Despite citizen objections, pro-industry committee resists tighter regulations on vacation rentals

NEWS ANALYSIS

MILT THOMAS

In many respects, last week’s February edition of the Short Term Rental Advisory Committee followed the same script as the prior meetings – The committee is tasked with recommending regulations that assuage concerns of residential homeowners without placing too much of a burden on those who rent out their homes to transient vacationers for a profit. From that vantage point, the meeting was a success, at least the part about not placing too much of a burden on those who rent out homes in residential neighborhoods.

The meeting at times seemed like more of a trial, with the defendants being three members of the Indian River Neighborhood Association (Dr. Miles Conway, Carter Taylor and David Hunter) trying to represent homeowners in unincorporated Indian River County. The “prosecution” appears to be primarily represented by the committee itself, which also acts as the jury.

The meeting started with approval of the January meeting minutes and questions regarding the level of content in those minutes. Deputy County Attorney Bill DeBraal stated that typically they are summary minutes and the video is available for more detail. Then David Hunter of the Indian River Neighborhood Association noted that no mention at all of public input was included in the minutes; in other words, comments from the IRNA representatives. Attorney DeBraal responded that if Hunter has a problem, he should go to the county administrator or commission and ask for the minutes to be kept differently.

Committee Chairman Glenn Powell suggested the minutes should include committee member Glenn Heran’s estimate of economic impact and tax revenue along with Commissioner Peter O’Bryan’s explanation of how that money is used. Glenn Heran’s estimate had been based on totally speculative numbers because no credible information was available. Vice Chairman Joe Paladin disagreed with Powell because Heran’s information was so speculative, in effect, fictitious. (Heran, along with Dr. Steven Flaherty, once projected the sale of Vero Beach’s electric utility could net the city more than $150 million dollars. Current estimates are closer to zero, leaving Heran’s projections off by $150 million.)

IRNA representative Hunter then had a question about the agenda packet provided. “In it is a memo from November 2015 in which it is stated that this committee provided the parking and event regulations. They were passed by the county on September 22, 2015. How could (this committee) adopt an ordinance prior to its first meeting as a committee?

Chairman Powell then said we should save that question for new matters at the end of the meeting because we are only concerned now with approving the January 11 minutes.

The next subject on the agenda was a discussion of occupancy limits. Community Development Director Stan Boling presented staff’s recommendations. They were in summary: set a rental unit maximum sleeping occupancy of two persons per bedroom plus one additional person for every 250 square feet of living room/family room/den area with range of 2-5 additional persons regardless of living area size. Also, require the licensed occupancy limit to be stated in vacation rental ads and rental offerings. Thirdly, to require a code enforcement officer inspection at the time of reviewing and issuing an initial license and each license renewal. Finally, set a license time frame of three years.

After a lengthy discussion of what constitutes sleeping quarters, Vice Chairman Paladin agreed with everything Boling brought forward and suggested a few additions. But a rental businessperson from the audience stated that we already have parking regulations so why add something that is so unenforceable. Chairman Powell then asked if other rental businesspeople in the audience had any problems with staff’s recommendations. Another rental businessperson had a problem with the parking ordinance, but Powell said “the horse has left the barn” on that one. Powell supported Boling’s proposed ordinance and added, “That’s what we as landlords have to control.”

IRNA representative, Dr. Miles Conway, asked Boling how staff came up with the numbers for this and all other ordinance recommendations. Boling explained the process, then Conway read a statement: “We disagree with staff recommendations regarding occupancy limits of transient boarding houses operating in residential neighborhoods for reasons least of which is due diligence.” He went on to add a paragraph he had read into the minutes at the January meeting: “The reasons will be disclosed and presented to a higher authority not compromised by its members having a conflict of personal financial interest and an a priori antipathy towards local government regulations. Bona fide residential property owners are entitled to a balanced hearing not compromised by and outside the control of the Indian River County rental lobby.”

Committee member Joel Molinari responded, “Is that to say the members of this board are somehow benefiting from what we are doing? I do not own any vacation rentals.”

