Item4_STR-and-LCP-Amendment — Grover Beach City Council, February 13, 2024

Agenda Item No.

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: February 13, 2024 FROM: Megan Martin, Community Development Director
SUBJECT: Introduction and First Reading to Amend Municipal Code Article IX to Adopt Revisions to the City’s Short-Term Rental Ordinance and Approve a Local Coastal Program Amendment

RECOMMENDATION
1) Conduct first reading, by title only, and introduce amendments to the City’s Short-term Rental Ordinance amending Grover Beach Municipal Code, Article IX; and 2) Schedule second reading and adoption of the Ordinance and a Resolution approving a Local Coastal Program Amendment at the next regularly scheduled City Council meeting.

BACKGROUND
On June 17, 2019, the City Council (Council) adopted a Short-term Rental (STR) ordinance (Ordinance No. 19-04) that permits owner-occupied and non-owner occupied STRs in the City1 .

Following adoption, staff developed “Administrative Rules” to inform applicants of the requirements to apply for and operate an STR. A “Good Neighbor Brochure” was also prepared by the City for operators to communicate to their visitors on how to be considerate and responsible neighbors. After implementation, City staff committed to regular reviews of the program to ensure its ongoing success and to identify deficiencies and areas for policy improvement or refinement.

On September 27, 2021, the Council received a presentation on the implementation of the STR Program. The Council provided policy direction at that time to modify the current Administrative Rules limiting multi-family development to one STR permit, establish a minimum stay requirement (12 nights per year) for non-owner occupied STRs, and create a waitlist for non-owner-occupied permits. On August 28, 2023, the Council received another presentation on the status and implementation of the STR regulatory program2
. Staff recommended areas in the ordinance for
refinement and the Council provided subsequent policy direction to consider changes in the City’s administration of its waitlist procedures, local contacts, STRs within Accessory Dwelling Units (ADUs), required annual minimum stays, and number of non-owner-occupied permits.

The Planning Commission, at a regular meeting on February 6, 2024, reviewed recommended changes to the STR Ordinance from staff, and, following public comment and Commission deliberation, recommended the Council adopt Ordinance No. 24-02 amending the City’s Shortterm Rental Ordinance (Ordinance No. 19-04) and approve a Local Coastal Program Amendment. 1 June 17, 2019 City Council Staff Report - https://www.grover.org/DocumentCenter/View/8652/Item-7_ShortTerm-Rentals?bidId= 2 August 28, 2023 City Council Staff Report - https://www.grover.org/DocumentCenter/View/14163/Item13_STRCouncil-Staff-Report-FINAL Staff Report: Introduction and First Reading of Short-term Rental Ordinance Amendments Page 2 February 13, 2024

Program Summary
As of February 7, 2024, the City has issued 113 STR permits which include 20 owner-occupied permits and the remaining non-owner occupied permits. There are two pending applications within the Coastal Zone and five pending applications outside the Coastal Zone. Of the permitted operators, 97% have listed their rentals on advertising platforms such as VRBO, Airbnb, and Booking while the remaining 3% utilize referrals to rent to select guests throughout the year.

The City has collected approximately $1.77 million in Transient Occupancy Tax (TOT) revenue since the program’s inception in 2019. STR permit holders are also responsible for paying the City’s TOT (12%) and the San Luis Obispo County’s Tourism Management District (TDM) tax (1.5%) each quarter for an effective tax rate of 13.5%. In terms of revenue, STRs account for approximately 50% of the total TOT revenue collected by the City. Below is a table showing the TOT revenue generated annually:

Fiscal Year (FY) TOT Revenue % Increase
2019-20 $103,540.90 --
2020-21 $298,915.02 +189%
2021-22 $508,362.22 +70%
2022-23 $458,567.07 -10%
2024 to date $409,773.12 --
Taxes are remitted monthly by permittees via Host Compliance, the City’s third-party vendor for registration, monitoring, and tax remittance. Host Compliance also provides compliance and enforcement assistance. The City has one Code Compliance Officer who responds to all compliance issues associated with STRs, in addition to their other responsibilities. Since 2019, there have been a total of 75 compliance cases for permitted and unpermitted STRs (10 and 65, respectively). These cases range from noise, parking, and waste, to illegal STRs.

