THIS MEETING CAN BE HEARD IN ITS ENTIRETY ON THE TOWN OF MIDDLETOWN WEBSITE WWW.MIDDLETOWNRI.COM OR THE DVD IS AVAILABLE AT THE MIDDLETOWN LIBRARY.
At a Special Meeting of the Town Council of the Town of Middletown, RI held by telephone conference at the Middletown Town Hall, 350 East Main Road, Middletown, RI on Tuesday, March 9, 2021at 6:00 P.M.
Council President Robert J. Sylvia, Presiding
Vice President Paul M. Rodrigues
Councillor Terri Flynn
Councillor M. Theresa Santos
Councillor Dennis B. Turano
Councillor Barbara A. VonVillas, arrives at 6:01 p.m.
Councillor Thomas P. Welch, III, Members Present
Members and Participants Present by Teleconference and Webinar/Meeting.
POSTED – MARCH 3, 2021
SPECIAL MEETING – MARCH 9, 2021
The following items of business, having been filed with the Town Clerk under the Rules of the Council, will come before the Council at a Special Meeting to be held on Tuesday, March 9, 2021 at 6:00 P.M. - Said meeting will be conducted by telephone conference call/ webinar, in accordance with Executive Order 20-46 issued by Governor Raimondo on April 15, 2020, extended to March 4, 2021, which modifies certain provisions of the Open Meetings Act (“OMA”) and the Access to Public Records Act (“APRA”) as part of the State’s emergency response to COVID-19. Members of the public may access and listen to the meeting in real-time by calling 1-877-853-5257 (Toll Free) or 1-888-475-4499 (Toll Free) and entering Meeting ID: 896 9064 8443; or on the web at https://us02web.zoom.us/j/89690648443 .
Any person not a member of the Council, desiring to address the Council concerning this matter, shall submit a written request to the Town Clerk. Persons are permitted to address the Council for a period not to exceed three (3) minutes. Citizens that wish to speak must submit a written request either dropped off at Town Hall or emailed to both wmarshall@middletownri.com and kclancey@middletownri.com . Request must include how you will be identified/named on zoom. The request must be filed at least 30 minutes prior to the meeting. If a request is not filed, you will not be able to address the matter.
If calling in by telephone pressing *9 raises your hand and pressing *6 will unmute.
Wendy J.W. Marshall, Town Clerk
Town of Middletown
Town Hall – 350 East Main Road
Middletown, Rhode Island 02842
Dear Ms. Marshall:
Pursuant to the provisions of Article II, Section 203 of the Town Charter and in accordance with Sections 42-46-2., 42-46-3., 42-46-4., 42-46-5 and 42-46-6., RIGL, I hereby call a Special Meeting of the Town Council to formally consider, discuss and vote upon the following item of business:
PLEDGE OF ALLEGIANCE TO THE FLAG
1. Discussion of the Short-Term Rentals in the Town and matters related thereto.
a. Memorandum of Town Administrator, re: Short-Term Rentals – Municipal Court.
b. Memorandum of Town Administrator, re: Calls for Service – Short-Term Rentals.
c. Memorandum of Town Administrator, re: Complete List of Registered Units.
d. Memorandum of Town Administrator, re: User Fee Calculation – Short-Term Rentals.
e. Memorandum of Town Administrator, re: Short-Term Rentals – Proposed New Fees – Fiscal Impact Statement.
f. Memorandum of Town Administrator, re: Hotel Tax.
g. (Item was previously on the March 1, 2021 Regular Meeting agenda – No action taken on that date.)
Memorandum of Councillor Welch, re: STR registration fee.
Said meeting will be held on Tuesday, March 9, 2021 at 6:00 P.M. Town Council will meet in accordance with Executive Order 20-46.
____________________________________
Robert J. Sylvia, President
Middletown Town Council
cc: Town Council Town Administrator Town Solicitor
Finance Director Public Library
This meeting location is accessible to the handicapped. Individuals requiring interpreter services for the hearing-impaired should notify the Town Clerk’s Office at 847-0009 not less than 48 hours before the meeting.
