Second Reading and Adoption of an Ordinance Amending Chapter 5.08 of the City of Goleta Municipal Code, Entitled “Short-Term Vacation Rentals”

Agenda Item B.3

CPMS CONSENT CALENDAR
Meeting Date: July 18, 2023

TO: Mayor and Councilmembers

FROM: Luke Rioux, Finance Director
Megan Garibaldi, City Attorney

SUBJECT: Second Reading and Adoption of an Ordinance Amending Chapter 5.08 of the City of Goleta Municipal Code, Entitled “Short-Term Vacation Rentals”

RECOMMENDATION:

A. Conduct second reading (by title only ) and adopt Ordinance No. 23-__, entitled “An Ordinance of the City Council of the City of Goleta, California, Amending Chapter 5.08 of the City of Goleta Municipal Code, Entitled Short-Term Vacation Rentals;” and B. Find that the adoption of the Ordinance is exempt from the California Environmental Quality Act under Guideline 15301(c) and direct staff to file a Notice of Exemption within five business days.

BACKGROUND

On February 17 , 20 15, the City Council adopted Ordinance No. 15-02 entitled “An Ordinance of the City Council of the City of Goleta, California, Adopting Chapter 8 of Title 5 of the Goleta Municipal Code Relating to Short-Term Vacation Rentals” (Attachment 1).

The ordinance was codified in Chapter 5.08 of the Goleta Municipal Code (GMC).

To increase efficiency and effectiveness of the City’s short-term rental (STR) permitting process, gain a more accurate accounting of the number of STR units in Goleta, and begin to analyze the impact of STRs on the local housing market, staff recently proposed a number of amendments to GMC Chapter 5.08 and recommended that the City seek the assistance of third-party online platforms to facilitate the short-term rental of property. On May 16, 2023, the City Council received a presentation on the proposed Ordinance (Attachment 2) and took public comment. After discussing various changes to the Ordinance, including suggested edits from the hosting platform VRBO, Council voted to introduce and conduct the first reading of the Ordinance as amended.

Subsequent to the May 16, 2023 meeting, the City received minor comments on the proposed ordinance from hosting platform Airbnb’s legal counsel which staff concurred should be included in a revised Ordinance . City staff also identified a few additional 1 Meeting Date: July 18, 2023

Page 2 of 3 ends

amendments that were clarifying for implementation of the Ordinance. In compliance with California law , on June 27, 2023 , the City Council reintroduced and conduct ed first reading, by title only, and waive d further reading of the proposed amended Ordinance.

Attachment 3 contains a copy of the staff report from that meeting, while Attachment 4 provides a copy of the Ordinance in its entirety.

DISCUSSION:

Through the process of introducing, amending and reintroducing the proposed STR Ordinance, input from the City Council, hosting platforms, the public and City staff was incorporated into the proposed regulations. The amended Ordinance recommended for second reading and adoption will replace the current STR permitting program found in GMC Chapter 5.08 with new STR l icensing regulations. In order for the Ordinance to become effective, the City Council must conduct a second reading of the Ordinance prior to adopting it. That action is now before the City Council, and accordingly, if Council conducts second reading and adopts the ordinance, i t will become effective on August 18, 2023. Staff recommends that Council conduct second reading (by title only) and adopt the Ordinance.

FISCAL IMPACTS:

While there are no immediate fiscal impacts associated with the recommended action s, the proposed ordinance aims to achieve an accurate accounting of STRs in Goleta, which will enable more effective compliance actions, and in turn will result in an increase in Transient Occupancy Tax (TOT), and potentially Tourism Business Improvement District (TBID) fees, collected by the City.

ALTERNATIVES

The City Council may wish to forego any amendments to GMC Chapter 5.08 . Doing so would limit the City’s ability to gain an accurate understanding of the actual number of STRs are operating in Goleta , whether the appropriate amount TOT and TBID fees are being collected from STRs in Goleta and the true impact of STRs on the affordable housing market in Goleta.

Reviewed By: Legal Review By: Approved By:

___________________ ___________________ _________________ Kristine Schmidt Megan Garibaldi Robert Nisbet
Assistant City Manager City Attorney City Manager

ATTACHMENTS:

1. Ordinance No. 15-02 entitled “An Ordinance of the City Council of the City of Goleta, California, Adopting Chapter 8 of Title 5 of the Goleta Municipal Code Relating to Short-Term Vacation Rentals.”
2 Meeting Date: July 18, 2023

Page 3 of 3 ends

2. GMC Chapter 5.08 Proposed Amendments Staff Report fr om the May 16, 2023 City Council Meeting.

3. GMC Chapter 5.08 Proposed Amendments Staff Report from the June 27, 2023 City Council Meeting.

4. Ordinance No. 23_, entitled “An Ordinance of the City Council of the City of Goleta, California, Amending Chapter 5.08 of the City of Goleta Municipal Code, Entitled Short-Term Vacation Rentals.”
3 ATTACHMENT 1

Ordinance No. 15-02 entitled “An Ordinance of the City Council of the City of Goleta, California, Adopting Chapter 8 of Title 5 of the Goleta Municipal Code Relating to Short-Term Vacation Rentals.”

4 5
6 7
8 9
10 11
12 13
14 15
16 ATTACHMENT 2

GMC Chapter 5.08 Proposed Amendments Staff Report from the May 16, 2023 City Council Meeting
17 Agenda Item C.1

CPMS DISCUSSION/ACTION ITEM
Meeting Date: May 16, 2023
TO: Mayor and Councilmembers
FROM: Luke Rioux, Finance Director
Megan Garibaldi, City Attorney
SUBJECT: Short-Term Vacation Rentals Ordinance Amendments and Voluntary Collections Agreement with Airbnb
RECOMMENDATION:

A. Introduce and conduct first reading (by title only) and waive further reading of Ordinance No. 23-___ entitled “An Ordinance of the City Council of the City of Goleta, California, Amending Chapter 5.08 of the City of Goleta Municipal Code , Entitled Short-Term Vacation Rentals;” and
B. Find that the adoption of the Ordinance is exempt from the California Environmental Quality Act under Guideline 15301(c) and direct staff to file a Notice of Exemption within five business days; and
C. Authorize staff to negotiate and execute a voluntary collection agreement with Airbnb in substantially the same form as the provided draft.

BACKGROUND
Existing Short-Term Vacation Rental Ordinance:

The ordinance was codified in Chapter 5 .08 of the Goleta Municipal Code ( GMC) and requires property owners to obtain a regulatory permit before renting a residential dwelling unit for less than 30 days. Owner-occupied residential dwelling units are exempt from the permit requirement in the ordinance and can be rented without a permit, though the owner must obtain a Goleta business license . A short-term vacation rental ( STR) permitting program was created for non-owner occupied dwelling units to:
 Educate property owners of their obligations in operating an STR;  Notify neighbors and give them a n opportunity to object to the proposed use of a neighboring property as an STR;
1 18
Meeting Date: May 16, 2023

Page 2 of 11 ends

 Create a database to ensure compliance with the ordinance, as well as with tax collection and remittance obligations; and
 Provide a procedure for revocation of a permit in the event that the use of a property as an STR is in violation of Ordinance No. 15-02.

This program is ad ministered by the City’s Finance Department. To receive a permit, applicants are required to:
 Provide a nuisance response plan;
 Obtain a Transient Occupancy Tax Registration Certificate from the Finance Department;
 Acquire a bond in the amount of $1,500;
 Remit a one-time application fee of $326;
 Submit proof that all properties within 200 feet have been notified of the application; and
 Obtain a City of Goleta annual business license, subject to annual renewal.

STRs are subject to a 12 percent Transient Occupancy Tax (TOT) as well as a Santa Barbara South Coast Tourism Business Improvement District (TBID) assessment. The property owner or owner’s agent is responsible for the collection and remittance of the TOT and the TBID assessment. The current TBID assessment for vacation rentals is two percent of the rental rate per night. Effective March 1, 2023, a modification to the definition of “gross short -term room rental revenue” was made for the TBID assessment. The assessment now only applies specifically to the room rental itself and not t o other mandatory fees that are included in the overall rental rate for TOT purposes. Below is a comparison detailing the differences:

City 12% TOT Always Applies To:
 Nightly Rent
 Mandatory (Non-Discretionary)
Parking Charges
 Resort / Destination Fees
 Additional Occupancy Fees
 Mandatory Cleaning Fees
 Non-Refundable Deposits
 Cancellation / Group Attrition Charges
 Early Arrival / Late Departure Fees
 No-show Fees
 Pet in Room / Pet Cleaning Fees
 Rollaway Bed/Crib Fees
 In Room Equipment Rental Fees
TBID 2% Assessment Only Applies To:
 Nightly Rent
In the current program, permits specify the maximum number of overnight occupants and vehicles allowed for the rental. The maximum number of occupants is limited to two, plus 2 19
Meeting Date: May 16, 2023

Page 3 of 11 ends

two for each bedroom. The maximum number of vehicles is limited to the number of off - street parking spaces available on the property.

Status of Current STR Program:

To date the City has issued 72 STR permits, though they are not all currently active. Table 1 below indicates the number of active versus inactive permits.

Table 1
Permit Status

PERMIT STATUS
Non-
Owner
Occupied
Owner
Occupied Total
Active 5 23 28
Inactive 12 24 36
Pending 2 4 6
Revoked/Terminated 0 2 2
Total 19 53 72
In addition, Finance Department and Code Compliance staff have identified another 38 addresses that they believe are possibly operating as unpermitted STRs. Including these units in the inventory of STRs in Goleta would bring the total to 113 that have engaged in STR activity.

To date, the City has received a total of $323,73 5 in TOT from STRs since FY 1 5/16. In addition, $21,013 in STR permit fees and $2,579 in General Business License fees have been collected from the permitted STR units in Goleta during the same time period .

Therefore, all revenue associated with the STR program since its inception currently totals $347,327. Table 2 below compares STR- and Hotel-related activity for the same period, from FY 15/16 through April 2023.

Table 2
Summary of License and Permit Fees and TOT
FY 15/16 – FY 22/23
(thru April 2023)
STR Hotels Total % from
STR
General Business
License Fees
$2,579 $11,101 $13,680 19%
STR Permit Fees $21,013 Not applicable $21,013 100%
Total License and
Permit Fees
$23,592 $11,101 $34,693 68%
TOT $323,735 $80,059,878 $80,383,613 0.4%
Total Fees and TOT $347,327 $80,070,979 $80,418,306 0.4% Note: General Business License Fees and STR Permit Fees are cost-recovery regulatory fees charged by the City for reviewing the application . Review includes Planning, Code Compliance, Building and Safety and Finance.

Enforcement – Short-Term Rental Permits:

Since the inception of the STR program, the City has employed a tiered enforcement framework to pursue compliance with the existing ordinance. This framewor k includes 3 20

Meeting Date: May 16, 2023

Page 4 of 11 ends

temporary proactive monitoring and inspection, as well as respon se to complaints and reported violations. The framework consists of the following:

 Education and outreach:
o Notification mailers were mailed out in 2016 as part of a partnership with the Santa Barbara Association of Realtors (SBAOR).
o Information and guidance are posted on the City’s website , explaining owner-occupied and non-own-occupied regulations, registration processes, and ongoing monthly-reporting requirements.

 Inspection and monitoring:
o The Finance Department previously utilized staff and interns to assist with identifying unlicensed operators on the major short -term rental websites and reconciling records. However, this process ended before the onset of the pandemic as the Finance department was short -staffed due to employee turnover. In addition, the department was subjected to a hiring freeze during the first fiscal year of the pandemic.
o Finance is currently discussing options for assistance with ongoing monitoring and education efforts. A voluntary collections agreement with Airbnb could greatly assist with these efforts.

 Code Compliance
o Violation Detection an d Notification : When a violation is detected, either through inspection or a complaint, the City notif ies the operator in writing.

The notice details the violation and provides a deadline for the operator to correct the issue.
o Violations are tracked with Code Compliance staff.
o Initial letters are sent by Finance in cases where the required registration of an STR has not occurred. Subsequent letters are sent by Code Compliance for follow u p and issuance of a Notice of Violation if there is no response after Finance’s letters are sent.

 Enforcement Actions and Penalties: If an operator fails to correct a violation within the specified timeframe, the City may impose penalties, which may include:
o Fines: Code Compliance may issue an administrative citation, which includes a monetary penalty.
o License Suspension: The operator's short -term rental license may be suspended for a specified period or until the violation is corrected. o License Revocation: In cases of severe or repeated violations, the operator's short-term rental license may be permanently revoked. o If Code Compliance staff is not able to obtain the operator’s voluntary compliance in correcting the violation the matter is referred to the City Attorney’s Office for appropriate legal action.
4 21

Meeting Date: May 16, 2023

Page 5 of 11 ends

Enforcement – TOT and TBID Assessments:

The collection of TOT is required by GMC Chapter 3.06 - Transient Occupancy Tax .

