Attachment 2PREPARED BY: HOLLY ZAPPALA
Management Analyst
Reviewed by: Town Manager , Assistant Town Manager, and Community Development Director
110 E. Main Street Los Gatos, CA 95030 A408 -354 -6832
www.losgatosca.gov
TOWN OF LOS GATOS
TOWN COUNCIL POLICY COMMITTEE
MEETING DATE: 10/18/2018
ITEM NO: 4
DATE: OCTOBER 12 , 2018
TO: COUNCIL POLICY COMMITTEE
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: DISCUSS POTENTIAL REGULATIONS FOR SHORT -TERM RENTALS (STRs)
RECOMMENDATION :
Discuss potential regulations for short -term rentals (STRs).
BACKGROUND :
On October 2 , 2018, a staff report regarding short -term rentals (STRs) was brought to the Town
Council for initial discussion and direction. Council voted unanimously to refer the item to the
Policy Committee for further discussion with input from Council members. A copy of the
Council Staff Report is available as Attachment 1.
Council requested additional research regarding how neighboring municipalities have
responded to this issue and considerations that those jurisdictions took into account when
formulating their approaches . Council also sought an estimate of the anticipated revenue from
transient occupancy tax (TOT) associated with STRs if the Town were to allow and regulate
STRs.
DISCUSSION :
The policy responses of municipalities comparable to Los Gatos generally fall into one of three
categories: (1) outright prohibition of STRs, (2) TOT voluntary collection agreements with
Airbnb without specific policy allowing/regulating STRs , and (3) policy adoption to allow and
regulate STRs. Following is a summary of findings from staff ’s review of neighboring jurisdiction
staff reports and/or discussions with neighboring jurisdiction staff.
Attachment 2
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DISCUSSION (Continued):
1.Outright prohibition of STRs
Some local municipalities have chosen not to allow STRs within their jurisdictions. STRs are
banned in both Campbell and Saratoga.
Campbell
Campbell’sApositionAon STRs is nearly identical to the status -quo position of the Town of Los
Gatos. STRs are not a permitted use in the Campbell Zoning Ordinance, which by default
prohibits them from occurring in Campbell. Hotel -type uses are not permitted in residential
zones, which prohibits homeowners from renting out their houses for periods of less than
30 nights. Campbell Code Enforcement enforces this ban on a complaint -driven basis. They
receive relatively few complaints concerning STRs. There has been no interest within the
City of Campbell in addressing the topic of STRs further , so their ordinance continues to
remain silent on the subject. Campbell does not collect any TOT revenue from STRs.
Saratoga
Saratoga bans STRs outright within its city. The Saratoga Municipal Code is similar to those
of Los Gatos and Campbell in that it does not allow STRs by -right as a permitted use in any
residential zoning district. Saratoga staff examined the issue and brought it to the City
Council in April, 2015 (see Attachment 2 ). Ultimately, the City chose to uphold the ban on
STRs in order to avoid increased traffic, noise, and the high turnover of renters . Residents
preferred to maintain their relatively quiet streets and valued neighborhood stability and
privacy. Saratoga enforcement efforts include the creation of a flyer and a page on their
website dedicated to providing information to the community regarding the ban on STRs
see Attachment 3 ). They currently receive approximately one or two STR -related
complaints per year and do not collect any TOT revenue from STRs .
2.TOT voluntary collection agreement with Airbnb with no ordinance amendment to
allow/regulate STRs
There are several neighboring jurisdictions that have chosen to enter into agreements with
Airbnb wherein Airbnb collects TOT on behalf of its hosts and remits directly to the
municipality, while not amending their Municipal Ordinances to allow or regulate STRs.
Both Santa Clara and Morgan Hill have chosen this approach.
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DISCUSSION (Continued):
Santa Clara
The City of Santa Clara does not regulate STRs. In 2015, the City Council authorized the City
Manager to execute a voluntary tax collection agreement with Airbnb for the collection of
theACity’sATOTAonAshortAtermArentals (see Attachment 4 ). While the City has an agreement
with Airbnb, there are other sharing economy rental sites that operate within the City of
Santa Clara which do not have a TOT agreement with the City. Santa Clara has also not
conducted any due diligence to ensure receipt of TOT from Airbnb, although the City has
acknowledged that an upcoming review is warranted and planned (see Attachment 5 ).
Santa Clara’sAZoningACodeAdoesAnotAcallAoutAanyArestrictionsAandAtheArelevantAZoningACode
sections do not include provisions disallowing uses not mentioned, unlike other parts of
their Code.ATheACity’sATOTAdefinitionsAareAbroadAenoughAtoAapplyAtoASTRs.A Given the number
of rentals in Santa Clara (approximately 130 at the time of the report), the anticipated
revenue,AandA irbnb’sAwillingnessAtoAenterAintoAaAvoluntaryAtaxAcollectionAagreement,AstaffA
recommended the City enter into the agreement with Airbnb and Council approved it . One
yearAintoAtheAagreement,ASantaAClara’sATOTArevenueAwasA$291,789.26 (see Attachment 6 ).
This was significantly higher than the initial projected annual TOT revenue of $60,000.
Morgan Hill
Morgan Hill also chose a passive approach to the issue of STRs. Although they are not
allowed in Morgan Hill, the City is aware that they are still occurring. There are
approximately less than 50 listings on Airbnb. The City chose to enter into an agreement
with Airbnb wherein Airbnb collects the TOT on behalf of its hosts and remits directly to the
City (see Attachment 7 ). This was a strategy to collect the TOT revenue since the STRs ,
though not allowed, are still occurring within the City. Morgan Hill also created a system for
hosts using platforms other than Airbnb to register and pay TOT independently (see
Attachment 8 ). To date, no one has registered. If no STR -related complaints are received,
the City does not get involved in the operation of the STRs ; however, if complaints are
received, the City will enforce the ban on STRs.
Palo Alto
Palo Alto has a similar strategy to Morgan Hill, noting that the TOT applies to homeowners
or companies who may be renting bedrooms or dwelling units on a short -term basis, even if
thisAactivityAviolatesAtheACity’sAZoningAOrdinance.A
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DISCUSSION (Continued):
3.Policy adoption to allow/regulate STRs
In addition to the aforementioned policy choices, other local municipalities have chosen to
allow and regulate STRs in their jurisdictions. When STRs are allowed, there are a number
of policy considerations to be taken into account when establishing rules to regulate them.
Some of the major considerations include: the type of rental (hosted vs . un -hosted),
geographic location (confining them to certain zones), limiting the number of rental days
allowed per year, limiting the number of renters allowed at one time, regulating parking,
and limiting commercial/assembly uses. Sunnyvale and Los Altos Hills have both chosen to
allow and regulate STRs within their jurisdictions.
Sunnyvale
Sunnyvale allowed and regulated STRs in 2015 (see Attachment 9 ). The City entered into a
voluntary TOT collection agreement with Airbnb in 2018 (see Attachment 10 ). Sunnyvale
staff also created a webpage with STR information, including an STR rental application and
TOT registration form for hosts (see Attachment 11).
The City of Sunnyvale considered the impact on the housing stock and chose to not permit
un -hosted rentals as a way to protect housing stock in the City. Un -hosted rentals can have
a greater impact on the rental housing market, as owners may seek to purchase and rent
multiple properties concurrently. A requirement for the host to reside on -site limits hosts
to only rent a portion of their primary dwelling or an accessory dwelling unit on the
property. Sunnyvale also considered neighborhood compatibility concerns when
formulating STR regulations. They chose to limit the number of renters at one time and
reserved the ability to revoke an approved STR . In addition to addressing housing stock
concerns the city also required the host to reside on -site to handle nuisance concerns as a
way to address the potential neighborhood compatibility issues. The highlights of
Sunnyvale’sAOrdinanceAare as follows:
STRs must be permitted through the City
Maximum of four overnight lodgers (not including minor children)
Renting to unaccompanied minors is prohibited
Host shall reside on -site
Host shall comply with all permit conditions, laws , and codes
Rental space must be suitable for occupancy (sleeping space in tents, sheds,
vehicle s , etc. is not permitted)
Host shall obtain a business license
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DISCUSSION (Continued):
Host shall be responsible for collecting/remitting TOT
Host shall be responsible for ensuring the property does not become a nuisance
STR approval may be revoked by the Director
The full ordinance may be found in Attachment 12 and minutes from the Council meeting
are in Attachment 13 .
Los Altos Hills
The Los Altos Hills Town Council also voted to allow and regulate STRs in early 2018 (see
Attachment 14 ). The Council considered several concerns including preserving
neighborhood integrity and not allowing developers to use residential properties for
commercial enterprises. The Council discussed the goal of allowing responsible rentals but
also providing protection for neighbors from nuisance situations. The importance of STRs
being effectively controlled in neighborhoods was noted . Council expressed interest in not
denying homeowners the right to do what they wish with their homes , but to deny
landowners the ability to misuse their property to the detriment of neighbors.
Los Altos Hills approved a number of regulations to preserve neighborhood compatibility ,
includingArequiringAtheArentalApropertyAtoAcontainAtheAowner’sAprimaryAresidence ,
prohibiting commercial uses, and requiring parking to remain on -site.
The highlights of the approved Los Altos Hills Ordinance regulating STRs is as follows:
One STR per property is allowed
TheASTRApropertyAshallAcontainAtheAowner’sAprimaryAresidence
Host shall comply with all permit conditions, laws , and codes
Rental space must be suitable for occupancy (sleeping space in tents, sheds,
vehicle s , etc. is not permitted)
Events and commercial uses are prohibited
All parking must be on -site
Host shall be responsible for ensuring the property does not become a nuisance
STR license will be revoked after three validated nuisance violations
The complete ordinance may be found in Attachment 15 and Council meeting minutes in
Attachment 16 . Los Altos Hills does not have a TOT and is not planning on instituting one
for STRs at this time. However, they are currently researching and interested in contracting
with a third -party firm to identify all STRs in Town for online registration and to provide a
24/7 rental hotline for complaints.
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DISCUSSION (Continued):
Town staff has been in contact with Airbnb and they have committed to send pro forma data
for the past year regarding STRs in Los Gatos. The estimated potential TOT numbers for Los
Gatos are forthcoming and will be shared once received.
CONCLUSION AND NEXT STEPS :
The Policy Committee should discuss and determine if the status -quo approach to banning
short -term rentals in Los Gatos should be maintained or if regulations should be drafted to
allow STRs.
Among the options for consideration are:
Make no changes to the current Town ordinances and create enforcement tools to
encourage compliance;
Create an ordinance regulating STRs in the Town of Los Gatos and rely on owners/hosts
to report and remit TOT directly to the Town;
Create an ordinance regulating STRs in the Town of Los Gatos and enter into a voluntary
TOT collection agreement with Airbnb wherein Airbnb collects and remits TOT directly
to the Town on behalf of its hosts; and
Enter into a voluntary TOT collection agreement with Airbnb wherein Airbnb collects
and remits TOT directly to the Town on behalf of its hosts, while not changing the
current Town ordinances.
Staff looks forward to the direction of the Policy Committee.
FISCAL IMPACT :
No fiscal impact at this time.
Attachments :
1.September 27, 2018 Los Gatos Council Report
2.April 1, 2015 Saratoga Council Report
3.Saratoga Short -Term Rental Flyer
4.September 29, 2015 Santa Clara Council Report
5.Santa Clara Response to Council Inquiries
6.Santa Clara One Year Review of Airbnb TOT
7.May 16, 2018 Morgan Hill Council Report
8.How to Guide for Short -Term Rentals in Morgan Hill
9.September 15, 2015 Sunnyvale Council Report
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10.June 12, 2018 Sunnyvale Council Report
11.Sunnyvale Short -Term Rental Webpage and Forms
12.Sunnyvale Municipal Code Chapter 19.76
13.September 15, 2015 Sunnyvale Council Meeting Minutes
14.March 22, 2018 Los Altos Hills Council Report
15.Los Altos Hills Ordinance 575
16.April 20, 2017 Los Altos Hills Council Meeting Minutes
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PREPARED BY: ARN ANDREWS, Assistant Town Manager
HOLLY ZAPPALA , Management Analyst
Reviewed by: Town Manager, Assistant Town Manager, Finance Director, and Town Attorney
110 E. Main Street Los Gatos, CA 95030 A408 -354 -6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 10/02/2018
ITEM NO: 8
DATE: SEPTEMBER 27 , 2018
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: DISCUSS AND PROVIDE DIRECTION REGARDING POTENTIAL REGULATIONS
FOR SHORT -TERM RENTALS .
RECOMMENDATION :
Discuss and provide direction regarding potential regulations for short -term rentals (STRs ).
BACKGROUND :
Short -term rental (STR) is the practice of renting a portion of or an entire home to a person or
group of people for periods of less than 30 nights. In recent years, there has been exponential
growth of STRs offered through “sharingAeconomy”Awebsites , such as Airbnb (by far the leader
of the group), VRBO, Flipkey , and Homeaway. To illustrate the growth in STR platforms , seven
million guests used Airbnb to rent out rooms or homes in California in 2017, according to Matt
Middlebrook, Airbnb ’sAPublic Policy Lead for California. The growing popularity of STRs is
forcing municipalities across the country and the world to develop strategies in response.
AreviewAofA irbnb’sAwebsiteAshows between 50 and 100 STR properties currently in Los Gatos.
The majority (about 45 percent) are guesthouses/cottages, followed by about 30 percent room
rentals and approximately 20 percent entire houses for rent. There were also a couple local
hotel rooms listed and even a camper/recreational vehicle (RV ). Currently, STR listings do not
include the address of the rental, making them difficult to locate based on public listing
information ; however, based on information from one popular STR information aggregator , the
picture below illustrates the units currently available in Los Gatos. Another STR information
aggregator places the STR inventory at approximately 104 units in the 95030 and 95032 zip
codes.
Attachment 1
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BACKGROUND (Cont’d):
Source: Inside Airbnb (red entire homes/apartments, green private/shared room)
Given the wide adoption of STR platforms and the subsequent proliferation of STRs within Los
Gatos, it is timely for the Town Council to discuss the Town’sAcurrent STR approach , review
policy options, and provide direction on potential STR regulations .
DISCUSSION :
Existing Town STR Approach
The current Town of Los Gatos Zoning Ordinance is silent on the subject of short -term rentals as
aApermittedAuseAinAanyAofAtheATown’sAzones , which by default prohibits them from occurring
withinAtheATown’sAjurisdiction. Town Code Sec. 25.30.010 defines a hotel as any structure
occupied by transients for dwelling, lodging , or sleeping purpose. Town Code Sec. 29.10.020
further defines a hotel/motel as a building where lodging, with or without meals, is provided for
compensation and where occupancy is generally limited to no more than thirty (30) days. A
hotel is not a permitted use in the residential zones, therefore prohibiting homeowners from
renting out a house for 30 days or less. A transient is defined as any person who exercises
occupancy for a period of thirty (30) consecutive calendar days or less. In addition, Code Sec.
29.10.320 (b) (14) also specifically prohibits rentals for durations of less than thirty (30) days,
including short -term rentals, in accessory dwelling units . The Town enforces these Code
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DISCUSSION (Cont’d):
sections and the prohibition on a complaint -driven basis. The Town received two STR
complaints in 2015, one in 2016, three in 2017, and three in 2018 so far.
The current Transient Occupancy Tax (TOT) rate in Los Gatos is 12% and it applies to rentals
that do not exceed 30 consecutive days. These rentals have historically been hotel stays, until
the recent popularity of the sharing economy rentals. The Town currently collects this tax from
hotels. The tax is paid by the hotel guest and collected and remitted by the hotel owners. No
TOT is collected for STRs currently.
Alternative STR Policy Approaches
There are many STR policy approaches being adopted by regional and national peer
municipalities. In Santa Clara County, jurisdictions have taken a variety of approaches to the
topic of STRs. The City of Saratoga has banned them while the Cities of San Jose and Sunnyvale
have regulated them. The Cities of Santa Clara and Morgan Hill have no ordinances or
regulations in place but have agreements with Airbnb to collect Transient Occupancy Tax
through its reservation platform. Other municipalities, including the Town of Los Gatos, do not
have an ordinance regulating STRs.
Regulates STRs STRs not allowed No Regulations Regulations under
consideration
San Jose Campbell Gilroy Mountain View
Sunnyvale Milpitas Santa Clara Cupertino
Los Altos Hills Saratoga Morgan Hill
San Francisco Palo Alto
While the policy approaches may vary in adoption, the variables addressed during policy
formation are fairly consistent. In municipalities that have chosen to regulate STRs, there are a
variety of best practices emerging as a way to manage them , including establishing a
geographic zone specifically for STRs, requiring the STR host to be present, limiting the number
of rental days per year (difficult to enforce), and limiting the number of guests at one time
difficult to enforce).