Council Directed Policy Changes
On August 28, 2023, the Council gave policy direction to staff related to the city’s administration of its waitlist procedures, local contacts, STRs within Accessory Dwelling Units (ADUs), required annual minimum stays, and increasing the number of non-owner-occupied permits. The Planning Commission reviewed those administrative changes on February 6, 2024, and unanimously recommended the Council adopt the changes as outlined below. A legislative draft of the changes to the STR regulations is available for reference online3 .

Section 4.10.185.H.4 – Local Contact Person. The STR Ordinance established a local contact requirement to ensure a person was available and able to be physically present at the STR within 30 minutes of receiving a complaint. City staff had received multiple complaints from interested parties and permittees regarding this requirement, arguing that it was burdensome, costprohibitive if it required hiring a property management company, and that it was arbitrary. As such, staff recommended the radius be expanded. The Council directed staff to expand to a 45-minute radius which effectively would allow a local contact to live within San Luis Obispo County and northern Santa Barbara County (San Miguel to Santa Maria city limits). This does not affect or change the Administrative Rule that a Local Contact must respond to a complaint within 30 minutes of receiving a complaint.
3 https://www.grover.org/DocumentCenter/View/14564/Draft-STR-Regulations-track-changes Staff Report: Introduction and First Reading of Short-term Rental Ordinance Amendments Page 3 February 13, 2024
Modification of the radial requirement to 45-minutes necessitated revisions to the “Local Contact” definition within Section 9.10.010 – Definitions of Specialized Terms and Phrases. The Administrative Rules have also been modified to reflect this change.

Section 4.10.185.H.14 – Minimum Stay Requirement. Council directed staff to consider increasing the minimum stay requirement for non-owner-occupied permits. The Commission, following a review of staff’s analysis, recommends no change to the minimum night requirement. Staff completed an analysis of the fiscal impact should the Council choose to revisit a potential increase to the minimum night requirement.

Staff analyzed increasing to 24- and 50-night minimums per fiscal year. In reviewing the nonowner occupied STRs for the last fiscal year (2021-22), only 15 STRs reported fewer than 25 stays per year, and 30 STRs reported fewer than 50 stays per year. Based on an estimated average TOT tax revenue of $41 per night, increasing the minimum night stay to 24 would yield approximately $6,000 in additional revenue under the program and eliminate 13% of non-owneroccupied permit holders. Increasing the minimum stays to 50 would yield approximately $28,800 in additional TOT revenue and eliminate 33% of non-owner-occupied permit holders.

While increasing the minimum stay requirement may result in more turnover in the waitlist, the additional stays may result in increased fiscal impacts for responding to complaints and costs associated with enforcement. Furthermore, increasing the minimum number of stays could be considered inconsistent with the intent of the SLO County Regional Compact Policy R-6:
“Encourage rental units be prioritized for long-term residents rather than short term users or vacation rentals”, which is further supported by the City’s Housing Element (Chapter 2 – Regional Visions for Housing).

Section 4.10.185.P – Effect of Ordinance on Existing Short-Term Rentals. The Commission agreed with staff recommendation to eliminate this language, entirely. This section requires unpermitted operators to apply for an STR permit within 60 days of the effected date of the ordinance. This language is no longer relevant as all operators have either complied or no longer operate as an STR.

New Section 4.10.185.P –Non-Compliant Short-Term Rentals. In concurrence with State law, the Commission recommended to allow the continued operation of any legally established STR that may become non-compliant with any proposed or future amendments to the STR ordinance.