Collection of the TBID assessment is required by the Santa Barbara South Coast Tourism Business Improvement District Management District Plan (MDP) that was last renewed on March 29, 2022 by Resolution No. 22 -12 entitled “A Resolution of the City Council of the City of Goleta, California, Granting Consent to the City of Santa Barbara to Renew the Santa Barbara South Coast Tourism Business Improvement District.” The TOT and TBID assessments apply to all short-term rental activities, whether in a hotel or vacation rental. The following section outlines the requirements and collections framework of TOT:

 Collection and Remittance:
o Operators are required to collect TOT from guests and remit the collected tax to the City on a monthly basis.
o Operators must maintain accurate records of all transactions, including guest information, rental fees, and TOT collected, for at least three years. o Operators must fil e regular TOT returns with the City even if no TOT was collected during the reporting period.

 Penalties and Collection Actions for Late Filing or Payment:
o Failure to file a TOT return or remit collected tax on time may result in penalties and interest. Penalties typically range from 10% to 25% of the unpaid tax, with interest accruing at 0.5% on a monthly basis.
o If an operator fails to collect TOT from a gue st, the operator may be held personally liable for the tax.

 Audits and Assessments:
o The City may audit operators to ensure compliance with TOT regulations. o If an audit reveals underpayment or nonpayment of TOT, the City may issue a notice of determination, which includes the tax owed, penalties, and interest.

 Collection Actions and Enforcement:
o The City has authority to pursue various collection actions to recover unpaid TOT, including property liens, wage garnishments, and bank levies. In some cases, local governments may initiate legal proceedings to collect unpaid taxes. o Collection of Unpaid Taxes - Section 7283.51 of the California Revenue and Tax Code states that local governments have the authority to collect unpaid TOT for up to four years from the date on which the tax became due. This statute of limitations means that cities and counties cannot pursue collection actions for TOT that has been unpaid for more than four years. However, it is important to point out that this four-year limitation does not apply in cases of fraud or failure of a property owner to file the TOT return. Thus, the City can go back as far as necessary to collect unpaid taxes from an owner or operator who fails to file a return or who commits fraud.
o Code Compliance staff also assists with any failure to pay back taxes as required by GMC Chapter 3.06 Transient Occupancy Tax and state law.

5 22

Meeting Date: May 16, 2023

Page 6 of 11 ends

DISCUSSION:

To increase efficiency and effectiveness of the City’s current STR permitting process, gain a more accurate accounting of the number of STR units in Goleta, and begin to analyze the impact of STRs on the local housing market, staff has explored a number of amendments to GMC Chapter 5.08 (included in Attachment 2), as well as the possibility of contracting with third -party online platforms, such as Airbnb, that facilitate the short - term rental of property.

Ordinance Amendment:

The proposed ordinance will amend GMC Chapter 5.08 to:

 Clarify that going forward, the City will issue short-term rental licenses instead of permits and require licenses for all STRs within the city limits, including those that are owner-occupied. Given that Chapter 5.08 is under Title 5 Business Licenses and Regulations, and because it is more typical for cities to regulate the business operations of STRs through business-licensing programs, staff recommends that, starting the first day that the ordinance amendment becomes effective, the City issue short-term vacation rental licenses instead of permits.  Add a standalone licensed occupancy section to clarify the number of occupants allowed per STR. The number of occupants has not changed from what the City council previously approved in Ordinance No. 15-02 but is called out more clearly than in the original version of the ordinance.
 Clarify that the Finance Director is authorized to amend the requirements for the application and supporting documentation as the Finance D irector deems appropriate.
 Clarify the appeals process.
 Streamline t he text regarding performance standards and remove language referencing the creation of a property interest in potential increased occupancy as it does not apply to STR uses.
 Add provisions to expressly acknowledge that the City may enter into agreements with STR online platforms, and to outline expected obligations, which include that:
o Online platforms must obtain a business license in order to host any listing for a short-term vacation rental within the City.
o An online platform that lists a short-term vacation rental in the City must provide a separate field in its onlin e platform for the individual host to enter the City license number applicable to the STR in the listing form. o Before allowing an individual host to list a short-term vacation rental, an online platform must advise the host of the following:
 The City regul ates short-term vacation rentals, and a short -term vacation rental in Goleta must have a valid license from the City.  The host (not the platform) is responsible to provide the City license in the listing, or the listing will be taken down, and failure to p rovide a valid City license with the listing may also subject the host to civil and criminal 6 23

Meeting Date: May 16, 2023

Page 7 of 11 ends

enforcement action by the City, in addition to restrictions by the online platform.
o Subject to applicable laws, online platforms must disclose to the City details about each short-term vacation rental listing located in city limits, including the contents of the City license number field, the host ID, listing ID, the length of each stay for each such listing (with dates), and the price paid for each stay. o If, in the course of facilitating a booking transaction, an online platform collects rent from a tenant, the online platform must also collect and at least monthly remit the TOT and TBID fees to the City.
 Refine language on fines to state that the City Counc il may authorize fines for misdemeanors, infractions, and administrative citations specific to violations of this chapter, in the maximum amounts and to the maximum extent allowed by law.

Short-Term Vacation Rental License Clarification:

The following compares the current and proposed requirements:

Current Requirements:

Non-Owner Occupied (Un-hosted)
(Rent 30 days or less)
Owner Occupied (Hosted)
(Rent 30 days or less)
• STR Permit and Ordinance
Requirements Apply
• General Business License
• TOT Certificate
• Collect and Remit TOT & TBID
Forms and Taxes
• General Business License
• TOT Certificate
• Collect and Remit TOT & TBID Forms
and Taxes

Proposed Requirements:

Non-Owner Occupied (Un-hosted) & Owner Occupied (Hosted) (Rent 30 days or less)
• STR License and Ordinance Requirements Apply
• TOT Certificate
• Collect and Remit TOT & TBID Forms and Taxes
Note: All STR operators will be subject to the STR Ordinance.

Uniform License Type and Revised Fee Schedule:

As the City has implemented its existing short-term vacation rental program, staff has learned that it is extremely difficult, if not impossible, to know whether or not the owner stays on site during the short -term rental period. Often owners are confused about this requirement, and staf f have found that most of those who claim owner-occupied units leave during the rental period. Therefore, staff recommend that a single license be issued to all STR operators, regardless of owner-occupancy, and that one fee be applied.

As proposed, the updated ordinance will uniformly apply to those engaged in short -term vacation rental activity. The short-term vacation rental license will be issued on a calendar year basis, valid from January 1 (or the issuance of the license) through December 31.

Since this is a regulatory license and fee, there is no pro-ration of the fee. 7 24

Meeting Date: May 16, 2023

Page 8 of 11 ends

Staff recommends that t he City consolidate its STR approvals into a single Short-Term Vacation Rental License, rather than requiring hosts to obtain both a General Business License (at a cost of $221) and a Short-Term Rental Permit (at an additional cost of $326), as the City has done in the past . Staff recommends that the fee for the consolidated license be set now at $326 (the same as the STR Permit fee) , since only one approval (the license) will be processed.

The annual-renewal license fee is recommended to cost the same as the new license at the rate of $326, since the surety bond, nuisance -response plan, and the size of area being rented out (whether one bedroom or an entire dwel ling) must be verified for compliance with the ordinance annually. The renewal application essentially goes through the same multi-department regulatory review process as a new application (with a similar amount of staff time spent), so charging the same rate as the initial application is justified.

The license (currently permit) fee is currently listed in the City's user fee schedule and will be part of the annual update process.

Consolidating approvals into one license with one fee will make it simpler and less costly for applicant s (which will facilitate compliance with the ordinance) and will be more efficient for staff to administer. In addition, uniformly applying the ordinance will make it clear to owner-occupied hosts that the short -term rental ordin ance does apply to them, including the obligation to collect and remit TOT and TBID assessments.

Online Platforms and Voluntary Collection Agreements:

Online platforms, such as Airbnb, can assist with collection and remittance of TOT and TBID assessments, disclosure of information related to listings on their websites (subject to applicable laws), and prevention of listing of short-term rentals that are not licensed by the City.

GMC Chapter 5.08 does not expressly anticipate voluntary collection agreements (“VCAs”); therefore adoption of the proposed ordinance is recommended to facilitate the use of VCAs with platforms such as Airbnb. A proposed draft of an agreement to be negotiated with Airbnb is attached hereto as Attachment 3. If the City Council wishes to have Airbnb provide these services for the City of Goleta, authorization for staff to negotiate and execute a VCA in substantially the same form as the attached is recommended.

A VCA would enable (and obligate) Airbnb to collect TOT and the TBID assessment for bookings executed through its platform and remit those taxes directly to the City. As proposed, the VCA would also require Airbnb to include a field in its booking platform that will allow hosts to input th eir City STR license number when setting up a listing on the platform. It would also r equire Airbnb to display the contents of that field . And Airbnb would be obligated to take down any STR listing if the City identifies it as not having a valid STR license number. The VCA would also require Airbnb to communicate with hosts regarding the City’s short-term rental license regulations.

8 25

Meeting Date: May 16, 2023

Page 9 of 11 ends

Airbnb would also be required to send monthly reports to the City that include information for each listing and each transaction for each listing, including the contents of the STR license field.

The most important feature of the proposed Agreement is that it would require Airbnb to remove unlicensed listings from being displayed on its website. Every listing located in the City will have to include a n STR license number, and if the City discovers that a fraudulent, expired, or revoked license number is listed, the listing will have to be taken down by Airbnb. As it is easier to prevent, and act against, illegal listings under a system such as that proposed by the Agreement (where the online platform requires a license field to be completed in order to post a listing and agrees to remove illegal listings), other jurisdictions such as Santa Monica and Los Angeles have entered agreements similar to the one proposed here.

The monthly reports from Airbnb will also allow Finance and Code Compliance staff to quickly identify new listings on Airbnb and immedi ately report them to Airbnb if they are unpermitted. This will provide an additional level of scrutiny to the listings on Airbnb and help ensure any unpermitted listings are identified and removed quickly.

If the system proposed by the Agreement does not result in the elimination of illegal listings to the satisfaction of the City Council, it can terminate the Agreement. The Agreement may be terminated by the City with 30-day notice.

Next Steps and Future Updates to the STR Program:

It should be noted t hat the recommended voluntary collections agreement discussed above will help with future ongoing reporting and remittance of TOT and TBID fees, and with identification of operators that are not registered, but the VCA will not help with collection of back taxes. Therefore, s taff will be working with consultants to ensure compliance with TOT and TBID assessment regulations, and to ascertain the amount of unpaid taxes owed by STR operators to the City . Staff will then work with Code Compliance, the City Mana ger’s Office and the City Attorney’s Office on a plan for collecting back taxes.

The following is a summary list that outlines future work efforts regarding the STR program, assuming City Council approves the proposed ordinance amendment and authorizes staff to proceed with the proposed voluntary collections agreement.

Phase 1:
 Negotiate and execute a VCA with Airbnb that is in substantially the same form as the attached.
 Implement the voluntary collections agreement and review and reconcile the first month’s data.
 After review and depending on findings, update proposals and scope of work with consultants on assistance with ongoing education efforts, monitoring and compliance, assessing unpaid TOT and TBID and collection efforts , assist with data filtering and obtaining specific information needed on how properties are being utilized for STR activity.
9 26

Meeting Date: May 16, 2023

Page 10 of 11 ends

Phase 2:
 Review and analyze STR data and work with consultants and City staff in evaluating the overall STR program and related STR ordinances.  Discuss results and findings with the City Council and receive feedback on policy direction and potential further STR ordinance updates . A future additional ordinance would address identified issues regarding STR impacts on residential neighborhoods and the City’s existing housing stock. Potential regulations to be considered include, but are not limited to, STR rental caps (citywide or by area in Goleta), separation requirements between STRs, owner -occupant requirements, different regulations based on the t ype of STR (entire unit, guesthouse, or bedroom), and limits on the number of STRs owned or operated by one person or entity.

Phase 3:
 Depending on outcome of Phase 2 and City Council direction, work with the City Manager’s Office, the City Attorney’s Office and the Planning and Environmental Review Department in updating the STR ordinances and program changes for City Council consideration, approval, and implementation.

FISCAL IMPACTS:

While there is no immediate fiscal impact associated with the recommended actions, the proposed ordinance and agreement with Airbnb are aimed at achieving a more accurate accounting of STRs in Goleta, which will enable more effective compliance actions, and in turn will result in an increase in TOT and TBID fees collected by the City.

ALTERNATIVES

The City Council may wish to forego any amendments to GMC Chapter 5.08, and not approve or enter into a voluntary collections agreement with Airbnb or any other online STR online platform. Doing so would limit the City’s ability to gain an accurate understanding of:

 How many STRs are operating in Goleta;
 Whether the appropriate amount TOT and TBID fees are being collected from STRs in Goleta; and,
 The true impact of STRs on the affordable housing market is in Goleta.

