Agenda, first session — Del Mar City Council, September 9, 2024

Del Mar City Council Meeting Agenda
Del Mar Town Hall
1050 Camino del Mar, Del Mar, California
September 9, 2024 City Council Meeting

INFORMATION RECEIVED

AFTER THE COUNCIL AGENDA

WAS DISTRIBUTED
(“Red Dots”)
1 Denise Galvan
From: Laura DeMarco <[email protected]>
Sent: Friday, September 6, 2024 4:00 AM
To: David Druker; Terry Gaasterland; Dan Quirk; Tracy Martinez; Dwight Worden Cc: Wendy House; Karen Brindley; Amanda Lee; City Clerk Mail Box; Dianna Lilly; Karl Schwing
Subject: Red dot for Item 8: Stop defacto STR ban through attrition Follow Up Flag: Follow up
Flag Status: Completed
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Dear City Council Members and Staff,
The proposed ordinances perpetuate the city of Del Mar’s defacto “ban through attrition” in effect since the city council enacted a “temporary” moratorium in April 2016. As the result of vigorous enforcement over the last eight years (without required Coastal Commission approval) and in defiance of Judge Bacal’s court order, the number of STRs dropped from 490 in October 2017 to 115 by August 2024.

Unfortunately, the CEQA consultant’s report has significant omissions, false assumptions, and fails to assess the environmental impact from the 75% STR attrition rate during the city’s 8-year STR moratorium/forbearance that will be perpetuated by the proposed ordinance which will eventually eliminate 90% of existing STRS, those that are not owner-occupied, as their permits will be terminated with ownership change.

In addition, replacement STRs are limited by definition (owners must occupy them for more than 6 months), demographics (owners who pay $5M-$48M for beach houses don't offer STRs), the hassle of dealing with STR renters, the time and energy to clear personal items out of bedrooms and home offices and then move back in, and natural inertia. These obstacles resulted in only 10% of STRs being currently owner-occupied. The city's proposed ordinances erect even more barriers: 30-minute response time requirement; being subject to city inspections, collecting and remitting 13% TOT tax, applying for and paying for a permit, higher insurance costs, and increased liabilities. As a result, only 20-30 owner-occupied STRs will likely remain in 10 years.

The CEQA report ignores Judge Bacal's prior ruling that an ordinance that bans STRS (explicitly or implicitly as evidenced by the 75% attrition rate that will eventually lead to only 20-30 remaining by 2034 vs. 490 in 2017) could cause significant environmental impacts as excerpted below:

The Resolution effectively bans STRs from all non-residential areas. Alliance argues - and the City does not dispute - that such a ban could result in the construction of additional hotels and motels to serve visitors, exacerbate traffic and parking issues, and reduce access to coastal resources. It is also undisputed that concentrating STRs in the RC zone could result in environmental impacts related to traffic, overuse and beach erosion. Under these circumstances, the Resolution constitutes a project under CEQA and should have been reviewed accordingly. Thus, the petition for writ of mandate is granted.

There is no basis for the claim that the proposed STR ordinances “will maintain the existing baseline condition of the environment.” This was the same claim used to enact the STR moratorium in April 2016 and the rolling forbearance allowing only those in existence prior to the 2016 moratorium. The September 9, 2024 ITEM 8
2 evidence shows vigorous enforcement over the last eight years (without required Coastal Commission approval) eliminated over 300 STRs, from 490 in October 2017 to 115 by August 2024.

Thus, Del Mar’s STR ordinance did not “maintain the existing baseline of the environment.” Del Mar’s 75% STR attrition rate over the last eight years will likely increase with the proposed new ordinance banning STRs that are not owner-occupied because 90% of Del Mar’s remaining 115 STRs will be eliminated with ownership changes as they are not the owner’s primary residence, the only allowed STRs.

Since most STR owners are elderly, the 90% STR attrition will take approximately 10 years as heirs cannot afford to buy out the other heirs’ share of $5M-$48M beach properties nor pay increased annual property taxes of $50,000-$480,000 based on the current market value due to Prop 19.

The remaining 20-30 STRs will mostly be part-time with very limited availability as the proposed ordinance only allows STRs in primary residences so they are infrequently available and are not comparable to the 490 in 2017 nor the 115 now in 2024 of which ~100 are full-time STRs operating year-round.

Furthermore, Del Mar’s proposed STR ordinances and regulations make owner-occupied replacements unlikely as previously reviewed, especially for mom & pop operators. The proposed STR regulations are a full-employment act for property managers who charge 20-35%.

Are the added costs of 20-35% for property management; 13% TOT; tens of thousands more in city fees and increased insurance costs for STR coverage; increased maintenance and cleaning costs; and added liability from damage by tenants, indemnification of the city from lawsuits, and exposure to millions in potential liability from death or injury of STR tenants (especially for properties with roof-top decks, 2nd story windows and balconies, and swimming pools) worth it to full-time resident owners? No, especially given the time, hassle, and lack of space needed to store away fragile items, valuables and cherished family mementos so they aren’t damaged or stolen; clear closets and dressers of clothing and personal items for STR renters’ temporary occupancy; and to secure sensitive private documents and computers from nosy renters.

Even after all the time and expense, there remains the looming threat of being shut down due to the weaponization of Del Mar’s code enforcement by a vindictive STR opponent who reportedly filed complaints on 40+ properties for just operating as a STR.

Del Mar’s defacto STR ban through attrition is not fair to thousands of vacationers fleeing record inland heat from climate change; patients with compromised immune systems undergoing treatment at local medical centers, and large families with children who will no longer be able to utilize Del Mar’s more affordable and family-friendly STRs with better access to the safest and most ADA-accessible beach in San Diego County and accommodations with an average of 2 bathrooms, 3 bedrooms, and 2-4 onsite parking spaces.

Unlike Del Mar’s few hotels or those in other cities, Del Mar’s STRs offer beach access so their tenants can walk to the beach and use their STR’s more sanitary outdoor showers and indoor bathrooms instead of overburdening Del Mar’s limited beach parking, few public bathrooms that get very crowded and dirty, and four public outdoor showers.

What is Del Mar’s alternative offered to thousands of displaced STR tenants? Stay in STRs and hotels in other cities and commute to Del Mar’s exclusive beach area to search for already scarce street parking in neighborhoods whose owners who can afford $5M-$48M beach houses. This is not September 9, 2024 ITEM 8
3 only a violation of the Coastal Act that prioritizes visitor-serving coastal access but also is environmentally damaging as it increases traffic, congestion, noise, and greenhouse gas emissions as these commuters endlessly circle trying to find increasingly scarce parking as they no longer have access to hundreds of eliminated STRs with 600-1000 onsite parking spaces.

The negative environmental impact of losing 600-1000 onsite STR parking places is already evident with overflowing beach parking filling the Del Mar Plaza parking structure which is full of beachgoers on sunny weekends and holidays. This forces Plaza patrons and employees and other beachgoers to park on nearby narrow side streets making 2-lane traffic dangerous and impassible for large fire engines.

Was the consultant made aware of the negative environmental impact on coastal resources, traffic, congestion, parking, noise, and greenhouse gas emissions from the city’s alternative offered to the Coastal Commission and thousands of displaced STR tenants: commute for miles on Del Mar's already congested roads from hotels and STRs in other cities?! Notably, the CEQA consultant failed to include Del Mar’s Parking Master Plan (PMP) in their planning document review nor note that many STRs are located in the beach area. The PMP documents significant parking deficiencies in this beach area, the epicenter of STRs which each typically provide 2-to-4 off-street parking spaces. It is no coincidence that the beach parking problem has worsened with the elimination of 300+ STRs with 600-1000 onsite parking spaces during the STR moratorium/forbearance in effect over the last 8 years.

The overflow demand for public parking is encroaching into surrounding side streets, making 2-lane traffic impassable and creating health and safety hazards to drivers, pedestrians, residents and visitors with small active children, and first responders in fire engines, especially in or adjacent to high wildfire hazard zones as shown in the photos below taken on a sunny Sunday afternoon, Aug 26:

West view of 14 St. on Sunday (9/25/2024)
September 9, 2024 ITEM 8
September 9, 2024 ITEM 8
6 East view of Carolina on Sunday
(8/25/2024)
September 9, 2024 ITEM 8
September 9, 2024 ITEM 8
8 It’s also no coincidence that Del Mar’s defacto STR ban through attrition and limited supply of 355 hotel rooms attracted the luxury Marisol hotel development with $700-$2,400 rates proposed on Del Mar’s fragile, oceanfront sandstone North Bluff. More environmentally destructive hotel development will be proposed and eventually built because Del Mar’s ordinances limiting STR competition gives hotels and their developers large profits from monopolistic pricing power.

For example, an existing hotel is already considering a large expansion that blocks public ocean views and create more traffic, congestion, noise, greenhouse gas emissions, and parking demands on busy Camino del Mar and its side streets. Another large, low-rent apartment building in one of the few zones allowing hotels will eventually be developed into more profitable use to a hotel that will displace over almost 100 long-term renters and also add more traffic, congestion and greenhouse gas emissions on Camino del Mar.

Del Mar’s already congested highways, roads, and beaches (especially during summer weekends, holidays, and events at the Fairgrounds) and eroding bluffs cannot support more high-impact hotel development.

Does the CEQA report address the following:
1) How the prohibition against new non-resident STRs will continue the current 75% STR attrition rate so that there will only be 20-30 left within the next 10 years? 2) How 300 empty former STRs (as these vacation homes will not be used as long-term rentals by their wealthy owners who can afford $5M-$48M beach houses) hurts public safety as they attract criminals, vagrants, and teenagers looking for unoccupied beach patios and decks to party with drugs and alcohol?
3) How these uninhabited properties create environmental hazards to adjacent properties and negatively impact public safety as they are more susceptible to house fires from corroded electrical lines, flooding from plumbing failures, damage from storms, and are more vulnerable to wildfires or floods as most are located in flood plains or are near high wildfire hazard zones? 4) How about the environmental impact of blight from increasingly empty storefronts and rundown buildings in Del Mar’s commercial corridor as the result of the loss of tens of thousands of STR tenants who spend millions sustaining our village’s struggling shops and restaurants throughout the entire year? Will the remaining 20-30 STRs left sustain them? Absolutely not. 5) How decreased competition from STRs will increase hotel development, noise, traffic, greenhouse gasses, and blockage of public ocean views in order to expand Del Mar’s existing hotels, build new hotels, and convert low-impact buildings in the RC and VC zone (like the Terraces apartment complex) to high-impact hotels which will displace existing long-term housing and hundreds of their residents?
6) How about the environmental impact from increased traffic, noise, and greenhouse gas emissions from tens of thousands of displaced STR tenants and their visitors who now have to commute on Del Mar’s already clogged roads to our beaches from remote hotels because there are only 355 hotel rooms and 20-30 STRs left in Del Mar?
7) What is the impact of losing 600-1000 offsite STR parking spaces in the North Beach and South Bluff beach areas causing increased demand from displaced STR tenants who now have to endlessly circle looking for increasingly limited street parking? 8) How increased parking demand and limited availability forces beachgoers to park on Camino Del Mar, its side streets, Del Mar Plaza parking structure, and North Hills so that residents, visitors, and customers and employees of our village’s shops and restaurants are being displaced so they are discouraged from working, shopping, and eating here?
9) How increased beachgoer parking demand on Del Mar’s already narrow streets endangers our community and increases environmental hazards by decreasing firefighter and paramedic response September 9, 2024 ITEM 8
9 times as 10’ wide fire engines are unable to maneuver their large trucks and cars filled with panicked evacuees are blocked during a smoke-filled wildfire causing reduced visibility? My friend, who survived the Oakland Hills wildfire disaster (unlike some of her neighbors) has flashbacks whenever she drives on Del Mar's narrow, heavily-forested streets filled with flammable conifers and eucalyptus, steep inaccessible tinderbox canyons, blind curves, and "dead" ends (literally and figuratively). 10) How spillover parking on Del Mar’s North Hill, which is in or near high wildfire hazard zone, increases risk of wildfires due to careless smokers strolling to and from nearby bars and restaurants? However well-intentioned, the proposed STR ordinances rip this “fabric of our community” enjoyed for decades by generations of families; racetrack owners and patrons; temporary workers at Fairground events including trainers and jockeys; professional golfers and their fans during the PGA tournament at Torrey Pines; student athletes, their families, coaches, and college recruiters attending Surf Cup championships; equestrians competing in horse shows at the Fairgrounds and Del Mar Horsepark; and patients with compromised immune system undergoing life-saving treatment and clinical trials at nearby Scripps, UCSD, and VA medical centers.

They will damage the already sputtering economic engine sustaining Del Mar’s shops and restaurants and many older residents who own and operate STRs. This hurts the city’s sales and business license tax base and wipes away an additional $775,000 in estimated annual revenue generated from potential passage of a TOT tax ballot initiative in the upcoming November election. This will become painfully evident when the next recession hits.

They will also close the historic gateway that brought families like mine, the Stokes, Sullivans, Pavelkos, McDermotts and many others who settled in and contributed to our community after successful “test-drives” through Del Mar’s STRs.

Even more significantly, the Wave Crest timeshare was built in the R-2 residential zone after the city attorney and city council ruled in 1981 that it was a “residential use” as long as there was “no exchange of money” on the property. Thus, STRs in Del Mar have been and continue to be a residential use, not a commercial use, as Judge Bacal noted in her ruling, which is consistent with subsequent California Appellate Court rulings.

In conclusion, please take more time to complete the required CEQA study. Thankfully, data from the last 8 years and more comprehensive analysis of the city's STR registry will reveal that the proposed ordinances, especially the ban on non-owner occupied STRs, will result in an implicit STR ban in violation of the Coastal Act.

Thanks for your consideration,
Laura
37-year Del Mar resident
P.S. Note the term “fabric of our community” was used to describe STRs during the last campaign to tax them in 2010.

September 9, 2024 ITEM 8
1 Denise Galvan
From: Kimberly Jackson <[email protected]>
Sent: Friday, September 6, 2024 3:39 PM
To: City Clerk Mail Box; David Druker; Terry Gaasterland; Dan Quirk; Tracy Martinez; Dwight Worden; City Manager Mail Box
Subject: RED DOT: Item 8 STVRs, PLEASE VOTE NO
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Dear Honorable Mayor and Council Members,
Please reject the short term rental ordinance, as it is severely flawed:

The Primary Residence requirement for any new vacation rental is NOT being mandated by The CCC as The City of Del Mar stated it is. Our camp met with Coastal today, and they confirmed this is NOT a requirement what so ever. Our PIR also proved the city has NOTHING in writting instructing this. Coastal has never forced this upon any city and they don't plan to. Remove this, as this is essentially a ban. When a grandfathered-in unit goes away, a new unit should be allowed to come to maket in it's place. Not a unit that an owner lives in half the year. The passing of this ordinance "as is" will damage the already sputtering economic engine sustaining Del Mar’s shops and restaurants. This attrician will severely hurt the city’s sales and business license tax base, and wipes away an additional $775,000 in estimated annual revenue generated from potential passage of a TOT tax ballot initiative in the upcoming November election. This will become painfully evident when the next recession hits.

The government over reach with the "Home Inspections" area is also severely flawed. This language needs to be altered or removed. If the government is going to come into our homes, we need a valid reason why, and by whom this inquiry was made, all disclosed publicly. As you know, there were over 40 inquiries made, on 40 different properties, by Robin Crabtree alone, all in one day!!! If this ordinanbce passes, that would be 40 home inspections. We need to see a code violation and whom instructed it to be issued, if you plan to intrude Del Mar vacation rentals.

The CEQA report also ignores Judge Bacal's prior ruling that an ordinance that bans STRS (explicitly or implicitly as evidenced by the 75% attrition rate that will eventually lead to only 20-30 remaining by 2034 vs. 490 in 2017) could cause significant environmental impacts as excerpted below:

Thus, the petition for writ of mandate is granted.

However well-intentioned, the proposed STR ordinance rips this “fabric of our community” enjoyed for decades by generations of families; racetrack owners and patrons; temporary workers at Fairground events, including trainers and jockeys; professional golfers and their fans September 9, 2024 ITEM 8
2 during the PGA tournament at Torrey Pines; student athletes, their families, coaches, and college recruiters attending Surf Cup championships; equestrians competing in horse shows at the Fairgrounds and Del Mar Horsepark; and patients with compromised immune systems, undergoing life-saving treatments and clinical trials at nearby Scripps, UCSD, and VA medical centers.

Please vote NO on Item 8. We have until 12/31/24, so lets get it right the first time, or make amendments Monday night if you need the 1st reading passed.

Thank you,
To help protect your priv acy, Microsoft Office prevented automatic download of this picture from the Internet.

To help protect your priv acy, Microsoft Office prevented automatic download of this picture from the Internet.

Kimberly Jackson

FOUNDER
Vacation Rental Management
(503) 957-9354
[email protected]
www.vacationrentalsbykimberly.com
September 9, 2024 ITEM 8
1 Denise Galvan
From: John Moe <[email protected]>
Sent: Monday, September 2, 2024 3:20 PM
To: Amanda Lee; City Clerk Mail Box
Cc: John Moe; Nicole Moe
Subject: Introduction and Adoption of an Ordinance to establish regulations for Short-Term Rentals (STR's) - DMMC Chapter 30.96
Attachments: Amanda Lee. City of Del Mar 090224 (1).docx Follow Up Flag: Follow up
Flag Status: Flagged
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Please see attached.

Best,
John Moe, DRE# 01926124
[email protected]
(408) 315-5757
September 9, 2024 ITEM 8
September 2, 2024
Amanda Lee
Principal Planner
City of Del Mar | Planning and Community Development VIA U.S. MAIL AND EMAIL 1050 Camino Del Mar [email protected]
Del Mar, CA 92014 [email protected]
RE: Introduction and Adoption of an Ordinance to establish regulations for Short-Term Rentals (STR’s) – DMMC Chapter 30.96
Dear Ms. Lee,
I’m writing in reference to the proposed new regulations for Short-Term Rentals (STR’s) in the City of Del Mar. I represent the Owner of 2721 Camino del Mar (The "Chrys Chrys & Mary Chrys Survivor Trust") as an immediate family member. I am also a licensed Broker in the State of California and have been an expert in investment real estate for the past thirty years.

Our family acquired 2721 Camino del Mar as a second home and investment property, having the ability to engage in short-term rentals for necessary income purposes. The proposed limitations on STR’s will significantly and negatively impact our investment and income, particularly if STR’s are limited to principal resident ownership and most certainly if eliminated altogether.

My issue is less about the minimum stay or occupancy of STR’s, but rather the potential to further limit them to primary residence owners or the possibility of eliminating STR’s in the City of Del Mar. I respectfully oppose any new Adoption of an Ordinance to DMMC Chapter 30.96 that does not support my position stated herein.

Sincerely,
John C. Moe, DRE# 01926124
(408) 315-5757
[email protected]
September 9, 2024 ITEM 8
1 Melinda Gould
From: Gina Corsini Mattern <[email protected]>
Sent: Friday, September 6, 2024 4:37 PM
To: David Druker; Terry Gaasterland; Dan Quirk; Tracy Martinez; Dwight Worden; Wendy House; Karen Brindley; Amanda Lee; City Clerk Mail Box; Dianna Lilly; Karl Schwing Subject: Red Dot Del Mar STR Ordinance - Monday, Sept 9, 2024 Follow Up Flag: Follow up
Flag Status: Flagged
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Dear Council Members:

I wish to make my opposition known to the Adoption of Ordinance to DMMC Chapter 30.96 as currently proposed.

