City Council Staff Report Dated November 15, 2022 — Diamond Bar City Council, December 6, 2022

Agenda #: 6.2
Meeting Date: November 15, 2022
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: AMENDMENTS TO TITLE 5 AND TITLE 22 (DEVELOPMENT CODE)

OF THE DIAMOND BAR MUNICIPAL CODE TO CLARIFY THE

EXISTING PROHIBITION ON SHORT-TERM RENTALS IN
RESIDENTIAL NEIGHBORHOODS.

STRATEGIC
GOAL: Safe, Sustainable & Healthy Community
RECOMMENDATION:

A. Open Public Hearing to receive public testimony;
B. Determine that the proposed code amendment is not subject to CEQA pursuant to Sections 15061(b)(3) and 15305 of the CEQA Guidelines; and C. Approve for first reading by title only, waive full reading of Ordinance No. 04(2022); and schedule the second reading and adoption at the next regularly scheduled City Council meeting.

FINANCIAL IMPACT:

None.

BACKGROUND:

Short-term rentals, such as those marketed through Airbnb and similar platforms, are prohibited in Diamond Bar. However, these unlawful businesses continue to proliferate.

Because it is currently difficult to preempt the establishment of short-term rentals, and nearly as difficult to prosecute violators, the City Council directed staff to identify potential solutions that would better enable the staff to eradicate short-term rentals, and thus reduce the nuisance they impose on neighborhoods.

The attached ordinance addresses the City Council’s direction by proposing the following amendments to the Diamond Bar Municipal Code (DBMC):

6.2 Packet Pg. 238

1. Adding definitions for “short-term occupancy” and “short-term rentals” to clarify the existing prohibition of such uses in residential neighborhoods.

2. Prohibiting the advertising of short-term rentals, as well as their operation.

The proposed ordinance amends both Title 5 (Business Licensing) and Title 22 (Development Code) of the DBMC.

ANALYSIS:

Residential short-term rentals—such as those listed on Airbnb, VRBO and similar sites—have become increasingly popular in recent years. These websites provide a platform for homeowners to operate an online marketplace for the rental of their residential properties for temporary lodging. Many travelers are now using short-term rentals in lieu of more traditional commercial lodging options such as hotels, motels and bed and breakfast inns. Consequently, many communities, including Diamond Bar, are experiencing the impacts of these uses in their residential neighborhoods, including, but not limited to, excessive noise, lack of parking, safety concerns, accumulation of trash and deferred property maintenance. If homes are utilized for transient occupancy, they are no longer part of our housing stock. A reduction in permanent housing units can put an upward pressure on rental prices and negatively affect housing affordability. In addition, when short-term rentals replace traditional commercial lodging, these illegal businesses put a strain on the City’s fiscal health because they do not pay transient occupancy tax, even though they place an added burden on public services.

Short-term rentals have always been prohibited in all residential zones within Diamond Bar. The Municipal Code defines hotels and motels as “facilities with guest rooms or suites, provided with or without kitchen facilities, rented to the general public for transient lodging (for) less than 30 days.” By definition, then, a residence being rented out for fewer than 30 days is classified as a hotel/motel, and is thus not a permissible use in residential zones. However, a recent search of all short-term rental booking platforms revealed that 83 homes in Diamond Bar are currently being advertised as available for temporary lodging. Although the City has been enforcing the prohibition of short-term rentals to varying degrees of success, staff typically must rely on circumstantial evidence to bring forth enforcement action against these illegal businesses.

Adoption Process
Before the City Council may adopt an ordinance that includes amendments to the Development Code, the Planning Commission must first conduct a public hearing to consider the proposed amendments. The Commission then forwards its recommendations via resolution to the Council.

Planning Commission Review
On October 25, 2022, after conducting a duly noticed public hearing, the Planning Commission adopted Resolution No. 2022-19, recommending, by a 3-0 vote

6.2 Packet Pg. 239
(Commissioner Garg and Commissioner Rawlings absent), that the City Council adopt the attached ordinance amending Titles 5 and 22 (Attachment 1). The staff report and draft meeting minutes from that meeting are included as Attachments 3 and 4 respectively.