Reviewed By: Legal Review By: Approved By:

___________________ ___________________ _________________ Kristine Schmidt Megan Garibaldi Robert Nisbet
Assistant City Manager City Attorney City Manager

10 27

Meeting Date: May 16, 2023

Page 11 of 11 ends

ATTACHMENTS:

2. Ordinance No. 23_, entitled “An Ordinance of the City Council of the City of Goleta, California, Amending Chapter 5.08 of the City of Goleta Municipal Code, Entitled Short-Term Vacation Rentals.”

3. Draft Voluntary Collection Agreement for City of Goleta, California.

4. Staff Presentation

11 28
ATTACHMENT 1:

12 29
13 30
14 31
15 32
16 33
17 34
18 35
19 36
20 37
21 38
22 39
23 40
24 41
ATTACHMENT 2:

Ordinance No. 23_, entitled “An Ordinance of the City Council of the City of Goleta, California, Amending Chapter 5.08 of the City of Goleta Municipal Code, Entitled Short-Term Vacation Rentals.”

25 42

ORDINANCE NO. 23-_

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
GOLETA, CALIFORNIA, AMENDING CHAPTER 5.08 OF THE

GOLETA MUNICIPAL CODE , ENTITLED SHORT-TERM

VACATION RENTALS

WHEREAS on February 17, 2015, the City Council adopted Ordinance No. 15-02 relating to short-term vacation rentals; and
WHEREAS the ordinance was codified in Chapter 5.08 of the Goleta Municipal Code and requires property owners to obtain a regulatory permit before renting a residential dwelling unit for less than 30 days; and WHEREAS owner-occupied residential dwelling units were exempted from the permit requirement in the ordinance and could be rented without a permit; and WHEREAS a short-term vacation rental (STR) permitting program was created for non-owner occupied dwelling units to educate property owners of their obligations in operating an STR, notify neighbors and give them an opportunity to object to the proposed use of a neighboring property as an STR, create a database to assure compliance with the ordinance and tax collection and remittance obligations, and provide a procedure for revocation of a permit in the event that the use of a property as a STR is in violation of Ordinance No. 15-02; and WHEREAS, permits specify the maximum number of overnight occupants and vehicles allowed per rental; and
WHEREAS, STRs are subject to a 12 percent Transient Occupancy Tax (TOT) as well as a Santa Barbara South Coast Tourism Business Improvement District (TBID) assessment; and
WHEREAS, in order to increase efficiency and effectiveness of the City of Goleta’s STR permitting process, and to maintain an accurate accounting of the total number of STR units in Goleta, the City explored the possibility of contracting with a third -party Internet-based STR booking platform to facilitate reporting, collection, and remittance of applicable TOT, TBID, and sales taxes on behalf of all hosts of both owner-occupied and non-owner occupied units, and to ensure that all hosts operate in Goleta, California in accordance with City regulations and applicable law; and
WHEREAS, the City Council finds that modifications to Chapter 5.08 would make administration of the provisions of Chapter 5.08 more efficient; ensure uniform application of STR requirements , including collection of data, TOT, TBID assessments, and sales taxes ; and better facilitate voluntary collection agreements.
26 43

Ordinance No. 23-_ Amending Chapter 5.08 Entitled ‘Short-Term Vacation Rentals’

2 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GOLETA DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. Title 5, Chapter 5.08 of the Goleta Municipal Code, Short-Term Vacation Rentals, is amended to read in its entirety:

Chapter 5.08 SHORT-TERM VACATION RENTALS

5.08.010 Authority and Purpose.

This chapter is adopted pursuant to the police powers of the City for the purpose of requiring the owner or owners of a residential dwelling unit that is used as a short-term vacation rental, as defined herein, to apply for and secure a license authorizing such use in the manner provided for by this chapter. The City seeks to facilitate short -term vacation rentals while promoting responsible visitor and operator behavior and protecting the long -term residential character of its neighborhoods.

5.08.020 Definitions.

The definitions set forth in this section shall govern the meaning and construction of the words and phrases used in this chapter, except where the context of such words and phrases clearly indicates a different meaning or construction:

1. “Hosting platform” means a person or entity who participates in short- term vacation rentals by collecting or receiving a fee, directly or indirectly through an agent or intermediary, for conducting a booking transaction using any medium of facilitation. Examples include, but are not limited to, VRBO.com, Airbnb.com, homestay.com and other internet and non-internet based services that facilitate bookings for a fee.

2. “License administrator” means the City Finance Director or such other City employee as may be designated by the City Manager to administer the provisions of this chapter. The license administrator shall have the authority to make interpretations and to promulgate guidelines in order to facilitate orderly administration of this chapter.

3. “Owner of a short-term vacation rental” or “owner” means the person or persons holding fee title to a dwelling unit operated and used as a short-term vacation rental, or a person or persons holding the lease 27 44

Ordinance No. 23-_ Amending Chapter 5.08 Entitled ‘Short-Term Vacation Rentals’

3 estate to a dwelling unit and operating and using the leased dwelling unit as short-term vacation rental, or the agents of any such persons.

4. “Short-term vacation rental” means a dwelling unit other than a dwelling unit located in a hotel, as those terms are defined in this Code, that is rented to a tenant for a period of not more than 30 consecutive days.

5.08.030 License Required.

1. No owner or owners of a short -term vacation rental shall rent, offer to rent, or advertise for rent a short-term vacation rental to another person without a license approved and issued in the manner provided for by this chapter.

2. Any valid short-term vacation rental license that is issued under this chapter before July 6, 2023 is considered a short -term vacation rental license under this chapter.

3. A short-term vacation rental license shall be valid until December 31 in the year in which it is first issued and upon renewal it is valid for a period of one year from January 1 through December 31 of each year, unless sooner revoked. A license under this section does not confer any vested right to any person for more than the above - referenced period.

4. No short-term vacation rental license shall be renewed automatically.

It shall be the responsibility of the host to renew the license prior to the end of each calendar year and submit an updated application or renewal form and any applicable fee.

5. A short -term vacation rental license shall be i ssued only to the specific person listed on the application.

6. A short-term vacation rental license may not be transferred from one person to another. A short-term vacation rental license does not run with the land. Except as provided in Goleta Municipal Code Sections

5.01.300 and 5.01.310, any change to the organizational structure of the owner or any change of ownership of the short -term vacation rental requires a new short-term vacation rental license.

28 45

Ordinance No. 23-_ Amending Chapter 5.08 Entitled ‘Short-Term Vacation Rentals’

4 5.08.040 License Applications.

Applications for a license required by this chapter shall be in a form and contain the informati on required by the license administrator, and shall be accompanied by the following:

1. A nuisance response plan containing the information required by this chapter;

2. A transient occupancy registration certificate issued by the City Finance Director pursuant t o Chapter 6 of Title 3 of the Goleta Municipal Code;

3. A surety bond in the amount of $1,500.00 issued by a responsible surety company and in the form required by this chapter;

4. A license application fee in an amount established in the manner provided for by this chapter; and

5. A written declaration affirming that, at least 30 days prior to issuance of the license, occupants of all residences and businesses located within 200 feet from the proposed short -term vacation rental have been notified of the proposed li cense and have been informed in writing in a form acceptable to the City of the proposed use and the contact information with the City to seek additional information or register concerns or objections.

5.08.050 License Fees.

All license application fees and the fees charged incident to the amendment of a nuisance response plan shall be established by the City Council.

5.08.055 Licensed Occupancy.

Every license shall specify the maximum number of overnight occupants allowed at the short -term vacation rental and the maximum number of vehicles associated with the overnight occupancy of the short -term vacation rental which can be parked at the property. Notice of issuance of the license shall be provided to everyone who files a written request for such notice. 29 46

Ordinance No. 23-_ Amending Chapter 5.08 Entitled ‘Short-Term Vacation Rentals’

5 5.08060 Nuisance Response Plans.

1. Each nuisance response plan accompanying an application for a license required by this chapter shall contain the following information and otherwise be in a form required by the license administrator.

A. The mailing address and telephone number of the owner or owners of the residential dwelling unit or units to be used as a short-term vacation rental pursuant to the license.

B. The name, address and telephone number of the person or persons who will be available by telephone, an d who will be responsible for promptly responding to or causing a prompt response to a nuisance complaint arising out of the
occupancy or use of the short-term rental(s) by tenants, their visitors and/or their guests. For the purposes of this chapter, a return telephone call to a complainant within 30 minutes of the initial complaint shall be deemed “prompt.”
(1) No more than a total of three persons shall be
designated in the response plan as a person
responsible for responding to or causing a response to
a nuisance complaint; and
(2) Only one such person shall be designated as the
person responsible for responding to a nuisance
complaint during any particular hours of the day,
different days in a week, and/or different weeks of the year.

C. The manner of responding t o or causing a response to a nuisance complaint, including, but not limited to, the manner in which the complainant or complainants will be notified of the response and the method of documenting prompt
responses and timely corrective action.

D. The manner of assuring timely corrective action to remedy the conditions that caused the nuisance complaint. For the
purposes of this chapter, “timely corrective action” shall include, at a minimum, a telephone call to the primary adult occupant of the short -term vacation rental within 30 minutes of the initial nuisance complaint.

E. The proposed maximum number of overnight occupants, with supporting documentation identifying unusual size, interior 30 47

Ordinance No. 23-_ Amending Chapter 5.08 Entitled ‘Short-Term Vacation Rentals’

6 layout, parking or other physical characteristics, if any, that support a request for occupancy greater than two persons per bedroom, plus two additional persons.

F. The number of off -street parking spaces and number of bedrooms available at the short-term vacation rental.

2. At any time, the owner or owners of a short-term vacation rental may change the content of the nuisance response plan approved incident to the issuance of the license by filing an amended response plan with the license administrator. Such amended response plan shall contain all of the information and be in the form required by Section 0 of this chapter, and shall be accompanied by an amended response plan fee in an amount established in the manner provid ed for by this chapter.

5.08.070 Notice of Nuisance Response Plans.

Promptly following the approval and issuance of a license required by this chapter, or the approval of an amended nuisance response plan in the manner provided for by this chapter, the license administrator shall require the applicant to provide proof that the nuisance response plan has been mailed by first class mail addressed to the owner or occupant of every property, any part of which is located within a 200-foot radius of the property that is to be used and occupied as a short- term vacation rental, pursuant to such license.

5.08.080 Grounds for Denial or Revocation of License.

1. Upon receipt of an application for a license required by this chapter, the license administrator will review the application and supporting documents and will approve and issue a license to the owner or owners of the property that is the subject of the application that authorizes the use and occupancy of such property as a short -term vacation rental if the licens e administrator finds that the required application fee has been paid, and that the nuisance response plan and surety bond submitted with the application conform to the city’s requirements.

2. The finance director is hereby authorized to promulgate requirements to implement the intent of this provision and may amend them from time to time as the director deems appropriate. 31 48

Ordinance No. 23-_ Amending Chapter 5.08 Entitled ‘Short-Term Vacation Rentals’

7 3. A license shall be denied if a short -term vacation rental license issued to the applicant or for the property has been suspended or revoked in the prior 24 months.

4. A license shall be denied if the residential dwelling unit proposed as a short -term vacation rental was established through Section

17.07.040(B).

5.08.085 Performance Standards.

Each owner, and each tenant or occupant of a short -term vacation rental, shall at all times comply with or cause compliance with the performance standards applicable to short-term vacation rentals they own, lease or occupy, as established by this section.

5.08.090 Appeals.

Any party may file a written req uest for a hearing before the City Manager within 10 days following a decision by the City to grant a short-term vacation rental license. The public shall be provided notice of the hearing consistent with the requirements of this Code. The hearing shall be opened no more than 45 days following the request for hearing being received by the City. A decision shall be made by the City Manager or designee within 10 days of the hearing. The decision of the City Manager shall be final.

1. The owner shall ensure that the short-term vacation rental complies with all current applicable codes regarding fire, building and safety, and all other relevant laws and ordinances.

2. No person shall list, offer to rent, or advertise for rent a short -term vacation rental without including in the listing, offer, or advertisement the City license number applicable to the short -term vacation rental property in the form “Goleta License No. ____________.” The license number shall be displayed or printed in the same size type as the largest type used in the main body of the offer or advertisement.

3. The owner shall require the primary overnight and daytime occupant of the short -term vacation rental to be an adult 18 years of age or older. This adult shall provide a telephone number to the owner and shall be accessible to the owner by telephone at all times. 32 49

Ordinance No. 23-_ Amending Chapter 5.08 Entitled ‘Short-Term Vacation Rentals’

8 4. Prior to occupancy, the owner shall obtain the name, address, and driver’s license number or a copy of the passport of the primary adult occupant of the short -term vacation rental. The owner shall require that adult to sign a formal acknowledgement that he or she is legally responsible for compliance of all occupants of the short -term vacation rental or their guests with all provisions of this chapter. This information shall be provided by the responsible party identified in the nuisance response plan upon request of any police officer or employee of the City authorized to enforce this chapter or State law.

5. The owner shall limit overnight occupancy of the short-term vacation rental to a specific number of occupants, with the maximum number of overnight occupants being two persons per bedroom, plus two additional persons.