I respectfully ask the Council to remove the following restrictions:

1. Remove - Primary Residence Rule. This rule is not within keeping the character of Del Mar, as many of us homeowners own our property as second homes. This rule is a "backdoor" approach to banning future short term rentals. It is well documented that the "owner occupancy" rate is considerably low in our community. This rule will ensure, through attrition, that the number of STRs will dwindle to almost zero over time (10 years or less). You have documentation showing the effects your 2016 moratorium has had on the community, with a high of 470 strs to the current registry of 117 properties. This is a startling attrition rate in less than 10 years.

2. Remove- Condominium limitation to 10% Again, there is no reason to set this limitation as condominiums, via their CCRs, HOAs already state how the community can rent. It should be up to the individual associations, NOT, the government to determine the cap percentage for associations. Condominium owners should be given the same, equal opportunity as single family homeowners when applying for a permit,

3. Increase 5% cap on overall number of permits available to 10%. The maximum number of permits is set at 129. There are currently 117 (or 119) registered properties on the list, meaning only 10-12 permits will be issued to owners not currently operating as an STR. The City is highly relying on hotels in a 5 mile radius to accommodate the 1M+ visitors we get each year. This translates to intensified environmental impact through more traffic, more congestion, less available parking, more use of our public services (trash, restrooms). If we had more available STRs, then people could park at their rental, walk to the beach, go home to use the bathroom, and take their trash to their rental. The City's CEQA study is flawed as it does not address (or minimizes) the true impact outsourcing our visitors will have on our community.

I respectfully oppose any new Adoption of an Ordinance to DMMC Chapter 30.96 that does not support my position stated herein.

Gina Mattern
Del Mar Homeowner
President of Costa del Rey HOA
September 9, 2024 Item 08
1 Melinda Gould
From: Dolores Davies <[email protected]>
Sent: Friday, September 6, 2024 4:58 PM
To: David Druker; Terry Gaasterland; Dwight Worden; Tracy Martinez; Dan Quirk Cc: Amanda Lee; Ashley Jones; City Clerk Mail Box
Subject: Red Dot ⬤—Draft STR Ordinance, #8
Follow Up Flag: Follow up
Flag Status: Flagged
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

September 6, 2024
Del Mar City Council
September 9, 2024–Agenda Item #8
Red Dot Item re: STR Ordinance from 35+ Hills Residents Dear Mayor Druker & Council Members:

As we have mentioned previously in correspondence to City staff and the Planning Commission, we understand that the draft ordinance is designed to accommodate the owners operating existing STR’s, while attempting to limit adverse impacts of STR’s on our neighborhoods by capping STR expansion and requiring new STR’s to serve as a primary residence for at least 6 months.

While we have no problem with this accommodation, we are concerned about the potential for future increases in STR’s, which presumably could be triggered with the next Census and the possible reallocation of new STR’s from other parts of Del Mar. Specifically, our questions and concerns are as follows:

1. Del Mar is a largely built-out community, so why aren’t STR’s simply hard capped at 129 units? If the next Census in 2030 results in new housing units and ADU’s in Del Mar—due to State mandates—will that pave the way for new STR’s in North Beach, South Bluff, and the Hills, beyond the 129 unit STR cap? What if these new housing units are added in areas like Camino Del Mar and the Del Mar Fairgrounds, areas that have no neighborhood STR allocation? Leaving this possibility vague and open to interpretation does not seem like good policy. Wouldn’t it make more sense to have a hard cap in place, with the explicit understanding that a future Council would need to amend the ordinance if circumstances at that time dictate changing citywide cap? As currently written, the ordinance does not make it clear how the next Census datasets would interpreted with respect to housing unit totals in Del Mar and how new STR’s would be allocated amongst neighborhoods.

2. At the recent Planning Commission meeting, Amanda Lee mentioned that the South Bluff neighborhood was “undersubscribed” in terms of STR registration, and that she was not sure how those STR’s would be reallocated to other neighborhoods. Why is this reallocation necessary? Unlike the North Beach neighborhood, there is no longstanding tradition of STR’s in the Hills. For Hills neighborhoods, our Community Plan suggests only “cautious infilling with the type of development which already characterizes the neighborhoods” and is therefore more at risk of adverse change from STR expansion.

3. We are uncertain as to why six condo units west of Camino Del Mar (Del Mar Villa’s condos) located in the R2 zone, were included in the Hills neighborhood’s STR allocation. These units are clearly not in the Hills neighborhood, so if these units are ever removed from the STR inventory, they should not be added back as new STR’s in the Hills.

Thank you for considering these issues and the potential negative impacts on the Hills neighborhoods if STR’s are not capped and limited. We hope you will act to maintain our longstanding neighborhood character and our more serene quality of life, by ensuring that the new ordinance does not allow new STR’s in the Hills neighborhoods, where they are not wanted by residents or needed by beach visitors.

Respectfully,
Richard & Dolores Davies Jamison
September 9, 2024 Item 08
2 Crest Road
Valerie Dufort & Sudeepto Roy
Klish Way
Sherryl Parks
Kalamath Drive
Rosanne Holliday
Crest Road
Art Olson & Shirley King
Avenida Primavera
Sally & Ron Taylor
Crest Road
John & Gale Graybill
15th Street
Frank & Linda Chisari
Crest Road
Sandra & Bram Dijkstra
Rimini Road
Beth Levine
Crest Road
Anne & John Farrell
Via Alta
Jason Dempsey
Crest Road
Ellie Haviland
Rimini Road
Judy & Marc Schuckit
Kalamath Drive
Gloria Sandvik
Crest Road
Ann Feeney
Umatilla Road
Wendy & John Ross
Klish Way
Carmel Myers & Mel Gregory
Crest Road
Joan & Craig Brown
Crest Road
September 9, 2024 Item 08
1 Melinda Gould
From: David Bradley <[email protected]>
Sent: Friday, September 6, 2024 5:07 PM
To: City Clerk Mail Box; David Druker; Terry Gaasterland; Dan Quirk; Tracy Martinez; Dwight Worden; City Manager Mail Box
Subject: RED DOT: Item 8 STVRs, PLEASE VOTE NO
Follow Up Flag: Follow up
Flag Status: Flagged
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Subject : No on Item 8 : Short Term rentals
Dear Del Mar Mayor and Council Members,
Please vote down Item 8, the new Short Term Rental Ordinance. There are issues with it. All new short term rentals should not be required to be owner occupied half the year.

I also don't like the home inspection part.

Thank you,
David Bradley
2004 Ocean Front Lane, Del Mar
336 10th Street, Del Mar
September 9, 2024 Item 08
1 Melinda Gould
From: Camilla Rang <[email protected]>
Sent: Saturday, September 7, 2024 10:01 PM
To: City Clerk Mail Box
Subject: Item 8, City Council meeting 09.09.2024
Follow Up Flag: Follow up
Flag Status: Flagged
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Dear City Council,
As someone who would abhor to have an STR next to me, I still realize that our city need some alternatives to hotel rooms for large families and pets. I think a controlled cap is good and I agree with that part of the regulation, otherwise homes will never enter the sales market and we need housing for people to settle down in our town, especially families.

However, I think it's going too far to require that an owner of an STR needs to use the home as their primary residence for at least 6 months of the year. There are people who bought a second home to spend holidays and vacation in Del Mar and the rest of the year their home is standing empty. Isn't it better that these 2nd homes can be used for other families to stay on their vacation? Now that the new regulation requires a responsible person, such as the owner or an agent, for the STR to respond and make it to the STR within 30 minutes, that should solve most problems and complains.

Keep the cap of how many homes can be used as STR but scrap the primary residence requirement. The best STR hosts are those that live in Del Mar and are renting out a second home. These hosts care about the neighbors, the town, the community, and they can be at the STR within 30 minutes of a possible complain. Likewise for a local Del Mar agent for an out of town owner.

Sincerely,
Camilla Rang
Del Mar
September 9, 2024 Item 08
1 Melinda Gould
From: Nancy Stoke <[email protected]>
Sent: Sunday, September 8, 2024 10:30 AM
To: City Clerk Mail Box
Subject: Red dot Council Item #8 9/9/24
Follow Up Flag: Follow up
Flag Status: Flagged
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Honorable Mayor and Council Members,
I have reviewed the red dots submitted by Laura DeMarco and Kimberly Jackson and John Moe that are posted on the city’s website as I write this email on Saturday night 9/7/24. Each individual who submitted a red dot is known to be factual, detailed, and well-versed in this STR issue. The red dots appear to be wellsupported with facts, history, and logic and should not be ignored when making your vote on this Ordinance that will forever change the course of visitor-serving shelter and the housing market in Del Mar.

Please heed their cautions that there is more work to be done before this STR issue can be considered “resolved”. This Ordinance should not be adopted as written.

In earlier red dots I shared that my family and I would not be and would not have been active Del Mar residents for 50+ years had it not been for the rental of a house on the hill for two weeks in summers in the early 1970s. Many Del Mar families have similar stories. There was no label “short term rental” in those days – it was normal, accepted, legal practice which over time attracted marvelous community members.

My thoughts now regarding the latest version of the proposed Ordinance:
1 - The requirement for inspection of/intrusion into a private residence is terribly heavy-handed. Does the city ask the same of our hotels in town? Why is this being proposed? Does liability for any unforeseen problems shift to the city as a result of this requirement, ie: city inspects and signs off and then there is a problem, or city chooses to not inspect and there is a problem? Why open the city to such exposure? 2 - What are you attempting to accomplish by requiring that only residences that are owner occupied are eligible to be a STR? Why is an owner who lives in AZ and hires a local property manager and maintenance team not allowed to offer their home as a STR on the occasions when they are not using the home? How does this structure support our local business community? Where is the logic? We should be pleased to have visitors in town for short term stays, not force them to stay away and instead require potential visitor-serving property to sit empty. The housing market is not something you will easily control, especially at current market prices and given the sophistication of the owners who choose to own in Del Mar. This requirement will backfire and cause the community more harm than good. Occupied property is far better than property sitting empty.
3 – The community voted NO on Prop J once already; do you expect the vote to be any different this time? 4 – How many bona-fide complaints against existing STRs have been filed in the past 18 months? If unresolved, is there an underlying reason that can/should be addressed instead of turning the entire visitorserving STR market upside down? September 9, 2024 Item 08
2 5 – Keep it simple. Put workable mechanisms in place to rein in unruly visitors, hold the property owners responsible for their renters, and encourage neighbors knowing neighbors so that if there is a problem it can be handled between owners/neighbors and escalated only when needed.

Please do not approve this Ordinance as currently written; it needs more work. The years of hard feelings and deeply-entrenched positions need to be set aside so that the current situation can be re-assessed to address the real problems, if any. I believe time and the fluctuating economy have softened and/or removed many of the prior problems.

Don’t fall for the thought that everyone has to feel pain for the Ordinance to be a good one; that is terribly disrespectful of the terrific people in this community. We are better than that.

Respectfully submitted,
Nancy Stoke
September 9, 2024 Item 08
1 Melinda Gould
From: Brenda Sampiere <[email protected]>
Sent: Sunday, September 8, 2024 3:22 PM
To: City Clerk Mail Box; David Druker; Terry Gaasterland; Dan Quirk; Tracy Martinez; Dwight Worden; City Manager Mail Box
Subject: Short term rental- vote no
Follow Up Flag: Follow up
Flag Status: Flagged
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Dear Honorable Mayor and Council Members,
Please reject the short term rental ordinance, as it is severely flawed.

The Primary Residence requirement for any new vacation rental is a de facto ban. Over time, you will have less than 50 vacation rentals in the town but you know that and that’s why you’ve presented this plan.

The passing of this ordinance in the current state will damage the already struggling Del Mar’s shops and restaurants and deny many visitors the ability to vacation in Del Mar.

Please vote NO on Item 8. We have until 12/31/24, so lets get it right the first time, or make amendments Monday night if you need the 1st reading passed.

Thank you,
Brenda Sampiere
858-414-1724
September 9, 2024 Item 08
1 Melinda Gould
From: Debbie Church <[email protected]>
Sent: Monday, September 9, 2024 7:39 AM
To: City Clerk Mail Box; Terry Gaasterland; Dan Quirk; Tracy Martinez; David Druker; Dwight Worden; City Manager Mail Box
Subject: Red dot item 8
Follow Up Flag: Follow up
Flag Status: Flagged
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Dear Honorable Mayor and Councilmembers,
Unfortunately I am out of town and unable to attend this evening so I wish to express my concerns in this red dot.

While I am content with a large portion of this ordinance, I recommend a few changes that need to be considered.

1. On-site advertising needs to be allowed. The current ordinance states "Signs advertising availability of the STR for rent are not permitted on the property." We rent our property as both short term and as a monthly rental so this language would restrict us from using any signage.

2. The complaint response time should be changed to 2 hours or even longer (similar to Solana Beach and San Diego). The unfairly short time of 30 minutes is unreasonable and means that mom & pop rentals would have to employ a special management service just to monitor complaints.

3. On-site inspections should not be an occurrence as a result of a resident complaining. The current language allows for a single resident to complain about every rental and as a result invasive, nuisance inspections would occur. That is an unreasonable search. Leave any inspections to the insurance company and take the city out of the process.

4. When the total number of STRs is below the 5% housing stock number, remove the primary residence requirement for new STRs. Let's maintain this reasonable number of STRs that is far far below the historic number of STRs. Without doing this, within 10 or so years we will be left with only approximately 20 rentals.

Thank you for your consideration.

Debbie Church
27th St
36 year resident and 36 year STR operator
September 9, 2024 Item 08
1 Melinda Gould
From: City Clerk Mail Box
Subject: FW: Revised Red dot for item 8: No CCC requirement to ban non-owner occupied STRs or 90% of Del Mar's remaining 115 STRs
Attachments: Del Mar STR Presentation for City Council 9.6.2024.pdf From: Laura DeMarco <[email protected]>
Sent: Monday, September 9, 2024 11:00 AM
To: City Clerk Mail Box <[email protected]>
Subject: Revised Red dot for item 8: No CCC requirement to ban non-owner occupied STRs or 90% of Del Mar's remaining 115 STRs
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Dear City Council Members and Staff,
The Coastal Commission approved Seal Beach's LCP that allowed STRs that were both owner and non-owner occupied. Thus, Del Mar is not required to ban non-owner occupied STRs by the Coastal Commission.

Even though Seal Beach is 5x larger in population and land area than Del Mar, their city officials stated they did not have the staff to enforce a ban on non-owner occupied STRS so how does Del Mar which cannot afford to complete undergrounding dangerous power lines? The city council and staff should carefully calibrate the environmental and economic impact of the attrition of 375 STRs (115 now vs. 490 in 2017 as reported to the CCC in 2018) plus 100 more that would also be eliminated with eventual ownership changes as they are not the primary residences of their elderly owners whose heirs will be forced to sell within the next 10 years.

Since the average STR has occupancy of 8 people with 3 bedrooms, 2 bathrooms, and 2-4 parking spaces, Del Mar's STR ban that shut down 375 STRs displaced approximately 3,000 vacationers who now must commute daily from outlying hotels and STRs miles away from Del Mar's beaches. Add another 800 displaced STR vacationers and loss of 200-300 more parking spaces and 200 more bathrooms when 100 of Del Mar's remaining STRs (90% of 115 today) will be eventually eliminated by the proposed ban on non-owner occupied STRs. As a result, 3,800 displaced Del Mar STR vacationers must commute daily for miles from hotels and STRs outside Del Mar.

However, these 3,800 former STR tenants no longer have access to 800-1300 onsite parking spaces nor 950 bathrooms at Del Mar's STRs that also provided beach access. This demand on already limited street parking and crowded and dirty public bathrooms is not just an inconvenience for families, especially those with small children, but also creates a substantial negative environmental impact on congestion, traffic, greenhouse gas emissions, sanitation, and public health and safety.

Attached are more photos taken this weekend of spillover beach parking demand to the Del Mar Plaza and overflow to nearby side streets (like 15th St. shown) that create hazards for pedestrians, 1 September 9, 2024 Item 08
2 drivers, and emergency vehicles as it impedes 2-way traffic. This is dangerous for first responders fighting wildfires and for fleeing panicked residents in their cars trying to escape in already hazardous conditions with limited visibility from smoke and falling ashes.

What is the economic impact of the millions in sales tax lost from 3,800 STR tenants who retreat daily to their hotels and STRs located miles away to shower and change out of their bathing suits? They are likely too tired to return, fight traffic, and waste more time endlessly circling to find parking to be able to to shop or dine at our village's shops and restaurants.

How can the city of Del Mar hope to collect $775,000 in annual STR TOT to fund undergrounding, sand replenishment, and other city priorities when 90% of existing STRs will eventually be eliminated with the proposed ban on non-owner occupied STRs?
Please also find attached more information about the history of Del Mar's STRs which enabled millions of vacationers, including my mother's family from Pt. Loma, to enjoy our beautiful beaches and charming village over the past 100 years. Those happy childhood memories of beach vacations through Del Mar's historic STRs inspired me and many other former STR tenants and guests to move to and contribute to our community.

In conclusion, please do not shut down Del Mar's historic STR gateway to our family-friendly beaches, scenic ocean-view bluffs, and charming village's shops and restaurants for future generations by banning non-owner occupied STRs.

Thanks for your consideration,
Laura
Overflow beach parking at Del Mar Plaza and 15th Street on Sunday afternoon, Sept. 8, 2024 2 September 9, 2024 Item 08
3 Loading up beach towels and gear to go to the beach
3 September 9, 2024 Item 08
4 Beachgoers in bathing suits returning to their parked car in the Plaza parking structure 4 September 9, 2024 Item 08
5 Another beachgoer parked in the Del Mar Plaza
5 September 9, 2024 Item 08
6 Family with beach wagon on their way to the beach after parking in the Plaza 6 September 9, 2024 Item 08
7 Beachgoer with beach towel walking down narrowed 15th Street with vacationers and village visitors parked on both sides of the street narrowing it to a single lane 7 September 9, 2024 Item 08
Del Mar  STR Ban Plan
Through Attrition
8 September 9, 2024 Item 08
Del Mar’s Long STR History
 1930-1970s: STR boom with ~100 hotel rooms after
Hotel Del Mar closed in 1963
 1970s: Community Plan Taskforce rejects
discouraging “transient occupancy” (daily and weekly)
and Community Plan notes “comparatively large
percentage” of STRs in North Beach zone
 1981: City Attorney memo to Planning Commission
and City Council states STR is “residential use”
 2010: Prop J Ballot initiative to approve TOT on STRs states STRs are “fabric” of community”
 2016-present: Temporary ban on new STRS through
“Urgency” ordinance (extended with “forbearance”)
 2017: New council majority makes new zoning code
“interpretation” that STRs not allowed and passes
Ordinance 934 banning STRs in residential zones
 2017-20: Court rules new 2017 zoning code
interpretation is “invalid” and Ordinance 934 STR ban
is “legally unenforceable”
 2018-20: Coastal Commission rejects Del Mar’s 28/7
STR ban prompting City lawsuit dismissed by judge
 2024: City ignores court order and continues STR
ban so only 115 STRs left vs. 490 in 2017
490 Del Mar STRS (2017)
Source: 6/7/2018 CCC Meeting Exhibit
Hotel Del Mar closes 1963
9 September 9, 2024 Item 08
Del Mar & CCC approved STRs as allowed
use in 1976 Community Plan and LCP
“North Beach District: A comparatively large percentage of transient housing (STRs) is available in this planning area.” Del Mar Community Plan, p. 56
STRs occupied primarily by college students in off-season:
 20-70% in North Beach (3 zones)
 10-20% in South Bluff and Beach (3 zones)
 1-5% in North Hill and Village (3 zones)
Source: Del Mar Community Plan Demographics, p. 13
STRs allowed because:
• Historic use pre-dated City’s incorporation in 1959
• Many Community Plan Taskforce members operated STRs
• Economic lifeline for city, residents, property owners, and village shops and restaurants with only ~100 hotel rooms in 1976 after demolition of historic Hotel Del Mar
After mid-1980s landlords shifted from partying
students to vacationing families
1976 Plan Demographics
10 September 9, 2024 Item 08
Del Mar’s Community Character in 1970s through mid-1980s:

Hundreds of rowdy student rentals dismayed residents and landlords “Bubble” party house at 122 24th St
1980 UCSD Roommates/Party Hosts
Source: UCSD Magazine, Legends of the Bubble House
Alumni report of wild student parties in Del Mar:
11 September 9, 2024 Item 08
 City of Del Mar’s Illegal STR Ban Plan
In 2016 Council Member Dwight Worden and Mayor Sheryl Parks blocked Council majority from adopting STR regulations until new council majority seated in 2017 would follow their STR "ban plan” in blatant disregard of Del Mar’s Community Plan, CEQA, Coastal Act, Coastal Commission, due process, testimony, and petitions from 500+ Del Mar citizens Council Member Dwight Worden email to Mayor Sheryl Parks on 5/5/2016:
“My first choice is to ban short term rentals of less than 28 days. But, I prefer not to call it a "ban" as it sounds like something new is being imposed and that's a trigger for the Coastal Commission.

