Enforcement efforts on the sros. We are going to be the eyes and ears often times for those type of listings and we want to work with dbi so we see the sros popping up, we show them to them and provide whatever we can. Sometimes we also see kind of the same players out there not just in terms of the sros but shortterm rental violations generally. And we can provide that sort of intel to them as well. Supervisor peskin i think its important there be one Central Place where all of this is tracked. Even if its not within your purview to enforce. To the extent that there is transparency between dbi and ostr, it would be important that ostr tracks that data. Certainly. One other item i wanted to touch upon this comes up as a question a lot. How do people rent out their units . So, people have the option of renting out what we call hosted rentals where theyre presented in unit. They can do that 365 days a year. They have the host present and its sort of considered to be a low impact type of rental situation because its going to be rented on an individual bedroom to a Single Person or couple or things like that. And then folks also have the option of doing up to 90 unhosted nights per year. So, we get required quarterly reporting. Each quarter from the host. They report data to us that gives more visibility how they operate. The most recent quarter we have complete data would be Third Quarter of 2017. 16 of hosts reported having no stays within that quarter, which is not unusual. There are folks that do this kind of seasonally. Of those hosts with stays, 58 indicated they were conducting hosted rentals only for an average of 68 nights per year. 23 reported doing solely unhosted rentals for an average of 33 nights per year and 18 did a combination of hosted and unhosted, which again is permitted under the ordinance. Supervisor peskin how do you determine they are in residence 270 days a year . So, that is where a couple of things are extremely helpful in terms of data. We do web scraping of airbnb site and that gives us information on for example how many reviews per month they have. So, if theyre reporting a lot of reviews per month on or were seeing a lot of reviews per month on a unit that is an entire home, doesnt necessarily mean they are in violation, but it merit as closer look. We might see that and say, theres something going on here. Theyre reporting if you did the basic math and you understand that not everybody who is a guest leaves a review, you do the basic math of how many reviews per month theyre getting and minimum night stay required in that unit, you start getting a profile. This person seems to be operating close to or over the 90 night limit. We may reach out to that individual host and request the booking calendars for the last two years and we can either verify or refute that they are indeed in compliance. Supervisor peskin and of your 677 enforcement cases, how many of those what percentage of those are that type of case . The vast majority of those cases were this thing we sort of got them on was the basic fact they were just hosting without having a registration. Thats the very fortunately the low burden of proof that made our administration stray ifrt something we could do administrative something we could do. We know you are doing a fulltime vacation the vast majority of year. Thats where the web scrape data comes in. So, it was were didnt want to short of randomly pick enforcement cases out of the barrel or solely respond to complaints. We wanted to triage and go off the multiple property folks and thats where the web scrape data is great in sifting out who the properties are taking units off the market and causing quality of life and noise impacts. Supervisor breed how many months are in a quarter . Three months. Supervisor breed and so, the reporting in terms of so, each quarter its like the honor system. So, the host reports what theyre doing or what theyre not doing . Correct. Selfreported data from the host. Supervisor breed so, is there a way we can get accurate data on these particular rentals . Is that possible . So, under the current ordinance, we have a couple of different options. Again as i mentioned we can if we look at if we compare the selfreported data to what were seeing in terms of the activity on someones listings, we can request the booking data from that individual host. They sort of turn over their screen shots or summaries of how many nights theyve booked directly through their airbnb account. If thats insufficient, we have the administrative subpoena short. We can say we want to get detailed records on these 30 hosts and the platforms then turn over that data. We have mechanisms of getting that data, that precise data. But were sort of guided to where to look by the kind of more broad brush web scrape data that we obtain as well. Supervisor breed doing thats the best way it seems like a lot of play layers and a lot of work. Do you think theres something easier that could be done in order to get data thats accurate . I think theres legislation that would require direct turnover of data from the platforms. Thats certainly beyond the scope of our existing legislation and it would probably raise a host of legal issues that im not prepared to answer today. I mean certainly that would be just from a practice perspective. I dont think its absolutely necessary. I think were lots of tools in our tool kit, we have lots of ability to go back and audit individual hosts, get information on a collection of hosts through the administrative subpoena process. We have a lot of tools in the tool kit. And i dont want to discount the importance of eyes and ears of neighbors. We still hear from neighbors and saying i know you gave this person a certificate but they are rent ago lot. Renting a lot but they are not at home. Supervisor breed i noticed a difference before this like since weve put forth the regulations, the lawsuit and the settlement. I have just noticed a difference and ive seen your enforcement agents out and about, which ive been happy about. Thank you. Ive also gotten some complaints about the enforcement agents as you know. [laughter] supervisor breed because theyre a little aggressive, which is important. But also i dont want them skarg scaring people either. I now it is a balance of doing what we need to do in order to crackdown. The good news, heres the thing. People put money in the meters because theyre scared to get a parking ticket. Our parking control officers, they dont mess around when it comes to making sure that people are paying the meter. And so, thats just kind of one of those things that people Pay Attention to. So, i want this industry to be very similar in that regard where people theres a fear to do this appropriately because you will basically get a fine for breaking the law. And i think again as i said in the beginning, your office has been great in really being out there in the neighborhoods, cracking down, paying attention to detail, which makes it better for the people who are following the law and getting rid of those folks, getting them out of the system is going to just make this that much more better. Thank you for doing that. I know theres some challenges and other things that were going to have to do and deal with. But this is a great start. And i am just really concerned about the thing that i mentioned earlier, which of course is until theyre approved, i dont believe that they should be hosting. And then finally, this other issue around the honor system in terms of reporting. I think we need to get a handle on that too. Thank you for those comments and for the compliments too. On that note, i do feel very fortunate to work with the staff i do. They are really incredible and dedicated folks and take their job seriously. So, i thank you for that recognition. Supervisor peskin and just relative to Cost Recovery, the 2,100 plus or minus registered hosts, is that annual fee covering you and your staff . So, the amount of the fee that we assess covers only the cost of processing the application on average. So, it doesnt necessarily account for the enforcement costs. So, were going to see with the surge in applications, once we reach a static stat where most are registered, that revenue is going to drop off. We recoup some of that every two years when folks have the certificate expire and they come in for renewal. And the other part of Cost Recovery is the enforcement revenue. If were in a world where were able to more effectively police at the platform level, and platforms are compliant taking down or turning off capabilities for unregistered listings, thats fantastic. But it doesnt drive enforcement revenue. We do have a bit of a structural issue with the fact we are under a new sort of system of operating. We will still be doing some host enforcement basics. That is a bit of a challenge to work through. Within the ordinance, the Controllers Office takes a look at the fee and whether its covering the cost of the registration process. So, well work with the Controllers Office to give them best information on our current state of affairs in terms of applications were receiving, how long its taking accounting for the new appeals process that we have and the fee may be adjusted accordingly. I wouldnt anticipate several years go the fee went from 50 to 250, which was a surprise to some understandably. I wouldnt anticipate percentage wise in sort of a jump in fee anything commiserate with that. But it is important we do coast recovery at least for the application process of the program. Supervisor peskin thank you. I think you have one more slide. Yes. Wanted to leave up the Contact Information for the website, email, phone. We also have walkin hour. We have appointments. I did want to conclude giving my heart felt thanks to my dedicated and talented staff in the office of shortterm rentals who have been helpful getting to the point we are seeing the outcomes. Folks from the City Attorneys Office, city administrators offers and many others. This really has been a good sort of collaborative city family effort. I appreciate everybodys hard work on that. Of course thank you all for the time to present here today and im available for any questions that you may have. Supervisor peskin thank you, mr. Guy. And i want to also thank you and your staff and the City Attorneys Office and my colleagues who all voted for this measure. It has been a long road. We still have a ways to go. But im delighted to see the progress and we will continue these checkins from time to time as this all shakes out. I have a number of speaker cards i see supervisor breed just i want to ask real quick before we open it up to Public Comment. Mr. Guy, we had had a meeting about this a few months back. And one of the things that you said was that after a dropdead date when the platforms have got to remove listings that arent registered from their platform, you would be able to theres a time period where youd be able to collect sufficient data that could help us understand whether or not the regulations that we put in place are working effectively. So, can you tell me what that timeline is and when we can expect to see data that helps us understand exactly whats going on . This data is extremely helpful. Its the beginning. But it seems as though its going to be a completely different ball game now, especially because we have the cooperation of the platforms. So, thats going to change these numbers as well and maybe significantly. So, can you tell us when we can expect to get that kind of information to understand exactly how these laws are working . Right. A couple of things have not happened yet. Of course we just had the last phase of the delisting occur last night. We have sort of preliminary numbers and estimates, but we will get much more final data on those numbers shortly. And within a matter of several days. We also have quite a few applications to go through and obviously some of those will be approved. Some will be denied and numbers of listings and hosting will change correspondingly. So, expect sort of late february, early march, we would have a much better sense of where things will finally shake out. If the cadence of the hearings will be on a quarterly basis, we will definitely have sort of final retrospective data on the entirety of this kind of tranching process at that time. Supervisor breed okay. What day was that . Some time in april. Supervisor breed i thought it would be more in