The Planning Commission will hold another hearing to discuss short term rentals on October 12 in the City Hall Council Chambers. The meeting is scheduled to begin at 5 p.m., however the short term rental issue has been placed at the end of the agenda.  Those wanting to know the anticipated time of the hearing can inquire of Planning Director Kate Black.

At the Monday, September 21st Council meeting, City staff presented options for prohibiting or regulating AirBnB type rentals for consideration by the City Council. (Read the staff report here.)

• Prohibit short-term rental of the 18 Second Units developed as low income housing. Staff strongly encourages the Council to adopt this provision, pointing out that the imposed rent restrictions would limit the AirBnB rate to $25 (very low income units) to $35 (low income units) per night for the units, before AirBnB takes its cut.
• Prohibit short-term rental of the 110 approved Second Units, which are not rent restricted. Staff notes that few are rented. Instead they are used as guest quarters or a home office.
• Prohibit short-term rental of the 66 apartments in Piedmont.
• No regulation of Home Swaps.
• Prohibit or regulate with standards short-term rental of rooms in a house. If allowed, the number of allowed rental days per year could be limited.
• Allow vacation rentals of whole houses with restrictions, perhaps limiting the number of allowed rental days per year.

The Piedmont City Council referred several questions back to the Planning Commission for further recommendations: whether home shares or vacation rentals should be permitted in Piedmont; if so, how should they be regulated; and how to enforce any regulations.

Excerpts from the draft minutes of the September 21, 2015, Council meeting:

Planning Director Kate Black noted that the regulatory environment regarding short term rentals has changed significantly since March and many cities are struggling with the issue. She reviewed regulations that have been passed or are being considered by other cities, noting all cities are facing the same issues: how to ensure short term rentals cause the least amount of disruption to nearby neighborhoods; ensuring that taxes are collected from each legal short term rental; how to address safety, indemnification, and notification; and how to enforce compliance.

The Council discussed the following issues – clarifying the landlord/tenant relationship with regard to subleasing; not turning rooms into commercial enterprises; that the City is not a destination location; neighborhoods being informed of rentals; and addressing this emerging economy. In addition, a Councilmember discussed prohibiting whole house rentals for more than 30 days as they could have deleterious effects on neighborhood’s quality of life.

The Council agreed on the following aspects of regulating Short Term Rentals:

1) No Second Units or apartments should be allowed as short term rentals so as to not jeopardize the existing low income housing stock and 2) Home swaps should not be regulated.

The Council referred the following items to the Planning Commission for a recommendation:

1) Whether home shares and/or vacation rentals should be permitted and if so, how they should be regulated; 2) How any enforcement of said regulations would be accomplished, including: i) Whether permits for short term rentals would be ministerial or discretionary (with neighbor notice). ii) How inspections of units should be addressed. iii) How any regulations should be enforced, including the amount of staff time devoted to enforcement as well as the cost. iv) Whether short term rentals should be limited to a certain number of days per year. v) Whether tenants should be allowed to sublet. vi) How taxes and fees should be addressed.

Residents are encouraged to attend the meeting and express their opinions and ideas. The Planning Commission hearing will be available live on KCOM, cable 27 or by logging on to the city’s website at www.ci.piedmont.ca.us

If you have any questions or comments, please call Planning Director Kate Black at (510) 420-3063 or email her         at kblack@ci.piedmont.ca.us . 

Written comments may be sent to: Planning Commission, 120 Vista Avenue, Piedmont, CA 94611 or by email to: kblack@ci.piedmont.ca.us

Planning Commission Agenda

View the Video of the September 21, 2015 City Council Hearing . 

Read the minutes of the September 21 Council meeting here.

On Wednesday, October 7, the Budget Advisory and Financial Planning Committee will update work on Piedmont’s city parcel tax. The committee is charged with considering the need for a voter approved parcel tax. The public can attend and participate in the meeting at 6:30 p.m. held in the City Council Conference Room in City Hall.  There will be no audio or written record kept of meeting discussion or presentations. Additionally, no broadcast via the internet or cable TV will be available.

The Budget Advisory & Financial Planning Committee will meet in the Police Department Emergency Operations Center, 403 Highland Avenue on Wednesday, September 23, at 6 p.m.  The Committee will review:

•   7- year Budget Projections
•  Parcel Tax
•  Future agenda items

The meeting is open to the public.  There will be no public broadcast of the meeting.

Piedmont’s Family Oriented Zoning and Short Term Rentals will be considered on September 21 at the Council Meeting – 

Short Term  and Overnight Rentals Are Generally Not  Legal  Under Piedmont Ordinances and the City Charter. 