Rather, we can confirm by interpretation that our existing rules do not allow, and never have allowed, STR less than 28 nights in residential zones. This effectively achieves the objective without any new rules that the CC (Coastal Commission) might argue with."

Mayor Sheryl Parks to Council Member Dwight Worden on 6/14/2016:
"I think we should slow this down. We might get 3 votes in November…Stalling. I can try to manage to get it off the agenda (as mayor she controlled agenda) but staffs (sic) really pushing for a decision by the last meeting in November because the emergency ordinance is expiring then....We'd simply need to reintroduce it to rollover."

12 Source: City of Del Mar PRA
September 9, 2024 Item 08
 6/1/2017: Alliance lawsuit filed vs. STR ban
 12/20/2019: Trial
 12/24/2020: Judge Bacal issues court order
that Resolution 2017-29 is “invalid and
legally unenforceable”
 2/24/2020: Court ruling stands as city’s
60-day appeal period expires
 In defiance of court order and without
required CCC-approved LCP STR
amendment, Del Mar code enforcement
continues STR ban so 300+ STRs (75%)
lost from 2016-2024 with ownership changes
 1/18/2023: Lawsuit challenges 2 STR
citations as being illegal and unenforceable
 1/23/2023: City Council passes STR
Forbearance Resolution that is erroneous,
defies court order, and invites costly and
wasteful legal battles City has never won
 3/2024: City settles with STR operator to
avoid defying Judge Bacal’s court order
Court Invalidates STR Ban
13 September 9, 2024 Item 08
Excerpt of Court Ruling against Del Mar’s STR ban
14 September 9, 2024 Item 08
 Del Mar Loses STR Lawsuit vs.
the Coastal Commission (2020)
Excerpt of CA Deputy Attorney General court brief:
 Del Mar must set aside its 2017 Ordinance due to CEQA and the court’s rejection of Del Mar's "permissive code" arguments that STRs were never permitted  Del Mar must start all over again from the beginning with a new Ordinance that will be factually and legally significantly different than what has been done thus far In its challenges to the Commission's decision in this case, the City never disclosed Judge Bacal’s prior ruling that basis of Del Mar’s STR ban is illegal and unenforceable A brand new LCP Amendment must be submitted to the Commission in a new restart review based upon the new facts and not the City's false claims Source: The City of Del Mar v. The California Coastal Commission Case# 37-2018- 00039254-CU-WM-CTL
15 September 9, 2024 Item 08
 California Appellate Court Rulings:

STR Bans are Illegal in Coastal Zone
Keen v. City of Manhattan Beach
(2022)
 Court notes City’s residential zoning code
does not distinguish between short- and
long-term rentals
 City’s permissive zoning code does not
disallow STRs
 As residential use, STRs allowed
 City’s new interpretation of zoning code
cannot be used to disallow STRs nor avoid
Coastal Commission jurisdiction
 Any change to City’s code regarding STRs
requires Coastal Commission approval
Kracke v. City of Santa Barbara
(2021)
 City contends STRs not expressly in
its LCP so are excluded, which gives
City right to ban STRs without regard
to Coastal Act
 The City can’t act unilaterally,
especially when it allowed STRs for
years
 Court rules STR regulation/ban in
Coastal Zone is a development
impacting public access that must be
approved by Coastal Commission
16 September 9, 2024 Item 08
 Del Mar’s STR Moratorium Blocks Coastal Access:
300+ STRs with 800+ bedrooms lost
Hotel Rates increase 50%
July
2016
July
2022
Difference
Nominal/increase(%)
Hotel ADR/room* $339 $510 +$171/+50.4%
STR ADR/room* $110 $160 +$50/+33.3%
# Hotels/rooms 6/355 6/358 3 rms/+0.8%
# STRS/rooms 400/800 125/250 -500 rms/-68.8%
July TOT hotel $368 K $507 K +$139K/+37.8%
FY TOT hotel $2.62 M $3.42 M +$800K/+30.5%
*ADR is average daily rate. Source: City of Del Mar; vacation rental websites; Coastal Commission June 7, 2018 STR LCP staff report
17 September 9, 2024 Item 08
 Eliminates 90% of Del Mar’s historic STRs in next 10 years with ownership change  Owner-occupied STRs are only 10% of Del Mar’s current STRs  Del Mar’s 129 STR target meaningless as 90% or 100+ will eventually be eliminated  Increases number of empty 2nd homes vulnerable to crime, vagrants, partiers looking for unoccupied patios and decks, fire, flooding and storms
 Del Mar’s solution: Vacationers can stay in other cities up to 5 miles away  Makes Del Mar beach vacations exclusive to residents owning $5M-$48M properties  Blocks easy access to the safest and most family-friendly beach in the region  Neighboring cities’ beaches blocked by or adjacent to dangerous sliding bluffs  Not stroller or ADA accessible
 Little to no lifeguard coverage
Del Mar’s New Ban Plan: Allow only owner-occupied STRS
Bluff Collapse kills 3 women on Encinitas beach
18 September 9, 2024 Item 08
Del Mar’s STR ban blocks beach access
Del Mar’s 1.4 mile North Beach Access
 Accessible from 100+ historic STRs with 300-400 rooms  Only 46-room Del Mar Beach Hotel in North Beach
 Other 5 hotels blocked by RR tracks and 10-100 ft high bluffs stretching south from Powerhouse Park to Torrey Pines State Beach
Map of Del Mar’s 6 Hotels
Del Mar’s North Beach:
“Best in San Diego County”
Start of steep bluffs
Del Mar Beach Hotel
RR tracks (black line)
19 September 9, 2024 Item 08
 Del Mar’s STR ordinance blocks family reunions
enjoyed by 2nd home owners who offer STRs
92nd Fletcher family reunion in 2017
20 September 9, 2024 Item 08

Suggested modifications of
Del Mar’s Proposed Ordinance
 Since STRs recognized Del Mar’s original Community Plan in mid1970s and “residential use” in 1981 compatible with Del Mar’s Community Plan, especially in North Beach, include as an allowed use in zoning code
 Remove prohibition against non-owner occupied STRs to allow replacements to reduce number of empty 2nd homes to deter criminals and vagrants, and protect property from house fire or wildfire fire, storms and flooding that would damage adjacent properties  Change definition of STRs to less than monthly or less than 28 consecutive days
21 September 9, 2024 Item 08
City of Del Mar
Memorandum
TO: Honorable Mayor and City Council Members
FROM: Amanda Lee, Principal Planner
Karen Brindley, Planning and Community Development Director Wendy House, Assistant City Attorney
DATE: September 9, 2024
SUBJECT: Red Dot Item 8: Introduction of Short-Term Rentals Regulations Ordinance Following distribution of the City Council agenda packet on Wednesday, September 4, 2024, red dot correspondence has been submitted by the public addressing a variety of topics related to the proposed Short-Term Rentals (STR) Regulations Ordinance. While these topics have already been addressed in the Agenda report, the following is being provided to help clarify the information for accuracy in the public record as follows:

Primary Residence Requirement for New STRs
As proposed, owners of new STRs will be required to be natural persons who live in their primary residence for more than six (6) months per year. Ownership can be in the form of a trust, LLC, LP, or LLP, if the members of that entity are natural persons and not businesses. Consistent with City Council direction, Existing STRs will be exempt from the primary residence requirement. This approach is consistent with the City’s certified Housing Element obligation to preserve the local housing stock.

In addition to demonstrating how local housing will be preserved per the certified Housing Element, the City also must demonstrate compliance with the City’s certified Local Coastal Program (LCP). The proposed approach to accommodate existing STRs and limit new STRs to primary residences is consistent with LCPs in other jurisdictions (i.e., Pismo Beach and Half Moon Bay) and the latest California Coastal Commission (CCC) guidance.

Contrary to what has been cited in correspondence submitted by the public, on Friday, September 6, CCC staff reaffirmed to the City that the December 2023 CCC workshop is the best example of the CCC’s current approach on the topic of preservation of housing and STRs. The referenced CCC workshop where policy guidance on preservation of housing and regulation of STRs in the coastal zone was discussed in December 2023 and can be found at the following link:
https://documents.coastal.ca.gov/reports/2023/12/Th5/Th5-12-2023-agenda.pdf 1 September 9, 2024 ITEM 08
Red Dot Item 8: Introduction of STR Regulations Ordinance September 9, 2024

Page 2 of 3 ends

CCC staff also did a cursory review of the City Council STR agenda report for September 9, 2024, and commented that there is a lot of data included to support the City’s proposed Ordinance/LCPA and that is what the CCC will be looking for when they begin their certification review of the City’s Ordinance/LCPA once adopted.

Comparisons to Seal Beach
Some red dot communications have compared Del Mar’s proposed STR regulations to the Coastal Commission approved STR regulations for the City of Seal Beach. However, there are many significant differences between the City of Del Mar and Seal Beach that should be taken into consideration when comparing the two jurisdictions.

Specifically, Seal Beach does not have a certified Housing Element or Local Coastal Program. Their STR regulations were processed as a coastal development permit through the Coastal Commission. What the Coastal Commission approved in July 2024, was a 6-year study period that limits STRs in Seal Beach to 47 permits maximum issued on a lottery basis (letter in record indicates that they had 56 existing STRs as of March 2023). Seal Beach’s STR permits will run with the owner (not the land) and can be hosted or non-hosted.

Also noteworthy, Seal Beach has a population of 25,282, with an estimated 12,500 housing units. The 47 maximum STR permits approved for Seal Beach by the Coastal Commission represents 0.38% of their housing stock. Comparatively, Del Mar has a population of 3,900, with 2,574 housing units. The proposed cap on STRs in Del Mar at 129, represents 5% of Del Mar’s housing stock. Should the City’s number of STRs decline in the future as suggested by some STR operators, the City Council can revisit the STR regulations and make changes to ensure there are STRs available to meet the demand while continuing to preserve housing stock and minimize impacts to the community.

Misperception that Ordinance would be a “Ban through Attrition” The proposed Ordinance and the resulting effect of the Ordinance would not be a ban on STRs. To the contrary, the Ordinance would explicitly allow STR use in residential and commercial zones citywide and have the effect of legalizing Existing STRs.

The Ordinance identifies the prospective permit process and regulations that will apply to STRs (existing and new). The Ordinance accommodates the existing ownership of Existing STRs including business entities, exempts Existing STRs from the primary residence requirement, and exempts Existing STRs from the limit to one STR per owner.

Existing STR owners will be allowed to transfer the property title to their families, which will allow these owners to continue operation of their Existing STRs over time.

Neighborhood Caps
The Ordinance sets a citywide cap on the number of STRs at five percent (5%) of the City’s total dwelling units per the US Census data (2020), which currently equates to a cap of 129 STRs. All Existing STR owners who timely register with the City and apply for STR permits will be accommodated above the cap.

For City Council consideration, the City received requests from STR Operators to increase the citywide cap beyond 129 STRs; and requests from the community to set a hard cap at 129 STRs maximum and require any increase in capacity in future to be 2 September 9, 2024 ITEM 08
Red Dot Item 8: Introduction of STR Regulations Ordinance September 9, 2024

Page 3 of 3 ends

subject to processing of an amendment by Ordinance subject to City Council and CCC approvals.

The proposed Ordinance establishes neighborhood caps to mimic historic use patterns and minimize potential for overconcentration of STRs. Attachment E in the Agenda Report identifies the respective neighborhood cap limits, the number of Existing STRs registered with the City to-date in each neighborhood that has a cap limit set and identifies the additional capacity available in other areas citywide. In a circumstance where the maximum cap limit is reached, no new STRs would be permitted in the respective neighborhood that reaches its cap.

New STRs will be allowed where there is capacity under the citywide cap, in any area that has not otherwise reached a maximum neighborhood cap limit where applicable, and in any other area that allows STRs. For example, the report identifies potential capacity in residential zones in the North Bluff and Via de la Valle neighborhoods and capacity in the following commercial zones: Central Commercial, Visitor Commercial, 941 Camino del Mar Specific Plan, North Commercial, Professional Commercial, and Residential Commercial. Consistent with the Agenda Report, the Fairgrounds property is not a location with capacity for STR use under the proposed Ordinance.

Refer to report Attachment F for a map of the neighborhood cap boundaries identified within the respective North Beach, South Bluff, and Hills neighborhoods where there are Existing STRs and where the City Council provided direction for maximum caps to be set to limit overconcentration in these locations.

California Environmental Quality Act (CEQA) Analysis and Resulting Determination The City conducted the proper level of CEQA review on the proposed Ordinance. The City’s consultant, Interwest Group, prepared an Initial Study/environmental checklist analysis and evaluation that was completed on April 17, 2024, which concluded that no environmental factors that are required to be analyzed per CEQA would be potentially affected by the STR Regulations contemplated by the City Council.

The City Attorney and City staff reviewed the Initial Study evaluation completed by Interwest and analyzed all subsequent changes to the STR regulatory framework and proposed Ordinance. The conclusion has remained the same that there is no potential for a significant effect on the environment based on the CEQA analysis that was conducted and completed. Therefore, per CEQA Guidelines Section 15061(b)(3) this means the Ordinance is exempt from CEQA and no further environmental analysis is required.

Inspections for Safety Compliance
As proposed, each STR Permit application will authorize the City to conduct a reasonable inspection for safety compliance. The City may, but is not required, to conduct an inspection for safety compliance.
3 September 9, 2024 ITEM 08
1 Melinda Gould
From: City Clerk Mail Box
Subject: FW: I Support STRs in Del Mar!
-----Original Message-----
From: Don Instone <[email protected]>
Sent: Monday, September 9, 2024 8:55 AM
To: City Manager Mail Box <[email protected]>
Cc: Don Instone <[email protected]>
Subject: I Support STRs in Del Mar!
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Thank you (most of the) City Council Members for working hard to craft reasonable and well justified rules and regulation to allow STR,s in Del Mar.

I see one glaring unsettling allowance in the language that supports the city being able to conduct a property inspection at any time and for any reason they feel it is warranted. Even if there is no legitimate complaint filed by an individual.

Even if it does not fall within an STR violation. Any code violation found during said “inspection” could result in denial of a permit, harassment, and weaponization of this allowance for certain members of factions AGAINST STR,s . And it will certainly be used as such by said factions. As it has by certain well documented opponents of STR’s in the past. The proposed language that certain council members have promoted will give these same opponents, those that have promoted total bans on STR’s unregulated power to harass any STR owner at any time of their choosing. This is not rightTherefore I propose reasonable straight forward language, with NO AMBIGUITY, as is now written, to clarify and codify inspection in the STR proposed ordinance:
“A property inspection can only be conducted by the city upon a legitimate complaint relating to the STR being filed: A copy of the complaint and the person making the complaint shall be provided to the STR owner.” Any excuse to not insert this languaage, such as “city liability, or other such excuses could be eliminated by a “hold harmless” agreement or a release of liability signed by the homeowner.

Thank you for your action to include this common sense language in the proposed ordinance, Thank you
Don and Dr. Susan Instone
Sent from my iPad
Don Instone
DRE#00954112
858 361-9671
September 9, 2024 Item 08
1 Melinda Gould
From: City Clerk Mail Box
Subject: FW: Red Dot for Item 8: Do not ban non-owner occupied STRs From: Danielle Nicholas <[email protected]> Sent: Monday, September 9, 2024 11:39 AM
To: David Druker <[email protected]>; Tracy Martinez <[email protected]>; Dan Quirk <[email protected]>; Dwight Worden <[email protected]>; Terry Gaasterland <[email protected]> Cc: Ashley Jones <[email protected]>; Amanda Lee <[email protected]>; Karen Brindley <[email protected]>; [email protected]; Karl Schwing <[email protected]>; Dianna Lilly <[email protected]>; City Manager Mail Box <[email protected]>
Subject: Red Dot for Item 8: Do not ban non-owner occupied STRs CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

What is the economic impact of the millions in sales tax lost from 3,800 STR tenants who retreat daily to their hotels and STRs located miles away to shower and change out of their bathing suits? They September 9, 2024 Item 08
2 are likely too tired to return, fight traffic, and waste more time wasted endlessly circling to find parking to be able to to shop or dine at our village's shops and restaurants.

How can the city of Del Mar hope to collect $775,000 in annual STR TOT to fund undergrounding, sand replenishment, and other city priorities when 90% of with the existing STRs will eventually be eliminated with the proposed bn on non-owner occupied STRs? In conclusion, please do not shut down Del Mar's historic STR gateway for future generations by banning non-owner occupied STRs.

Thank you,
Danielle Nicholas
9 th Street
September 9, 2024 Item 08
1 Melinda Gould
From: City Clerk Mail Box
Subject: FW: I Support STRs in Del Mar!
-----Original Message-----
From: Deborah Logiurato <[email protected]>
Sent: Saturday, September 7, 2024 3:09 PM
To: City Manager Mail Box <[email protected]>
Subject: I Support STRs in Del Mar!
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Sent from my iPhone
September 9, 2024 Item 08
1 Melinda Gould
From: [email protected]
Sent: Monday, September 9, 2024 2:56 PM
To: David Druker; Terry Gaasterland; Dan Quirk; Tracy Martinez; Dwight Worden; 'Wendy House'; Karen Brindley; Amanda Lee; City Clerk Mail Box; 'Dianna Lilly'; 'Karl Schwing' Subject: RE: Red Dot Del Mar STR Ordinance - Monday, Sept 9, 2024 Attachments: Item 8 - Introduction of STR Ordinance.pdf; 20240909_reddotscombined.pdf Follow Up Flag: Follow up
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All –
It is so very unfortunate the City of Del Mar is seriously considering adopting the attached STR Ordinance. It is proving that Del Mar is an elitist community, doing all they can to ban low income families from enjoying the coast line of Del Mar. I own a property in Del Mar and welcome those people to visit my unit and enjoy what Del Mar has to offer. Of course their needs to be regulation, which many many communities have adopted to allow STR without putting an Ordinance in place, such as this practically wiping them out quickly. The fact that the leaders of the community are not willing to admit all this Ordinance does is ban STR’s, allowing the existing units to stay in place to avoid as much blow back as possible is just not thinking right. It would be better for the leaders of Del Mar to call this Ordinance for what it is, a way for an elitist NIMBY community to keep people of lower socioeconomic situations from coming to Del Mar.

