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HomeMy WebLinkAboutCC AG PKT 2012-09-10 #GF.SEA(.e� AGENDA STAFF REPORT - -; DATE: September 10, 2012 ,�cq�!FORNSf'` TO: Honorable Mayor and Members of the City Council THRU: Jill R. Ingram, City Manager FROM: Greg Hastings, Interim Director of Community Development SUBJECT: REQUEST FOR AN EXEMPTION FROM CONDITIONAL USE PERMIT REQUIREMENT FOR THE EXISTING SHORT -TERM VACATION RENTAL UNIT AT 1208 OCEAN AVENUE (OWNER: KELLY GENE BRUCE) SUMMARY OF REQUEST Hold a public hearing regarding the request for an exemption to the City's Conditional Use Permit (CUP) requirement for the existing short term vacation rental unit located at 1208 Ocean Ave. owned by Kelly Gene Bruce ( "Owner"). Upon the close of the public hearing, staff recommends that the Council deny the request for an exemption, and extend the time within which the Owner may apply for a CUP from July 6, 2012 to October 10, 2012. BACKGROUND On May 14, 2012, the City Council adopted Interim Ordinance No. 1619 -U (the "Ordinance "), which extended and amended previously adopted interim regulations regarding short term vacation rentals. The Ordinance amended the interim regulations by limiting vacation rentals to Old Town and requiring all property owners wanting to rent property on a short-term basis, including those currently renting their property on a short-term basis, to obtain a CUP. The Ordinance gave the owners of the existing vacation rentals until July 6, 2012 to apply for a CUP. The City has received CUP applications from 11 of these owners, and already approved a CUP for the one located at 112 8th Street. To date, no application has been denied. The Ordinance also gave the owners of the previously operating non - conforming vacation rentals the option of requesting "an exemption from, or extension of the terms and provisions of this ordinance, in order to amortize the property owner's investment." By letter dated June 20, 2012, the Owner has applied for an exemption. The letter is attached as Attachment B. Agenda Item G DISCUSSION Police Power of Zoning It is well established that cities have the police power to regulate the use of land. Cities may adopt zoning regulations to allow land uses appropriate for a particular area and to prohibit land uses that are inappropriate for a certain area. Periodically, cities review their zoning laws to determine whether uses are compatible with other uses in the same zoning district. Prior to October 11, 2010, the City's Zoning Code did not list the business of short-term vacation rentals or short-term rentals as a permitted use for residentially -zoned property. Thus, under the Code, such uses were not permitted. Nevertheless, several property owners began to rent residential properties on a short-term basis. Further, without the knowledge of the City Council, City Manager, City Attorney or Community Development Department, the City's Finance Department issued business licenses for a number of such businesses without conferring with Community Development as to whether such business is a permitted use in residential zones. Such a business license, however, does not confer any land -use entitlement or provide any vested right to a particular use. During discussions in connection with the modernization of and amendments to the City's Zoning Code, it came to the City Council's attention that some property owners were renting residential properties on a short-term basis. The City Council decided to permit short-term vacation rentals (defined in the Code as rentals for the duration of less than 30 days) as a conditionally permitted use. Thus, upon the adoption of Title 11 in 2010, a property owner could apply for a conditional use permit ( "CUP ") to rent its residential units for terms less than 30 days. In addition, the City Council determined that property owners who had obtained a business license prior to January 1, 2010, and were paying the City's transient occupancy tax (TOT) for short -term rentals could continue to operate without a CUP. For the purposes of this staff report, such uses without a CUP will be referred to as "non- conforming uses." Earlier this year, the Council reexamined the issue of allowing such businesses in residential zones. Based upon the adverse negative impacts —e.g., noise, accumulation of trash, loitering, unsanitary conditions, overcrowding, demands on police services, traffic congestion, excessive demand on scarce parking resources, etc. —on neighboring properties associated with short-term rentals, the Council adopted Ordinance Nos. 1618 -U (effective for 45 days) and 1619 -U (the "Ordinance "), which modified Ordinance No. 1618 -U and extended the term of the interim regulations for 10 months and 15 days. The City intends to schedule a public hearing before the Planning Commission in September to consider permanent regulations, and will schedule a subsequent Council public hearing to consider the Planning Commission's recommendation shortly thereafter. Page 2 The interim ordinances imposed interim regulations upon short-term rentals to alleviate such adverse impacts during the pendency of studies addressing such uses. One of the requirements of the Ordinance is that all non - conforming uses apply for a CUP by July 6, 2012 so that the