However, it would also require the non-compliant STR to comply with any new requirements upon renewal of the STR permit. This section is also intended to address any STRs that were previously permitted within ADUs, JADUs, and residential development project(s) established under the HOME Act (see Section 4.10.185.Q, below). Any active permits for these types of dwellings would not be allowed to be renewed, in accordance with the relevant Government Code for each of these types of dwellings.

Section 4.10.185.Q – Effect of Ordinance on Existing or Proposed ADUs. This change would have a direct impact on permitted STRs within ADUs and is in response to State law (California Government Code §65852.2.e.4) which requires ADUs to be rented for at least 30 days. The City’s current ordinance states that any ADU that was existing, under construction, or in building plan review prior to September 11, 2020, could be used as an STR. However, State law supersedes this use and does not allow any ADUs to be used as STRs. To comply with this requirement, any renewal application received will be rejected and the ADU ineligible to further participate in the program.

Staff Report: Introduction and First Reading of Short-term Rental Ordinance Amendments Page 4 February 13, 2024

STRs and ADUs. As mentioned above, State law requires ADUs to be rented for at least 30 days, making ADUs ineligible for an STR permit. However, the Commission recommended staff clarify as part of the Administrative Rules that an STR can be permitted within the primary residence on a property when an ADU is already constructed, or if the primary residence is already permitted as an STR and the property owner constructs a new ADU.

Waitlist Procedures. Waitlist procedures for non-owner occupied permits were introduced by the City in response to the high demand for STR permits driven by regional growth and tourism. The aim was to distribute permits fairly among interested parties. 60 individuals are currently on the STR wait list with some having waited for over two years.

A review of the waitlist administration process revealed that some participants, upon the availability of permits, would repeatedly choose to “pass,” causing significant delays in issuance— some permits remained unissued for months. To address this, staff recommended modifying the Administrative Rules, establishing a more efficient issuance methodology, and preventing participants from taking advantage. The Council directed staff to revise the rules, limiting participants to a single “pass” to streamline the process. These changes are now reflected in the updated Administrative Rules outside of the ordinance presented to the Council.

Additional Changes Identified by Staff
Section 4.10.185.B.2 – Applicability. Minor revisions and clarifications were identified by staff to ensure the Ordinance is consistent with State law. These changes include additions to the prohibition of STRs within Single Room Occupancy Facilities (i.e. dormitories), Two-Unit Housing Development Projects, Urban Lot Splits, ADUs and JADUs. Also clarifies STR permits are limited to issuance of one permit per property or one per building when units share common walls.

Section 4.10.185.N.9 – Permit Revocation – Onsite Parking. Revisions to this section clarify that if a permitted STR is no longer able to meet minimum onsite parking requirements at the subject property, or if any changes to the property prevent ingress and/or egress, an STR Permit may be revoked.

The Planning Commission’s motion during the February 6th hearing included a recommendation to change the definition of the term ‘stay’ to be consistent to an ‘overnight accommodation’ rather than the length of the stay (see Attachment 3 – Glossary). This change was recommended to provide clarification to non-owner occupied STRs regarding the minimum stay requirement.

Proceeding the introduction of the changes to the STR Ordinance, staff will continue to work to improve upon the Rules and Regulations to provide greater clarification, internal consistency, and improve readability. Prior to the adoption of the changes to the STR Ordinance staff will present updated Administrative Rules and Regulations for Council consideration and input.

Survey
Staff prepared and distributed a survey to gauge community and STR permit holders’ opinions of the STR Program4
. Questions included basic demographics, impact of STRs on the neighborhood, overall satisfaction with the current STR regulations, and suggestions for change. As of February 6, 2024, the City had received 121 responses and the survey indicates that 75% of respondents are satisfied with the City’s STR Program and 86% find STRs to have a positive impact on neighborhoods. 2% percent of operators reported challenges in complying with the City’s regulations, whereas part of the same question, when asked to specify those challenges, 17% 4 https://www.surveymonkey.com/r/GBSTR2024
Staff Report: Introduction and First Reading of Short-term Rental Ordinance Amendments Page 5 February 13, 2024

responded with feedback, indicating more respondents provided feedback than reported challenges.