No reason to set this limitation as condominiums, through their CCRs, HOAs already state how the community can rent. It should be up to the individual associations, NOT, the government to determine the percentage. Of the 17 HOAs in Del Mar, 2 currently allow STRs.

Permits only be issued to new STRs that are OWNER OCCUPIED is a way to stop more STR’s from popping up and over time wiping them all out. You all know very well through attrition, the available rentals in Del Mar will dwindle to nearly zero. There is no reason to put this limitation in place, other than to severely limit who will be able to rent their properties.

The maximum number of permits is set at 129. There are currently 117 (or 119) registered properties on the list, meaning only 10-12 permits will be issued to owners not currently operating as an STR. The City is highly relying on hotels in a 5 mile radius to accommodate the 1M+ visitors we get each year. This translates to intensified environmental impact through more traffic, more congestion, less available parking, more use of our public services (trash, restrooms). If we had more available STRs, then people could park at their rental, walk to the beach, go home to use the bathroom, take their trash to their rental.

The City's CEQA study is flawed as it does not address (or minimizes) the true impact outsourcing our visitors will have on our community.

Craig
September 9, 2024 Item 08
City of Del Mar
Agenda Report
________________________________________________________________________________________________________ City Council Action:

TO: Honorable Mayor and City Council Members
FROM: Amanda Lee, Principal Planner
Karen Brindley, Planning and Community Development Director Wendy House, Deputy City Attorney
Via Ashley Jones, City Manager
DATE: September 9, 2024
SUBJECT: Introduction of Ordinance to Establish Short Term Rental Regulations REQUESTED ACTION/RECOMMENDATION:

Staff recommends that the City Council take the following actions:
1) Confirm the environmental determination that the proposed Short-Term Rental (STR) Regulations Ordinance (Ordinance) is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) (General Rule) because CEQA only applies to projects with the potential for causing a significant effect on the environment; and 2) Introduce an Ordinance (Attachment A) amending the Title 30 Zoning Code in the Del Mar Municipal Code (DMMC) and the certified Local Coastal Program (ZA 24- 004/LCPA 24-003) to establish regulations for STRs under a new DMMC Chapter

30.96. BACKGROUND:

Preparation of regulations for STRs has been a multi-year process, which has involved studies and consideration of how the availability of dwelling units in the community for short-term visitor use can supplement the availability of visitor accommodations and support visitor-serving uses without sacrificing the City’s need to maintain its long-term housing stock. The proposed Ordinance (Attachment A) will accommodate existing STR owners and preserve long term housing stock. Attachment B includes a strikeoutunderline copy of the changes made since prior City Council review in May 2024, and Attachment C includes a summary of additional background details.

Staff prepared a regulatory framework in accordance with City Council direction provided between October 2023 and May 2024. On August 13, 2024, the Planning Commission voted 4-0 to confirm the environmental determination and recommend approval of the 1 September 9, 2024 Item 08 September 9, 2024 Item 08
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code amendments with a recommendation to modify the definition of “short term rental” to define STRs as less than one month and define what that means.

On August 26, 2024, the City Council considered and discussed the definition of “shortterm rental” and whether to expressly exempt longer term rentals from the STR regulations and the requirement to pay Transient Occupancy Tax (TOT). The City Council consensus was to direct staff to modify the definition of “long-term rental” and the “Purpose” section, and craft an “Exemptions” section under the Ordinance consistent with the Council’s stated intent to expressly exempt rentals of a dwelling unit for terms of one month or longer. This includes rentals for a fixed term (e.g., annual) or periodic tenancy (e.g., month-to-month) with a total rental period of more than 30 days, as well as rentals for a month.

The Council further agreed that rentals for a month means a dwelling unit, or any portion thereof, that is rented for a month – whether the rental period starts at the beginning of the calendar month and goes through the end of the calendar month, or whether the rental period starts on someday within the calendar month and goes through the same day of the subsequent calendar month.

The Council directed staff to utilize staff’s recommended definition for “short-term rental” (with slight amendments for clarity purposes), which the Council acknowledged was consistent with both State and local laws governing STRs, including the requirement to collect TOT. The definition of “short-term rental” means the rental of a dwelling unit, or any portion thereof, for dwelling, lodging, or sleeping purposes, for a period of thirty (30) consecutive calendar days or less, unless otherwise exempted.

The definitions and exemptions have been clarified accordingly in Sections 30.96.010 (Purpose), 30.96.020 (Definitions), and 30.96.025 (Exemptions) of the Ordinance to exempt rentals for one month and longer terms. The City Attorney clarified that the Ordinance, as amended to exempt long-term rentals, including monthly rentals, does not conflict with, and will not affect, or invalidate the TOT ballot measure (Measure M), which will be decided by the City’s voters in the General Election to be held on November 5, 2024.

The proposed Ordinance also clarifies the regulations for STR ownership, including how to demonstrate the proof of address requirement when the owner is a business entity as provided for in the Ordinance (i.e., Existing STRs). The amended provision requires the owner to provide the City with proof of a current Certificate of Status, or similar documentation demonstrating the business entity is active and in good standing with the State of Formation. The Certificate of Status applies to State-registered business entities. 2 September 9, 2024 Item 08 September 9, 2024 Item 08
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Adoption of the Ordinance will implement the City’s 6th Cycle Housing Element Program 5C (Preserve the City’s Existing Housing Stock). The proposed regulations align with the City’s certified Housing Element, certified Local Coastal Program, and the following City Council-adopted guiding principles and objectives to:

1. Honor the existing policies in the Del Mar Community Plan.

2. Maintain the residential character of neighborhoods in residential zones.

3. Honor the tradition of vacation rentals during the summers, holidays, and horseracing season.

4. Ensure protection of the public health, safety, and general welfare.

5. Ensure the City’s natural resources will be preserved and protected.

6. Ensure STRs will not overburden public improvements, facilities, and services.

7. Minimize adverse impacts to adjacent private properties and the surrounding neighborhood.

8. Consider distribution and concentration of STRs throughout the community.

9. Craft regulations that are easy to understand and implement.

10. Communicate expectations for civil conduct in line with “good neighbor” policies.

11. Establish enforcement protocols, and ensure regulation of short-term rentals is, at a minimum, revenue neutral to the City.

12. Work towards a solution for STRs that works for Del Mar and will pass muster with the Coastal Commission.

Del Mar is a small coastal city that hosts millions of visitors each year. Overnight visitors are accommodated by hotels that are in Del Mar or nearby with a combined total of 2,379 hotel guest rooms, as well as STR visitor lodging options, as follows:
• Within the City, there are 400 guest rooms between six hotels and two additional visitor-serving lodging businesses.
• Within a five-mile radius of the City of Del Mar’s jurisdictional boundary, there are an additional 1,979 guest rooms between 13 hotels.
• There are also hundreds of STRs located in neighboring communities in the City of San Diego, City of Solana Beach, and County of San Diego, which are advertised as being in “Del Mar,” as well as informal STR accommodations in Del Mar neighborhoods that to date have been unregulated.

By comparison, the City has a total of 2,574 dwelling units per the 2020 United States Census, which means the number of visitor-serving accommodations in the greater Del Mar area exceed the total number of dwelling units in Del Mar. The City’s policy intent is for the proposed STR regulations to accommodate visitors while still maintaining the majority of the local housing stock for use by long term residents. This is consistent with the policy intent of Program 5C in the City’s certified Housing Element and consistent with Coastal Commission policy direction on STRs.
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A dedicated City web page was created to share information with the public about the STR regulations development process: https://www.delmar.ca.us/563/Short-TermRentals DISCUSSION/ANALYSIS:

The proposed STR regulations align with the Del Mar Community Plan, certified Housing Element, and certified Local Coastal Program. This includes Community Plan goals to preserve and enhance Del Mar’s special residential character and small-town atmosphere; preserve housing for diverse age and socio-economic groups at a range of income levels; and Local Coastal Program goals to provide the public with quality overnight accommodations and other visitor-serving facilities, which enhance the unique village character; and ensure visitor-serving facilities are compatible with surrounding development (Attachment C).

Below is a summary of the proposed STR regulations. The revisions incorporated since the City Council meeting on May 20, 2024, Planning Commission hearing on August 13, 2024, and City Council meeting on August 26, 2024, are noted with an asterisk (*):

Citywide Cap
The Ordinance sets the maximum number of STRs at 5% of the City’s total dwelling units based on the most current United States Census data (proposed DMMC Section

30.96.050(B)).
• This equates to a citywide cap of 129 STRs based on the 2020 US Census. • The cap will apply citywide in residential and commercial zones and may initially be exceeded if necessary to accommodate existing STRs.
• Once the cap is reached (or exceeded through accommodation of existing STRs), any applications for new STRs would be placed on a waitlist in the order in which the STR permit applications are received. Once contacted by the City, owners on the waitlist will have 30 days to submit an application to the City, or the City will move on to the next owner on the waitlist.

Existing STRs
The Ordinance accommodates existing STR owners who timely register with the City and obtain a STR Permit (proposed DMMC Sections 30.96.020, 30.96.040, 30.96.050,

30.96.080).
• Defines “Existing STR” as a STR in operation prior to adoption of the City’s STR Ordinance where the owner timely registers the existing STR with the City. • *As proposed, the deadline for owners to register Existing STRs is December 31, 2024. Owners must provide at least one of the document types listed on the STR Registry webpage: fully executed rental agreement that identifies STR address; business license indicating STR business at subject property; Federal or State 4 September 9, 2024 Item 08 September 9, 2024 Item 08
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income tax return specifying a STR business at subject property; printed or online advertising or contract indicating actively advertised STR operations at subject property; or other evidence of STR operations at subject property within the last ten years may be submitted for consideration. At least 81% of the Existing STR owners have already provided evidence of their prior STR rental agreements at the registered property. Existing STR owners must register at the following link:
https://www.delmar.ca.us/FormCenter/Planning-6/ShortTerm-Rental-Registry-51 • To date, owners have registered 117 Existing STRs with the City. Attachment E includes the locations of Existing STRs. By comparison, prior data (provided by City consultant, DTA) identified 125 STRs were advertised for rent in Del Mar in June 2023.
• Permit applications for Existing STRs must be submitted within 60 days of the effective date of the Ordinance and will be processed before applications for new STRs (see Attachment G).
• Existing STRs will be accommodated and issued a STR Permit even where the existing operations do not conform with specific requirements applicable to new STRs including:
o May exceed Citywide cap and/or neighborhood caps applicable to the location.

Currently, all existing STRs in the registry are within the identified cap limits. o May continue operating more than one STR per owner (on same lot or separate lots). Currently, there are 95 total owners of the 117 Existing STRs and 17 of the 95 owners own multiple STRs. There are 39 properties with multiple STRs. o May continue operating full-time STRs (even if not in a primary residence). It appears that at least 74% of the existing STRs are not in primary residences based on the limited registry data provided. The 86 owners who provided a separate mailing address (different from the STR address) were considered likely to be operating STRs that are not in primary residences. o May continue operating as a business entity if that is the existing STR ownership in place. Currently, 28 of the 117 registered STRs are owned by businesses including sixteen (16) owned by LLCs, nine (9) owned by Limited Partnerships, and three (3) owned by other business entity types. • Existing STRs are subject to all other applicable provisions of Chapter 30.96 (i.e., maintaining STR permit in good standing and compliance with good neighbor/operation requirements).
• A termination of existing rights will occur upon any of the following:
o The STR permit is not maintained in good standing.
o The STR Permit is not timely renewed prior to the date of expiration or the STR permit is revoked due to non-compliance.
o The transfer of ownership of the STR property, except in situations where a change in ownership occurs and the original owner remains on the title. This allows Existing STR owners to transfer the property title to their families and continue operating as Existing STRs (Section 30.96.030(G)). 5 September 9, 2024 Item 08 September 9, 2024 Item 08
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STR Permits
Consistent with City Council direction since October 2023, the Ordinance requires the property owner to obtain a STR Permit to allow STR use (proposed DMMC 30.96.030). • *Clarifies that rentals for one month, monthly rentals, and longer term rentals are exempt from the STR regulations. Requires a STR Permit for the short-term rental of a dwelling unit, or portion thereof, for dwelling, lodging, or sleeping purposes, for a period of thirty (30) consecutive calendar days or less, unless the dwelling unit, or portion thereof, is exempt as a long-term rental. Proposed DMMC Sections

30.96.020 (Definitions) and 30.96.025 (Exemptions) further explain what constitutes a rental that is subject to the STR regulations and what is exempt.

Attachment G includes a summary of the proposed STR Permit procedures. • STR Permits for new STRs will be issued only to “Owner” with recorded interest in the unit.
• *Clarifies that when the owner is a business entity, the application requirement to demonstrate proof of address will involve providing the City with a current Certificate of Status, or similar documentation demonstrating the business entity is active and in good standing with the State of Formation. • Prohibits subletting for STR use and owner’s tenants are not eligible to obtain a STR Permit.
• Allows Existing STR owners to continue operating the existing STR ownership in place. Existing STRs that have registered to-date include STRs owned by natural persons, personal trusts, family trusts, limited liability companies (LLCs), limited partnerships (LPs), limited liability partnerships (LLPs), and corporations. • Owners of new STRs must be natural persons who live in the unit as their primary residence for more than six (6) months per year.
• *Clarifies new STR owners who meet the primary residence requirement may be personal or family trusts, LLCs, LPs, or LLPs if they are natural persons with at least one member (trust beneficiary or manager/member) who lives in the unit as a primary residence. Owners of new STRs may not be timeshares, business trusts, corporations, general partnerships, or other business entities. • *Clarifies that a new STR Permit is not required for changes in title to the dwelling unit resulting from inheritance or where an original owner under the STR Permit remains an owner under the new title. This simplified the prior draft language by removing references to more specific circumstances (i.e., marriage, divorce, death, or transfers to a trust, LLC, LP, or LLP) and clarifying the intent to allow the original owner to modify property ownership on the title to add or remove members while maintaining continuity of the original owner.
• Limits permit issuance for new STR operations to only one STR per owner; owners with more than one Existing STR would be accommodated.
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• Requires a designated local contact person to act as the responsible person to be available twenty-four (24) hours per day, seven (7) days per week for the purpose of responding within thirty (30) minutes to complaints. • Requires the STR permit holder to obtain and maintain property liability insurance (minimum $1 million policy). The City is not required to be listed as an additional insured on the policy.
• *Requires STR permit holder to indemnify, hold harmless, and defend the City from liability claims.
• Requires STR Permit renewal every two (2) years. Applications for a renewal permit must be submitted prior to the permit expiration date. • Requires notice of STR Permit approval to owners within three hundred (300) feet. • The STR Permit application will include owner authorization for the City to conduct a reasonable inspection for safety compliance. The City may, but is not required to, conduct an inspection (Sections 30.96.050(E)(5) and 30.96.070(F)(3)). • A STR Permit is not required for non-commercial home exchanges (no monetary or other consideration exchanged between parties), the L’Auberge Vacation Villas, Wavecrest Resort Timeshares, or hotels who continue to collect and remit TOT.

Residential Zones
Limits new STRs in residential zones to maintain neighborhood character and maintain housing as primary use of dwelling units (proposed DMMC Section 30.96.060). • Limits new STRs to primary residences occupied by the owner as their principal place of residence for more than six (6) months per year. • Maximum of one STR per lot in R1 zones (R1-40, R1-14, R1-10, R1-10B, R1-5, R1-5B, Carmel Valley Precise Plan) and on lots with one primary unit in R2 and RM zones.
• For lots with two primary units (R2 and RM zones):
o Allows STR use in each unit on two-unit condominium lots. o Limits to one STR for lots with two units and only one owner. o Accommodates existing STR owners with two STRs on their lot. o Prohibits STR use in Accessory Dwelling Units (ADUs) in residential zones per State ADU law and in accordance with the City’s ADU Ordinance No. 1002.

Apartments/Condominiums
Limits STRs in multi-unit condos and prohibits STRs in apartments to preserve the City’s older, more affordable rental units for housing (proposed DMMC Section 30.96.060). • Limits new STRs to primary residences that are occupied by the owner as their principal place of residence for more than six (6) months per year. • Prohibits STRs in existing apartments in the RM-South, RM-West, RM-East, and R2 residential zones to preserve these units for housing. In residential zones, there are nine (9) existing apartment complexes with 321 total units (Attachment D). 7 September 9, 2024 Item 08 September 9, 2024 Item 08
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• Limits STRs in multi-unit condos in the RM-South, RM-East, RM-West, and R2 residential zones to a maximum of 10% of the total primary dwelling units and requires written consent of the homeowner’s association. Creates potential capacity for 45 STRs in the 17 existing condo complexes with 421 total units that range in size from 5-unit to 126-unit complexes (Attachment D). • Prohibits STRs in units that are subject to affordable housing restrictions.

Commercial Zones
Allows STRs in commercial zones (except the Beach Commercial (BC) zone) for consistency with the Coastal Act, which prioritizes visitor serving uses over residential (proposed DMMC Section 30.96.060).
• Limits new STRs to primary residences occupied by the owner as principal place of residence for more than six (6) months per year.
• Allows STR use in the Visitor Commercial (VC) zone.
• Allows STRs in zones that allow residential: Residential-Commercial (RC), Central Commercial (CC), North Commercial (NC), Professional Commercial (PC), and the 941 CDM Specific Plan.
• STR use will be permitted in an ADU in commercial zones only where the ADU is used as a primary residence, which is consistent with State Housing law, the Coastal Act, and the ADU Ordinance adopted by the City Council in December 2023 that is currently pending Coastal Commission certification. • Limits STRs in apartments and condos in commercial zones to 10% of the primary dwelling units (there are no existing apartments in the RC, CC, NC, or PC zones). • Continues to allow visitor accommodation use in the Wavecrest Resort Timeshares, Hotel Specific Plan, 941 CDM Specific Plan, VC Zone and CC Zone per applicable entitlements and zoning.
• Attachment D includes an analysis of STR potential in commercial zones as summarized below:
o VC zone: Allows STR use. The existing Terraces Apartments is a 53-unit complex of older studio apartments (non-conforming use) where STR use would be limited to 10%, which would provide potential capacity for five (5) STRs (consistent with LCP) and maintain the other 48 units as lower cost housing options.
o NC Zone: Allows STR use. Creates potential capacity for four (4) STRs in entitled 50-unit residential project (pending building permit approval and construction), which includes 10 deed-restricted lower income units that are prohibited from use as STRs.
o PC Zone: Allows STR use. There are no existing dwelling units in zone. o 941 Camino del Mar Specific Plan: Existing Specific Plan allows STR use.