No public comments were received prior to or during the Planning Commission hearing.

Proposed Amendments to Title 22 (Development Code)
Section 22.80.020. (Definitions of specialized terms and phrases) – The terms “short-term occupancy” and “short-term rental” are introduced for clarification purposes, and to expressly state that short-term rentals are prohibited in all zoning districts. With the addition of these narrowly-defined terms, it will no longer be necessary to rely entirely on the definition of “hotel/motel” to assert that short-term rentals are illegal in Diamond Bar. The new definitions are proposed to read as follows:
• Short-Term Occupancy. The use or possession, or right to use or possess, of any portion of a dwelling unit, room or rooms offered for remuneration for dwelling, lodging or sleeping purposes for a period of less than 30 days.

Short-term occupancy is prohibited in all residential zoning districts. • Short-Term Rental. The use of any dwelling unit, or any portion thereof, for short-term occupancy. Short-term rentals are prohibited in all zoning districts.

Proposed Amendments to Title 5 (Business Licensing)
Section 5.08.050. (Short-term rentals) – This new section expressly states that it is not only a violation of the law to operate a short-term rental in Diamond Bar, but it is also illegal to advertise short-term rentals. Prohibiting the advertising of short-term rentals will serve as a powerful enforcement tool for the City: while it may be difficult to prove that a short-term rental is actually being rented out, it will be very easy to provide evidence that it is being advertised on any of various listing platforms, and the City will be able to prosecute on that basis alone. The new code section should also serve as a powerful deterrent by placing would-be violators on notice that the mere act of advertising a short-term rental is a misdemeanor offense, punishable by a fine of up to $1,000 and/or imprisonment for each offense. Pursuant to Municipal Code Section

1.04.010, each day that a violation is committed shall count as a separate offense.

ENVIRONMENTAL REVIEW:

The City has determined that the proposed Municipal Code Amendment is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Title 14, California Code of Regulations, Section 15061(b)(3), in that it can be seen with certainty that there is no possibility that the Ordinance may have a significant effect on the environment because the Ordinance will not cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, in that it simply clarifies existing conditions, which are that short-term occupancies and short-term rentals are not a permitted use in the City's residential zoning districts. In addition, it is categorically exempt pursuant to Title 14, California Code of Regulations,

6.2 Packet Pg. 240
Section 15305 as a minor alteration in land use limitations in that it will not result in any changes in land use or density for the reasons set forth above.

NOTICE OF PUBLIC HEARING:

Pursuant to Government Code Section 65091(a)(4), notice for this hearing was published in the San Gabriel Valley Tribune newspaper on November 4, 2022, as a 1/8- page display ad. A copy of the public notice was also posted at the City’s designated community posting sites.

LEGAL REVIEW:

The City Attorney has reviewed and approved the Ordinance as to form.

PREPARED BY:

REVIEWED BY:

Attachments:

1. 6.2.a Ordinance No. 04 (2022); Short-Term Rentals

2. 6.2.b Planning Commission Resolution No. 2022-19

3. 6.2.c Planning Commission Staff Report (attachments not included) Dated October 25, 2022

4. 6.2.d Planning Commission Meeting Draft Minutes Dated October 25, 2022

6.2 Packet Pg. 241
ORDINANCE NO. 04 (2022)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR, CALIFORNIA, ADDING SECTION 5.08.050 (SHORT-TERM
RENTALS) OF TITLE 5 AND AMENDING SECTION 22.80.020
(DEFINITIONS OF SPECIALIZED TERMS AND PHRASES) OF TITLE 22 (DEVELOPMENT CODE) OF THE DIAMOND BAR MUNICIPAL CODE

TO CLARIFY THE EXISTING PROHIBITION ON SHORT-TERM
RENTALS IN RESIDENTIAL NEIGHBORHOODS.

