Short-Term Rental draft Ordinance Good evening Chair Mesiti-Miller and members of the Planning Commission. My name is Scott Harriman. It is an honor to be here this evening to present the staff report on a draft Ordinance pertaining to short-term rentals in the City of Santa Cruz. Planning Commission Special Meeting June 29, 2017

Short-term rentals Finding the balance By now you are aware of the controversy surrounding short-term rentals throughout California, large cities throughout the US and popular destinations around world including Santa Cruz. Since taking up this topic in Santa Cruz, we have seen flyers and websites, and received hundreds of correspondence and comments expressing various opinions, such as Airbnb is destroying our City, heard pleas to Let us host, and that the City’s proposed Ban on STR will cost the City and local business $Millions annually. The proposed Draft Ordinance before you this evening does not propose to Ban STR, nor do we believe that this is destroying our community. With this draft ordinance, we are attempting to find a balance, recognizing that 2nd and vacation homes have always been a part of our coastal community; and at the same time establishing rules that protect neighbors and neighborhoods, and preserve our housing and rental housing stock the best we can. We recognize that there are financial impacts and incentives at play on both sides of the issues. However, at the end of the day we are in this together, we are neighbors and we all part of the greater Santa Cruz community. This is a challenging topic for sure, and we look forward to receiving comments and direction from the Planning Commission have to say as we work toward finding that balance. This is a draft ordinance, not a final version; it’s a place to start a conversation with the Planning Commission.

Goals For tonight Receive Public Comments Discuss Draft Ordinance Receive direction from PC on the main concepts

Short-Term Rental Background and process SurveyMonkey Questionnaire Citizen Outreach Sept 2016 City Council Review Moratorium Oct 2016 STR Subcommittee Dec 2016 – April 2017 Final Report Prepared Planning Commission June/July 2017 Draft Ordinance Review Recommendation to CC City Council Ordinance Review and Adoption On-line hosting platform map

STR Map

STR Subcommittee Recommendations Definitions: Hosted/Non-Hosted Principal Residence Existing STR Limitations and Regulatory Framework: Grandfather Existing STR (approx. 303+) Allow New Hosted STRs – No cap Allow 75 New Non-Hosted STRs Use-It-or-Lose-It Set License/Registration Fee to incentivize use Not Transferable Revocation Procedures Occupancy Limits Limit of two new licenses per person Rental Inspection Program Rules of Conduct Data Gathering Use registration process to gather data Program Reevaluation Further Study Parking Limit by Proximity and Location Enforcement Substantial Fines Keep Regulations Simple Use Third-Party Monitoring Work with Hosting Platforms

Short-Term Rental Draft Ordinance Components Property Development Standards On-Site Parking (new and renewed STRs) One STR per APN Not allowed in ADU Additions & added bedroom(s) subject to compliance review Operational Standards (Ground Rules) Max Overnight Occupancy Max Number of Vehicles Noise Limits No Special Events Local Contact Person Posting of Rules Trash/Recycling Procedures Signage during STR use Cause for Denial, Revocation, Suspension Enforcement Procedures Penalties per Muni Code Evidence of violations Inspections allowed False reporting on STR activity is unlawful Definitions Hosted STR: Owner must be present Permit to Operate Application Evidence of TOT Payment(s) Simple Plans/Photo Processing Fee 400 STR Unit Cap Grandfather Existing STRs (300+) New Permits subject to all standards Non-Conforming units will not be eligible for renewal after five-year term Ownership Limit New or renewed STR Permits limited to one per person/owner Conditions of Approval Revocable TOT Use Required: 3 of past 5 years Advertising to list STR Permit Annual Rental Inspection 5-Year Term of Approval

Goals For tonight Receive Public Comments Discuss Draft Ordinance Receive direction from PC on main concepts: Grandfathering existing STRs Simplify Initial Program Roll-out Gather Data Cap of 400 STR units Combine Hosted/Non-Hosted Limit STR permits to one/person Five-year term and renewal

Short-term rentals Next Steps July 20 PC Thank you!