Respondents were also given the opportunity to provide suggestions for amending the current regulations. While 44% stated no adjustments were necessary, the following were some of the specific comments received:
• Reduce permitting fees and taxes.
• Improve registration, permitting, and tax remittance process. • Increase minimum night stay requirement.
• Allow more STRs in the community.
• Don’t allow more STRs in the community.
• STRs should be allowed in ADUs.
• STRs should be allowed in RVs.
• Eliminate cap on STRs in visitor-serving zones.
• Expand 30-minute timeframe to respond.
• Renewal every two years instead of annually.
• Stricter enforcement and prevent unpermitted STRs from operating. • Annual status updates to those on the waitlist.

The survey summary data is included with this report as Attachment 4. A complete set of detailed survey responses can be found on the City’s website: https://www.grover.org/345/Short-TermRentals.

Consulting Services
The City currently contracts with a third-party vendor, Host Compliance. Host Compliance provides rental monitoring, compliance, and enforcement assistance through an online permit portal. In response to the dynamic landscape of STRs in the State, other monitoring and compliance vendors have emerged, utilizing new technologies for data mining, expanded searches of rental platforms, and have made significant improvements to capturing real-time rental data. Since its adoption, the City has been dedicated to promoting accountability and the responsible use of STRs in the community. Staff will be seeking competitive proposals from qualified vendors to encourage innovation and build upon the success of the City’s STR program.

Coastal Commission & Local Coastal Program Amendment
Amendments to the STR Ordinance would result in changes to Chapters 4 and 9 of the Development Code (Article IX of the Municipal Code) that constitute the ordinances for implementation of the City’s Local Coastal Program (LCP). Therefore, this amendment requires an LCP Amendment in compliance with the California Coastal Act, which requires the California Coastal Commission’s approval prior to the ordinance taking effect in the coastal zone.

Staff provided the draft ordinance to Coastal Commission staff for preliminary review and comments. Coastal staff indicated the Coastal Commission would likely not support an increase to the number of STRs in the coastal zone due to impacts on local housing stock. While historically the Coastal Commission has supported STRs in the Coastal Zone as a visitor-serving use, there has been a dramatic increase in the number of Commission appeals of STRs regarding their impact on coastal neighborhoods. As such, Coastal staff supports the City’s current cap as the Coastal Commission explores how best to balance the needs housing availability and visitor access in coastal communities.

Staff Report: Introduction and First Reading of Short-term Rental Ordinance Amendments Page 6 February 13, 2024

Summary
Overall, the STR program has been successful since its adoption and the Administrative Rules and standards have proven effective. The collaborative efforts of staff and the community have created a well-regulated program. The program is also a significant revenue source for the City, contributing to the General Fund which supports City services and projects. The minor adjustments proposed in this updated ordinance continue the City’s commitment to periodically review the STR program and ensure the program supports the local economy and enhances residents' quality of life, all while emphasizing responsible tourism and preserving neighborhood character.

Following the first reading and introduction of the ordinance on February 13, the Council will conduct a second reading and public hearing on February 26 before considering adoption.

Pending final adoption of the ordinance by the Council, staff will forward the LCP amendment to the Coastal Commission for review. The amended ordinance would become effective the day after Coastal Commission action.

ENVIRONMENTAL REVIEW
This action is not a project within the meaning of the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., “CEQA”) and CEQA Guidelines (Title 14 California Code of Regulations §§ 15000, et seq.) Section 15378(b)(5). The revisions to the Shortterm Rental Ordinance are administrative and will not result in direct or indirect physical changes in the environment and are therefore exempt from CEQA.

