City of Visalia
City Council Work Session
September 3, 2024
• Receive presentation and decide whether to direct staff to initiate further changes related to the adopted Short-Term Rental Ordinance (Section 17.32.166).
• Consider whether to direct staff to begin processing a Municipal Code Text Amendment consistent with the items listed in the report and in the presentation.
• Potential revisions will be subject to future work session discussion.
City Council – Work Session
Recommendation
Summary
The City Council introduced the first reading of Zoning Text Amendment (ZTA) No. 2023-01, on October 16, 2023. (Establishing codified performance standards for STRs in all residential zones (i.e., R-1 and R-M).
The ordinance took effect on December 6, 2023. During the adoption of the STR ordinance.
The City Council directed staff to return within 60 to 90 days for further discussion on potential revisions to the ordinance.
City Council – Work Session
Upon return Council further directed staff to return six months with an update on the Ordinance’s implementation and to provide the Council an additional opportunity to determine whether further measures should be required.
Outreach
City Council – Work Session
• Getting operators into compliance was known to be a difficult endevor. • Staff worked with the Communications Division to publish PSAs on the City’s social media accounts & draft a one-page notice in the Parks and Recreation Department – 2024 Spring Live & Play Guide.
• Additionally, the Parks and Recreation flyer was pushed through the Airbnb platform to all operators on the platform by the company.
STR Permitting Implementation
City Council – Work Session
• STR permits are initiated by the applicant with the Business Tax Division, while also filling out the business license app., and sent to Planning for review (similar to Home Occupation Permits). • Staff has only received 45 application submittals, 33 approvals. • Transient Occupancy Tax (TOT) from Airbnb has averaged $75k/month.
Additional Outreach Notification
City Council – Work Session
• Staff’s approach did not prove to be the most effective. • Engaged the Finance Dept. to ascertain ways to extract compliance. • One recently implemented tool has been to purchase list of STR operators within the City posting on platforms.
• List will be used to mail all persons/properties to inform them of compliance req. • List should be provided within 60 to 90 days
• Letter will detail 30-days to comply, another list will be used to verify if those mailed are still posting without approval.
Potential STR Ord. Revisions
City Council – Work Session
1. Addition of Enforcement Section to STR Ordinance
2. Establishment of Annual STR Permit Renewal Process
3. Use of Third-Party Compliance Software
4. Establishing an Overall Number of STR Permits Allowed
5. Consideration of Buffer / Spacing Requirements
6. Consideration of an Outright STR Ban
City Council – Work Session
1. Add Enforcement Section
• In coordination with the Finance Department staff identified the need to include enforcement metric language.
• Identifying penalty fees to be assessed toward operators that fail to comply with the permit requirement.
• Penalties assessed would mirror fees identified in Section 1.12 “General Penalty” of the Municipal Code in the following amounts:
• $100, $200, & $500
City Council – Work Session
2. STR Renewal Process
• Detailing Permits are good for only 1-yr.
• Could follow existing Business Tax Certificate structure. • Ensures that operators remain fully aware and in compliance.
Council may direct staff to incorporate revisions codifying annual renewal application processes, requirements, and limits.
City Council – Work Session
3. Use of Third-Party Software
Council may consider directing staff to solicit software and services that may help in capturing STR properties which are not in compliance. • Planning and Finance staff have been in contact with two vendors that offer software services for tracking and enforcement. • Services could cost between $5,000 to $30,000 and provide:
1. Back-tracking at least 12-months to identify rental postings across multiple platforms;
2. Identify addresses of rentals within the City;
3. Identify hosts and associated contact info;
4. Rental frequency;
5. Rental type [room(s), whole home, RV, etc.];
6. Identify compliance issues with established ordinances.
City Council – Work Session
4. Cap Number of STRs
• Separate “Hosted” from “Non-Hosted” approvals
• Allow unlimited “Hosted” STRs.
• Limit “Non-Hosted” STRs.
• Require permit renewals.
• 60-day notice and 30-day application deadline.
• Establish attrition of Non-Hosted STRs not meeting deadline.
City Council – Work Session
5. STR Buffer / Spacing
• Examples found are 500-ft to 1000-ft radii.
• At 1000-ft only 261 could theoretically fit in the City. • Often challenged if not applied to other short-term uses: bed and breakfast, boutique hotels, etc…
Implementation of distance requirements can be established at desired interval:
City Council – Work Session
6. Consider Outright Ban
Council may consider an outright ban of STRs within the City. • There have been multiple articles detailing that STRs reduce the availably of long-term rental properties.
• Excessive STRs could drive up housing costs.
• Frequent turnover of renters can disrupt the sense of community and lead to safety and noise concerns.
• Proven difficult for staff to enforce compliance with requirements.
RECOMMENDATION
City Council – Work Session
Council may direct staff to implement:
• Item No. 1: Amend STR Ord. language to address compliance fee assessment,
• Item No. 2: Amend STR Ord. to incorporate annual permit processing requirements,
• Item No. 3: Solicit software and services that may help in capturing short-term rental properties that have not applied for the appropriate City permits and licenses.
Questions