On September 21, 2015, the Council will consider the issue  at 7:30 p.m. in the City Hall Council Chambers, 120 Vista Avenue, Piedmont, CA 94611.

In May 2015, City staff reported to the City Council that although Piedmont prohibits Air BnB and VRBO type short-term rentals,  they are listed online on several sites. While many cities around the world have adopted regulations, oversight and special taxes on short-term rentals of apartments, homes, condos and second units, Piedmont has yet to respond as AirBNB type rentals continue to operate in violation of existing laws and the City Charter.  

Questions Regarding Voter Participation

The City Charter has in recent years been skirted by changing zoning uses and requirements without voter participation.  This has caused dramatic changes for Piedmont’s previously stable single family residential zoning.  The Charter states:

“SECTION 9.02 ZONING SYSTEM The City of Piedmont is primarily a residential city, and the City Council shall have power to establish a zoning system within the City as may in its judgement be most beneficial. The Council may classify and reclassify the zones established, but no existing zones shall be reduced or enlarged with respect to size or area, and no zones shall be reclassified without submitting the question to a vote at a general or special election. No zone shall be reduced or enlarged and no zones reclassified unless a majority of the voters voting upon the same shall vote in favor thereof; provided that any property which is zoned for uses other than or in addition to a singlefamily dwelling may be voluntarily rezoned by the owners thereof filing a written document executed by all of the owners thereof under penalty of perjury stating that the only use on such property shall be a single-family dwelling, and such rezoning shall not require a vote of the electors as set forth above.”

Piedmont Law Does Not Allow Customers to Come to a Piedmont Residence. 

The Municipal Code currently states:

“The occupational use shall not generate pedestrian or vehicular traffic or parking needs beyond that normal to the district or neighborhood in which it is located. No business invitees shall be permitted to visit the premises;”

Piedmont law further states:

“No more than one room in the residence or any structure on the premises where the residence is located shall be used in connection with the home occupation, and under no circumstances shall a garage be used in any way related to such home occupation;”

Renting a room without using another room such as a bathroom or a kitchen is improbable.

 Permits Are Required Prior to Using a Home for an Occupation –

“All of the jurisdictions, like Piedmont, report that many hosts operate their short term rentals ”under the radar”. However, unlike most communities, it is relatively easy for Piedmont staff to identify illegal short term rentals because we have relatively few of them, we have active neighbors who report unpermitted activity, and matching an advertised rental with a specific property is generally not difficult for staff.” Staff report September 21, 2015

Piedmont’s current law  requires a permitting process that includes involving neighbors as well as City determinations for business use of residences. Since customers are not allowed to come to a residence, nor can there be use of the residence for publicity, short term rentals are currently not allowed.

During the discussion and consideration by the City Council on Monday, March 16, 2015, the rental of Piedmont rooms through internet companies, such as AirBnB,  the Piedmont Municipal Code requirement for use of a residence as a “Home Occupation” was not mentioned.

Piedmont’s Home Occupation ordinance states:

“There shall be no advertising, notices, publications or other written or oral means used to connect the occupation with the premises on which it is conducted and particularly there shall be no use of the address of such premises in any way connected with the occupation, provided that this shall not prohibit the use of name cards, stationery or invoices with the address of the premises.”

 “~  SEC. 17B.3 REGULATIONS ~

a. In order to conduct a home occupation on any premises located in Zones A, B, C, and E in the City of Piedmont, an application must be made by the resident proposing such an occupational use upon a form and in the manner prescribed by the City Clerk.

b. In addition to the application form the applicant must submit a rendering of the floor plan of the house showing which room or portion of a room will be used for the home occupation. This drawing should be accurate in its representation of the premises but need not be an architectural rendering.

c. The fee for a home occupation permit shall be non-refundable as set forth from time to time by resolution of the City Council.

d. The applicant or applicant’s representative shall mail to all adjacent residences (as defined in Sec. 17.2) a notice of intent to conduct business, the form of which shall be prescribed by the City Clerk. Said notice will set forth (1) The applicant’s name (2) The address of the proposed home occupation (3) The type of business to be conducted (4) A fifteen (15) day period during which comments on the home a fifteen (15) day period during which comments on the home occupation may be directed to the City Clerk.

e. The applicant or applicant’s representative shall provide an affidavit of service to the City Clerk as proof of satisfaction of Sec. 17B.3(d) above.

f. No home occupation permit shall be issued during the 15 day notification period.

