Columbia council reviews capital projects, updates short-term rental rules

As the 2025 fiscal year approaches, the Columbia City Council sought public feedback Monday on capital improvement projects slated for the next year. Further updates are happening to short-term rental rules, as well.

The city's capital improvement plan is a multi-year document, which presents projects under various funding sources, such as a capital improvement sales tax or parks sales tax, said Matthew Lue, finance director. The capital improvement tax is up for its 10-year renewal on Aug. 6.

Discussion on projects started in departments in January and by March final requests are submitted by departments. The 2025 capital improvement document lists all projects and funding sources. A vote on the 2025 plan will coincide with the council's vote on the 2025 budget, so Monday was just a public hearing.

Certain projects were highlighted, such as the Columbia Regional Airport terminal phase 2 project, will upgrade a building just south of the terminal to provide offices for airport administrative staff, Transportation Security Administration staff and car rental services. The city has a CIP dashboard, CIP search page and McBaine Water Treatment Plant improvement project dashboard.

Public comments Monday urged the council to ensure road grading projects are done equitably regardless of of neighborhood financial background.

Short-term rental rule changes

Ward 6 city council member Betsy Peters has previously recused from votes on short-term rental rule changes since she was operating one up until May. She is converting her short-term rental to a long-term rental and so took part in discussion and voting Monday.

A rule that failed to gain support by the council in May was related to business licensing and it was up for discussion and a vote again Monday.

Five council members were present at the May 20 meeting, but with Peters recusal at the time, only four members (a quorum) voted and the no vote from Ward 2 council member Lisa Meyer killed the business license rule adoption at the time. Ward 5 council member Don Waterman was absent May 20 and the Ward 1 seat is vacant after Nick Knoth was recalled.

Short-term rentals are places of public accommodation and is different from zero-impact home-based business, and under state law, the city can impose a business license requirement on short-term rentals, said city attorney Nancy Thompson. Meyer is concerned a business license requirement could be an unfair burden on short-term rental operators, which is on top of a certificate of compliance requirement, making comparisons to hotel rules.

Short-term rentals, hotels and long-term rentals are three separate pieces and requirements sought for short-term rentals are part of a safety issue, Lue said. Hotels still have certain occupancy and condition requirements, too, said Todd Guess, business services manager. The business license rule imposes an insurance requirement for short-term rentals.

Business licenses are a check mark and a centralized location for all short-term rental requirements, said City Manager De'Carlon Seewood, and so the city can respond to any potential issues at a short-term rental and gather data on short-term rentals. The city could do a moratorium on a business license fee, but keep the requirements of the license application, he said.

Resident Valerie Carrol commented that business license requirements not only provide safety for experienced operators, but also the mom and pop operators. Carrol is on the city's Planning and Zoning Commission, but this was not an issue by the commission and she is running for the vacant Ward 1 council seat. Columbia real estate agent Alice Leeper urged the council to step back and do more research on insurance types in regard to short-term rentals and differences with other transient facilities.

Certificates of compliance are a separate issue from insurance requirements said Shawna Neuner with Columbia Board of Realtors. She urged the board to review the insurance requirement that could mean the city verify a homeowner's insurance has the necessary riders or endoresements for short-term rentals and not a separate type of business insurance.

Thompson agreed that the city could make adjustments on the insurance requirement with the homeowner insurance rider or endorsement for short-term rentals, though leaving the door open for a person to get business liability insurance. So, the license fee moratorium through July 1, 2026 and insurance rider amendments passed 4-2, leading to the bill's over all passage, also 4-2. Meyer and Ward 5 council member Don Waterman voted against the amendments and passage.

The council also discussed a taxation rule that integrates bed and breakfast establishments and short-termrentals into the definition of 'hotel, motel or tourist court,'" per a staff memo to the council. A Public comment supported the taxation rule, which passed unanimously.

Charles Dunlap covers local government, community stories and other general subjects for the Tribune. You can reach him at cdunlap@columbiatribune.com or @CD_CDT on X, formerly Twitter. Subscribe to support vital local journalism.