HomeMy WebLinkAbout1-09-23 Special Study Session Agenda PacketSPECIAL STUDY SESSION AGENDA
CITY COUNCIL
CITY OF WHEAT RIDGE, COLORADO 7500 W. 29th Ave. Wheat Ridge CO January 9, 2023
To commence at the conclusion of the Regular City Council Meeting
This meeting will be conducted as a virtual meeting, and in person, at 7500 West 29th Avenue, Municipal Building, if allowed to meet on that date per COVID-19 restrictions. Some members of the City Council or City staff will be physically present at the Municipal building for this meeting. The public may participate in these ways:
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January 9, 2023).
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Public Comment on Agenda Items
1. Short-Term Rental Lodgers’ Tax 2. Drive-by shooting incidents in Wheat Ridge
3. Staff Report(s)
4. Elected Officials’ Report(s)
ADJOURNMENT
Memorandum
TO: Mayor and City Council
THRU: Patrick Goff, City Manager FROM: Allison Scheck, Deputy City Manager DATE: January 9, 2023
SUBJECT: Short-Term Rental Lodgers’ Tax ISSUE: Short-term rentals (STRs) are defined as dwelling units or portions thereof used for lodging accommodations for transient occupancy, for compensation, for a period of less than thirty consecutive days. STRs are subject to the City’s 10% lodgers’ tax, in lieu of sales tax.
At the Council Study Session on May 2, 2022, Council discussed the possible reduction of the STR lodgers’ tax. At that meeting, Council agreed to retain the current 10% lodgers’ tax rate for STRs, and dedicate the STR portion of the General Fund lodgers’ tax rate (5%) to housing and/or
homelessness purposes and to further refine the purpose at a later date.
PRIOR ACTION: Effective January 1, 1986, the City has collected 5% lodgers’ tax on the rental or furnishing of accommodations for periods less than 30 days. At the 1998 election, Wheat Ridge voters increased the lodgers’ tax to 10% with the incremental revenue dedicated to improving infrastructure and
increasing crime prevention resources in areas throughout the City but specifically in the motel
district of I-70 and Kipling. In February 2021, Council passed ordinance 1709, enacting a licensing program for STRs and making conforming amendments to the City’s tax and zoning code. STRs, by definition, are covered
under “Lodging Services.” STRs began obtaining licenses in May 2021 and remitting lodgers’ tax in
August 2021. On May 2, 2022, Council discussed a possible reduction in the STR portion of lodgers’ taxes and
were presented with three options for consideration:
1. Retain the 10% lodgers’ tax for STRs and restrict funds through the budget or administrative process for the desired purpose
2. Reduce the STR portion of lodgers’ tax by ordinance 3. Adopt an ordinance approving the reduction of the STR portion of lodgers’ tax by approval of a referred measure to the electorate.
Ultimately, the Council provided consensus to “support option number one – to retain the current
lodgers’ tax for STRs but designate the STR portion for housing and homeless purposes, and to come back for a second study session to refine the purpose.”
Staff Report: Short-Term Rental Lodgers’ Tax January 9, 2023
Page 2
FINANCIAL IMPACT: Lodgers’ tax revenues are split among the General Fund, Crime Prevention Fund and Capital Improvement Program Fund. As mentioned earlier, the incremental 5% lodgers’ tax revenue, as
passed by voters at the 1998 election, is dedicated to increased crime prevention activities (30% of
total revenues) and infrastructure improvements (20% of total revenues) and cannot be used for other
purposes. Therefore, only the portion of STR revenues from the General Fund are considered unrestricted and can be appropriated by City Council at their discretion. The following table lists lodgers’ tax revenues by year and by fund beginning with 2019.