WHEREAS, the number of short-term rentals of residential dwelling units has grown in recent years in the City of Diamond Bar ("City") and in many other communities.

This is largely due to hosting platform websites such as Airbnb and VRBO that can provide an easy connection between property owners and individuals looking for shortterm rental housing. Many travelers are now using short-term vacation rentals in lieu of more traditional commercial lodging options such as hotels, motels and bed and breakfast inns;
WHEREAS, the City has at all times considered short-term rentals as unpermitted uses within all residential zones and has used its code enforcement powers against property owners using residential properties in this manner; WHEREAS, the commercial nature of short-term rentals is incompatible with the character of residential neighborhoods for reasons which include, but are not limited to the following: (1) short-term rental properties are subject to ever-changing tenants which results in surrounding neighbors not becoming familiar with the property's inhabitants, which detrimentally affects crime prevention efforts, including, but not limited to, Neighborhood Watch; (2) short-term renters have less motivation to be good neighbors due to the transient nature of their stay; (3) because short-term renters are typically on vacation, loud parties are more frequent and more frequently occur during the middle of the week, negatively impacting the quiet use and enjoyment of nearby neighbors of their own properties; (4) short-term rentals are more likely to be occupied by several families and/or large numbers of adults which results in additional vehicle trips and parking demand; and (5) it has been the City's experience that short-term rentals place inordinately larger demands on police services primarily due to noise complaints associated with loud parties;
WHEREAS, short-term rentals have been primarily located in the City's singlefamily neighborhoods, the characteristics of which include: (1) owner-occupied homes consisting of a single family which typically will remain in the home for a number of years; (2) long-term tenants with similar characteristics as the owner-occupied home; (3) neighbors who develop friendships which can last years or even a lifetime and who share life experiences over the span of years; and (4) neighbors who watch over each other's properties and have some familiarity with who may or may not belong on the property.

Occupants of short-term rentals do not share these single-family residential characteristics;

6.2.a
Packet Pg. 242
Ordinance No. 04 (2022)
2 WHEREAS, in adopting the proposed amendments, the City seeks to clarify the existing condition (i.e., that short-term rentals are not a permitted use in residential zones) to, in part, ensure that potential purchasers of residential properties in the City have no reasonable expectation in making their purchasing decision that the residential property can be put to such a use;
WHEREAS, in adopting the proposed amendments, short-term rentals, home sharing, and the advertisement thereof, does not amend the General Plan but is consistent with all provisions of the General Plan to protect neighborhoods from nuisances and other adverse effects resulting from improper operation of short-term rentals and home sharing; and
WHEREAS, the City has established goals and policies to address the development, maintenance and improvement of the housing stock to provide adequate housing in the city, both in quality and quantity, and to provide appropriate shelter for all without discrimination. If homes are utilized for transient occupancy, they are no longer part of our housing stock. Prohibiting home sharing is also a way to preserve affordable housing opportunities as rooms and secondary units can be used for permanent housing rather than transient stays. A reduction in permanent housing units can put an upward pressure on rental prices and negatively affect housing affordability. Prohibiting short-term rental and home sharing is consistent with the following General Plan and Housing Element goals and policies:

Land Use and Economic Development
• Goal LU-G-6: Preserve existing residential neighborhoods to retain the qualities Diamond Bar residents love, such as easy access to preserved natural open spaces, while supporting and encouraging well-designed, complete neighborhoods with safe streets, access to shopping and services, and community parks and gathering places. • Goal LU-G-7: Promote a variety of housing and neighborhood types that respond to a range of income, household sizes, and accessibility levels. • Goal LU-G-18: Encourage a diversity of housing types and products.

Housing Element
• Goal H-G-1: Preserve and conserve the existing housing stock and maintain property values and residents' quality of life.
• Policy H-P-1.3: Promote increased awareness among property owners and residents of the importance of property maintenance to long-term housing quality.