Posted on March 3, 2021 at Middletown Town Hall, Middletown Public Library, Middletown Web Site and Secretary of State Web Site.
1. Discussion of the Short-Term Rentals in the Town and matters related thereto.
a. Memorandum of Town Administrator, re: Short-Term Rentals – Municipal Court.
b. Memorandum of Town Administrator, re: Calls for Service – Short-Term Rentals.
c. Memorandum of Town Administrator, re: Complete List of Registered Units.
d. Memorandum of Town Administrator, re: User Fee Calculation – Short-Term Rentals.
e. Memorandum of Town Administrator, re: Short-Term Rentals – Proposed New Fees – Fiscal Impact Statement.
f. Memorandum of Town Administrator, re: Hotel Tax.
g. (Item was previously on the March 1, 2021 Regular Meeting agenda – No action taken on that date.)
Memorandum of Councillor Welch, re: STR registration fee.
On motion of Vice President Rodrigues, duly seconded, it was voted unanimously to receive memorandum a, b, c, d, e, f, g and begin said discussion of the Short-Term Rentals in the Town and matters related thereto.
Councillor Flynn recused herself from this discussion, due to a possible conflict of interest.
Councillor Turano recused himself from this discussion, due to a possible conflict of interest.
Town Solicitor Peter B. Regan was not present at this meeting.
Attorney Marisa Desautel joined the meeting by zoom to represent the Town regarding Short-Term Rentals.
Attorney Marisa Desautel reviewed the ordinance revision process.
Council President Sylvia noted the following:
Friends and colleagues, I have the following words I’d like to offer on the short-term rentals in Middletown.
As most of you know, I’ve spoken with many residents and businesspeople about the issue. I’ve also read more emails than I can count. From the beginning, I approached short-term rentals with an open mind in an attempt to come up with the fairest policy possible.
First, I’d like to commend everyone for their decorum and willingness to listen to other perspectives. Out of this conversation, a true conversation, we all have a much better understanding of the breadth and complexity of the short-term rental situation, myself included.
Let’s not forget the results of the community survey weeks ago, which presented a number of benefits to short-term rentals, boosting the economy and providing families an affordable option to stay in Middletown to name a few. But we can’t forget the detractions either, the noise, the trash, the unseemly behavior periodically.
Saying that, there’s clearly no one answer to address short-term rentals in Middletown. One “solution” might be welcomed by some, but seen as draconian by others.
With that in mind, we have to find a compromise that works for everyone, small steps if you may before we decide to run if that’s necessary.
Towards that end, I am proposing a $75 annual flat fee to register all owner-occupied short-term rental properties in Middletown.
As for nonowner occupied units, my proposal is a $300 annual flat fee.
That’s it. No more confusing calculations based on bedrooms and other difficult to understand metrics. The $75 and $300 fees are it.
With the new money raised from these fees, my estimates show we’ll be able to generate 75 percent of the revenue needed to pay for our enhanced short-term rental enforcement program.
As part of that outreach, we will hire a part time short-term rental official under our Zoning Department. This man or woman will work closely with our operators, the neighbors and the Zoning Department and Police Department to make sure we get a better handle on short-term rentals and preserve the quality of life in our neighborhoods.
The remainder of the cost of the program, I believe can be paid for through the new registration fees associated with unregistered short-term rentals, something that remains a problem in some neighborhoods.
There will also be clear instructions for our town staff to handle short-term rental complaints and concerns as we move into the summer of 2021, hopefully free from COVID-19.
An easy-to-understand guidebook of all things short-term rentals in Middletown is also in the process of being put together, one that will help spell out the rules for everyone.
We’ve heard the message that we can do better as a town and we will do better to help make short-term rentals more part of the fabric of family first Middletown.
I would like to put that out there.