Fund Percentage of total 2019 2020 2021 2022 (estimate)
General Fund 50% $ 756,359 $ 426,294 $ 744,243 $ 1,000,000 Crime Prevention Fund 30% $ 453,815 $ 254,341 $ 405,602 $ 600,000
Capital Improvement
Program Fund
20% $ 302,544 $ 169,561 $ 270,435 $ 400,000
Total 100% $1,512,718 $ 850,196 $1,420,280 $2,000,000
The City began collecting lodgers’ taxes on STRs on August 1, 2021, and in 2021, the City’s
General Fund STR earnings were $42,013. Based on the first 15 months of tax collections, the City
estimates the General Fund portion of lodgers’ tax revenues from STRs to be approximately $375,000 per year. Assuming this amount for 2022, the City will begin 2023 with approximately $417,000 restricted for housing and homeless purposes.
DISCUSSION:
The City has been successful in building capacity and funding around support for homeless
residents. Currently, the City has two full time employees dedicated to homelessness and housing navigation and an operating supplies budget funded by the American Rescue Plan Act through 2026. Additionally, the City has committed $500,000 of ARPA funds to a partnership with Family Tree for services to assist residents using hotels for housing transition to permanent housing. Finally, the City
is committed to the creation of two navigation centers through a regional partnership with other
entities in Jefferson County. For this reason, staff recommends the General Fund portion of STR lodgers’ taxes be used more specifically for housing purposes.
On December 5, 2022, Council reviewed the Affordable Housing Strategy and Action Plan and
provided consensus to move forward with Plan adoption. The Plan identifies the creation and utilization of the Wheat Ridge Housing Fund (WRHF) so that future projects identified in the Plan have available funding. As an early implementation step of the plan, staff recommends that Council agree to place all past
and future General Fund STR lodgers’ tax revenues into a newly created City special revenue
funded, entitled WRHF, as an ongoing revenue stream. The WRHF will attract other revenues as they are identified, such as grants and other one-time infusions. Placing the General Fund portion of STR taxes in the WRHF provides a stable and ongoing revenue stream.
The Plan recommends that at minimum, the “WRHF be set up to provide funding for the Naturally
Occurring Affordable Housing Preservation Program” whereby the City provides grant funding to private rental property owners to upgrade properties while keeping rents affordable for renter
Staff Report: Short-Term Rental Lodgers’ Tax January 9, 2023
Page 3
households. Additionally, the WRHF could be used for other types of public subsidies to realize affordable housing opportunities.
The WRHF could also be used to provide direct assistance to households in jeopardy of becoming
unhoused. Similar to the Metro Mayors Caucus and Metro Denver Homeless Initiative FLEX Fund,
the WRHF could provide assistance in the form of move-in costs like security or utility deposits, and landlord mitigation. The Affordable Housing Strategy and Action Plan recommends creation of the WRHF as a first-
priority action item. Should Council consent to establishing the fund and to placing the General Fund
portion of past and future STR lodgers’ taxes in the fund for future use, then Staff will need additional time to fully develop a plan for the WRHF. This sequencing is anticipated in the Affordable Housing Strategy where second-priority action items include hiring a staff person and
developing housing-related programs. If the WRHF is established now, future considerations will
include:
• Staff capacity to develop eligible programs of the WRHF
• The entity responsible for overseeing the WRHF’s funds and programs
• Consultant support to establish the WRHF programs and management structure NEXT STEPS:
Staff is requesting direction from Council on the creation of the WRHF and the placement of past
and future General Fund STR lodgers’ taxes in the fund for future use. ATTACHMENTS:
1. Affordable Housing Strategy and Action Plan Prioritizing for Progress Sequencing
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PRIORITY LEVEL 1
Action Items: Prioritizing for Progress
Realizing Wheat Ridge’s key housing opportunities requires a series of actions, but not all action items will have the same level of impact, and some may be achievable sooner while others will take more time. The combination of these factors helps to establish a logical prioritization of action items. The following pages describe, at a summary level, the recommended action items. More detailed information for each can be found starting on page 50. The proposed timing of action items is tentative and subject to change based on events.