Following are the primary policy considerations if the Council would like to consider regulating
and allowing STRs.
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DISCUSSION (Cont’d):
Type : There are two primary types of residency options in practice to consider:
1.Hosted Rentals : In a hosted rental, a permanent resident must live at the home
while it is being rented. Hosted STRs could present fewer compliance issues since
the host would reside on the premises to oversee the rental. Having a resident host
living at the house could also increase the comfort of neighbors who may otherwise
be unsure about the guests.
2.Un -Hosted Rentals : Un -hosted rentals are normally for the entire house/property as
opposed to a room or accessory dwelling unit. Un -hosted rentals could have more
neighborhood compatibility and enforcement issues, such as noise complaints. Un -
hosted rentals may also have a greater impact on the affordability of the rental
housing market, as owners may seek to rent multiple properties concurrently.
Geographic Zone(s): STRs could be confined to certain zones within the Town. The
number of STRs within those zones within the Town could also be limited. A minimum
distance could also be established between properties that have been permitted for
STRs.
Limiting the number of days allowed per year: Many jurisdictions have regulated the
number of days per year an STR can be rented. Jurisdictions further codify a distinct
number of days per year for hosted units versus un -hosted units , with un -hosted rental
days per year being significantly less than the number allowed for hosted rentals .
Maximum number of guests at one time —Hosted: In order to control the number of
people using an STR and the effects on neighbors (parking and noise), a limitation on the
number of STR guests allowed in a 24 -hour period can be included in the regulations .
Children under a certain age can be excluded from the count. The number of guests can
be calculated based on the number of rooms in the house. However, having one
standard regardless of the number of bedrooms makes enforcement easier (e.g. four
guests per property).
Maximum number of guests at one time —Un -Hosted: If the entire home is available
for use, some jurisdictions increase the maximum number of guests beyond the limit
imposed upon hosted rentals.
Parking: Vehicle parking for STRs could be required to remain on -site, or the number of
vehicles per STR could be limited.
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DISCUSSION (Cont’d):
Commercial Uses: Assembly or commercial uses, such as weddings or other special
events, could be prohibited at STRs. This would reduce noise, vehicles, and the overall
impacts to a neighborhood.
Additional STR Policy Considerations
Potential Impact on Housing
While research regarding the potential impact of the STR market on housing availability is still in
its infancy , early research indicates that it could have a negative impact in certain markets.
Given the current relatively small number of STRs in Los Gatos, they likely have a minimal
impact on current housing availability ; however, if more homeowners begin renting their entire
homes for longer durations, this could become a more prominent issue.
To discourage the conversion of units from long -term housing to STRs, municipalities have
taken approaches such as: requiringASTRsAbeAonlyAatAtheAowner’sAprimaryAresidence,AallowingA
only one unit per parcel to be used as an STR, requiring the host to be present during rental
periods, and prohibiting STRs in Below Market Rate and senior units.
Neighborhood Character and Impacts
Transient tenants associated with STRs may impact parking, noise , and neighborhood character.
There are a number of regulations that can be used to mitigate most of these concerns
including: limiting the number of guests at one time, requiring parking to be on -site , limiting the
number of vehicles, prohibiting assembly/commercial uses (such as weddings), requiring hosts
to provide guests with local rules regarding noise, etc., and requiring the host to live at and be
present at the property during any rentals.
Enforcement
In order to assist in effective enforcement either a continued ban on STRs or some form of a
regulated model , violation penalties for both should be made clear and significant enough to
encourage compliance. Some jurisdictions have created high penalties for failing to register an
STR within 90 days of operation. This encourages STRs to register, making enforcement of any
other violations much easier. In addition, many cities also include the ability to revoke the
operator’sASTR -related business license or registration after two or three violations.
Staff will need to evaluate if additional Code Enforcement staff would be needed to assist in
STR regulation. Given the history of very few STR -related complaints each year and the
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DISCUSSION (Cont’d):
relatively low number of STRs currently in Town, additional staff may not be required right
away.
Revenue Collection
Most municipalities that allow STRs require hosts to maintain a current business license and all
hosts must report/remit TOT to the municipality. If the Town were to move forward with a
regulatory program for STRs, a process for TOT collections from STRs would need to be
established.
Airbnb has recently started entering into agreements with municipalities to collect and remit
TOT on behalf of hosts/property owners. This allows municipalities to interact with one
organization, rather than collecting funds from hundreds of individual property owners.
Locally, San Jose, Santa Clara, Palo Alto, San Francisco , and Oakland have established
agreements with Airbnb to collect and remit TOT on behalf of short -term rental hosts. Hosts
using platforms other than Airbnb must self -report and remit TOT.
The other option is to refrain from contracting with Airbnb and use the honor system where
owners remit taxes directly to the Town for all platforms. This approach has been less effective
in other municipalities.
CONCLUSION AND NEXT STEPS :
Council should determine if the status quo approach to short -term rentals in Los Gatos should
be maintained or if regulations should be drafted to allow STRs .
Among the options for Council consideration :
Make no changes to the current Town ordinances and create enforcement tools to
encourage compliance ;
Create an ordinance regulating STRs in the Town of Los Gatos and rely on owners/hosts
to report and remit TOT directly to the Town ;
Create an ordinance regulating STRs in the Town of Los Gatos and enter into an
agreement with Airbnb (and similar platforms) wherein Airbnb collects the TOT on
behalf of the Town and remits directly to the Town ; and
Enter into an agreement with Airbnb wherein Airbnb collects the TOT on behalf of the
Town and remits directly to the Town, while not changing the current Town ordinances .
Staff looks forward to the direction of the Town Council .
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COORDINATION :
This report was coordinated with the Town Attorney, Director of Community Development, and
Director of Finance.
FISCAL IMPACT :
No fiscal impact at this time.
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Attachment 2
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City of Saratoga – Short Term Rentals
The City of Saratoga prohibits short -term rentals in the City’s
single -family residential districts . The City’s regulations are
intended to preserve Saratoga’s residential environment.
However, like many other cities, the City of Saratoga’s
Municipal Code prohibits rental of a single -family
home or room(s) within the home for a period of
30 consecutive calendar days or less.
For more information about the city’s laws defining hotel type rentals :
See City Code Section 15 -06.360 and Section 5 -25.020(f)
You can also give us a call at 408 -868 -1222 or email us at planning@saratoga.ca.us
COMPLAINTS
Complaints are investigated on a case -by -case basis. Anonymous complaints will not be accepted.
If you would like to file a formal complaint, contact: Code Enforcement : 408.868.1214
Renting a private home in lieu of a hotel during a
vacation or business trip has risen in popularity . Among
other resources, online booking sites facilitate short term
hotel type rentals between homeowners who can earn
some extra income and travelers looking for an
affordable and convenient place to stay .
The rules are put in place to avoid increased traffic, noise, and the high turnover
of short -term renters on quiet streets where residents value stability and privacy.
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The Center of What's Possible
AGENDA ITEM#: As
AGENDA REPORT
City of
Santa Clara
Date:
To:
From:
Subject:
September 29, 2015
City Manager for Council Action
Assistant City Manager
Authorization for the City Manager to Execute a Voluntary Tax Collection
Agreement with Airbnb, Inc., Inc. for the Collection of the City's Transient
Occupancy Tax on Short Term Rentals
EXECUTIVE SUMMARY
Over the summer staff evaluated opportunities to apply the City's transient occupancy tax
TOT) to owners of residential property that rent some or a portion of their properties to
travelers seeking short term accommodations utilizing internet-transacted vacation rentals.
The proliferation of Internet use has allowed for connections to be made through sharing
economy web sites such as Home Away, Vacation Rentals by Owner (VRBO), and Airbnb,
Inc. After research and discussion, staff determined that the collection and remittance of
taxes by hosted platforms that facilitate the financial transactions such as Airbinb, Inc. would
provide efficiencies for the City to collect additional TOT tax revenue.
Staff engaged Airbnb, Inc. in discussions about their interest in entering into a tax collection
agreement with the City that would result in Airbnb, Inc. collecting TOT from hosts that rent
accommodations to guests in Santa Clara via the Airbnb, Inc. platform. Currently, Airbnb,
Inc. is collecting and remitting taxes in seventeen locations. Attachment A provides a
complete list of the jurisdictions in which Airbnb, Inc. is currently collecting occupancy-
related taxes and remitting directly to respective taxing authorities on behalf of its Hosts.
This simplifies and automates the process for TOT collection compared to other hosted
platforms that primarily act as online classifieds.
Staff proposes to enter into a Tax Collection Agreement between Airbnb, Inc. and the City
for the collection of the City's Transient Occupancy Tax pursuant to Chapter 3.25 of the
Municipal Code. Airbnb, Inc. is a corporation which provides an Internet platform through
which third parties desiring to rent out accommodations ("Hosts") and third parties desiring
to book accommodations ("Guests") have the opportunity to locate each other,
communicate, negotiate, and book a transaction pursuant to an agreement between the
Hosts and Guests.
For the purposes of this Tax Collection Agreement, Airbnb, Inc. has agreed to act as a
limited collection and remittance agent of the Hosts to the extent such Hosts offer to or rent
accommodations to Guests in Santa Clara via the Airbnb, Inc. platform that are subject to
the City's Transient Occupancy Tax, Airbnb, Inc. assumes all responsibilities for the
collection and remittance of the Transient Occupancy Tax for applicable transactions on its
platform in the City, starting on the effective date of the collection agreement.
Short-term rentals that do not exceed 30 consecutive days in duration are the type of
transient occupancy that is already subject to the City's Transient Occupancy Tax, which is
9.5%. The City's larger CFD tax rate of 11.5% will not apply to these rentals; in order for
additional properties to be included in the CFD rate, they need to affirmatively vote to annex
into the CFD area and this will not happen here.
Attachment 4
Subject: Voluntary Tax Collection Agreement with Airbnb, Inc.
Page 2
Below summarizes other key provisions of the agreement. Staff is seeking authority for the
City Manager to review and execute the final agreement.
Airbnb will register as an operator for the reporting, collection and remittance of TOT.
Collection will begin not later than November 1,2015, (contingent upon the City's
execution of the agreement).
Airbnb will notify hosts that TOT will be collected and remitted as of the effective date
and notify guests of the amount of TOT collected and remitted on each booking
transaction.
The City will maintain audit rights with Airbnb, but not individual hosts.
The Public Records Act will apply to the agreement.
Airbnb will retain records documenting the payment of TOT for a minimum of three
years.
Either party will be able to terminate the agreement for convenience.
ADVANTAGES AND DISADVANTAGES OF ISSUE
No known disadvantages. Staff will evaluate the tax collection agreement and Airbnb, Inc.'s
performance over the next year and develop recommendations for future agreements and/or
new agreements with other hosted platforms that facilitate the booking and payment
transaction.
ECONOMIC/FISCAL IMPACT
At this time, Airbnb, Inc. estimates that there are approximately 130 hosts in Santa Clara
using their internet-based, hosted platform. A typical Santa Clara host rents out their
residence 65 nights per year with an average length of stay of 6.5 nights. Based on an
average nightly rate of $77 and average earnings per host of about $5,000 annually, Airbnb
estimates that the TOT that could be collected and remitted through Airbnb, Inc., Inc. would
be approximately $60,000 annually. Additional revenue is anticipated to be generated in
Santa Clara during Super Bowl 50 as visitors seek local short term rental accommodations.
The revenue will be deposited into the City's Transient Occupancy Tax account in the
General Fund.
RECOMMENDATION
That the Council authorize the City Manager to review and execute a voluntary tax collection
agreement with Airbnb, Inc. for the collection of the City's transient occupancy tax on short
term rentals, subject to City Attorney approval.
Sheila A. Tucker
Assistant City Manager
APPROVED:
JOillo J. Mentes
C1r9 Manager
Subject: Voluntary Tax Collection Agreement with Airbnb, Inc.
Page 3
BACKGROUND
Sharing economy" websites such as Airbnb, VRBO, Home Away and others provide
applications that allow owners of residential property to rent some or a portion of their
properties to travelers seeking such accommodations. There are some key distinctions in
business models. For example, Airbnb is a community marketplace for people to list and
book space for any duration of time. Airbnb, Inc. facilitates the process of listing and booking
a space by handling all financial transactions. It's also free to list space on Airbnb. A
processing fee is charged only when a place is booked.
In contrast, other sharing economy websites have primarily acted as online classifieds
where vacation rental owners pay to advertise their space. The site puts guests in contact
with owners or property managers. However, the transaction is typically not facilitated and
thus tenants and owners are responsible for processing their own payments. In addition to
these subscription models, some sharing economy sites have added new online payment
options in which they also offer to facilitate the booking and payment transaction similar to
Airbnb. Staff will continue to evaluate opportunities for new agreements with other hosted
platforms that facilitate the booking and payment transaction.
The question about how and if these new types of business models should be regulated is
one currently being tackled in several communities. Advocates argue that such short-term
rentals provide individuals with the ability to earn extra income to support their basic cost of
living expenses, enables travelers to find less expensive alternative to hotels, and that
guests of vacation rentals stay longer and spend more money in the communities in which
they stay. Critics of such short-term rentals argue that this type of activity changes the
character of residential neighborhoods, reduces long-term residential housing from the
market, increases rents, skirts regulations (e.g. health and safety inspections), and
potentially harms hospitality industry jobs and wages. The City has not received any
complaints related to Airbnb, Inc. or other similar platform rentals.
Several cities have amended their municipal code to expressly allow and regulate transient
occupancy as an incidental use to primary residential uses. Research with the Planning
Department and the City Attorney's Office determined that the City's Zoning Code currently
does not call out any restrictions and the relevant zoning codes do not include provisions
disallowing uses not mentioned (unlike other parts of the code). The City's TOT definitions in
Chapter 3.25 are broad enough to apply to short term rentals. Given the number of rentals in
Santa Clara, the anticipated revenue, and Airbnb, Inc.'s voluntary agreement to enter into a
tax collection agreement, staff is recommending the City enter into this agreement.
Attachment A
Currently, Airbnb, Inc. is collecting and remitting taxes in the following locations:
1. Amsterdam, NL
Guests who book Airbnb listings that are located in the City of Amsterdam, NL will pay the
following taxes as part of their reservation:
Amsterdam Tourist Tax: 5% of the listing price including any cleaning fee. For detailed
information, visit Amsterdam's government website.
2. Chicago, IL
Guests who book Airbnb listings that are located in Chicago, IL will pay the following taxes as
part of their reservation:
Chicago Hotel Accommodation Tax: 4.5% of the listing price including any cleaning fee
for reservations 29 nights and shorter. For detailed information, visit CityofChicago.org .
3. District of Columbia
Guests who book Airbnb listings that are located in the District of Columbia will pay the following
taxes as part of their reservation:
DC Sales Tax on Hotels (transient accommodations): 14.5% of the listing price including
any cleaning fee for reservations 90 nights and shorter. For detailed information, visit
DC.ciov.
4. Malibu, CA
Guests who book Airbnb listings that are located in Malibu, CA will pay the following taxes as
part of their reservation:
Malibu Transient Occupancy Tax: 12% of the listing price including any cleaning fee for
reservations 30 nights and shorter. For detailed information, visit MalibuCity.org .
5. Multnomah County and Portland, OR
Guests who book Airbnb listings that are located in the State of Oregon, Multnomah County
and/or the City of Portland will pay the following taxes as part of their reservation:
Oregon Transient Lodging Tax: 1% of the listing price including any cleaning fee for
reservations 30 nights and shorter. 1% is the State imposed tax rate only. For detailed
information, visit Oregon.ciov.
Multnomah County Transient Lodging Tax: 11.5% of the listing price including any
cleaning fee for reservations 30 nights and shorter. 11.5% is the maximum Transient
Lodging Tax for listings in Multnomah County (excluding the State level tax). For
example, for Portland listings that are also located in Multnomah County, the Portland
Transient Lodging Tax is 6% and the Multnomah County Transient Lodging Tax is 5.5%.
For detailed information, visit PortlandOregon.gov .
Portland Transient Lodging Tax: 6% of the listing price including any cleaning fee for
reservations 30 nights and shorter
6. North Carolina
Guests who book Airbnb listings that are located in the State of North Carolina will pay the
following taxes as part of their reservation:
North Carolina Sales Tax: 6.75-7.5% of the listing price including any cleaning and guest
fees for reservations less than 90 nights. The State imposes both a statewide 4.75% tax
and a local 2-2.75% tax, which varies by county. For detailed information, visit North
Carolina's website.
City and/or County Occupancy Tax: All locally imposed occupancy taxes will be
collected on reservations in North Carolina. The tax varies by city and county. It is
typically 1-8% of the listing price including any cleaning and guest fees for reservations
less than 90 nights.
