HomeMy WebLinkAboutCC AG PKT 2012-04-09 #M CITY COUNCIL AGENDA REPORT
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DATE: April 9, 2012
TO: Honorable Mayor and Members of the City Council
FROM: Quinn M. Barrow, City Attorney
SUBJECT: PROPOSED URGENCY ORDINANCE ESTABLISHING
INTERIM REGULATIONS TO SUPPLEMENT EXISTING
CITY REGULATIONS REGARDING SHORT-TERM
VACATION RENTALS OF RESIDENTIAL UNITS
SUMMARY OF REQUEST:
Adopt Interim Ordinance No. 1618-U establishing interim regulations to
supplement existing provisions of the Municipal Code regarding short-term
vacation rentals of residential units and direct staff to schedule a public hearing
on May 14 to consider extending the interim regulations.
BACKGROUND AND ANALYSIS:
Based on experience in the City and in other jurisdictions, it is known that short-
term vacation rentals (i.e., less than 30 days) have the potential to create
negative land use impacts for neighboring residential uses. These include but
are not limited to noise disturbances due to late night arrivals and parties with
numerous guests and amplified music, insufficient parking, and trash
accumulation. These problems are exacerbated when multiple units on the same
property are rented on a short-term basis to large groups. Moreover, because
short-term occupants do not stay in the residence for longer periods, they have
less personal incentive to moderate their behavior to avoid negatively impacting
the long-term residents.
As part of the adoption of Title 11 of the Municipal Code, the City Council
enacted Section 11.4.05.135, which requires vacation rentals to obtain a
conditional use permit ("CUP") and meet certain minimum operational standards
designed to eliminate or limit negative impacts created by vacation rentals on
adjoining residential uses. Prior to that time, the Municipal Code did not permit
vacation rentals. Previously existing vacation rentals that had already obtained
business licenses and were registered to pay the City's transient occupancy tax
were exempted from the CUP requirement but must still comply with the required
operational standards except for the limit on more than 2 units per parcel.
Agenda Item M
Notwithstanding enactment of Section 11.4.05.135, some vacation rentals in the
City have continued to negatively impact neighboring residential uses. City staff
has therefore proposed that the City adopt interim regulations to supplement the
existing provisions of Section 11.4.05.135 of the Municipal Code. These
regulations, which are set forth in the Draft Ordinance included as Attachment A
to this report, would temporarily supersede the existing requirements of the Code
until the City has a chance to study and develop more permanent regulations.
Because the summer rental season is rapidly approaching, Staff proposes that
the City Council adopt the interim regulations on an urgency basis so that they
can go into effect immediately.
A. Existing Regulations
The proposed interim regulations include the following requirements already
found in Section 11.4.05.135:
o A CUP would be required for all new vacation rentals and all vacation
rentals established after January 1, 2010. Previously grandfathered
vacation rentals would still not require a CUP, but would otherwise have to
comply with the operational standards set forth in the interim regulations.
• A requirement that all vacation rentals obtain a business license.
o A requirement that owners register for and pay the City's Transient
Occupancy Tax.
o A limit on rental terms to a maximum of 29 consecutive days.
o Compliance with all Fire Authority and Building Department fire and life
safety requirements.
o An annual fire and life safety inspection by the Orange County Fire
Authority.
o A requirement that vacation rentals in the Commercial Zone only be
allowed as an accessory use to an approved commercial use.
B. Proposed Regulations
The proposed interim regulations would differ from the existing provisions in the
following respects:
• The maximum number of vacation rental units on any single parcel would
be 2 units, and in the event that 2 vacation rental units are located on a
single parcel containing more than 2 dwelling units, at least one of the
non-vacation rental units would have to be occupied by either the property
Page 2
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owner or a property manager. This requirement would apply to future
vacation rentals and all existing vacation rentals, regardless as to whether
previously grandfathered.
® First-day arrivals would be prohibited after 9:30 p.m.
• The placement or storage of trash and refuse would be prohibited within
public view, except in proper containers for the purpose of trash collection
on scheduled collection days, and sufficient trash collection containers
and service to meet the demand of the occupants would have to be
provided.
o Each lease or rental agreement would have to include specific terms,
notifications, and disclosures regarding the City's requirements and
regulations regarding trash, noise disturbances, and 24 hour complaint
procedure.
o Owners or property managers would be required to be personally
available by telephone on a 24-hour basis at a number provided in
advance to the City, and would be required to respond promptly to
nuisance complaints and to keep a record of such matters.
