HomeMy WebLinkAboutPC Res 22-19 - 2022-11-07V *I@] Itub 1 [01
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WHEREAS, Seal Beach Municipal Code Section 11.4,05.135 (Short -Term Rental
of Residentially Zoned Property) sets forth a prohibition of short-term rentals; and
WHEREAS, based on recent California Appellate Court cases Kracke v. City of
Santa Barbara (2021) and Keen v. City of Manhattan Beach (2022), staff has identified
the need to amend Seal Beach Municipal ••- •' 11.4.05.135; and
WHEREAS, the Planning Commission has authority pursuant to Section
11.5.05.010.B of the Municipal Code to make a written recommendation to the City
Council to aAecrove, aAj�.crove with modific ni
code;and
WHEREAS, the City has reviewed the proposed Zone Text Amendment for
compliance with the California Environmental Quality Act (CEQA) and finds and
determines that the adoption of Ordinance 22 -XX (Zoning Text Amendment 22-3) is not
subject to CEQA pursuant to CEQA Guidelines Section 15060(c)(2) and Section 15301,
may have a significant effect • the environment, and
WHEREAS, the Community Development Department on October 27, 2022,
caused to be published a legal notice in the Sun Newspaper, a local paper of general
circulation, a hearing notice indicating the date, time, and location of the public hearing
on the proposed Zone Text Amendment; and
WHEREAS, on November 7, 2022, the Planning Commission -l• a • noticed
meetin where interested -tersons had an ••.. otes
to, the project and at which time the Planning Commission considered Zone Text
Amendment
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The amendment, therefore, is exempt from the requirements of CEQA and the State
CEQA Guidelines under Guidelines Section 15061(b)(3) and Section 15301, because it
can be seen with certainty that there is no possibility that the activity in question may have
a significant effect on the environment.
Section 2. Required findings for Zone Text Amendment 22-3. The California
Government Code and Section 11.5.15.025 (Required Findings) of the Municipal Code
require that Zone Text Amendments meet certain findings prior to recommendation of
approval by the Planning Commission and approval by the City Council. The Planning
Commission hereby makes the following findings, as supported by substantial evidence
on the record including and incorporating all facts and evidence in the staff report and its
attendant attachments, in support of the recommendation for approval of Zone Text
Amendment 22-3:
Finding 1. The proposed amendment is consistent with the goals and policies of
the General Plan. The General Plan seeks to support, encourage, and balance
commercial and residential development, which may be done by allowing limited
overnight uses in various neighborhoods while integrating the use into the existing
environment and infrastructure. Further, the General Plan states it is intended to
provide maximum benefits to residents and visitors near the waterfront, which will
be facilitated by allowing for short term accommodations for visitors in the Coastal
Zone.
Finding 2, The proposed amendment would not be detrimental to the public
interest, health, safety, convenience, or welfare due to regulations set forth that
preserve residential character and establish operating standards to reduce
potential noise, parking, property maintenance, and safety impacts on adjacent
neighbors.
Section 3. On November 7, 2022, the Planning Commission held a duly noticed public
hearing to consider Zone Text Amendment 22-3, which would amend Title 11 Section
11.4.05.135 (Short -Term Rental of Residentially Zoned Property) of the Seal Beach
Municipal Code regarding short-term rentals in residential districts and definitions as set
forth in the draft ordinance included as Attachment "A".
Section 4. Based on the findings contained in Sections 1 to 3 of this Resolution, and all
other evidence in the record, the Planning Commission hereby recommends that the City
Council approve Zone Text Amendment 22-3 inclusive of recommended changes to (a)
reduce the maximum number of short-term rentals, and (b) add an initial 18 -month
program review and annual review thereafter by the City Council.
PASSED, APPROVED AND ADOPTED by the Seal Beach Planning Commission at a
meeting thereof held on November 7, 2022 by the following vote:
AYES: Commissioners ITTIILLER, MASETTI, THOMAS, KLINGER
ABSENT: Commissioners CAMPBELL
ATT E .