7. Oakland, CA
Guests who book Airbnb listings that are located in Oakland, CA will pay the following taxes as
part of their reservation:
Oakland Transient Occupancy Tax: 14% of the listing price including any cleaning fee for
reservations 30 nights and shorter. For detailed information, visit Oakland's FAQ page.
8. Palo Alto, CA
Guests who book Airbnb listings that are located in Palo Alto, CA will pay the following taxes as
part of their reservation:
Palo Alto Transient Occupancy Tax: 14% of the listing price including any cleaning fee
for reservations 30 nights and shorter. For detailed information, visit CityofPaloAlto.org .
9. Philadelphia, PA
Guests who book Airbnb listings that are located in Philadelphia, PA will pay the following taxes
as part of their reservation:
Philadelphia Hotel Room Rental Tax: 8.5% of the listing price including any cleaning fee
for reservations 30 nights and shorter. 8.5% is the tax rate imposed by the City and
County of Philadelphia (the tax jurisdictions are one and the same). For detailed
information, visit Phila.gov .
10. Phoenix, AZ
Guests who book Airbnb listings that are located in Phoenix, AZ will pay the following taxes as
part of their reservation:
Page 2 of 4
Phoenix Hotel/Motel Tax: 3% of the listing price including any cleaning fee for
reservations 29 nights and shorter.
Phoenix Transaction Privilege (Sales) Tax: 2% of the listing price including any cleaning
fee for all reservations. For detailed information, visit Phoenix.gov .
11. San Diego, CA
Starting July 15, 2015, guests who book Airbnb listings that are located in San Diego, CA will
pay the following taxes as part of their reservation:
San Diego Transient Occupancy Tax: 10.5% of the listing price including any cleaning
fee for reservations 30 nights and shorter.
San Diego Tourism Marketing District Assessment: 0.55% of the listing price including
any cleaning fee for reservations 30 nights and shorter. For detailed information, visit
SanDiego.gov .
12. San Francisco, CA
Guests who book Airbnb listings that are located in San Francisco, CA will pay the following
taxes as part of their reservation:
San Francisco Transient Occupancy Tax: 14% of the listing price including any cleaning
fee for reservations 29 nights and shorter. 14% is the tax rate imposed by the City and
County of San Francisco (the tax jurisdictions are one and the same). For detailed
information, visit SFtreasurer.orq.
13. San Jose, CA
Guests who book Airbnb listings that are located in San Jose, CA will pay the following taxes as
part of their reservation:
San Jose Transient Occupancy Tax: 10% of the listing price including any cleaning fee
for reservations 30 nights and shorter. For detailed information, visit SanJoseCa.gov .
14. India
Starting August 1, 2015, guests who book Airbnb listings that are located in the Country of India
will pay the following taxes as part of their reservation:
India Service Tax: 14% of the listing price including any cleaning fee, less a 40%
abatement. Airbnb is required, as an aggregator, to collect and remit service tax on
behalf of Airbnb hosts.For detailed information, visit India's government website.
15. Chamonix- Mont-Blanc, France
Starting August 1, 2015, guests who book Airbnb listings that are located in Chamonix-Mont-
Blanc will pay the following taxes as part of their reservation:
Page 3 of 4
Tourist Tax: 0.75€ per person per night for the category "meubles touristiques non
classes". Exemptions may apply to some guests. For detailed information, visit your local
city hall's website. If a guest believes they are subject to an exemption, they may reach
out to the Municipality.
16. Rhode Island
Starting August 15, 2015, guests who book Airbnb listings that are located in Rhode Island will
pay the following taxes as part of their reservation:
Rhode Island Sales Tax: 7% of the listing price including any cleaning fee for
reservations 30 nights and shorter. For detailed information, visit RI.qov.
Rhode Island Local Hotel Tax: 1% of the listing price including any cleaning fee for
reservations 30 nights and shorter.
Rhode Island Statewide Hotel Tax: 5% of the listing price including any cleaning fee for
reservations 30 nights and shorter on rentals of private rooms or shared rooms only.
Rentals of an entire home or apartment are excluded from this tax.
17. City of Sunnyvale
Starting in October, 2015, guests who book Airbnb listings that are located in Sunnyvale will pay
the following taxes as part of their reservation:
Host shall obtain a business license
Sunnyvale's Transient Occupancy Tax: 10.5%
Host required to reside on-site throughout the lodgers' stay
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City of Santa Clara
RESPONSE TO COUNCIL INQUIRIES
City’s Transient Occupancy Tax (TOT) Agreement : At the May 29, 2018 Council meeting,
the Council requested additional information concerning the City’s Transient Occupancy Tax
TOT) agreement with Airbnb, Inc. On September 29, 2015, the City Council authorized the City
Manager to execute a voluntary tax collection agreement with Airbnb, Inc. for the collection of
the City’s TOT on short term rentals. Airbnb, Inc. is a corporation which provides an Internet
platform through which third parties desiring to rent out accommodations ("Hosts") and third
parties desiring to book accommodations ("Guests") have the opportunity to locate each other,
communicate, negotiate, and book a transaction pursuant to an agreement between the Hosts and
Guests. For the purposes of the Tax Collection Agreement, Airbnb, Inc. agreed to act as a limited
collection and remittance agent of the Hosts to the extent such Hosts offer to or rent
accommodations to Guests in Santa Clara via the Airbnb, Inc. platform that are subject to the
City's Transient Occupancy Tax. Airbnb, Inc. assumed all responsibilities for the collection and
remittance of the Transient Occupancy Tax for applicable transactions on its platform in the
City, starting on the effective date of the collection agreement which was October 15, 2015.
While the City does have an agreement with Airbnb, there are other internet -transacted vacation
rental sites that operate within the City of Santa Clara, such as Vacation Rentals by Owner
VRBO) and Home Away, which do not have a TOT agreement with the City. The City has also
not conducted any due diligence to ensure receipt of TOT from Airbnb, as stated that evening
that a review was warranted and planned.
Attachment 5
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The Center of What's Possible
AGENDA ITEM #. is 'b
AGENDA REPORT
City of
Santa Clara
Date: February 7, 2017
To: City Manager for Council Information
From: Director of Finance
Subject: One-Year Review of Airbnb Transient Occupancy Tax
On September 29, 2015, a Tax Collection Agreement was executed between Airbnb, Inc., and the
City of Santa Clara for the collection of the City's 9.5% Transient Occupancy Tax (TOT) pursuant
to Chapter 3.25 of the Municipal Code.
Airbnb began collecting TOT from its hosts during October 2015. Airbnb remits quarterly TOT
payments to the City. For the initial partial quarter ending December 31, 2015, the City received
38,982,30. In the first four full reporting quarters that followed through December 31, 2016, the
City has received $291,789.26 year-to-date in TOT collections.
Collection Period Amount Collected
01-01-2016 thru 03-31-2016 $65,265.66
04-01-2016 thru 06-30-2016 $80,497.02
07-01-2016 thru 09-30-2016 $73,885.58
10-01-2016 thru 12-31-2016 $72,141.00
Total $291,789.26
AIT_,ROXED:
ev
Rajeev Batra
Interim City Manager
Attachment 6
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Attachment 7
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City of Sunnyvale
Agenda Item
15-0562 Agenda Date:9/15/2015
REPORT TO COUNCIL
SUBJECT
Introduce an Ordinance to add a new Chapter 19.76 entitled “Short-term Rentals and Home Sharing”
to Title 19 of the Sunnyvale Municipal Code, and find that the project is exempt under CEQA
pursuant to Guidelines 15061(b)(3) (Study Issue 2015-7147) (Continued from August 25, 2015)
REPORT IN BRIEF
In recent years, the City has experienced a significant increase in the number of residents who rent
all or part of their homes to guests staying thirty days or less. Pursuant to the zoning code
19.12.210), this activity is considered transient lodging similar to hotels and motels, and is therefore
currently prohibited in residential zoning districts. However, enforcement of this prohibition is
resource intensive and challenging. Many short-term rentals appear to co-exist peacefully with
neighbors; there have been instances, however, where neighbors complained that short-term rental
activities created a nuisance, especially when the rental generates a high turnover of strangers in the
neighborhood. While not entirely reliable as an accurate count of activity, based on a review of
advertising on websites such as Airbnb, there are currently more than 200 residences in the City
being used for short-term rentals, making the task of enforcement a significant workload. Typically,
the Department of Public Safety (DPS) responds on a complaint basis, and works towards resolving
the issue with the occupant, owner and neighbors. However, DPS cannot lawfully enter a residence
to conduct an investigation without a search warrant, consent, or exigent circumstances.
City Council ranked this study as a priority (CDD 15-12, Attachment 1), asking staff to identify realistic
regulations to more effectively respond to this rapidly growing business. The goal of this study is to
consider different options that address the concerns surrounding this new type of business, as well
as respond to its growing use and popularity.
Many people use short-term rentals while on business trips, vacations, or while their home is under
construction. Proponents argue that short-term rentals provide a more local experience, create
opportunities to meet people, and are a more affordable alternative to traditional lodging. During
large, area-wide events, short-term rentals can help augment the existing lodging units by providing
people with more options in attending the event. Proponents also argue that many residents use
short-term rentals as a way of augmenting their income, and may help some residents to afford their
homes.
Concerns about short-term rentals include allowing a commercial-type use in residential areas, and
complaints from neighbors about safety due to the high turnover of residents, noise, incompatibility
with the residential neighborhood, and parking. Another concern is that short-term rentals remove
housing stock that could otherwise be available for long-term rental or sale, adding to Silicon Valley’s
critical housing shortage.
Page 1 of 13
Attachment 9
15-0562 Agenda Date:9/15/2015
Many cities nationwide are working to develop effective programs to address short-term rentals. After
reviewing many approaches, staff is recommending allowing short-term rentals in Sunnyvale with
defined zoning standards and enforcement tools to address neighborhood concerns and ensure
compliance. The recommended zoning code amendments focus on simplicity and ease of
administration to reduce the deterrents for hosts of short-term rentals to obtain the necessary
approvals. Staff will also attempt to work with businesses offering the service (such as Airbnb,
Flipkey, Homestay) in Sunnyvale to collect transient occupancy tax (TOT) from hosts. This would
reduce the work necessary by the City to find the hosts and ensure that TOT is paid.
The Housing and Human Services Commission (HHSC) reviewed the item on July 22, 2015, and the
Planning Commission (PC) reviewed it on July 27, 2015. The HHSC voted unanimously to accept
several of the staff recommendations, but suggested unhosted rentals also be allowed if property
management is provided. The HHSC was split on whether the permits should be appealable. The
draft HHSC minutes are attached, but the Commission has not met since to finalize them
Attachment 9).
The PC also accepted many of the staff recommendations (see Minutes, Attachment 10), and also
recommended an unhosted option provided there is a local agent for management and contact in
emergencies, and a higher maximum number of guests allowed than for hosted. The PC also
recommended that approved accessory living units (“granny flats”) be allowed as hosted short-term
rentals, and further requested the short-term rental issue be returned in 12 months to determine the
effectiveness of the program.
Staff recommends Alternative 1 to adopt an amendment to the Zoning Code (Title 1) to allow short-
term rentals and home sharing (Attachment 2).
Staff continues to recommend limiting short-term rentals to hosted rentals only. Concerns with
unhosted rentals include the impact on neighborhoods, the potential for corporate-type, short-term
rentals, difficulty in ensuring a permanent resident or agent is available to manage the unit, and the
potential impact to affordable housing. If the City Council supports allowing unhosted short-term
rentals as recommended by the HHSC and PC, then they should also adopt Alternative 4 with the
following additional provisions: 1) allow two guests per bedroom and a total of eight guests on site at
one time; and 2) require an application for unhosted short-term rentals to include a floor plan of home
indicating number of bedrooms, a list of all properties applicant is operating as a short-term rental in
the City of Sunnyvale, and the name, address and phone number of a local contact person.
BACKGROUND
The Sunnyvale Municipal Code prohibits hotels and motels from most residential areas. Hotels are
defined as facilities that offer transient lodging accommodations to the general public for
compensation, and transient is defined as any individual who exercises occupancy for a period of 30
consecutive calendar days or less.
While short-term rentals are not new, they have expanded in popularity due to the emergence of
Internet sites that link prospective renters to available properties. Renters work with the homeowner
or another individual with the Internet companies serving as a middleman in the business transaction.
These Internet sites give individuals more options for advertising their rentals, but the transactions
tend to be private and difficult for a regulating agency to track.
Page 2 of 13
15-0562 Agenda Date:9/15/2015
Many cities are grappling with how to handle the growing popularity of short-term rentals. Some cities
have attempted to put wide-ranging regulations in place to control the use, while others have taken a
more hands-off approach. A brief description of how some cities are reacting to this use is included in
Attachment 3.
In order to better understand the community’s thoughts about the issue, an Open City Hall web page
was created to provide information and a survey to receive feedback. In summary, 50 percent of the
respondents are generally supportive of short-term rentals and another 24 percent would be
supportive if only hosted rentals are allowed (see Attachment 4 for a summary of that survey). Hosted
refers to rentals where the resident lives on the premises while the home or rooms are rented;
unhosted refers to situations where the full house may be rented and the resident does not reside on
the premises.
Enforcement
Since the short-term rental business model is a fairly new concept, the City only started addressing
the issue in FY 2014/15, after staff determined that it is a municipal code violation. The City has not
proactively enforced any short-term rentals but has received approximately ten complaints. Of those
complaints, most were resolved quickly after informing the property owners that short-term rentals
are a violation of the municipal code. Three property owners were informed of the violation and
stated that they would cease the practice; however, subsequent complaints from concerned
neighbors prompted further investigation revealing that the practice had not ceased. The three
property owners received administrative citations.
Short-term rentals present enforcement challenges for Sunnyvale and other jurisdictions. Numerous
short-term rental platforms exist with new ones continually added, making it difficult to prove that a
resident is renting their home for fewer than 30 days. This is further complicated by the fact that
many of these rental platforms do not provide the specific addresses of the rental properties so they
are difficult to locate (even the user may not know the exact location until the transaction is
completed). Staff has also found that after warning people about the violation, some have simply
changed the description on the website to state “30 days or longer” while still renting their
rooms/homes on a per night basis. To pursue and effectively enforce short-term rental complaints,
additional staffing would be needed since these cases can be complicated, time intensive, and
difficult to prove. DPS staff cannot enter private residences to gather evidence without a search
warrant or consent, and short-rental platforms are generally unwilling to share information without a
subpoena.
During the joint Study Session on May 12, 2015, City Council and Planning Commission members
had questions about whether the City can identify short-term rental hosts and enforce City rules using
tax data. According to Airbnb, they do collect taxpayer information from hosts, and those with income
from house rentals must report that as taxable income. This is not sufficient data, however, for the
City to determine which home owners and tenants are using the residence as a rental unit because
the only information the City receives from the State Franchise Board is a list of individuals and
property addresses for which a principal business activity (PBA) code is issued. The list the City
receives does not specify the type of business at that location, so there is no way to determine if the
PBA was for a rental unit, home consulting business, or other use. As a result, use of tax data is not
sufficient for enforcement of city regulations.
EXISTING POLICY
Page 3 of 13
15-0562 Agenda Date:9/15/2015
General Plan:
From Land Use and Transportation (LT):
GOAL LT-2 Attractive Community - Preserve and enhance an attractive community, with a positive
image and a sense of place, that consists of distinctive neighborhoods, pockets of interest, and
human-scale development.
Policy LT-2.1 Recognize that the City is composed of residential, industrial and commercial
neighborhoods, each with its own individual character; and allow change consistent with reinforcing
positive neighborhood values.
Policy LT-3.4 Determine appropriate density for housing based on site planning opportunities and
proximity to services.
Policy LT-6.3 Consider the needs of businesses as well as residents when making land use and
transportation decisions
Policy LT-7.4 Support land use policies that provide a diversified mix of commercial/industrial
development.
From Community Character (CC):
Policy CC-1.7 Encourage neighborhood patterns that encourage social interaction and avoid
isolation .
ENVIRONMENTAL REVIEW
Pursuant to California Environmental Quality Act (CEQA) Guidelines 15061(b)(3), CEQA does not
apply to activities that are not a project. The code changes will not have the potential for causing a
significant effect on the environment. Allowing homes to be used for short-term rentals does not
change the nature of residential areas in which they are located, it only changes the term of
occupancy. This is not considered an environmental impact pursuant to CEQA.
DISCUSSION
Short-term rentals are enjoying immense popularity, with future growth expected. Although the use of
personal residences for hotel-type lodging is popular, it comes with concerns and issues that are
difficult to resolve. Listed below are areas of concern for this type of business in residential zones.
