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7.B. - Page 3 of 9 Implementation The Community Development Department sent notices to potential short-term rental hosts requiring hosts to register short-term rentals by May 1, 2019. As this is the first time the City has implemented the short-term rental program, it is important to increase the rate of registration among existing rentals. To do so, staff recommends, if the fee is approved, allowing a grace period in which no fee is required. The proposed grace period would last until June 30, 2019. Staff recommends setting an effective date of July 1, 2019 in order to encourage registration rates and to be consistent with the administratively adopted Master Fee Schedule. Additionally, staff recommends following the City's practice of prorating business licenses based on the date of business commencement. The short-term rental registration would similarly be prorated based on the date of the City's acceptance of a short-term rental registration application. The proration is further described in Exhibit A to the Resolution. Fee Comparison Staff also reviewed the practices and fees of jurisdictions within the region including Belmont, Menlo Park, Mountain View, Palo Alto, San Carlos, San Mateo, San Mateo County and Sunnyvale. Among these jurisdictions, only Mountain View, San Mateo, San Mateo County, and Sunnyvale allow short-term rentals. The following table shows how jurisdictions apply the various short-term rental fees. NeighboringTable 1: Jurisdiction Fee Type: Business Amount Term License, Permit, or Registration Redwood City Registration $205, flat amount Fiscal Year/ Prorated Mountain View Business License and Minimum $75 for Calendar Year / Registration license, $165 for Prorated registration. $240 minimum total San Mateo Rental License $114, flat amount Fiscal Year / Not Prorated San Mateo County Permit $300, flat amount 12 months from date of issue Sunnyvale Registration, may $64 minimum Fiscal Year require license for 3 or more listings Based on the above information, Redwood City's registration fee would fall in the middle when compared to other jurisdictions in the region. Recommendation Staff recommends adopting a proposed fee of $205, effective July 1, 2019, to be prorated and direct staff to administratively incorporate these fees into the City's Master Fee Schedule. FISCAL IMPACT The proposed fee represents the cost for a service that is discretionary on the part of the user and primarily benefits the user. To the extent the City does not fully recover its costs for these services, General Fund dollars will offset the activity. City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org 508