Alexa Smittle
Planning Commission Secretary
ATTACHMENT A
AN ORDINANCE OF THE CITY OF SEAL BEACH AMENDING THE SEAL
BEACH MUNICIPAL CODE AMENDING SECTION 11.4.05.135 (SHORT-
TERM RENTAL OF RESIDENTIALLY ZONED PROPERTY) TO PERMIT
AND REGULATE SHORT-TERM RENTALS IN RESIDENTIAL ZONES IN
THE CITY AND FINDING THE ORDINANCE TO BE EXEMPT FROM
REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES ORDAIN AS FOLLOWS:
Section 1. Section 11.4.05.135 of the Seal Beach Municipal Code is hereby
amended in its entirety to read as follows:
11.4.05.135 Short -Term Rental of Residentially Zoned Property.
A. Purpose. The purpose of this Chapter is to establish regulations, standards, and
a permitting process governing the renting or leasing of privately owned visitor -serving
residential dwelling units on a short-term basis in order to maintain the long-term rental
housing stock in the City; comply with the Coastal Act; ensure the collection and
payment of Transient Occupancy Taxes ("TOT"); safeguard the residents of the City of
Seal Beach by ensuring that Short -Term Rental activities do not threaten the character
of residential neighborhoods; and ensure that such Short -Term Rental activities do not
become a nuisance, or threaten the public health, safety, or welfare of neighboring
properties.
B. Definitions.
The following definitions shall apply to this Section:
"Booking Transaction" means any reservation and/or payment service provided
by a person or entity who facilitates a Short -Term Rental transaction between a
prospective Guest and a Short -Term Rental Owner.
"Coastal Zone" shall have the same meaning as California Public Resources
Code (PRC) Section 30103(a), as may be amended from time to time.
"City" means City of Seal Beach.
"Director" means the Director of Community Development or their designee.
"Guest" means any person or persons renting a Short -Term Rental as a transient
occupant.
"Local Contact Person" means the Owner or person designated by the Owner to
respond to and take remedial action regarding Short -Term Rental issues or complaints.
"Owner" or "STR Owner"means a property owner who is contracting with Guests
for Short -Term Rental of any structure or portion of a structure for dwelling, lodging or
sleeping purposes, either directly or indirectly through a Hosting Platform such as
VBRO or AirBnB. "Owner" may be a person, group or entity.
"Platform Agreement" means a duly -executed agreement between a Hosting
Platform and the City, which, among other things, provides that the Hosting Platform will
collect from Short -Term Rental Tenants and pay the Transient Occupancy Tax to the
City on behalf of Shor n4-STR Owners, and will book only those STRs that
have a valid Short -Term Rental Permit.
"Primary Residence" means a person's permanent residence or usual place of
return for housing as documented by at least two (2) of the following current documents:
driver's license; voter registration; tax documents showing the residential unit as the
person's residence; or a utility bill.
"Prohibited Buildings List" means a list maintained by the City identifying the
address(es) of all buildings and/or properties whose owner(s), including any applicable
homeowners' association or board of directors, have notified the City, pursuant to City
procedures, that Short -Term Rentals are not permitted to operate anywhere in such
building or property including, without limitation, deed restricted affordable housing
units.
"Short -Term Rental" ("STR") means a single 'residential `dwelling unit, or portion
thereof, that is offered or provided to paying Guests by an Rtat-STR
Owner for twenty-nine (29) or fewer consecutive nights. The term "Short -Term Rental"
shall not include hotels, motels, inns, or bed and breakfast inns.
"Short -Term Rental Advertisement" means any method of soliciting Guests to
use a dwelling unit for Short -Term Rental purposes.
"Short -Term Rental Permit" or "Permit" means a Permit, with a Permit number,
issued by the City to allow Short -Term Rentals.
