total number of bedroom units dedicated to overnight guests shall not exceed 45% of the gross floor area of a single-family dwelling and not to exceed a total of 2,000 square feet. Based on the direction from the Planning Commission, the total number of bedrooms dedicated to overnight guests has been proposed to be increased from 5 guestrooms to a maximum of 8 guestrooms, with a conditional use permit. With the proposed increase of guestrooms not to exceed 8, staff adjusted the total of 2,000 square feet to 3,200 square feet in the proposed draft ordinance. The adjustment is proportional to the number of maximum guestrooms. Public Testimony At the December 21, 2016 and January 18, 2017 Planning Commission meetings, the Commission received written and oral comments on the proposed recommendations for vacation rentals and bed and breakfast development standards. To summarize the public testimony, the following were concerns that were raised and discussed. The Olympic Peninsula Bed and Breakfast Association, Washington Bed and Breakfast Guild, and several other business owners that operate bed and breakfast inns requested that the Planning Commission support the following: Increase the proposed maximum building size standard from 10,000 square feet to 15,000 square feet. Increase the number of guest bedrooms from 5 guest rooms to 8 guest rooms. Increase the maximum number of guest from 10 to 24. Supported owner or manager to occupy or be located on the property and felt that owner or manger could live in accessory dwelling unit. The testimony given by the industry was to prevent the county from over regulating a land use that promotes tourist with lodging options when visiting Clallam County. It was stated that there are already stringent State requirements to operate a bed and breakfast, and to add additional regulations that could perhaps hinder the business operation for vacation rentals and bed and breakfast uses within the county could be too onerous. The industry was supportive of being regulated, but emphasized to the Planning Commission to be reasonable in their approach when it came to their concerns. With the existing state and local building code requirements, the need to further regulate a bed and breakfast use is not necessary, especially if the structure size and number of guest bedrooms can be addressed and potential impacts mitigated through the conditional use permit process. Page 4

5 The testimony from area citizens, requested that the Planning Commission support the draft development standards prepared by staff at the December 21, 2017 meeting. The concerns that were raised and discussed were: Protect and preserve the rural characteristics of the county, and respect the intent of the zones that allow single-family dwellings. Limit the maximum building size to 10,000 square feet for vacation rentals and bed and breakfast use. Limit the number of guest bedrooms for rent to 5 guest rooms. Limit the number of guests to 10 for vacation rentals and bed and breakfast inns. Require owner of manager of such use to reside in the dwelling. The testimony provided by the area citizens regarding vacation rentals and bed and breakfast use within a single-family dwelling was supportive, but they requested that the Planning Commission take into consideration when evaluating the development standards to be aware of the building size limitations as it relates to other residences in the area and to be aware of the potential impacts associated with having too many guest occupying a dwelling at one time. The overriding concern was to make sure that any development standards protect existing neighborhoods from having new structures that would be completely out of scale with the existing homes in the area. The above is a summary of what staff heard at the last meeting(s) from testimony given regarding the proposed vacation rentals and bed and breakfast development standards. Staff has attached 11 letters that have been submitted (Exhibit 5) and has included the past two Planning Commission meeting minutes from December 21, 2016 and January 18, 2017 for the Planning Commission review (Exhibit 6). C. Zoning Code Amendment Clallam County Code, Chapter has identified three types of amendments. As proposed, Clallam County is initiating a text amendment to the ordinance that will allow for a new chapter for Vacation Rentals to the zoning ordinance. The proposed Amendment is the following type of amendment: Type B revisions to the development standards or other provisions of this title that do not require a change to the comprehensive plan, including the official comprehensive plan and zoning map, shall be considered a Type B amendment. Type B amendments include correcting errors, clarifying or revising development standards, and adopting new development standards that are consistent with and implement the comprehensive plan. Type B amendments may be initiated at any time and by only the Board of Clallam County Commissioners, Clallam County Planning Commission, or the Administrator. The Planning Commission shall hold at least one public hearing to review amendments. The hearing shall be noticed by publication in the newspaper of record of the County at least 10 days prior to the date of the hearing. The public notice shall include at a minimum: a description of the proposed amendment; the date, time, and place of the public hearing; and the location and hours where the public information files containing the proposed amendments can be viewed. If, for any reason, testimony on any matter set for public hearing, or being heard, cannot be completed on the date set for such hearing, the Planning Commission may, before adjournment or recess of such matters under consideration, Page 5