C. Grandfatherina Issues
As mentioned above, the proposed interim regulations would prohibit any parcel
from having more than 2 vacation rental units, and if 2 vacation rental units.are
located on a parcel with more than 2 dwelling units, then one of the other units
would have to be permanently occupied by the owner or a property manager.
This requirement would apply to all vacation rentals, even if previously granted a
CUP or exempt from the CUP requirement.
Based on City records, Staff believes that this provision may affect the following
properties:
O 1001 Ocean Avenue (8 units) o 1499 Seal Way (3 units)
e 1508 Ocean Avenue (4 units) o 1521 A Seal Way (3 units)
Under the proposed regulations, these and possibly other similarly situated
properties would be limited to a maximum of 2 vacation rental units, and would
be required to have an owner-occupant or a property manager residing in one of
the other units.
The Draft Ordinance includes an abatement and amortization provision that
would allow such properties to exceed the new numerical limits if the property
owner can supply proof, no later than April 16, 2012, that he or she has already
rented more than 2 units on a short term basis after April 9. In such case, the
owner may exceed the limit of two units for purposes of honoring existing
Page 3
contractual obligations during the next 5 months. Moreover, if every unit on site
has been rented in such case, then the owner or manager would not have to live
on site. The Draft Ordinance also specifies a public hearing process to consider
granting an extension to the amortization period if necessary.
D. Additional Issues for Further Study.
Additional issues that require further study by staff include:
o Whether to require all vacation rentals to obtain a CUP, regardless of
when established.
O Whether and how to regulate occupancy limits in vacation rentals.
• Whether and how to regulate the number of guests in vacation rentals.
O Whether and how to regulate the parking at vacation rentals.
o Whether and how to limit or regulate the use of buses to pick-up and drop-
off vacation rental occupants.
• Whether and how to establish 24-hour code enforcement.
If the City Council adopts the Draft Ordinance and so directs, Staff would study
these issues as well as the efficacy of the Draft Ordinance and report back to the
City Council at its meeting on May 14, 2012.
ENVIRONMENTAL IMPACT:
There is no Environmental Impact related to this item.
LEGAL ANALYSIS:
The City Attorney has reviewed and approved as to form.
FINANCIAL IMPACT:
There is no Financial Impact at this time.
RECOMMENDATION:
After conducting a public hearing, introduce and adopt Interim Ordinance 1618-U
establishing interim regulations to supplement existing provisions of the
Municipal Code regarding short-term vacation rentals of residential units and
direct staff to schedule a public hearing on May 14, 2012 to consider extending
the interim regulations.
Page 4
ORDINANCE NUMBER 1618-U
AN INTERIM ORDINANCE OF THE CITY OF SEAL BEACH
IMPOSING NEW INTERIM REGULATIONS ON NEW AND
EXISTING VACATION RENTALS AND DECLARING THE
URGENCY THEREOF
THE CITY COUNCIL OF THE CITY OF SEAL BEACH HEREBY ORDAINS AS
FOLLOWS:
Section 1. Interim Regulations Established. Notwithstanding any other
ordinance or provision of the Municipal Code, no property shall be used as a
vacation rental while this Ordinance is effective except as permitted by the
interim regulations set forth in Section 6 of this Ordinance.
Section 2. Term. This Ordinance shall expire, and the interim
regulations established hereby shall terminate 45 days after the date of its
adoption unless extended by the City Council at a regularly noticed public
hearing pursuant to California Government Code Section 65858.
Section 3. CEQA Finding. The City Council hereby finds that it can be
seen with certainty that there is no possibility the adoption of this Ordinance, and
establishment of the interim regulations hereby, will have a significant effect on
the environment, because the moratorium imposes greater limitations on
vacation rentals in the City than the limitations currently required under the
Municipal Code, and will thereby serve to reduce potential significant adverse
environmental impacts. It is therefore exempt from California Environmental
Quality Act review pursuant to Title 14, Section 15061(b)(3) of the California
Code of Regulations.