"Short -Term Rental Tenant" ("STR Tenant") means a person who has entered
into an agreement to compensate an Owner for the use and occupancy of a Short -Term
Rental, and who shall be responsible for compliance with the applicable terms of this
Chapter and the STR Permit.
"Transient Occupancy Tax" ("TOT") means local Transient Occupancy Tax as set
forth in Chapter 4.35 of the Seal Beach Municipal Code or any successor ordinance.
• M.
1. No person or entity shall advertise, rent to a Guest, or otherwise operate a
Short -Term Rental ("STR") in the City unless a Permit has been issued by the City
pursuant to this Chapter. The Owner of an STR shall apply to obtain a Permit from the
City and must remain in compliance with all requirements of this Chapter. The Director
will provide an application form for an STIR Permit which shall include all information
determined by the Director to be necessary to evaluate the eligibility of the Owner and
subject property, consistent with this Chapter.
2. STIR must be located within the Coastal Zone.
3. The total number of STIR Permits shall not exceed on' t-of4he-f-otal
hoL4-,,,tng--utijt-&witUiA-the-Goa-st-a)-Z-one-of-Sea4-BeacAtwentv-five (25).
4. STIR Permits shall be issued on a lottery basis to eligible applicants.
5. The STIR Permit required by this Chapter shall not apply to any "vacation
rental" in operation pursuant to a valid Conditional Use Permit ("CUP") issued by the
City under Ordinance No. 1619-U prior to October 1, 2022, as long as such CUP
remains valid and in effect. The STIR shall comply with the conditions of its CUP and the
operational requirements of this Chapter. If a CUP is terminated or revoked, the Owner
shall obtain aan STIR permit prior to re-establishing aan STIR on the same property.
6. The City Council shall establish a fee for aan STIR Permit by resolution
provided, however, the fee shall be no greater than necessary to defer the cost incurred
by the City in administering the provisions of this Chapter.
7. An STIR Permit is valid for one (1) year from the date of issuance. The
STIR Permit is personal and may not be transferred or assigned and does not run with
the land. An STIR Permit may be renewed annually by the Director if the STIR Owner: (1)
pays the renewal fee; (2) provides information concerning any changes to the previous
application for, or renewal of, the STIR Permit; (3) submits records to demonstrate
compliance with this Chapter as required by the Director; and (4) the STIR is otherwise
in compliance with the requirements of this Chapter.
8. The STIR Owner shall identify, to the satisfaction of the City, a Local
Contact Person, who shall be available twenty-four (24) hours per day, seven (7) days a
week for: (1) responding within one (1) hour to complaints regarding the condition,
operation, or conduct of the STIR or its occupants; and (2) taking any remedial action
necessary to resolve such complaints.
9. STIR Permits issued pursuant to this Chapter are subject to the following
standard STIR permit conditions, in addition to any other property -specific condition the
Director deems necessary in order to maintain neighborhood compatibility:
(a) The Owner shall, by written agreement with the STIR Tenant, limit
overnight occupancy of the STIR to a specific number of occupants. The maximum
number of Guests who may occupy the STIR at one time is two persons per bedroom,
plus two additional Guests (including children). Lofts that meet California Building Code
egress requirements are considered a bedroom for the purposes of the occupancy
calculation. In no event may the maximum occupancy exceed twelve (12) persons in
any STIR.
(b) Large-scale events (i.e., exceeding maximum allowed occupancy) such as
parties, weddings, fundraisers, and conferences, are prohibited.
(c) The Owner shall insure that the occupants and/or Guests of the STIR do
not create unreasonable noise or disturbances, engage in disorderly conduct, or violate
provisions any Federal, State, or Local law pertaining to noise, disposal of waste,
disorderly conduct, the consumption of alcohol, or the use of illegal drugs,
(d) The Owner shall, upon notification that occupants and/or Guests of his or
her STR have created unreasonable noise or disturbances, engaged in disorderly
conduct or committed violations of any Law, including those pertaining to noise,
disposal of waste, disorderly conduct, the consumption of alcohol or the use of illegal
drugs, promptly prevent a recurrence of such conduct by those occupants or Guests.
