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HomeMy WebLinkAboutCC AG PKT 2012-05-14 #M F SEAL'e\ AGENDA STAFF REPORT ti \cgL1FORot DATE: May 14, 2012 TO: Honorable Mayor and Members of the City Council THRU: Jill R. Ingram, City Manager FROM: Greg Hastings, Interim Director of Community Development SUBJECT: PROPOSED URGENCY ORDINANCE EXTENDING AND AMENDING INTERIM REGULATIONS REGARDING SHORT-TERM VACATION RENTALS OF RESIDENTIAL UNITS SUMMARY OF REQUEST: On April 9, 2012, the City Council adopted Interim Ordinance No. 1618-U establishing interim regulations to supplement existing provisions of the Municipal Code regarding short term vacation rentals of residential units. The current request is to adopt draft Interim Ordinance No. 1619-U, which would extend the previously adopted interim regulations for 10 months and 15 days and amend the regulations to allow vacation rentals only in Old Town and only if the owner obtains a conditional use permit. BACKGROUND AND ANALYSIS: A. The need for interim regulations The interim regulations are intended to address land use compatibility impacts created by short-term vacation rentals (i.e., less than 30 days). Based on experience in the City and in other jurisdictions, it is known that 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 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 rental property owners to obtain a conditional use permit ("CUP") and meet certain minimum operational standards designed to eliminate or limit negative impacts created by vacation Agenda Item M 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. Notwithstanding enactment of Section 11.4.05.135, some vacation rentals in the City have continued to negatively impact neighboring residential uses. City staff therefore proposed that the City adopt interim regulations to supplement the existing provisions of Section 11.4.05.135 of the Municipal Code. Because the summer rental season is rapidly approaching, staff proposed that the City Council adopt the interim regulations on an urgency basis so that they can go into effect immediately. Council enacted such interim regulations by adoption of Interim Ordinance No. 1618-U on April 9, 2012. B. Extension of the interim regulations Pursuant to Government Code Section 65858(a), Interim Ordinance No. 1618-U will expire 45 days after its adoption unless extended by the City Council. Interim regulations may be extended for an initial period of 10 months and 15 days, and thereafter for an additional one-year period. Staff has prepared a draft Interim Ordinance No. 1619-U, which would extend the interim regulations for 10 months and 15 days, and amend those regulations as discussed below. The draft ordinance is included as Attachment A to this report. Government Code Section 65858(d) requires that 10 days prior to the expiration or extension of any interim ordinance, the City Council must issue a written report regarding the measures the City has taken to alleviate the condition that led to the adoption of the interim ordinance. Staff therefore recommends that it also adopt as its required written report the statement included as Attachment B to this report. C. Interim Ordinance No. 1619-U As mentioned above, Interim Ordinance No. 1619-U makes only two substantive changes to the previously enacted interim vacation rental regulations. First, vacation rentals would only be allowed in Old Town. Second, instead of requiring a CUP only for parcels having more than 2 vacation rental units, all vacation rental property owners would now be required to obtain a CUP. As drafted, the owners for all vacation rentals, including existing vacation rentals and proposed vacation rentals, would have to file an application for a CUP by June 1, 2012. See further discussion in Section E below. The regulations in Interim Ordinance No. 1619-U are otherwise substantially the same as the regulations enacted by Interim Ordinance No. 1618-U. The proposed ordinance includes the following additional regulations: • A requirement that all vacation rentals obtain a business license; Page 2 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; • Compliance with all Fire Authority and Building Division fire and life safety requirements; • An annual fire and life safety inspection by the Orange County Fire Authority; • A requirement that vacation rentals in the Commercial Zones only be allowed as an accessory use to an approved commercial use; o 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; G 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; and • 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. D. Proposed CUP Conditions Along with recommending that all vacation rental property owners be required to obtain a CUP, staff also recommends that the following conditions be imposed upon the approval of a CUP: • Occupancy limits; • Limits on the number of guests (visitors); • Off-street parking requirements; • Regulations on the use of buses to pick-up and drop-off vacation rental occupants; and • On-site property manager for sites with more than 2 vacation rentals. These conditions would be applied on a case-by-case basis to address site- specific concerns. E. Treatment of Existing Uses As noted above, Interim Ordinance Number 1618-U imposed new regulations on existing vacation rentals, but did not impose a CUP requirement on all existing rentals unless the sites contained more