WHEREAS, on October 25, 2022, the Planning Commission held a duly noticed public hearing regarding proposed amendments to the Municipal Code, and adopted Resolution No. 2022-19 recommending City Council approval of said Municipal Code amendments; and

6.2.a
Packet Pg. 243
Ordinance No. 04 (2022)
3 WHEREAS, on November 15, 2022, the City Council held a duly noticed public hearing regarding the proposed Municipal Code Amendment.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DIAMOND BAR DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. Subsection (s) of Section 22.80.020 (Definitions of specialized terms and phrases) of Title 22, Chapter 22.80 of the Diamond Bar Municipal Code is amended as follows to add the definitions of “short-term occupancy” and “short-term rental,” as follows (deletions in strikethrough text and additions shown in double underline):
(s) Definitions, “S.” The following definitions are in alphabetical order:
. . .

Short-Term Occupancy. The use or possession, or right to use or possess, of any portion of a dwelling unit, room or rooms offered for remuneration for dwelling, lodging or sleeping purposes for a period of less than 30 days. Short-term occupancy is prohibited in all residential zoning districts.

Short-Term Rental. The use of any dwelling unit, or any portion thereof, for shortterm occupancy. Short-term rentals are prohibited in all zoning districts. . . .

Section 2. A new Section 5.08.050 (Short-term rentals) of Title 5, Chapter 5.08 of the Diamond Bar Municipal Code is added as follows (deletions in strikethrough text and additions shown in double underline):

Section 5.08.050. – Short-term rentals
(a) Short-term occupancy and short-term rental shall have the same meanings as provided in Title 22, Development Code.
(b) It is a violation of this Code for an owner or lessee of property or any agent thereof, to rent a dwelling unit or any portion thereof, for short-term occupancy or as a short-term rental as such terms are defined in Subsection (s) of Section 22.080.020. (c) It is a violation of this Code for an owner or lessee of property or any agent thereof, to place or permit to be placed, any printed or lettered announcement, whether in a magazine, newspaper, handbill, notice, display, billboard, poster, email, Internet website or application, or any other form of advertisement for a short-term occupancy or short-term rental in a zoning district in which such uses are not permitted. (d) Violation of this Section shall constitute a misdemeanor as set forth pursuant to Section 1.04.010.

Section 3. The adoption of this Ordinance is not a project within the meaning of

6.2.a
Packet Pg. 244
Ordinance No. 04 (2022)
4 the California Environmental Quality Act ("CEQA") pursuant to Title 14, California Code of Regulations, Section 15061(b)(3), in that it can be seen with certainty that there is no possibility that the Ordinance may have a significant effect on the environment because the Ordinance will not cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, in that it simply clarifies existing conditions, which are that short-term occupancies and short-term rentals are not a permitted use in the City's residential zoning districts. In addition, it is categorically exempt pursuant to Title 14, California Code of Regulations, Section 15305 as a minor alteration in land use limitations in that it will not result in any changes in land use or density for the reasons set forth above.

Section 4. Severability. If any section, clause, phrase, word or portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each other section, clause, phrase, word or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, words or portions thereof be declared invalid or unconstitutional.

Section 5. The City Clerk shall attest and certify to the passage and adoption of this Ordinance within 15 days after adoption, cause it to be published or posted in accordance with California law, and it shall be effective 30 days after adoption pursuant to Government Code Section 36937.

PASSED, APPROVED and ADOPTED this _____ day of ________, 2022.

CITY OF DIAMOND BAR:
__________________________
Mayor
ATTEST:

I, Kristina Santana, City Clerk of the City of Diamond Bar, do hereby certify that the foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Diamond Bar held on the 15th day of November, 2022, and was duly adopted at a regular meeting of the City Council of the City of Diamond Bar held on the ____ day of ________, 2022, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:
__________________________
Kristina Santana, City Clerk

6.2.a
Packet Pg. 245

6.2.b
Packet Pg. 246

6.2.b
Packet Pg. 247

6.2.b
Packet Pg. 248
ORDINANCE NO. 2022-XX

TO CLARIFY THE EXISTING PROHIBITION ON SHORT-TERM
RENTALS IN RESIDENTIAL NEIGHBORHOODS.

