Council approves Chamber of Commerce contract for 2025 through 2027

ATASCADERO — The Atascadero City Council met for its regularly scheduled meeting on Tuesday, Oct. 8, at 6 p.m. The hybrid meeting was held in the City Council Chambers.

During the meeting, Community Development Director Phil Dunsmore addressed the council on a new framework for a short-term rental ordinance in Atascadero.

“First of all, I’m going to give you a little background. What are we talking about? We’re talking about any residential unit or even a room for that matter that’s rented for less than 30 days,” said Dunsmore. “When they’re rented more than that, that’s a normal rental.”

He also stated that short-term rentals are also subject to TOT (transient occupancy tax), like hotels and motels. There are 139 short-term rentals in Atascadero as of September 2024. 

“In fiscal year 2024, the city did receive about $331,500 in TOT just from these types of rentals alone,” stated Dunsmore.

Currently, Atascadero issues a business license over the counter called a Home Occupation Business License and only one license is allowed per property. In addition, only 40 percent of units in a commercial mixed-use project can be short-term rentals unless it becomes a hotel.

“We don’t allow them [short-term rentals] in ADUs that are built after Jan. 1, 2020, not allowed within a structure that’s unpermitted like a shed or a seatrain,” added Dunsmore.

The council went over potential zoning standards, applications for short-term rentals, annual reviews of the property, vendor tax collection and monitoring, and what to do with existing vacation rentals.

Councilmember Heather Newsom stressed that she wants to make sure that with an ordinance that she wants to make sure that it is fair to all community members who already have existing short-term rentals and the need to have them be part of the discussion moving forward.

“Let me ask, do we have a consensus that we should probably have some type of short-term rental ordinance,” asked Mayor Heather Moreno after some discussion and public comment.

All five members of the council agreed that they wanted to move forward with creating an ordinance to be put in place in the future.

The council discussed having staff draft an ordinance that would include needing to have an owner on-site or have it be a primary residence for short-term rentals.

“Bring back some statistics about what’s out there today, and do outreach to everybody who’s out there today [with short-term rentals] so they can be part of this conversation,” added Dunsmore.

The item will be brought back for more discussion at a later date. 

City Manager Jim Lewis then brought forth the Atascadero Chamber of Commerce Contract Fiscal Years 2025-2027.

“The City enjoys an excellent relationship with its Chamber of Commerce. I think that is, unfortunately, unique in California cities,” stated Lewis. “I want to thank Mr. Cross, the CEO, and his board for the good work they do in our community, and that’s why agreements like this are even possible.” 

Deputy Director for Economic Development Loreli Cappel then took over the presentation and stressed how the Atascadero Chamber has gone from the three P’s — parades, pageants, and parties — to the three C’s — covener, champion, and catalyst — for local businesses.

The contract budgets $138,962 in funds for the 2024 through 2025 year, and the cost will be adjusted going forward yearly through 2027 in accordance with the agreed-upon CPI.

The motion passed unanimously to approve the new contract with the Chamber.

The next Atascadero City Council meeting will be held on Tuesday, Nov. 12, at 6 p.m.