City can conduct a public hearing and receive testimony and other evidence to determine whether the non - conforming use is compatible with surrounding uses. The Ordinance also allows property owners of non - conforming uses to apply for an exemption from the terms of the Ordinance or extension of the July 6, 2012 application deadline. The Owner has filed a request for an exemption. In general, the purpose of providing an opportunity for a property owner to request an exemption from the provisions of an ordinance which may result in terminating an existing use is to provide a reasonable amortization period within which the owner can recoup the economic investment spent in establishing the use. Cities have established a broad range of amortization periods depending on the evidence presented by the property owner. In some instances, cities will grant an exemption where the owner has presented compelling evidence showing hardship or substantial expenditures in reliance upon existing zoning. Consider the following example: a property owner purchases a property zoned for industrial use and, in reliance upon that zoning, constructs a multi - million dollar waste recycling facility. Thereafter, the city subsequently rezones the property for residential use. In such case, the amortization period to recoup the investment could be as long as 20 -60 years before the owner would be required to discontinue the use and demolish the structure. Thus, due to the compelling evidence presented by the owner, a city may decide to exempt that property from the requirements of the Ordinance, rather than establish a lengthy amortization period. For other uses, the amortization period to recoup an economic investment is much shorter. For example, many cities have successfully eliminated non- conforming billboards by imposing a ban on such signs in conjunction with an amortization period between 1 to 3 years. In such case, the cities would not exempt the billboards from the terms of the ordinance prohibiting the use, but would, in essence, extend the time within which the property owner would have to recoup its investment prior to discontinuing the use. What constitutes a reasonable amortization period must be determined on a case -by -case basis. One important consideration is whether the case concerns a non - conforming structure or a non - conforming use. Courts have generally approved of longer amortization periods for non - conforming structures to allow property owners to recover the economic investment in building the structure. Termination of a non - conforming use that results in minimal economic hardship can therefore be amortized more quickly. Another consideration is the amount of an owner's investment in the property for the purpose of the non - conforming use. If there has been a large investment that would be lost if the use were eliminated, the amortization period must be long Page 3 enough for the owner to obtain a reasonable return on the investment. For instance, consider the following: a person pays a premium price for an existing, legally permitted restaurant that has a full liquor license. The purchase price far exceeds the price for an equivalent restaurant without a liquor license. ABC transfers the existing liquor license to the new owner, and the city issues an occupancy permit to the new owner: The new owner subsequently applies and obtains a discretionary land use entitlement and building permit to expand the bar area. In reliance upon the building permit, the owner expands the bar area, and purchases state of the art liquor dispensers. The city subsequently prohibits the sale of alcohol in the zoning district where the restaurant is located. In such case, the city must provide an adequate amortization period for the owner to recoup the substantial investment incurred in reliance upon the existing zoning at the time of purchase and the validly issued land use entitlements. Conversely, investments or property improvements that are not related to the non - conforming use or that would not be impacted by terminating the non- conforming use do not necessarily require an exemption or any lengthening of the amortization period. For instance, at the time of the remodeling of the restaurant in the above - described example, the owner installs new booths in the dining area. Such new booths can be fully utilized by patrons purchasing food and soft drinks, and thus would not be rendered useless by the prohibition on the sale and service of alcohol. Finally, there may be some established uses that are subsequently prohibited that may not require any amortization period because the property owner can still use the property for the use for which it was built. For instance, a person purchases a restaurant in a city that does not allow amplified music at restaurants. Subsequent to the purchase, a city decides to allow amplified music at restaurants. The restaurant owner hires a rock band to play at the restaurant. Based upon complaints from adjacent property owners, the city repeals the live entertainment ordinance. In that the property owner may still use his property for the permitted use at the time of his purchase, no amortization period to phase out dancing is required. Due to the unique nature of using property improved for residential