(e) The Owner of the STR unit shall post a copy of the STR Permit and the
STR Permit conditions in a conspicuous place within the STIR.
(f) Eligibility requirements. The Owner must satisfy the following
requirements at the time of submitting an STR Permit application:
(i) The dwelling unit shall not be a deed -restricted affordable housing
unit, in a group residence as defined by Section 11.6.05.010 of the Seal Beach
Municipal Code, or included on the Prohibited Buildings List.
(ii) An Owner shall not be granted a permit for more than one (1) STR
within the City of Seal Beach.
(iii) No more than one STR permit shall be issued per property except
in multi- family single lot subdivisions (i.e. condominiums or townhomes) the number of
STR Permits allowed shall be as follows:
Number of units per property Number of STIR
Permits
Up to 15 1
16 or more 4
(iv) The dwelling unit or property used as an STR shall not be the
subject of any active or pending code enforcement actions or violations pursuant to the
Seal Beach Municipal Code. A code enforcement notice of violation, if issued to an STR
must be addressed within fifteen (15) days, or the STIR Permit shall be revoked.
(v) If the dwelling unit or property used as an STIR is subject to the
rules of a homeowners' or condominium association, any Short -Term Rental activity
shall comply with those rules and this Chapter shall not be inferred to grant any
permission that invalidates or supersedes any applicable requirements of those
homeowners' or condominium associations.
(vi) The Owner shall provide proof that the STR is not prohibited by a
Homeowners' Association Conditions Covenants and Restrictions or any other
community standards/guidelines, applicable to the proposed STR. A letter from the
Homeowners' Association would satisfy this requirement.
(vii) The Owner shall sign an indemnification and hold harmless
agreement in a form approved by the City Attorney, agreeing to indemnify, save,
protect, hold harmless, and defend the City of Seal Beach, its officers, employees and
agents from any liability in any way arising out of the use of the STR including, without
limitation, from the STR Guests.
(viii) The Owner shall maintain in effect a policy or policies of liability
insurance for the property and the STR that meet or exceed the City's standard
insurance requirements for STRs, as published on the City's website. The Owner shall
provide a copy of the applicable certificates of insurance, naming the City, its officers
agents and employees, as additional named insured with the STR permit application
and each renewal application, and at other times within three (3) business of days
following request by a City representative.
(ix) The STIR shall be a legally permitted dwelling unit. Accessory
Dwelling Units, as defined in Section 11.4.05.115(6) of the Seal Beach Municipal Code
shall not be used as an STIR unless the unit was legally established prior to January 1,
2020.
(x) A Junior Accessory Dwelling Unit as defined in Section
11.4.05.115(6) shall not be advertised or used as an STR.
D. STR Regulations.
1. All marketing and advertising of an STR, including any listing on a Hosting
Platform, shall clearly list the City -issued STR Permit number.
2. STRs are prohibited in any part of the property not approved, permitted,
and constructed for residential use including, but not limited to, vehicle(s) parked on the
property, storage sheds, trailer(s), garage(s), boat(s) or similar watercraft, tree house(s),
or any temporary structure(s), including, but not limited to, tent(s).
3. Each STIR shall have a notice posted within the unit in a location clearly
marked and accessible to the Guest (e.g., posted on the refrigerator, included within a
binder with additional information on the unit, etc.), containing the following information:
(a) The maximum number of occupants permitted in the unit;
(b) Location of parking spaces;
(c) Name and contact information for the Owner and/or Local Contact Person;
(d) Trash and recycling pickup information;
(e) Emergency contact information for police, fire, or emergency medical
services;
(f) Evacuation plan for the unit showing emergency exit routes, exits, and fire
extinguisher locations; and
(g) Tsunami evacuation routes, if the STR is located in a tsunami zone.