PART 3 Taking Action
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Revise Zoning
Framework for
Community Benefit
Wheat Ridge
Housing Fund
Housing-
Supportive Code
Amendments
Continue
Lutheran Legacy
Implementation
Efforts
Housing Staff Comprehensive
Plan Update
Naturally Occurring
Affordable
Housing (NOAH)
Preservation
Program
A program to make grants from the Wheat Ridge Housing Fund to rental property owners to upgrade aging rental units in exchange for affordable rents.
Update Development Code
and Zoning Map
Exploration of
Changes to Charter
Limits on Height and
Density
Update
Affordable
Housing Strategy
and Action Plan
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Require all projects in mixed-use districts to EITHER produce mixed-use or inclusionary affordable housing, and establish a new R-4 district with inclusionary requirements.
A dedicated fund to receive, hold, and deploy financial resources specifically in support of affordable housing activities.
Amend the City’s code to support affordable housing development in areas such as: process, fees, parking minimums, “no net loss,” etc.
Continue preparing for the eventual Lutheran redevelopment and set clear expectations.
A staff person dedicated to housing program management.
Use the comprehensive plan process to reaffirm community support for affordable housing goals and establish community’s vision for growth and development.
Following the update to the comprehensive plan, update the City’s code and zoning map to reflect the plan.The community-wide discussion of whether, where, and how to accommodate new housing is best suited for the comprehensive plan where public engagement will play an important role.
Following the update to the comprehensive plan, establish a commission to study the possibility of amending the City Charter’s current limits on height and density in order to make a recommendation for a potential ballot question.
Update this document to respond to new conditions and events.
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• Strengthen Requirement for Mixed-Use or Inclusionary Affordable Housing in Mixed-Use Districts
• Create a New R-4 Residential District
• Establish Fund
• Identify Initial One-Time Sources
• Identify Recurring Sources
• Develop Funding Guidelines
• Ordinance • Complete Evaluation of Potential Urban Renewal
• Consider Exemption for Charter Limits
• Negotiations and Plans
•Job Description
•Recruitment
•Evaluation of Need for Additional Staff
•Reassess Wheat Ridge Housing Authority (WRHA) Role
• Preliminary Scope and Solicitation of Consultants if Appropriate
• Project Scoping and Organization
• Project Initiation
• Plan Completion and Adoption
•Identify Funding Sources
•Design Program
•Solicit Proposals for First Funding Round
•Preliminary Scope and Solicitation of Consultants if Appropriate
•Project Scoping and Organization
•Project Initiation
•Code Completion and Adoption
• Establish Charter Commission
• Commission Findings and Recommendation
• Potential Ballot Question
•Preliminary Scope and Solicitation of Consultants if Appropriate
•Project Initiation
• Analysis and Strategy Completion
PRIORITY LEVEL 2 PRIORITY LEVEL 3
48 49Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
ATTACHMENT 1
Memorandum
TO: Mayor and City Council THROUGH: Patrick Goff, City Manager FROM: Christopher Murtha, Chief of Police
DATE: January 3, 2023 SUBJECT: Staff Report: Drive-by Shootings in Wheat Ridge
ISSUE Citizen concerns have been raised regarding a recent drive-by shooting that occurred on Teller Street as well as a concern that there is a prevalence of these types of incidents within the City of
Wheat Ridge. During the incident on Teller Street no individuals were struck by gunfire, but
three (3) bullets entered the residence. The fact that no individuals were struck does not lessen
the seriousness of the incident nor does it lessen the careless disregard for human life that was displayed by the person(s) firing into a residence. There does not appear to be any motive or any activity at the residence that provides the investigators with insight regarding the motive for shooting into this residence. To be blunt there was no motive to target this residence and this
appears to be a random act of violence.
In subsequent conversations the question has been raised as to how we might stop or lessen drive-by shootings in the City of Wheat Ridge. An important part of resolving the problem is to understand the extent of the problem, not only with respect to drive-by type shootings, but also
all incidents of illegal gun discharges within the city and the outcomes of those incidents. That
includes the number of contact shootings as well as the number of shell casings recovered, and the overall picture of gun use withing the city. With that information we might decide how to
prevent these incidents in the future and to understand the resources necessary to combat these types of incidents.
Constituent concerns were presented to the council and a request for information around this type
of crime was requested. With recent upgrades in police reporting, it is easier to extract
information and identify those incidents that are relevant to this conversation. The police department employs a full-time crime analyst and the analyst tracks and identifies issues of concern for the police department. Police and city leaders recognize that providing a safe
environment to live, work, and transit is paramount.
Staff Report: Drive-by Shootings in Wheat Ridge January 3, 2023
Page 2
BACKGROUND Illegal gun uses and gun discharges are a top concern for police departments across the region. The prevalence of gun discharges, by its very nature, is very dangerous. When the discharge of a
firearm is directed towards a residence it is a life-threatening event and we, at the Wheat Ridge
Police Department, take each of those events very seriously. A patrol officer responds to each
reported gunfire call for service and a detective is always assigned to follow up and investigate each incident.
The non-contact drive-by shooting that occurred on Teller Street was one of these events. Responding officers found evidence at the scene and that evidence has been processed. Shell
casings recovered at the scene were sent to a lab for processing and later tied to other incidents
over a large regional area. A detective has been assigned and attempts are being made to continue to identify a suspect or suspects. The case on Teller Street remains under investigation.
To understand the extent of the problem, the Wheat Ridge Police Department tracks and
monitors events like this as well as all criminal activity within the city limits. We also look for
trends or behaviors that might provide insight into gun usage and when, where, why, and how
these weapons are being used. We reviewed some relevant data surrounding incidents of gun uses within Wheat Ridge and below are just a couple of those statistics based on calls for service.
Below are calls for service that were initiated in Wheat Ridge. For comparison and context, peer agencies of Arvada and Lakewood are included.
“Shots Fired” Criminal Records Created
Arvada PD Lakewood PD Wheat Ridge PD
2021 89 210 67
2022 (12/28) 106 254 54 “Shell Casing” Criminal Records Created
Arvada PD Lakewood PD Wheat Ridge PD
2021 97 276 64
2022 (12/28) 133 316 59
Context is important for the listed gun incidents. These reports are an aggregate of all reports
including calls that are entered as shots fired but later found to be fireworks or other noises. The
call type is often titled “shots fired” although the conclusion may be that it was something else. Shots fired can be calls that include discharges of firearms such as accidental discharges within a
residence, suicide, calls for assistance in other jurisdictions (i.e. SWAT calls), or other actual gun discharges that are not random and attributable to a person. When we distill the calls for shots fired, which includes non-contact drive-by shootings, we find that the City of Wheat Ridge
annually averages 3.5 calls for shootings where a suspect is not known (drive-by shootings). That
was the case for 2021 and 2022 and there were 3 random drive-by shots fired in 2021 and 4 in 2022. We had 4 other events that were non-contact shootings of a residence by a known offender during these two years. Of the 67 calls for shots fired in 2021 and the 54 calls for shots fired in 2022 a total of 7 drive-by shootings of a residence occurred. One business was shot at in 2021
with no injuries. Again, it is impossible to verify all the calls for shots fired and we know that a
Staff Report: Drive-by Shootings in Wheat Ridge January 3, 2023
Page 3
high percentage of these calls come in on or around July 4th and New Year’s Eve. We know some calls were mistaken as gunfire and we suspect that some other calls are also mistaken for fireworks on those dates as well as on other nonspecific dates.
One way of tracking the known number of gun discharges is through the number of shell casings
recovered. The Wheat Ridge Police Department Policy requires that officers recover shell
casings, more formally known as cartridge casings, whenever they are located or reported. The Wheat Ridge Police Department recovered 64 shell casings in 2021 and 59 in 2022. That includes shell casings found by citizens, those recovered from accidental discharges as well as those recovered in suicides.