use for a commercial use with frequent turnover, it may be difficult for -an owner to establish that a property is entitled to an exemption from the CUP requirement. For many reasons, the traditional grounds for exempting a property from land use regulations simply do not apply to renting units on a short-term basis, including the following: • The Ordinance merely requires the property owner to apply for and receive a CUP for the ability to rent the property out for periods shorter than 30 days • If the City makes the necessary findings and issues the CUP, the short- term rental use of the property runs with the land Page 4 If the City is unable to make the necessary findings (e.g., that the proposed use of the property is not compatible with surrounding uses) to grant the CUP, the property owner can still use the property as a residence or as rental property, consistent with the zoning of the property O Unlike the above examples, Ordinance 1619 -U will not require the removal of any structures under any circumstances; if a property owner does not obtain a CUP to use the property as a short-term rental, the property owner will still be able to use the existing structure for the use for which it was built: residential use If a property owner does not obtain a CUP to use the property as a short- term rental, the property owner will still be able to rent the property for periods 30 days or longer. The Ordinance provides that the Council may consider the following in making its determination as to a request for an exemption or extension: (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 July 6, 2012. Request For An Exemption The Owner's request for an exemption is contained in the June 20, 2012 letter (attached as Attachment B) addressed to the City Council. Pursuant to the Ordinance, the Owner bears the burden of proof in attempting to establish a basis for its request. For the following reasons, the Owner has not met such burden because the information provided does not support the granting of the exemption. The Owner represents- that she and her husband bought the property in 1999 and have rented the unit above the garage as a vacation rental since 2009. (The Owner lives in the main unit on the front of the property). However, short-term vacation rentals were not a permitted use in 2009. Owner has provided no information that the unit was built as a short-term vacation rental business, or in reliance upon any zoning that permitted rental of the unit for periods less than 30 days. According to City records, the Owner has maintained a valid business license since March 9, 2010, but the existence of a business license is not a factor as to whether the Owner is entitled to an exemption from a land use regulation. Page 5 Nothing in the letter suggests that: • The unit cannot be used as a multi -unit residence ® The unit cannot be used as rental property o The Owner cannot recoup her investment in the property by renting the units for 30 days or longer. As noted above, issuance of a to a particular land use. Even i this situation (once again, it c support the conclusion that n( basis. Controlling case law on only where an owner incurs validly- issued land use entitlen vested right to complete a prof valid building permit or its ft performed substantial work reliance on the permit. Avco ( Com'n. 17 Cal.3d 785, 791, 79 business license does not confer any vested right the doctrine of vested rights somehow applied to Des not apply) the statements in Owner's letter rights vested to rent the units on a short term this subject establishes that vested rights accrue , ubstantial expenditures after it has received a lent. In California, an owner does not acquire a osed project unless (1) he or she has received a nctional equivalent and (2) the developer has rid incurred substantial liabilities in good faith ;ommunity Developers, Inc. v. South Coast Regl 3 (1976). In Avco, Oranqe Countv had rezoned a landowner's acreage for a planned community development, approved a final map and issued rough grading permits for a portion of the project. Avco Community Developers had prepared studies, graded the land, and completed storm drain, culvert, and street improvements, spending over $2 million on the development. Then the voter - approved Coastal Zone Conservation Act took effect, requiring any person developing in the coastal zone to obtain a permit from the Coastal Commission. Avco argued that it was exempt from the Act's permit requirement because it had a vested right to complete development. The California Supreme Court disagreed. It held that because Avco had not yet received a building permit or its functional equivalent, it had no vested right -- it could not develop without approval from the Coastal Commission. The Avco rule is still the law in California. In sum, the Owner has failed to meet its burden of proof to establish that the property should be exempted from the requirement to obtain a CUP to allow the renting of the property on a short-term basis. RECOMMENDATION: That the Council deny the request for an exemption, and extend the time within which the Owner may apply for a CUP from July 6, 2012 to October 10, 2012. Page 6 SUBMITTED BY: Greg A. astings, Interim Director of Community Development Attachment: A. Interim Ordinance No. 1619 -U NOTED AND APPROVED: Ingram, City Man�' B. Correspondence requesting an exemption from Interim Ordinance No. 1619 -U Page 7 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. Notifithstanding 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 and traffic mitigation measures. 