WHEREAS, the number of short-term rentals of residential dwelling units has grown in recent years in the City of Diamond Bar ("City") and in many other communities.

Occupants of short-term rentals do not share these single-family residential characteristics;
Exhibit A 6.2.b
Packet Pg. 249
Ordinance No. XX (2022)
2 WHEREAS, in adopting the proposed amendments, the City seeks to clarify the existing condition (i.e., that short-term rentals are not a permitted use in residential zones) to, in part, ensure that potential purchasers of residential properties in the City have no reasonable expectation in making their purchasing decision that the residential property can be put to such a use;
WHEREAS, in adopting the proposed amendments, short-term rentals, home sharing, and the advertisement thereof, does not amend the General Plan but is consistent with all provisions of the General Plan to protect neighborhoods from nuisances and other adverse effects resulting from improper operation of short-term rentals and home sharing; and
WHEREAS, the City has established goals and policies to address the development, maintenance and improvement of the housing stock to provide adequate housing in the city, both in quality and quantity, and to provide appropriate shelter for all without discrimination. If homes are utilized for transient occupancy, they are no longer part of our housing stock. Prohibiting home sharing is also a way to preserve affordable housing opportunities as rooms and secondary units can be used for permanent housing rather than transient stays. A reduction in permanent housing units can put an upward pressure on rental prices and negatively affect housing affordability. Prohibiting short-term rental and home sharing is consistent with the following General Plan and Housing Element goals and policies:

Land Use and Economic Development
 Goal LU-G-6: Preserve existing residential neighborhoods to retain the qualities Diamond Bar residents love, such as easy access to preserved natural open spaces, while supporting and encouraging well-designed, complete neighborhoods with safe streets, access to shopping and services, and community parks and gathering places.  Goal LU-G-7: Promote a variety of housing and neighborhood types that respond to a range of income, household sizes, and accessibility levels.  Goal LU-G-18: Encourage a diversity of housing types and products.

Housing Element
 Goal H-G-1: Preserve and conserve the existing housing stock and maintain property values and residents' quality of life.
 Policy H-P-1.3: Promote increased awareness among property owners and residents of the importance of property maintenance to long-term housing quality.

WHEREAS, on October 25, 2022, the Planning Commission held a duly noticed public hearing regarding proposed amendments to the Municipal Code, and adopted Resolution No. 2022-XX recommending City Council approval of said Municipal Code

6.2.b
Packet Pg. 250
Ordinance No. XX (2022)
3 amendments; and
WHEREAS, on November 15, 2022, the City Council held a duly noticed public hearing regarding the proposed Municipal Code Amendment.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DIAMOND BAR DOES HEREBY ORDAIN AS FOLLOWS:

Short-Term Rental. The use of any dwelling unit, or any portion thereof, for shortterm occupancy. Short-term rentals are prohibited in all zoning districts. . . .

6.2.b
Packet Pg. 251
Ordinance No. XX (2022)
4 Section 3. The adoption of this Ordinance is not a project within the meaning of the California Environmental Quality Act ("CEQA") pursuant to Title 14, California Code of Regulations, Section 15061(b)(3), in that it can be seen with certainty that there is no possibility that the Ordinance may have a significant effect on the environment because the Ordinance will not cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, in that it simply clarifies existing conditions, which are that short-term occupancies and short-term rentals are not a permitted use in the City's residential zoning districts. In addition, it is categorically exempt pursuant to Title 14, California Code of Regulations, Section 15305 as a minor alteration in land use limitations in that it will not result in any changes in land use or density for the reasons set forth above.

PASSED, APPROVED and ADOPTED this 6
th day of December, 2022.

