CITY COUNCIL STUDY SESSION MINUTES TUESDAY, AUGUST2,2016 1. EXECUTIVE SESSION 2. CALLTO ORDER/ROLL CALL 4. PUBLIC COMMENT ON AGENDA ITEMS 5. CITY COUNCIL DISCUSSION  ITEMS DISCUSSED  A. REVIEW QUALIFICATIONS OF AN APPLICANTFOR CITY EMPLOYMENT (RCW 42.30.110(1)8) 3. ACCEPTANCE OR MODIFICATION OF AGENDAI /CONFLICT OF INTEREST DISCLOSURE  A. REVIEW: REQUEST FOR: PROPOSALS FOR: 2017 LODGING TAX. ADVISORY COMMITTEE PROJECTS, B. AWARD PROCESS FOR: 2017-18 HUMAN SERVICES FUNDING, AB 16-112- -1 EXECUTIVE C. REGULATION OF SHORT-TERM VACATION RENTALS, AB 15-113 - COUNCIEMEMBER BLOSSOM  AB 16-111-C COUNCILMEMBERS SCOTT AND TOWNSEND  6. FOR THE GOOD OF THE ORDER 7. ADJOURNMENT 1. EXECUTIVE SESSION 6:451 PM  A. REVIEW QUALIFICATIONS OF AN APPLICANT FOR CITY EMPLOYMENT (RCW 42.30.110(1)) Deputy Mayor Medina called an executive session to order at 6:45 p.m. with Councilmembers Scott, Blossom, Peltier and Tollefson and Interim City Attorney Wayne Tanaka to discuss Review Qualifications ofa an Applicant (RCW 42.30.140) in the Planning Conference Room. Councilmembers Townsend and Roth were absent and excused. The recording system was turned off and ai notice was posted on the door to the Council Chamber. The executive session adjourned at 7:00 p.m. No action was taken. Deputy Mayor Medina called the meeting to order at 7:04 p.m. Councilmembers Scott, Blossom, Peltier and Tollefson present. Councilmembers Townsend and Roth were absent and excused. Records Management Coordinator Jahraus monitored the 3. ACCEPTANCE ORI MODIFICATION OF AGENDA/CONFLICT OF INTEREST DISCLOSURE 7:04P PM  2. CALLTO ORDER/ROLL CALL7:041 PM recording of the meeting and prepared the minutes.  7:04PM  MOTION:. Imove to accept the agenda as) presented. TOLLEFSONISCOTT: The motion carried5-0.  4. PUBLIC COMMENT ON AGENDA ITEMS 7:04 PM Comment will be accepted after each agenda item. CITY COUNCIL DISCUSSION  A. REVIEW REQUEST FORI PROPOSALS FOR 2017) LODGING TAX ADVISORY COMMITTEE PROJECTS, The City annually solicits proposals for eligible projects to receive funding from the City's Civic Improvement Fund. The City Council appoints members to the Lodging Tax Advisory Committee (LTAC), which reviews project proposals and provides the The briefing memo included in the agenda packet describes recommended changes to the City's award process for the coming funding cycle. The City expects to: issue a Request for Proposals (RFP) inl Fall, 2016 for project activities in 2017. A draft oft the proposed RFP was provided for Council review and discussion with both redline and clean versions. The City Council is scheduled to consider approval of the RFP at the City Council Business Meeting on August 9,2016. Bonnie McBryan, owner of the Eagle Harbor Inn. Ms. McBryan provided a checklist for Council to refer to while reviewing Jerri Lane (Bainbridge Island Downtown Association) referred toi item H in the basic criteria which states "project will leverage awardj funds with additional matching, funds or donated in-kind goods or services. She thought that criteria had been eliminated; Eric Fredericks, Madison Avenue North is the past present of] Bainbridge Island Lodging Association. He recommended: al book put  AB 16-111 - COUNCILMEMBERS SCOTT. AND TOWNSEND 7:05 PM  City Council withi recommendations on project funding.  Public Comment proposals.  ity would restrict potential applicants due to the matching fund requirement.  together by the Kitsap County committee that orients LTAC members tot thei rating process.    