6. The owner shall limit the number of vehicles associated with the overnight occupancy of the short-term rental to a specific number of vehicles, with the maximum number of vehicles being the number of off-street parking spaces available at the property.

7. Trash and refuse shall not be left stored within public view, except in proper containers for the purpose of collection on schedu led trash collection days. The owner of the short -term vacation rental shall provide sufficient trash collection containers and service to meet the demand of the occupants.

8. Each lease or rental agreement for a short-term vacation rental shall include the f ollowing terms, notifications and disclosures, which terms shall also be posted in a conspicuous location inside the unit:

A. The maximum number of overnight occupants and day use visitors that are permitted.

B. The maximum number of vehicles that overnight occu pants may park at the short-term rental.

C. Notification that on-street parking is extremely limited in some areas of the City.

D. The trash pick -up day and applicable rules and regulations pertaining to leaving or storing trash or refuse on the exterior of the property.
33 50

Ordinance No. 23-_ Amending Chapter 5.08 Entitled ‘Short-Term Vacation Rentals’

9 E. Notification that the occupant may be cited or fined by the City and/or immediately evicted by the owner pursuant to State law, in addition to any other remedies available at law, for violating any other provisions of this chapter.

F. Notification t hat failure to conform to the occupancy requirements of the short-term vacation rental is a violation of this chapter.

G. Notification that amplified sound, including radios, televisions and other electronic devices are subject to the City’s Noise Ordinance a s set forth in Goleta Municipal Code Section

9.09.020.

H. A prohibition on illegal loud parties, along with notification of the City’s right to recover the costs of special enforcement needed to address certain loud parties.

I. The name of the managing agency, a gent, rental manager, local contact person, or owner of the unit, and a telephone number at which that party may be reached at all times.

J. A copy of the “Good Neighbor Guidelines” which may from time to time be prepared by the license administrator. These guidelines may include location -specific information, such as neighborhood quiet hours, local speed limits and the
prohibition of fires and fireworks in beach areas.

K. Notification that the property is part of the City of Goleta’s Short-Term Vacation Rental Program.

L. A copy of this chapter of the Goleta Municipal Code, as it may be amended from time to time.

9. Upon receipt of a nuisance complaint or upon notification of an allegation that any occupant or guest of the short -term vacation rental has created unreaso nable noise or disturbances, engaged in disorderly conduct, or committed violations of the Goleta Municipal Code or any State law, the owner shall promptly respond and take timely corrective action to prevent a recurrence of such conduct by those occupants or guests. Failure of the owner to respond promptly or to take timely corrective action regarding the condition, operation, or conduct of occupants of the short -term vacation rental shall be a violation of this chapter. An owner is not required or authorized to act as a peace officer or to intervene in situations that pose a risk to 34 51

Ordinance No. 23-_ Amending Chapter 5.08 Entitled ‘Short-Term Vacation Rentals’

10 personal safety. The owner, or his or her agent, shall maintain records of the name, violation, date, and time of each complaint, disturbance, response and corrective action.

10. The owner shall cause a copy of the nuisance response plan to be posted in a conspicuous place within the property.

11. The owner shall annually provide to the license administrator written confirmation of compliance with all elements of the performance standards and the approved nuisance response plan and confirming that the nuisance response plan is current and accurate.

12. The performance standards may be modified by the license administrator upon request of the owner based upon site -specific circumstances for t he purpose of allowing reasonable
accommodation of a short-term vacation rental occupant as may be required by State or Federal disability laws. All requests must be in writing and shall identify how the strict application of the standard conditions creates an unreasonable hardship to a property such that, if the requirement is not modified, reasonable use of the property for a short-term vacation rental would not be allowed.

5.08.100 Surety Bonds.

1. Each surety bond accompanying an application for a license required by this chapter shall be issued by a surety licensed to do business in the State of California that has an A.M. Best Financial Strength Rating of at least “A -”, shall name the city as the bond obligee, and shall be conditioned on the payment of a ny administrative fine assessed in the manner provided for by Chapter 1.02 of this Code within the time provided for therein if:

A. The administrative fine was assessed either against the licensee or against any tenant or other person occupying or using the s hort-term vacation rental operated pursuant to such license; and
B. Arose out of a violation of this chapter, or the occupancy or use of such short -term vacation rental in a manner that violated any provision of this Code.

2. At any time following the issuance of a license required by this chapter, the licensee may file a substitute surety bond with the 35 52

Ordinance No. 23-_ Amending Chapter 5.08 Entitled ‘Short-Term Vacation Rentals’

11 license administrator issued by a surety that meets the requirements of this section. Upon determining that such substitute bond conforms to such requirements, the license administrator shall return the bond being replaced by the substitute surety bond to the licensee.

5.08.110 Cessation of Use of a Property as Short-Term Vacation Rental.

Where the owner of property used and occu pied as a short -term vacation rental pursuant to a license approved and issued in the manner provided for by this chapter determines to cease such use, the property owner shall promptly cause a notice of such determination to be filed with the license admi nistrator.

Within 30 days following confirmation that there are no pending enforcement actions arising from violations of this chapter, the license administrator shall return the surety bond provided to the City to the licensee.

5.08.115 Hosting Platform Responsibilities.

1. A hosting platform must have a current, valid business license from the City to host any listing for a short -term vacation rental within the City.

2. A hosting platform that hosts a listing for a short-term vacation rental in the City shall provide a separate field for the host to enter the City license number applicable to the property in the form “Goleta License No. ____________.”

3. Before allowing a host to list a short -term vacation rental on its platform, a hosting platform shall advise the host of the following:

A. The City regulates short -term vacation rentals. Short -term vacation rentals are only allowed in accordance with Chapter

5.08 of the Goleta Municipal Code.

B. A short-term vacation rental in Goleta is only legal if the owner has a valid license from the City.

C. The host must provide a valid City license for the short -term vacation rental in the listing, or the listing must be taken down D. Failure to provide a valid City license with the listing may also subject the host to civil and criminal enforcement action by the City, in addition to restrictions by the hosting platform. 36 53

Ordinance No. 23-_ Amending Chapter 5.08 Entitled ‘Short-Term Vacation Rentals’

12 4. Subject to applicable laws, hosting platforms shall, upon written request by the City, promptly disclose to the City each short -term vacation rental listing located i n the City, the contents of the City license number field, the host ID, listing ID, names of the persons responsible for each such listing, the address of each such listed property, the length of each stay for each such listing (with dates), and the price paid for each stay.

5. If, in the course of facilitating a booking transaction, a hosting platform collects rent from a tenant, the hosting platform must also collect and at least monthly remit the following to the City:

A. Transient occupancy tax in accordance with Chapter 3.06 of this Code.

B. South Coast Tourism Business Improvement District
assessments in accordance with Resolution No. 22-12.

5.08.120 Violations.

1. Misdemeanors. Any violation of this chapter is a misdemeanor punishable in the manner provided for by Section 1.01.190 of this Code. Violations include, but are not limited to, the following:

Ordinance No. 23-_ Amending Chapter 5.08 Entitled ‘Short-Term Vacation Rentals’

13 D. Failure of the owner of a short -term vacation rental issued a license in the manner required by this chapter to keep a valid surety bond required by this chapter on file with the license administrator at all times such license remains in effect; E. Listing, offering, or advertising for rent a short -term vacation rental without including in the listing, offer, or advertisement the City license number applicable to the property in the form “Goleta License No. ____________” with the license number displayed or printed in the same size type as the largest type used in the offer or advertisement; or
F. Failure to comply with or cause co mpliance with any performance standard listed in this chapter.

2. Fines. Notwithstanding anything to the contrary in in any other provision of this Code, the City Council may authorize fines for misdemeanors, infractions, and administrative citations specific to violations of this chapter, in the maximum amounts and to the maximum extent allowed by law.

3. Other Remedies. Nothing in this section prevents the City from pursuing compliance with this chapter through administrative enforcement or a civil action in addition to, or in lieu of, charging the violator with a misdemeanor or infraction.

5.08.130 License Suspension, Modification or Revocation.

In addition to any other remedy provided by this chapter, a license issued pursuant to this chapter may be suspended, modified or revoked for a violation of this chapter, for a violatio n of any other law on the premises of the short -term vacation rental, or for the maintenance of such other condition as may be shown to be injurious to the public health and safety. Revocation proceedings may be initiated by the City Manager or City Attorn ey and shall be conducted pursuant to the procedures set forth in Section 1.02.110 of this Code.

SECTION 2. Effect of Amendment. To the extent any provision of this Ordinance repeals, amends, or supersedes any previous approvals, such repeal or replacement will not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before, this Ordinance’s effective date. Any such repealed or superseded part of previous 38 55

Ordinance No. 23-_ Amending Chapter 5.08 Entitled ‘Short-Term Vacation Rentals’

14 approvals will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Ordinance.

SECTION 4. No Conflict with Federal or State Law . Nothing in this Chapter is intended to create any requirement, power, or duty that is in conflict with any federal or state law.

SECTION 5. CEQA. The City of Goleta has determined that the adoptio n of this Ordinance is exempt from review under the California Environmental Quality Act ("CEQA") (California Public Resources Code Sections 21000 et seq.), pursuant to State CEQA Guidelines §15061(b)(3) (14 Cal. Code Regs. § 15061(b)(3)) covering activities with no possibility of having a significant effect on the environment. The Ordinance is also exempt from the requirements of CEQA pursuant to CEQA Guidelines Sections 15307 and 15308 of Title 14 of the California Code of Regulations as actions taken by regulatory agencies to assure the maintenance, restoration, enhancement of natural resources, or protection of the environment.

SECTION 6. Severability. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance.

SECTION 7. Certification. The City Clerk shall certify to the adoption of this ordinance and, within 15 days after its adoption, shall cause it to be published in accord with California Law.

SECTION 8. Effective Date.

This ordinance shall take effect thirty days after its passage and adoption pursuant to California Government Code section 36937.

INTRODUCED ON the 16th day of May, 2023.

PASSED, APPROVED, AND ADOPTED this 6th day of June, 2023.

______________________

PAULA PEROTTE
MAYOR

ATTEST: APPROVED AS TO FORM:

_______________________ ________________________
DEBORAH S. LOPEZ MEGAN GARIBALDI

CITY CLERK CITY ATTORNEY
39 56

Ordinance No. 23-_ Amending Chapter 5.08 Entitled ‘Short-Term Vacation Rentals’

15 STATE OF CALIFORNIA )
COUNTY OF SANTA BARBARA ) ss.

CITY OF GOLETA )

I, DEBORAH S. LOPEZ, City Clerk of the City of Goleta, California, do hereby certify that the foregoing Ordinance No. 2 3-__ was introduced on DATE, 2023, and adopted at a regular meeting of the City Council of the City of Goleta, California, held on the _th of ____, 2023, by the following roll-call vote, to wit:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

(SEAL)

_________________________
DEBORAH S. LOPEZ

CITY CLERK

40 57
ATTACHMENT 3:

Draft Voluntary Collection Agreement for City of Goleta, California

41 58

VOLUNTARY COLLECTION AGREEMENT
FOR

CITY OF GOLETA, CALIFORNIA
THIS VOLUNTARY COLLECTION AGREEMENT (the “ Agreement”), effective _________________, 2023 (“ Effective Date ”), is between AIRBNB, INC. , a Delaware corporation (“Airbnb”), and the CITY OF GOLETA (the “Taxing Jurisdiction”). Each party may be referred to individually as a “Party” and collectively as the “Parties.”

RECITALS
A. Airbnb represents that it provides an Internet -based p latform (the “ Platform”) through which third parties offering accommodations or activities (“ Hosts”) and third parties booking such accommodations or activities (“ Guests”) may communicate and consummate a direct -booking transaction for accommodations or ac tivities (“ Booking Transactions”).

B. Airbnb collects the rent payable by Guests (“Rent”), including transaction fees charged by Airbnb, and Airbnb remits all or a portion of the Rent to the Hosts.

C. The Taxing Jurisdiction imposes a transient -occupancy tax (“TOT”) on Rent charged by Hosts (“hotel” operators under the Goleta Municipal Code (“ GMC”)), and Guests must pay TOT “at the time the rent is paid” (GMC 3.06.020).

D. The Taxing Jurisdiction also collects an assessment for the South Coast Tourism Business Improvement District (“TBID”), which is collected and remitted with TOT.

E. The Taxing Jurisdiction and Airbnb desire to enter into this Agreement voluntarily in order to facilitate:

1. The reporting, collection and remittance of applicable TOT, TBID, and applicable sales taxes (“Taxes”) imposed under applicable City of Goleta, California, law (the applicable “Code”), on behalf of all Hosts that pay Rent through the Platform for 42 59

Booking Transactions completed by such Hosts and Guests on the Platform for accommodations transactions located in Goleta, California (the “Taxable Booking Transactions”) and

2. Transparency about Airbnb Hosts to ensure that Hosts operate in Goleta, California in accordance with City regulations and applicable law.