The report identifies options to address these issues:
1.Lack of oversight of hosts
2.Difficulty in enforcement
3.Neighborhood compatibility
4.Safety
5.Noise
6.Parking
Overview
Enforcing short-term rentals is difficult whether the zoning remains the same (currently considered to
be illegal) or if they are an allowed use. One key issue is that the Internet companies that post the
rentals act as the middleperson in the transactions, but do not ensure that the host meets local
regulations. Companies like Airbnb acknowledge that people using their service must do their own
Page 4 of 13
15-0562 Agenda Date:9/15/2015
due diligence regarding local permitting, and in some cases offer brief summaries of what different
jurisdictions require, but they do not take responsibility for the transactions. In contrast to a hotel
business, which gets the necessary permits to build and operate a lodging facility (in addition to
providing on-site personnel to secure and maintain the facility), short-term rental companies act as go
betweens by listing available rentals and collecting a fee for each transaction. While these services
benefit residents wishing to offer short-term rentals, surrounding residents may not be aware of such
rentals until they occur.
In order to impose regulations that will benefit the entire community, cities have tried with varying
success to place land use requirements and restrictions on the hosts. Cities have enacted specific
permitting requirements but the resulting success rate of people obtaining permits is less than 10
percent. The companies that act as middlemen do not monitor or require proof of a local permit to list
a rental. Responsibility for enforcing permitting requirements presently rests entirely with the
jurisdiction. However, the State legislature is currently working on a number of bills on this issue,
which may resolve the issue at the state level.
Options
Various cities have adopted regulations to ensure short-term rentals are compatible with their
surrounding neighborhoods, but no single approach has proven to be an optimal solution. San
Francisco has been cited as an example with a process in place that works well, but recent actions
have shown otherwise. The Planning Department for San Francisco recently notified the Board of
Supervisors of the difficulty of enforcing their regulations. Some of the aspects of the San Francisco
regulations that are difficult to enforce include: the specified number of days units can be rented out;
the number of days a permanent resident must live in the unit; and that tenants may not make more
in short-term rental than their monthly rent. The Board of Supervisors recently has been discussing
ways to change the process to ensure more participation by hosts with a resulting program that is
enforceable. Recent statistics have shown that fewer than 10 percent of the Airbnb hosts have
received permits for their businesses in San Francisco.
In choosing options for Sunnyvale, staff identified the best practices from different cities that could
maximize the success rate of compliance and enforcement. Options are discussed below, followed
by the staff recommended alternative.
Issues specific to short-term rentals:
Regulating the use - type of license, registration or permit?
Hosted versus unhosted rentals
How many guests at one time
Limit on number of days
Limit the types of units
Fees and taxes
There are two main types of short-term rentals: Hosted and unhosted. Hosted are rentals where the
permanent resident lives in the unit, while unhosted are rentals of the entire house.Approaches for
each are shown below. Regardless of hosted or unhosted, the issues to consider regarding short-
term rentals include: (1) Methods to regulate the use, and (2) Standard criteria to be used regardless
of the permitting option. Shown below are different options for these issues.
Page 5 of 13
15-0562 Agenda Date:9/15/2015
A.Regulating the Use . There are three main approaches to regulating short-term rentals:
1.Allow the use . There are different options to regulate short-term rentals. One approach
would be to consider them to be allowed uses subject to performance criteria, but not
require a permit. Another option is to require City approval to ensure compliance. The
following is a discussion of those options:
a.Allow by right. This is the simplest approach for the hosts because it requires the least
amount of action on their part. It is possible that requiring any type of permit could deter
hosts from working with the City on meeting the goals of the program. The downside
with this approach is the difficulty in knowing which hosts are meeting the performance
criteria thereby making enforcement more difficult.
An example of a city that allows the uses by right, San Jose amended the zoning code
to allow short-term rentals by right, provided they meet newly created performance
standards. These include different occupancy standards based on type of unit and
number of bedrooms; limits on the number of days per year rentals may be allowed;
record keeping required by the hosts; and review by City, possible (see Attachment 5
for the San Jose criteria).
Although the approach used by San Jose removes the need for a permit, ensuring that
the performance standards are met could be burdensome. It would be difficult for the
City to determine compliance with the number of days a year units are rented; the
number of people allowed based on the number of bedrooms; and allowing the City to
review each host’s lodging records. Although a permit or zoning clearance requirement
may dissuade some people from working with the City, a simple process with consistent
standards provides a relatively easy permit process. It would also make it easier for the
City to determine those units that meet the criteria from those that do not based on who
obtained a permit and who did not. Also, having a permit could provide the City with
easier access into a residential unit to ensure compliance with City regulations.
Each short-term rental would need to register with the City to ensure the appropriate
fees are collected.
b.Community Development Director’s Approval . This type of review is a variation of the
process used for Large Family Child Care Homes (LFCCH) greater than 300 feet from
another LFCCH. The Director’s Approval provides an opportunity to review the
requirements with the resident/host. Rather than site-specific conditions of approval,
performance standards would be defined in the zoning code that would be applicable to
all short-term rentals. These approvals are neither appealable nor noticed. The intent is
to ensure the use is tracked and hosts understand the requirements. The approval can
be revoked by the Director for violation of performance standards.
c.Planning permit.The two options include a Miscellaneous Plan Permit (MPP) or Use
Permit (UP). This would be a more thorough review than a Director’s Approval, and
would allow specific conditions of approval to be added, as well as allow the permit to
be appealed (appeal may be limited to the applicant or may allow any concerned party
to appeal). An MPP would take up to two weeks to review and may include notification
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to nearby property owners prior to taking an action (which increases the process time
by another two weeks). A UP expands the review and requires a noticed public hearing
with mailed notices to nearby property owners, advertising in the local newspaper and
posting of the site. A UP requires significantly more staff time to process than an MPP
and decisions would also be appealable to the Planning Commission. The minimum
time frame to process is six to eight weeks (if there is no appeal). These types of
permits help ensure conformity with the property and neighborhood and to provide
options to apply conditions of approval unique to the site. When permits are issued for a
use at a property, it provides the City with tools to enforce the use, including a record of
which short-term rentals have permits, which makes it easier to inspect properties to
ensure compliance with City requirements and conditions of approval.
2.Specifically prohibit . This option would include amending the code to explicitly disallow
short-term rentals. It would take away any ambiguity or confusion about whether short-term
rentals meet the definition of transient occupancy, and could assist in enforcement of the
uses. This would be the most effective approach if the intent is to definitively prohibit the
uses.
3.Make no changes . This option would continue to prohibit short-term rentals since they are
considered transient occupancy. This is not an ideal approach because the large number of
hosts in the City would be difficult to enforce and it may be possible to only enforce the
extreme cases. This could result in selective enforcement, and given the temporary nature
of the rental, the use may be discontinued by the time Neighborhood Preservation arrives
at the property.
Staff recommendation :Amend the code to allow short-term rentals, subject to obtaining a
Director’s Approval. A Director’s Approval is an existing process, making it easier for staff to
implement. Although some hosts may have hesitancy to take the time to get City approval for their
short-term rental unit, this process is the easiest to implement and provides the most effective tool
to enforce the uses. Ultimately, having short-term rental applications available on-line would likely
increase compliance and participation by the hosts.
B.Types of Short-term Rentals
If it is decided to allow short-term rentals, it is necessary to determine which type is allowed.
Listed below is a discussion of both types:
1.Hosted Rentals : A permanent resident must live at the home while it is being rented.
Requiring the permanent resident to be residing at the home while rented can address
concerns about the safe rental of the unit and in meeting City requirements. Having a
resident host living at the house could also increase the comfort of neighbors who may
otherwise be unsure of whom the guests are. Hosts will need to demonstrate that they are
physically residing at the home during any period it is being rented.
2.Unhosted Short-term Rentals : Both the HHSC and PC supported unhosted rentals
provided management of the property was nearby. There are examples where an unhosted
unit is a good neighbor, but it can also become more of a hotel-type unit with higher
turnover of renters. Options for regulating unhosted rentals are listed in Attachment 6.
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Hosted short-term rentals could present fewer compliance issues since the host would reside on
the premises to oversee the rental. Unhosted rentals (entire house rentals) could have more
neighborhood compatibility and enforcement issues, and are more likely to be used as a true
business than sharing a home. Staff supports allowing a short-term rental if the permanent
resident lives in the home while it is being rented. This approach should help alleviate the
concerns about not having a resident host to ensure the safe rental of the unit and not meeting
City requirements. Having a resident host living at the house could also increase the comfort of
neighbors who may otherwise be unsure of whom the guests are.
Staff recommendation : Although both the HHSC and PC supported unhosted rentals provided
management of the property was nearby (e.g., available by phone and able to respond to the
property in-person within a short time frame), staff recommends limiting short-term rentals to
hosted rentals only due to:
Neighborhood compatibility issues for unhosted rentals;
The impact unhosted units could have on the affordability of the rental housing market;
The lack of a permanent resident in the home;
The potential of larger groups of people renting out homes without a resident to
supervise; and,
The potential for unhosted homes to be used as a hostel, quasi-hotel or corporate
housing, which is not in keeping with the intent of residential zoning districts.
C.Application Process
If the decision is to allow short-term rentals, certain information should be provided to the City to
ensure the criteria are met, and to assist in enforcing the uses. The following criteria would apply
to both hosted and unhosted rentals, while number four would apply only to unhosted rentals:
1.Approval issued to individual or property . As opposed to other planning permits, the approval
for short-term rentals should be issued to a specific person at a specific address. This would
help assure that the host is aware of the City requirements and limitations.
2.Owner consent . Require property owner’s consent to the application if the host is not the
property owner, including homeowner’s associations in common interest developments. This is
especially important for subleases and apartment units.
3.Best practices . In order to remind hosts of the community’s interests in having compatible
short-term rental units in residential neighborhoods, a “best practices” sheet will be prepared
by the City to be signed by applicant at the time of approval acknowledging understanding and
agreement of the items listed. Examples of what could be included in the list of best practices
includes: ensuring that guests park on-site, maintain quiet hours during the night, limit outdoor
activities, notifying neighbors of the activity, etc.
4.Unhosted rentals . In order to provide greater security and assurance that an unhosted rental
unit wouldn’t negatively impact a neighborhood, certain specific items could be required as
part of the application:
a.Floor plan of home indicating number of bedrooms.
b.Name, address and phone number of a local contact person.
c.In addition to the requirements for hosted rentals, additional requirements for unhosted
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rentals could be included, such as: identifying a local contact person or property
manager for the property; or requiring a floor plan to determine the maximum number of
allowed guests (if regulated by bedrooms).
Staff recommendation : Applications for short-term rentals should:
Apply to an individual for specific properties;
Require the property owner and homeowner association consent;
Be provided with a best practices document if approved; and,
If unhosted rentals are allowed, the applicant must also provide the floor plan of the
home.
Staff does not recommend requiring a local contact person because that information cannot be
easily verified during the permit process or may change over time.
D.Codify specific requirements. In order to make the requirements easier to enforce and
understand, specific criteria regarding short-term rentals should be codified. The attached
zoning code amendments include short-term rental standards and include minimum or
maximum allowances. These criteria would only be used if the use is allowed, and wouldn’t be
necessary if the use is prohibited.
1.Maximum number of guests at one time- Hosted . In order to control the number of
people using a short-term rental and the concomitant effects on neighbors (e.g. parking
and noise), a limitation of the number of short-term rental guests allowed in a 24- hour
period can be added (some regulations exclude children under five years old from the
count). Some cities allow a three-bedroom unit to rent to more people than a two-bedroom,
and so on, but staff expects that having one standard regardless of the number of
bedrooms make enforcement easier.
2.Maximum number of guests at one time- Unhosted . Since the entire home is available
for rental, increasing the maximum number of guests could be considered beyond the
recommended limit of four for hosted rentals. Cities that allow unhosted rentals have
adopted different approaches. Options include allowing a higher total number of guests
regardless of the house size (e.g. six or eight), or setting a maximum occupancy base on
number of bedrooms. Many cities use two guests per bedroom, with a maximum of eight or
ten. Although both standards are clear and understandable, it will be more challenging to
regulate based on the number of bedrooms.
3.Limiting the number of days allowed per year . As seen in other cities, setting a specific
number of days a year a residence can be rented for short-term purposes is difficult and
infeasible to enforce. Staff would need to closely monitor the number of days that guests
stay at the residence, or rely on the good faith effort of hosts to provide such records when
requested. Placing a limit on the number of days that short-term rentals are allowed is
contrary to the program goal of creating standards that can be reasonably enforced.
4.Regulate the types of residence allowed (single-family detached, townhouse,
apartment, etc.). Making regulations that ensure the highest rate of compliance depends
on predictability and commonality. By having different standards for different housing types
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or conditions, it could create confusion and complications that could affect the success of
compliance. Therefore, having the same requirements for any type of residence helps in
permitting and enforcement.
Staff recommendation :Adopt changes to the code to specifically address short-term rentals (see
draft ordinance Attachment 2), including:
Allow short-term rentals because it increases the likelihood of compliance with City
regulations and promotes greater sensitivity and responsiveness to the potential concerns
of neighbors;
Limit short-term rentals to hosted;
Limit to four guests per residential unit at one time;
Do not define a limit on the number of days per year that is allowed for short-term
rentals.
Allow short-term rentals in any unit type. Require property owner signature on
application forms for leased residences (e.g. apartments, duplexes) and homeowners’
association approval for common interest developments (e.g. townhouses, condominiums).
Require that all renters have facilities for sleeping, bathing, and toileting inside of a
permanent dwelling that is suitable for human occupancy. Rental of sleeping space in or on
balconies, porches, tents, sheds, vehicles or outdoor areas is prohibited.
Unhosted rentals (not recommended by staff) - If Council allows unhosted rentals,
consider a limit of six to eight guests on site at one time.
E.Payment of fees and taxes. Three types of fees and taxes typically assessed on lodging
uses are: permit application fees, business license tax and TOT (these do not include regular
fees for new development such as building permits, sewer connections, etc.). This revenue
would assist in covering the cost of implementing the program and in providing enforcement.
Listed below are the fees and their collection options.
1.Permit Application Fee . The fee established should cover the staff time in issuing the
approval. In setting the fee amount, one option would be to create a modest fee to avoid a
significant disincentive for hosts to obtain a City approval. If Director Approval is the
selected process, the same approval for a LFCCH does not currently require a fee;
however, staff suggests that a fee is reasonable to consider for short-term rentals. Another
approach would be to require a higher fee to assist in enforcing these uses. Regardless of
the process chosen, enforcement of short-term rentals can be costly and staff intensive.
2.Business License Tax . The Municipal Code limits collection of business licenses to
rental of “any building or buildings (whether or not connected), in a single ownership,within
which three or more separate spaces or units are located which are available for rental and
are intended to be used for office or dwelling, lodging or sleeping purposes .”Since short-
term rentals typically do not involve the separate rental of three or more spaces or units,
business license taxes would not apply in most cases. Since it is a tax, the method of
changing this requirement would require a vote by residents. A property owner would be
required to pay a business license tax if their rental met the requirements of the Municipal
Code.
3.Transient Occupancy Tax (TOT). Short-term rental units provide overnight and
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temporary lodging for business travelers and other visitors similar to hotels/motels. TOT is
required for short-term rentals at the same rate as for hotels/motels. Some companies,
such as Airbnb, have worked with cities so the company collects the TOT on behalf of the
City and remits it on a quarterly basis.
Staff recommendation :Staff recommends the following actions:
Adopt a processing fee in the City’s Fee Schedule that is reasonable to ensure maximum
participation from the short-term rental hosts in the City;
Collect business license tax where subject to the tax under the Municipal Code. Note, in
most cases, short-term rentals can operate without a City business license;
Short-term rental hosts are required to pay the 10.5 percent Sunnyvale TOT. If short-
term rentals are allowed, staff recommends working with the short-term rental companies
to set up a remittance program. Any host that uses a platform that does not collect the TOT
will be required to pay the tax in accordance to the TOT ordinance.
FISCAL IMPACT
Transit Occupancy Tax (TOT)
Short-term rentals are treated the same as any other lodging uses and would be required to pay TOT.
The current rate is 10.5 percent, and applies to the guest staying at a hotel, not the hotel itself.
Therefore, the tax is not based on the hotel and number of units but the length of time a guest stays.
According to Airbnb, there are, on average, 120 Sunnyvale units on their platform at one time, though
most are not rented each night. They estimate each host rents their unit seventy-five days a year at
an average rate of $90 per night for an annual income per year of $6,750. The resulting TOT from
Airbnb hosts would be approximately $85,000 per year. Airbnb is the leader in the short-term rental
market, and the same information was not available from other companies, but if all other platforms in
total equal Airbnb’s market share, the total additional TOT for the City would be approximately
170,000 per year.
TOT is paid by the lodging facility, in this case the hosts, but Airbnb has shown a willingness to work
with the City in collecting the TOT. Staff has discussed with Airbnb the possibility of collecting the
TOT on behalf of the City that, since all transactions go through their system, would greatly assist the
City in assuring the TOT is paid by all hosts using the Airbnb platform. Staff will attempt to work with
other platforms to have them collect the TOT and remit to the City, but the City cannot compel them
to do so.