At the first meeting of this committee Molinari said, “I own rental homes, but not short term rentals.” He also indicated he is interested in “less government” and if there are going to be ordinances, “I would like them to be very taxpayer friendly and very property owner friendly.”

Chairman Powell commented that he was amazed by what he reads in the media (InsideVero.com is the only medium covering these proceedings), adding that “only two people on this board are involved with vacation rentals.”

Powell, committee members Molinari and Waldrop handle or own rental properties. Molinari and committee member Glenn Heran are vocal advocates of less government and fewer regulations.

Powell added that they (the committee) were all in favor of “smart” regulations. Molinari commented, “There are some bad landlords and no regulation is going to stop that.”

Another short term vacation businessperson questioned how occupancy limits could be enforced. She said, “We have Miles Conway next door to us (someone laughs) who has five cameras trained on our house that he views 24 hours a day 7 days a week. So if he sends a picture in that we have 18 people there does code enforcement then come out?  Boling said it would be more likely reported as public disturbance and the sheriff’s department would come out to note how many people were sleeping there. He acknowledged it would be very rare and parking regulations are easier to handle. This particular neighbor has rented out her ocean access home on a short term basis and Dr. Conway has frequently complained about the noise.

Heran made a motion to accept staff’s recommendations on occupancy. Then IRNA representative David Hunter said we have only heard from businesspeople involved in vacation rentals, “And they are satisfied with the proposed ordinance possibly because it isn’t going to inconvenience them. I’m speaking for people living next door to vacation rentals who are also taxpayers and voters in this county.”

He went on to add that staff had cherry picked from the Ft. Lauderdale ordinance, which is extensive due to the reputation of that town, and a lot in there could be adopted by this committee without having to reinvent the wheel. But he did agree with staff’s recommendation of two people per bedroom and Paladin’s suggestion for what constitutes a bedroom.

Powell cut him off saying, “I feel like Judge Judy. Just answer the question.”

Powell then asked a rental businessperson in the audience the size of her rental home and she said 6000 square feet, adding it was ridiculous to only allow 12 people (the maximum recommended by staff) to sleep there. Another rental businessperson suggests using the same standard as a motel, which is usually four to a room.

Carter Taylor, the third IRNA representative, stated that the IRNA undertook a study of the short term rental industry in Indian River County and applied staff-proposed regulations comparing it to other jurisdictions and found that in almost all cases, “the proposed ordinance would have absolutely no effect whatsoever on occupancy. That is, it would result in properties being overstuffed with people.” He also noted it would impact several things the committee has already discussed and passed on such as septic tanks and a clear change of use for the property from residential to commercial. He added, “I’d like to draw to the public’s attention that this is part of a pattern we’ve noticed where the committee seems to bend over backwards to benefit the short term rental industry and we have a panel here whose most vocal members are opposed to government regulations.”

Chairman Powell then interrupted him saying, “Mr .Carter, I don’t want to bring up what’s already been discussed and five people on this panel have nothing to do with short term rentals.”

Carter then said, “If I may finalize my comments. The pattern of this committee has been to accommodate the short term rental industry, which is clear by the economic study that was done which clearly tried to assess the total revenue generated by the industry….

Powell again interrupts, “Mr. Taylor, the subject is occupancy and total number of people in a bedroom.”

Taylor: This committee has done a good job of representing the less than one percent of vacation rental properties, while our organization represents the other 99 percent.

Powell: Mr. Taylor, if you are not going to talk about occupancy, I’m going to have to…

Taylor: But I have our study showing it would have no effect…”

Powell: That’s how it is with my properties. It would have no effect. We are doing exactly what staff is recommending.

Molinari: Does anyone here run a business based on anything other than what customers want?

Carter: Septic tanks are licensed for two people per bedroom and that’s what’s going into the lagoon.

Powell: Mr. Carter, we don’t want to bring up septic issues. You want to talk about septic systems? You want to talk about septic systems…

Attorney DeBraal interrupts: Wait a while, wait a while. We have a motion on the floor and a second.

Then Chairman Powell recognized another rental businessperson who said most of her bookings were two people but there needs to be some flexibility. “This is the lifeblood of this community.”