ALTERNATIVES
The Council has the following alternatives to consider:

1. Conduct first reading, by title only, and introduce the amendments to the City’s Short-term Rental Ordinance, amending Grover Beach Municipal Code, Article IX and schedule second reading and adoption of the Ordinance and a Resolution approving a Local Coastal Program Amendment at the next regularly scheduled City Council meeting; or

2. Provide alternative direction to staff.

FISCAL IMPACT
The adoption of this ordinance regulating Short-Term Rentals would not have a significant fiscal impact. The cost associated with issuance and renewal of permits and regulation of STRs is recouped as part of the annual permitting fee.

PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.

Attachments

1. Short-Term Rental Ordinance

2. LCP Amendment Resolution

3. Revised STR Administrative Rules

4. Grover Beach STR Ordinance Survey
Attachment 2
RESOLUTION NO. 24-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH,

CALIFORNIA AUTHORIZING AND DIRECTING THE COMMUNITY

DEVELOPMENT DIRECTOR TO SUBMIT THE LOCAL COASTAL

IMPLEMENTATION AMENDMENT ASSOCIATED WITH AMENDMENTS TO
ORDINANCE NO. 19-04 TO THE CALIFORNIA COASTAL COMMISSION FOR

FINAL CERTIFICATION
WHEREAS, the Local Coastal Program Amendment associated with Ordinance No. 19- 04 would amend the City’s Short-Term Rental Ordinance in the Development Code; and WHEREAS, the Ordinance requires a Local Coastal Program Amendment because it is amending Development Code Chapters 4, and 9; and
WHEREAS, the Local Coastal Program Amendment is intended to be carried out in a manner that is fully in conformity with the Coastal Act; and WHEREAS, the Planning Commission held a public hearing on February 6, 2024, and recommended the City Council approve the Development Code Amendment and Local Coastal Program Amendment; and
WHEREAS, the amendments are not a project within the meaning of the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., “CEQA”) and CEQA Guidelines (Title 14 California Code of Regulations §§ 15000, et seq.) Section 15378 because the amendments will not result an direct or indirect physical change in the environment; and
WHEREAS, the City Council at its meeting on February 13, 2024, conducted the first reading of Ordinance No. 24-02; and
WHEREAS, the City Council at its meeting on February 26, 2024, adopted Ordinance No. 24-02; and
WHEREAS, the proposed Local Coastal Program Amendment will take effect automatically upon final certification by the Coastal Commission unless revisions are made by the Coastal Commission.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grover Beach DOES HEREBY AUTHORIZE AND DIRECT the Community Development Director to submit a Development Code amendment to amend the City’s adopted Short-Term Rental Ordinance associated with Ordinance No. 19-04, to the California Coastal Commission for final certification.

Resolution No. 24-__ LCP Amendment for Ordinance Regulating Short-Term Rentals

Page 2 ends

Upon motion by Council Member ____, second by Council Member ____, and on the following roll call vote:

AYES: Council Members
NOES: Council Members –
ABSENT: Council Members –
ABSTAIN: Council Members –
the foregoing Resolution was PASSED, APPROVED, AND ADOPTED at the Regular Meeting of the City Council of the City of Grover Beach, California, this February 26, 2024. ____________________________

KAREN BRIGHT, MAYOR
ATTEST:
______________________________

WENDI SIMS, CITY CLERK
Attachment 1
ORDINANCE NO. 24-XX
AN AMENDMENT OF ORDINANCE 19-04 OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH, CALIFORNIA AMENDING SECTIONS 4.10.185 AND 9.10.050, OF THE GROVER BEACH MUNICIPAL CODE ARTICLE IX TO