With all this in mind, I’d like to amend my original motion. In its place, I’d like to put forward a motion to have a new $75 annual flat fee to register all owner-occupied short-term rental properties and a $300 annual flat fee to register all nonowner occupied short-term rental units in Middletown.
I look forward to hearing from my fellow council members to go over this motion, one that will help get Middletown where it needs to be with short-term rentals.
Councillor Welch read the following letter into the record.
Councllor Welch noted the following:
The Short-Term Rental Ordinance Journey
Being a new councilor, I will admit I did not have a good grasp of the STR situation in town. Based on the newspaper articles and agenda items it appeared to be obvious that STRs had historically created havoc in our neighborhoods and caused costly OT demands on our public services.
19 Jan The first document that provided insight to the perceived problem was the town’s survey. A quick recap: 234 survey participants, overwhelmingly Middletown residents, more than 70% do not operate a STR, but live near one. 49% agreed or strongly agreed STR were good for the town – 38% did not. We heard STRs helped support local business, restaurants, & stores; employ local trades people; provide families an alternative to higher hotel costs; don’t use the school system – the biggest cost of the town. The STR cons included: Noise, Parking, trash. When asked to suggest improvements the word enforcement was written 96 times out of the 190 people who offered an opinion– my wife went through and counted.
It seemed as everything was pointing to the issue of enforcement. I threw out the idea a full-time position be created to identify unregistered STRs, perform annual inspections, and serve as the point person for information and complaints.
16 Feb After public requests for relative data, MPD provided logs of noise and parking calls from the past 3 summers. Using the logs from 2019 (as it was the last summer prior to COVID) there were 83 noise complaints – I compared the addresses to the STR registration list and found 22 complaints were to STR properties (10-OO, 12 non OO) which means 74% of the calls were to non STR properties. On the parking side the numbers were even more skewed as only 8 of the 204 complaints were at STRs – less than 4%.
The town had no overtime information with respect to STRs.
I suggested the salary for the STR officer should be mid 60K range and pointed to the approx. $25K the reg fee brings, the capture and reg of the possible 150 unregistered properties plus the 1% room tax money kicked back to the town from the state would more than pay for the position.
Subsequently, I learned:
After further investigation of town data, talking to town officials and hearing from a multitude of residents, a few more pieces of the puzzle emerged:
· Only 7 people paid fines and fees due to STR violations over the past 5 years – the TOTAL collected was just over $2,800 – I am having a hard time understanding how that is possible. Hopefully, the appointment of Judge Holbrook will put the municipal court back on track.
· There is a group of STR owners that have rallied together to speak up – they include a number of smart, successful people that want to insure STRs are given a fair shake. They have great ideas and insight to the discussion. This group has offered their help and expertise to suggest changes to the ordinance to make it easier to enforce and easier to adhere to. They have the knowledge and ability to help identify the unregistered properties. I think we should take them up on their offer.
· There are a number of corrective measures in que ready to be implemented by Chief Kewer this season including: the hiring of Public Safety Auxiliary Interns – 2 of which will be dedicated to preemptive noise patrols, addressing parking violators, etc. (an added benefit to this program is that the interns are interested in the law enforcement field, so we get a chance to let them experience all Middletown has to offer while working alongside our Police Dept – a great incentive). The recycling coordinator in conjunction with MPD will address the trash can issue prior to the start of the summer season to increase compliance. Adjustments to the MPD/municipal court interface and amending the ordinance to require minimum fines will provide for a more efficient judicial process and increase the monies collected by the town.
I would also like to change the focus of these discussions from STRs to “Summer Issues” as we now know the additional pressure on town services during the tourist season is not due solely or predominantly from STR properties.
I still believe the Summer Issues Officer is a key component of the answer we seek. I think it is important to have one point of contact for information requests, complaints to be logged, data to be collected and inspections performed. This position is needed during the summer season – perhaps 6 months.