4. No sign shall be posted on the exterior of the STR to advertise the
availability of the unit.
5. It is unlawful for any STR Owner, occupant, renter, lessee, person present
upon, or person having charge or possession of the STR premises, to make or continue
to cause to be made or continued any loud, unnecessary, or unusual noise which
disturbs the peace and quiet of any neighborhood, or which causes discomfort or
annoyance to any reasonable person of normal sensitivities residing in the area, or
which violates any provision of Chapter 7.15 ("Noise") of the Seal Beach Municipal
Code.
6. The minimum age of the STR Tenant shall be 25 years old.
7. The City will post STR contact information on the City website for the
public to access.
8. An STR may not be operated as any other commercial home-based
business.
9. The Owner shall, upon reasonable request from the City, permit the City's
Building Official or their designee to inspect the STR for compliance with this Chapter
and the Permit.
E. STR Owner Requirements.
1. The Owner shall provide information on the maximum allowed number of
occupants, parking capacity and location of parking spaces, noise regulations and quiet
hours, and trash and recycling disposal requirements in writing to prospective Guests,
prior to their occupancy.
2. The Owner shall provide and maintain working fire extinguishers, smoke
detectors, and carbon monoxide detectors, in compliance with applicable health,
building, fire, and safety codes; and information related to emergency exit routes on the
property, local contact, and emergency contact information.
3. Transient Occupancy Taxes shall be collected on all STRs pursuant to
Seal Beach Municipal Code Chapter 4.35 and paid to the City as required by that
Chapter. If a Hosting Platform does not collect payment for the rental, Hosts or
Operators are solely responsible for the collection of all applicable TOT and remittance
of the collected tax to the City in accordance with Chapter 4.35 of this Code (Uniform
Transient Occupancy Tax).
4. The Owner and the Guest shall be responsible and liable for any activity
which may create a nuisance or other tortious or criminal violations at an STIR.
5. The Owner shall authorize any Hosting Platform on which his or her
STR(s) is listed to provide to the City the operator listing and other information to
demonstrate compliance with all provisions of this Chapter.
1. Hosting platforms shall not process or complete any Booking Transaction
for any STIR, unless the STIR has a valid current STIR Permit issued by the City. Hosting
platforms are required to list the STIR Permit number and expiration date.
2. Within forty-five (45) days of the effective date of this Ordinance, Hosting
Platforms with listings located in the City shall provide to the City contact information of
the Hosting Platform.
3. A Hosting Platform with listings located in the City shall provide to the City
on a monthly basis, in a format specified by the City, the STIR Permit number of each
listing, the name of the person responsible for each listing, the address of each such
listing, and, for each Booking Transaction that occurs within the reporting period, the
number of days booked, and the total price paid for each rental.
4. Hosting Platforms shall remove any listings for STRs, including those on
the City's Prohibited Buildings List, from the platform upon notification by the City.
5. Hosting Platforms shall be responsible for collecting all applicable TOT
and remitting the same to the City. The Owner shall remain responsible for collection
and remittance of the TOT in the event that a Hosting Platform fails to fulfill its
responsibilities under this Section to collect and/or remit to the City or the Hosting
Platform and the Owner enter into an agreement regarding the fulfillment of this
subsection.
6. All Hosting Platforms operating in the City must comply with all Federal,
State, or Local (including the Huntington Beach Municipal Code) laws.
G. Enforcement.
1. Violations of this Section shall be enforced as provided in Chapter 1.15 of
this Code.
2. Each separate calendar day in which a violation exists may be considered
a separate violation. However, a thirty (30) day -warning period from the effective date of
this Ordinance shall be provided prior to issuing fines for advertising an STIR without a
valid STIR Permit number.