REGULATE SHORT-TERM RENTALS
WHEREAS, the City of Grover Beach (“City”) is a general law city and a political subdivision of the State of California; and
WHEREAS, the City Council (“Council”) adopted Ordinance No. 19-04 amending Article IX of the Grover Beach Municipal Code and adopting a Local Coastal Program Amendment to regulate short-term rentals on private property in the City; and WHEREAS, City staff has committed to regular reviews to identify program deficiencies and areas for policy improvement or refinement to the short-term rental (“STR”) program; and WHEREAS, the Council received an update on the implementation of the City’s STR Program on August 28, 2023, and provided policy direction related to the city’s administration of waitlist procedures, local contacts, STRs within Accessory Dwelling Units, required annual minimum stays, and amending the number of non-owner occupied permits; and WHEREAS, this amendment is not a project within the meaning of the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., “CEQA”) and CEQA Guidelines (Title 14 California Code of Regulations §§ 15000, et seq.) Section 15378 and is therefore exempt from CEQA because it will not result in any direct or indirect physical changes in the environment.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF GROVER BEACH DOES ORDAIN AS FOLLOWS:

Part 1. Recitals. The above recitals are true and correct and are incorporated as though fully set forth herein.

Part 2. Article IX Development Code, Chapter 4 Standards for Specific Development and Land Uses, Short-Term Rental Ordinance Section 4.10.185.B entitled “Applicability” is hereby amended to read as follows:

B. Applicability.

1. The provisions of this Section shall apply to all short-term rental units, including owner occupied and non-owner occupied short-term rentals. All standards of the underlying zone shall continue to apply to a permitted short-term rental. This Section does not apply to legally established lodging uses, which are regulated separately.

2. Short-term rental units shall only be allowed within a legally constructed single-unit dwelling, multi-unit dwelling, multi-unit dwellings within a mixed-use project, or mobile home as defined in Section 9.10.020, except short-term rentals shall be prohibited in the following types of dwellings: live-work units, caretaker residences, Single Room Occupancy Facilities (Section 4.10.200), Two-Unit Housing Development projects (Section 4.25.060), Urban Lot Splits (Section 8.160), Accessory Dwelling Units and Junior Accessory Dwelling Units (Section 4.10.015). Short-term rental permits shall be limited to Ordinance No. 24-XX Page 2 of 3
the issuance of one permit per property or one permit per building when units share common walls within multi-unit dwellings or within a mixed-use project for all new permits issued after October 1, 2021.

3. Short-term rentals shall be prohibited in any residence subject to an affordable housing covenant or deed restriction imposed or required by the city.

4. Short-term rentals shall be prohibited in recreational vehicles, motor homes, travel trailers, truck campers, tent trailers, boats and other similar vehicles.

Part 3. Article IX Development Code, Chapter 4 Standards for Specific Development and Land Uses, Short-Term Rental Ordinance Section 4.10.185.H.4 entitled “Local Contact Person” is hereby amended to read as follows:

4. Local Contact Person. Short-term rental units shall have a local contact person who is available 24-hours per day, seven days per week. The local contact person must be able to be present at the short-term rental within 45 minutes of receiving a complaint at all times the short-term rental is operational. The contact information shall be submitted to the City when an application for permit is submitted and the owner shall immediately provide the city in writing of any change to the local contact person.

Part 4. Article IX Development Code, Chapter 4 Standards for Specific Development and Land Uses, Short-Term Rental Ordinance Section 4.10.185.L entitled “Permit Revocation” Subsection 9 is hereby amended to read as follows:

9. If the subject property no longer provides adequate onsite parking, as required under this Section and set forth in Subsection H.3., or changes to the property have occurred that would prevent ingress and/or egress access to the subject property or adjacent properties.

Part 5. Article IX Development Code, Chapter 4 Standards for Specific Development and Land Uses, Short-Term Rental Ordinance Section 4.10.185.P entitled “Effect of Ordinance on Existing Short-Term Rentals” is hereby removed and replaced with a new Subsection P entitled “Legal Non-Compliant Short-Term Rentals” to read as follows:

P. Non-Compliant Short-Term Rentals. Short-Term Rentals with a valid permit, issued prior to any amendments to this Section, shall continue to be operated consistent with the original approval, however, renewal of any existing Short-Term Rental Permit shall only be allowed if the Short-Term Rental meets all applicable requirements of this Section at the time of renewal.