· By law, a municipality can charge a fee for a particular service that benefits the fee payer in a manner not shared by other members of society. There must be a choice to pay the fee for service or not. A fee compensates the municipality for expenses providing the service – it is not to raise revenue.
· The $55 per unit charge originated from the administrative cost of the annual inspection. The STR also pays the hotel tax.
· The town continues to get these 2 revenue streams from STR owners – because the payments are allocated to pension liabilities or put into the general fund is no reason to ask for more money.
· Currently, the noise and parking data we have to look at shows that STRs only comprise a small percentage of the calls – so they should not be unfairly targeted.
· Perhaps the most equitable way forward is to hire someone in the zoning office to work on the “Summer Tourist Season Issues” Memorial Day thru Labor Day, and on building/zoning enforcement for the other 6 or 8 months of the year.
In summary, I am confident the STRs are not the villainous demon here. I think we have seen we can do a better job of enforcing the rules we already have – and there are measures in place at the direction of Chief Kewer to make it happen. That is not to say there are not tweaks to the ordinance that could help. I believe we can do the best job if we have a town employee who oversees all summer issues – which includes coordinating STR ordinance enforcement/inspections.
I think the STR owners are an untapped resource. A committee of these and other stakeholders can provide valuable insight to ordinance amendments, the ability to identify unregistered properties, and methods of collecting and tracking data points. It’s a win/win – they want to be portrayed in the best possible light and the town wants to prosper from their economic stimulus while safeguarding the right of all residents to enjoy their property.
Discussion centered around the actual number of short-term rentals in the town, if there is a need for a full time employee dedicated to short-term rentals, working with STROM regarding short-term rentals, how the fee for a short-term rental should be determined, the majority of short-term renters do not live on the property while renting, short-term rentals are mainly a summer issue, utilizing police summer staff for short-term rental enforcement and if the short-term ordinance is amended there will be two public hearings on the ordinance for public input.
Christopher Morris, 91 Reservoir Road, member of STROM, addressed the Council, noting there may be a gap between communication and enforcement by the police and zoning. Mr. Morris explained that increasing the fees will not solve the issue, the fee is not the issue.
David Dittman, 44 Oceanview Drive, addressed the Council, noting short-term rentals are good for Middletown businesses. Mr. Dittman explained that there are not a lot of short-term rentals causing issues in the Town, the issue is enforcement.
Tom Perrotti, 113 Center Avenue, addressed the Council, noting that the Town and Short-Term renters need to work together, the resolutions should be common sense and fair to all.
Rebecca Clark, 165 Ellery Avenue, addressed the Council, noting she is glad about the conversation this evening. Ms. Clark explained the need for enforcement of the ordinances. Rebecca also noted that paying an exorbitant fee for renting a bedroom to catch those not incompliance is disappointing.
Leon Amarant, 60 Island Drive, addressed the Council noting the focus should be on actual numbers of registered short-term rentals in the Town. Mr. Amarant supports the creation of a short-term rental task force.
Robert Connerney, 9 Renfew Park, addressed the Council noting he has had issues with short-term renters renting his neighbor’s property causing him years of not having the ability to enjoy his property. Mr. Connerney suggests more enforcement of Town ordinances.
Lawrence Frank, 8 O’Donnell Road, addressed the Council noting the problem is not enforcement, Short Term Rentals should be paying commercial tax rates. Mr. Frank explained these are solvable issues which can be addressed. Mr. Frank noted the problem is the short-term rentals come, play, and leave, which reduce business income, school enrollment and revenues.
Nicole Shiland, 174 Center Avenue, read the following letter into the record.
Ed Dlugolenski, 24 Briarwood Avenue, addressed the Council noting that his neighbors keep an eye on his short-term rental. Mr. Dlugolenski supports the establishment of a Short-Term rental task force.
Debra Fragola, 639 East Main Road, addressed the Council noting she likes the tone of the meeting and most of her points have been addressed.