THE CITY OF DIAMOND BAR:
__________________________
Ruth Low, Mayor
ATTEST:

6.2.b
Packet Pg. 252
Ordinance No. XX (2022)
5 AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:
__________________________
Kristina Santana, City Clerk

6.2.b
Packet Pg. 253

PLANNING COMMISSION

AGENDA REPORT
AGENDA ITEM NUMBER: 7.1
MEETING DATE: October 25, 2022
CASE/FILE NUMBER: Municipal Code Amendment No. PL2022-83 PROJECT LOCATION: Citywide
APPLICATION REQUEST:

APPLICANT:

STAFF RECOMMENDATION:

Amendment to the Diamond Bar Municipal Code
by adding a new Section 5.08.050 (ShortTerm Rentals) to Title 5, and amending Section 22.80.020 (Definitions of Specialized
Terms and Phrases) of Title 22 to clarify the
existing prohibition on short-term rentals in
residential neighborhoods.

Community Development Department
Adopt the attached Resolution recommending
the City Council approve Municipal Code
Amendment No. PL2022-83.

SUMMARY:

Short-term rentals, such as those marketed through Airbnb and similar platforms, are prohibited in Diamond Bar. However, these unlawful businesses continue to proliferate.

Because it is currently difficult to prevent the establishment of short-term rentals, and nearly as difficult to prosecute violators, the City Council directed staff to identify potential solutions that would better enable the staff to eradicate short-term rentals, and thus reduce the nuisance they impose on neighborhoods.

The attached ordinance addresses the City Council’s direction by proposing the following amendments to the Diamond Bar Municipal Code (DBMC):

1. Adding definitions for “short-term occupancy” and “short-term rentals” to clarify the existing prohibition of such uses in residential neighborhoods.

CITY OF DIAMOND BAR ~ 21810 COPLEY DRIVE ~ DIAMOND BAR, CA 91765 ~ TEL. (909) 839-7030 ~ FAX (909) 861-3117

7.1 Packet Pg. 21

6.2.c
Packet Pg. 254
Municipal Code Amendment No. PL2022-83 Page 2 of 4

2. Prohibiting the advertising of short-term rentals, as well as their operation.

The proposed ordinance amends both Title 5 (Business Licensing) and Title 22 (Development Code) of the DBMC. Although amendments to Title 5 are not subject to Planning Commission review, amendments to Title 22 are, so the entire ordinance is being presented for the Commission’s consideration and recommendation to the City Council.

BACKGROUND:

Residential short-term rentals—such as those listed on Airbnb, VRBO and similar sites—have become increasingly popular in recent years. These websites provide a platform for homeowners to operate an online marketplace for lodging, primarily homestays for vacation rentals, and tourism activities. Many travelers are now using short-term rentals in lieu of more traditional commercial lodging options such as hotels, motels and bed and breakfast inns. Consequently, many communities, including Diamond Bar, are experiencing the impacts of these uses in their residential neighborhoods, including, but not limited to, excessive noise, lack of parking, safety concerns, accumulation of trash and deferred property maintenance. If homes are utilized for transient occupancy, they are no longer part of our housing stock. A reduction in permanent housing units can put an upward pressure on rental prices and negatively affect housing affordability. In addition, when short-term rentals replace traditional commercial lodging, these illegal businesses put a strain on the City’s fiscal health because they do not pay transient occupancy tax, even though they place an added burden on public services.

Short-term rentals have always been prohibited in all residential zones within Diamond Bar. The Municipal Code defines hotels and motels as “facilities with guest rooms or suites, provided with or without kitchen facilities, rented to the general public for transient lodging (less than 30 days).” By definition, a residence being rented to a tenant for fewer than 30 days, therefore, classified as a hotel/motel, and is not a permissible use in residential zones pursuant to the City’s land use table. Although the City has been enforcing the prohibition of short-term rentals to varying degrees of success, staff typically must rely on circumstantial evidence to bring forth allegations that these illegal businesses are in operation.

ANALYSIS:

Adoption Process
Before the City Council adopts an ordinance to amend the Municipal Code, the Planning Commission must first conduct a public hearing to consider the proposed amendments.

The Commission then forwards its recommendations via a resolution advising the Council whether or not the proposed amendments should be adopted.