6 publicly announce the time and place of the continued hearing and no further notice is required. Clallam County may take other steps to notify the public, other jurisdictions, and agencies to amendments under review. Amendment Criteria of Approval When considering an application for an ordinance amendment, the Planning Commission and Board of County Commissioners are required to evaluate the amendment with regard to six criteria contained in CCC and CCC in the Comprehensive Plan/Zoning Code. These six criteria, or "Required Showing for an Amendment," provide the scope of consideration that the Planning Commission and Board must respond to in order to determine if the requested amendment should be approved. The following summarizes staff's preliminary analysis with regard to the required showing for amendment. 1. The proposed amendment is consistent with the spirit and intent of the Clallam County Comprehensive Plan, Title 31 (CCC (1) and CCC (1). The proposed ordinance amendment will amend standards for vacation rentals and bed and breakfasts operations. The Comprehensive Plan supports Bed and Breakfast Inns in the economic development policies of the code. The policy, CCC (g), reads: Support bed and breakfast inns associated with a single-family owner-occupied dwelling. Provide design and operational guidelines covering number of rooms, appearance, signage, parking, length of stay, and source of potable water and sewage disposal. The Comprehensive Plan notes that Bed and Breakfasts can be compatible in rural residential lands, but would require additional scrutiny to ensure compatibility, CCC (5). The proposed ordinance amendments address the following: Amendments to Chapter 33.51, Vacation Rentals, to add a new section containing bed and breakfast development standards in addition to otherwise required by the respective zone. Added standards for vacation rentals related to maximum size, maximum number of rooms, when a conditional use permit required, and architectural requirements, and other standards similar to what being proposed for bed and breakfast inns. Amending current zoning definition for bed and breakfast inns. Adding a new zoning definition for bedroom units to clarify what constitutes a room for rent as that term is used in the amended bed and breakfast zoning definition. The proposed development standards for vacation rentals and bed and breakfast inns will help address that any new construction or conversion of an existing vacation rental or bed and breakfast inn will in keeping with the surrounding properties and be consistent with the policies of the comprehensive plan. 2. The proposed amendment is consistent with the spirit and intent of the Zoning Code, Title 33, and with interlocal agreements, transportation, parks and recreation, capital facility, utility, watershed, and other applicable land use and environmental plans and policies adopted by the County (CCC (2) and CCC (2). Page 6

7 The proposed ordinance amendment will provide development standards for uses that are specific to the zoning code and prescribed requirements related to maximum building size, number of bedrooms, when a conditional use permit is required, and architectural requirements. 3. The proposed amendment will not be detrimental to the public health, safety and welfare (CCC (3) and CCC (3). The proposed ordinance amendment has been created to advocate public health, safety and welfare. The proposed ordinance will provide standards for a use occurring throughout the County and will insure the proper use and inspection of structures occupied by guests. 4. The proposed amendment is necessary due to changed conditions or circumstances from the time the property was given its present designation which warrants consideration of a of a different land use designation. This criterion only applies to Comprehensive Plan and zoning map amendments (CCC (4) and CCC (4). This criterion only applies to a comprehensive plan and zoning map amendment. 5. The proposed amendment will not result in probable significant adverse impacts to the adequacy of public facilities and services including, but not limited to, transportation, sewer, water, storm water, utilities, and parks required to meet urban or rural needs, and will not place uncompensated burdens upon existing and planned services (CCC (5) and CCC (5). The proposed ordinance amendment will not impact essential public services and facilities. 6. The cumulative effects of proposed amendments have been assessed and determined to be consistent with the spirit and intent of this title (CCC (6). The proposed ordinance amendments to Chapter 33.51, Vacation Rentals, will add a new section containing bed and breakfast and vacation rental development standards related to maximum building size, maximum number of guestrooms, when a conditional use permit is required, and architectural requirements. The proposed development standards are intended to help assure that any new or converted bed and breakfast inn or vacation rental is compatible with other single-family dwellings and to help minimize any potential impacts associated with such use. The proposed ordinance amendment is consistent with the spirit and intent of this title. Staff Recommendation Based on the above analysis, staff finds that the proposed ordinance amendments to Clallam County Code, Chapter 33 is supported by existing policies and recommends approval to the following: a. Proposed amendment to Chapter 33.51, Vacation Rentals, to include amending vacation rental standards and adding new bed and breakfast inn standards. b. Proposed definition changes to Chapter that includes modifying the existing definition of bed and breakfast inns and adding a new definition for bedroom unit. Page 7