Todd Polando, 146 Center Avenue, addressed the Council noting he has had a short-term rental for seven years, posts all the rules, has a manager for the property and has had zero complaints. Mr. Polando does not support an increase in the rental fees.
AJ Bucci, 80 Peckham Lane, Member of STROM, addressed the Council, noting concern with the lack of staff in the Town Building Department. Mr. Bucci supports the establishment of a STR Taskforce to provide solutions to better the community.
Brian W. Murray, 103 Purgatory Road, addressed the Council, suggesting the Council be cautious raising application fees too high and noted he rents to cover his town taxes.
Christine Geyer, 216 Boulevard, addressed the Council noting she is in support of the lower fee for owner occupied short-term rentals.
Michael Toppa, 71 Aquidneck Avenue, member of STROM, addressed the Council noting he rents to cover expenses. Mr. Toppa explained he has camaras on the property. Michael Toppa suggests before raising fees, the Town should use the current fees collected for short-term rental enforcement.
Dustin Varnell, 54 Warren Avenue, member of STROM, addressed the Council noting he has used current data regarding short-term rentals in the Town and there are approximately 440 short-term rentals. Mr. Varnell offered to volunteer his time to help the Town regarding short-term rentals.
Edward McPherson, 93 Maple Avenue, addressed the Council noting support for the 60-minute owner to appear clause for response time an issue that arises at a short-term rental location, enforcement is the issue. Mr. McPherson explained he supports the task force and would volunteer.
Sue Gleason, 36 Briarwood Road, addressed the council noting concern with the excessive fee proposal. Ms. Gleason explained she supports the task force.
John Bagwill, 587 Tuckerman Avenue, addressed the Council reviewing the following:
JOHN W. BAGWILL
March 9, 2021
To: The Honorable Robert Sylvia, President and Members Middletown Town Council
CC: George Durgin, Assessor
Subject: Short-term Rentals – One More Time!
Good morning:
Once again, I am using this opportunity to share my thoughts on STRs to address issues that are impacting the quality of life for those of us who have made Middletown our home. The first is an issue that I have not raised before.
1. Impact of STRs on the following elements affecting one’s property value:
i. An STR investor may base their purchase price on a calculation that produces a greater “value” than that determined by one purchasing the property as their home.
Proposal: Advise Assessor to remove STR sales from the “comps” establishing assessed values for other residential properties.
ii. An STR could have a negative impact on the quality of life of adjacent properties.
Proposal: Advise Assessor to adjust property assessments to take this possibility into account.
iii. Prospective buyers have a right to be fully informed about “features” that could impact a property.
Proposal: Require seller to notify prospective buyers of registered STRs located within a specified distance.
2. A residential property rented on a “Short-term” basis – that is NOT one’s primary residence – is, by its nature, an income-producing, investment property – a BUSINESS. IRS regulations can make this a lucrative business.
Proposal: Tax the property for what it is – a business. Apply the commercial tax rate to the property. Yes, the owner has a “right” to make money. But why shouldn’t he/she be required to play by the same rules as competitors in the “lodging” business.
3. Managing STRs to secure compliance with the STR Ordinance. One of the proposals is to hire a Zoning Enforcement Officer – (a program to include “Public Safety Interns”), with an estimated cost of $147,603.
Recommendation: Improve enforcement by using a “team” to provide an immediate response to each complaint: a policeman and a Town employee, “deputized” to issue a summons. This could be a “first” step, before committing to the costly, proposed program.
JWB: 3/9/2021
Dave Rushlow, 32 Ellery Avenue, addressed the Council noting the issue with short-term rentals is enforcement and suggest if a Short-Term Rental Owner gets three violations in one year the operator should be suspended for a year.
Beth Rushlow, 32 Ellery Avenue, addressed the Council noting agreement with Councillor Welch, slowing the process down, getting accurate data and the 1% monies collected be placed in a separate account.