Any TOT collected goes into the General Fund. Penalties and interest would be charged for hosts
that do not pay TOT.
Business License Tax
The City Municipal Code requires the rental of three or more separate spaces or units to pay a
business license tax. Staff expects that most short-term rentals will be for fewer than three separate
spaces or units, and therefore not be subject to the tax. As a result, no significant related fiscal
impact is expected.
There will be additional costs and fee revenue that can be developed following further Council
direction. If so directed, staff will return to Council with a resolution amending the Fee Schedule to
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reflect the appropriate processing fee for short-term rentals. That Report to Council will provide
additional information regarding the fiscal impact.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board
outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public
Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of
the City Clerk and on the City's website. Notice was sent to the neighborhood associations,
interested parties, and was posted on the Open City Hall web page created for this study. Staff met
with a representative from Airbnb, and communicated with members of the community on the issue.
At a joint study session with the City Council and Planning Commissioners, topics discussed
included:
Determining how neighboring cities address the issue.
Enforcement concerns: Determine what actions DPS can do at this time, and what tools they
need to be more effective going forward.
Research whether federal tax information can be used to identify individuals claiming income
from short-term rentals.
Describe the expected revenue from collecting TOT and business license taxes for short-term
rentals.
Discuss with Airbnb how it would work with the City in coming up with program options.
Staff has received information from hosts of short-term rental properties explaining the value of the
short-term rental service. Staff has also received information from residents concerned about short-
term rentals in their neighborhoods, and the difficulty in the illegality of the uses. Finally, staff has
received information from representatives of hotel workers about the negative effect short-term
rentals have on the stock of affordable housing in the area. Correspondence can be found in
Attachment 7. Staff also has had discussions with representatives of Aibnb; a summary of this
discussion is captured in Attachment 8.
During both the HHSC and PC hearings, several people spoke in favor of allowing short-term rentals
in Sunnyvale. Many of those people also advocated allowing unhosted short-term rentals. A
representative of hotel workers spoke about the negative impact short-term rentals has on the
affordability and availability of affordable housing for their workers in the area and suggested that if
allowed, short-term rentals be hosted units only.
ALTERNATIVES
1.Introduce an Ordinance to add a new Chapter 19.76 entitled Short-term Rentals and Home
Sharing to Title 19 of the Sunnyvale Municipal Code.
2.Direct staff to return with a Resolution amending the Fee Schedule to reflect the appropriate
processing fee for short-term rentals.
3.Find that the project is exempt from CEQA under Guideline 15061(b)(3).
4.Introduce an Ordinance with modifications to the staff recommendation, such as allowing
unhosted short-term rentals as recommended by the Planning Commission and Housing and
Human Services Commission.
5.Do not add Chapter 19.76 and make no changes at this time.
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STAFF RECOMMENDATION
Alternatives 1, 2 and 3: (1) Introduce an Ordinance to add a new Chapter 19.76 entitled Short-term
Rentals and Home Sharing to Title 19 of the Sunnyvale Municipal Code; (2) Direct staff to return with
a Resolution amending the Fee Schedule to reflect the appropriate processing fee for short-term
rentals; and (3) Find that the project is exempt from CEQA under Guideline 15061(b)(3).
Regulating short-term rentals will continue to be difficult whether the City takes a proactive approach
or not. The nature of the business makes it difficult for the City to regulate and enforce the use. Staff
finds, however, that the best chance at maximizing success with this business type is to create clear
requirements, an easy approval process and reasonable fees.The recommendation considers
different options that both address the concerns surrounding this new type of business, as well as
respond to its growing popularity, and follows Council’s direction to identify realistic regulations to
more accurately respond to this growing business type.
Although both the HHSC and PC recommend allowing unhosted short-term rentals, staff
recommends limiting short-term rentals to hosted situations only. The potential issues related to
unhosted rentals raises additional concerns, including the impact it could have on the affordability of
the rental housing market, the lack of permanent resident present at the home, and the potential of
larger groups of people renting out homes without a resident present. Unhosted rentals also bring the
potential for homes to be used as quasi-hotel, corporate housing, which is not in keeping with the
intent of residential zoning districts.
If the Council would like to allow unhosted short-term rentals, staff recommends adopting Alternative
4 with the following additional provisions: 1) allow two guests per bedroom and a total of eight guests
on site at one time; and 2) require an application for an unhosted short-term rentals to include a floor
plan of home indicating number of bedrooms, a list of all properties applicant is operating as a short-
term rental in the City of Sunnyvale, and the name, address and phone number of a local contact
person.
Prepared by: Andrew Miner, Principal Planner
Reviewed by: Trudi Ryan, Planning Officer
Reviewed by: Hanson Hom, Director, Community Development
Reviewed by: Frank Grgurina, Director, Public Safety
Reviewed by: Grace K. Leung, Director, Finance
Reviewed by: Kent Steffens, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1.Study Issue Paper
2.Draft Ordinance
3.Other Cities’ Approaches
4.Open City Hall Survey Results
5.San Jose Performance Criteria
6.Unhosted rental options
7.Correspondence
8.Summary of Airbnb Business
9.Draft Housing and Human Services Commission minutes of 7/22/15
10.Planning Commission minutes of 7/27/15
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City of Sunnyvale
Agenda Item
18-0400 Agenda Date:6/12/2018
REPORT TO COUNCIL
SUBJECT
Approve Agreement between the City of Sunnyvale and Airbnb, Inc. for the Collection of the City’s
Transient Occupancy Tax on Short-Term Rentals
BACKGROUND
Like many cities across the country, the City of Sunnyvale continues to grapple with the popularity of
short-term rentals. Sunnyvale Municipal Code (SMC) Chapter 19.76 provides that short-term rental
hosts register with the City and remit Transient Occupancy Taxes, “in accordance with any hosting
platform if utilized, pursuant to Chapter 3.16.” Chapter 19.76 also requires the host to reside on-site
throughout the lodger’s stay (no “unhosted” rentals) and limits the number of adult overnight lodgers
to four.
The proliferation of hosting platforms facilitating short-term rental transactions has made it difficult for
cities to track and register rentals. A recent estimate identified more than 900 short-term rental
listings in Sunnyvale across multiple hosting platforms. Online platforms generally do not make
available the identity of hosts or addresses of rental listings, nor do they proactively facilitate
collection of TOT. These limitations have made it difficult for cities to identify properties being used as
short-term rentals and to collect applicable taxes.
Generally, lodgers booking accommodations pay electronically using the host platform website, with
the host platform briefly holding the funds, deducting platform service fees from guests and hosts
before passing the remainder of the funds to the host. Many public agencies have negotiated tax
collection agreements with hosting platforms for the collection and remittance of TOT payments.
EXISTING POLICY
Council Policy, Chapter 7,Planning and Management,Policy B.1.1 -The City will maintain a
diversified and stable revenue base, not overly dependent on any land use or external funding
source.
Council Policy, Chapter 7,Planning and Management,Policy B.1.4 -When considering a new
tax or revenue source or an increase in an existing tax or revenue source, the following criteria
should be considered:
Community/Voter acceptance
Competitiveness with surrounding communities
Efficiency of revenue collection and enforcement
Effectiveness in generating sufficient revenues in the short and long-term to justify its
establishment
Page 1 of 3
Attachment 10
18-0400 Agenda Date:6/12/2018
Enhancement of revenue diversity to promote stability and provide protection from downturns
in business cycles
Equity/Fairness in distribution of the revenue burden on various segments of the community
ENVIRONMENTAL REVIEW
This action being considered does not constitute a “project” within the meaning of the California
Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that it is a
fiscal activity that does not involve any commitment to any specific project which may result in a
potential significant impact on the environment and section 15378(b)(5) in that it is a governmental
organizational or administrative activity that will not result in direct or indirect changes in the
environment.
DISCUSSION
The City currently has a total of 28 short-term rental hosts registered, with 20 actively remitting an
average of $3,200 in TOT monthly. Staff has received multiple complaints from registered hosts who
are aware of and frustrated by the low citywide levels of compliance with SMC requirements, as they
feel that this is unfair to the few hosts who do comply.
Since late 2015, when the short-term rental ordinance went into effect, the City has received
complaints on approximately 20 properties from neighbors about lawful and unlawful short-term
rental activity. The Department of Public Safety, Neighborhood Preservation Unit, responds to
complaints and works to address violations of the short-term rental ordinance, while respecting the
constitutional and legal rights of residents and guests in private homes.
City staff engaged Airbnb (currently the largest hosting platform for short-term rentals) regarding
entering into a voluntary tax collection agreement on behalf of hosts using their service. After
research and discussion, staff determined collection and remittance of taxes by the hosting platform
is appropriate and would provide immediate benefits to the City.
Over 30 California public agencies have already entered into similar tax collection agreements with
Airbnb. In Santa Clara County, Palo Alto, Santa Clara and San Jose have negotiated voluntary tax
collection agreements with Airbnb.
Key provisions of the proposed agreement are summarized below:
Airbnb is not a host, but will act on hosts’ behalf to collect and remit TOT.
Airbnb will assume liability to report, collect and remit the correct amount of TOT.
The agreement does not relieve short-term rental hosts from remitting TOT for bookings on
other platforms, or registration requirements under the Short-Term Rental ordinance.
Airbnb will not provide personal identifying information about hosts except in response to a
warrant or court order.
The City will maintain audit rights with Airbnb, but not individual hosts.
The City agrees to waive the right to collect TOT payments owed by hosts for Airbnb bookings
made prior to the effective date of the agreement.
Airbnb agrees to notify guests and hosts of the TOT to be collected.
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The proposed agreement does not require Airbnb to enforce other terms of the City’s short-term
rental ordinance, such as registration or host-occupancy requirements. Likewise, this agreement only
covers bookings via the Airbnb platform, so staff will be initiating entering into agreements and
collection processes with other hosting platforms.
Staff’s recommendation is that enforcement be effected via other means, such as contracting with a
compliance service equipped to identify and outreach to hosts across multiple hosting platforms. Staff
is currently exploring this service with potential vendors. TOT payments for platforms not covered by
a collection agreement could also be remitted through such a service.
FISCAL IMPACT
The City will receive additional Transient Occupancy Tax revenue as a result of entering into this
Agreement. Airbnb estimates that bookings would generate approximately $500,000 in annual
revenue. Revenue from TOT goes to the General Fund.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board
outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public
Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of
the City Clerk and on the City's website.
RECOMMENDATION
Authorize the City Manager to execute a Voluntary Collection Agreement, in substantially the same
form as Attachment 1 to the report, with Airbnb, Inc. for the collection of Transient Occupancy Tax.
Prepared by: Beth Goodsell, Senior Management Analyst
Reviewed by: Timothy J. Kirby, Director, Department of Finance
Reviewed by: Teri Silva, Assistant City Manager
Reviewed by: John Nagel, City Attorney
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1.Draft Airbnb, Inc. Voluntary Collection Agreement
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Attachment 11
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Attachment 12
City of Sunnyvale Municipal Code
Chapter 19.76 SHORT -TERM RENTAL OF RESIDENTIAL PROPERTY
19.76.010. Purpose and intent.
The purpose of this chapter is to establish regulations governing the short -term rental of residential property
within the city of Sunnyvale. The establishment of these regulations will help maintain adequate housing stock for
permanent residents while ensuring that short -term rental activities do not become a nuisance or threaten the public
health, safety, or welfare due to excessive noise, disorderly conduct, overcrowding, traffic congestion, illegal
parking, the accumulation of refuse, and other effects related to short -term rentals. (Ord. 3059 -15 § 1).
19.76.020. Definitions.
For purposes of this chapter, the following definitions apply:
a)“Host” means the person who is responsible for conducting the short -term rental activity and who
is identified as the host in the application for approval submitted pursuant to this chapter.
b)“Hosted short -term rental” means to provide transient lodging in a dwelling unit, for
compensation, for a period of thirty consecutive calendar days or less, while the host resides on -site throughout the
lodger’s stay. “Hosted short -term rentals” do not include transient lodging in city -approved hotels and motels.
c)“Hosting platform” means a marketplace in whatever form or format which facilitates short -term
rentals through advertising, match -making or any other means, using any medium of facilitation, and from which the
operator of the hosting platform derives revenues, including booking fees or advertising revenues, from providing or
maintaining the marketplace.
d)“Short -term rental” means to provide transient lodging in a dwelling unit, for compensation, for a
period of thirty consecutive calendar days or less. “Short -term rental” does not include transient lodging in city -
approved hotels and motels. (Ord. 3059 -15 § 1).
19.76.030. Short -term rentals prohibited.
The short -term rental of residential property is a prohibited use in every zoning district in the city, with the
exception of approved hosted rentals permitted pursuant to this chapter. (Ord. 3059 -15 § 1).
19.76.040. Hosted short -term rentals —General requirements.
a)Hosted short -term rentals are allowed in any zoning district where residential uses are permitted
subject to the following requirements:
1)The short -term rental activity must be approved by the director pursuant to Section
19.76.050 .
Attachment 12
2)A maximum of four overnight lodgers are allowed per night in any single -family
dwelling or any single dwelling unit in a multi -family dwelling. The limit of four overnight lodgers does not include
minor children who are accompanied by an adult.
3)Rental to unaccompanied minors under the age of eighteen is prohibited.
4)The host shall reside on -site throughout the lodgers’ stay. To reside on -site means that the
property being used for short -term rentals is the host’s primary residence and the host uses the property for purposes
of eating, sleeping, and other activities of daily living during the time periods that lodgers are presen t. Lodgers may
stay in an accessory dwelling unit if the host resides in the primary dwelling. Lodgers may also stay in one dwelling
unit of a two -family dwelling if the host resides in the other dwelling unit.
5)The host shall comply with all permit conditions and applicable local, state, and federal
laws including but not limited to health, safety, fire, and building codes.
6)The host must provide all lodgers with facilities for sleeping, bathing, and toileting inside
of a permanent dwelling that is suitable for human occupancy. Rental of sleeping space in or on balconies, porches,
tents, sheds, vehicles or outdoor areas is prohibited.
7)The host shall obtain a business license if required by Chapter 5.04 of this code.
8)The host shall collect and remit transient occupancy tax, in coordination with any hosting
platform if utilized, pursuant to Chapter 3.16 of this code.
9)The host is responsible for ensuring the property does not become a nuisance due to the
short -term rental activity. (Ord. 3059 -15 § 1).
19.76.050. Hosted short -term rentals —Approval required.
a)No person shall undertake, maintain, authorize, aid, facilitate or advertise any hosted or short -term
rental activity that does not comply with the provisions of this code.
b)The application for approval of short -term rental shall include the following:
1)Name, address and contact information of the host.
2)Name, address and contact information of the owner of the property where the short -term
rental activity will occur. In the event that the applicant is not the legal owner of the property, the application shall
be signed by the property owner consenting to the use of the property for short -term rentals.
3)If the property is part of a common interest development, the application shall include a
letter of authorization from the homeowner’s association indicating that use of the property for short -term rentals
meets the property’s requirements.
4)Any additional information or supporting materials to describe existing property
conditions and the proposed operations as required by the director.
c)The director shall not approve the short -term rental application unless he or she finds that the use
will comply with the requirements of this code and other applicable law. The decision of the director shall be final.
Ord. 3059 -15 § 1).
Attachment 12
19.76.060. Revocation of approval.
The approval of short -term rental may be revoked or modified by the director as follows:
a)Notice and Hearing. Notice shall be mailed to the host at the address specified in the approval
application. The notice shall specify the reasons for the revocation and shall designate a time and place of an
administrative hearing with the director of community development no sooner than the sixth business day following
the mailing date of the notice. The host shall be given the opportunity to present written and oral evidence at the
hearing. Failure to appear at the hearing shall constitute a waiver of any objections to the proposed revocation.
b)Revocation. Following the hearing, the director may revoke the approval if the director makes one
or more of the following findings:
1)The approval was obtained by fraud;
2)The short -term rental activity has been or is being conducted in violation of any provision
of this code or other applicable law;
3)The conditions of approval have been or are being violate d;
4)The short -term rental activity constitutes a public nuisance.
c)Notice of Decision. A written notice of the director’s decision shall be prepared and mailed to the
host at the address specified in the application for approval. If the approval is revoked, the notice shall contain a
statement directing the host to immediately cease using the property for short -term rental, and that failure to cease
such use may be subject to further legal action or enforcement.
d)Appeal. The decision of the director is final. The decision may be appealed to the Superior Court.
Ord. 3059 -15 § 1).
19.76.070. Fees.
The city council may establish and set by resolution all fees and charges as may be necessary to effectuate
the purpose of this chapter. (Ord. 3059 -15 § 1).
