Update: Three more positions approved for VHR Program

Douglas County’s vacation home rental program will expand by a third in order to catch up with the voluminous paperwork it has generated in just its first six months.

“Frankly, we are drowning in paperwork,” Assistant County Manager Jenifer Davidson said on Thursday. “This program is extremely dynamic and very complex. We need a team behind the code enforcement team to ensure this paperwork is being done.”

Davidson brought three binders that would come close to a yard in height to illustrate the amount of paperwork the program has generated so far.

She said the Vacation Home Rental Advisory Committee could expect to receive a ream of backup material each meeting as they process Tier 3 permit requests.

“I can assure you we have code enforcement officers at the Lake daily,” she said. “But we cannot be the best team we can be without administrative support staff behind this team.”

The current staffing for the program includes a code enforcement supervisor, three code enforcement officers and two deputies. The county is advertising for the third code enforcement officer position.

Filling the positions will be a challenge even with Thursday’s authorization.

Davidson said it’s taking 3-4 months for the county to fill positions.

The program is expected to pay for itself through permit fees. While vacation home rentals are required to pay transient occupancy taxes, those funds are already allocated through state law.

According to the county, the program generated $281,956 from fines, fees and penalties through Dec. 29 and will generate another $200,000-$300,000 through June 30.

Personnel costs for the program were projected to be $404,713 when the original fees were set. The increase in personnel would bring the budget to $626,513.

Davidson said she expects to include fee increases for the permits in the budget process for next fiscal year.

“This program has been a real pain in the butt, one to vote on and implement, we know that as a board, two, to administrate it and three to enforce it,” Commissioner Danny Tarkanian said. “We need to make sure it’s worthwhile and we’re not toing to be out of pocket to pay for it.”

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County officials are seeking to beef up their vacation home rental program with three new full-time positions, including a manager.

County commissioners are being asked to authorize creation of a manager, an office specialist and a counter technician.

The counter technician wouldn’t be added until July, but all three would add up to $233,757 for the 2022-23 fiscal year.

The other two positions would cost the county $47,033 this fiscal year and would be paid for from salary savings in the Community Development Department and anticipated permit and penalty payments.

According to the county, the program generated $281,956 from fines, fees and penalties through Dec. 29 and will generate another $200,000-$300,000 through June 30.

Personnel costs for the program were projected to be $404,713 when the original fees were set. The increase in personnel would bring the budget to $626,513.

“If approved, the addition of staff will likely require an increase in VHR permit fees so that the fees support program administration,” staff members said. “A resolution to create a new fee schedule will be presented at a future meeting as part of the county’s overall budget process.”

The current staffing for the program includes a code enforcement supervisor, three code enforcement officers and two deputies. One of the code enforcement positions is vacant.

County commissioners are also scheduled to hear two appeals of decisions by the Vacation Home Rental Advisory Board in December.

The panel denied a Tier 3 permit for Keith Novotny, who was seeking a total occupancy of 12 people for the Zephyr Cove home which has six bedrooms. While the home doesn’t have trash service, Novotny owns a cleaning company and said he’s on the waiting list for a large bear box.

The other appeal is of a $5,000 fine for operating a vacation home rental without a permit on a home on the Valley side of Kingsbury Grade.

Ryan Cates reportedly rented the Sierra Shadows home out 35 times. According to the county, Cates admitted renting out his home to guests without a VHR permit.

He said that was operating a bed and breakfast, something that requires a special use permit approved by the planning commission, which he also doesn’t have.

He argued there is nothing precluding him from receiving a special use permit.

Vacation home rentals are not allowed in the East Fork Township, which includes all of Douglas County outside of the Lake Tahoe Basin. A bed and breakfast is allowed with a special use permit, but is subject to a public hearing and can be denied by the planning commission.