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REQUEST FOR COUNCIL ACTION Date: February 8, 2021 Item No.: 7.a Department ApprovalCity Manager Approval Item Description: Consider Adopting Ordinances regarding amendments to Chapter 907, Rental Registration and creating a new Chapter 909, Short-Term Rental Licensing 1 B ACKGROUND 2 August 24, 2020: The City Council engaged in a preliminary discussion regarding short-term rentals 3 and their impact on neighborhoods. The Council directed staff to provide options to regulate short- 4 term rentals. Extensive public testimony was provided during this discussion. These materials, both 5 the Council report, attachments, and meeting minuteswere provided in subsequent City Council 6 packets. 7 September 28, 2020: The City Council reviewed three options, in draft ordinance form,regarding 8 regulationof short term rentals and provided direction to staff in terms of which option to pursue 9 further and how to refine those options to meet the collective thought of Council. Extensive public 10 testimony was provided during this discussion. These materials, both the Council report,attachments, 11 and meeting minuteswere provided in subsequent City Council meeting packets. 12 January 11, 2021: The City Council reviewed updated draft ordinances that: 1) amended the rental 13 registration requirements in Chapter 907,and 2) created a new Chapter 909 requiring a license for 14 short-term rentals. Extensive public testimony was provided during this discussion and the prior two 15 meeting packets were provided as part of the Council report and attachments. Meeting minutes from 16 this discussion are provided at Attachment D. While the draft ordinance amending Chapter 907 17 garnered little discussion, the Council did directstaff to make the following additional revisions to the 18 Ordinance amending Chapter 909: 19 Create different minimum stays for on-season rentals and off-season rentals. Those included st 20 a minimum stay of seven days for off-season, which is considered between October 1and stst 21 May 1and a minimum stay of ten days for on-season, which is considered between May 1 st 22 and October 1. See Section 909.02.G. 23 Reduce the number of violations in new Chapter 909, Short-Term Rental Licensing, from three 24 to two within 180 days before a suspension is imposed (or revocation if two prior suspensions 25 occurred). It should be noted that three violations was kept in Chapter 907, Rental Registration. 26 See Section 909.09.A.1. 27 Add a penalty if an owner/operator was caught engaging in short-term rentals without the 28 required license. As currently written, if an owner/operator applies for a license after being 29 caught engaging in short-term rentals without a license, the license is held for 90 days. So, the 30 penalty is the owner/operator has to wait 90 days before engaging in short-term rentals. Staff 31 would also point out a 180 day grace periodis provided after enacting the ordinance so that 32 the public has a reasonable amount of time to become aware of the new regulations and apply Page 1of 3