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Discuss an amendment to the Short-Term Rental Ordinance No. 3575, amending Chapter 26, Article VIII, Section 26-503 in the Code of Ordinances.
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REQUESTOR:
Mayor Pro Tem Tina Bennett-Burton
BACKGROUND:
On February 4, 2025, Code Enforcement provided an overview of the City's Short-Term Rental (STR) program, including the current annual licensing fee of $120. A follow-up presentation was delivered on April 29, 2025, offering a comparative analysis of fees in surrounding cities and outlining the application of hotel/motel occupancy tax. At that meeting, the City Council requested additional information regarding the City's Host Compliance STR platform, specifically its accuracy, cost, and the number of police responses associated with short-term rental properties.
DISCUSSION:
In response to the Council's request, staff conducted an internal audit of the Host Compliance platform, which the City uses to manage and monitor short-term rental activity. The audit identified 196 listings across various rental platforms; however, many of these listings were duplicates for the same property. After consolidating the data, the City currently has 58 active short-term rental units.
The City pays an annual fee of $14,988 for Host Compliance services, which is due for renewal in November. This cost covers address identification, a 24/7 complaint hotline, tax collection support, rental and compliance monitoring, and integration with the City's Geographic Information System (GIS) through ESRI. To help offset this expense, staff recommend increasing the annual short-term rental licensing fee from $120 to $250.
Enforcement data over the past 18 months reveal that 158 code cases have been filed, and there have been 26 police calls or site visits related to short-term rental properties. The City's ordinance includes a "three-strike" provision for violations within a single calendar year, which remains a key enforcement mechanism overseen by Code Enforcement staff.
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