7.1 Packet Pg. 22

6.2.c
Packet Pg. 255
Municipal Code Amendment No. PL2022-83 Page 3 of 4
As noted earlier, the proposed ordinance amends both Title 5 (Business Licensing) and Title 22 (Development Code) of the DBMC. Although amendments to Title 5 are not subject to Planning Commission review, amendments to Title 22 are, so, as a practical matter, the entire ordinance is being presented for the Commission’s consideration and recommendation to the City Council.

Proposed Amendments to Title 22 (Development Code)
Section 22.80.020. (Definitions of specialized terms and phrases) – The terms “short-term occupancy” and “short-term rental” are introduced for clarification purposes, and to expressly state that short-term rentals are prohibited in all zoning districts. With the addition of these narrowly-defined terms, it will no longer be longer necessary to rely entirely on the definition of “hotel/motel” to assert that short-term rentals are illegal in Diamond Bar. The new definitions are proposed to read as follows:
• Short-Term Occupancy. The use or possession, or right to use or possess, of any portion of a dwelling unit, room or rooms offered for remuneration for dwelling, lodging or sleeping purposes for a period of less than 30 days. Shortterm occupancy is prohibited in all residential zoning districts. • Short-Term Rental. The use of any dwelling unit, or any portion thereof, for short-term occupancy. Short-term rentals are prohibited in all zoning districts.

Proposed Amendments to Title 5 (Business Licensing)
Section 5.08.050. (Short-term rentals) – This new section expressly states that it is not only a violation of the law to operate a short-term rental in Diamond Bar, but it is also illegal to advertise short-term rentals. Prohibiting the advertising of short-term rentals will serve as a powerful enforcement tool for the City: while it may be difficult to prove that a short-term rental is being rented out, it will be very easy to provide evidence that it is being advertised on any of various listing platforms, and the City will be able to prosecute on that basis alone. The new code section should also serve as a powerful deterrent by placing would-be violators on notice that the mere act of advertising a short-term rental is a misdemeanor offense.

ENVIRONMENTAL REVIEW:

7.1 Packet Pg. 23

6.2.c
Packet Pg. 256
Municipal Code Amendment No. PL2022-83 Page 4 of 4
Section 15305 as a minor alteration in land use limitations in that it will not result in any changes in land use or density for the reasons set forth above.

NOTICE OF PUBLIC HEARING:

Notice for this hearing was published in the San Gabriel Valley Tribune newspaper on October 14, 2022, in a 1/8-page display. Pursuant to Planning and Zoning Law Government Code Section 65091(a)(4), if the number of property owners to whom a public hearing notice would be mailed is greater than 1,000, a local agency may provide notice by placing a display advertisement of at least 1/8 page in one newspaper of general circulation. A copy of the public notice was also posted at the City’s designated community posting sites.

RECOMMENDATION:

Staff recommends that the Planning Commission adopt a Resolution recommending City Council approval of Municipal Code Amendment No. PL2022-83.

PREPARED BY:

REVIEWED BY:

Attachments:

A. Draft Planning Commission Resolution No. 2022-XX (Recommending Approval of Municipal Code Amendment)

7.1 Packet Pg. 24

6.2.c
Packet Pg. 257

MINUTES OF THE CITY OF DIAMOND BAR

REGULAR MEETING OF THE PLANNING COMMISSION
OCTOBER 25, 2022
Consistent with State Assembly Bill 361, members of the Planning Commission participated in person and telephonically and Members of the public were encouraged to participate and address the Planning Commission during the public comment portion of the meeting via teleconference. For those attending the meeting in person, face coverings were recommended.

CALL TO ORDER:

Chair/Wolfe called the meeting to order at 6:30 p.m.

PLEDGE OF ALLEGIANCE: Vice Chairman Mok led the Pledge of Allegiance.

ROLL CALL: Commissioners present: Naila Barlas, Vice-Chair Kenneth Mok and Chair Raymond Wolfe

Absent: Commissioners Mahendra Garg and William Rawlings were excused.