Powell said public discussion is closed. He asked for a vote on staff’s recommended occupancy standards, which passed by 7-0.

The next issue was site inspections and licensing. Vice Chairman Paladin supported a three-year license. Molinari questioned having inspections because there’s not enough staff. IRNA representative Hunter again referred to the Ft. Lauderdale ordinance that staff drew on. “They have an initial registration fee of $750 per unit. If the owner does not show up for the inspection, it costs an extra $75, just like here for building inspections. That funding could be used to hire people to do these inspections.”

Committee member Heran questioned the need for a physical inspection at all, saying photos of the premises would work and inspections could be limited to cases where there is a violation.

Powell disagreed, saying that idea doesn’t work and the community deserves more.

A rental businessperson in the audience asked who inspect hotels. DeBraal answered the state. Then Hunter said, “Technically, you are running the equivalent of a hotel or motel according to the state.”

Powell then said, “Mr. Hunter let me correct you on that. It is under a completely different classification. Vacation rentals are not treated like motels. There are similarities.”

Hunter added that they are all public lodging establishments and Powell agreed.

The committee finally voted on the issue of inspection 6-1, with only Heran voting against staff recommendations.

IRNA representative Conway asked again (asked previously but no answer at that time) how citizens can go about determining the decibel limits in the regulations regarding transient boarding houses.

Powell interrupts, saying, “We are not talking about transient boarding houses, we’re talking about vacation rentals.”

Conway answered, “Whatever you want to call it. I’m referring to the way they call it in state regulations.”

Boling answered Conway’s question by saying it is difficult to determine decibel levels and the county often relies on the sheriff’s office.

A rental businessperson who earlier commented on Dr. Conway’s five cameras aimed at the property she oversees, then said, “Mr. Conway also has audio surveillance at our property so that if we are standing in the driveway he can hear what we’re saying. Is he allowed to use this?”

Attorney DeBraal says he doesn’t know for sure other than the fact a person cannot be recorded without their permission.

Chairman Powell says he always tells his renters about the limits on music and noise in a residential area. He then added, “We can’t do anything out of animus that makes renters second class citizens.”

Dr. Conway then again brought up his question of how a citizen can determine a violation and Powell said that wasn’t a vacation rental issue, it was a noise issue. Conway again used the “transient boarding house” term and Powell said, “If you use that term you have to go to a different meeting.”

In response to a question from a rental businessperson in the audience, Powell asked Boling is there have been any complaints since the parking and event ordinances were passed. He did not recall. County Environmental and Code Enforcement Chief, Roland DeBlois answered most complaints have been about general level of activity and on the barrier island. Powell stated it was not a county-wide problem.

Hunter said some of the worst infractions are by out of state owners or managers. People here today are hands on and not a problem. He recommended having a 24-7 contact within an hour of the rental property, which is also in the Ft. Lauderdale code.

Powell answered, “Personally, I think that’s sort of ridiculous. Not many owners or managers live within an hour. That’s a perfect example of an ordinance based on animus and punitive.”

Hunter than said that it is in the Ft. Lauderdale code.

Powell responded, “We’re not Ft. Lauderdale, we’re Indian River County. Name five businesses that the owner lives within an hour of his business.”

Hunter: If you have a business running 24 hours a day, you have to have a manager on site or close by.

Powell interrupts: Name five businesses.

Carter: If the property owner is an absentee landlord and not professionally maintaining the property, professional manager services are widely available to that requirement would not be animus.

Powell responded saying from his own personal experience, he had many problems when he lived in Atlanta and had a property manager here.

A rental businessperson suggested when a renter comes in to the county to get a license they should receive a brochure with all the regulations. Then she related an experience attending a South Beach Property Owner’s Association meeting and tried to speak but got cut off and the audience kept shouting let her speak, let her speak. She thought a lot of what’s being portrayed as a problem was because of minor incidents that get worked up into an issue.

Powell then said, “It’s not that I disagree with you, but we’re getting off topic.”

Hunter then raised his hand and said, “For the record, I was at that same meeting and they were not shouting back.”