Potential capacity for six (6) STRs in 8-unit residential/STR project (pending 8 September 9, 2024 Item 08 September 9, 2024 Item 08
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building permit approval), which includes two (2) deed-restricted low-income units that prohibit STR use.
o CC Zone: Allows STR use. Potential capacity for five (5) STRs where five (5) lots each have one (1) unit accessory to the existing commercial uses: 300 9th Street (at 915 Camino del Mar), 1101 Camino del Mar, 1105 Camino del Mar, 1202 Camino del Mar, and 1126 Camino del Mar. For use as new STRs, units would need to be maintained as primary residences.
o RC zone: Allows STR use. Potential capacity for six (6) STRs on six (6) lots, including three (3) lots that each have a single unit and three (3) lots that each have two (2) units per lot.

Neighborhood Caps
The proposed Ordinance establishes caps to mimic historic use patterns and minimize potential for overconcentration (proposed DMMC Section 30.96.060). • Sets neighborhood concentration limits as percentage of the total STRs allowed per citywide cap. Based on 2020 Census Data, the citywide cap will be 129 at the time of the Ordinance adoption. Attachment E identifies the location of the existing STRs registered to-date and capacity with respect to neighborhood cap. • Attachment F includes the three neighborhood cap areas, identified as North Beach, South Bluff, and Hills.
• Sets a 60% cap in North Beach neighborhood (R1-5B, R1-10B, RM-East, RMWest) – Capacity for 77 STRs. The City has record of 74 existing STRs registered in North Beach. (By comparison, 71 STRs were advertised in June 2023). • Sets a 25% cap in South Bluff neighborhood (R1-40, R2 south of 15th Street, RMSouth, RC) – Capacity for 32 STRs. The City has record of 25 existing STRs registered in South Bluff. (By comparison, 32 STRs were advertised in June 2023). • Sets a 15% cap in Hills neighborhood (R1-40, R1-10, R1-5, RM-Central, northerly R2, CVPP) – Capacity for 19 STRs. The City has record of 18 existing STRs registered in Hills. (By comparison, 19 STRs were advertised in June 2023). • In locations where no concentration limit is set (i.e., North Bluff or commercial zones), STRs would still count towards the citywide cap.

Good Neighbor Provisions/Operating Requirements
The proposed Ordinance communicates expectations for civil conduct and includes provisions to protect public health, safety, and welfare in surrounding neighborhoods (proposed DMMC Sections 30.96.050 and 30.96.070).
• Owner must provide copy of standard rental agreement to confirm inclusion of required content per STR regulations.
• *Clarifies STR advertisements including those posted on or by web- or applicationbased hosting platform or third-party booking vendor websites must include STR Permit number.
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• Owner must acknowledge review of Good Neighbor Policy (Attachment H). • Approved STR permits to be posted on website and notice mailed to owners within three hundred (300) feet.
• Requires rental agreements provide a minimum three (3)-night stay and limit STR occupancy to two (2) persons per bedroom plus two (2) additional persons. • Limits additional guests to visits during the hours of 8:00 a.m. and 10:00 p.m. daily. • Requires primary rental guest to be at least twenty-five (25) years of age, listed on rental application, and present at the STR during the rental period. • Requires rental agreement specify regulations for occupancy, parking, trash, noise limits, and other details.
• *Clarifies the trash disposal includes organic waste and recycling in appropriate containers.
• *Clarifies local contact person must be available twenty-four (24) hours per day, seven (7) days per week to promptly respond to complaints within thirty (30) minutes of receipt from the City, County Sheriff’s Department, or residents. • Requires interior display of STR Permit, TOT rate, and Good Neighbor Policy and requires exterior display of the STR notice and designated twenty-four (24) hour local contact person.
• Limits use to lodging and prohibits events (i.e., weddings, receptions, commercial functions, bachelor/bachelorette parties, and similar events). • Prohibits STR use in non-dwelling units (i.e., tents, garages, or vehicles).

Enforcement
The Ordinance establishes enforcement protocols (proposed DMMC Section 30.96.080). • Identifies violations, penalties, enforcement provisions consistent with citywide enforcement procedures and in accordance with the monetary penalties set forth under State law.
• Sets forth the procedures and required grounds for decisions to suspend or revoke STR permit.
• Identifies the process to appeal a permit denial, suspension, or revocation. • Applies fine amounts specific to the Ordinance per Government Code Section 36900(d).

STR Permit Fee and Transient Occupancy Tax (TOT)
The proposed Ordinance requires payment of a STR Permit Fee and collection/remittance of TOT (proposed DMMC Section 30.96.070). • The STR Permit Fee would establish cost recovery consistent with the City’s fee schedule. The STR Permit Fee will be set at a future date when the costs for implementation and enforcement are known.
• DMMC Chapter 3.12 sets forth the requirements for collection and remittance of TOT for all types of transient occupancy uses citywide. 10 September 9, 2024 Item 08 September 9, 2024 Item 08
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• Under the proposed Ordinance, rentals of a dwelling unit for terms of one month or longer would be expressly exempt from the requirement to collect and remit TOT during rental periods when the dwelling unit, or portion thereof, is operating as a long-term rental including:
o Rentals for a fixed term (e.g., annual) or periodic tenancy (e.g., month-tomonth) with a total rental period of more than 30 days; and o Rentals for a month.

Correspondence
In preparation for the hearing, the City received comments related to the proposed Ordinance that are summarized below. The most frequently asked questions have been regarding the definition of a STR, accommodation of Existing STRs, the citywide and neighborhood caps, the primary residence requirement/limit on ownership types for new STRs, the ability for the City to conduct inspections if needed, the environmental determination, and the plan for implementation and enforcement of the Ordinance. The proposed Ordinance was prepared consistent with the policy direction provided by the City Council. The City Council can modify provisions within the draft Ordinance; however, all regulations must be clearly stated in the written public record when the City Council takes action to introduce the Ordinance.
• Definition of STR: Comments have been received in opposition to the Ordinance definition of STR as a rental of a dwelling unit, or any portion thereof, for dwelling, lodging, or sleeping purposes, for a period of thirty (30) consecutive calendar days or less, unless otherwise exempted. Consistent with City Council direction on August 26, 2024, exemption provisions were incorporated to clarify that rentals of a dwelling unit for one month or longer terms will be expressly exempt from the STR regulations in Chapter 30.96 and requirement to collect and remit TOT. • Accommodation of Existing STRs: Consistent with City Council direction the proposed Ordinance accommodates Existing STRs operating in the City prior to adoption of the Ordinance so long as the Owner timely registers the Existing STR with the City as of the date stated in the Ordinance. As proposed, all Existing STR owners who register their STRs with the City by December 31, 2024, and who submit STR Permit applications within 60 days of the effective date of the Ordinance, will be accommodated as Existing STRs. Existing STRs may exceed the citywide cap and/or neighborhood caps applicable to the location; may continue operating more than one (1) STR per owner (on same lot or separate lots); may continue operating full-time STRs (even if not in a primary residence); and may continue operating as a business entity if that is the existing STR ownership in place.
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• Citywide and Neighborhood Caps: Comments have been received regarding the Ordinance provisions for citywide and neighborhood caps asking for the citywide cap to be set as a hard cap based on the total units in the 2020 US Census, which would not allow for any increase in capacity beyond the 129 unless the Ordinance is formally amended by the City Council. Per City Council direction, calculation of the citywide cap is set at 5% of the City’s total dwelling units based on the most current US Census data. The City also received requests seeking to reduce the neighborhood cap limit for the Hills neighborhood cap boundary (Attachments E and F). These caps included in the Ordinance are consistent with City Council direction. Currently, the number and location of Existing STRs registered with the City have been consistent with what was advertised for STR use in 2023 and with the citywide and neighborhood caps set in the proposed Ordinance (Attachment C).
• Primary Residence Requirement for New STRs: Comments have been received in opposition to the Ordinance provision for owners of new STRs to be natural persons who live in the unit as their primary residence for more than six (6) months per year. Consistent with City Council direction, Existing STRs are exempt from the primary residence requirement and only new STRs that are not in a primary residence are prohibited. This regulatory approach is consistent with the City’s Housing Element and the latest California Coastal Commission policy guidance. • STR Ownership Types: Comments have been received expressing concerns regarding the Ordinance provision relating to allowable ownership types.

Consistent with City Council direction, the existing ownership format for all Existing STRs will be accommodated. This means that all Existing STRs are being accommodated regardless of ownership type. The City Council’s initial direction was to preclude new STRs from being owned by business entities. In consideration of public comment indicating that LLCs can function as primary residences, the City Council directed that the Ordinance also accommodate LLC ownership for new STRs. Staff has since been asked to clarify that new STRs may be owned by LLCs, LPs, and LLPs where they are primary residences. This means that new STRs may be owned by natural persons, personal trusts, family trusts, LLCs, LPs, and LLPs where at least one of the natural persons who is the owner of record occupies the dwelling unit as their primary residence (See definition of “Owner” in Section 30.96.020).
• Inspections: Comments have been received from Existing STR owners in opposition to the Ordinance provision for a reasonable inspection to be conducted for safety compliance. Consistent with City Council direction, each STR Permit application will include the owner’s authorization for the City to conduct a 12 September 9, 2024 Item 08 September 9, 2024 Item 08
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reasonable inspection for safety compliance. The City may, but is not required to, conduct an inspection (Sections 30.96.050(E)(5) and 30.96.070(F)(3)). • Environmental Determination: As noted in the Environmental Impact statement below, the proposed STR regulations were analyzed in accordance with applicable law. The proposed regulations do not provide for any new development or construction. STR is a land use type that operates within an existing dwelling unit.

The proposed regulations accommodate existing STR operations and maintain the existing baseline environmental conditions. The proposed regulations are consistent with the data collected and public testimony in terms of the number of existing STRs, geographic location, and the manner of operations. The Ordinance is creating new citywide STR regulations and a permit process in the Del Mar Municipal Code to explicitly allow for STR use in accordance with specified requirements. There are no proposed changes to the existing regulations or permit procedures for development, and there is no potential for the STR regulations, if approved, to cause a significant effect on the environment or impact to public health and safety.
• Implementation/Enforcement: Implementation and enforcement of the new STR regulations is anticipated to be managed primarily by a third-party vendor. This will include management of the STR Permit issuance process, resources to assist STR Operators and interested persons in the community, monitoring and reporting, and enforcement. It is anticipated that updates will be provided to the City Council on an annual basis. The City Council can adopt amendments to the Ordinance and provide direction to modify the initial implementation protocol.

Next Steps
• Introduce and adopt the Ordinance.
• Submit the adopted Ordinance to the Coastal Commission for certification. • Evaluate third-party vendors for implementation/enforcement of the Ordinance. • Set permit fee to establish cost recovery for implementation of the Ordinance.

FISCAL IMPACT:

There is no fiscal action to be taken by the City Council for this agenda item.

HOUSING IMPACT:

Adoption of the Ordinance will implement the City’s 6th Cycle Housing Element. STRs involve commercial use of a dwelling unit, which has the potential to decrease the availability of housing options if left unregulated. Housing Element Program 5C commits the City to implement measures to reduce current vacancy rates with the intent to maintain dwelling units for long term housing. A unit is recorded as “vacant” when off-site owners report their units as unoccupied with no housing tenant. The proposed STR regulations 13 September 9, 2024 Item 08 September 9, 2024 Item 08
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include measures to maintain dwelling units for long term housing including a citywide cap on the total number of STRs; and require new STRs to be primary residences where the occupants live more than six (6) months per year.

ENVIRONMENTAL IMPACT:

The Ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) (General Rule) because CEQA only applies to projects with the potential for causing a significant effect on the environment. There is no change in baseline environmental conditions or potential to cause a significant effect on the environment. On April 17, 2024, the City’s CEQA consultant, Interwest Group, completed an Initial Study evaluation, which concluded that no environmental factors would be potentially affected by the STR Regulations contemplated by the City Council. The subsequent revisions to the regulations also would not result in a change in baseline environmental conditions or potential to cause a significant effect on the environment. A Notice of Exemption will be prepared identifying that the activity is covered by the common-sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment.

PRIOR CITY COUNCIL REVIEW:

The City Council previously provided the following direction on various policy items to facilitate preparation of draft STR regulations:

City Council Date Action
September 5, 2023 The City Council provided direction to establish a database of existing STRs in operation to inform the City of a reasonable baseline to use for future City Council determinations and understanding of the number of existing STRs to be
accommodated. The City Council also voted unanimously to finalize its twelve Guiding Principles and Objectives.

October 2, 2023 The City Council provided direction on various policy items related to the desired regulatory approach to facilitate preparation of a draft STR regulation framework. Staff solicited input on provisions including, but not limited to, whether there should be citywide and/or neighborhood caps, how to
accommodate existing STRs, whether to limit STR permits to owners, whether to limit ownership to non-business entities, registry of existing STRs, public notice, permit renewal requirements, differences in context of single dwelling unit, twounit, and multiple dwelling unit residential zones and commercial zones, and various options for operational requirements, good 14 September 9, 2024 Item 08 September 9, 2024 Item 08
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neighbor policies, and enforcement. The City Council provided direction by consensus. No formal action was taken.

January 22, 2024 The City Council reviewed the draft STR regulatory framework prepared in accordance with Council direction provided on October 2, 2023, and provided formal direction for staff to prepare draft STR regulations that accommodate existing STRs until the property changes ownership, the STR Permit is not renewed, or the permit is revoked due to con-compliance. (vote 3-2)
May 20, 2024 The City Council reviewed the revised draft STR regulatory framework prepared in accordance with City Council direction provided on January 22, 2024. No formal action was taken.

August 26, 2024 The City Council consensus was to define STR as rental of a dwelling unit, or any portion thereof, for dwelling, lodging, or sleeping purposes, for a period of thirty (30) consecutive calendar days or less, unless otherwise exempted, and direct staff to modify the definition of “long-term rental” and the “Purpose” section, and craft an “Exemptions” section under the STR Ordinance consistent with the Council’s stated intent to expressly exempt rentals of a dwelling unit for terms of one month or longer. No formal action was taken.

NEXUS TO CITY COUNCIL GOALS AND PRIORITIES:

This is a Tier 1 City Council priority special project with the City Council adoption of the STR Regulations Ordinance to be completed by December 2024.

ATTACHMENTS:

Attachment A – Proposed STR Regulations Ordinance
Attachment B – Strikeout-Underline of changes since prior Council review (May 2024) Attachment C – STR Background Summary
Attachment D – Multi-Unit Development Site Analysis
Attachment E – Maps of Existing STR Locations
Attachment F – Map of Neighborhood Cap Locations
Attachment G – Summary of STR Permit Procedure
Attachment H – Good Neighbor Policy
15 September 9, 2024 Item 08 September 9, 2024 Item 08

ATTACHMENT A
ORDINANCE NO. XXXX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

DEL MAR, CALIFORNIA, AMENDING THE DEL MAR
MUNICIPAL CODE (TITLE 30 ZONING CODE) TO
ESTABLISH A NEW CHAPTER 30.96 SHORT TERM
RENTAL REGULATIONS; AND AMENDING THE CITY’S

CERTIFIED LOCAL COASTAL PROGRAM ALL RELATING

TO THE ESTABLISHMENT OF SHORT TERM RENTAL

REGULATIONS AND PERMIT REQUIREMENTS AND
IMPLEMENTATION OF THE 6TH CYCLE HOUSING
ELEMENT PROGRAM 5C (PRESERVE THE CITY’S

EXISTING HOUSING STOCK)
WHEREAS, the term short term rental (STR) means the rental of a dwelling unit, or any portion thereof, for dwelling, lodging, or sleeping purposes, for a period of thirty (30) consecutive calendar days or less, unless otherwise exempted as a rental for a term of at least one month or longer; and
WHEREAS, the purpose of this Ordinance is to create a new Del Mar Municipal Code Chapter 30.96 to establish short term rental regulations that provide a permitting process and reasonable standards regulating the use and operation of STRs with the intent to preserve long term housing; and
WHEREAS, preparation of the STR Regulations Ordinance has been a multi-year process, which has involved studies and consideration of how the availability of dwelling units in the community for short-term visitor use can supplement the availability of visitor accommodations and support visitor-serving uses without sacrificing the City’s need to maintain its long-term housing stock; and
WHEREAS, the State legislature declared that “Housing is a statewide concern”, that California faces a housing crisis, and that local jurisdictions are mandated to comply with applicable State housing laws; and
WHEREAS, the City of Del Mar Community Plan is the General Plan for the City of Del Mar and has an overall goal to “preserve and enhance the special character of Del Mar,” this includes maintaining the “village-like community of substantially single family residential character, a picturesque and rugged site, and a beautiful beach” as well as preserving and enhancing “Del Mar’s special residential character and small town atmosphere with its harmonious blending of buildings and landscape in proximity to a beautiful shoreline”; and
WHEREAS, the City’s certified Housing Element is one of many required components that is part of the Del Mar Community Plan consistent with State laws applicable to General Plans; and
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WHEREAS, the certified Housing Element identifies programs and resources required for the preservation, improvement, and production of housing to meet the existing and projected needs of its population which requires the creation of additional affordable housing stock; and
WHEREAS, the proposed amendments to the Del Mar Municipal Code and Local Coastal Program (LCP) are required to implement the City’s 6th Cycle Housing Element commitments identified in Program 5C (Preserve the City’s Existing Housing Stock); and WHEREAS, the City of Del Mar is located entirely within the “Coastal Zone” boundary and is therefore subject to compliance with the California Coastal Act, including the required submittal of all amendments to the City’s certified LCP land use policies and zoning regulations for certification by the California Coastal Commission consistent with the Coastal Act; and
WHEREAS, City staff engaged in a multi-year public outreach process to encourage public participation for the formulation of guiding principles and objectives, draft regulations, and this Ordinance, which included articles posted on the City’s website, multiple announcements made in the City’s weekly updates, and multiple announcements made during public meetings including the Planning Commission and City Council meetings; and
WHEREAS, on September 5, 2023, the City Council provided direction to staff to establish a database of existing STRs in operation within the last ten (10) years to inform the City of a reasonable baseline to use for future City Council determinations of the number of existing STRs to be accommodated; and
WHEREAS, an online registry was established on the City of Del Mar website and beginning September 8, 2023, multiple newsflash articles were published and distributed in the City’s weekly update and in all Agenda Reports to the City Council and Planning Commission relating to short term rentals from that date to the present to encourage existing STR owners seeking to continue their existing operations to add their properties to the database; and
WHEREAS, on January 22, 2024, the City Council provided policy direction to accommodate existing STRs under the new STR regulations where the existing STR owners timely register with the City and obtain a STR Permit to allow their existing STR operations to exist subject to compliance with the STR regulations, as applicable, until the property changes ownership, the STR Permit is not renewed, or the permit is revoked for non-compliance; and
WHEREAS, this STR Ordinance will accommodate existing STR owners operating in the City of Del Mar prior to adoption of the Ordinance where the owner timely registers the existing STR with the City by December 31, 2024;
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WHEREAS, STR Permit applications for existing STRs must be submitted within sixty (60) days of the effective date of the Ordinance which will be the date the Coastal Commission grants final certification of the Ordinance; and WHEREAS, the Notice of Availability and Notice of Planning Commission public hearing for the Amendments to the Community Plan, Zoning Ordinance, and LCP was posted in the Coast News on July 26, 2024, and individual mailed notices were sent to all interested parties who participated by submitting written correspondence, requested notification, and/or submitted speaker slips on the topic of short term rentals in the public meetings of the Planning Commission and City Council held between January 2023 through September 2024; and
WHEREAS, on August 13, 2024, the Planning Commission recommended approval of the CEQA determination and recommended the City Council adopt the amendments and modify the definition of short-term rentals to define STRs as less than one month and define what that means; and
WHEREAS, on August 23, 2024, the notice of City Council public hearing was published in the San Diego Union Tribune and mailed notices were sent to all interested parties including those who participated through the Planning Commission hearing on August 13, 2024; and
WHEREAS, as part of Item 17 on the August 26, 2024, City Council meeting, the City Council reviewed options for definitions of short-term rental, long-term rental, and exemptions for monthly rentals, and the Council expressed a desire to exempt rentals for a month from the STR regulations and the requirement to collect and remit Transient Occupancy Tax (TOT); and
WHEREAS, on September 9, 2024, the City Council held a duly noticed public hearing for introduction of the Ordinance; and
WHEREAS, adoption of this Ordinance will amend the Del Mar Municipal Code Title 30 (Zoning) and certified Local Coastal Program to establish short term rental regulations in a new Del Mar Municipal Code Chapter 30.96 and implement the 6th Cycle Housing Element Program 5C commitment for preservation of existing stock which is consistent with the California Coastal Commission policy guidance to limit new short term rentals to primary residences.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Del Mar, California, based on substantial evidence in the whole of the administrative record, hereby finds and declares the following:

SECTION ONE: The above stated Recitals are true and correct and are incorporated by reference into this action.
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SECTION TWO: That a new Chapter 30.96 be added to the Del Mar Municipal Code and the City’s Local Coastal Program as follows:

Chapter 30.96 – Short-Term Rentals

30.96.010 – Purpose
The purpose of this Chapter is to provide a permitting process and reasonable standards regulating the use and operation of Short-Term Rentals (STRs) for visitor lodging involving timeframes of thirty (30) consecutive days or less, with the intent to maintain long-term housing stock in the City of Del Mar; honor the existing policies in the Del Mar Community Plan; maintain the residential character of neighborhoods in residential zones; honor the tradition of vacation rentals during the summer, holiday, and horseracing seasons; ensure protection of the public health, safety, and general welfare; ensure the City’s natural resources will be preserved and protected; ensure STRs will not overburden public improvements, facilities, and services; minimize adverse impacts to adjacent private properties and the surrounding neighborhood; establish distribution and concentration of STRs throughout the community; establish enforcement protocols; and ensure the regulation of STRs is, at a minimum, revenue-neutral to the City. For purposes of this Chapter, long-term rentals (including rentals for a fixed-term or periodic tenancy and rentals for a month), and home exchanges are exempt from compliance with the provisions of this Chapter.