Staff Present : Greg Gubman, Community Development Director; James Eggart, Assistant City Attorney; Grace Lee, Senior Planner; Mayuko Nakajima, Associate Planner; and Stella Marquez, Administrative Coordinator.

2. APPROVAL OF AGENDA: Chair/Wolfe

3. PUBLIC COMMENTS: Willie Wang, Mt. SAC Journalism staff member, was present to gather information to write a paper about what is happening in the City of Diamond Bar.

4. CONSENT CALENDAR:

4.1 Continued Use of Teleconferencing in accordance with Assembly Bill 361 for meetings of the Planning Commission subject to State Open Meeting Laws.

4.2 Minutes of the Planning Commission Regular Meeting of September 13, 2022.

4.3 Minutes of the Planning Commission Regular Meeting of October 11, 2022.

C/Barlas moved, VC/Mok seconded, to approve the Consent Calendar as presented with VC/Mok abstaining on Item 4.3. Motion carried by the following Roll Call vote
AYES: COMMISSIONERS: Barlas, VC/Mok, Chair/Wolfe
NOES: COMMISSIONERS: None
DRAFT

6.2.d
Packet Pg. 258
________________________________________________________________________ OCTOBER 25, 2022 2 PLANNING COMMISSION
________________________________________________________________________ ABSENT: COMMISSIONERS: Garg, Rawlings

5. OLD BUSINESS: None

6. NEW BUSINESS: None

7. PUBLIC HEARING(S):

7.1 Municipal Code Amendment No. PL 2022-83: Amendment to the Diamond Bar Municipal Code by adding a new Section 5.08.050 (Short Term Rentals) to Title 5, and amending Section 22.80.020 (Definitions of Specialized Terms and Phrases) of Title 22 to clarify the existing prohibition on short-term rentals in residential neighborhoods.

PROJECT ADDRESS: Citywide
APPLICANT: Community Development Department
AP/Nakajima presented staff’s report and recommended Planning Commission adoption of a Resolution recommending City Council approval of Municipal Code Amendment No PL2022-83, based on the findings of Fact, and subject to the Conditions of Approval as listed within the Resolution.

Chair/Wolfe opened the public hearing.

With no one present who wished to speak on this item, Chair/Wolfe closed the public hearing.

VC/Mok moved, C/Barlas seconded, to adopt a Resolution recommending City Council approval of Municipal Code Amendment No PL2022-83, based on the Findings of Fact, and subject to the Conditions of Approval as listed within the Resolution. Motion carried by the following Roll Call vote:

AYES: COMMISSIONERS: Barlas, VC/Mok, Chair/Wolfe
NOES: COMMISSIONERS: None
ABSENT: COMMISSIONERS: Garg, Rawlings

8. PLANNING COMMISSION COMMENTS/INFORMATION ITEMS:

C/Barlas asked if City permits were required for ADU rentals and CDD/Gubman responded that once the permit has been issued for construction of an ADU and the unit has passed final inspection, homeowners are free to rent out the unit.

9. STAFF COMMENTS/INFORMATIONAL ITEMS:

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________________________________________________________________________ OCTOBER 25, 2022 2 PLANNING COMMISSION
________________________________________________________________________ CDD/Gubman announced that because there were no agenda items scheduled for November 8th, the meeting would be canceled. While there are agenda items scheduled for the November 22nd meeting, it falls during the holiday week, so he asked the Commissioners if they will be attending that meeting. Chair/Wolfe responded that he would be out of town that week.

10. SCHEDULE OF FUTURE EVENTS:

As listed in the agenda.

ADJOURNMENT: With no further business before the Planning Commission, Chair/Wolfe adjourned the Regular Planning Commission meeting at 6:43 p.m.

The foregoing minutes are hereby approved this ____________________________, 2022.

Attest:

Respectfully Submitted,
_______________________________________
Greg Gubman, Community Development Director
_____________________________
Raymond Wolfe, Chairperson

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Diamond Bar City CouncilDecember 6, 2022

Diamond Bar City Council
December 6, 2022