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Presentation to Council 20220426

Sunnyvale City Council
April 26, 2022

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Presentation to Council 20220426
Meeting
April 26, 2022
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Sunnyvale City Council
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City Council
April 26, 2022
Short-term Rental Ordinance
Amendment & Enforcement

DRAFT PRESENTATION
2City of Sunnyvale – Short-term Rentals – April 2022
• STR Ordinance established in 2015
 Requirements for CDD Director’s Approval
• STR registration
• Approval from property owner/HOA
• TOT remittance
• Business license, if applicable
 STR Limits
• No un-h osted stays
• Guest limit of four (4) adults per night
• Compliance with laws, including health, safety, building co
des
Sunnyvale Short-term Rental (STR) Ordinance

DRAFT PRESENTATION
3City of Sunnyvale – Short-term Rentals – April 2022
Council Study Sessions
Managing STR Nuisances and Safety Concerns

DRAFT PRESENTATION
4City of Sunnyvale – Short-term Rentals – April 2022
Ordinance Comparison Review
STR Regulation City
Regulate STRs
Cupertino, Los Altos Hills, Los
Gatos, Milpitas, Mountain
View, Orinda, San Francisco,
San Jose, Santa Cruz
No STR Regulation Santa Clara*, Morgan Hill
Prohibit STRs Campbell, Fremont*,
Saratoga, Los Altos
*Under review

DRAFT PRESENTATION
5City of Sunnyvale – Short-term Rentals – April 2022
• Regulatory Options
 Additional Host Requirements
 Additional Prohibitions
 Add Requirements for Hosting Platforms
 Increased Penalties
• Enhancing enforcement service level
 More proactive enforcement
 Tradeoff: increase in staffing costs coupled with a
reduction in TOT revenue
Options Discussed

DRAFT PRESENTATION
6City of Sunnyvale – Short-term Rentals – April 2022
Recommendations for Amending Ordinance
& Strengthening Compliance
Short-term Rentals

DRAFT PRESENTATION
7City of Sunnyvale – Short-term Rentals – April 2022
• Regulate STR advertisements
 Required STR permit number in ads
 Clarify that hosts may not advertise non-compliant
listings
Recommendation: Amend STR Ordinance

DRAFT PRESENTATION
8City of Sunnyvale – Short-term Rentals – April 2022
• Add Requirements for Hosting Platforms
 Inform hosts about our STR regulations
 Notify hosts of a potential violations
 Deactivate listings when City revokes STR permit
Recommendation: Amend STR Ordinance

DRAFT PRESENTATION
9City of Sunnyvale – Short-term Rentals – April 2022
• Strengthen penalties for public health and safety
v
iolations (SB 60)
 $1,500 first infraction
 $3,000 second infraction
 $5,000 third infraction
Recommendation: Increase Penalties

DRAFT PRESENTATION
10City of Sunnyvale – Short-term Rentals – April 2022
• Publishing registered STR addresses on STR webpage
 Sunnyvale.ca.gov, search: short-t erm rental
Operational Improvements - Transparency

DRAFT PRESENTATION
11City of Sunnyvale – Short-term Rentals – April 2022
• Airbnb “City Portal” allows cities to:
 Require permit numbers on ads
 Stop transactions of non-compliant listings within 7-15 days  Stop non-compliant activity until issues are resolved Operational Improvements – Better Coordination

DRAFT PRESENTATION
12City of Sunnyvale – Short-term Rentals – April 2022
• Add resources based on desired level of compliance
en
forcement
• City is not currently resourced to do proactive
c
ompliance and enforcement
• Three options:
 Option 1: Maximum Enforcement Pilot (2 years)
 Option 2: Ramp Up Support (1 year)
 Option 3: Re-prioritization of STRs (6 months)
Recommendation: Compliance & Enforcement

DRAFT PRESENTATION
13City of Sunnyvale – Short-term Rentals – April 2022
• Cost: $290,000 ($145,000 per year)
• Adds term-lim ited Administrative Analyst for 2 years to:
 Actively work with hosting platforms to require permit number in ads
 Conduct an awareness campaign
 Proactively validate registration data
 Proactively monitor compliance of STR ads
 Prepare background documentation for Neighborhood
Preservation Specialists to investigate and fine violators Option 1: Maximum Enforcement Pilot (2 years)

DRAFT PRESENTATION
14City of Sunnyvale – Short-term Rentals – April 2022
• Cost: $145,000
• Adds term-lim ited Administrative Analyst for 1 year
to:
 Actively work with hosting platforms to require permit number in ads
 Conduct an awareness campaign
 Proactively validate registration data
 Sporadically monitor compliance of STR ads
 Provide complaint-based enforcement support
Option 2: Ramp Up Support (1 year)

DRAFT PRESENTATION
15City of Sunnyvale – Short-term Rentals – April 2022
• Cost: $15,000
• Existing staff would reprioritize work to focus on:
 Working with hosting platforms to require permit
number in ads
 Validating registration data based on capacity
 Conducting an awareness campaign
 Complaint-based enforcement
Option 3: Re-prioritization of STRs (6 months)

DRAFT PRESENTATION
16City of Sunnyvale – Short-term Rentals – April 2022
• Introduce an Ordinance to Amend Sunnyvale
M
unicipal Code Chapter 19.76 (Short-Term Rental of
Residential Property)
• Adopt a Resolution to Amend the FY 2021/22
C
itywide Fee Schedule Related to Fines for Violations
of the Short-Term Rental Ordinance
• Find that these Actions are Exempt from the
C
alifornia Environmental Quality Act
• Consider Compliance & Enforcement Service Levels
D
uring the Budget Process
Staff Recommendation

DRAFT PRESENTATION
17City of Sunnyvale – Short-term Rentals – April 2022
• Notifications mailed to registered addresses
• Emails to platforms
• Email to Neighborhood Association Leaders
• Emails to interested residents
Outreach

DRAFT PRESENTATION
Questions?

DRAFT PRESENTATION

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