30.96.020 – Definitions
For purposes of Chapter 30.96, the following definitions shall apply:

Accessory Dwelling Unit (ADU) shall have the same meaning as in Section

30.04.010(C) of this Municipal Code.

Bedroom shall be defined as an enclosed space within a dwelling unit that is designed for or could be used for sleeping and has or is designed to have a door permitting complete closure and separation from the kitchen, living room, and hallway areas.

Designated Local Contact Person means the person designated by the Owner to be available twenty-four (24) hours per day, seven (7) days per week, for the purpose of responding within thirty (30) minutes to complaints regarding the condition, operation, and/or conduct of occupants and guests of the STR, and taking remedial action to resolve any such complaints.

Existing Short-Term Rental (Existing STR) means a STR operating in the City prior to adoption of the City’s STR Ordinance where the Owner timely registered the STR with the City as of the date stated in the Ordinance. A STR shall cease to be protected as an Existing STR upon any of the following: the transfer of ownership of the STR property, the STR Permit is not maintained in good 19 September 9, 2024 Item 08 September 9, 2024 Item 08
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standing, including a STR Permit that is not timely renewed prior to the permit expiration date, or the STR Permit is revoked due to non-compliance with any provision of this Chapter. A change in title that is processed in accordance with Section 30.96.030(G) shall not be considered a transfer of ownership that would terminate rights to an Existing STR. Unless otherwise expressly stated herein, an Existing STR is subject to all applicable provisions of this Chapter.

Home Exchange means an agreement between parties for exclusive use of each other’s homes for dwelling, lodging, or sleeping purposes, for a set period of time, with no monetary exchange or other consideration exchanged between the parties.

Long-Term Rental means the rental of a dwelling unit, or any portion thereof, for dwelling, lodging, or sleeping purposes, subject to a rental agreement, for (i) a fixed-term (e.g., annual) or periodic tenancy (e.g., month-to-month), with a total rental period of more than thirty (30) consecutive calendar days; or (ii) a rental for a month as described in Section 30.96.025 of this Chapter.

Owner means the natural person(s) who is/are the owner(s) of record of the dwelling unit, at least one of whom occupies the dwelling unit at which the STR will operate as their Primary Residence, unless identified as an Existing STR by the City. All owner(s) of record of the dwelling unit are required to sign the STR Permit application and shall be held jointly and severally liable for any violation(s) of this Chapter. For purposes of this Chapter, “Owner” may also include:
(i) A personal trust or family trust whose beneficiaries consist solely of natural persons and the trustee(s) of such trust, so long as at least one beneficiary or trustee of the trust occupies the dwelling unit at which the STR will operate as their Primary Residence. If the dwelling unit is held in a personal or family trust, each trustee must sign the STR Permit application, and shall be held jointly and severally liable for any violation(s) of this Chapter; and
(ii) A limited liability company (LLC), limited partnership (LP), or limited liability partnership (LLP) owned by natural persons (not business entities), so long as at least one manager/member occupies the dwelling unit at which the STR will operate as their Primary Residence. Each manager/member of the LLC, LP, or LLP must sign the STR Permit application, and shall be held jointly and severally liable for any violation(s) of this Chapter.

Unless identified as an Existing STR by the City, the term “Owner” does not include a dwelling unit that is fully or partially owned as a timeshare, a business trust, corporation, general partnership, or any other business entity other than a LLC, LP, or LLP.
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Primary Residence means a dwelling unit owned and occupied as the Owner’s principal place of residence, where the Owner lives more than six (6) months per year. For purposes of this Chapter, an Owner can only have one Primary Residence at any given time.

Short-Term Rental (STR) means, unless otherwise exempt under Section

30.96.025 of this Chapter, the rental of a dwelling unit, or any portion thereof, for dwelling, lodging, or sleeping purposes, for a period of thirty (30) consecutive calendar days or less. For purposes of this Chapter, Home Exchanges and LongTerm Rentals (each defined by this Chapter) are not considered STRs, and are expressly exempt from the requirements of this Chapter under Section 30.96.025.

30.96.025 – Exemptions
A. The following uses are exempt from the provisions of this Chapter:

1. Home Exchanges, as that term is defined in Section 30.96.020; and

2. Long-Term Rentals, as that term is defined in Section 30.96.020, to include (i) rentals for a fixed-term (e.g., annual) or periodic tenancy (e.g., monthto-month) totaling more than thirty (30) consecutive calendar days; and (ii) rentals for a month, as described below.

For purposes of this Section, a “rental for a month” must meet all of the following requirements to be considered exempt from the provisions of this Chapter:
a. The rental of the dwelling unit, or portion thereof, is rented for a month. This includes a rental period that starts at the beginning of a calendar month and goes through the end of the same calendar month, or a rental period that starts on a certain day within the calendar month and goes through the same day of the subsequent calendar month;
b. The rental of the dwelling unit, or portion thereof, is reserved to the same renter for the entire rental period of a month; and c. Should the renter leave the dwelling unit, or the rented portion thereof, prior to the expiration of the monthly rental period, then the dwelling unit, or the rented portion thereof, shall not be re-rented for a new rental period prior to the expiration of the monthly rental period. If the dwelling unit, or the rented portion thereof, is re-rented prior to the expiration of the monthly rental period, then the rental of the dwelling unit, or the rented portion thereof, is no longer exempt from the provisions of this Chapter and becomes subject to compliance with the requirements of this Chapter.
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An Owner may choose to rent their dwelling unit, or portion thereof, both as a STR subject to compliance with this Chapter, and as a Long-Term Rental exempt from the provisions of this Chapter, so long as the Owner applies for and obtains a valid and current STR Permit issued by the City in accordance with the terms of this Chapter. During those rental periods in which the dwelling unit, or portion thereof, is rented as a STR and is not considered exempt under this Section, the Owner shall be subject to all requirements of this Chapter, including the requirement to collect and remit Transient Occupancy Tax to the City.

B. In addition to an exemption from the provisions of this Chapter, the above uses under (A)(1) and (A)(2) of this Section are further exempt from the requirement to collect and remit Transient Occupancy Tax to the City in accordance with Chapter

3.12 of this Municipal Code.

30.96.030 – When a Short-Term Rental Permit is Required A. Any person or entity operating a STR in the City of Del Mar must have a valid STR Permit issued by the City pursuant to Section 30.96.050 of this Chapter.

Notwithstanding Section 30.96.060(A) and (B), the following properties have existing entitlements for visitor accommodations that are subject to the requirement to collect and remit Transient Occupancy Tax under Chapter 3.12 of this Municipal Code, but are not subject to the requirement to obtain a STR Permit pursuant to this Chapter:

1. Hotels in the Visitor Commercial Zone including the Best Western Premier (720 Camino del Mar), Del Mar Beach Hotel (1702 Coast Boulevard), Hotel Indigo (710 Camino del Mar), Hotel L’Auberge (1540 Camino del Mar), Les Artistes (944 Camino del Mar), and Secret Garden Inn (1140 Camino del Mar);

2. L’Auberge Vacation Villas (1570 Camino del Mar) in the Hotel Specific Plan Zone; and

3. Wavecrest Resort Timeshares (1400 Ocean Avenue) in the R2 Zone.

B. A STR Permit will only be issued to the Owner of the dwelling unit.

C. No person shall rent, offer to rent, or advertise a STR without a valid STR Permit.

D. A STR Permit shall be valid for a period of two (2) years from the date of issuance, and must be timely renewed prior to the STR Permit expiration date every two (2) years thereafter to maintain a valid STR Permit for STR operations. 22 September 9, 2024 Item 08 September 9, 2024 Item 08
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E. The subletting of a STR is prohibited. Only an Owner with a valid STR Permit issued by the City is permitted to rent out a dwelling unit or portion thereof as a STR.

F. A STR Permit shall not be transferred, sold or assigned to any other person or entity. Upon transfer of ownership of a dwelling unit at which an STR operates, the STR Permit shall automatically terminate and no STR may be operated at the dwelling unit until a new STR Permit is issued by the City.

G. A new STR Permit is not required for changes in title to the dwelling unit resulting from inheritance or where an original Owner under the STR Permit remains an Owner under the new title. In such an event, notice of the change of title shall be provided to the City within thirty (30) days of such transfer.

30.96.040 – Application Requirements
An application for a STR Permit, or renewal thereof, shall be filed on a form provided by the City, shall be signed by the applicant(s) under penalty of perjury, and must include all of the following information, which shall be updated when there is any change to ensure that the City has current information on file at all times relating to the STR:

A. Legal name, address, telephone number, and email address of each Owner and the address and Assessor’s Parcel Number (APN) of the STR.

1. Each Owner of the dwelling unit is required to sign the STR Permit application and acknowledge that (i) all information contained in the STR Permit application is true and correct; (ii) each Owner and the Designated Local Contact Person have reviewed, understand and are familiar with the requirements of this Chapter; (iii) each Owner and the Designated Local Contact Person are responsible for ensuring compliance with this Chapter; (iv) failure to comply with this Chapter and all applicable provisions of the Del Mar Municipal Code may result in suspension and/or revocation of a STR Permit; and (v) each Owner may be held jointly and severally liable for any violation(s) of this Chapter.

2. If the dwelling unit is held in a personal or family trust, the trustee(s) must sign the STR Permit application and must acknowledge the information is true and correct in accordance with Section 30.96.040(A)(1).

3. If the dwelling unit Owner is a LLC, LP, LLP, or other form of business entity operating as an Existing STR, each manager/member of the entity must sign the STR Permit application and must acknowledge the information is true and correct in accordance with Section 30.96.040(A)(1).

4. Each Owner of a STR, or multiple Existing STRs, operating in the City shall disclose the name(s) and contact information for each person holding the 23 September 9, 2024 Item 08 September 9, 2024 Item 08
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legal, equitable, and/or beneficial interest of each of their respective STR ownership properties, as applicable.

5. Except for Existing STRs, documentation that the STR will operate as a Primary Residence shall be demonstrated by providing proof of the Owner’s STR address as follows:
a. Proof of address on at least two (2) of the following documents:
i. Federal and State tax returns
ii. Bank account
iii. Vehicle registration
iv. Driver’s license
v. Voter registration
vi. Employment records
vii. Homeowner’s tax exemption
b. If the Owner is a LLC, LP, LLP, or other form of business entity operating as an Existing STR, the Owner shall demonstrate proof of address by providing a current Certificate of Status, or similar documentation demonstrating the business entity is active and in good standing with the state of formation.

6. Written consent from the homeowners’ association (HOA), if applicable, or acknowledgement that there are no CC&Rs, private covenants, deed restrictions, or any other governing documents that prohibit or limit STR use of the dwelling unit.

B. Commencing from the effective date of this Ordinance, the Owner of an Existing STR, which meets the definition of an Existing STR as defined in Section

30.96.020 of this Chapter, will be eligible to apply for a STR Permit. The Owner of an Existing STR must submit and have all STR Permit application requirements to the City within sixty (60) days following the effective date of this Chapter to be considered an Existing STR.

C. Legal name, address, telephone number, and email address of the Designated Local Contact Person, if different from the Owner, and written consent from the Designated Local Contact Person to act as the responsible person designated by the Owner to be available twenty-four (24) hours a day, seven (7) days a week, for the purpose of responding within thirty (30) minutes to complaints regarding the condition, operation, and/or conduct of occupants and guests of the STR and taking remedial action to resolve any such complaints.

D. Owner shall provide a Deed or Title Report for the STR property to confirm ownership interest in the property.
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E. STR Rental Agreement and Site-Specific Details.

1. Owner shall provide a copy of their standard STR rental agreement, which shall, at a minimum, include the following information: STR Permit number, STR address and information regarding the maximum STR occupancy, parking capacity, noise restrictions, trash, organics, and recycling disposal requirements, and rules and regulations that will be distributed to STR occupants and acknowledgment of receipt and review of the City’s Good Neighbor Policy.

2. Site plan and/or photos showing the number and location of designated offstreet parking spaces for the exclusive use of the STR.

3. Floor plan(s) showing the layout of the dwelling unit, including all bedrooms and bathrooms; and the location of fire extinguishers, smoke alarms, and carbon monoxide alarms.

4. Acknowledgement that the STR Permit does not authorize STR lodging in non-dwelling units such as garages or vehicles (e.g., recreational vehicles, motor homes, travel trailers, truck campers, tent trailers), treehouses, tents and other temporary shelters.

5. Authorization for the City to conduct an inspection of the STR for safety compliance in accordance with Section 30.96.070(F). The Owner shall allow the City to inspect the STR and property at any time prior to issuance of a STR Permit and/or during the operation of the STR for the purpose of making a reasonable inspection to observe and enforce compliance with applicable laws, rules and regulations of the STR, including the provisions of this Chapter. The City may, but is not required to, conduct an inspection of the STR and property pursuant to the requirements of this Section.

F. Evidence of property liability insurance in the amount of at least One Million Dollars ($1,000,000), combined single limit, which insurance shall be maintained during the entire term of any STR Permit issued by the City. Evidence of insurance renewal must be provided to the City before expiration of the policy.

G. Each Owner shall jointly and severally agree to indemnify, hold harmless, and defend the City and its officials, employees and agents from any and all liability, actions, claims, damages, costs, and expenses of any kind whatsoever, including reasonable attorneys’ fees and costs, which may be asserted by any person or entity arising from or relating to the issuance of a STR Permit or operation of a STR.

H. Any other information as the City Manager, or designee, deems reasonably necessary to administer this Chapter.
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I. Payment of STR Permit application fee or renewal fee, as applicable, for initial application or STR Permit renewal in accordance with the fee schedule established by the City Council, which may be amended from time-to-time.

30.96.050 – Permit Issuance

A. STR Permits shall be issued on a first-come, first-served basis, except that an Existing STR Owner, which applies for a STR Permit in accordance with Section

30.96.040(B), shall be granted priority to obtain a STR Permit.

1. Notwithstanding the permit issuance and locational requirements applicable to new STRs under Chapter 30.96, Existing STRs shall be accommodated as allowable uses in accordance with a valid STR Permit unless a termination of existing rights occurs upon any of the following: the transfer of ownership of the STR property, the STR Permit is not maintained in good standing, including a STR Permit that is not timely renewed prior to the date of STR Permit expiration, or the STR Permit is revoked due to non-compliance with any provision(s) of this Chapter. A change in title that is processed in accordance with Section 30.96.030(G) shall not be considered a transfer of ownership that would terminate rights to an Existing STR.

2. Notwithstanding Sections 30.96.060(A)(3)(a), (A)(4) and (A)(5) of this Chapter, Existing STRs shall be accommodated as allowable uses with a valid STR Permit, regardless of whether the existing operations are nonconforming with respect to operation of more than one STR (on the same lot or separate lots), and/or whether the operations are not within a Primary Residence.

B. The maximum number of STR Permits issued by the City shall be limited to not more than five percent (5%) of the total number of dwelling units located in the City based on the most current United States Census data.

1. STR Permits for new STRs shall be restricted to one (1) per Owner and Existing STRs shall be restricted in accordance with Section

30.96.050(B)(3). Once the maximum allowable number of STR Permits has been issued by the City (including Existing STRs and new STRs), the Owner of any applications submitted that would exceed the cap identified in this Section shall be placed on a waitlist that will be established based on the order the applications are filed and applications will be processed in the order in which the applications are received.

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(30) days from the date of notification by the City to submit a STR Permit application for consideration. If the person(s) contacted by the City do not submit a STR Permit application to the City within the required thirty (30) day period, that person(s) will be removed from the waitlist and the City will move on to notifying the next person appearing on the City’s STR Permit waitlist.

3. The Owner of an Existing STR may request a separate STR Permit for each Existing STR in operation by the Owner and registered with the City as of December 31, 2024 as stated in the STR Ordinance. If the number of Existing STRs exceeds the cap identified by this Section, then no additional STR Permits shall be issued by the City for new STRs until available capacity is reached within the cap through attrition (including, but not limited to, when existing rights are terminated for Existing STRs in accordance with Section 30.96.050(A)(1)).

C. New STR Owners may not include a dwelling unit fully or partially owned as a timeshare, a business trust, corporation, limited partnership, general partnership, or other business entity other than a LLC, LP, or LLP.

D. A STR Permit shall be issued by the City if the applicant meets the conditions and requirements of this Chapter 30.96.

E. A STR Permit shall not be issued by the City if:

1. The maximum number of STR Permits issued by the City already meets or exceeds the Citywide cap on STRs or exceeds the maximum number of permits allowed per Owner as established by Section 30.96.050(B).

2. The STR is a new STR, which is proposed in a prohibited location as set forth in Section 30.96.060 of this Chapter, or in a location that would exceed the neighborhood cap on STRs established by Section 30.96.060(A)(5).

3. The Owner has a pending enforcement action by the City for any violation of the Del Mar Municipal Code relating to the operation of a STR, unless the approval is required to resolve the enforcement action.

F. Following the issuance of a STR Permit, the City will provide written, mailed notice of the STR Permit approval to all property owners located within 300 feet of the STR. Such notice shall include the address of the STR, number of bedrooms available for rent, number of available on-site parking spaces, and contact information for the STR’s Designated Local Contact Person.