Section 4. Penalty. Violation of any provision of this Ordinance shall
constitute a misdemeanor and shall be punishable by a fine not to exceed$1,000
or by imprisonment for a period not to exceed 6 months, or by both such fine and
imprisonment. Each and every day such a violation exists shall constitute a
separate and distinct violation of this Ordinance. In addition to the foregoing, any
violation of this Ordinance shall constitute a public nuisance and shall be subject
to abatement as provided by all applicable provisions of law.
Section 5. Legislative Findings. On April 9, 2012, the City Council
considered the adoption of this Ordinance at a duly noticed public meeting and
on the basis of the record thereof finds the following facts to be true.
a. The City's location and proximity to the coast makes it a
popular destination for tourists, many of whom choose to stay in residential units
such as, but not limited to, single-family and multiple-family dwelling units,
apartment houses, condominiums, cooperative apartments, triplexes, and
duplexes on a fewer than 30 days basis as vacation rental units.
b. Based on experience in the City and in other jurisdictions, it
is known that short-term vacation rentals have the potential to create negative
land use impacts for neighboring residential uses. These include but are not
limited to noise disturbances due to late night arrivals and parties with numerous
guests and amplified music, insufficient parking, and unsanitary and unsightly
trash accumulation. These problems are exacerbated when multiple units on the
same property are rented on a short-term basis at the same time and/or to large
groups. Moreover, because short-term occupants do not stay in the residence
for longer periods, they and their guests have less personal incentive to
moderate their behavior to avoid negatively impacting neighboring residents.
c. The City Council previously enacted Section 11.4.05.135 of
the Municipal Code, which requires vacation rentals to obtain a conditional use
Ordinance Number 1618-U
permit ("CUP") and meet certain minimum operational standards.
Notwithstanding enactment of Section 11.4.05.135, some vacation rentals in the
City have continued to negatively impact neighboring residents.
d. The City intends to study, within a reasonable time, the
adequacy of its existing ordinances regulating vacation rentals. The Planning
Commission, the City Council and the people of Seal Beach require a
reasonable, limited, yet sufficient period of time to consider and study legally
appropriate and reasonable policies regulating vacation rentals in order to
prevent negative impacts on neighboring residents. Given the time required to
undertake the study and planning this situation calls for, the City Council finds
that it is necessary to enact interim regulations to ensure that operation of
vacation rentals that may be in conflict with the contemplated new development
policies are not permitted in the interim. The City Council has the authority to
adopt an interim ordinance pursuant to the City Charter and Government Code
Section 65858 in order to protect the public health, safety, or welfare.
e. Accordingly, the City Council finds that there is a current and
immediate threat to the public health, safety and welfare presented by operation
of vacation rentals not in conformance with the interim regulations set forth below
in Section 6. The summer rental season is rapidly approaching and the
operation of vacation rentals pursuant to the City's existing regulations will result
in that threat to the public welfare unless the interim regulations are immediately
effective. Due to the foregoing circumstances, it is necessary for the
preservation of the public health, safety and welfare for this Ordinance to take
effect immediately. This Ordinance is an urgency ordinance for the immediate
preservation of the public peace, health, and safety within the meaning of
Government Code Section 36937(b) and therefore shall be passed immediately
upon its introduction and shall become effective immediately upon its adoption.
f. All legal prerequisites to the adoption of this Ordinance have
occurred.
Section 6. Interim Regulations. Notwithstanding any other ordinance or
provision of the Municipal Code of the City of Seal Beach, vacation rentals must
comply with the following interim regulations.
a. Permit and Operational Requirements. The approval and
operation of a vacation rental shall be subject to the following requirements:
i. Conditional Use Permit Required. The establishment
and operation of a vacation rental in the RLD-9 and RHD-20 Districts shall
require the approval of a Conditional Use Permit in compliance with Chapter
11.5.20 of the Municipal Code.
ii. Maximum Number of Units. No more than 2 vacation
rental units shall be allowed on any single parcel. In the event that 2 vacation
rental units are located on a parcel containing more than 2 dwelling units, at least
one of the non-vacation rental units must be occupied by either the property
owner or a property manager responsible for compliance with the operational and
performance standards set forth in this Section.
iii. Business License Required. A Business License is
required
for the establishment and operation of a vacation rental.
iv. Transient Occupancy Tax. The Transient Occupancy
Tax Remittance form shall be completed, and the owner or manager shall pay
the Transient Occupancy Tax.
v. Maximum Length of Stay. Visitor occupancy shall be
limited to a maximum of 29 consecutive days.
