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HEARING - Chief Administrative Office and Department of Planning and Building recommending the Board of Supervisors adopt and authorize the Chair to sign Resolution 008-2019, combining fees for vacation home rental permitting. (Est. Time: 10 Min.)
Body
DISCUSSION / BACKGROUND
On June 5, 2018, the Board of Supervisors approved changes to Chapter 5.56 of the County Code of Ordinances, Vacation Home Rentals. Subsequent changes to requirements and regulations for VHRs were approved at Board meetings in August and September. Since that time, staff have been working diligently to implement changes to VHR regulations and facilitate the transfer of permitting/licensing to Planning and Building.
On January 8, 2019, the Board approved the Planning Commission's recommendation to make minor changes to the Zoning Ordinance (Ordinance 5097). These changes allow the VHR Permit to be combined with the Administrative Permit review process, eliminating the need for both permits. The changes do not eliminate any requirements for owners, managers, or renters of Vacation Home Rentals. The move to a department with experts in implementing other types of land use regulations, which has a permitting system for maintaining, tracking, and reporting uses, and which works in close proximity to Code Enforcement will allow for a more coordinated regulatory process.
The second step to combine the VHR Permit and Administrative Permit process is to combine the fees. The VHR Permit currently issued by the Treasurer-Tax Collector has a fee of $89, while a fee for a regular business license is $46. The Administrative Permit fee is currently $119, bringing the total cost for VHR permitting to $208.
With Board approval, the applicant would pay the regular $46 Business License fee to the Treasurer-Tax Collector, and the new fee for a VHR Permit, issued by Planning and Building, would be adjusted to $162 for a new permit, or $152 for a renewal. This fee resolution will re-distribute the fee, but will keep the total amount for VHR permitting at its current cost. This fee revenue is not anticipated to cover the full amount of staff time needed to process the permits. For these reasons, the recommended fees do not exceed the reasonable cost for administering the VHR program.
ALTERNATIVES
The Board may choose not to approve and sign the resolution to combine the fees.
PRIOR BOARD ACTION
Board of Supervisors approval of the Resolution of Intention to make Ordinance changes: November 20, 2018 (Legistar File #18-1782)
Planning Commission Zoning Ordinance Amendment Hearing and Recommendation of Approval to the Board: December 13, 2018 (Item #2, Legistar #18-1840). Board approval of Ordinance: January 8, 2019 (Item 29, Legistar #18-1964).
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Chief Administrative Office
FINANCIAL IMPACT
There is no financial impact associated with the combination of fees. It is anticipated that this fee will not account for the total staff time required for the permitting functions, and staff will collect data on staff time and return to the Board with a recommendation to right-size the permit fee.
If the Board chooses to not approve the combination of fees, the total fee cost for a VHR permit would be $43 for a new permit and $33 for a renewal, representing a loss in fee revenue of $119 for each VHR permit each year (approximately $110,000 per year).
CAO RECOMMENDATION
It is recommended that the Board approve this item.
CLERK OF THE BOARD FOLLOW-UP ACTIONS
Provide one signed copy of Resolution to the Planning and Building Department, and one signed copy to the Chief Administrative Office.
STRATEGIC PLAN COMPONENT
Good Governance
CONTACT
Jennifer Franich, Management Analyst
Chief Administrative Office
Tiffany Schmid, Director
Planning and Building Department