NOW, THEREFORE, IN CONSIDERAT ION OF THE MUTUAL COVENANTS, PROMISES AND AGREEMENTS CONTAINED HEREIN, THE PARTIES AGREE AS FOLLOWS:

TERMS AND CONDITIONS

1. Collection of Taxes

1.1 Starting on the Effective Date, Airbnb agrees to collect and remit Taxes on behalf of all Hosts that pay Rent using the Platform in accordance with the terms of this Agreement, at the applicable rate, on Taxable Booking Transactions. Except as set forth in Paragraph (L) below, Airbnb has no obligation or liability to collect Taxes on behalf of Hosts for any period or for any transaction prior to the Effective Date or after termination of this Agreement.

1.2 Airbnb will obtain a business license from the Taxing Jurisdiction. The assumption of such duties described in Section 1.1 above and this Section 1.2 do not trigger any other registration requirement to which Airbnb is not otherwise subject.

2. Remittance of Taxes

2.1 Airbnb agrees to report information with respect to each Host on the monthly tax return form prescribed by the Taxing Jurisdiction, including gross receipts, exemptions and adjustments, and taxable receipts of all Taxes that are subject to the provisions of this Agreement. Airbnb will remit all Taxes collected from Guests, with an accounting specific to each Host monthly, in accordance with this Agreement in the time and manner described in the Code. 43 60

2.2 Airbnb will ensure that the monthly tax return includes the Host ID number and the host-provided STR license number for each host and listing.

3. Airbnb Liability

3.1 In accordance with the terms of this Agreement, Airbnb agrees to assume liability for any failure to collect, report, or remit the correct amount of Taxes, including, but not limited to, penalties and interest, lawfully and properly imposed in compliance with the GMC.

3.2 Airbnb shall remit Taxes to the Taxing Jurisdiction in compliance with the GMC.

4. Audit

4.1 The Taxing Jurisdiction may audit Airbnb on the basis of Tax returns filed and supporting documentation.

4.2 “Supporting documentation” includes documentation indicating the name of the Host, the location of the rented unit, registration number, Short-Term Rental license number, the number of nights, the advertised Rent rate for each night, the actual Rent charged for each night, the amoun t of TOT collected, the amount of other Taxes collected, and the total amount paid by each Guest for each Taxable Booking Transaction. Supporting documentation must be provided in electronic form, in an editable spreadsheet format.

4.3 The Taxing Jurisdiction reserves the right to audit any individual Host for activity that has been brought to the attention of the Taxing Jurisdiction.

4.4 The Taxing Jurisdiction may audit Airbnb for Taxable Booking Transactions.

5. Guest and Host Liability

5.1 During any period in which this Agreement is effective, and provided Airbnb is in compliance with its obligations herein as to a Host , that Host is relieved of any obligation to collect and remit Taxes on Taxable Booking Transactions. 44 61

5.2 Nothing contained in this Agreement waives the requirements of the GMC imposed on Hosts to retain records documenting the payment of Taxes to the City for a minimum of three years after each period of Transient Occupancy as that term is defined in the GMC; or to provide copies of records documenting payment of the Taxes including but not limited to records showing collection of Taxes by Airbnb on behalf of Hosts, upon request by City Manager, City Attorney, or any designee of each of these.

5.3 Airbnb will not allow any Host to use the Platform unless the Host has provided Airbnb with evidence that the Host has registered with the Taxing Jurisdiction as a hotel operator and obtained a Short -Term Rental, or STR, license . Airbnb will reference the registration number and STR license number provided by the Host in reporting the information required as part of the supporting documentation identified in Section 4.2 above.

5.4 Airbnb will provide the T axing Jurisdiction with an accurate and complete list of all Hosts who rented STRs the previous month including but not limited to Host ID, STR license number, name of host, street address of STR, days rented on a monthly basis.

5.5 Nothing in this Agreement relieves Guests or Hosts from any responsibility with respect to Taxes for transactions completed through any means, method, device, or platform other than on the Platform, or restrict the Taxing Jurisdiction from investigating or enforcing any provision o f applicable law against such users. Nor does anything herein relieve any Guest or Host of liability for Taxes imposed by the GMC, nor limit the Taxing Jurisdiction’s authority to hold such Guest or Host responsible for any applicable Taxes and penalties and interest for which they may be liable, including, but not limited to, civil and criminal penalties arising from inaccurate, false, or misleading representations made to Airbnb or the Taxing Jurisdiction by such Guest or Host, whether or not such represe ntations were, in fact, relied upon by Airbnb or Taxing Jurisdiction in complying with its responsibilities under this Agreement. Nothing herein shall relieve any Host from 45 62

any other obligation or requirement under applicable law, including without limitation, the Taxing Jurisdiction’s zoning regulations.

6. Waiver of Look-Back
The Taxing Jurisdiction expressly releases, acquits, waives, and forever discharges Airbnb, its current or past affiliated parent or subsidiary companies, directors, shareholders, inves tors, employees and other agents from any and all actions, causes of action, indebtedness, suits, damages or claims arising out of or relating to payment of or collection of Taxes or other tax indebtedness, including but not limited to penalties, fines, in terest or other payments relating to Taxes on any Taxable Booking Transactions prior to the Effective Date. Nothing contained in this section of this Agreement constitutes a release or waiver of any claim, cause of action or indebtedness that the Taxing Jurisdiction may have or claim to have against any Host or Guest.

7. Notification to Guests and Hosts.

Airbnb will notify each Guest and Host booking accommodations in the Taxable Jurisdiction through the Platform of the following:
(A) The amount of Taxes collected and remitted on each Taxable Booking Transaction;
(B) The provisions of this Agreement, including specific notification of the provisions of Section 5 above; and
(C) The Hosts’ responsibility to comply with the Taxing Jurisdiction’s STR regulations.

8. Limitation of Application

8.1 This Agreement is solely for the purpose of facilitating the administration and collection of the Taxes with respect to Taxable Booking Tran sactions and, except with respect to the rights and liabilities set forth herein, the execution of or actions taken under this Agreement shall not be considered an admission of law or fact or constitute evidence thereof under the GMC or any other provision s of the laws of 46 63

the United States of America or of any State or subdivision or municipality thereof.

Neither Party waives, and each Party expressly preserves, any and all arguments, contentions, claims, causes of action, defenses or assertions relating to the validity or interpretation or applicability of the Code, regulations or application of law.

8.2 If Airbnb expands the types of transactions that may be completed by Hosts and Guests on the Platform to include additional taxable services or products located in Goleta, California, Airbnb will collect and remit any applicable taxes with respect to such transactions on behalf of Hosts and Guests.

9. Duration and Termination

9.1 This Agreement may be terminated by Airbnb or the Taxing Jurisdiction for convenience on 30-day written notification to the other Party. Such termination will be effective on the first day of the calendar month following the 30-day written notification to the other Party.

9.2 Termination under this Section 9 does not affect the duty of Airbnb to remit to the Taxing Jurisdiction any Taxes collected from Guests up through and including the effective date of termination of this Agreement, even if not remitted by Airbnb to the Taxing Jurisdiction as of the effective date of termination.

10. Miscellaneous

10.1 Choice of Law and Venue . This Agreement, its construction and any and all disputes arising out of or relating to it, shall be interpreted in accordance w ith the substantive laws of the State of California without regard to its conflict of law principles. Venue lies exclusively in state and federal courts in Santa Barbara County, California.

10.2 Modification. No modification, amendment, or waiver of any provi sion of this Agreement is effective unless made in writing and signed by both Parties. 47 64

10.3 Merger and Integration . This Agreement contains the entire agreement of the Parties with respect to the subject matter of this Agreement and supersedes all prior negotiations, agreements, and understandings with respect thereto.

10.4 Counterparts. This Agreement may be executed in any number of counterparts, each of which is deemed an original, and all of which, when taken together, constitute one and the same instrument. The Agreement becomes effective as of the Effective Date when each Party signs a counterpart and delivers it to the other Party, in its original form or by electronic mail, facsimile or other electronic means.

The Parties hereby consent to the use of ele ctronic signatures in connection with the execution of this Agreement and further agree that electronic signatures to this Agreement are legally binding with the same force and effect as manually executed signatures.

10.5 Relationship of the Parties . The Parti es are entering into an arm’s -length transaction and do not have any relationship, employment or otherwise. This Agreement does not create nor is it intended to create, a partnership, franchise, joint venture, agency, or employment relationship between the Parties. There are no third-party beneficiaries to this Agreement.

10.6 Waiver and Cumulative Remedies. No failure or delay by either Party in exercising any right under this Agreement may be deemed to waive that right or any other right. Other than as expre ssly stated herein, the remedies provided herein are in addition to, and not exclusive of, any other remedy that a Party might have at law or in equity.

10.7 Force Majeure. Neither Party is liable for any failure or delay in performance under this Agreement due to causes beyond that Party’s reasonable control and that occurs without that Party’s fault or negligence, including, but not limited to, any act of God, act of government, flood, fire, civil unrest, acts of terror, strike or other labor problem (other t han those involving Airbnb employees), computer attacks or malicious acts, such as attacks on or through the Internet, any Internet service provider, telecommunications or hosting facility. Dates by which performance 48 65

obligations are scheduled to be met wil l be extended for a period of time equal to the time lost due to any delay so caused.

10.8 Assignment. Neither Party may assign any of its rights or obligations hereunder, whether by operation of law or otherwise, without the prior written consent of the other Party (which consent may not be unreasonably withheld). Notwithstanding the foregoing, Airbnb may assign this Agreement in its entirety without consent of the other Party to a buyer or Airbnb affiliate in connection with a merger, acquisition, corporate reorganization, or sale of all or substantially all of its assets.

11. Notices

11.1 All notices under this Agreement must be in writing and are deemed to have been given upon: personal delivery; the third business day after first -class mailing postage prepaid; or the second business day after sending by overnight mail or by facsimile with telephonic confirmation of receipt.

11.2 Notices must be addressed to the attention of the following persons, provided each Party may modify the authorized recipients by providing written notice to the other Party:
(A) To Airbnb:

Airbnb, Inc.

Attn: General Counsel
888 Brannan Street, 4th Fl.

SF, CA 94103
[email protected]
Airbnb, Inc.

Attn: Global Head of Tax
888 Brannan Street, 4th Fl.

SF, CA 94103
[email protected]

(B) To the Taxing Jurisdiction:

City of Goleta
Attn: City Manager
130 Cremona Drive, Suite B
Goleta, CA 93117
49 66

(Signatures follow on next page)
50 67

IN WITNESS WHEREOF , Airbnb and the Taxing Jurisdiction have executed this Agreement as set forth below.

AIRBNB, INC., a Delaware corporation

By: _______________________________________
[Name], [Title: Board Chair, President, or Vice President]

_______________________________________
[Name], [Title: Secretary, Asst. Secretary, CFO, or Asst. Treasurer]

CITY OF GOLETA

By: _______________________________________
Robert Nisbet, City Manager

51 68
ATTACHMENT 4
Staff Presentation

52 69

SHORT-TERM VACATION

RENTAL ORDINANCE

AMENDMENTS
City Council Meeting
MAY 16, 2023
Presentation by:

Luke Rioux, Finance Director
53 70

BACKGROUND
 On February 17, 2015, the City Council adopted Ordinance No. 15-02 entitled “An Ordinance of
the City Council of the City of Goleta, California, Adopting Chapter 8 of Title 5 of the Goleta Municipal Code Relating to Short-Term Vacation Rentals.”  The ordinance was codified in Chapter 5.08 of the Goleta Municipal Code and requires property owners
to obtain a regulatory permit before renting a residential dwelling unit for less than 30 days.
 Owner-occupied residential dwelling units are exempt from the permit requirement in the ordinance
and can be rented without a permit, though the owner must obtain a general business license, and collect and remit transient occupancy tax and fees  A short-term vacation rental (STR) permitting program was created for non-owner- occupied dwelling
units.
2May 16, 2023, Short-Term Vacation Rental Ordinance Amendments 54 71
BACKGROUND CONT .
 To receive a permit, applicants are required to:
 Submit application for both a general business license and STVR Permit  Provide a nuisance response plan;
 Obtain a TOT Registration Certificate from the Finance Department;  Acquire a surety bond in the amount of $1,500;
 Remit a one-time STVR permit application fee of $326;  Submit proof that all properties within 200 feet have been notified of the application;  Obtain a City of Goleta annual business license, subject to annual renewal.  STRs are subject to a 12 percent Transient Occupancy Tax (TOT) as well as a Santa Barbara South Coast
Tourism Business Improvement District (TBID) assessment. 3May 16, 2023, Short-Term Vacation Rental Ordinance Amendments 55 72
BACKGROUND CONT .
 To date the City has issued 72 STR permits, though they are not all currently active.
 In
addition, Finance Department and Code Compliance staff have identified another
38 addresses that they believe are possibly
operating as unpermitted STRs.
 Including these units in the inventory of STRs in Goleta would bring the total
to 110 that have engaged in STR activity.
4May 16, 2023, Short-Term Vacation Rental Ordinance Amendments 56 73
BACKGROUND CONT .
 To date, the City has received a total of $323,735 in TOT from STRs since FY
15/16.
 In addition, $21,013 in STR permit fees and $2,579 in General Business License
fees have been collected from the permitted STR
units in Goleta during the same time period.
 All revenue associated with the STR program since its inception currently totals
$347,327.
 In comparison, hotels in Goleta have contributed over $80 million in TOT revenue
during the same time period.
5May 16, 2023, Short-Term Vacation Rental Ordinance Amendments 57 74