Ordinance Number 1618-U
vi. Fire and Life Safety. Fire and life safety requirements
as required by the Fire Authority and the Building Department shall be
implemented. These requirements include, but are not limited to approved
smoke detectors in each lodging room, installation of an approved fire
extinguisher in the structure, and the inclusion of an evacuation plan posted in
each lodging room.
vii. Annual Inspection. Each vacation rental shall comply
with the annual fire and life safety certification procedures of the Orange County
Fire Authority.
viii. Secondary Use. A vacation rental in the Commercial
Zone shall be allowed only in conjunction with an approved commercial use.
ix. Check-in Time. First-day arrival at a vacation rental is
prohibited after 9:30 p.m. All lease or rental agreements must include this
prohibition.
x. Check-out Time. Vacation renters must vacate the
unit before noon on the final day of their tenancy.
xi. Renter Information and Acknowledgement. Prior to
occupancy of a short-term vacation rental unit, the owner shall: (i) obtain the
name, address, and a copy of a valid government identification of the primary
adult occupant of the short-term vacation rental; and (ii) require the primary adult
occupant to execute a formal acknowledgement that he or she is legally
responsible for compliance of all occupants of the short-term vacation rental or
their guests with all applicable laws, rules and regulations pertaining to the use
and occupancy of the short-term vacation rental. The acknowledgement must
include the text of Section 7.45.010 of the Municipal Code, which provides as
follows:
"Upon the initial response of the police department to any
disturbance involving loud, unnecessary and unusual noise, the
chief of police may, in lieu of or in addition to taking other action
authorized by law, give notice to the person or persons in actual or
apparent control of the activity creating the disturbance, or to the
person or persons in actual or apparent control of the property or
premises wherein the disturbance has occurred, or both, that
liability may be imposed upon the person or persons receiving such
notice for the costs to the city of any subsequent response by the
police department in connection with any continuation or
resumption of such disturbance. Such notification shall be in such
form as may be approved by the chief of police. The costs of any
subsequent response shall be assessed to the person or persons
receiving such notice and shall include all costs reasonably
incurred by the city in providing law enforcement services and
equipment at the scene of the disturbance, including the cost or
value of the time expended by police department personnel in
making any subsequent response. The method of computing such
costs shall be established by the chief of police and approved by
the city council. The finance department shall invoice such costs to
the person or persons liable therefor under this chapter, and such
costs shall constitute a debt to the city and be collectible by the city
in the same manner as in the case of an obligation under a
contract; provided, however, that in no event shall a person's
liability hereunder exceed $1,000 for any single subsequent
response."
This information and acknowledgment shall be maintained by the owner
for a period of three years and shall be readily available upon request of any
Ordinance Number 1618-U
police officer or employee of the city authorized to enforce this Ordinance or any
applicable law, rule or regulation pertaining to the use and occupancy of the
short-term vacation rental.
xii. Trash. Trash and refuse must not be left stored within
public view, except in proper containers for the purpose of collection by the City's
authorized waste hauler on scheduled trash collection days. The owner or
property manager must provide sufficient trash collection containers and service
to meet the demand of the occupants.
xiii. Lease Terms: Each new lease or rental agreement
for a short-term vacation rental must have a copy of these Permit and
Operational Requirements attached to it and must include the following terms,
notifications and disclosures, which shall also be posted in a conspicuous
location inside the unit:
1. The trash pick-up day and applicable rules and
regulations pertaining to leaving or storing trash or refuse on the exterior of the
property.
2. Notification that the occupant may be cited or
fined by the City for violation of any provision of the Municipal Code, including but
not limited to amplified sound, including radios, televisions and other electronic
devices, that creates a noise disturbance in violation of Chapter 7.45 of the Seal
Beach Municipal Code.
3. A recommendation that the occupant
participate voluntarily in neighborhood quiet hours by avoiding parties and loud
social events between the hours of 10:00 p.m. and 7:00 a.m.
