REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  June  27, 2017
CATEGORY:  Regular - Resource Management-6.

SUBJECT:

Consider a proposal from Host Compliance, LLC to develop a draft ordinance regulating short term rentals.

Supervisorial District No. :  ALL

DEPARTMENT CONTACT:  Richard W. Simon, AICP, Director of Resource Management, 530-225-5789

STAFF REPORT APPROVED BY:  Richard W. Simon, AICP, Director

RECOMMENDATION

Take the following actions: (1) Receive a presentation from Resource Management Director Rick Simon regarding a proposal from Host Compliance, LLC to develop a draft ordinance regulating short term rentals in the unincorporated areas of Shasta County; and (2) provide direction to staff.

SUMMARY

N/A

DISCUSSION

The Board directed staff to investigate the cost and resources required to develop a short term rental ordinance for consideration by the Planning Commission and Board.  Host Compliance, LLC is recognized nationally by planning practitioners and academics as a leader in the specialized field of local regulation of short term rentals.  Host Compliance has submitted a proposal to develop a custom ordinance for Shasta County within approximately 90-days from contract award for a not to exceed cost of $20,000.  County planning staff would lead one or more local community workshops following an outline prepared by the consultant.  Other jurisdictions that have worked with Host Compliance in a similar circumstance as Shasta County, including the City of Pasadena and the Counties of San Luis Obispo and Placer, indicated that the company is responsive, timely and reasonably priced for the services provided.  In terms of on-going enforcement assistance, these jurisdictions have been able to generate adequate new TOT and permit revenues to recover the cost of consultant services.  Based on telephone inquiries to a number of firms, it is apparent that Host Compliance is the most proficient, reasonably priced and able to deliver a timely product in this specialized field.            

ALTERNATIVES

The Board could:  (1) Choose not to pursue a short term rental ordinance at this time; or (2) direct staff to develop a draft ordinance in-house.  Based on the current workload in the Planning Division and the commitment of resources necessary to develop a draft ordinance in this potentially controversial area of regulation, the in-house alternative would take eight to 12 months at an estimated cost of $38,000.     

OTHER AGENCY INVOLVEMENT

The County Administrative Office has reviewed this recommendation.

FINANCING

Developing an ordinance would impact the General Fund by an estimated $28,000 for the consultant with limited County staff assistance alternative, and about $38,000 for the in-house only scenario.