Camille Marcello, 30 Warren Avenue, addressed the Council noting appreciation for the tone of the meeting. Ms. Marcello explained the discussion is hitting all the points that need to be addressed.
Olga Tragesser, 71 Aquidneck Avenue, member of STROM, addressed the Council noting she is happy with the tone of the meeting, the Town Council is going in the right direction.
Bob Walker, 11 Porter Road, addressed the Council noting support for the discussion. Mr. Walker explained that most of his questions have been covered.
Trisha Onofrio, 23 Warren Avenue, member of STROM, addressed the Council noting support for the discussion and inquired about the registration fee increase.
Chuck Bodemann, 19 White Terrace, member of STROM, addressed the Council suggesting they look online at AIR DNA as a tool for searching for short-term rentals in the area.
Julie O’Halloran, 22 Esplande, member of STROM, addressed the Council reviewing calls of service to her property and requesting violation data be corrected. Ms. O’Halloran suggests banning fire pits or limiting the use of to no later than 10:00 pm.
Sara Minor, 7 Coggeshall Circle, member of STROM, addressed the Council noting the misconception of short-term rentals making big bucks.
Kathleen Connell, 15 Sachuest Drive, addressed the Council noting that short-term rentals are not gold mines, they are workable businesses.
Ryan Miller, 134 Fairview Avenue, addressed the Council, noting the focus should be on enforcement and the need for accurate data. Mr. Miller explained he agrees with Councillor Welch and supports the idea of a task force.
Rick Medeiros, 52 Tuckerman Avenue, member of STROM, addressed the Council noting support for using police summer staff for enforcement of the town ordinances.
Lance Minor, 7 Coggeshall Circle, addressed the Council noting concern with the accuracy of the call log data.
Jason Rushton, 23 King Road, addressed the Council noting concern with the accuracy of the call log data. Mr. Rushton explained the need for accurate data to make decisions.
Jay Redfearn, 275 Green End Avenue, addressed the Council noting there is no teeth to the ordinances. Mr. Redfearn explained there is no enforcement to the ordinances regarding short-term rentals in the Town.
Debbie Amarant, 60 Island Drive, addressed the Council noting concern with the accuracy of the call log data. Ms. Amarant explained the creation of a short-term rental task force is overdue.
Debbie Bodemann, 19 White Terrace, addressed the Council noting her points have been addressed.
Dan Titus, 383 Paradise Avenue, addressed the Council noting he is not against the short-term rentals, but suggests they should be limited to certain areas in the Town. Mr. Titus explained that short-term rentals can affect the quality of life.
Jim Thompson, 1 Renfrew Park, addressed the Council noting that all his points have been addressed and the importance of a task force.
Discussion centered around seasonal public safety interns, accurate data regarding service calls, not all taxpayers should pay for short-term rental requirements, response time for a short-term rental owner, creation of a short-term rental task force and a timeline for the task force.
On motion of Councillor Welch, duly seconded to create a Short-Term Rental Task Force.
Discussion centered around the Task Force being discussed at the April 5, 2021 Regular Meeting, defining the membership on the Task Force, and defining a timeline for the Task Force.
Councillor Welch amended the motion above at this time, which was duly seconded.
To include Councillor VonVillas to define the Short-Term Rental Task Force membership, timeline and bring back to the Town Council on April 5, 2021.
A vote was taken at this time on the original motion.
On motion of Councillor Welch, duly seconded, it was voted unanimously to create a Short-Term Rental Task Force.
A vote was taken on the amendment to the original motion at this time.
It was voted unanimously to include Councillor VonVillas to define the Short-Term Rental Task Force membership, timeline and bring back to the Town Council on April 5, 2021.
On motion of Vice President Rodrigues, duly seconded, it was voted unanimously to adjourn said meeting at 8:51 p.m.
____________________________
Wendy J.W. Marshall, CMC
Council Clerk
Supporting documentation is available at http://clerkshq.com/default.ashx?clientsite=Middletown-ri