Council Overhauls Short-Term Rental Rules, Raises Member Pay for First Time in 25 Years

The Walnut Creek City Council used its Sept. 1 meeting to tackle two policy items that had languished for years — directing staff to scrap the city's outdated bed-and-breakfast permitting framework for short-term rentals and introducing an ordinance to more than double councilmember compensation from $650 to $1,600 a month, the first increase since 2002.

• Council unanimously directs staff to allow short-term rentals and replace the CUP-based B&B ordinance with a streamlined operator permit, sending the framework to Planning Commission for community input

• Ordinance introduced to raise councilmember pay to $1,600/month, effective Dec. 2, 2026, when the new council term begins — first increase in nearly 25 years

• DUI arrests nearly double year-over-year as police chief reports 89 arrests through September, up from 49 in 2025

• Measure O aquatics center hits construction milestone with pool excavation complete and gunite scheduled for September

• New trash hauler contracts bring pickup day changes for roughly 20,000 of 68,000 households across six cities starting in March, with $10 overage charges coming in November

• $1.8M recreation software contract approved after councilmember pulls item from consent to question omitted transaction fees

Only 3 of 111 Rental Properties Are Legal. That's About to Change.

Why it matters: An estimated $169,000 in annual transient occupancy tax revenue is slipping through the cracks because the city's existing permitting process is so burdensome that virtually no short-term rental operators bother to comply. All five councilmembers agreed the current system is broken and directed staff to build something that actually works.

The basics: Walnut Creek currently regulates short-term rentals under a decades-old Bed and Breakfast Ordinance that requires a conditional use permit — a costly, time-intensive process designed for commercial inns, not someone listing a spare bedroom on Airbnb.

Where things stand: Community Development Director Erika Vandenbrande laid out the scale of the problem: "While there may be 111 properties advertised across the different multiple platforms, there are over 265 listings for those 111 properties. Yet of that only 13 are registered and are paying their business licenses and some level of the TOT. And of these only three have conditional use permits."

City Manager Dan Buckshi explained why staff hasn't cracked down: "We have not asked them to proactively enforce and collect the TOT and ask them to come into compliance … if we had 111 come in to actively comply, we couldn't handle that type of volume at this point because of the process involved."

The council coalesced around replacing the CUP requirement with an operator permit — faster to obtain, easier to enforce, and scalable for dozens of simultaneous applicants. HDL consultants estimated the city could capture just under $169,000 in additional TOT revenue with better compliance.

Guardrails Take Shape

Members spent over an hour sketching out the policy contours they want staff and Planning Commission to refine.

Councilmember Cindy Darling pushed back against the idea of banning STRs outright, noting that neighboring cities that prohibit them still have active Airbnb listings: "Every one of them has short term rentals listed on Airbnb. So they're in the same position that we're in, which is they say you can't do it, but people are doing it anyway."

Councilmember Craig DeVinney proposed requiring owners to live in the property for at least six months before renting it out and limiting each resident to one STR permit: "Should the person have to live in the house for at least six months to be able to rent it out … I think if we do that, it will cut down on this residential being turned into commercial."

Mayor Pro Tem Matt Francois outlined enforcement teeth, proposing that "if it's being operated in a manner that's adverse to public health, safety and welfare as reasonably determined by city staff, the operator permit goes away and that can be done immediately," along with a 12-month waiting period after a permit denial or violation before an operator could reapply.

Mayor Kevin Wilk voiced concern that investors could buy units in new developments — including an eight-story project just approved by Planning Commission — specifically to operate as short-term rentals, undermining the city's push to build housing stock.

The other side: Three residents weighed in. Lisa Blanco, a Woodlands neighborhood resident, said residential zones should be for long-term residents and called for neighbor involvement in any permitting process. Pamela Trail, also from the Woodlands, criticized the lack of enforcement against repeat violators and called for background checks and site-by-site review. Jan Warren took a different view, supporting a more reasonable compliance process and suggesting the city automate TOT remittance through platforms like Airbnb.

What's next: Staff will take the council's policy direction to Planning Commission for community input before returning with a draft ordinance. Key unresolved questions include whether to require hosted (owner-occupied) rentals only, how to handle ADUs built under state streamlining laws, and whether to cap rental duration at 30 days or keep the current 7-day limit — with DeVinney and Darling both favoring the longer window.

$650 a Month for 100 Hours of Work: Council Votes to Fix That

Why it matters: At $650 a month — a rate set in 2002 — Walnut Creek councilmembers earn roughly $6.50 to $8 an hour for what members describe as 80 to 100 hours of monthly service. Members say the low pay, combined with $10,000 or more in annual out-of-pocket costs for nonprofit galas and community events, creates a financial barrier that limits who can serve.

The basics: SB 329, which took effect in January 2024, authorizes general-law cities in Walnut Creek's population tier (50,000–75,000) to pay councilmembers up to $1,600 per month. Most general-law cities in Contra Costa County have already adopted the population-based rates.

Where things stand: Human Resources Director Trish Raver told the council that only five compensation adjustments have been made in 50 years. Mayor Wilk put the math in personal terms: "Divide that into $650 comes out to about $6.50 to $8 an hour for the time that I'm spending on council."