than 2 units rented on a short term basis. The proposed Interim Ordinance requires all existing vacation rental property owners to apply for a CUP by June 1, 2012. Section 8 of the Ordinance allows a property owner to seek an extension or other relief from the Ordinance. Page 3 ENVIRONMENTAL IMPACT: Pursuant to California Code of Regulations Title 14, Section 15061(b)(3), the proposed ordinance is exempt from California Environmental Quality Act review because there is no possibility the adoption of the proposed ordinance, and establishment of the interim regulations thereby, will have a significant effect on the environment. The ordinance 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. LEGAL ANALYSIS: The City Attorney has reviewed the ordinance and approved it as to form. FINANCIAL IMPACT: The proposed ordinance does not create any negative financial impact, and adoption of the regulations may reduce long-term city enforcement expenditures. RECOMMENDATION: After conducting a public hearing, issue the written report found in Attachment B, and adopt Interim Ordinance 1619-U extending and amending interim regulations to supplement existing provisions of the Municipal Code regarding short-term vacation rentals of residential units. SUBMITTED BY: NOTED AND APPROVED: Aler„,40 e: t Greg A. Hastings, Inte im J . Ingram, City nager Director of Community Development Attachment: A. Ordinance No. 1619-U B. Government Code Section 65858(b) Page 4 Attachment A Interim Ordinance No. 1619-U AN INTERIM ORDINANCE OF THE CITY OF SEAL BEACH EXTENDING AND AMENDING ORDINANCE NUMBER 1618 IMPOSING INTERIM REGULATIONS ON NEW AND EXISTING SHORT-TERM VACATION RENTALS AND DECLARING THE URGENCY THEREOF ORDINANCE NUMBER 1619-U AN INTERIM ORDINANCE OF THE CITY OF SEAL BEACH EXTENDING AND AMENDING ORDINANCE NUMBER 1618 IMPOSING INTERIM REGULATIONS ON NEW AND EXISTING SHORT-TERM VACATION RENTALS AND DECLARING THE URGENCY THEREOF THE CITY COUNCIL OF THE CITY OF SEAL BEACH HEREBY ORDAINS AS FOLLOWS: Section 1. Ordinance Number 1618-U. On April 9, 2012, the Seal Beach City Council adopted Ordinance Number 1618-U, imposing new interim regulations on new and existing vacation rentals. This Ordinance extends and amends the interim regulations for new and existing vacation rentals established by Ordinance Number 1618-U. Section 2. Interim Regulations. 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 7 of this Ordinance. Section 3. Term. This Ordinance shall expire, and the interim regulations established hereby shall terminate 10 months and 15 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 4. 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 thereby, will have a significant effect on the environment. The ordinance 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 5. 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. It shall be a violation of this Ordinance for a property owner to permit or fail to correct within 3 days of receiving notice: (i) any violation by a vacation renter of this Ordinance or Chapter 7.15 of the Municipal Code (Noise)or(ii) any public nuisance created by a vacation renter in violation of Chapter 7.35 of the Municipal Code. Section 6. Legislative Findings. On May 12, 2012, the City Council considered the adoption of this Ordinance at a duly noticed public hearing 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 Ordinance Number 1619-U 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 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. After the adoption of Ordinance Number 1618-U, the City Community Development Department began to study 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 7. 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 7. 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. Conditional Use Permit Required. No vacation rentals shall operate or be established unless the property owner obtains a conditional use permit ("CUP") in compliance with Chapter 11.5.20 of the Municipal Code. To mitigate the impacts of such rentals on the surrounding neighborhood and City infrastructure and services, the City may impose reasonable conditions of approval including but not limited to maximum occupancy levels, maximum visitor levels, off-street parking requirements, traffic mitigation measures and on-site managing requirements. b. Limited to Old Town. Vacation rentals are conditionally permitted only in Old Town (Planning Area 1 excepting Surfside). Vacation rentals are prohibited in all other Planning Areas, including but not limited to the areas commonly referred to as the Hill, Leisure World, College Park East, and College Park West. Ordinance Number 1619-U c. Business License Required. The property owner must obtain a business license prior to operating or establishing a vacation rental. d. Transient Occupancy Tax. The property owner must complete the Transient Occupancy Tax Remittance form prior to operating or establishing a vacation rental and shall pay the Transient Occupancy Tax in accordance with the Seal Beach Municipal Code. e. Maximum Length of Stay. Visitor occupancy shall be limited to a maximum of 29 consecutive days. f. Fire and Life Safety. The property owner shall implement and conform to fire and life safety requirements required by the Orange County Fire Authority and the City's Building Division. 