PURPOSE OF PROPOSED ORDINANCE
AMENDMENTS:
 To increase efficiency and effectiveness of the City’s current STR permitting process;
 Gain
a more accurate accounting of the number of STR units in Goleta;
 Begin to analyze the impact of STRs on the local housing market;  Enable the City to contract with third-party online platforms, such as Airbnb,
that facilitate the short-term rental of property.
6May 16, 2023, Short-Term Vacation Rental Ordinance Amendments 58 75

PROPOSED ORDINANCE AMENDMENTS
 The City will issue STR licenses instead of permits and require licenses for all STRs
within the city limits, including those that are owner-occupied.  The proposed ordinance:
 Adds a standalone licensed occupancy section to clarify the number of occupants allowed per
STR. The number of occupants has not changed but is called out more clearly than in the original version of the ordinance.
 Clarifies that the finance director is authorized to amend the requirements for the application and
supporting documentation as the director deems appropriate.  Clarifies the appeals process.
 Streamlines the text regarding performance standards and remove language referencing the
creation of a property interest in potential increased occupancy as it does not apply to STR uses.
7May 16, 2023, Short-Term Vacation Rental Ordinance Amendments 59 76
PROPOSED ORDINANCE AMENDMENTS CONT .
 Adds provisions to expressly acknowledge that the City may enter into agreements with STR online platforms,
and to outline expected obligations, which include that:
 Online platforms must obtain a business license in order to host any listing for a short- term vacation
rental within the City.
 An online platform that lists a short-term vacation rental in the City must provide a separate field
in its online platform for the individual host to enter the City license number applicable to the STR in the listing form.
 Before allowing an individual host to list a short-term vacation rental, an online platform must advise
the host of the following:
 The City regulates short-term vacation rentals, and a short-term vacation rental in Goleta must have
a valid license from the City.
 The host (not the platform) is responsible to provide the City license in the listing, or the listing will
be taken down, and failure to provide a valid City license with the listing may also subject the host to civil and criminal enforcement action by the City, in addition to restrictions by the online platform.
8May 16, 2023, Short-Term Vacation Rental Ordinance Amendments 60 77
PROPOSED ORDINANCE AMENDMENTS CONT .
 Subject to applicable laws, online platforms must disclose to the City details about
each short-term vacation rental listing located in city limits, including the contents of the City license number field, the host ID, listing ID, the length of each stay for each such listing (with dates), and the price paid for each stay.
 If an online platform collects rent from a tenant, the online platform must also collect and at least monthly remit the TOT
and TBID fees to the City.
 The ordinance refines language on fines to state that the City Council may authorize fines for misdemeanors, infractions, and administrative citations specific to violations of this chapter, in the maximum amounts and to the maximum extent allowed by law
.
9May 16, 2023, Short-Term Vacation Rental Ordinance Amendments 61 78

CHANGES TO PERMIT PROGRAM
Non-Owner Occupied (Un-hosted)
(Rent 30 days or less)
Owner Occupied (Hosted)
(Rent 30 days or less)
• STR Permit and Ordinance
Requirements Apply
• General Business Li
cense
• TOT Certificate
• Collect and Remit TOT & TBID
Forms and T
axes
• General Business License
• TOT Certificate
• Collect and Remit TOT &
TBID Forms and T
axes
• STVR Permit Fee: $326 (One-time)
Business License Fee: $216
(Annual)
• Business License Fee: $216
(Annual)
10 Non-Owner Occupied (Un-hosted) &
Owner Occupied (Hosted)
(Rent 30 days or less)
• STR License and Ordinance Requirements Apply
• TOT Certificate
• Collect and Remit TOT & TBID Forms and Taxes
• STVR License Fee: $326 (Annual)
Current Permit Program Proposed License Program
May 16, 2023, Short-Term Vacation Rental Ordinance Amendments 62 79

CHANGES TO FEE SCHEDULE
11  The Short-Term Vacation Rental License is recommended to be under one
license fee type instead of requiring hosts to obtain both a General Business License (at a cost of $221) and a Short-Term Rental Permit (at an additional cost of $326). The single license fee is recommended at the Short-Term Rental Permit rate of $326, since only one license is needed.
 The annual renewal license fee is recommended to cost the same as the
new license at the rate of $326, since the surety bond, nuisance response plan, and the size of area being rented out (whether one bedroom or an entire dwelling) must be verified for compliance with the ordinance annually.

May 16, 2023, Short-Term Vacation Rental Ordinance Amendments 63 80

VOLUNTARY COLLECTIONS AGREEMENT
 Online platforms, such as Airbnb, can assist with collection and remittance of
TOT and TBID fees, disclosure of information
related to listings on their websites and prevention of listing of short-term rentals that are not licensed.
 GMC Chapter 5.08 does not expressly anticipate voluntary collection agreements;
therefore, adoption of the proposed
ordinance is recommended to facilitate the use of VCAs with platforms such as Airbnb.
 A voluntary collection agreement would enable Airbnb to collect T
OT and the TBID assessment for bookings executed
through its platform and remit those taxes to the City. 12May 16, 2023, Short-Term Vacation Rental Ordinance Amendments 64 81
VOLUNTARY COLLECTIONS AGREEMENT CONT .
 It would also require Airbnb to include a field in its booking platform that
will allow hosts to input their City STR license
number when setting up a listing on the platform. It would also require Airbnb to display the contents of that field.  Furthermore, Airbnb would be obligated to take down any STR listing
if the City identifies it as not having a valid STR
license number.
 If the City Council wishes to have Airbnb provide these services for
the City of Goleta, authorization for staff to
negotiate and execute a VCA is recommended.
13May 16, 2023, Short-Term Vacation Rental Ordinance Amendments 65 82
VOLUNTARY COLLECTIONS AGREEMENT CONT .
 Airbnb would also be required to send monthly reports to the City that include
information for each listing and each transaction for
each listing, including the contents of the STR license field.  The Agreement would require Airbnb to remove unlicensed listings from being
displayed on its website. Every listing located in the City will have to include an STR license number, and if the City discovers that a fraudulent, expired, or revoked license number is listed, the listing will have to be taken down by Airbnb.  Airbnb would also be required to send monthly reports to the City that include
information for each listing and each transaction for
each listing, including the contents of the STR license field. 14May 16, 2023, Short-Term Vacation Rental Ordinance Amendments 66 83

RECOMMENDATION
A. Introduce and conduct first reading (by title only) and waive further reading of Ordinance No. 23-___ entitled “An Ordinance of the City Council of the City of Goleta, California, Amending Chapter 5.08 of the City of Goleta Municipal Code, Entitled Short Term Vacation Rentals;” and B. Find that the adoption of the Ordinance is exempt from the California Environmental Quality Act under Guideline 15301(c) and direct staff to file a Notice of Exemption within five business days; and
C. Authorize staff to negotiate and execute a voluntary collection agreement with Airbnb in substantially the same form as the provided draft. 15May 16, 2023, Short-Term Vacation Rental Ordinance Amendments 67 84
16 Questions?
68 85
ATTACHMENT 3

GMC Chapter 5.08 Proposed Amendments Staff Report from the June 27, 2023 City Council Meeting
86 Agenda Item B.3

CPMS DISCUSSION/ACTION ITEM
Meeting Date: June 27, 2023

TO: Mayor and Councilmembers

FROM: Luke Rioux, Finance Director
Megan Garibaldi, City Attorney

SUBJECT: Reintroduction of an Ordinance Amending Chapter 5.08 of the City of Goleta Municipal Code, Entitled “Short-Term Vacation Rentals”

RECOMMENDATION:

A. Reintroduce and c onduct first reading (by title only ) and waive further reading of Ordinance No. 23-__, entitled “An Ordinance of the City Council of the City of Goleta, California, Amending Chapter 5.08 of the City of Goleta Municipal Code , Entitled Short-Term Vacation Rentals;” and
B. Find that the adoption of the Ordinance is exempt from the California Environmental Quality Act under Guideline 15301(c) and direct staff to file a Notice of Exemption within five business days.

BACKGROUND

To increase efficiency and effectiveness of the City’s current short-term rental ( STR) permitting process, gain a more accurate accounting of the number of STR units in Goleta, and begin to analyze the impact of STRs on the local housing market, staff proposed a number of amendments to GMC Chapter 5.08, as well as a recommendation that the City seek the assistance of third-party online platform s, such as Airbnb and VRBO, to facilitate the short-term rental of property. On May 16, 2023, the City Council received a presentation on the proposed Ordinance and took public comment. After 87 Meeting Date: June 27, 2023

Page 2 of 5 ends

discussing various changes to the Ordinance, Council voted to introduce and conduct the first reading of the Ordinance as amended.

Since the May 16, 2023 meeting, City staff has met with and received minor comments to the proposed ordinance from Airbnb’s legal counsel which staff concur should be included in the revised Ordinance . City staff has also identified a few additional amendments detailed below that will be clarifying for implementation of the Ordinance .

Under California law, when any changes (unless a scrivener’s error) are made to an ordinance after first reading (i.e., introduction) but prior to second reading (i.e., adoption), the ordinance must be reintroduced, and first reading conducted again to capture those proposed changes in the ordinance adoption process. Therefore, staff recommend that the City Council reintroduce and conduct first reading, by title only, and wai ve further reading of the proposed amended Ordinance. Following reintroduction and first reading, the City Council must conduct a second reading of the Ordinance and adopt it at a subsequent meeting it in order for it to go into effect. It would then become effective on the thirty-first day after adoption.

DISCUSSION:

The revised Ordinance proposed for reintroduction will amend GMC Chapter 5.08 as noted in the staff report for the May 16, 2023 City Council meeting (included in Attachment 2). However, i mmediately prior to the Council discussion, staff was contacted by representatives of VRBO, who offered comments to the proposed Ordinance. In working with VRBO staff and attorneys, and based on further comments received from the City Council during the he aring on May 16, 2023, amendments to the originally proposed ordinance were made as follows:

 In Section 5.08.080, entitled “ Grounds for Denial or Revocation of License ”, language was added that specifies that the requirements the Finance Director is authorized to promulgate “shall include, but are not limited to, the performance standards, as set forth in Section 05.08.085. Non -compliance with those requirements and standards may result in revocation of a license.”

 Performance standards were moved from Section 5.08.090, “Appeals,” to Section

5.08.05, “Performance Standards.”

 Section 5.08.115, “Hosting Platform Responsibilities,” was amended to add that:

o A hosting platform must have a current, valid business license from the City to facilitate any booking for a short-term vacation rental within the City. o A hosting platform that facilitates bookings for any short-term vacation rental in the City shall provide a mandatory field in which a host or owner must enter a City license number applicable to the prope rty (as required by this Chapter), in the form “License No. ____________, ” prior to listing a short - term vacation rental on its platform. The hosting platform shall cause the 88 Meeting Date: June 27, 2023

Page 3 of 5 ends

license number applicable to the property to be visible to any person viewing the listing for the specified property.
o If, in the course of facilitating a booking transaction, a hosting platform collects rent from a tenant, the hosting platform must also collect and at least monthly remit the following to the City:
 Transient occupancy tax in accordance with Chapter 3.06 of this Code; and
 South Coast Tourism Business Improvement District assessments in accordance with Resolution No. 22-12, to the extent permitted by law. o In the event a listing does not display a valid City license issue d in accordance with this Chapter, the City shall provide notice to the applicable hosting platform of the non-compliant listing. Within seven (7) business days thereof, the hosting platform shall remove the listing for the respective property until such t ime as that property has obtained a valid City license issued in accordance with this Chapter.

 Section 5.08.140, “Owner Monthly Reporting and Remittance Requirements,” was added to read as follows:

1. “An o wner of a licensed short-term vacation rental must s ubmit to the License Administrator by the 15th day of each month a report, in the manner and form approved by the License Administrator, setting forth (i) the number of nights in which the short-term vacation rental was rented in the preceding month, inclu ding the respective number of nights in which it was rented through any and all hosting platforms, and the respective rates for each night; and (ii) the amount of TOT (Transient Occupancy Tax) or TBID (Tourism Business Improvement District) revenues required to be collected by the owner , in accordance with all applicable laws and regulations, for each night in which the short -term vacation rental was rented in the preceding month, if not collected through a respective hosting platform.

2. In the event TOT or T BID revenues are not collected through a hosting platform, an owner must remit such revenues for the preceding month by the 15th day of each month. For example, on the 15th day of April, an owner shall remit any and all TOT and TBID revenues required to be collected, in accordance with all applicable laws and regulations, for each night in the month of March in which the short-term vacation rental was rented.

