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REQUEST FOR COUNCIL ACTION Date:March 21, 2022 Item No.:7.c Department ApprovalCity Manager Approval Item Description: Receive update on licensing of short-term rentals 1 B ACKGROUND 2 On February 8, 2021, the City Council approved Ordinance 1596. This ordinance created Chapter 909, 3 Licensing of Short-Term Rentals,inCity Code. 4 As a reminder, short-term rentals are defined as follows: 5“A non-owner-occupied dwelling unit rented for a period of thirty (30) consecutive days or st 6 less. Rentals less than seven (7) consecutive days are prohibited between October 1and May stst 7 1and rentals less than ten (10) consecutive days are prohibited between May 1and October st 8 1. The use of recreational vehicles, campers or other similar vehicles as rentals shall be 9 prohibited. Short-term rental periods from eight (8) to thirty (30) consecutive days require a 10 license under this Chapter.” 11 At the time of ordinance adoption, the City Council requested an update after the first year of activity. 12 The purpose of this Council discussion is to provide that update. 13 Upon adoption of the ordinance, Community Development staff sent letters and/or emails to all 14 registered rentals informing owners of the new license requirement for short-term term rentals. This 15 amounted to more than 500 notifications. The City also created a license application within the City’s 16 online permit software, Accela, with said notice informing owners how to apply online. 17 In May of 2021, resident complaints were received regarding 257 South McCarrons Blvd being used 18 as a short-term rental without the required license. After inquiry to the owner by Community 19 Development and Police department staff, it was discovered this rental occurred without the required 20 license, which prompted the owner to apply. 21 Three licenses were applied for and approved by Council in 2021: 22 1885 Shady Beach Ave. –approved 6/22/21; expiration 6/22/22 23 257 South McCarrons Blvd –approved 7/14/21; effective 10/10/21(effective date was 24 delayed in accordance with Section 909.06.G); expiration 7/14/22 25 1901 Shady Beach Ave –approved 9/13/21; expiration 9/13/22 26 Beyondthe May 2021complaintnoted above, and as of the writing of this report, there havebeen no 27 nuisance or property maintenance violations during the licensing period for any of these properties. 28 Staff is also not aware of any Police calls for service to these addresses related to rental activity. Page 1of 2