19.76.080. Violations a public nuisance —Penalties, nuisance abatement, and other remedies.
Any short -term rental operated, conducted, or maintained contrary to the provisions of this chapter shall be,
and the same is hereby declared to be, unlawful and a public nuisance which the city attorney may seek to abate ,
remove, and enjoin in any manner provided by law. Such remedies shall be in addition to any other remedies
available to the city under this code or under state law. (Ord. 3059 -15 § 1).
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City of Sunnyvale
Meeting Minutes
City Council
7:00 PM Council Chambers, City Hall, 456 W. Olive
Ave., Sunnyvale, CA 94086
Tuesday, September 15, 2015
Regular Meeting-7 PM
CALL TO ORDER
Mayor Griffith called the meeting to order in Council Chambers.
SALUTE TO THE FLAG
Mayor Griffith led the salute to the flag.
ROLL CALL
Mayor Jim Griffith
Vice Mayor Tara Martin-Milius
Councilmember David Whittum
Councilmember Pat Meyering
Councilmember Jim Davis
Councilmember Glenn Hendricks
Councilmember Gustav Larsson
Present:7 -
SPECIAL ORDER OF THE DAY
15-0771 SPECIAL ORDER OF THE DAY - Falls Prevention Day
Mayor Griffith presented a proclamation to Dr. Tamar Semerjian of Silicon Valley
Healthy Aging Partnership and Sunnyvale Community Services Manager Gerard
Manuel in recognition of Falls Prevention Awareness Day.
PUBLIC ANNOUNCEMENTS
Mayor Griffith announced an upcoming “Small Business Ignite” program.
Councilmember Whittum announced board and commission vacancies and an
application deadline.
Michael Goldman announced an upcoming event to provide information about the
Sunnyvale Public Lands Act and presented a PowerPoint presentation.
CONSENT CALENDAR
Page 1CityofSunnyvale
Attachment 13
September 15, 2015CityCouncilMeetingMinutes
Councilmember Meyering pulled Items 1.A through 1.E and 1.G through 1.J.
MOTION: Vice Mayor Martin-Milius moved and Councilmember Larsson seconded
the motion to approve Consent Calendar Item 1.F.
The motion carried by the following vote:
Yes:Mayor Griffith
Vice Mayor Martin-Milius
Councilmember Whittum
Councilmember Meyering
Councilmember Davis
Councilmember Hendricks
Councilmember Larsson
7 -
No:0
1.A 15-0826 Approve City Council Meeting Minutes of August 25, 2015
Public Hearing opened at 12:05 a.m.
No speakers.
Public Hearing closed at 12:05 a.m.
MOTION: Vice Mayor Martin-Milius moved and Councilmember Larsson seconded
the motion to approve the City Council Meeting Minutes of August 25, 2015 as
submitted.
The motion carried by the following vote:
Yes:Mayor Griffith
Vice Mayor Martin-Milius
Councilmember Whittum
Councilmember Davis
Councilmember Hendricks
Councilmember Larsson
6 -
No:Councilmember Meyering1 -
1.B 15-0833 Approve City Council Special Meeting Minutes of September
1, 2015
Public Hearing opened at 12:05 a.m.
No speakers.
Public Hearing closed at 12:05 a.m.
Page 2CityofSunnyvale
September 15, 2015CityCouncilMeetingMinutes
MOTION: Vice Mayor Martin-Milius moved and Councilmember Larsson seconded
the motion to approve the City Council Special Meeting Minutes of September 1,
2015 as submitted.
The motion carried by the following vote:
Yes:Mayor Griffith
Vice Mayor Martin-Milius
Councilmember Whittum
Councilmember Davis
Councilmember Hendricks
Councilmember Larsson
6 -
No:Councilmember Meyering1 -
1.C 15-0778 Approve the List(s) of Claims and Bills Approved for Payment
by the City Manager
Public Hearing opened at 12:06 a.m.
No speakers.
Public Hearing closed at 12:06 a.m.
MOTION: Vice Mayor Martin-Milius moved and Councilmember Larsson seconded
the motion to approve the list(s) of claims and bills.
The motion carried by the following vote:
Yes:Mayor Griffith
Vice Mayor Martin-Milius
Councilmember Whittum
Councilmember Davis
Councilmember Hendricks
Councilmember Larsson
6 -
No:Councilmember Meyering1 -
1.D 15-0790 Authorize Amending an Existing Contract for Cellular Wireless
Phone Services (F16-24)
Public Hearing opened at 12:07 a.m.
No speakers.
Public Hearing closed at 12:07 a.m.
MOTION: Councilmember Meyering moved and Vice Mayor Martin-Milius
seconded the motion to 1) Approve an amendment to an existing contract with
Verizon Wireless to increase the contract value by $20,000, from $96,000 to
Page 3CityofSunnyvale
September 15, 2015CityCouncilMeetingMinutes
116,000; and 2) delegate authority to the City Manager to renew the contract for
up to four additional one year periods, subject to available funding, acceptable
pricing and service.
The motion carried by the following vote:
Yes:Mayor Griffith
Vice Mayor Martin-Milius
Councilmember Whittum
Councilmember Meyering
Councilmember Davis
Councilmember Hendricks
Councilmember Larsson
7 -
No:0
1.E 15-0794 Approve Budget Modification No. 5 to Modify Funding for
Two-Phase Feasibility Study of Structural Stormwater Best
Management Practices for the SMaRT Station® and the
Concrete Recycling Facility and Modify Contract with
Geosyntec Accordingly
Public Hearing opened at 12:09 a.m.
No speakers.
Public Hearing closed at 12:09 a.m.
MOTION: Vice Mayor Martin-Milius moved and Councilmember Hendricks
seconded the motion to approve 1) Approve Budget Modification No. 5 and 2)
Modify the Geosyntec contract scope of work to delete the concrete recycling
facility study and add the supplement to the SMaRT Station feasibility study.
The motion carried by the following vote:
Yes:Mayor Griffith
Vice Mayor Martin-Milius
Councilmember Whittum
Councilmember Davis
Councilmember Hendricks
Councilmember Larsson
6 -
No:Councilmember Meyering1 -
1.F 15-0702 Reject Bid for Vehicle Exhaust Removal Systems at Three
Fire Stations (F15-86)
Reject the one bid received from Air Exchange Inc. in the amount of $231,153.
Page 4CityofSunnyvale
September 15, 2015CityCouncilMeetingMinutes
1.G 15-0761 Approve Final Map (Tract No. 10294) - 67-unit Condominiums
at 680 and 698 East Taylor Avenue by Taylor Morrison of
California, LLC, a California Limited Liability Company
Public Hearing opened at 12:11 a.m.
No speakers.
Public Hearing closed at 12:11 a.m.
MOTION: Vice Mayor Martin-Milius moved and Councilmember Davis seconded
the motion to approve the final map for Tract No. 10294; authorize the Mayor to
sign the subdivision agreement upon submittal of other documents deemed
necessary by the Director of Public Works; direct the City Clerk to sign the City
Clerk's Statement and forward the final map for recordation.
The motion carried by the following vote:
Yes:Mayor Griffith
Vice Mayor Martin-Milius
Councilmember Whittum
Councilmember Davis
Councilmember Hendricks
Councilmember Larsson
6 -
No:Councilmember Meyering1 -
1.H 15-0758 Approve Final Map (Tract No. 10299) - 184-unit
Condominiums at 701 East Evelyn Avenue by DR Horton Bay,
Inc., a Delaware Corporation
Public Hearing opened at 12:11 a.m.
No speakers.
Public Hearing closed at 12:11 a.m.
MOTION: Vice Mayor Martin-Milius moved and Councilmember Davis seconded
the motion to approve the final map for Tract No. 10299; authorize the Mayor to
sign the subdivision agreement upon submittal of other documents deemed
necessary by the Director of Public Works; direct the City Clerk to sign the City
Clerk's Statement and forward the final map for recordation.
The motion carried by the following vote:
Page 5CityofSunnyvale
September 15, 2015CityCouncilMeetingMinutes
Yes:Mayor Griffith
Vice Mayor Martin-Milius
Councilmember Whittum
Councilmember Davis
Councilmember Hendricks
Councilmember Larsson
6 -
No:Councilmember Meyering1 -
1.I 15-0787 Approve Final Map (Tract No. 10285) - Seven Single-family
Homes at 523 E. Homestead Road by Madison Terrace, LLC,
a California Limited Liability Company
Public Hearing opened at 12:11 a.m.
No speakers.
Public Hearing closed at 12:11 a.m.
MOTION: Vice Mayor Martin-Milius moved and Councilmember Davis seconded
the motion to approve the final map for Tract No. 10285; authorize the Mayor to
sign the subdivision agreement upon submittal of other documents deemed
necessary by the Director of Public Works; direct the City Clerk to sign the City
Clerk's Statement and forward the final map for recordation.
The motion carried by the following vote:
Yes:Mayor Griffith
Vice Mayor Martin-Milius
Councilmember Whittum
Councilmember Davis
Councilmember Hendricks
Councilmember Larsson
6 -
No:Councilmember Meyering1 -
1.J 15-0825 Adopt Resolutions Approving Amendments to the City’s
Contribution for CalPERS Medical Insurance for Management,
SEA/Confidential and SEIU Annuitants (Retirees)
Public Hearing opened at 12:17 a.m.
No speakers.
Public Hearing closed at 12:17 a.m.
MOTION: Vice Mayor Martin-Milius moved and Councilmember Larsson seconded
the motion to adopt two resolutions (1) fixing the employer's contribution under the
Public Employee's Medical and Hospital Care Act ("PEMHCA") for 2016, and (2)
Page 6CityofSunnyvale
September 15, 2015CityCouncilMeetingMinutes
amending Salary Resolution No. 190 05 to modify the City's contribution for medical
insurance for Management, SEA/Confidential and SEIU employees and annuitants.
The motion carried by the following vote:
Yes:Mayor Griffith
Vice Mayor Martin-Milius
Councilmember Whittum
Councilmember Davis
Councilmember Hendricks
Councilmember Larsson
6 -
No:Councilmember Meyering1 -
PUBLIC COMMENTS
Michael Goldman spoke regarding costs of public libraries and provided a
PowerPoint presentation.
Andy Frazer spoke regarding the Sunnyvale Public Lands for Public Use Act and
provided a PowerPoint presentation.
Peter Cirigliano spoke regarding a recent article in The Metro.
Maria Pan spoke regarding freedom of speech.
Steve Scandalis spoke regarding the Sunnyvale Public Lands for Public Use Act.
PUBLIC HEARINGS/GENERAL BUSINESS
2 15-0847 REQUEST FOR CONTINUATION to October 27, 2015 to
Introduce an Ordinance to Amend various sections of the
Sunnyvale Municipal Code Title 19 (Zoning) Related to Child
Care Facilities (CDD 15-11); Approve Guidelines for
Commercial Child Care; and Finding of CEQA Exemption
Pursuant to CEQA Guideline 15061(b)(3). (Planning File:
2015-7149)
Director of Community Development Hanson Hom provided the recommendation to
continue this item to October 27.
Public Hearing opened at 7:39 p.m.
No speakers.
Public Hearing closed at 7:39 p.m.
Page 7CityofSunnyvale
September 15, 2015CityCouncilMeetingMinutes
MOTION: Councilmember Hendricks moved and Vice Mayor Martin-Milius
seconded the motion to continue this item to October 27, 2015.
The motion carried by the following vote:
Yes:Mayor Griffith
Vice Mayor Martin-Milius
Councilmember Whittum
Councilmember Meyering
Councilmember Davis
Councilmember Hendricks
Councilmember Larsson
7 -
No:0
3 15-0856 Council Update and Possible Direction on Establishing a
Temporary County Cold Weather Shelter for the 2015-16
Winter Season at the City’s Onizuka Site
Community Development Director Hanson Hom provided the staff report. City
Manager Deanna Santana, City Attorney Joan Borger and Neighborhood
Preservation Manager Christy Gunvalson provided additional information.
Public Hearing opened at 7:52 p.m.
David Wessel, Democratic Club of Sunnyvale, spoke in support of the Onizuka site
for the emergency cold weather shelter and clarified his comments from a previous
Council meeting regarding the effect of the Sunnyvale Public Lands for Public Use
Act.
Diana Nguyen spoke regarding enforcement of shuttle service for the shelter to
prevent loitering and the need to address security concerns.
Marie Bernard, Sunnyvale Community Services, spoke in support of the Onizuka
site for a temporary cold weather shelter and regarding services that will be
provided by community service groups.
Public Hearing closed at 7:58 p.m.
MOTION: Councilmember Davis moved and Councilmember Whittum seconded
the motion to receive the report.
The motion carried by the following vote:
Page 8CityofSunnyvale
September 15, 2015CityCouncilMeetingMinutes
Yes:Mayor Griffith
Vice Mayor Martin-Milius
Councilmember Whittum
Councilmember Meyering
Councilmember Davis
Councilmember Hendricks
Councilmember Larsson
7 -
No:0
4 15-0562 Introduce an Ordinance to add a new Chapter 19.76 entitled
Short-term Rentals and Home Sharing” to Title 19 of the
Sunnyvale Municipal Code, and find that the project is exempt
under CEQA pursuant to Guidelines 15061(b)(3) (Study Issue
2015-7147) (Continued from August 25, 2015)
Principal Planner Andrew Miner provided the staff report and noted a correction to
the report on page 13 in the last paragraph, that the list of provisions for unhosted
rentals should not have been included. Director of Community Development
Hanson Hom and Director of Finance Grace Leung provided additional information.
Public Hearing opened at 8:53 p.m.
Linda McGahen spoke in support of short-term rentals and home sharing and
provided information regarding personal verification procedures she uses.
Diana Ngyuen requested consideration of changing the ordinance for the
occupancy limits to two people per room.
Charisse Ma Lebron, Director of Community Development and Health Policy,
Working Partnerships USA, spoke in support of allowing hosted short-term rentals,
and requested amendments such as a permanent City of Sunnyvale residency
requirement, that Council not permit unhosted rentals and provide close monitoring
of the potential impact on the affordable housing stock.
Majid Bargh expressed concerns regarding potential negative impacts of short-term
rentals on long-term rentals and neighborhoods and recommended strict limitations
on short-term rentals including a permanent residency requirement.
Sarah McDermott, Unite Local 19, stated they have been working with Working
Partnerships to ensure short-term rentals are not impacting affordable housing and
hospitality workers. McDermott spoke in support of the staff recommendation of
hosted only, and recommended strict limitations on unhosted if approved, including
Page 9CityofSunnyvale
September 15, 2015CityCouncilMeetingMinutes
a 90-day limit for unhosted and 180 days for hosted rentals. McDermott
recommended the owner of the property be a Sunnyvale resident.
Dan Paustian spoke in support of allowing unhosted short-term rentals and
provided information on the careful review of potential clients.
Jackie Nicoli spoke in support of allowing short-term rentals and regarding the
reviews available on both sides.
David Wessel spoke in opposition to the ordinance altogether, citing problems with
enforcement and lack of notice to the public.
Nancy Smith expressed concerns regarding loss of rentals in Sunnyvale,
accountability of owners or tenants, the potential for coercion of tenants by raising
rental rates, and including restrictions for hosts in the ordinance.
John Cordes, SNAIL Neighborhood Association Chair speaking for himself, spoke
in support of allowing short-term rentals including the unhosted option. Cordes also
provided information regarding the short-term rental of RVs.
Ray Crump expressed concerns regarding safety of children and spoke in
opposition to unhosted rentals.
Ed Gocka spoke in support of the staff recommendation of restricting short term
rentals to hosted.
Simone Yan spoke in support of short-term rentals for the opportunities it provides
to people who otherwise cannot afford long-term rent in Sunnyvale. Yan also spoke
in support of the benefits to the economy.
Chris Oliva spoke regarding the opportunity to defray long-term costs of a
mother-in-law unit and in support of the ordinance.
Public Hearing closed at 9:36 p.m.
MOTION: Councilmember Davis moved and Councilmember Larsson seconded
the motion to approve Alternatives 1, 2 and 3: (1) Introduce an Ordinance to add a
new Chapter 19.76 entitled Short term Rentals and Home Sharing to Title 19 of the
Sunnyvale Municipal Code; (2) Direct staff to return with a Resolution amending the
Fee Schedule to reflect the appropriate processing fee for short term rentals; and
3)Find that the project is exempt from CEQA under Guideline 15061(b)(3).
Page 10CityofSunnyvale
September 15, 2015CityCouncilMeetingMinutes
FRIENDLY AMENDMENT: Councilmember Larsson offered a friendly amendment
to add the language “as amended from time to time” as suggested by staff in the
response to Council comments.
Councilmember Davis accepted the friendly amendment.
FRIENDLY AMENDMENT: Councilmember Larsson offered a friendly amendment
to allow a host to stay in an accessory dwelling unit if they are renting the primary
unit.