4. The name of the owner or property manager
and a telephone number at which that party may be reached at all times.
xiv. Response to Complaints. The property owner or
manager must provide the City with a phone number at which he or she can be
contacted on a 24-hour basis regarding nuisance complaints arising at of from
the use of the property as a vacation rental. Upon receipt of a nuisance
complaint or upon notification that any occupant or guest of the short-term
vacation rental has created unreasonable noise or disturbances, engaged in
disorderly conduct, or committed violations of the Municipal Code or any state
law, the owner or property manager must respond within 45 minutes of receiving
such notification and must promptly take corrective action to immediately prevent
a recurrence of such conduct by those occupants or guests. Failure to timely
respond to calls or complaints as required or take timely corrective action
regarding the condition, operation, or conduct of occupants of the short-term
vacation rental shall be a violation of this Ordinance. Nothing in this Ordinance
shall be construed to require or authorize an owner or property manager to act as
a peace officer or to intervene in situations that pose a risk to personal safety.
The owner or property manager must maintain records of the name, violation,
date, and time of each complaint, disturbance, and response and corrective
action by owner. Such records must be maintained for at least three years.
xv. Additional Conditions. Additional conditions on the
use of any given short term vacation rental unit to ensure that any potential
secondary effects unique to the subject vacation rental unit are avoided or
adequately mitigated may be imposed pursuant to any CUP required by this
Ordinance.
b. Licensed Vacation Rentals. Any existing, licensed vacation
rentals shall be allowed to continue as a legal, nonconforming use provided it
complies with the requirements set forth in subsection a(ii) through subsection
a(xiv), above. For the purpose of this subsection, "licensed" shall mean a
Ordinance Number 1618-U
vacation rental which as of January 1, 2010, had and has continuously had a
valid business license and has registered to pay the Transient Occupancy Tax
pursuant to Title 4: Revenue and Finance, Chapter 4.35: Transient Occupancy
Tax of the Municipal Code.
Section 7. Abatement and Amortization — Vacation Rental Units in
Excess of Numerical Limit. Upon the effective date of this Ordinance, no
property may have more than 2 vacation rental units. Notwithstanding the
preceding sentence, if the owner supplies to the City proof of a rental agreement
fully executed as of April 9, 2012 for use of a vacation rental unit after the
effective date of this Ordinance, that unit may continue to be used as a vacation
rental unit until termination of the previously existing agreement. Such proof
must be supplied to the City no later than April 16, 2012. In no event shall a
nonconforming vacation rental continue operating after September 1, 2012. The
owner of the property may request an extension from the City Council of the
abatement period in order to amortize the property owner's investment. Such
request must be made in writing setting forth the length of the requested
extension of the abatement period and any and all supporting evidence. The
owner shall bear the burden of proof. The City Council shall consider the request
at a public hearing and may consider the following: (i) the length of the
abatement period in relation to the owner's investment in the use of the property
as a vacation rental; (ii) the length of time the vacation rental was operating prior
to the date of nonconformity; and (iii) the potential harm to the public if the use
remains beyond the abatement period. The decision of the City Council shall be
final.
Section 8. Severability. If any section, subsection, subdivision,
paragraph, sentence, clause or phrase of this ordinance or any part thereof is for
any reason held to be invalid, such invalidity shall not affect the validity of the
remaining portions of this ordinance or any part hereof. The City Council of the
City of Seal Beach hereby declares that it would have passed each section,
subsection, subdivision, paragraph, sentence, clause or phrase hereof,
irrespective of the fact that any one or more sections, subsections, subdivisions,
paragraphs, sentences, clauses or phrases be declared invalid.
Section 9. The City Clerk shall certify to the passage and adoption of
this Ordinance and shall cause the same or a summary thereof to be published
and posted in the manner required by law.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Seal
Beach at a meeting thereof held on the 9th day of Aoril , 2012.
Mayor
ATTEST: APPROVED AS TO FORM
City Clerk Quinn M. Barrow, City Attorney
STATE OF CALIFORNIA }
Ordinance Number 1618-U
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Linda Devine, City Clerk of the City of Seal Beach, California, do hereby certify
that the foregoing ordinance is an original copy of Urgency Ordinance Number
1597-U on file in the office of the City Clerk, passed, approved and adopted by the
City Council of the City of Seal Beach, pursuant to the City Charter and
Government Code§ 36967(b), at a meeting held on the 9th day of April , 2012
by the following vote:
AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members
and do hereby further certify that Urgency Ordinance Number 1618-U has been
published pursuant to the Seal Beach City Charter and Resolution Number 2836.
City Clerk