3. If the City issues three (3) citations for separate violations of this
Ordinance against an STIR within any twelve (12) month period and those violations are
confirmed or enforced in an administrative or criminal court proceeding, the STIR Permit
shall be revoked, or suspended, or additional conditions may be imposed by the
Director by providing written notice to the STIR Owner setting forth the basis of the
intended action and giving the STIR Owner an opportunity, within fourteen (14) calendar
days, to appeal the revocation, suspension, or amendment of the Permit in writing to the
City Manager or their designee. If such an appeal is timely filed, the City Manager or
designee shall hold a hearing and may determine to grant the appeal, revoke the STIR
Permit, suspend the STIR Permit, or impose additional conditions upon the STIR Permit
and thereafter give written notice of the decision to the STIR Owner. If an STIR Permit is
revoked, the STIR may not be re -registered with the City, and the property may not be
used as an STIR, for a period of twelve (12) months from the date of revocation. The
action of the City Manager or designee on such an appeal shall be final and not subject
to further administrative appeal.
4. The City hereby finds and declares that repeated violations of this Chapter
constitute a public nuisance which may be enjoined under all applicable laws including
Code of Civil Procedure Section 731.
5. An STIR Owner convicted of violating any provision of this Chapter in a
criminal case or found to be in violation of this Chapter in a civil or administrative
proceeding brought by the City may be ordered to reimburse the City its full
investigative and enforcement costs and pay all unpaid TOT if applicable, in addition to
any other remedy at law or equity.
6. The remedies provided in this Section are cumulative and not exclusive,
and nothing in this Section shall preclude the use or application of any other remedies,
penalties, or procedures established by law.
7. The Director, or their designee, shall have the authority to establish
administrative rules and regulations consistent with the provisions of this Chapter for
interpreting, clarifying, carrying out, furthering, and enforcing the requirements and the
provisions of this Chapter.
8. If any provision of this Section conflicts with any provision of Title 11
(Zoning) as to STRs, the terms of this Section shall control."
H, Program Review
1. The City Council shall review and evaluate this Ordinance within _qLqhteen
(18) months of adoption, and annually thereafter. The review shall, at a minimum,
include an analysis of demand for STIR Permits based on avolications received.,
complaints and calls for service associated with the operation of new STRs, and
summa W of new revenues associated with STRs.
The adoption of this Ordinance is not a "project" under CEQA because it can be seen
with certainty that the new regulation of short-term rentals in fully built -out residential
areas will lead to no direct or indirect physical change in the environment. AltefRate4y-,
the-Gdy-fmd&4hat-adeptioR-of4hr,-04nanGe,4s-c-ategotiGally-exemph
fofn-GE-QA
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15305.The Zone Text Amendment consists only of minor revisions and clarifications to
existing regulations and specification of procedures related thereto in certain
residentially zoned property to ensure consistency and eliminate internal conflict
between existing provisions. The amendment,, -therefore, is exempt from the
reguirements of CEQA and the State CEQA Guidelines under Guidelines Section
15061 (b)(3) and Section 15301 , because it can be seen with certainty that there is no
possibility that the activity in gUestion may have a significant effect on the environment,
Section 3. Severability.
If any provision or clause of this Ordinance or the application thereof to any person or
circumstances is held to be unconstitutional or to be otherwise invalid by any court of
competent jurisdiction, such invalidity shall not affect other section provisions, or
clauses, or applications, and to this end the provisions, sections, and clauses of this
ordinance are declared to be severable.
Section 4. Effective Date.
This Ordinance shall take effect thirty (30) days following its adoption by the City Council,
Section 5. Certification.
The City Clerk shall certify to the adoption of this Ordinance, and the City Clerk shall
cause this Ordinance or a summary thereof to be published as required by law. The City
Manager is directed to widely publicize the adoption of this Ordinance.
PASSED AND ADOPTED by the City Council of the City of Seal Beach on this day
of _, 2022, by the following vote:
AYES:
NOES:
Joe Kalmick, Mayor
Gloria D. Harper, CIVIC, City Clerk
Craig A. Steele, City Attorney