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HomeMy WebLinkAboutItem 4.2 - 3283 Short-Term Rentals Page 1 of 3 STAFF REPORT CITY COUNCIL DATE: June 9, 2020 TO: Honorable Mayor and City Councilmembers FROM: Linda Smith, City Manager SUBJECT: Informational Report on Short-Term Rentals Prepared by: Kristie Wheeler, Assistant Community Development Director EXECUTIVE SUMMARY: The City Council will receive an informational report on short-term rentals (STRs) in the City of Dublin. STRs refer to rooms or residences that are rented and occupied for short periods of time, typically less than 30 days. This report includes information on how the City currently regulates STRs, approximately how many STRs exist in Dublin, and how other cities in the Tri-Valley regulate STRs. STAFF RECOMMENDATION: Receive the report. FINANCIAL IMPACT: None. DESCRIPTION: Background On November 5, 2019, the City Council requested that Staff prepare an informational report regarding short term rentals (STRs). STRs refer to rooms or residences that are rented and occupied for short periods of time, typically less than 30 d ays. A STR can be hosted or non-hosted. Hosted STRs are rentals where the homeowner or primary occupant of the residence is present during the rental period. Non -hosted STRs are rentals where the homeowner or primary resident is absent during the rental pe riod. Hosted STRs and non-hosted STRs are often regulated differently given the unique impacts associated with such use of a residence. When a homeowner or primary resident is present, parking, noise, and other issues are less likely. However, non- hosted STRs are sometimes used for gatherings such as parties or family reunions resulting in a large number of people occupying the residence and the potential for impacts to neighbors. In some jurisdictions, hosted STRs are permitted while non - hosted STRs are prohibited. Page 2 of 3 The following provides an overview on how the City currently regulates STRs, the approximate number of STRs in Dublin, and how other jurisdictions in the Tri -Valley regulate STRs. Short Term Rental Regulations The Zoning Ordinance regulates STRs under the Bed and Breakfast use type. Dublin Municipal Code (DMC) Section 8.08 defines a Bed and Breakfast as follows: The term Bed and Breakfast Inn shall mean a transient lodging establishment (other than a hotel or motel) primarily engaged in providing overnight or otherwise temporary lodging for the general public and may provide meals to those receiving transient lodging. A Bed and Breakfast requires approval of a Conditional Use Permit by the Planning Commission. In addition, a Bed and Breakfast is required to obtain a Dublin business license and pay a Transient Occupancy Tax (TOT). Based on a review of City records, there are no approved Bed and Breakfast uses. It should be noted that accessory dwelling units (ADUs) are prohibited from being rented for less than 30 days (DMC Section 8.80.040.K.2); thus, prohibiting ADUs from being used as STRs for stays that are less than 30 days. Since 2015, the City has received complaints regarding nine STRs. A common concern has been seeing unknown persons at the property. In each case, the City contacted the property owner and advised them of the requirement to obtain a Conditional Use Permit to operate an STR (as a Bed and Breakfast use type) and the property owner elected to cease leasing the property on a short-term basis. Prior to the Shelter in Place Order, Staff searched the Airbnb and VRBO online hosting platforms and found approximately 45 STRs in the City; about half appear to be hosted while half appear to be non-hosted units. Given the low volume of complaints or concerns with STRs in Dublin, code enforcement, thus far, has been on a complaint basis. Additionally, on-line hosting platforms do not provide specific addresses or locations of STRs and do not provide such information when aske d, making proactive enforcement difficult. However, there are companies, such as Host Compliance, that have technological tools and experience to help cities with compliance monitoring and enforcement solutions as a fee-based service. Regulations by Tri-Valley Jurisdictions Below is a summary of the STR regulations for the Town of Danville, and the cities of Livermore, Pleasanton, and San Ramon. Town of Danville The Town of Danville adopted an ordinance in 2016 to prohibit STRs. The ordinance defines STRs as the rental or lease of any primary or secondary dwelling unit, or any portion thereof, for a period of less than 30 days. City of Livermore The City of Livermore does not have regulations in place that address STRs. Page 3 of 3 City of Pleasanton The City of Pleasanton does not have regulations in place that address STRs. Their municipal code states that no more than two guest rooms in a single -family home may be used for lodging or boarding. In addition, Pleasanton allows small bed and breakfast inns, which have three to five guest rooms with the approval of a Conditional Use Permit. City of San Ramon The City of San Ramon classifies STRs as a Bed and Breakfast which provides lodging for less than 30 days. A Bed and Breakfast is allowed in low density residential zoning districts with approval of a Use Permit by the Planning Commission. However, they are not permitted in medium- and high-density residential zoning districts. Additionally, a maximum of six guest rooms may be rented, and the property owner must be present unless this requirement is waived by the Planning Commission. To date they have not issued any Use Permits for STRs. STRATEGIC PLAN INIATIVE: None. NOTICING REQUIREMENTS/PUBLIC OUTREACH: None. ATTACHMENTS: None.