G. STR Permits may be suspended, revoked, or not renewed by the City in accordance with Section 30.96.080 of this Chapter.
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30.96.060 – STR Locational Requirements
A. Residential Zones.

1. STRs may be permitted in the following residential zones:
a. Single dwelling unit zones
Very low Density Residential (R1-40)
Modified Low Density Residential (R1-14)
Low Density Residential (R1-10)
Low Density Residential-Beach (R1-10B)
Medium Density Single Family Residential (R1-5)
Medium Density Single Family Residential-Beach (R1-5B)
Carmel Valley Precise Plan (CVPP)
b. Multiple dwelling unit zones
Medium Density Single-Mixed Residential-East (RM-East)
Medium Density Mixed Residential-West (RM-West)
Medium Density Mixed Residential-Central (RM-Central)
Medium Density Mixed Residential-South (RM-South)
High Density Mixed Residential (R2)

2. New STRs that are not within a Primary Residence shall be prohibited.

3. STRs are a prohibited use within:
a. Multi-dwelling unit rental apartment development located in residential zones.
b. Any dwelling units that are subject to deed restrictions or affordable housing covenants that limit rental of the unit to housing for specific income-restricted households.
c. An Accessory Dwelling Unit located in residential zones. d. Non-dwelling units including, but not limited to, garages or vehicles or temporary shelters such as tents.

4. Except for Existing STRs with a valid STR Permit, the maximum number of STRs per lot shall be restricted to:
a. Maximum of one (1) STR per lot developed with one dwelling unit, including lots developed with one primary dwelling unit and ADU development.
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b. Maximum of one (1) STR per Owner on a lot that is developed with two dwelling units, including lots developed with two primary dwelling units and ADU development.
c. Maximum of ten percent (10%) of the total primary dwelling units on a lot developed with multi-unit condominium development (three or more units). Lots with condominium development must provide documentation of written consent to operate a STR by the homeowner’s association (HOA).

5. The total number of STRs permitted shall be further limited as follows to minimize the potential for overconcentration:
a. A maximum of sixty percent (60%) of the total number of STRs may be located in the North Beach neighborhood, which includes the R1- 5B, R1-10B, RM-East and RM-West zones.
b. A maximum of twenty-five percent (25%) of the total number of STRs may be located in the South Bluff neighborhood, which includes the R1-40, R2, RM-South, and RC zones.
c. A maximum of fifteen (15%) of the total number of STRs may be located in the Hills neighborhood, which includes the R1-5, R1-10, R1-14, R1-40, and RM-Central zones and the northerly R2 zone located north of 15th Street.

B. Commercial Zones.

1. STRs may be permitted within the following commercial zones:

Residential-Commercial (RC)
Central Commercial (CC)
North Commercial (NC)
Professional Commercial (PC)
Visitor Commercial (VC)
941 Camino del Mar Specific Plan (941SP)

2. STRs in commercial zones are subject to the requirements in Section

30.96.060(A)(2), (A)(4) and (A)(5) of this Chapter.

3. STR use is permitted in an Accessory Dwelling Unit (ADU) subject to the regulations in Chapter 30.91 of this Municipal Code, only where the ADU is used as a Primary Residence.

4. STRs are a prohibited use within:
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a. The Beach Commercial (BC), Public Facilities (PF), Public Parkland (PP), Railroad Right-of-Way (RR), and Floodway zones.
b. Any dwelling units that are subject to deed restrictions or affordable housing covenants that limit rental of the unit to housing for specific income-restricted households.
c. Non-dwelling units including, but not limited to, garages or vehicles (e.g., recreational vehicles, motor homes, travel trailers, truck campers, tent trailers), treehouses, or temporary shelters such as tents.

30.96.070 – Operating Requirements
STRs shall comply with all of the following operating requirements:

A. Owner shall ensure that STR occupants and guests comply with all federal, state, and local laws, rules, and regulations including local regulations specific to noise, trash disposal, parking, coastal resources, and disclosure, inclusive of the following:

1. Noise Control.
a. It shall be unlawful and shall constitute a public nuisance for any Owner of a STR to cause, allow or permit the emission or transmission of any loud noise from any sound-making equipment or sound-amplifying device to occur or be maintained at a STR, which may include, but is not limited to, the following: yelling, screaming, shouting, or other disturbing noises which unreasonably interfere with the peace and quiet of the nearby residents or members of the public. Owner shall ensure that STR occupants and guests comply with the noise provisions set forth in Del Mar Municipal Code Chapter 9.20 (Noise Regulations). DMMC Section

9.20.090 specifies that any noise that is plainly audible at a distance of fifty (50) feet between the hours of 10:00 p.m. and 8:00 a.m. is considered a prima facie violation.
b. STRs are for overnight lodging. Hosting of weddings, receptions, corporate events, commercial functions, bachelor or bachelorette parties, and any other similar events or gatherings that have the potential to cause a public nuisance are strictly prohibited. c. Guest hours at STRs shall be limited from 8:00 a.m. to 10:00 p.m. daily.
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2. Trash Disposal. Trash, organic waste and recycling shall not be left or stored within public view, except in the appropriate container at a location that is designated for collection from 4:00 p.m. on the day prior to trash pick-up until up to 12:00 p.m. on the day following the day designated for pick-up. All trash and recycling shall be in approved receptacles pursuant to Del Mar Municipal Code Chapter 11.20 (Management of Solid Waste).

3. Parking. Owner shall limit the number of vehicles at the STR to the number designated in the STR Permit, which shall be determined by the City at the time of permit issuance based on the number of available on-site parking spaces. All garage, driveway, and designated on-site parking spaces shall be made available for the vehicles of STR occupants and guests. Vehicles shall not impede access to sidewalks and neighboring properties or driveways.

4. Coastal Resource Protection. The coastal resource protections in the California Coastal Act Chapter 3, Article 6, Section 30240 (Cal. Pub. Res.

Code Section 30240) and the City’s certified Local Coastal Program are not to be superseded or lessened in any way through implementation of the Chapter 30.96 STR regulations. The Owner shall disclose if the property contains environmentally sensitive habitat areas, and shall identify STR operational requirements to avoid potential impacts to coastal resources.

5. Disclosure of Site-Specific STR Requirements and Contact Information. a. The primary STR occupant listed on the STR rental application and present at the STR during the STR rental period must be at least twenty-five (25) years of age, provide the Owner with a telephone number, and shall be accessible to the Owner or Local Designated Contact Person by telephone at all times during the STR rental period.
b. Interior Display of STR Permit. Owner shall affix the valid STR Permit provided by the City, which shall include reference to the City’s Good Neighbor Policy and Transient Occupancy Tax rate, for interior display on the inside of the main entry door of the STR. c. Exterior Display of STR Notice. Owner shall affix a sign on the exterior of the STR during operation, at a minimum size of 8.5 inches by 11 inches, identifying the STR Permit number, name and contact information for the Designated Local Contact Person, the maximum number of occupants and guests permitted at the STR, and the maximum number of vehicles allowed at the property. The notice shall be located on-site in plain view of the general public and/or common areas and shall be maintained in good condition. 31 September 9, 2024 Item 08 September 9, 2024 Item 08
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d. Signs advertising availability of the STR for rent are not permitted on the property.

B. Minimum Night Stay. STRs shall have a minimum night stay of three (3) consecutive calendar nights.

C. Overnight Occupancy. Owner shall limit overnight STR occupancy to a specific number of occupants, not to exceed two (2) persons per Bedroom plus two (2) additional persons per dwelling unit. All other applicable occupancy laws shall apply.

D. Avoidance of Public Nuisance. Owner shall ensure that the STR occupants and/or guests do not create a public nuisance. Owner shall ensure that any unreasonable noise disturbances, unruly gatherings, disorderly conduct, or other violations are timely abated.

E. Prompt Response to Complaints. Owner and/or the Designated Local Contact Person must be available twenty-four (24) hours per day, seven (7) days per week, to respond to complaints. Complaints received from the City, the Sheriff’s Department, or a resident must be addressed within thirty (30) minutes of receipt of the complaint. It is not intended that an Owner or Designated Local Contact Person act as a peace officer or place themselves in an at-risk situation. In follow up, Owner shall provide documentation to the City on what steps were taken to mitigate the issue. Failure to timely respond to complaints is grounds for enforcement as set forth in Section 39.96.080 of this Chapter.

F. Safety Compliance.

1. The STR property must meet basic life safety requirements, including but not limited to, maintaining operable smoke alarms and carbon monoxide alarms, fire extinguishers, and first aid kits.

2. All Bedrooms within a STR shall meet all applicable California Building Code life safety requirements.

3. Owner shall permit the City to inspect the STR prior to the issuance of a STR Permit and/or for the purpose of making a reasonable inspection to observe and enforce compliance with the provisions of Chapter 30.96.

G. Advertisements. All STR advertisements, including those posted on or by web- or application-based hosting platform or third-party booking vendor websites, must include the STR Permit number provided by the City.
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H. Record Keeping, Audit. STR Owner shall maintain records related to use and occupancy of the STR for the purpose of inspection and/or audit to demonstrate compliance with Chapter 30.96.

I. Payment of Transient Occupancy Tax. Unless otherwise exempt under Section

30.96.025 of this Chapter, Owner shall comply with all provisions of Del Mar Municipal Code Chapter 3.12 concerning the collection and remittance of Transient Occupancy Tax (TOT) for STR rentals. The TOT calculation shall include cleaning fees, resort fees, and all other fees collected as part of the total rent charged for the STR. If the STR Owner uses a web- or application-based hosting platform or third-party booking vendor, the hosting platform or booking vendor shall be considered an agent of the STR Owner for purposes of collecting and remitting the TOT to the City.

30.96.080 – Enforcement
A. It shall be unlawful for any person to fail to comply with any of the requirements of this Chapter or with any standards/conditions of a STR Permit, or to operate a STR within the jurisdiction of the City contrary to or in violation of any of the provisions of this Chapter, any applicable provisions of this Municipal Code, or any other applicable laws, rules, and regulations.

B. Any person who violates any provision of this Chapter shall be subject to the fine amounts set forth in Government Code Section 36900(d), as that Section may be amended from time to time.

C. Violations of this Chapter may be enforced by any method allowed in Del Mar Municipal Code Title 1 (General Provisions), Title 30 (Zoning Regulations), or any other applicable enforcement mechanism available to the City.

D. Suspension or Revocation of STR Permit. In addition to any other remedy provided by this Chapter, a STR Permit may be suspended or revoked by the City Manager, or designee pursuant to this Section.

1. The decision shall be based on at least one of the following grounds:
a. A material misrepresentation, false or misleading information was included on the application or renewal application for a STR Permit. b. A violation of any applicable provision of the Del Mar Municipal Code or other applicable law relating to the operation of the STR. c. An authorized official has given notification of existing health or safety violations on the STR property, or non-compliance with applicable laws, rules or regulations relating to fire, building, health or safety on the STR property.
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d. An applicant or STR Permit holder is delinquent in the payment of any outstanding fees, assessments or taxes owed to the City related to any property located in the City that is owned by the applicant, including, but not limited to, Transient Occupancy Taxes (TOT).

2. If a STR Permit is revoked, the Owner shall not operate a STR at the property for a period of twelve (12) months from the date of such revocation; and no STR Permit that is revoked may be transferred to any other person or entity to operate a STR at the property during such period of revocation.

3. The appeal procedures for the denial, suspension or revocation of a STR Permit are as follows:
a. A STR Permit applicant or STR Permit holder may request an administrative hearing to appeal the denial, suspension or revocation of a STR Permit by the City. The request for a hearing shall be submitted to the City Clerk within fifteen (15) days from the date the denial, suspension or revocation of the STR Permit is provided in writing.
b. The City Manager shall designate a fair and impartial administrative hearing officer to determine whether to uphold the City’s decision to deny, suspend or revoke the STR Permit. Compensation for the hearing officer, if any, shall be paid by the City.
c. An administrative hearing shall be set for a date that is not sooner than thirty (30) days and not more than sixty (60) days from the date the request for the hearing is filed with the City, unless extended in writing by the City and the appellant. The appellant shall be notified of the time and place set for the hearing at least fifteen (15) days prior to the date of the hearing, unless the hearing date has been expedited.
d. The City and the appellant shall each submit all documents relating to the denial, suspension or revocation of the STR Permit that the respective party intends to discuss during the administrative hearing to the hearing officer and the other party at least seven (7) days in advance of the hearing date.
e. At the administrative hearing, the hearing officer shall only consider evidence that is relevant to determine whether the denial, suspension or revocation of a STR Permit is warranted. Courtroom rules of evidence shall not apply. Relevant hearsay evidence and written reports may be admitted whether or not the speaker or author 34 September 9, 2024 Item 08 September 9, 2024 Item 08
Ordinance No. XXXX

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is present to testify, if the hearing officer determines that the evidence is reliable. Admission of evidence and the conduct of the hearing shall be controlled by the hearing officer in accordance with the fundamentals of due process. The hearing officer may limit the total length of the hearing to one (1) hour, at the hearing officer’s discretion, and shall allow the appellant at least as much time to present its case as is allowed the City.
f. The appellant shall be given the opportunity to testify and present witnesses and evidence concerning the denial, suspension or revocation of the STR Permit. The appellant may be represented by counsel. The City's case shall be presented by a Code Enforcement Officer or by any other authorized agent of the City. g. The hearing officer may continue the hearing and request additional information from the City or the appellant prior to issuing a written decision.
h. After considering all testimony and evidence submitted at the hearing, the hearing officer may announce a decision orally, but in any event, shall prepare a written decision. The decision shall be provided to the parties within ten (10) days of the hearing and shall either uphold the denial, suspension or revocation of the STR Permit or withdrawal the denial, suspension or revocation of the STR Permit. The decision shall briefly state the reason for the conclusion of the hearing officer. The City shall serve the decision on the appellant. The decision of the hearing officer shall be final and shall not be subject to further appeal to the City.
i. The failure of the appellant to appear at the administrative hearing shall result in the hearing officer issuing a final decision to uphold the City’s denial, suspension or revocation of the STR Permit and the appellant’s exhaustion of administrative remedies.

SECTION THREE:

This Ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) (General Rule) because CEQA only applies to projects with the potential for causing a significant effect on the environment. There is no change in baseline environmental conditions or potential to cause a significant effect on the environment. On April 17, 2024, the City’s CEQA consultant, Interwest Group, completed an Initial Study evaluation, which concluded that no environmental factors would be potentially affected by the STR Regulations contemplated by the City Council. The subsequent revisions to the regulations also would not result in a change in baseline environmental conditions or potential to cause a significant effect on the environment. A Notice of Exemption will be prepared identifying that the activity is covered by the 35 September 9, 2024 Item 08 September 9, 2024 Item 08
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common-sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment.

SECTION FOUR:

This Ordinance establishes STR Regulations that will accommodate existing STR owners operating in the City of Del Mar prior to adoption of the Ordinance where the STR owner timely registers the existing STR with the City by December 31, 2024, and submits a STR Permit application within sixty (60) days of the effective date of the Ordinance which will be the date the California Coastal Commission grants final certification of the Ordinance.

Applications for all STRs will be accepted following the date this Ordinance takes effect.

Permits for existing STRs will be processed prior to applications for new STRs.

Prior to finalizing the Existing STR registry process, the City will verify that the owner has provided proof of at least one of the approved documents listed on the City’s voluntary registry webpage. This document should be provided to the City (and verified by the City) prior to the December 31, 2024 deadline.

The list of acceptable documents includes provision of at least ONE supporting document to demonstrate that the STR was in operation within the past ten years. Just one of the options below will suffice for supporting documentation:

1. Fully executed rental agreement that identifies the STR address; or

2. A City of Del Mar business license indicating the short-term rental business at the subject property; or

3. A federal or state income tax return specifying a STR business operation at the subject property. Please be sure to redact all sensitive personal information such as social security number; or

4. Printed or online advertising, or contracts, indicating actively advertised STR operations at the subject property; or

5. Other evidence of STR operations at the subject property within the past ten years may be submitted for consideration.

SECTION FIVE:

This Ordinance was introduced by the City Council on September 9, 2024.

SECTION SIX:

The City Clerk is directed to prepare and have published a summary of this Ordinance no less than five days prior to the consideration of its adoption and again within 15 days following adoption indicating votes cast.

SECTION SEVEN:

If any section, subsection, sentence, clause, phrase or portion of this Ordinance is, for any reason, held invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Ordinance.
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SECTION EIGHT:

Upon adoption, the Ordinance will be submitted to the California Coastal Commission for certification as a Local Coastal Program Amendment. The Ordinance will take effect and be in force on the date that the California Coastal Commission takes action to unconditionally certify the Local Coastal Program Amendment.

PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council held on the 23rd day of September 2024.
________________________________
Dave Druker, Mayor
City of Del Mar
APPROVED AS TO FORM:
______________________________
Leslie E. Devaney, City Attorney
City of Del Mar
ATTEST AND CERTIFICATION:

STATE OF CALIFORNIA

COUNTY OF SAN DIEGO

CITY OF DEL MAR
I, SARAH KRIETOR, Administrative Services Manager/City Clerk of the City of Del Mar, California, DO HEREBY CERTIFY, that the foregoing is a true and correct copy of Ordinance No.____, which has been published pursuant to law, and adopted by the City Council of the City of Del Mar, California, at a Regular Meeting held the 23rd day of September, 2024, by the following vote:

AYES:

NOES:

RECUSE:

ABSENT:

ABSTAIN:
______________________________
Sarah Krietor, Administrative Services
Manager/City Clerk
City of Del Mar
37 September 9, 2024 Item 08 September 9, 2024 Item 08

9.4.2024 Attachment B
1 This copy of the draft STR Regulations shows text that is proposed to be added to the Del Mar Municipal Code (DMMC) as a new Chapter 30.96 in the City’s Zoning Code and certified Local Coastal Program. All changes presented to the City Council on May 20, 2024, the Planning Commission on August 13, 2024, and City Council on August 26, 2024, are reflected. Additional non-substantive changes for clerical, grammatical, and/or clarity purposes for consistency are also included, as proposed and recommended by staff. Text shown in underline has been added and text shown in strikeout is text that was deleted.

Chapter 30.96 – Short-Term Rentals

30.96.020 – Definitions
For purposes of Chapter 30.96, the following definitions shall apply:

Accessory Dwelling Unit (ADU) shall have the same meaning as in Section

30.04.010(C) of this Municipal Code.

9.4.2024 Attachment B
2 Existing Short-Term Rental (Existing STR) means a STR operating in the City prior to adoption of the City’s STR Ordinance where the Owner timely registered the STR with the City as of the date stated in the Ordinance. A STR shall cease to be protected as an Existing STR upon any of the following: the transfer of ownership of the STR property, the STR Permit is not maintained in good standing, including a STR Permit that is not timely renewed prior to the permit expiration date, or the STR Permit is revoked due to non-compliance with any provision of this Chapter.

A change in title that is processed in accordance with Section 30.96.030(G) shall not be considered a transfer of ownership that would terminate rights to an Existing STR. Unless otherwise expressly stated herein, an Existing STR is subject to all applicable provisions of this Chapter.

Home Exchange means an agreement between parties for exclusive use of each other’s homes for living anddwelling, lodging, or sleeping purposes, for a set period of time, with no monetary exchange or other consideration exchanged between the parties.

