HomeMy WebLinkAbout06.03.24 - Study Session NotesCITY OF WHEAT RIDGE, COLORADO
STUDY SESSION NOTES
Hybrid - Virtual Meeting
June 03, 2024
1. Call to Order
Mayor Starker called the Study Session to order at 6:30 p.m.
2. Attendance
Council Members present: Scott Ohm, Jenny Snell, Korey Stites, Dan Larson, Janeece
Hoppe, and Rachel Hultin, Leah Dozeman, and Amanda Weaver.
Also present: City Manager Patrick Goff; Sr. Deputy City Clerk Margy Greer; Community
Development Director Lauren Mikulak, Planner Scott Cutler, and other staff and
interested residents.
3. Public’s Right to Speak
None.
Wheat Ridge Speaks:
There were no public comments from Wheat Ridge Speaks.
4. Accessory Dwelling Units Update
Issue
This memo provides an update to City Council with lessons learned now that Accessory
Dwelling Units (ADUs) have now been allowed for over 1.5 years. The grace period to
legalize existing ADUs will expire on August 15, 2024. This memo serves a few
purposes:
1. Updates Council on how the new and existing ADU approval process is going, 2. Discusses potential changes and extensions to the grace period for existing ADUs, and 3. Updates Council on how state legislation may impact the City’s current ADU
requirements.
Staff Reports
City Planner Scott Cutler gave a staff presentation to Council. Council approved the
original ordinance for ADU’s in July of 2022, and it became effective in August of 2022.
He explained there were three discussion topics, status of ADU’s, staff recommendations
regarding grace period for existing ADU’s, and implications of the HB11-241152 state
legislation and the two new rules statewide. Since August of 22, there have been 16
ADU’s permitted, 12 approved and pending or under construction, 4 completed, and 13
existing ADU’s have been legalized, and 1 still in staff review, not yet permitted. He
commented that additional public education would be a good idea, but data shows the
city rules are working well. One goal of the original ordinance was to establish a process
for existing ADU’s and a grace period to bring them to compliance. Once the grace
period has expired, any ADU’s on property will have to be brought to code. He stated
staff has received 23 applications since the ordinance went into place. Even though not
at 100% legalization, process is going well. Staff recommendation is to extend the grace
period 2 more years to August of 2024. There are ADU’s out there, that could benefit
from this. He said they do not have the capacity to review every property in the city.
Staff believes without this extension; owners will be less likely to come forward. Would
only apply to any property in existence prior to August 2022, as anything after that
should have fallen under the new regulations. People need to be aware of the
opportunity to bring these into legal status. Staff would like to send out communication
and education around these new laws.
Council Comments
• Council Member Larson stated there had been a 2-year grace period and now
staff is asking for another 2-year period and asked if there a way we can say that
we will never extend again. Cutler explained never extending again, hasn’t yet
been discussed.
• Council Member Ohm asked for the reasoning behind extending. Cutler stated
people may not be aware, don’t have the money, and the city can’t invade privacy
asking to see every ADU. Ohm asked how the program was advertised, as he is
not sure if he is favor of the extension. If Council does decide to grant the
extension, he stated he would like to have something in place to ensure
compliance.
• Council Member Weaver stated she didn’t’ have a question, but she stated she
felt the opposite. She stated that the idea is compliance and if more people
comply in the next two years, that would be a good thing. Weaver stated that
being punitive is not the best way to gain compliance.
• Council Member Hoppe agreed with Council Member Weaver, asking they
consider, that some properties with the ADUs that don’t have the finances to
update this, may sell to someone who can. She said that it may exist that down
the road, they can get a loan to upgrade. In favor of extending now, not sure
about extending beyond that, but the goal is to ensure safe properties in the
community. She also mentioned that ADUs are expensive to build, not surprised
there are not a lot of new apps, but she wants to get existing ones into
compliance.
• Council Member Hultin agreed with Council Member Hoppe. She stated the
strategy was to have affordable living housing. She was not expecting to have as
many new ones as we have, so wanted to call this policy out as extremely
successful. She supported the 2-year extension and wants to address the matter
two years from now. She stated she does not want to be stringent and say no
further extensions from here. She stated she wants to celebrate that we have
done a good policy here.
• Council Member Dozeman stated she was generally in support of this, due to
already mentioned items. She stated she is concerned that the 6 didn’t move
forward and questioned how likely is it that they will come into compliance, and
how many more are there have that mirror this, rather than getting into
compliance. She asked about the kind of outreach that was done. Cutler
remarked that staff is not sure how many are out there, for the 6 or 7 still in the
process, it is a case-by-case basis. He stated some are easy and may do it
eventually, and others are life safety issues, that will be more expensive. There is
such a wide range of quality, he stated he couldn’t speak to each property
individually. Director Mikulak expounded on clarification of Cutler’s remarks and
added additional information around adding kitchen space in the basement
without adding a separate entrance, so that is not an ADU. So many issues are
separate from the ADU issue itself. Dozeman asked how the city’s proceeds with
those that have life safety issues. Cutler explained that there is a building
inspection and all of that is documented within the city. Lauren Mikulak explained
the separate entrance has been the biggest issue. She also explained that it has
taken the department time to calibrate their inspections as well.
• Council Member Stites asked what other outreach is planned at this point.
Director Mikulak explained, ADU’s are a little contentious, the city has not done
full court press, but has a moment with the new state laws, to capitalize on
positive messaging around this. Stites also stated we keep the end goal in mind,
which is housing. Heard a lot of people state when this first came up, saying it
was in the pocket of the developer. This shows us the issue is the exact opposite
of that. He stated he felt the need to move forward with the 2-year grace period.
The more people we get into compliance the better.
• Council Member Weaver wanted to clarify she no longer has out houses at the
farm. She asked if the city has the fund that was created for affordable housing,
for some of those places, where they are close, but are needing a grant, might
funds be available as part of the other funds created along with taxes. City
Manager Patrick Goff stated it could be an option, staff is planning to come back
later in the year to discuss how those funds should be spent. Weaver stated
ADUs are a home grown way to offer affordable space. City Manager Goff states
staff will keep an eye on Prop 123 funding.
• Council Member Ohm asked to put this into two different buckets. One being an
extension, and two, if someone has one of these and isn’t working toward
compliance, he wanted to know if the city had any liability and what will the
punitive fines be if someone is caught running an illegal ADU. We have a duty to
protect life-safety. Director Mikulak states they must fall into existing building
codes, any new ones would have to fall under updated building codes, etc. From
a building code liability, there is no liability. Ohm expressed why have a deadline
and asks why instead we don’t have a criterion. Mikulak explains that hasn’t been
contemplated yet.
• Council Member Snell stated that she supported the 2-yearr grace period. What
she has heard in conversation is that this is a great gift for those who have elderly
family members or transitioning family members to give them a place to be.
Sounds like some people may be afraid to ask questions, would be in support to
help get the word out with an educational event.
• Council Member Hultin asked if the staff had a system which captures inquiries about
ADUs so that Council can inform residents of the program. Director Mikulak states
they have had this in place since the Ordinance passed. Hultin asked about running
a notification in the Gazette about non-conforming. She stated two groups of people
at the opposite end of the age spectrum, she would guess are those without the
education, and thinks there is a way to educate them. She wanted to acknowledge
the time it takes to build an ADU.
Planner Cutler advised that all the State legislation is listed in the Memo for this Agenda
item. Owner occupancy, Size Requirements and Setbacks are the only three
requirements that Wheat Ridge is not already in compliance with. The city has the
option to decide if they want to comply with the State legislation on this or not.
Council members asked questions about the new state legislation as well as current City
Code and Charter. Director Mikulak explained to Council, that they are looking for a
consensus to move forward to track this going forward moving toward State compliance,
and then would bring back an Ordinance once more information and clarification on all of
this was obtained.
Mayor asked for a consensus to move forward. Consensus received from Council on
the ADU compliance extension, as well as consensus to move forward on State
Legislation compliance.
5. STR Code Updates
Issue
City Council enacted legislation concerning the licensing and enforcement of short-term
rentals (STRs) in February 2021. Since that time, staff has worked to implement the
legislation by licensing STRs, collecting the applicable lodgers’ tax, and enforcing the
codified regulations. At the regular business meeting on February 12, 2024, Councilor Ohm
raised a concern regarding the exemption of townhomes in Mixed Use-Neighborhood (MU-
N) zone districts from the whole home licensing cap and, with the support of other members
of Council, requested the issue come forward for discussion. Since the STR regulations
were put into place about three years ago, staff have additional suggestions for Council’s
consideration that might support stronger code enforcement.
The enclosed Report includes suggestions to remedy the townhome cap exclusion in mixed-
use zone districts, strengthen regulations for marketplace facilitators and align the annual
license-cap reporting period to a calendar year.
Staff Reports
City Manager Goff, Deputy City Manager Alli Scheck, and Finance Manager Mark Colvin
presented this item to Council. Deputy City Manager Scheck introduced Finance
Manager Mark Colvin, Revenue Supervisor Rachel Monte, and the new Compliance
Officer Leo Lopez. Scheck advised council that all were present to answer questions if
necessary. She went on to explain some challenging situations with STRs where calls
were being received, stating the City was at a 66% compliant rating with these listings
when Leo started and now the City has improved to almost 88% compliant. Also
explained that we are now at our max STR rate, and so this is now becoming more
challenging. Finance Manager Colvin then let Council know they would be giving a
background and then giving staff recommendations around this issue. Colvin thanked
Councilor Ohm for his work on this issue, and addressing what was referred to as the
Townhome loophole. Finance Manager Colvin expressed things that have worked,
challenges faced, etc. around short-term rentals and the marketplace facilitators, who
market these for the rental period.
Council Comments
Council members expressed thanks to the staff and to Councilor Ohm for pointing out all
these short-term rental updates and suggestions. Several Councilors asked clarifying
questions around the comments they had previously received, and if the fee schedule
was stringent enough.
Council Member Hoppe commented being stricter around these fees. She also stated
that it is evident that staff worked very hard to satisfy all notes and points that Council
had previously pointed out, and thanked them for paying attention to, and working
diligently to bring this to fruition.
Mayor asked for consensus to move this issue forward. Consensus was obtained.
6. AHS Implementation Inclusionary Housing Zoning Program
Issue
The purpose of this memo and the June 3 study session is to discuss the implementation
of an Inclusionary Housing Zoning (IHZ) program as recommended by the Affordable
Housing Strategy (AHS) and Action Plan adopted by City Council in January 2023.
Staff Reports
Community Development Director Lauren Mikulak introduced Housing Coordinator
Terrance Ware, who has been with the city for 6 months. Mikulak explained that he had
brought a lot of experience in the Denver metro area with him to the City of Wheat
Ridge, and explained he is by far the expert in the department. Ware explained to
Council that he spent many years at HUD in the disaster recovery division, which
revolves around housing. Ware spoke about his background, covered the definition of
inclusionary housing, compared Wheat Ridge to other cities, discussed the program
structure and components, and finalized the presentation with next steps. He also
individually explained all six staff recommendations on this item.
Council Comments
Council members thanked Housing Coordinator Ware for his presentation, and
expressed grateful feelings that Wheat Ridge has such a knowledgeable employee to
present to them. Discussion evolved around fees in lieu, lack of land in Wheat Ridge,
moving toward making current rentals more quality, and an holistic approach to
Affordable Housing. Comments were made around median income in Denver and the
indications that the income levels in Jefferson County may be higher, and requests that
updated data be used moving forward.
Mayor asked for a consensus from Council on the recommended steps. Consensus was
obtained.
7. Staff Reports
Director Mikulak talked about the City Plan being live on What’s Up Wheat Ridge.
8. Council Reports
Council discussed events they had attended in the previous week, and upcoming events
for Councilors and residents alike to attend in the following week. They thanked
residents who put these events together and volunteered their time on behalf of the
community. Council Member Larson read a statement about D-Day and Memorial Day,
recognizing his family’s part in these historic events.
Adjournment
Mayor Starker adjourned the meeting at 9:23 pm.
_________________________________
Margy Greer, Sr. Deputy City Clerk
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Korey Stites, Mayor Pro Tem