1. 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

2. 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.

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

4. 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

5. STR Map

6. 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

7. 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

8. 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

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