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 properly 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 Lenqth 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 costs shall be established by the chief of police and approved by the city council. The finance department shall invoice such costs to i i i i Ordinance Number 1619 -U 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. - o. On -Site Property Owner or Property Manager Required for Vacation Rentals In Excess of 2 Units. A property owner or property manager shall reside on each site that contains more than 2 vacation rental units. Such Ordinance Number 1619 -U property owner or property manager shall be responsible for compliance with the operational and performance standards set forth in this Ordinance. p. 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 July 6, 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 July 6, 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 July 6, 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. 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. ATTEST: �� 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 Membersf0/4.,., ABSTAIN: Council Members , r�/�h, 4 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. ity &01'erk Attachment B Request for Exemption July 5, 2012 Fro ,,n the desk of ... Kelly Gene Bruce, owner of The Seal Beach Guest House business license #SBG0002 customer #0026849 1208 Ocean Avenue - Historic District of Old Town Seal Beach - California 90740 - (562)493.7593 July 5th 2012 Regarding: Ordinance 1619 -U Dear City Counsel, My husband and I have operated our vacation rental, the Seal Beach Guest House since we hosted our first guests July 4th 2009. We have renewed our business license #SBG0002 customer #0026849 every year and pay the 12% transiency tax quarterly. We each have been residents of Old Town Seal Beach since 1991. We are located at 1208 Ocean Avenue. This has been our permanent residence since purchased 13 years ago on August 15th 1999. Not only do we reside on the property, but 1, Kelly, work out of our home so I am always onsite and available to answer any questions. We have never had the police called to our residence and there has never been a problem with any of our neighbors. The maximum amount of people we allow is just 4. Check -in time is 3pm and we have recently added that no one may check -in after 9:30pm. Check-out time is 12 noon. Many of our neighbors love talking to our guests because they come from all over the World including but not limited to the United States, Canada and some all the way from Ireland, Scotland, England, France and Australia. Along with our neighbors, we enjoy when families return for another visit as we see how big their children have grown. The Seal Beach Guest House is a self - contained one - bedroom apartment that is located above our garage. We are proud to say that our location is very private, quiet and serene. We provide reserved off - street parking for our guests so we do not impact parking of our neighbors. Prior to guests' arrival, they sign a reservation form that binds them by the rules & regulations of the property which includes no candles and no smoking. We also send -an email with information about all the shops, restaurants & services that are available in Old Town. This generates excitement as guests plan their vacation highlighting the things that they do not want to miss and it brings extra revenue to the city. In the guest house, we provide a hard copy just in case our guests forget to bring their list. We are constantly replenishing the supply of take -out menus and shop brochures. We have negotiated with many owners of shops & restaurants to provide a discount to our guests which generated additional revenue for the city. We are also proud members of United in Uniform which offers special discounts to men & women of police, fire and military and their families. I personally meet each guest before giving them a tour and access to the property. They are greeted with a large basket of fruit and detailed instructions on safety, evacuation plans, location of the fire extinguisher and proper garbage disposal. We also review the rules and regulations of the City of Seal Beach regarding parking, noise level and proper beach behavior. We have a guest book located in our guest house which encourages guests to tell others what they liked best about Seal Beach. After departure, we send a questionnaire with the return of their security deposit to find out if there is anything that we need to improve. We have provided a sample of them that absolutely confirms that our guests love our "Mayberry by the Sea ". A signed hard copy of this correspondence along with the sample of questionnaires will be delivered to City Hall tomorrow July 6th 2012. So, for the reasons stated above, according to ordinance 1619 -U Section 8 paragraph C, we would like to be exempt. Thank you, Kelly Bruce (Peck) owner & operator and andall Peck 5"