07-06-2021 Council Packet - SpecialCITY OF
I Federal Way
Centered on Opportunity
CITY COUNCIL
SPECIAL MEETING AGENDA
Remote Meeting
July 6, 2021 — 5:00 p.m.
Notice: In -person meetings will begin July 12, 2021. Pursuant to Governor Inslee's Proclamation
20-28, this meeting is remote. The Mayor and Council encourage you use one of the following ways to
participate in the meeting:
• Watch the meeting live via Federal Way YouTube Channel
• Call in and listen to the live meeting: (888) 788-0099 or 253-215-8782
• Public Comment may be submitted via email here, or sign up to provide live comments here
• Zoom meeting code: 9990 122 4529 and passcode: 144325
1. CALL MEETING TO ORDER
2. PLEDGE OF ALLEGIANCE
3. STUDY SESSION
• Short-term Rentals — Planning Manager Keith Niven
4. PUBLIC COMMENT
Please email comments to COUNCIL(a)cityoffederalway.com or complete a citizen comment request form (found
here) prior to the meeting, to provide comments via telephone during the meeting. All comments are limited to 3
minutes each.
5. EXECUTIVE SESSION
• Property Acquisition Pursuant to RCW 42.30.110(1)(b)
6. ADJOURNMENT
Regular Meetings are recorded and televised live on Government Access Channel 21.
To view Council Meetings online please visit www.cityoffederalway.com.
COUNCIL MEETING DATE: July 6, 2021.... . . ........ ITEM #: . ..... ......... . . ................... . ......... . .3
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CITY OF FEDERAL WAY
CITY COUNCIL
AGENDA BILL
SUBJECT: SHORT TERM RENTALS BRIEFING
POLICY QUESTION: Does the City want to enact additional restrictions on Short -Term Rentals in the city?
COMMITTEE: N/A MEETING DATE: N/A
CATEGORY:
❑ Consent ❑ Ordinance ❑ Public Hearing
❑ City Council Business ❑ Resolution 0 Other
STAFF REPORT BY: Keith Niven, Planning Manager DEPT: Community Development
.................. ................. .... — _ - -- —................................................ ......... ...........
Attachment: 1. Staff Report
Options Considered:
1. Provide feedback to staff with direction and scope of short-term rental regulations.
2. Remand to LUTC Committee to provide additional discussion and direction.
3. Do not pursue additional short-term rental restrictions.
MAYOR'S RECOMMENDATION: N/A
■
MAYOR APPROVAL: 7 % ADIRECTOR APPROVAL: 2
Cnmmit r Cxnlncil Intitalli7atc
Initial/Date Initial/Date
COMMITTEE RECOMMENDATION: N/A
Committee Chair Committee Member Committee Member
PROPOSED COUNCIL MOTION: Informational Only — no Motion expected
(BELOW TO BE COMPLETED BY CITY CLERK'S OFFICE)
COUNCIL ACTION:
❑ APPROVED COUNCIL BILL #
❑ DENIED First reading
❑ TABLED/DEFERRED/NO ACTION Enactment reading
❑ MOVED TO SECOND READING (ordinances only) ORDINANCE #
REVISED - 11 /2020 RESOLUTION #
CITY OF FEDERAL WAY
Memorandum
Date: 28 June 2021
To: City Council
VIA: Jim Ferrell, Mayor
FROM: Brian Davis, Community Development Director
Keith Niven, AICP, CEcD, Planning Manager V
SUBJECT: Informational Briefing on Short Term Rentals
FINANCIAL IMPACTS
There are no known financial impacts at this point as this item is intended as an informational
presentation seeking Council perspective. Should the City Council desire staff to propose code
that would require new work plan items, the financial impact, if any, would be addressed under a
future Agenda Bill.
BACKGROUND INFORMATION
For the purpose of this memorandum, the term "Short -Term Rentals" shall include Airbnb,
FlipKey, HomeAway, Vrbo, and other internet-based short-term vacation rental platforms, as well
as private parties utilizing single-family or multi -family dwellings in the city for short-term rentals.
The Federal Way Revised Code (FWRC) Title 19 (Zoning and Development Code), does not
specifically address short-term rentals. In absence of specific code direction, in 2007, Community
Development issued an Interpretation (07-105266-00-UP) relating to allowing vacation rentals in
single-family residences in the city. That Interpretation stated:
A vacation rental residence shall be an allowable use in a single-family residential
zone based on meeting requirements related to maximum occupancy, number of
required parking spaces, and signage; availability of local property representative;
notification to homeowners' association; obtaining all required licenses; and having
weekly solid waste collection.
In 2019, the state passed legislation addressing short-term rentals (RCW 64.37). Definitions are
provided in RCW 64.37.010 clarifying:
1. It is not a hotel, motel, bed & breakfast, inn, or timeshare.
2. Applies to rentals of 30 consecutive nights or less.
3. Does not apply to owner -occupied dwellings where less than three rooms are
rented at any time
RCW 64.37 also provides for consumer safety (RCW 64.37.030) and liability insurance (RCW
64.37.050).
Although the city's code interpretation may have provided adequate direction 14 years ago (and
the recently -adopted state statute provides added clarity), the number of short-term rentals in
the city has increased and the City Council has asked staff to lead a policy discussion with the
City Council on this topic. This issue was briefly discussed at the 5 April 2021 Council Land Use
and Transportation Committee meeting. Staff also provided an informational briefing to the
Planning Commission on 19 May 2021.
There are many reasons the city may want to consider the adoption of code to better manage
the use of short-term rentals in the city. These reasons could include the following:
a. Collecting missed revenue
Lodging Tax
Permit License fees
III. Business License fees
IV. Fees for violations
b. Controlling nuisance Issues
I. Noise
II. Parking
III. Vandalism
c. Limiting community Impacts
I. Turn stable neighborhood into transient community
II. Property values
III. Remove potential affordable rentals from the community
IV. Impact to local hotels and bed & breakfasts
d. Protection of health and safety
Safe building/room egress
Working smoke/CO detectors
As the city contemplates the need for managing this activity, the degree of regulation could vary
from prohibition to taking no action except for monitoring.
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NEXT STEPS
Next steps will be determined by the conversation had at Council. If the Council desires
additional information, staff will work to compile that. If the Council desires staff to monitor the
number of Short -Term Rentals for a period, a monitoring and reporting system will be
developed. Or, should the Council desire additional regulations to be applied in the city, staff will
work on writing draft code and developing an implementation strategy. Any code revisions to
Title 19 would be reviewed by the Planning Commission before returning to the Council for
deliberation and decision.