february . Again. The applications get reviewed. The data gets more refined. We could have data much sooner than the next april date. Supervisor breed but you think that more comprehensive data not until april . No. Im sorry. I was just referring if we were doing the cadence of these hearings on sort of a quarterly basis. If we did the hearing in april, we would have data by that time. But we we will get much more definitive data earlier to you than that if desired. Supervisor breed thank you. Late february. Something like that. Supervisor breed okay. Thank you. Supervisor breed madame chair, i have a number of speaker cards. Keith freedman, phil lee, jason holt, laura johnson. First speaker please. Public im a professor after city college. And coach of the home shares Democratic Club in San Francisco. I just wanted to thank kevin guy and his office for their hard work in this settlement agreement. We think we have seen a lot of progress. It helps all the hosts because we are really looking for people who are supporting the law and supporting San Francisco. We think weve seen a lot of good progress. I want to address the mayors comments whether it is okay to host while your application is pending. What were concerned about is people being penalized who have good intentions and its a concern there. If the office of shortterm rental had a Service Level agreement who could guarantee a return time on an application, it might have been agreeable to make hosts wait. But since there isnt, people could be waiting months to host when they are in compliance with the law. If there are any changes made there, we appreciate the policy and we think it has encouraged a lot of registration by good actors since they dont have to wait. We do know a lot of hosts that are waiting. They have gotten an Application Pending and for personal reasons they are waiting. People are selfselecting and we dont want to punish people. Thank you. Supervisor peskin thank you. Next speaker please. Public hello. My name is phil wllee. Im speaking in support of the registration process and implementation of the settlement. Im a board member of the home shares Democratic Club as well. Speaking on behalf of my mother today whose first language isnt english. I told her to register seeing as i was available as an option. And she has set her requirement plans based on the rules, the way they are right now. She was one of the first to comply and register and shes made a lot of changes to her living situation and investments based on the current rules. We are certainly very encouraged that there seems to be stability in the way the rules are set up for hosts who have always intended to comply and play by the rules. And hope that there will be stability of the rules in the future. Thank you so much. Supervisor peskin thank you. Next speaker. After the next speaker, joe lighthouser, kevin cred it. Public good morning. Im in district eight and proud to be a registered host that fully complies with all the laws that this legislation has set forth. We accurately report to each quarter all of our data and i use that data in those reports to then be able to calculate metrics that help me in becoming a better host. And we comply with any audits that we ever receive. I love that being a host brings the world to my door. Ive had guests from every continent except antarctica. Im still waiting for a profile picture of a penguin to come in. 30 plus countries, 30 plus states here in the u. S. And i get those people that come and experience the city through my eyes. We make recommendations to local businesses like momma gs, all the little spots in the castro that we love that these guests might not ever see if they were to stay in other places. And we support local businesses ourselves with all the handy men and work that weve done in our home to make it more accommodating for guests. Im supporting the local Business Economy as we continue to make improvements to our hundredyearold home. I thank you for helping get the ptr process online and for this service because hosts like us want to be in the good graces of the city and are happy when the bad actors are removed from it. We just ask that you give this registration process enough time and space to determine its successes before proposing any new legislation. Thank you very much. Supervisor breed next speaker please. Public thank you. Im impressed with some of the things they seem to be doing in terms of enforce. And i want to applaud the city for creating this environment through the settlement. And i also echo the idea that i think we need to see if this works. Im kind of surprised and shocked to be honest with you from the three of you that we havent been hearing more congratulations to his office. Half of the listings have been removed. Half. In a city of almost a million people. We have 2,500 hosts. And yet the questions have focused on what could they be doing wrong, how could they be cheating the system. It seems like theres a sense of distrust. I would urge you to try to give this a chance to work. Let the platforms and office of shortterm rental see how this all plays out. Yes, there may need to be adjustments made but we have made huge progress. Im shocked that doesnt seem to come across. I just want you to maybe reflect on that a little bit. I think that while some there were a lot of people doing this illegally, we have got them covered. And those Housing Units will likely come back on the market. But the people who are doing it now are doing it for legitimate reasons like the two previous speakers that you heard from. I just want to sort of echo that i think this is a good thing and we should see how this all plays out. Thank you. Supervisor peskin thank you. I think i complimented mr. Guy both online and offline and noted the progress in this and i also note that had airbnb not litigated this, we wouldnt have had to have this hearing at all. Next speaker please. Public hi. I would give you my certificate number but in view of the falsification of numbers, this may not be the proper forum. But we have been registered in anticipation of hosting for very early on in the process. We have not hosted yet. My wife and i have not hosted yet because we are waiting to remo