g. Upon completion of the notification period, the application and any

g. Upon completion of the notification period, the application and any comments received shall be reviewed by the Public Works Director and City 17B-3 Home Occupations 17B-4 Administrator who shall determine if a home occupation should be granted under this section based upon the fact that none of the restrictions of Section 17B.2 have been violated or will be violated due to the proposed nature or conduct of the home occupation.

h. All persons receiving a home occupation permit shall be required to have a valid city business license. Lapse of six (6) months or more in a business license shall constitute grounds for cancellation of the home occupation permit.

i. Home occupation permits shall be valid so long as there is no change in the location or nature of the business and a valid city business license is on file in the City Clerk’s office and none of the restrictions of Section 17B.2 have been violated. (Ord. No. 349 N.S., §3; Ord. No. 388 N.S., §3, Ord No. 532 N.S §3, Ord. 709 N.S. §2)” 

Read Piedmont’s Home Occupation ordinance. 

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Unintended Consequence of Promoting Second Units in Piedmont –

To provide affordable and low income housing in Piedmont, City policies have promoted second units, granting variances and retroactively allowing apartments in homes. The City has sought and gained awards for this approach to providing for low income and affordable housing. However, rather than becoming rental housing for full time lower income families, these new units have proved ideal for AirBNB rentals. As online short-term rental services have mushroomed, these housing options have opened Piedmont to a commercialization never seen before and according to staff, in most cases without payment of Piedmont’s rental income tax to the City.

From the City’s view, although the one-time weekend renter does not occupy any seats in Piedmont schools or request city documents, the second units are not providing affordable or low income housing for permanent residents, as intended by City policy. Meeting goals for housing units are defeated by the transfer of housing to short-term rentals as a hotel or bed and breakfast.

As Piedmonters commercialized their properties, Piedmont’s desire for low income and affordable housing has been partially undercut by some property owners’ desire for increased income by converting their house or second unit to short time rentals.

Staff states in their September 21 report:

“Piedmont does not have the tourist draw of beaches, shopping or entertainment venues the cities with the largest problems have. In fact, based on reading reviews left by people who have rented Airbnb listings in Piedmont, they tend to be in town for local social events such as weddings and anniversaries, or regional events at UC Berkeley.”

In the staff report there is no assessment of safe, convenient, lodging near Piedmont.  For those residing in Piedmont, it is generally known that finding safe, nearby lodging can be challenging, making Piedmont homes and second units desirable and potentially in high demand for short term lodging.

Full time Landlord Duties May Be More Onerous than Occasional Weekends –

Piedmonters with second units often consider being a year-round 24- hours-a-day landlord too great a nuisance. Some have opted to rent for few days only when it is convenient through online services instead, knowing that parents bringing their students to Berkeley or Mills College won’t be doing much cooking, complaining in the middle of the night, withhold rent, or exercise the right to “repair and deduct” and they will be gone in a couple of days. AirBnB vets the renters and collects the payment for the hosts.

Express your opinions and ideas. Alternatively, you may watch the City Council hearing on KCOM, cable 27 or by logging on to the city’s website at www.ci.piedmont.ca.us: on the right hand side of the homepage under the “City Council” heading, click on the “Online Video” link, then click on the “September 21, 2015” heading, click on the “Video” or “In Progress” link, and start watching!

Written comments may be sent to the City Council, c/o Piedmont City Clerk, 120 Vista Avenue, Piedmont, CA 94611 or by email to: jtulloch@ci.piedmont.ca.us. Correspondence received by the City Clerk is considered part of the public record.

~~~~~~~~~~~~~~~~~~

“Additionally, as a means of reaching as many Piedmont residents as possible, staff was directed to continue to work with the press to make sure that there was high level coverage, and to continue to send direct notices and reports to the email list of people wishing to participate in the discussions.” Staff report dated September 21, 2015.

Read the entire staff report here.

Editors’ Note:  PCA is on record requesting all City public notifications, press releases, agendas and agenda staff reports, thereby allowing PCA to inform our hundreds of readers of City news. PCA was not included on the recent notification list regarding short term rentals as were some other media outlets. 

Residents have expressed concerns about the influx of short-term rentals. The City Council will consider the matter including adding new laws and enforcing existing laws on September 21.

Council and Staff Encourage Second Units as a Technique for Meeting  State Housing Goals.

Adding second units on single family parcels has been heartily embraced by the City Council and staff as a method to meet State goals for more housing, particularly for low income /affordable units. Piedmont frequently allows, through variances, low income housing units with no off-street parking, even where on-street parking is difficult for neighborhood residents’ guests and service providers.

Recently, when an affordable second unit built without permits was brought to the City Council on the basis of inadequate parking, the Council held to the policy of encouraging and approving second units, despite a failure of the property owner to provide required parking in the heavily impacted neighborhood.

Issues of safety, privacy, noise, and parking from short term rentals – 

The May 16, 2015 Council meeting record states:

“Alicia Kalamas, and John Mittan each spoke against short term rentals, citing negative effects on the community, the possibility of criminal behavior, and lack of connection of the renters to the community. Tom Ferguson expressed a recommendation that there be tight regulations if they are allowed. Steve Wubbens expressed concern that affordable long term second units like his will be replaced by more lucrative short term rentals, making it difficult for divorced people like him to live in town close to his children.” 

“Mayor Fujioka explained that the issue of short term rentals was brought to the Council’s attention because of neighbor complaints, and that this is the beginning of a long discussion on the topic.”

Further negatives for short-term rentals are: ever changing transient populations, potential increased fire and police demands, parking and noise problems, administrative costs, and failure to tax the commercialized properties.  Neighborhood cohesiveness has been noted as a concern. These problems have been brought up if homes are turned into businesses generating vehicular and pedestrian traffic.

Many credit Piedmont’s desirability as a residential city to heavily supported schools and excellent infrastructure largely based on stable zoning, quiet, safe neighborhoods, and general concern for the well being of the community.

While Piedmont neighbors complain of noise, parking problems, loss of privacy and uneasy feelings as a result of short term rentals, Piedmont’s long standing law, “Home Occupation, Chapter 17B.2.” has not been enforced in response to the recent flurry of short-term rentals.

In prior years, when a  Piedmont home was identified in publications as a “bed and breakfast,” the City was prompt in sending legal notice to the owners to cease and desist the illegal use. The notices referred to limitations on “Home Occupation” under which “bed and breakfast,” use of residences in Piedmont was not allowed.

Piedmont Lacks Staffing to Oversee Current Rentals – Affordable or Short Term.

Piedmont currently has no system or staffing dedicated to verifying whether or not City approved affordable units permitted to meet State housing goals and receiving City tax exemptions and parking variances are maintained during the required time period, as an affordable unit. Additionally, once the required time period lapses for affordability, the parking variances and second units remain available to be rented at market rates or, depending on Council actions, as a short term rental.

Awards for the innovative manner Piedmont provides affordable housing by permitting rent restricted second units can, in the long term, be used for short term rentals, negating genuine long term provision of affordable housing.

San Francisco unions, land owners, affordable housing advocates and neighborhood groups unhappy with the adopted ordinance have placed an initiative on the ballot that is being heavily opposed by AirBNB and other online services. (See Related article on Prop F) No ballot measure by initiative or Council action has been mentioned in Piedmont as an option with the exception of not wanting to place a tax before the voters due to the cost of the election.  

 Taxes An Issue

Single family parcel owners are taxed per parcel rather than per residence for School Taxes.  The previous progressive school parcel tax recently changed to a flat parcel tax approved by voters requires a one-bedroom cottage on a tiny lot to pay the same school tax as a 20-room mansion on several acres. And contrary to the recently approved School Tax ballot language, people who own two parcels with one residence have been taxed as though the property is only one parcel.  Further, properties with a second (2) legal dwelling unit on a single parcel pay the same amount as properties with only one residence on the parcel.

Read the full staff report here.

You are encouraged to attend the September 21, Council meeting at 7:30 p.m. and express your opinions and ideas. Alternatively, you may watch the City Council hearing on KCOM, cable 27 or for a live webcast by logging on to the city’s website at www.ci.piedmont.ca.us: on the right hand side of the homepage under the “City Council” heading, click on the “Online Video” link, then click on the “September 21, 2015” heading, click on the “Video” or “In Progress” link, and start watching!

Written comments may be sent to the City Council, c/o Piedmont City Clerk, 120 Vista Avenue, Piedmont, CA 94611 or by email to: jtulloch@ci.piedmont.ca.us. Correspondence received by the City Clerk is considered part of the public record.

District Facilities Master Planning Process, District Assistance with Litter in Main Park, Civic Center Parking Issues, City Facilities Planning – Space Analysis for the Recreation Building and Study of Options for Possible New Aquatic Facility,  Police Department Training “Response to Mass Casualty,” Holiday Book Drive, and Landscaping Issues are on the agenda for discussion. 

The School Board/City Council Liaison meeting will be held Tuesday, August 25, 2015, at 4:00 p.m. in the City Council Conference Room.  The meeting is open to the public for participation and comments. Because of construction work, participants must enter City Hall through the entrance to the Fire Department.  The meeting will not be broadcast.

Tuesday, August 25, 2015  4:00 p.m. 

City Hall Conference Room, City Hall,

120 Vista Avenue,

The agenda is below.

Open Forum: Public participants may speak to items not on the agenda – overall time limit – 10 minutes.

Public participants may address the following items as they come up on the agenda.

1. Briefing by District on Progress with the Facilities Master Planning Process

2. Discussion of Littering in Main Park and Opportunities for District to Assist with Control

3. Discussion of Civic Center Parking Issues

4. Discussion on City Facilities Planning:

(a) Space Analysis for the Recreation Building

(b) Study of Options for Possible New Aquatic Facility

5. Briefing on Police Department “Response to Mass Casualty” Training

6. Discussion of Landscaping Issues

7. Discussion of the Annual City/School Holiday Book Drive

8. Schedule of Future Meetings

(a) November, 17, 2015

(b) February 9, 2016

(c) April 26, 2016

On Thursday, August 6, at 6:30 p.m. in the Police Department Emergency Operations Center, 403 Highland Avenue, the Budget Advisory and Financial Planning Committee will consider items critical to Piedmont’s financial stability.  The public can attend and participate in the meeting.  There will be no audio or written record kept of meeting discussion or presentations. Additionally, no broadcast via the internet or cable TV will be available.

• Review the financial projections prepared for the City’s Annual Budget and provide comment on whether they provide for the long term sustainable financial future of the City. This review shall take place between the preparation of the budget in April and its approval by the City Council in June of each year.

• Review and provide comment on the Mid-Year Budget Reports.

• Provide a financial review of any new program commitments and funding sources in excess of $250,000 in any fiscal year.

• Periodically review and comment on the sufficiency of funding for long term obligations, including the Sewer Fund, Equipment Replacement Fund, Facilities Maintenance Fund and the City’s pension and retiree healthcare costs and funding.

• Periodically examine the need for the Municipal Services Special Tax (Parcel Tax) and recommend whether this tax should be continued, and if so, at what rate.  This charge shall be accomplished not later than eighteen (18) months prior to the expiration of the tax as set forth in Chapter 20B of the City Code.

Approval of prior meeting minutes are on the agenda:

On Monday, August 3, 2015, starting at 7:30 p.m., the City Council will consider Community Hall parking lot restrictions, City Hall ground water routing into sanitary sewer system, and 5K race street closure.

• Piedmont High School FallFest 5K race street closures on Saturday, September 26 to raise funds for the Wellness Center. Several blocks of Craig, Crocker, Farragut, Highland, Hillside, Magnolia Mountain, Park Way, Sea View, and Wildwood Avenues would be closed from 8:15 a.m. to 9:45 a.m.  Read more here.

• Community Hall Parking Lot options: “The primary purpose of the lot is to serve the users of the Community Hall.” A one-year trial of new parking restrictions is proposed. The majority of the lot would be limited to two-hour parking. Five slots would be limited to 15 minutes from 8:45 – 9:30 a.m. and noon to 1 p.m. for drop off/pick up. Three slots would be reserved for the Recreation Department vans and five slots would be reserved for PUSD employees from 7 a.m. – 2:30 p.m. There would still be days when the entire lot would be closed for special events. Read more here.

• Approve a League of California Cities Resolution urging the State to provide sufficient funding for local street and highway roadbed maintenance. Read more here.

• City Hall sump pump rerouting for collected groundwater into the sanitary sewer $19,000. City staff has been working with the Alameda County Environmental Health Department since a leak was found in former fuel tanks in 1988.  Read more here.

Construction debris and removal dominate Council Agenda on July 20 –

The Piedmont City Council will meet Monday, July 20, beginning  with a Closed Session in the City Hall Conference Room at 7 p.m. for consultation with legal counsel on anticipated litigation. Any action taken will be reported in the following open meeting, expected to begin at 7:30 p.m. The public is invited to attend the public meeting in the Council Chambers at City Hall, 120 Vista Avenue.

Agenda:

A public hearing on an appeal of a Planning Commission approval. Staff Report

Consideration of $339,745 purchase of Motorola radios for Police, Fire Department and Public Safety. Staff Report

Consideration of agreement with Green Halo on reporting of construction debris and removal according to California law regarding recycling.  Staff Report

First reading of City Code amendment on construction debris and removal. California law requires construction waste management plans for new construction or additions costing $50,000 or more. Staff Report

The Police and Fire Pension Board meeting scheduled for Wednesday, July 22 at 4 p.m. in the Council Chambers was cancelled on July 16. A new date for the meeting has not been announced.