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. g. Annual Inspection. The property owner shall comply with the annual fire and life safety certification procedures of the Orange County Fire Authority. h. Secondary Use. A vacation rental in commercial zones shall be conditionally allowed only in conjunction with an approved commercial use. i. 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. j. Check-out Time. Vacation renters must vacate the unit before noon on the final day of their tenancy. k. 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 with all applicable laws, rules and regulations pertaining to the use and occupancy of the short-term vacation rental by all occupants of the short-term vacation rental or their guests. 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 Ordinance Number 1619-U 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 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. I. 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. m. 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: i. The trash pick-up day and applicable rules and regulations pertaining to leaving or storing trash or refuse on the exterior of the property. ii. 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. iii. 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. iv. The name of the owner or property manager and a telephone number at which that party may be reached at all times. n. 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. Ordinance Number 1619-U o. 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. Section 8. Abatement and Amortization: Licensed Vacation Rentals. a. In order to continue renting any unit as a vacation rental, the property owner of any existing, licensed vacation rentals shall file an application for a conditional use permit on or before June 1, 2012. For the purpose of this ordinance, "licensed" shall mean a vacation rental as to which as of January 1, 2010, the property owner had and, thereafter, has continuously maintained a valid business license, and has registered to pay the Transient Occupancy Tax, and has paid such tax in full compliance with the Title 4: Revenue and Finance, Chapter 4.35: Transient Occupancy Tax of the Municipal Code. b. Interim Ordinance Number 1618-U provided an opportunity for each property owner of an existing, licensed vacation rental to continue renting vacation rentals if he or she supplied to the City proof of a rental agreement for use of a vacation rental unit after the effective date of that Ordinance, subject to certain provisions contained therein. The City did not receive any such proof either within the prescribed time, or as of May 3, 2012. c. On or before June 1, 2012, any property owner may request from the City Council an exemption from, or extension of the terms and provisions of this ordinance, in order to amortize the property owner's investment. Such request must be made in writing setting forth the reasons for the request, a proposed abatement period after which the owner either ceases renting any unit for use of a vacation rental unit or obtains a CUP to permit such use, 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 proposed 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 unit or units are rented on a short term basis after June 1, 2012. The decision of the City Council shall be final. Section 9. 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 10. 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. (Intentionally Left Blank) Ordinance Number 1619-U PASSED, APPROVED AND ADOPTED by the City Council of the City of Seal Beach at a meeting thereof held on the 14th_day of May 2012. Mayor ATTEST: APPROVED AS TO FORM City Clerk Quinn M. Barrow, City Attorney STATE OF CALIFORNIA } 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 1619-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 14th day of May , 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 1619-U has been published pursuant to the Seal Beach City Charter and Resolution Number 2836. City Clerk Attachment B Government Code Section 65858(d) Written Report: Government Code Section 65858(d) requires that 10 days prior to the expiration or extension of any interim ordinance, the City Council must issue a written report regarding the measures the City has taken to alleviate the condition that led to the adoption of the interim ordinance. In compliance with Government Code Section 65858(d), the City Council hereby issues this report. The City has taken the following measures to alleviate the condition that led to the adoption of the interim ordinance. In order to address the negative land use compatibility problems caused by vacation rentals in residential areas, the City has enacted the interim regulations found in Interim Ordinance No. 1618-U and is engaged in outreach efforts to homeowners to educate them about the City's new regulations and what they can do to prevent vacation rentals from negatively affecting their neighbors. City staff also continues to research how other jurisdictions regulate vacation rentals and whether and how to establish 24-hour code enforcement. Staff will also continue to monitor vacation rentals and solicit feedback from the community. The City will schedule public hearings before the Planning Commission and City Council to consider amending the City's zoning ordinance to enact permanent regulations to alleviate the condition that led to the adoption of the interim ordinance.