Councilmember Davis accepted the friendly amendment.
FRIENDLY AMENDMENT: Councilmember Larsson offered a friendly amendment
to return to Council in two years with an update on how it has gone and a chance to
revisit the ordinance.
Councilmember Davis stated this is already covered by the first friendly
amendment.
FRIENDLY AMENDMENT: Councilmember Hendricks offered a friendly
amendment to add a requirement that any lister must include the City permit
number in their listing.
Councilmember Davis accepted the friendly amendment.
FRIENDLY AMENDMENT: Councilmember Hendricks offered a friendly
amendment to exclude mobile home parks.
Councilmember Davis declined to accept the friendly amendment.
AMENDMENT: Councilmember Whittum moved to amend the motion to exclude
mobile home parks from the ordinance.
Councilmember Hendricks seconded the motion to amend.
Following discussion, Councilmember Whittum withdrew the motion to amend and
Councilmember Davis accepted the exclusion of mobile home parks as a friendly
amendment, with direction to staff to prepare the appropriate language when the
ordinance comes back to Council for adoption.
City Clerk Kathleen Franco Simmons read the ordinance title.
The motion carried by the following vote:
Page 11CityofSunnyvale
September 15, 2015CityCouncilMeetingMinutes
Yes:Mayor Griffith
Vice Mayor Martin-Milius
Councilmember Whittum
Councilmember Davis
Councilmember Hendricks
Councilmember Larsson
6 -
No:Councilmember Meyering1 -
Council recessed at 10:42 p.m.
Council reconvened at 11 p.m. with all Councilmembers present.
5 15-0741 Introduce an Ordinance to Amend Sunnyvale Municipal Code
Chapter 8.16 (Solid Waste Management and Recycling),
Chapter 10.04 (General Provisions), and Title 12 (Water &
Sewers).
Director of Environmental Services John Stufflebean provided the staff report.
Director of Finance Grace Leung provided additional information.
Public Hearing opened at 11:09 p.m.
No speakers.
Public Hearing closed at 11:09 p.m.
MOTION: Councilmember Davis moved and Vice Mayor Martin-Milius seconded
the motion to approve Alternative 1: Introduce the proposed Ordinance to Amend
Sunnyvale Municipal Code Chapter 8.16 (Solid Waste Management and
Recycling), Chapter 10.04 (General Provisions), and Title 12 (Water & Sewers).
AMENDMENT: Councilmember Meyering moved to amend the motion to, at the
moment, delete the resetting in section 12.24.230 and postpone a determination
about changing the meter resetting charge until we have more concrete information
as to what the new charge will be.
The motion to amend died due to lack of a second.
City Clerk Kathleen Franco Simmons read the three ordinance titles.
The motion carried by the following vote:
Page 12CityofSunnyvale
September 15, 2015CityCouncilMeetingMinutes
Yes:Mayor Griffith
Vice Mayor Martin-Milius
Councilmember Whittum
Councilmember Davis
Councilmember Hendricks
Councilmember Larsson
6 -
No:Councilmember Meyering1 -
6 15-0818 Adopt Memorandum of Understanding between the City of
Sunnyvale and the Communication Officers Association and
the Corresponding Resolution to Amend the City's Salary
Resolution and the Resolution for Paying and Reporting the
Value of Employer Paid Member Contributions for CalPERS
Retirement
Director of Human Resources Teri Silva provided the staff report.
Public Hearing opened at 11:15 p.m.
No speakers.
Public Hearing closed at 11:15 p.m.
MOTION: Councilmember Davis moved and Councilmember Larsson seconded
the motion to approve Alternative 1: Adopt the Memorandum of Understanding
between the City of Sunnyvale and the Communication Officers Association, and
the corresponding Resolution amending the City's Salary Resolution and the
Resolution for Paying and Reporting the Value of CalPERS Employer Paid Member
Contributions.
The motion carried by the following vote:
Yes:Mayor Griffith
Vice Mayor Martin-Milius
Councilmember Davis
Councilmember Hendricks
Councilmember Larsson
5 -
No:Councilmember Whittum
Councilmember Meyering
2 -
7 15-0852 Consider a Request for Funding from Urban Systems
Laboratories for an Automated Transit Network Development
Partnership and Approval of Budget Modification No. 6
Assistant City Manager Kent Steffens provided the staff report.
Page 13CityofSunnyvale
September 15, 2015CityCouncilMeetingMinutes
Public Hearing opened at 11:22 p.m.
No speakers.
Public Hearing closed at 11:22 p.m.
MOTION: Councilmember Davis moved and Councilmember Hendricks seconded
the motion that the City of Sunnyvale, contingent upon other communities joining in
the partnership with additional funds, and that any partnership agreement that is
drafted, it is understood that we are interested in pursuing the concept, not buying
in to the development or building of the structure.
The motion failed by the following vote:
Yes:Councilmember Whittum
Councilmember Davis
Councilmember Hendricks
3 -
No:Mayor Griffith
Vice Mayor Martin-Milius
Councilmember Meyering
Councilmember Larsson
4 -
MOTION: Councilmember Hendricks moved and Councilmember Whittum
seconded the motion to proceed with the remaining agenda items.
Yes:Mayor Griffith
Vice Mayor Martin-Milius
Councilmember Whittum
Councilmember Meyering
Councilmember Davis
Councilmember Hendricks
Councilmember Larsson
7 -
No:0
8 15-0369 Cast Vote as Member City for the League of California Cities
Peninsula Division 2016 Election of Officers
Assistant City Manager Kent Steffens provided the staff report.
Public Hearing opened at 11:56 p.m.
No speakers.
Public Hearing closed at 11:56 p.m.
Page 14CityofSunnyvale
September 15, 2015CityCouncilMeetingMinutes
MOTION: Councilmember Hendricks moved and Vice Mayor Martin-Milius
seconded the motion to ratify the list in the report:
President: Liz Kniss, Councilmember, Palo Alto
Vice President: Alicia Aguirre, Council Member, Redwood City
Secretary-Treasurer: Marilyn Librers, Councilmember, Morgan Hill
Board Director (Two-Year Term): Kirsten Keith, Council Member, Menlo Park
San Mateo County: Larry Moody, Councilmember, East Palo Alto
Santa Clara County: Jim Davis, Councilmember, Sunnyvale
The motion carried by the following vote:
Yes:Mayor Griffith
Vice Mayor Martin-Milius
Councilmember Whittum
Councilmember Meyering
Councilmember Davis
Councilmember Hendricks
Councilmember Larsson
7 -
No:0
9 15-0773 Approve City Position on Proposed League of California
Cities’ 2015 Annual Resolutions
Assistant City Manager Kent Steffens provided the staff report.
Public Hearing opened at 11:59 p.m.
No speakers.
Public Hearing closed at 11:59 p.m.
MOTION: Councilmember Hendricks moved and Councilmember Davis seconded
the motion to approve resolution positions:
1.League Bylaw Amendment - Support
2.Overconcentration of Alcohol & Drug Treatment Facilities - Support
3.Residential Rentals, Support for SB 593 (McGuire) - Support
4.Compensation for Prolonged Electrical Power Outages - Take No Position
AMENDMENT: Councilmember Meyering moved to amend the motion to take no
action on Resolution #2.
The motion to amend died due to lack of a second.
FRIENDLY AMENDMENT: Councilmember Whittum offered a friendly amendment
to take no position on Resolution #2 pending clarification on the item.
Page 15CityofSunnyvale
September 15, 2015CityCouncilMeetingMinutes
Councilmember Hendricks declined to accept the friendly amendment.
The motion carried by the following vote:
Yes:Mayor Griffith
Vice Mayor Martin-Milius
Councilmember Davis
Councilmember Hendricks
Councilmember Larsson
5 -
No:Councilmember Whittum
Councilmember Meyering
2 -
COUNCILMEMBERS REPORTS ON ACTIVITIES FROM INTERGOVERNMENTAL
COMMITTEE ASSIGNMENTS
Councilmember Whittum reported his attendance at meetings of the El Camino
Real Bus Rapid Transit Policy Advisory Committee and a VTA Board meeting.
Vice Mayor Martin-Milius reported her attendance at the CALAFCO conference.
NON-AGENDA ITEMS & COMMENTS
Council
Councilmember Whittum reported the comments he made earlier on the water
rates study are available on the dais or electronically.
Mayor Griffith reported on the State of the City Address and Community Awards
event held on September 12.
City Manager
Assistant City Manager Kent Steffens reported SB588 passed the legislature and is
on Governor’s desk for signature.
INFORMATION ONLY REPORTS/ITEMS
15-0769 Tentative Council Meeting Agenda Calendar
15-0701 Information/Action Items
15-0759 $15 by 2018 Regional Minimum Wage Goal Update
Information Only)
15-0831 Study Session Summary of August 25, 2015 - Sunnyvale
Clean Water Program - Master Plan Update
Page 16CityofSunnyvale
September 15, 2015CityCouncilMeetingMinutes
15-0073 Board/Commission Meeting Minutes
ADJOURNMENT
Mayor Griffith adjourned the meeting at 12:22 a.m.
Page 17CityofSunnyvale
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ORDINANCE 575
AN ORDINANCE OF THE TOWN OF LOS ALTOS HILLS AMENDING
SECTION 10-1.702 AND ADDING SECTIONS 10-1.1202 THROUGH 10-
1.1208 TO THE LOS ALTOS HILLS MUNICIPAL CODE PERTAINING TO
SHORT-TERM RENTAL REGULATIONS WITHIN RESIDENTIAL ZONES
WHEREAS, the City Council of the Town of Los Altos Hills (“Town ”) wishes to amend
the Municipal Code with regard to regulation of short-term rentals in Town and establish
regulatory and enforcement guidelines .
NOW, THEREFORE , the City Council of the Town of Los Altos Hills does ORDAIN
as follows:
Section 1.AMENDMENTS
The following sections are hereby added to Title 10, Chapter 1 (“Zoning ”) of the Los
Altos Hills Municipal Code to read as follows. Sections and subsections that are not amended by
this ordinance are not included below, and shall remain in full force and effect.
Article 7. Accessory uses and structures permitted (R-A). is hereby amended:
10-1.702 Accessory uses and structures permitted (R-A).
r)One short-term rental unit operated pursuant to the requirements of Article 12 of
this chapter.
Article 12. Short-term Rental of Residential Property is hereby added:
10-1.1201 Purpose and intent.
The purpose of this chapter is to establish regulations governing the short-term rental of
residential property within the Town of Los Altos Hills. The establishment of these regulations
will provide for additional residential options while ensuring that short-term rental activities do
not become a nuisance or a threat to public health, safety, or welfare due to excessive noise,
disorderly conduct, overcrowding, traffic congestion, illegal parking, refuse accumulation, and
other effects related to short-term rentals.
Attachment 15
10-1.1202 Definitions.
For purposes of this chapter, the following definitions apply:
a)“Primary residence ” means the residence must be used as the owner/applicant ’s
primary residence for a minimum of 270 days per year and must be listed as the mailing address
with the Santa Clara County Assessor.
b )“Short-term rental ” means to provide transient lodging use in exchange for
compensation in any dwelling unit, in whole or in part, on residential property for a period of
thirty (30) consecutive calendar days or less.
c)“Validated nuisance ” means a prohibited use or impact associated with a short-term
rental including those listed within the Short-term Rental Policy and which sufficient
documentation is provided to confirm the occurrence and extent of the violation.
10-1.1203 Short-term rentals prohibited.
No person shall use or maintain, nor shall any person authorize, aid, facilitate or advertise
the use of, any residential property on any parcel for short-term rental without registering and
obtaining a short-term rental license from the Town of Los Altos Hills .
10-1.1204 General requirements.
Short-term rentals permitted on residential property shall be subject to following
restrictions and requirements:
a )A maximum of one (1) short term rental unit is permitted per residential property.
b )The short-term rental property shall contain the property owner ’s primary residence.
c )The short-term rental shall comply with all applicable local, state, and federal laws,
including but not limited to state and local health, safety, fire, and building codes.
d )The host must provide all renters with facilities for sleeping, bathing, and toileting
within a permanent dwelling that is suitable for human occupancy. Rental of sleeping space in or
on balconies, porches, tents, sheds, vehicles, garages or outdoor areas is prohibited.
e )Short-term rental uses are permitted solely for residential purposes only. No events or
commercial uses are permitted. This includes site rentals for weddings, corporate
meetings/events/trainings, photo or video shoots, birthday parties, etc.
f)All short-term rental parking must be provided on-site in approved parking areas. No
overnight street parking is permitted pursuant to Municipal Code section 4-3.1006.
g )The host is responsible for ensuring the property does not become a nuisance due to
any short-term rental occupant activities. Any short-term rental with three (3) validated nuisance
violations will result in revocation of the short-term rental license .
10-1.1205 Conditional Short-Term Rental Permit Approval required .
An applicant may apply for a Conditional Short-Term Rental Permit if an exception to the
general requirements is requested or if a previously approved short-term rental license has been
revoked. A noticed public hearing before the Site Development Committee is required for
consideration of a Conditional Short-Term Rental permit.
a)Additional limitations and restrictions may be imposed to ensure any nuisance
concerns or site -specific limitations are adequately addressed to ensure that the short-term rental
use would be compatible with the general intent of this Ordinance and the policies of the Town
of Los Altos Hills . Additional limitations or restriction may include but are not limited to :
i.limitation on number of rental rooms or occupants
ii.additional off-street parking provisions
iii.modification of quiet hours for occupants
iv.neighborhood notification and or ongoing communication requirements
b )Pursuant to 10-1.1002 of the Municipal Code, the decision of the Site Development
Committee may be appealed to the Planning Commission .
10-1.1206 Fees.
The City Council may establish and set by resolution all fees and charges as may be
necessary to effectuate the purpose of this chapter.
10-1.1207 Violations a public nuisance —Penalties, nuisance abatement, and other
remedies.
Any short-term rental operated, conducted, or maintained contrary to the provisions of
this chapter shall be, and the same is hereby declared to be, unlawful and a public nuisance
which the City may seek to abate, remove, and enjoin in any manner provided by law. Such
remedies shall be in addition to any other remedies available to the City under this chapter or
applicable local or state law.
SECTION II.SEVERABILITY.
If any provision of this ordinance or the application thereof to any person or circumstance
is held invalid or unconstitutional, the remainder of this ordinance, including the application of
such part or provision to other persons or circumstances shall not be affected thereby and shall
continue in full force and effect. To this end, provisions of this ordinance are severable. The City
Council of the Town of Los Altos Hills hereby declares that it would have passed each section,
subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that
any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be
held unconstitutional, invalid, or unenforceable.
SECTION III .EFFECTIVE DATE AND PUBLICATION.
This ordinance shall take effect thirty (30) days after adoption. Within fifteen days after
the passage of this ordinance the City Clerk shall cause this ordinance or a summary thereof to
be published once, with the names of those City Councilmembers voting for or against it in a
newspaper of general circulation in the Town of Los Altos Hills, as required by law.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
BY: _________________________
Mayor
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
2840788.1
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City Council Regular Meeting Minutes
April 20, 2017
Town of Los Altos Hills
City Council Regular Meeting Minutes
Thursday, April 20, 2017
Council Chambers, 26379 Fremont Road, Los Altos Hills, California
Mayor Waldeck called the meeting to order at 6:02 p.m.
CALL TO ORDER (6:00 P.M.)
A.Roll Call
Present: Mayor Waldeck, Vice Mayor Radford, Councilmember Corrigan,
Councilmember Spreen, Councilmember Wu
Absent: None
Staff: City Manager Carl Cahill , City Attorney Steve Mattas, Planning
Director Suzanne Avila, Senior Engineer Tina Tseng, Administrative
Services Director Pak Lin, Senior Planner Marni Moseley, City Clerk
Deborah Padovan
B.Pledge of Allegiance
1.AGENDA REVIEW
There were no changes to the agenda.
2.PRESENTATIONS AND APPOINTMENTS
A.Introduction by George Hurst of the Newest CERT Members and the
Administration of Oath to the CERT Volunteers
Los Altos Hills County Fire District Emergency Preparedness Coordinator George
Hurst introduced the newest Los Altos Hills CERT members.
City Clerk Deborah Padovan administered the oath of office to the CERT
members.
B.Invitation by Marc Sidel to Attend Hidden Villa’s Behind the Scenes Event on
Sunday, May 7, 2017
Attachment 16
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Marc Sidel, Hidden Villa , thanked the Council for continuing to invest in Hidden
Villa , as the annual community grants received by the Town is truly appreciated.
He invited the Council for a Behind the Scenes tour of Hidden Villa and Japanese
Cultural Day on Sunday, May 7, 2017.
C.Annual Report of the Pathways Committee
Ann Duwe, Chair of the Los Altos Hills Pathways Committee , presented the
annual report of the committee. Council asked questions of Ms. Duwe . No action
was taken.
