STAFF REPORT
Meeting Date:
September 23, 2025
CONSENT
21 SUBJECT: 2024-2025 ORANGE COUNTY GRAND JURY RESPONSE - LONG TERM
SOLUTIONS TO SHORT-TERM RENTAS
RECOMMENDATION: It is recommended that the City Council:
1. Approve the City’s formal responses to the findings and recommendations in the 2024-2025 Orange County Grand Jury Report entitled “Long-Term Solutions to Short-Term Rentals”, as detailed in Attachment 1;
2. Authorize the Mayor to submit the approved responses to the Presiding Judge of the Orange County Superior Court, as required by California Penal Code §933.05; and
3. Find that this action is not a project under the California Environmental Quality Act (CEQA) pursuant to Section 15378(b)(5) of the CEQA Guidelines, as it involves administrative and organizational activities that do not result in a direct or reasonably foreseeable indirect physical change in the environment.
Appropriation: $0 Fund: N/A
Submitted By: . Approved: David A Kiff
Dave Kiff, City Manager Dave Kiff, City Manager
SUMMARY OF THE MATTER
This report recommends that the City Council approve the City’s formal responses to the findings and recommendations of the 2024-2025 Orange County Grand Jury Report titled “Long-Term Solutions to Short-Term Rentals.” The Grand Jury report addresses a range of issues related to short-term rental (STR) policies, including code enforcement, tax collection, regulatory updates, and coordination among cities.
The City’s responses affirm many of the findings and detail the steps taken, or planned, to address the Grand Jury’s recommendations. The total financial impact of this action is zero. This action has been reviewed under the California Environmental Quality Act (CEQA) and has been determined not to be a project under CEQA Guidelines Section 15378(b)(5).
DISCUSSION
On May 22, 2025, the Orange County Grand Jury released a report titled “Long-Term Solutions to ShortTerm Rentals,” which includes a series of findings and recommendations related to the regulation, monitoring, and taxation of short-term rental (STR) properties in Orange County. The report addresses several areas of concern, including transient occupancy tax (TOT) collection, code enforcement limitations, STR recordkeeping, permit tracking systems, the role of the California Coastal Commission, and the need for interagency coordination.
2024-2025 ORANGE COUNTY GRAND JURY RESPONSE - LONG TERM SOLUTIONS TO
SHORT-TERM RENTAS
September 23, 2025
In accordance with California Penal Code §933.05, the City is required to formally respond to the Grand Jury’s findings and recommendations. The City’s draft response (Attachment 1) addresses each finding and recommendation individually. Staff agrees with most of the findings and outlines how the City has already implemented, or intends to implement, several of the recommendations, subject to available resources.
The City requested and received a brief extension to submit its responses due to the timing of prior Council meetings and agenda volume. Council’s consideration and adoption of the draft responses will complete the City’s statutory obligation. Upon approval, the finalized response letter will be transmitted to the Presiding Judge of the Orange County Superior Court on or before the September 24, 2025, deadline.
It is important to note that several of the recommendations, particularly those involving technological upgrades, increased audits, and interjurisdictional coordination, will be implemented contingent upon available staff capacity and budgetary resources. These resource dependencies are noted in the City’s response to ensure transparency and compliance with state law.
FINANCIAL ANALYSIS
There is no fiscal impact as a result of this action.
While several of the Grand Jury recommendations may require additional staff resources or investment in technology (e.g., improvements to TOT tracking systems or increased audit capacity), this agenda item pertains solely to submitting the City’s formal response to the 2024–2025 Orange County Grand Jury Report.
Any future actions implementing specific recommendations will be brought forward for Council consideration with accompanying budget analysis as needed.
ENVIRONMENTAL ANALYSIS
This action is not subject to the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15378(b)(5), as it involves the administrative activity of responding to a Grand Jury report. The action does not commit the City to a specific project or result in a direct or reasonably foreseeable indirect physical change to the environment.
ATTACHMENTS
1. City Response to Grand Jury Report (Pgs. 3-7)
2. 2024-2025 Orange County Grand Jury Report (Pgs. 8-29) Report Prepared By: Coordinated With:
Dave Kiff, City Manager