Attorney DeBraal than tells Hunter, “Enough.”

Hunter says, “This committee is already perceived as an industry lobby group and allowing her to get up and spread misinformation in front of this committee is spreading that.”

DeBraal again urged him to stop talking.

Then Powell says, “Everyone comes here with opinions and our task is to come up with regulations. Our mission is not to say whether vacation rentals are good or bad for the community.

Hunter: In your article to 32963 you say…

DeBraal: Gentlemen, gentlemen…

Powell: I can say whatever I want.

Hunter: I want to register….

DeBraal: Mr. Hunter, please be quiet!

Hunter:…a (unintelligible) of bias on behalf of the community that you presented as a pro-vacation rental committee chairmen and said yourself that you support short term rentals as good for our community. That tells me you are not a neutral party in this debate.

Powell: Mr. Hunter, please don’t say another thing.

DeBraal: Thank you.

After some further discussion on next meeting’s agenda items, Powell called for a motion to adjourn. Then Hunter says, “I have something to say that you told me at the beginning of the meeting I could bring it up at the end.

Hunter: The memo of November 2015 said that this committee adopted parking regulations and commercial event prohibitions. In fact the proposals for parking and events was proposed by the Board of County Commissioners in February 2015. In July 2015 Vero News reported that the county was working on those two ordinances.

Powell: What do you want?

Hunter: I request that Attorney DeBraal investigate for the record what was the role the committee actually played in these two ordinances and exactly when this happened. If this is incorrect information, that the Short Term Rental Advisory Committee was responsible for passing these ordinances that were enacted prior to the creation of this committee, then that information should be corrected in the public record.

Powell: I don’t want to get stuck in minutiae. I’ve been accused of that before. As a citizen, I was very involved with those ordinances.

Hunter: In your interview with Ray McNulty you said the ordinances we recommended were actually more restrictive than the ones county staff proposed. The “we” implies it was the committee.

Powell: That’s minutiae.

Hunter: It’s not minutiae. You claimed the committee came up with two ordinances this committee had nothing to do with.

Powell: Okay, great, you made your point.

Conway: I think you have been dogmatic and rather arbitrary in your treatment of Mr. Hunter and Mr. Hunter was merely making a point, that this article is misleading.

Powell: Mr. Conway, we’re not bringing up the media. If you want to bring up the media, you don’t want to go there because I have been misrepresented…

Conway: You are chairman of a sitting committee…

Powell: Do I have a motion for adjournment.

It was moved and passed. The meeting ended.

This reporter then sat down with Chairman Powell. A few minutes later, Dr. Conway walked up and faced me.

“Excuse me,” he addressed me.

Powell leaned forward in his seat and said to Dr. Conway this is a private conversation.

Conway points his index finger, you are no longer chairman so shut up.

Conway then said to me, “Don’t listen to him. Go and listen to what Solari actually said on the Bob Soos Morning Show yesterday.”

Powell again said we’re in a private conversation

“I don’t give a tinker’s cuss,” said Conway.

Then Conway turned to Powell and part of his comments were indistinguishable because of other people talking in the room. He did say, “You are lucky you were not a chairman of a rugby club, because if you were chairman after the way you spoke to him (Hunter) you would need the services of Dr. DeWaters (a retired dentist and committee member). You are the chairman of a civic association…You are supposed to be fair…You are dishonest as hell…You are not the head prefect of Indian River County rentals you are not the rental czar, Mr. Poster Boy. You arrogant little man.”

Then Dr. Conway left and I spoke with Powell for about 10-15 more minutes.

He and Powell had spoken for about one minute.

Editor’s note: Four days after this meeting Powell sent his email to Deputy County Attorney Bill DeBraal saying he was “assaulted” by Dr. Conway and was “terrified” of him. Commissioner Solari followed up on last Wednesday’s Bob Soos Show appearance using the term “assault” and reading Powell’s email to DeBraal. See http://insidevero.com/2016/02/20/more-blips-and-bits-about-short-term-rentals/ and http://insidevero.com/2016/02/14/not-in-my-backyard-guess-again/#more-36499