TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Anne McIntosh, Community Development Director
Andy Sywak, Community Development Project Manager
SUBJECT:Title
Discussion Regarding Short-Term Rentals (Continued from the February 6, 2018 City Council Regular Meeting) (Community Development Director McIntosh).
DISCUSS AND PROVIDE DIRECTION
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council:
1) discuss goals and concerns of a short-term rental policy;
2) review and discuss policy/program options for short-term rentals, including adopting the last Planning Commission recommendation; and
3) provide direction for Zoning Code and Local Coastal Program (LCP) Amendments. Based on the results of the discussion, staff can return with an ordinance based on City Council input and suggestions.
EXECUTIVE SUMMARY:
In June 2015, the City Council approved amendments to the City's Municipal Code reinforcing the City's Zoning Code prohibition of short-term vacation rentals in Residential Zones. (Short-term rentals are permitted in the commercial zones.) In a strategic planning session in May 2017, the City Council directed staff to revisit this policy.
Although short-term rentals have revenue potential through Transient Occupancy Tax (TOT) collection, there remain many questions about the most effective ways to enforce regulations. To prepare for this discussion, the City Council requested that staff look at options for possibly allowing limited short-term rentals, while minimizing impacts to residential neighbors and enhancing revenues.
FISCAL IMPLICATIONS:
With the current prohibition, the City currently receives no Transit Occupancy Tax (TOT) from short-term rentals.
If permitted, the City would receive TOT. Any increase in revenue would depend on the number of registered property owners who would be allowed to host short-term rentals,...
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