Owner means the natural person(s) who is/are the owner(s) of record of the dwelling unit, at least one of whom occupies the dwelling unit at which the STR will operate as their Primary Residence, unless identified as an Existing STR by the City. All owner(s) of record of the dwelling unit are required to sign the STR Permit application and shall be held jointly and severally liable for any violation(s) of this Chapter. For purposes of this Chapter, “Owner” may also include:
(i) A personal trust or family trust whose beneficiaries consist solely of natural persons and the trustee(s) of such trust, so long as at least one beneficiary or trustee of the trust occupies the dwelling unit at which the STR will operate as their Primary Residence. If the dwelling unit is held in a personal or family trust, each trustee must sign the STR Permit application, and shall be held jointly and severally liable for any violation(s) of this Chapter; and (ii) A limited liability company (LLC), limited partnership (LP), or limited liability partnership (LLP) owned by natural persons (not business entities), so long as at least one manager/member of the LLC occupies the dwelling unit at which the STR will operate as their Primary Residence. If the dwelling unit is part of a LLC, each Each manager/member of the LLC, LP, or LLP must sign the STR Permit application, and shall be held jointly and severally liable for any violation(s) of this Chapter.
39 September 9, 2024 Item 08 September 9, 2024 Item 08

9.4.2024 Attachment B
3 Unless identified as an Existing STR by the City, The the term “Owner” does not include a dwelling unit that is fully or partially owned as a timeshare, a business trust, or by any entity other than a LLC (e.g., corporation, limited partnership, general partnership, or any other business entity other than a LLC, LP, or LLP limited liability partnership, etc.).

Short-Term Rental (STR) means, unless otherwise exempt under Section

30.96.025 of this Chapter, the rental of a dwelling unit, or any portion thereof, for dwelling, lodging, or sleeping purposes, for not more than a period of thirty (30) consecutive calendar days or less. For purposes of this Chapter, Home Exchanges and Long-Term Rentals (each defined by this Chapter) are not considered STRs, and are expressly exempt from the requirements of this Chapter under Section 30.96.025.

30.96.025 – Exemptions
A. The following uses are exempt from the provisions of this Chapter:

1. Home Exchanges, as that term is defined in Section 30.96.020; and

2. Long-Term Rentals, as that term is defined in Section 30.96.020, to include (i) rentals for a fixed-term (e.g., annual) or periodic tenancy (e.g., month-tomonth) totaling more than thirty (30) consecutive calendar days; and (ii) rentals for a month, as described below.

9.4.2024 Attachment B
4 dwelling unit, or the rented portion thereof, shall not be re-rented for a new rental period prior to the expiration of the monthly rental period. If the dwelling unit, or the rented portion thereof, is re-rented prior to the expiration of the monthly rental period, then the rental of the dwelling unit, or the rented portion thereof, is no longer exempt from the provisions of this Chapter and becomes subject to compliance with the requirements of this Chapter.

Notwithstanding Section 30.96.060(A) and (B), the following properties have existing entitlements for visitor accommodations that are subject to the payment of requirement to collect and remit Transient Occupancy Tax under Chapter 3.12 of this Municipal Code, but are not subject to the requirement to obtain a STR Permit pursuant to this Chapter:

2. L’Auberge Vacation Villas (1570 Camino del Mar) in the Hotel Specific Plan Zone; and

3. Wavecrest Resort Timeshares (1400 Ocean Avenue) in the R2 Zone.

B. A STR Permit will only be issued to the Owner of the dwelling unit. 41 September 9, 2024 Item 08 September 9, 2024 Item 08

9.4.2024 Attachment B
5 C. No person shall rent, offer to rent, or advertise a STR without a valid STR Permit.

D. A STR Permit shall be valid for a period of two (2) years from the date of issuance, and must be timely renewed prior to the permit STR Permit expiration date every two (2) years thereafter to maintain a valid permit STR Permit for STR operations.

E. The subletting of a STR is prohibited. Only an Owner with a valid STR Permit issued by the City is permitted to rent out a dwelling unit or portion thereof as a STR.

A. Legal name, address, telephone number, and email address of each Owner and the address and Assessor’s Parcel Number (APN) of the STR.

9.4.2024 Attachment B
6 3. If the dwelling unit Owner is a LLC, LP, LLP, or other form of business entity operating as an Existing STR, each manager/member of the LLC entity must sign the STR Permit application and must acknowledge the information is true and correct in accordance with Section 30.96.040(A)(1).

4. Each Owner of a STR, or multiple Existing STRs, operating in the City shall disclose the name(s) and contact information for each person holding the legal, equitable, and/or beneficial interest of each of their respective STR ownership properties, as applicable.

5. Except for Existing STRs, documentation that the STR will operate as a Primary Residence shall be demonstrated by providing proof of the Owner’s STR address as follows:
a. Proof of address on at least two (2) of the following documents:
ai.. Federal and State tax returns
bii.. Bank account
c.iii. Vehicle registration
d.iv. Driver’s license
e.v. Voter registration
f.vi. Employment records
f.vii. Homeowner’s tax exemption
b. If the Owner is a LLC, LP, LLP, or other form of business entity operating as an Existing STR, the Owner shall demonstrate proof of address by providing a current Certificate of Status, or similar documentation demonstrating the business entity is active and in good standing with the state of formation.

B. Commencing from the effective date of this Ordinance, the Owner of an Existing STR, which meets the definition of an Existing STR as defined in Section

C. Legal name, address, telephone number, and email address of the Designated Local Contact Person, if different from the Owner, and written consent from the Designated Local Contact Person to act as the responsible person designated by the Owner to be available twenty-four (24) hours a day, seven (7) days a week, for 43 September 9, 2024 Item 08 September 9, 2024 Item 08

9.4.2024 Attachment B
7 the purpose of responding within thirty (30) minutes to complaints regarding the condition, operation, and/or conduct of occupants and guests of the STR and taking remedial action to resolve any such complaints.

D. Owner shall provide a Deed or Title Report for the STR property to confirm ownership interest in the property.

E. STR Rental Agreement and Site-Specific Details.

2. Site plan and/or photos showing the number and location of designated offstreet parking spaces for the exclusive use of the STR.

3. Floor plan(s) showing the layout of the dwelling unit, including all bedrooms and bathrooms; and the location of fire extinguishers, smoke alarms, and carbon monoxide alarms.

5. Authorization for the City to conduct an inspection of the STR for safety compliance in accordance with Section 30.96.070(F). The Owner shall allow the City to inspect the STR and property at any time prior to issuance of a permit STR Permit and/or during the operation of the STR for the purpose of making a reasonable inspection to observe and enforce compliance with applicable laws, rules and regulations of the STR, including the provisions of this Chapter. The City may, but is not required to, conduct an inspection of the STR and property pursuant to the requirements of this Section.

G. Each Owner shall jointly and severally agree to indemnify, hold harmless, and defend the City and its officials, employees and agents from any and all liability, 44 September 9, 2024 Item 08 September 9, 2024 Item 08

9.4.2024 Attachment B
8 actions, claims, damages, costs, and expenses of any kind whatsoever, including reasonable attorneys’ fees and costs, which may be asserted by any person or entity arising from or relating to the issuance of the a STR permit Permit or its operation of a STR.

H. Any other information as the City Manager, or designee, deems reasonably necessary to administer this Chapter.

I. Payment of STR Permit application fee or renewal fee, as applicable, for initial application or STR Permit permit renewal in accordance with the fee schedule established by the City Council, which may be amended from time-to-time.

30.96.050 – Permit Issuance

A. STR Permits shall be issued on a first-come, first-served basis, except that an Existing STR Owner, which applies for a STR Permit in accordance with Section

30.96.040(B), shall be granted priority to obtain a STR Permit.

1. Notwithstanding the permit issuance and locational requirements applicable to new STRs under Chapter 30.96, Existing STRs shall be accommodated as allowable uses in accordance with a valid STR Permit unless a termination of existing rights occurs upon any of the following: the transfer of ownership of the STR property, the STR Permit is not maintained in good standing, including a STR Permit that is not timely renewed prior to the date of permit STR Permit expiration, or the STR Permit is revoked due to noncompliance with any provision(s) of this Chapter. A change in title that is processed in accordance with Section 30.96.030(G) shall not be considered a transfer of ownership that would terminate rights to an Existing STR.

1. STR Permits for new STRs shall be restricted to one (1) per Owner and Existing STRs shall be restricted in accordance with Section

30.96.050(B)(3). Once the maximum allowable number of STR Permits has been issued by the City (including Existing STRs and new STRs), the Owner of any applications submitted that would exceed the cap identified in this Section shall be placed on a waitlist that will be established based on 45 September 9, 2024 Item 08 September 9, 2024 Item 08

9.4.2024 Attachment B
9 the order the applications are filed and applications will be processed in the order in which the applications are received.

2. Once a STR Permit becomes available for issuance, application submittals will be accepted by the City in the order appearing on the City’s STR Permit waitlist. Person(s) listed on the City’s STR Permit waitlist, who are contacted by the City to submit a STR Permit application, will have thirty (30) days from the date of notification by the City to submit a STR Permit application for consideration. If the person(s) contacted by the City do not submit a STR Permit application to the City within the required thirty (30) day period, that person(s) will be removed from the waitlist and the City will move on to notifying the next person appearing on the City’s STR Permit waitlist.

3. The Owner of an Existing STR may request a separate STR Permit for each Existing STR in operation by the Owner and registered with the City as of December 31, 2024 date as stated in the STR Ordinance. If the number of Existing STRs exceeds the cap identified by this Section, then no additional STR Permits shall be issued by the City for new STRs until available capacity is reached within the cap through attrition (including, but not limited to, when existing rights are terminated for Existing STRs in accordance with Section 30.96.050(A)(1)).

C. New STR Owners may not include a dwelling unit fully or partially owned as a timeshare, a business trust, or by any entity other than a LLC (e.g., corporation, limited partnership, general partnership, or other business entity other than a LLC, LP, or LLPlimited liability partnership, etc.).

D. A STR Permit shall be issued by the City if the applicant meets the conditions and requirements of this Chapter 30.96.

E. A STR Permit shall not be issued by the City if:

9.4.2024 Attachment B
10 4. The property had a STR Permit revoked in the previous twelve (12) months, unless the STR Permit will be issued to a new Owner that meets the eligibility requirements.

G. STR Permits may be suspended, revoked, or not renewed by the City in accordance with Section 30.96.080 of this Chapter.

30.96.060 – STR Locational Requirements
A. Residential Zones.

2. New STRs that are not within a Primary Residence shall be prohibited.

3. STRs are a prohibited use within:
a. Multi-dwelling unit rental apartment development located in residential zones.
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9.4.2024 Attachment B
11 b. Any dwelling units that are subject to deed restrictions or affordable housing covenants that limit rental of the unit to housing for specific income-restricted households.
c. An Accessory Dwelling Unit located in residential zones. d. Non-dwelling units including, but not limited to, garages or vehicles or temporary shelters such as tents.

4. Except for Existing STRs with a valid STR Permit, the maximum number of STRs per lot shall be restricted to:
a. Maximum of one (1) STR per lot developed with one dwelling unit, including lots developed with one primary dwelling unit and ADU development.
b. Maximum of one (1) STR per Owner on a lot that is developed with two dwelling units, including lots developed with two primary dwelling units and ADU development.
c. Maximum of ten percent (10%) of the total primary dwelling units on a lot developed with multi-unit condominium development (three or more units). Lots with condominium development must provide documentation of written consent to operate a STR by the homeowner’s association (HOA).

B. Commercial Zones.

1. STRs may be permitted within the following commercial zones:
48 September 9, 2024 Item 08 September 9, 2024 Item 08

9.4.2024 Attachment B
12 Residential-Commercial (RC)
Central Commercial (CC)
North Commercial (NC)
Professional Commercial (PC)
Visitor Commercial (VC)
941 Camino del Mar Specific Plan (941SP)

2. STRs in commercial zones are subject to the requirements in Section

30.96.060(A)(2), (A)(4) and (A)(5) of this Chapter.

3. STR use is permitted in an Accessory Dwelling Unit (ADU) subject to the regulations in Chapter 30.91 of this Municipal Code, only where the ADU is used as a Primary Residence.

4. STRs are a prohibited use within:
a. The Beach Commercial (BC), Public Facilities (PF), Public Parkland (PP), Railroad Right-of-Way (RR), and Floodway zones.
b. Any dwelling units that are subject to deed restrictions or affordable housing covenants that limit rental of the unit to housing for specific income-restricted households.
c. Non-dwelling units including, but not limited to, garages or vehicles (e.g., recreational vehicles, motor homes, travel trailers, truck campers, tent trailers), tree-housestreehouses, or temporary shelters such as tents.

30.96.070 – Operating Requirements
STRs shall comply with all of the following operating requirements:

1. Noise Control.
a. It shall be unlawful and shall constitute a public nuisance for any Owner of a STR to cause, allow or permit the emission or transmission of any loud noise from any sound-making equipment or sound-amplifying device to occur or be maintained at a STR, which may include, but is not limited to, the following: yelling, screaming, shouting, or other disturbing noises which unreasonably interfere with the peace and quiet of the nearby residents or members of the 49 September 9, 2024 Item 08 September 9, 2024 Item 08

9.4.2024 Attachment B
13 public. Owner shall ensure that STR occupants and guests comply with the noise provisions set forth in Del Mar Municipal Code Chapter

9.20 (Noise Regulations). DMMC Section 9.20.090 specifies that any noise that is plainly audible at a distance of fifty (50) feet between the hours of 10:00 p.m. and 8:00 a.m. is considered a prima facie violation.
b. STRs are for overnight lodging. Hosting of weddings, receptions, corporate events, commercial functions, bachelor or bachelorette parties, and any other similar events or gatherings that have the potential to cause a public nuisance are strictly prohibited. c. Guest hours at STRs shall be limited from 8:00 a.m. to 10:00 p.m. daily.

2. Trash Disposal. Trash, organic waste and recycling shall not be left or stored within public view, except in the appropriate container at a location that is designated for collection from 4:00 p.m. on the day prior to trash pickup until up to 12:00 p.m. on the day following the day designated for pickup. All trash and recycling shall be in approved receptacles pursuant to Del Mar Municipal Code Chapter 11.20 (Management of Solid Waste).

4. Coastal Resource Protection. The coastal resource protections in the California Coastal Act Chapter 3, Article 6, Section 30240 (Cal. Pub. Res.

9.4.2024 Attachment B
14 b. Interior Display of STR Permit. Owner shall affix the valid STR Permit provided by the City, which shall include reference to the City’s Good Neighbor Policy and Transient Occupancy Tax rate, for interior display on the inside of the main entry door of the STR. c. Exterior Display of STR Notice. Owner shall affix a sign on the exterior of the STR during operation, at a minimum size of 8.5 inches by 11 inches, identifying the STR Permit number, name and contact information for the Designated Local Contact Person, the maximum number of occupants and guests permitted at the STR, and the maximum number of vehicles allowed at the property. The notice shall be located on-site in plain view of the general public and/or common areas and shall be maintained in good condition. d. Signs advertising availability of the STR for rent are not permitted on the property.

B. Minimum Night Stay. STRs shall have a minimum night stay of three (3) consecutive calendar nights.

F. Safety Compliance.

1. The STR property must meet basic life safety requirements, including but not limited to, maintaining operable smoke alarms and carbon monoxide alarms, fire extinguishers, and first aid kits.
51 September 9, 2024 Item 08 September 9, 2024 Item 08

9.4.2024 Attachment B
15 2. All Bedrooms within a STR shall meet all applicable California Building Code life safety requirements.

H. Record Keeping, Audit. STR Owner shall maintain records related to use and occupancy of the STR for the purpose of inspection and/or audit to demonstrate compliance with Chapter 30.96.

I. Payment of Transient Occupancy Tax. Unless otherwise exempt under Section

30.96.025 of this Chapter, Owner shall comply with all provisions of Del Mar Municipal Code Chapter 3.12 concerning the payment collection and remittance of Transient Occupancy Tax (TOT) for STR rentals. The TOT calculation shall include cleaning fees, resort fees, and all other fees collected as part of the total rent charged for the STR. If the STR Owner uses a web- or application-based hosting platform or third-party booking vendor, the hosting platform or booking vendor shall be considered an agent of the STR Owner for purposes of collecting and remitting the TOT to the City.

B. Any person who violates any provision of this Chapter shall be subject to the fine amounts set forth in Government Code Section 36900(d), as that Section may be amended from time to time.

9.4.2024 Attachment B
16 1. The decision shall be based on at least one of the following grounds:
a. A material misrepresentation, false or misleading information was included on the application or renewal application for a STR Permit. b. A violation of any applicable provision of the Del Mar Municipal Code or other applicable law relating to the operation of the STR. c. An authorized official has given notification of existing health or safety violations on the STR property, or non-compliance with applicable laws, rules or regulations relating to fire, building, health or safety on the STR property.
d. An applicant or STR Permit holder is delinquent in the payment of any outstanding fees, assessments or taxes owed to the City related to any property located in the City that is owned by the applicant, including, but not limited to, Transient Occupancy Taxes (TOT).

9.4.2024 Attachment B
17 d. The City and the appellant shall each submit all documents relating to the denial, suspension or revocation of the STR Permit that the respective party intends to discuss during the administrative hearing to the hearing officer and the other party at least seven (7) days in advance of the hearing date.
e. At the administrative hearing, the hearing officer shall only consider evidence that is relevant to determine whether the denial, suspension or revocation of a STR Permit is warranted. Courtroom rules of evidence shall not apply. Relevant hearsay evidence and written reports may be admitted whether or not the speaker or author is present to testify, if the hearing officer determines that the evidence is reliable. Admission of evidence and the conduct of the hearing shall be controlled by the hearing officer in accordance with the fundamentals of due process. The hearing officer may limit the total length of the hearing to one (1) hour, at the hearing officer’s discretion, and shall allow the appellant at least as much time to present its case as is allowed the City.
f. The appellant shall be given the opportunity to testify and present witnesses and evidence concerning the denial, suspension or revocation of the STR Permit. The appellant may be represented by counsel. The City's case shall be presented by a Code Enforcement Officer or by any other authorized agent of the City.
g. The hearing officer may continue the hearing and request additional information from the City or the appellant prior to issuing a written decision.
h. After considering all testimony and evidence submitted at the hearing, the hearing officer may announce a decision orally, but in any event, shall prepare a written decision. The decision shall be provided to the parties within ten (10) days of the hearing and shall either uphold the denial, suspension or revocation of the STR Permit or withdrawal the denial, suspension or revocation of the STR Permit.

The decision shall briefly state the reason for the conclusion of the hearing officer. The City shall serve the decision on the appellant.

The decision of the hearing officer shall be final and shall not be subject to further appeal to the City.
i. The failure of the appellant to appear at the administrative hearing shall result in the hearing officer issuing a final decision to uphold the City’s denial, suspension or revocation of the STR Permit and the appellant’s exhaustion of administrative remedies.
54 September 9, 2024 Item 08 September 9, 2024 Item 08
Attachment C
1 BACKGROUND
This City Council priority special project initially began in 2016 and resumed in January 2023 after various processing delays due to the timing of court decisions rendered during the COVID-19 pandemic. Following is a summary of actions that have occurred to date:

Council Guiding Principles & Objectives for STR Regulations On July 24 and September 5, 2023, the City Council determined the twelve guiding principles and objectives to guide the process for development of new STR regulations: