Oakley commission refines short-term rental rules; staff to return with cleaned-up draft in October

Oakley's Planning Commission advanced — but did not finalize — a broad rewrite of the city's short-term rental (STR) rules on Sept. 2, directing staff to refine definitions and regulatory language for additional review in October and potential referral to city council in November.

Staff (Stephanie) described the draft changes: the city would shift from a registration regime to a short-term rental business license renewed annually, apply a geographic cap measured as 0.5 miles in a straight line between property lines, and create a "high-impact" category for larger rentals. "Over The high impact rental is, yeah, a new thing for us, and it's any shorter rental that is for up to, well, 14 people," staff said while discussing draft thresholds; commissioners proposed clarifying that high impact means roughly 10 to 14 occupants and refining the final language.

Commissioners debated occupancy formulas (two persons per bedroom plus two overall versus other approaches), enforcement feasibility, and grandfathering. Staff said existing licensed STRs will be allowed to operate until normal business-license renewal begins in 2027, when new limits would take effect; if demand exceeds the cap in a defined area, the city would use a lottery rather than first-come, first-served allocation.

Legal counsel (Lisa) cautioned that state law limits municipal control over web advertising; the city can request removal of noncompliant listings but cannot fully regulate website content. The commission discussed possible rules on signage (no yard advertising), on-street parking prohibitions for guests, event prohibitions (no weddings or corporate training at STRs), proof of insurance (suggested $1 million minimum naming Oakley as additional insured), and a staged enforcement regime with warnings, fines, and potential revocation.

No members of the public spoke in person on the draft during the hearing; online participants did not offer comments. Commissioners asked staff to produce a cleaner draft with clarified definitions (occupancy, managing agent, advertising) and sample fee options for consideration at the next meeting, with further outreach and an FAQ for residents.