Councilmember Cindy Silva noted that even with compounded CPI, the $650 rate would have grown to approximately $2,100 over the past two decades — well above the proposed $1,600.

Councilmember Darling emphasized the barrier for parents with school-age children, noting that child care costs alone can exceed the current monthly stipend.

Decisions: Mayor Pro Tem Francois moved to introduce the ordinance; Councilmember Silva seconded, noting: "And I will second that as the other member who will have no benefit." Both are departing the council before the pay increase takes effect. The vote was 5-0 (For: Wilk, Francois, Darling, DeVinney, Silva; Against: none; Absent: none). No public comment was received.

What's next: The ordinance requires a second reading for final adoption. It takes effect Dec. 2, 2026, when the new council term begins — meaning no current member benefits unless re-elected. Francois recommended future reviews every four years to keep pace with inflation.

Five Priorities, Five Updates: Where Walnut Creek Stands

Five staff leads delivered a comprehensive progress report on the council's 2025–2026 strategic priorities, spanning economic development, sustainability, parks, planning, and public safety. A community survey for 2027–2028 priorities has been launched.

Aquatics Center and Parks

Public Works Director Rich Payne reported the Measure O–funded aquatics and community center is on schedule, with pool excavation complete and gunite scheduled for September. Completed capital projects include ball field lighting at Tice Valley Park, synthetic turf at Heather Farm, and court resurfacing. The PROS Commission recommended a hybrid approach for reusing the old aquatics site within an updated Heather Farm master plan.

DUI Arrests and E-Bike Enforcement

Chief of Police Ryan Hibbs reported a striking jump in DUI enforcement: "In 2025, year to date, we had 49 DUI arrests. And since then or since January of this year, year to date, we have 89. So that's quite a significant increase." Traffic collisions are down 11%. A joint nine-agency e-bike enforcement operation yielded 56 citations. Hibbs also reported no established homeless encampments and growing Business Watch and Neighborhood Watch programs.

Councilmember DeVinney flagged a related effort: "Just today, I spoke with our emergency medical care committee, which is a committee at the county level about e-bikes and e-bike safety. And so I hope that in the near future there'll be stronger county-wide coordination."

Economic Development and Sustainability

Economic Development Manager Mike Nieman reported all $100,000 in outdoor dining pod grants have been deployed, generating 4-to-1 private investment. Two entertainment zone events attracted 11,000 visitors. A new interactive data dashboard launched on Walnut Creek Connected, and staff completed a two-year economic development action plan.

Sustainability Manager Candice Rankin Mumby highlighted targeted MCE energy efficiency outreach to 430 high-use households, completion of lighting upgrades at Lesher Center, Clay Arts Guild, and the library using PG&E on-bill financing, and a 3.2% expansion of the bike network. The Youth Ride Free program logged 13,000 riders — a 15% increase over the prior year. The gas-powered leaf blower ban is averaging 150 reports per month with 85% first-time compliance.

General Plan Update

Community Development Director Erika Vandenbrande reported outreach at community events with a workshop planned for Sept. 24.

Trash Day Changes and Overage Fees Coming

Councilmember Silva reported from the August Recycle Smart board meeting that roughly 30% of 68,000 single-family households across Walnut Creek, Orinda, Moraga, Lafayette, Danville, and unincorporated areas will have their pickup day changed when new 10-year franchise agreements with Republic Services take effect in March. Starting in November, Republic Services will deploy new truck-mounted technology to identify overstuffed black carts or extra bags and begin enforcing $10 overage charges. Silva urged residents to right-size their carts before enforcement begins.

Mayor Pro Tem Francois praised Recycle Smart staff: "I just want to give a shout out to our great staff at that authority who not only put us in a good position to have new contracts for collection and post collection services, 10-year contracts two years in advance of the date that we needed them." He also noted that several Walnut Creek schools received Waste Buster awards for achieving 75% diversion rates.

Minor Items

• Consent calendar approved 5-0, covering Aug. 18 meeting minutes, warrant registers and payroll transfers, Subdivision 9683 final map (Mitchell and Shadelands Drive area), biennial Conflict of Interest Code update, the 2025–2026 CDBG annual performance report for HUD submission, a $506,862 pavement repair contract (plus contingency) to Interstate Grading & Paving Inc., and the June 2026 investment and pension trust report.

• ACTIVE Network recreation software contract ($1,798,358) approved 5-0 after Councilmember Silva pulled it from consent. Arts and Recreation Director Chris Farrow explained a prior authorization had inadvertently omitted pass-through transaction fees that net to zero; staff also added hardware contingency costs. The system supports the recently approved resident benefit payment discount.

• Emergency Preparedness Month proclaimed. Mayor Wilk presented a certificate of recognition to Don Prosnitz, a CERT volunteer retiring after 16 years of building the city's emergency communications infrastructure.

• City Manager Dan Buckshi warned of potential budgetary pressures from 926 state bills awaiting the governor's signature by Sept. 30. A detailed briefing from legislative consultant Townsend Public Affairs is expected in October.

• Councilmember Darling provided an update on MCE governance reform, including the agency's response to a Marin civil grand jury report, an ongoing CEO search, and power procurement workshops.

• A community survey for 2027–2028 council priorities is now open.