CITY COUNCIL STUDY SESSION MINUTES TUESDAY,AUCUST2206  Action/Next Steps: City Council needs to formally approve the RFP prior to its beingi issued; there is consensus that the form shown is adequate. The RFP is on the next business meeting agenda (August 9,) for approval. The RFP willl bej published September 1 with a four-week response time. Once appointed, the committee willl begin reviewing submissions early October, B. AWARD PROCESS FOR 2017-181 HUMAN SERVICES FUNDING, AB 16-112-F EXECUTIVE7:271 PM The City provides more than $300,000 in annual funding to support human services activities ini the community. Thel briefing memo included in the agenda packet describes the process proposed for the upcoming award cycle to allocate funding for 2017 and 2018. Also included in the agenda packet is an interim report from the Bainbridge Community Foundation (BCF) on the award process Judy McKenzie, NEI Bill Point Court, representing BI Village, a new non-profit on thei island, provided a flyer on the project.  used by the City in Fall, 2015 to allocate funding for 2016 activities.  Public Comment  Patti Dusbabek, Holly Farm Lane, stated curtailing taxes would be beneficial. RFP willl be brought back to Council after the needs assessment is presented.  Action/Next Steps: Discussion on the process proposed for the upcoming award cycle to allocate funding for 2017 and 2018. The C.REGULATION OF SHORT-TERM VACATION RENTALS, AB 15-113-C COUNCILMEMBER  BLOSSOM 7:47PM  Councilmember Blossom requested discussion ofregulation of short-term vacation rentals (VRBO, Airbnb, etc.) at a study session. The City Council previously discussed this issue and decided not to move forward with any additional regulations. However, some short-term vacation rental properties are being used for events and large gatherings that are inconsistent with residential uses. For example, an advertisement found on VRBO for a three-bedroom, three-bath property located on Blakely Harbor states that the home sleeps upto 18 people. In addition, thej propertlyisadvertised: as being perfect for family: reunions, church and corporate retreats. In addition to the non-residential uses, Councilmember Blossom also expressed concern about the number of short-term vacation Eric Fredericks, Madison Avel North, stated that eachi rental should be licensed and code complaint and preferably owner-occupied. Claes Hagstromer, Wing Point, agreed with Mr. Fredericks. He pointed out that as short-term rental has less impact on the Bonnie McBryan, Madison. Avenue S. has concerns about the online platform of Airbnb's. Shei is excited about lodging services  rental properties and thei impact this trend may have on housing availability/costs on Bainbridge Island.  Public Comment neighbors.  that have emerged because thel hotels cannot meet the demand on thei island ini thes summer. Thom McDonald, Grow Avenue, provided al handout regarding his experience as an. Airbnb host.  Patty Dusbabek, Holly Farm Lane, owns Holly Lane Gardens, an organic farm. She is concerned about over-regulation. Keith Brofsky, Sunrise Drive NE, stated. Airbnb has been a godsend because oft the recession; it! has sustained him. He believes  there is shortage of! hotels on thei island.  Nancy Fortner, Summerhill Lane, please set up lots of discussion time ifthis subject becomes al big issue.  Julie Schulte, NE South Beach Drive, shel has two vacation cottages, and is the past president ofBILA. She started as an owner- occupied but currently both ofl her cottages are nowa are not owner-occupied. Please dor not limit the non-owner occupied rentals. Annel Knight, Murden Cove Drive, has been an Airbnb host for five years. She frequently hosts people that stay as they look fora  home to buy on Bainbridge Island.  Mark Harrison asked about a time-line regarding any discussion on Airbnb's.  Action/Next, Steps; Council does not plan tor take any action this year regarding any kind ofregulation; it could conceivably be on  an agenda later in 2017.  2    CITY COUNCIL STUDY SESSION MINUTES UESDAY,AGUSI2206 6. FOR THE GOOD OF THE ORDER 8:26P PM 7. ADJOURNMENT 8:26PM The meeting was adjourned at 8:26! p.m.  None offered.    Cy Kelly. Jahraus, Records  EGha  3