D.Annual Report of the Environmental Initiatives Committee
Raj Reddy, Chair of the Los Altos Hills Environmental Initiatives Committee ,
presented the annual report of the committee. Council asked questions of Mr.
Reddy . No action was taken.
E.Westwind Community Barn Report Presented by Victoria Dye Equestrian
Victoria Dye presented a report on the financials of Westwind Community Barn.
Council asked questions of Ms. Dye and received her responses. No action was
taken.
F .Reappointment to the Environmental Initiatives Committee
City Clerk Padovan presented the reappointment request of Aileen Lee to the
Environmental Initiatives Committee .
Peter Evans, Los Altos Hills , said that Aileen is a worldwide recognized thought
leader in environmental policy and the committee is lucky to have her.
MOTION MADE AND SECONDED: Councilmember Spreen moved to
reappoint Aileen Lee to the Environmental Initiatives Committee for a second,
four -year term. The motion was seconded by Vice Mayor Radford .
Motion Carried 5 to 0:
AYES: Mayor Waldeck, Vice Mayor Radford, Councilmember Corrigan,
Councilmember Spreen, Councilmember Wu
NOES: None
ABSENT: None
ABSTAIN: None
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G.Reappointment to the Community Relations Committee
City Clerk Padovan presented the reappointment request of Nena Price to the
Community Relations Committee.
MOTION MADE AND SECONDED: Councilmember Corrigan moved to
reappoint Nena Price to the Community Relations Committee for a second, four -
year term. The motion was seconded by Vice Mayor Radford .
Motion Carried 5 to 0:
AYES: Mayor Waldeck, Vice Mayor Radford, Councilmember Corrigan,
Councilmember Spreen, Councilmember Wu
NOES: None
ABSENT: None
ABSTAIN: None
3.PRESENTATIONS FROM THE FLOOR Persons wishing to address the Council
on any subject not on the agenda may do so now. Please complete a Speaker Card
located on the back table of the Council Chambers and submit it to the City Clerk.
Comments are limited to two (2) minutes per speaker. California law prohibits the
Council from acting on items that do not appear on the agenda. Under a Resolution
previously adopted by the Council, such items can be referred to staff for
appropriate action, which may include placement on the next available agenda .
Kjell Karlsson, Los Altos Hills , thanked the Los Altos Hills maintenance crew for the
fantastic job they did cleaning up after the storm of April 6, 2017.
Councilmember Corrigan pointed out that Building Technician Austin Hancock also
worked alongside the maintenance crew on a Saturday to assist in the cleanup.
Captain Rich Urena, Santa Clara County Sheriff's Office , explained that all of the
sheriff officers are now wearing body cams and demonstrated the use.
Apurva Chandra, Los Altos Hills , spoke about auxiliary dwelling units, also known as
in -law units. Mayor Waldeck asked the City Manager if staff was aware of the topic and
if any action was needed. The City Manager responded and said the Town is aware of the
law. Planning Director Suzanne Avila said she believes the Town ordinances are in
agreement.
Pat Ley, Los Altos Hills , said she has received an email informing her of focus groups
organized to express views on the working habits of town staff. She asked, "have you
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April 20, 2017
given any consideration whatsoever to the anger and frustration and indignation that
people so commented on, are going to wreak havoc in what you consider a happy family
staff?"
4.CONSENT CALENDAR
MOTION MADE AND SECONDED: Vice Mayor Radford moved to approve the
CONSENT CALENDAR, with the exception of item 4.G, specifically . The motion was
seconded by Councilmember Spreen .
Motion Carried 5 to 0:
AYES: Mayor Waldeck, Vice Mayor Radford, Councilmember Corrigan,
Councilmember Spreen, Councilmember Wu
NOES: None
ABSENT: None
ABSTAIN: None
A.Approval of Special Meeting Minutes: City Council Meeting - March 8, 2017
B.Approval of Special Meeting Minutes: City Council Meeting - March 23, 2017
C.Review of Disbursements: February 1, 2017 - February 28, 2017 $462,499.00
D.Review of Disbursements: March 1, 2017 - March 31, 2017 $897,791.00
E.Resolution 14 -17 Approving the Purchase of Three Art Pieces for $27,690 and
Increasing the Special Donation Expenditure Budget by $30,000 to Purchase and
Install Art Pieces (Staff: P. Lin)
F.Adoption of Ordinance 569 (Second Reading) Amending Title 10, Chapter 2,
Article 4, of the Los Altos Hills Municipal Code, Restrictions During Rainy (Wet
Season) (Staff: A Chen)
H.Resolution 15 -17 Accepting the Grant of an Open Space Easement on the Lands
of Gera; 12345 Gigli Court; File #51 -15 -TM -IS -ND (Staff: S. Avila)
G.Resolution Awarding of Contract for the 2017 Sanitary Sewer Repair and
Replacement Project to C2R Engineering, Inc. (Staff: T. Tseng)
Councilmember Corrigan questioned the budget allocation.
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Senior Engineer Tina Tseng provided an explanation on the budget allocation for
the project.
Council discussion ensued.
MOTION MADE AND SECONDED: Vice Mayor Radford moved to
adopt Resolution 16 -17 awarding the contract for the 2017 sanitary sewer repair
and replacement project to C2R Engineering in the amount of $792,820.50;
approve a contingency fund of $79,280, authorize the Public Works Director to
approve potential contract change orders within said fund and authorize the City
Manager to execute contracts with consulting/inspection firms in an amount not to
exceed $131,200. The motion was seconded by Councilmember Spreen .
Motion Carried 5 to 0:
AYES: Mayor Waldeck, Vice Mayor Radford, Councilmember Corrigan,
Councilmember Spreen, Councilmember Wu
NOES: None
ABSENT: None
ABSTAIN: None
5.ONGOING BUSINESS
A.Consider Adoption of a Resolution Initiating a Reorganization (Annexation) of an
Inhabited Area Designated as Mora Glen Drive No. 2, Approximately 106 Acres
Located on Eastbrook Avenue, Eastbrook Court, Mora Drive, Mora Glen Drive,
Mora Heights Way, Partridge Lane and Terry Way; File #86 -17 -MISC (Staff: S.
Avila)
Planning Director Suzanne Avila presented the staff report.
Council discussion ensued.
Shetal Divatia, Los Altos Hills , asked that the Council address existing roadways
before spending more for annexation.
Carey Trost, Unincorporated Santa Clara County , spoke in opposition to the
annexation.
Council discussion ensued. No action was taken.
B.Consideration of Regulations for Short Term Rentals and Provide Direction to
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Staff (Staff: M. Moseley)
Senior Planner Marni Moseley presented the staff report.
Peter Evans, Los Altos Hills , spoke about owner occupied properties and believed
owners should be able to do what they want with their property.
Scott Vanderlip, Los Altos Hills , recommended that the Town approach this
slowly and understand issues from all sides.
Angela Sanders, Los Altos Hills , questioned the liability on a private street if
someone gets hurt due to a short -term rental.
Wendie Ward, Los Altos Hills , suggested the Town move as quickly as possible
as these short -term rentals are exploding.
Bill Happ, Los Altos Hills , spoke about an unpleasant experience of a short -term
rental near him.
Bonnie Badertscher, Los Altos Hills , spoke against short -term rentals.
Roxann Happ, Los Altos Hills , stated her opposition to short -term rentals.
Pat Lang, Los Altos Hills , said she likes living here because it is nice, quiet and
rural. She was not in support of short term rentals.
Mansour Moussavian, Los Altos Hills , shared a negative experience of a short -
term rental near him.
Nils Anguist, Los Altos Hills , suggested enforcement of short -term rentals based
on days and how many times a year.
Council discussion ensued.
Councilmember Wu said her goal is to keep Los Altos Hills as the number one
place to live and to keep the integrity of the neighborhood. We do not want to
disrupt the peace and ambiance. Short -term rentals are disruptive and said we need
have a way to effectively control them.
City Manager Cahill said that the Town does have regulations on the books that
can address some of the symptoms of the rentals. Since this is a land use matter, he
requested the Council provide direction to staff and the Planning Commission to
suggest rules that can be enforced.
Vice Mayor Radford said that if a developer is in town and never takes residence
and simply uses the property as a rental, he believes it should be shut down as it is a
commercial enterprise. He recognized that owners rent out second units and if an
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April 20, 2017
owner is going to travel for three months and they want to put it up on Airbnb to
offset travel costs, that is appropriate. He was mostly concerned about developers
using properties as a commercial enterprise and said "that needs to stop
immediately."
Councilmember Corrigan concurs that the problem it is snowballing. She was in
support of sending it the Planning Commission with very specific guidelines. There
should be clear understanding of owner occupied vs. non -owner occupied
permissions; the number of nights, the number of people as well as number of times
per year. Furthermore, it is the intention of the Town to enforce no parties, no
events, complying with all parking, noise ordinances and no shuttle rentals to
obfuscate what may be occurring at an evening event. She said it was not her
intention to deny individual homeowners the right to do what they wish with their
own home, but it is her intention to deny a land owner to misuse their property to
the detriment of neighbors. She later added that there needs to be a notification
component to address neighbor concerns.
Councilmember Wu stated that neighborhood complaints should weigh heavily for
investigation.
Councilmember Spreen said that he sees a few things; we have to protect
individuals from nuisance situations; whatever is done, it has to be
administrable. Meaning, what is the minimum number of rules that would allow the
program to run itself. He wanted to allow responsible rentals. Having an onsite
owner is key and onsite should be defined legally, but he envisions that the owner
either has to be onsite or if renting the entire property, owner contact
information needs to be made available to neighbors. Anyone the Town finds who
is not registered, we have to come up with some "teeth for enforcement".
DIRECTION: Return this item to the Planning Commission to review the issue and
bring it back as soon as possible with a recommendation and proposal of regulations
for the Council to review. Councilmember Corrigan added that the Planning
Commission should be given sufficient time, perhaps 90 days, for them to make a
recommendation to craft an ordinance for the Council to discuss.
Meeting went into Recess at 8:47 p.m.
Meeting Reconvened at 8:52 p.m.
C.Discussion of Potentially Updating the Private to Public Road Policy (Added at
the Request of Mayor Waldeck)
Mayor Waldeck presented the item.
Thomas Brunner, Los Altos Hills , presented a proposal on behalf of the residents
of Byrne Park Lane and Deer Springs Way. He requested that the council add an
agenda item at a future meeting to accept Deer Springs Way and Byrne Park Lane
into the public road system of Los Altos Hills.
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Council discussion ensued.
Walt Wood, Los Altos Hills , said the Town has a vested interest in this road due to
the water storage at the end of Byrne Park Road.
DIRECTION: The City Manager shall draft a broad policy amendment to allow the
Council to make exceptions. In addition, staff shall return with
resolutions accepting these two roads, Byrne Park Lane and Deer Springs Way, into
the Town's public road system.
Allan Epstein, Los Altos Hills , provided an explanation about the private roads in
Town.
6. NEW BUSINESS
A. Resolution Awarding a Contract to a Vendor to Provide a Scope of Service and
Project Management to Update the Audio/Video System in the Council Chambers
Staff: D. Padovan)
Councilmember Spreen said he discussed this item with the City Clerk and he has
a number of questions relating to the needs of the audio/video system in the
chambers. He suggested a short term subcommittee be formed to craft a request for
proposals of what audio/video tasks need to occur in the Council Chambers.
Councilmember Wu said she has ideas and would be happy to serve on the
subcommittee.
DIRECTION: Form an ad hoc committee consisting of Councilmembers Spreen
and Wu to review the audio/video system in the Council Chambers.
7. REPORTS FROM COMMITTEES, SUB -COMMITTEES,
AND COUNCILMEMBERS ON OUTSIDE AGENCIES
A. Recommendation by the Environmental Design and Protection Committee to
Extend the Criteria for the Removal of Heritage Oaks to other Tree Species and
Consolidate the Town's Current Tree Regulations into a Comprehensive Tree
Protection Ordinance
Carol Gottlieb presented the recommendation of the Environmental Design and
Protection Committee. She requested approval from the Council for funds for the
services of an arborist.
Council discussion ensued.
At this point, the Council considered a motion to extend the meeting past 10:00 p.m.
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City Council Regular Meeting Minutes
April 20, 2017
MOTION MADE AND SECONDED: Councilmember Corrigan moved to extend the meeting
past 10 p.m. The motion was seconded by Councilmember Spreen .
Motion Carried 5 to 0:
AYES: Mayor Waldeck, Vice Mayor Radford, Councilmember Corrigan,
Councilmember Spreen, Councilmember Wu
NOES: None
ABSENT: None
ABSTAIN: None
Council discussion ensued regarding tree preservation.
Nancy Couperus, Los Altos Hills , said the committee fully supports this
proposal. She pointed out that we are the only town in this area that doesn't protect
trees other than oaks.
Pat Lang, Los Altos Hills , said one of her neighbor's clear cut cedar trees that were
60 feet tall and "it looks horrid."
Jitze Couperus, Los Altos Hills , said all surrounding towns have more stringent
requirements for tree removal than we do and the word is out for developers.
Planning Director Avila stated an arborist would give staff advice on what trees
should be protected.
Councilmember Corrigan stated her opposition to the motion.
MOTION MADE AND SECONDED : Vice Mayor Radford moved to authorize
spending up to $10,000 for an arborist to work with the staff and committee and
provide recommendations regarding potentially updating the tree protection
ordinance. The motion was seconded by Councilmember Spreen .
Motion Carried: 3 -0 -1
AYES: Mayor Waldeck, Vice Mayor Radford, Councilmember Spreen
NOES: Councilmember Corrigan
ABSENT: None
ABSTAIN: Councilmember Wu
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B.Public Art Committee Presentation Requesting Placement of the Three Sculptures
Accepted by the City Council in November 2016 and an Update on the
Completion of the Sculpture Known as "Blue"
Councilmember Radford presented the report on the placement of public art.
MOTION MADE AND SECONDED: Councilmember Corrigan moved to
approve the sighting of the art sculptures, but remain committed to using our
current standards for signage and naming art work. The motion was seconded by
Vice Mayor Radford .
Motion Carried 5 to 0:
AYES: Mayor Waldeck, Vice Mayor Radford, Councilmember Corrigan,
Councilmember Spreen, Councilmember Wu
NOES: None
ABSENT: None
ABSTAIN: None
Vice Mayor Radford stated that we will be proceeding with the art work placement
and directed the City Manager provide the art committee with our standard bronze
plaques for the proper wording.
8.STAFF REPORTS
A.City Manager - No report.
B.City Attorney – No report.
C.City Clerk
City Clerk Padovan announced that the Coyote Forum was being held on
Thursday, April 27, 2017 and Brown Act training for committee members was
occurring on Thursday, May 11, 2017.
D.Planning Director
Planning Director Avila stated that a representative for TrakIt, the Town's new
building permit software, will be here next week to start to the transition.
E.Administrative Services Director - No report.
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F.Public Works Director – No report.
9.COUNCIL INITIATED ITEMS
A.Consideration and Possible Action to Remove the VTA Bicycle and Pedestrian
Advisory Committee Appointment from the Charter of the Pathways Committee
and Include, when Appropriate, in the Annual Council Appointments
Councilmember Spreen)
Councilmember Spreen presented the item and suggested amending the Pathways
Committee charter to remove any reference to that appointee position and have it as
part of the Council's annual appointment process.
MOTION MADE AND SECONDED: Councilmember Spreen moved to amend
the standing committee resolution removing from the Pathways Committee charter
any reference to that appointed position (VTA BPAC) and have the appointment to
the VTA BPAC as part of the Council's annual appointment process when
necessary. The motion was seconded by Vice Mayor Radford .
Motion Carried 5 to 0:
AYES: Mayor Waldeck, Vice Mayor Radford, Councilmember Corrigan,
Councilmember Spreen, Councilmember Wu
NOES: None
ABSENT: None
ABSTAIN: None
B.Consideration and Possible Action to Form an Information Technology
Committee to Review Technology Utilized by the Town (Councilmember Wu)
Councilmember Wu presented the item.
MOTION MADE AND SECONDED : Councilmember Wu moved to form a
Technology Committee to Review Technology to improve the Town's technology .
The motion was seconded by Mayor Waldeck .
The motion failed due to lack of a second.
Council discussion ensued and included discussion about the focus of the
committee and suggested working with staff determine the needs of technology.
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The Council requested that Councilmember Wu return with a more
refined, targeted charter. Vice Mayor Waldeck withdrew his second on the motion
on the floor.
10.ADJOURN
The meeting adjourned at 10:47 p.m.
Respectfully submitted,
Deborah Padovan
Deborah Padovan
City Clerk
The minutes of the April 20, 2017 regular City Council meeting were approved as presented at
the May 18, 2017 regular City Council meeting.