REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Oliver Chi, City Manager
PREPARED BY: Ursula Luna-Reynosa, Director of Community Development
Subject:
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Adopt Resolution No. 2021-18 (Supplemental Fee Resolution 13), establishing Short-Term Rental (STR) Permit Fees; adding a Code Enforcement Officer I and Code Enforcement Officer II to the Table of Organization; and amending the City's Fiscal Year 20-21 Budget to the extent necessary to accommodate such expenditures
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Statement of Issue:
The City Council recently approved Ordinance No. 4224 establishing regulations, standards, and a permitting process for Short-Term Rentals (STRs), which went into effect on February 19, 2021. In order to implement these new processes, the City needs to establish permit application fees to offset the costs of the program, including reviewing applications, issuing permits, and staffing to monitor and enforce short-term rentals. Staff is seeking authorization to add two Code Enforcement Officers to help perform these functions, and to amend the Fiscal Year 2020-21 Budget to incorporate STR-related changes.
Financial Impact:
The anticipated revenue impact of adopting Short-Term Rental permit fees is:
* Initial Year: $210,000
* Future Years: $109,000
Revenues will offset the costs of permit application review and processing. Actual revenues will vary based on permit applications received. If regulation is required beyond the level assumed for typical permit review and approval, staff may bill hourly for code enforcement regulatory efforts.
The fully-burdened rate of the two additional Code Enforcement Officers is approximately $232,000 per year. It is anticipated that the City will achieve full cost recovery between the permit fee, cost recovery, and Transient Occupancy Tax revenues generated by the Short-Term Rental program.
Recommended Action:
recommendation
A) Adopt Resolution No. 2021-18, "A Resolution ...
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