Subsequent to the May 16, 2023 Council meeting, City staff worked with Airbnb’s legal team and staff , as City staff had with VRBO , relating to any comments and concerns Airbnb had with respect to the proposed ordinance. During that process, staff also identified a few additional clarifying amendments to the Ordinance. Collectively, those recommended changes are as follows:
89 Meeting Date: June 27, 2023

Page 4 of 5 ends

First, staff made a few small edits to clarify existing language in the Ordinance (e.g., references to “Finance Director” should more appropriately be to the “license administrator,” as defined in the proposed Ordinance; consistency of internal cross - references; etc.).

Second, staff also noted that clarification was needed in Section 5.08.090, “Appeals,” to indicate that appeals may be filed in respons e to both approvals and denials of license applications. The original version of the proposed Ordinance only referenced appeals of the License Administrator’s approvals. The amended proposed Ordinance now includes the needed clarifying language in the “Appeals” section, and further details the appeals process to assist during implementation of that section.

Third, after consulting with Airbnb and receiving their feedback on the draft amended Ordinance, staff recognized a need to include a requirement that in the event a hosting platform does not collect rent from a tenant, the hosting platform must display the applicable TOT.

Staff supports the amendments requested by the City Council and the feedback from VRBO and Airbnb, and with staff’s additional edits for clarity, recommends that Council reintroduce the amended Ordinance, conduct first reading (by title only) and waive further reading of the Ordinance.

FISCAL IMPACTS:

While there are no immediate fiscal impacts associated with the recommended act ions, the proposed ordinance aims to achieve a more accurate accounting of STRs in Goleta, which will enable more effective compliance actions, and in turn will result in an increase in TOT, and potentially TBID fees, collected by the City.

ALTERNATIVES

Reviewed By: Legal Review By: Approved By:

___________________ ___________________ _________________ Kristine Schmidt Megan Garibaldi Robert Nisbet
Assistant City Manager City Attorney City Manager

90 Meeting Date: June 27, 2023

Page 5 of 5 ends

ATTACHMENTS:

2. GMC Chapter 5.08 Proposed Amendments Staff Report fr om the May 16, 2023 City Council Meeting.

3. Amended Ordinance No. 23_, entitled “An Ordinance of the City Council of the City of Goleta, California, Amending Chapter 5.08 of the City of Goleta Municipal Code, Entitled Short-Term Vacation Rentals.”

91 ATTACHMENT 3

Amended Ordinance No. 23_, entitled “An Ordinance of the City Council of the City of Goleta, California, Amending Chapter 5.08 of the City of Goleta Municipal Code, Entitled Short-Term Vacation Rentals.”

92 ORDINANCE NO. 23-_

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
GOLETA, CALIFORNIA, AMENDING CHAPTER 5.08 OF THE

GOLETA MUNICIPAL CODE, ENTITLED SHORT TERM

VACATION RENTALS
WHEREAS, on February 17, 2015, the City Council adopted Ordinance No. 15-02 relating to Short-Term Vacation Rentals; and
WHEREAS, the ordinance was codified in Chapter 5.08 of the Goleta Municipal Code and requires property owners to obtain a regulatory permit before renting a residential dwelling unit for less than 30 days; and WHEREAS, owner-occupied residential dwelling units were exempted from the permit requirement in the ordinance and could be rented without a permit; and WHEREAS, a short -term vacation ren tal (STR) permitting program was created for non-owner occupied dwelling units to educate property owners of their obligations in operating an STR, notify neighbors and give them an opportunity to object to the proposed use of a neighboring property as an STR, create a database to assure compliance with the ordinance and tax collection and remittance obligations, and provide a procedure for revocation of a permit in the event that the use of a property as a STR is in violation of Ordinance No. 15-02; and WHEREAS, permits specify the maximum number of overnight occupants and vehicles allowed per rental; and
WHEREAS, all STRs in the City, whether owner or non -owner occupied, are subject to a 12 percent Transient Occupancy Tax (TOT) as well as a Santa Barbara South Coast Tourism Business Improvement District (TBID) assessment; and
WHEREAS, in order to increase efficiency and effectiveness of the City of Goleta’s STR permitting process, and to maintain an accurate accounting of the total number of STR units in Goleta, the City explored the possibility of contracting with a third -party Internet -based STR booking platform to facilitate reporting, collection, and remittance of applicable TOT, TBID, and sales taxes on behalf of all hosts of both owner-occupied and non-owner occupied units, and to ensure that all hosts operate in Goleta, California in accordance with City regulations and applicable law; and
WHEREAS, the City Council finds that modifications to Chapter 5.08 would make administration of the provisions of Chapter 5.08 more efficient; ensure uniform application of STR requirements, including collection of data, TOT, TBID assessments, and sales taxes; and better facilitate voluntary collection agreements.
93 Ordinance No. 23-_ Amending Chapter 5.08 Entitled “Short Term Vacation Rentals” 2 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GOLETA DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. Title 5, Chapter 5.08 of the Goleta Municipal Code, Short Term Vacation Rentals, is amended to read in its entirety:

Chapter 5.08 SHORT-TERM VACATION RENTALS

5.08.010 Authority and Purpose.

5.08.020 Definitions.

1. “Hosting platform” means a person or entity who participates in short- term vacation rentals by collecting or receiving a fee, directly or indirectly through an agent or intermediary, for conducting a booking transaction using any medium of facilitation. Examples include, but are not limited to, VRBO.com, Airbnb.com, homestay.com, and other internet and non-internet based services that facilitate bookings for a fee.

3. “Owner of a short-term vacation rental,” “owner,” or “host” means the person or persons holding fee title to a dwelling unit operated and used as a short-term vacation rental, or a person or persons holding 94 Ordinance No. 23-_ Amending Chapter 5.08 Entitled “Short Term Vacation Rentals”

3 the lease estate to a dwelling unit and operating and using the leased dwelling unit as short-term vacation rental, or the agents of any such persons.

5.08.030 License Required.

1. No owner or owners of a short -term vacation rental shall rent, offer to rent, or advertise for rent a short -term vacation rental to another person without a license approved and issued in the manner provided for by this chapter.

2. Any valid short-term vacation rental license that is issued under this chapter before August 17, 2023 is considered a short-term vacation rental license under this chapter.

3. A short-term vacation rental license shall be valid until December 31 in the year in which it is first issued and upon renewal it is valid for a period of one year from January 1 through December 31 of each year, unless sooner revoked. A license under this section does not confer any rights to any person for more than the above-referenced period.

4. No short-term vacation rental license shall be renewed automatically.

It shall be the responsibility of the host to renew the license prior to the end of each calendar year and submit an updated application or renewal form and any applicable fee at least thirty (30 days) prior to the expiration date of the license. Upon timely submission of renewal, the license will remain effective until the license is renewed or denied. Failure to timely submit an application and renewal fee for renewal of an existing license may be deemed operating without a license and in violation of this chapter , upon expiration of the then - issued license or unless sooner revoked . Applications for renewal shall be in a form required by th e license administrator and include updates of all information required or submitted for the license. 95 Ordinance No. 23-_ Amending Chapter 5.08 Entitled “Short Term Vacation Rentals”

4 5. A short -term vacation rental license shall be issued only to the specific person listed on the application.

5.01.300 and 5.01.310, any change to the organizational structure of the owner or any change of ownership of the short -term vacation rental requires a new short-term vacation rental license.

5.08.040 License Applications.

Applications for a license required by this chapter shall be submitted by an owner, or an agent authorized on behalf of the owner to submit an application on their behalf, in a form and contain the information required by the license administrator, and shall be accompanied by the following:

1. A nuisance response plan containing the information required by this chapter;

2. A transient occupancy registration certificate issued by the City Finance Director pursuant to Chapter 6 of Title 3 of the Goleta Municipal Code;

3. A surety bond in the amount of $1,500.00 issued by a responsible surety company and in the form required by this chapter;

4. A license application fee in an amount established in the manner provided for by this chapter; and

5. A written declaration affirming that, at least 30 days prior to issuance of the license, occupants of all residences and businesses located within 200 feet from the proposed short -term vacation rental have been notified of the p roposed license and have been informed in writing in a form acceptable to the City of the proposed use and the contact information with the City to seek additional information or register concerns or objections.

6. Such other information and /or additional fo rms as deemed necessary by the license administrator or other department to which the application for a license is referred.
96 Ordinance No. 23-_ Amending Chapter 5.08 Entitled “Short Term Vacation Rentals”

5 Notice of issuance of the license shall be provided to everyone who files a written request for such notice.

5.08.050 License Fees.

All license application fees, including any renewal application, and the fees charged incident to the amendment of a nuisance response plan shall be established by the City Council.

5.08.055 Licensed Occupancy.

Every license issued by the City shall specify the maximum number of overnight occupants allowed at the short -term vacation rental and the maximum number of vehicles associated with the overnight occupancy of the short -term vacation rental which can be parked at the property.

5.08.060 Nuisance Response Plans.

A. The mailing address and telephone number of the owner or owners of the residential dwelling unit or units to be used as a short-term vacation rental pursuant to the license.

B. The name, address and telephone number of the person or persons who will be available by telephone, and wh o will be responsible for promptly responding to or causing a prompt response to a nuisance complaint arising out of the
occupancy or use of the short-term rental(s) by tenants, their visitors and/or their guests. For the purposes of this chapter, a return telephone call to a complainant within 30 minutes of the initial complaint shall be deemed “prompt.”
(1) No more than a total of three persons shall be
designated in the response plan as a person
responsible for responding to or causing a response to
a nuisance complaint; and
(2) Only one such person shall be designated as the
person responsible for responding to a nuisance
complaint during any particular hours of the day,
97 Ordinance No. 23-_ Amending Chapter 5.08 Entitled “Short Term Vacation Rentals”

6 different days in a week, and/or different weeks of the year.

C. The manner of responding to or causing a response to a nuisance complaint, including, but not limited to, the manner in which the complainant or complainants will be notified of the response and the method of documenting prompt
responses and timely corrective action.

E. The proposed maximum number of overnight occupants, with supporting documentation identifying unusual size, interior layout, parking or other physical characteristics, if any, that support a request for occupancy greater than two persons per bedroom, plus two additional persons.

F. The number of off -street parking spaces and number of bedrooms available at the short-term vacation rental.

5.08.060 of this chapter and shall be accompanied by an amended response plan fee in an amount established in the manner provided for by this chapter.

5.08.070 Notice of Nuisance Response Plans.

7 5.08.080 Approval of License; Grounds for Denial , Suspension or Revocation.

1. Upon receipt of an application for a license required by this chapter, the license administrator will review the application and supporting documents and will approve and issue a license to the owner or owners of the property that is the subject of the app lication that authorizes the use and occupancy of such property as a short -term vacation rental if the license administrator finds that the required application fee has been paid, that the requirements of the short-term vacation rental license application as set forth in this chapter have been satisfied, and that the nuisance response plan and surety bond submitted with the application conform to the city’s requirements.

2. Notwithstanding the preceding paragraph:

A. The license administrator is hereby authorized to promulgate written requirements relating to operations of short -term vacation rentals to implement the intent of this chapter and may amend them from time to time as the license
administrator deems appropriate. Those requirements shall include, but are not limited to, the performance standards, as set forth in Section 05.08.085. Non -compliance with those requirements and standards may result in revocation of a license, as determined by the license administrator, in consultation with the City Attorney, and shall be conducted pursuant to the procedures as further set forth in this chapter.

B. A license shall be denied if a short-term vacation rental license issued to the applicant or for the property has been
suspended or revoked in the prior 24 months.

C. A license shall be denied if the residential dwelling unit proposed as a short -term vacation rental was established through Section 17.07.040(B).

D. A license application shall not be processed while an enforcement action by the City for violations of this chapter or any section of the Municipal Code is pending unless the approval is required to resolve the enforcement action. 99 Ordinance No. 23-_ Amending Chapter 5.08 Entitled “Short Term Vacation Rentals”

8 E. No license shall be renewed unless all city fees and taxes owed by the applicant are paid in full, including the rene wal fee.

3. In addition to any other remedy provided by this chapter, a license issued pursuant to this chapter may be suspended, modified, or revoked for a violation of this chapter, for a violation of any other law on the premises of the short -term vacation rental, or for the maintenance of such other condition as may be shown to be injurious to the public health and safety. Revocation proceedings may be initiated by the City Manager or City Attorney and shall be conducted pursuant to the procedures set forth in Section 1.02.110 of this Code.

5.08.085 Performance Standards.

1. The owner shall ensure that the short-term vacation rental complies with all current applicable codes regarding fire, building and safety, and all other relevant laws and ordinances.

2. No person shall list, offer to rent, or advertise for rent a short -term vacation rental without including in the listing, offer, or advertisement the City license number applicable to the short -term vacation rental property in the form “Goleta License No. _____ _______.” The license number shall be displayed or printed in the same size type as the largest type used in the main body of the offer or advertisement.