The number of shots fired calls and the number of shell casings recovered over the last two years is generally in line with our peer agencies on a per capita basis. The Wheat Ridge numbers of shots fired calls and shell casing recoveries are generally slightly higher than Arvada but lower than Lakewood per capita.
Those shell casings are turned over to our partners at the Jefferson County Regional Crime Lab
and entered into a national database for comparison. If a match is found, then a lead is given to
the assigned detective for follow up. This was the case on the Teller Street non-contact drive-by shooting.
The statistics around gun usage are stable over the last 3 years. This is not true of Colorado or
this region. Gun violence, gun usage and gun access are all issues of concern. Changes in the
penalty for illegal gun possession have been reduced and this is also a concern worth noting. These facts do not diminish our desire to reduce gun violence in Wheat Ridge.
Wheat Ridge has not had a homicide since 2020 and there are, on average, 2.5 contact shootings in Wheat Ridge each year. Those shootings are overwhelmingly between persons known to each other. The Wheat Ridge Police Department has an extremely high closure rate for contact
shootings and an extremely high conviction rate for those cases. We are not immune from gun
violence but the chances of becoming a victim of gun violence in Wheat Ridge are extremely low.
Non-contact drive-by shootings, like the incident on Teller Street, are very difficult to solve. They involve an unknown suspect, with no known motive, who can quickly move out of the area
and blend in with other traffic. They leave little evidence and we do not receive many leads. The
fact that many of these types of incidents occur in residential areas on streets that can have less foot and vehicle traffic often means fewer witnesses.
ACTIONS
It is the operating principle of the Wheat Ridge Police Department that prevention of crime is
necessary for a safe community. While investigations into crimes committed is important and it does reduce future instances of crime it is our goal to provide realistic prevention strategies that target crimes before they occur. It is our preference to focus on stopping criminal acts before the
crime is committed and the act becomes an investigation.
Prevention of random drive-by shootings is difficult. While creating an unwelcoming
environment for acts like this is possible it is not necessarily feasible. Reducing road and street
Staff Report: Drive-by Shootings in Wheat Ridge January 3, 2023
Page 4
access and turning some streets to dead ends is likely not viable. Having a monitored camera system would cost millions of dollars and need to be monitored full time to be of use. Even if that was feasible it would be hard to justify cameras in residential areas that do not see much
crime. The addition of officers is always welcome but that is resource dependent. We continue to
build our intelligence gathering assets and we look to partner with all our surrounding
jurisdictions to find solutions to this problem and others. Additional lighting does provide some benefit to areas. Wheat Ridge Police Investigations benefits from home security camera systems, and we use those with modest success in identifying criminals.
We do provide additional patrols around the areas that have seen drive-by shootings. This is only
possible when officers have unencumbered time and it is only possible to covers a fraction of the
time required to ensure that no repeat incidents occur. It is not a long-term solution. Partnering with the community through programs like Neighborhood Watch can provide a force multiplier and additional training to identify those persons or vehicles that might be suspicious has proven
to be helpful. Neighborhood Watch requires a commitment which is often unsustainable and
provides only temporary assistance. Additional license plate tag readers have been effective in
identifying vehicles used in the commission of these crimes.
Interagency conversations with surrounding jurisdictions point to a rise in juveniles involved in these types of crimes. There have been multiple incidents in which a vehicle tag was identified only to find the car was stolen or the tag did not belong on the vehicle. Some of these incidents
are captured by the perpetrators and later posted on social media. There is a trend to commit all
types of criminal and dangerous acts to illicit more views on these social platforms.
CONCLUSION We continue to look for opportunities to decrease gun violence in our community and to find
innovative ways to accomplish that goal. The Wheat Ridge Police Department will continue to
look at engineering, engagement, and balanced enforcement opportunities as solutions to impact gun violence within the Wheat Ridge Community.