3. The owner shall require the primary overnight and daytime occupant of the short -term vacation rental t o be an adult 18 years of age or older. This adult shall provide a telephone number to the owner and shall be accessible to the owner by telephone at all times.

4. Prior to occupancy, the owner shall obtain the name, address, and driver’s license number or a copy of the passport of the primary adult occupant of the short -term vacation rental. The owner shall require that adult to sign a formal acknowledgement that he or she is legally 100

Ordinance No. 23-_ Amending Chapter 5.08 Entitled “Short Term Vacation Rentals”

9 responsible for compliance of all occupants of the short -term vacation rental or their guests with all provisions of this chapter. This information shall be provided by the responsible party identified in the nuisance response plan upon request of any police officer or employee of the City authorized to enforce this chapter or State law.

6. The owner shall limit the numb er of vehicles associated with the overnight occupancy of the short-term rental to a specific number of vehicles, with the maximum number of vehicles being the number of off-street parking spaces available at the property.

7. Trash and refuse shall not be left stored within public view, except in proper containers for the purpose of collection on scheduled trash collection days. The owner of the short -term vacation rental shall provide sufficient trash collection containers and service to meet the demand of the occupants.

8. Each lease or rental agreement for a short-term vacation rental shall include the following terms, notifications and disclosures, which terms shall also be posted in a conspicuous location inside the unit:

A. The maximum number of overnight occupants and day use visitors that are permitted.

B. The maximum number of vehicles that overnight occupants may park at the short-term rental.

C. Notification that on-street parking is extremely limited in some areas of the City.

D. The trash pick -up day and appl icable rules and regulations pertaining to leaving or storing trash or refuse on the exterior of the property.

E. Notification that the occupant may be cited or fined by the City and/or immediately evicted by the owner pursuant to State law, in addition to an y other remedies available at law, for violating any other provisions of this chapter.
101

Ordinance No. 23-_ Amending Chapter 5.08 Entitled “Short Term Vacation Rentals”

10 F. Notification that failure to conform to the occupancy requirements of the short-term vacation rental is a violation of this chapter.

G. Notification that amplified sound, including radios, televisions and other electronic devices are subject to the City’s Noise Ordinance as set forth in Goleta Municipal Code Section

9.09.020.

H. A prohibition on illegal loud parties, along with notification of the City’s right to recover the co sts of special enforcement needed to address certain loud parties.

I. The name of the managing agency, agent, rental manager, local contact person, or owner of the unit, and a telephone number at which that party may be reached at all times.

J. A copy of the “Go od Neighbor Guidelines” which may from time to time be prepared by the license administrator. These guidelines may include location -specific information, such as neighborhood quiet hours, local speed limits and the
prohibition of fires and fireworks in beach areas.

K. Notification that the property is part of the City of Goleta’s Short-Term Vacation Rental Program.

L. A copy of this chapter of the Goleta Municipal Code, as it may be amended from time to time.

9. Upon receipt of a nuisance complaint or upon notificat ion of an allegation that any occupant or guest of the short -term vacation rental has created unreasonable noise or disturbances, engaged in disorderly conduct, or committed violations of the Goleta Municipal Code or any State law, the owner shall promptly respond and take timely corrective action to prevent a recurrence of such conduct by those occupants or guests. Failure of the owner to respond promptly or to take timely corrective action regarding the condition, operation, or conduct of occupants of the short-term vacation rental shall be a violation of this chapter. An owner is not required or authorized to act as a peace officer or to intervene in situations that pose a risk to personal safety. The owner, or his or her agent, shall maintain records of the name, violation, date, and time of each complaint, disturbance, response and corrective action.
102

Ordinance No. 23-_ Amending Chapter 5.08 Entitled “Short Term Vacation Rentals”

11 10. The owner shall cause a copy of the nuisance response plan to be posted in a conspicuous place within the property.

The performance standards may be modified by the license administrator upon request of the owner based upon site-specific circumstances for the purpose of allowing reasonable accommodation of a short -term vacation rental occupant as may be required by Stat e or Federal disability laws. All requests must be in writing and shall identify how the strict application of the standard conditions creates an unreasonable hardship to a property such that, if the requirement is not modified, reasonable use of the property for a short-term vacation rental would not be allowed.

5.08.090 Appeals.

Any party may file a written request with the City Clerk for a hearing before the City Manager within 10 days following a decision by the license administrator to grant, deny, or revoke a short-term vacation rental license. All appeals must be accompanied by payment of the required fee established by City Council resolution. The public shall be provided notice of the hearing consistent with the requirements of this Code. The hearing shall be opened no more than 45 days following the request for hearing being received by the City. A decision shall be made by the City Manager or designee within 10 days of the hearing. The decision of the City Manager shall be final.

5.08.100 Surety Bonds.

1. Each surety bond accompanying an application for a license required by this chapter shall be issued by a surety licensed to do business in the State of California that has an A.M. Best Financial Strength Rating of at least “A -”, shall name the c ity as the bond obligee, and shall be conditioned on the payment of any administrative fine assessed in the manner provided for by Chapter 1.02 of this Code within the time provided for therein if:

A. The administrative fine was assessed either against the licensee or against any tenant or other person occupying or 103

Ordinance No. 23-_ Amending Chapter 5.08 Entitled “Short Term Vacation Rentals”

12 using the short -term vacation rental operated pursuant to such license; and
B. Arose out of a violation of this chapter, or the occupancy or use of such short -term vacation rental in a manner that violated any provision of this Code.

2. At any time following the issuance of a license required by this chapter, the licensee may file a substitute surety bond with the license administrator issued by a surety that meets the requirements of this section. Upon determining that such substitute bond conforms to such requirements, the license administrator shall return the bond being replaced by the substitute surety bond to the licensee.

5.08.110 Cessation of Use of a Property as Short-Term Vacation Rental.

Where the owner of property used and occupied as a short -term vacation rental pursuant to a license approved and issued in the manner provided for by this chapter determines to cease such use, the property owner shall promptly cause a notice of such determ ination to be filed with the license administrator.

5.08.115 Hosting Platform Responsibilities.

1. A hosting platform must have a current, valid business license from the City to facilitate any booking for a short -term vacation rental within the City.

2. A hosting platform that facilitates bookin gs for any short -term vacation rental in the City shall provide a mandatory field in which a host or owner must enter a City license number applicable to the property (as required by this Chapter), in the form “ Goleta License No. ____________, ” prior to l isting a short-term vacation rental on its platform. The hosting platform shall cause the license number applicable to the property to be visible to any person viewing the listing for the specified property.

3. Before allowing a host to list a short -term vaca tion rental on its platform, a hosting platform shall advise the host of the following:
104

Ordinance No. 23-_ Amending Chapter 5.08 Entitled “Short Term Vacation Rentals”

13 A. The City regulates short -term vacation rentals. Short -term vacation rentals are only allowed in accordance with Chapter

5.08 of the Goleta Municipal Code.

B. A short-term vacation rental in Goleta is only legal if the owner has a valid license from the City.

4. Subject to all applicable laws, hosting platforms shall, upon written request by the City, promptly disc lose to the City each short -term vacation rental listing located in the City, the contents of the City license number field, the host ID, listing ID, names of the persons responsible for each such listing, the address of each such listed property, the leng th of each stay for each such listing (with dates), and the price paid for each stay.

A. Transient occupancy tax in accordance with Chapter 3.06 of this Code; and
B. South Coast Tourism Business Improvement District
assessments in accordance with Resolution No. 22-12, to the extent permitted by law.

C. In the event a hosting platform does not collect rent from a tenant, the hosting platform must display the applicable transient occupancy tax.

6. In the event a listing does not display a valid City license issued in accordance with this Chapter, the City shall provide notice to the applicable hosting platform of the non-compliant listing. Within seven (7) business days thereof, the hosting platform shall remove the listing for the respective property until such time as that property has obtained a valid City license issued in accordance with this chapter. 105

Ordinance No. 23-_ Amending Chapter 5.08 Entitled “Short Term Vacation Rentals”

14 5.08.120 Violations.

1. Misdemeanors. Any violation of this chapter is a misdemeanor punishable in the manner provided for by Section 1.01.190 of this Code. Violations include, but are not limited to, the following:

A. Rental, listing, offering, or advertising for rental of a dwelling unit located on any property within the City by the owner of the property as a short-term vacation rental without a license authorizing such use that has been approved and issued in the manner required by this chapter;
B. Failure of the owner of a short -term vacation rental issued a license in the manner required by this c hapter or the owner’s designated agent to respond to a nuisance complaint arising out of the occupancy and use of the short -term rental by a tenant, or the tenant’s visitors or guests in the manner and within the time required by a nuisance response plan
approved by the license administrator incident to the issuance of such license;
C. Failure of the owner of a short -term vacation rental issued a license in the manner required by this chapter to keep a response plan required by the chapter on file with the license administrator containing the name of the current person or persons responsible for responding to a nuisance complaint within the time required by this chapter;
D. Failure of the owner of a short -term vacation rental issued a license in the manner required by this chapter to keep a valid surety bond required by this chapter on file with the license administrator at all times such license remains in effect; E. Listing, offering, or advertising for rent a short -term vacation rental without including in the list ing, offer, or advertisement the City license number applicable to the property in the form “License No. ____________” with the license number
displayed or printed in the same size type as the largest type used in the offer or advertisement; or
F. Failure to comply with or cause compliance with any
performance standard listed in this chapter.

2. Fines. Notwithstanding anything to the contrary in in any other provision of this Code, the City Council may authorize fines for 106

Ordinance No. 23-_ Amending Chapter 5.08 Entitled “Short Term Vacation Rentals”

15 misdemeanors, infractions, and administra tive citations specific to violations of this chapter, in the maximum amounts and to the maximum extent allowed by law.

5.08.130 Owner Monthly Reporting and Remittance Requirements.

1. An owner of a licensed short-term vacation rental must submit to the license administrator by the 15 th day of each month a report, in the manner and form approved by the license administrator, setting forth (i) the number of nights in which the short -term vacation rental was rented in the preceding month, including the respective number of nights in which it was rented through any and all hosting platforms, and the respective rates for each night; and (ii) the amount of TOT or TBID revenues required to be collected by the owner, in accordance with all applicable laws and regulations, for each night in which the short -term vacation rental was rented in the preceding month, if not collected through a respective hosting platform.

2. In the event TOT or TBID revenues is not collected through a hosting platform, an owner must report and remit such revenues for the preceding month by the 15th day of each month. For example, on the 15th day of April, an owner shall report and remit any and all TOT and TBID revenues required to be collected, in accordance with all applicable laws and regulations, for each night in the month of March in which the short-term vacation rental was rented.

SECTION 3. No Conflict with Federal or State Law . Nothing in this Chapter is intended to create any requirement, power, or duty that is in conflict with any federal or state law.
107

Ordinance No. 23-_ Amending Chapter 5.08 Entitled “Short Term Vacation Rentals”

16 SECTION 4. CEQA. The City of Goleta has determined that the adoption of this Ordinance is exempt from review under the California Environmental Quality Act ("CEQA") (California Public Resources Code Sections 21000 et seq.), pursuant to State CEQA Guidelines §15061(b)(3) (14 Cal. Code Regs. § 15061(b)(3)) covering activities with no possibility of having a significant effect on the environment. The Ordinance is also exempt from the requirements of CEQA pursuant to CEQA Guidelines Sections 15307 and 15308 of Title 14 of the California Code of Regulations as actions taken by regulatory agencie s to assure the maintenance, restoration, enhancement of natural resources, or protection of the environment.

SECTION 5. Severability. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or uncons titutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance.

SECTION 6. Certification. The City Clerk shall certify to the adoption of this ordinance and, within 15 days after its adoption, shall cause it to be published in accord with California Law.

SECTION 7. Effective Date. This ordinance shall take effect thirty days after its passage and adoption pursuant to California Government Code section 36937.

INTRODUCED ON the 27th day of June, 2023.

PASSED, APPROVED, AND ADOPTED this 18th day of July, 2023.

______________________

PAULA PEROTTE
MAYOR

ATTEST: APPROVED AS TO FORM:

_______________________ ________________________
DEBORAH S. LOPEZ MEGAN GARIBALDI

CITY CLERK CITY ATTORNEY
108

Ordinance No. 23-_ Amending Chapter 5.08 Entitled “Short Term Vacation Rentals”

17 STATE OF CALIFORNIA )
COUNTY OF SANTA BARBARA ) ss.

CITY OF GOLETA )

I, DEBORAH S. LOPEZ, City Clerk of the City of Goleta, California, do hereby certify that the foregoing Ordinance No. 23-__ was introduced on June 27, 2023, and adopted at a regular meeting of the City Council of the City of Goleta, California, held on the 18th of July, 2023, by the following roll-call vote, to wit:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

(SEAL)

_________________________
DEBORAH S. LOPEZ

CITY CLERK

109

Goleta City CouncilJuly 18, 2023

Goleta City Council
July 18, 2023