Part 6. Article IX Development Code, Chapter 4 Standards for Specific Development and Land Uses, Short-Term Rental Ordinance Section 4.10.185.Q entitled “Effect of Ordinance on Existing or Proposed Accessory Dwelling Units” is hereby amended to read as follows:

Q. Effect of Ordinance on Existing or Proposed Accessory Dwelling Units. Short-Term Rental Permits that have been issued for a Short-Term Rental within an Accessory Dwelling Unit, Junior Accessory Dwelling Unit, or residential development project established under the HOME Act (Government Code Section 65852.21 and 66411.7), shall be considered noncompliant Short-Term Rentals. Notwithstanding their designation as a non-compliant ShortTerm Rental, any Short-Term Rental permitted within any residence described herein shall not be eligible for renewal.

Ordinance No. 24-XX Page 3 of 3
Part 7. Article IX Development Code, Chapter 9 Definitions, Section 9.10.050 Short-Term Rental Definitions are hereby amended as follows:

9.10.050 Short-Term Rental Definitions
“Local Contact Person” means the person designated on the short-term rental permit who shall be available 24-hours a day, seven days a week for the purpose of responding inperson to the short-term rental site within 45 minutes of receiving a complaint regarding the condition, operation, or conduct of guests and is authorized by the owner to take remedial action and who responds to violations.

Part 8. Severability. The City Council declares that, should any provision, section, paragraph, sentence or word of this ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this ordinance as hereby adopted shall remain in full force and effect.

Part 9. Repeal of Conflicting Provisions. The provisions of this ordinance shall govern and supersede any other provisions of the Grover Beach Municipal Code as heretofore adopted by the City of Grover Beach that are in conflict with the provisions of this ordinance.

Part 10. Effective Date. This amendment shall not become effective and in full force and effect until 12:01 a.m. on the thirtieth day after adoption by the City Council, or 12:01 a.m. on the day after final certification by the California Coastal Commission, whichever occurs later. However, within fifteen (15) days after adoption by the City Council, the Ordinance shall be published once, together with the names of the Council Members voting thereon, in a newspaper of general circulation within the City.

INTRODUCED at a regular meeting of the City Council held on February 13, 2024 and PASSED, APPROVED, and ADOPTED by the City Council on the February 26, 2024, on the following roll call vote, to wit:

AYES: Council Members -
NOES: Council Members -
ABSENT: Council Members -
ABSTAIN: Council Members -
RECUSED: Council Members -
___________________________________

KAREN BRIGHT, MAYOR
Attest:
______________________________

WENDI SIMS, CITY CLERK
Approved as to Form:
_____________________________

ROBERT LOMELI, CITY ATTORNEY
** D R A F T **
Attachment 2
RESOLUTION NO. 24-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH,

CALIFORNIA AUTHORIZING AND DIRECTING THE COMMUNITY

DEVELOPMENT DIRECTOR TO SUBMIT THE LOCAL COASTAL

IMPLEMENTATION AMENDMENT ASSOCIATED WITH AMENDMENTS TO
ORDINANCE NO. 19-04 TO THE CALIFORNIA COASTAL COMMISSION FOR

Resolution No. 24-__ LCP Amendment for Ordinance Regulating Short-Term Rentals

Page 2 ends

Upon motion by Council Member ____, second by Council Member ____, and on the following roll call vote:

KAREN BRIGHT, MAYOR
ATTEST:
______________________________

WENDI SIMS, CITY CLERK
Attachment 3
City of Grover Beach │ Short-Term Rental Administrative Rules City of Grover Beach │ Short-Term Rental Administrative Rules December 2021 Update http://str.groverbeach.org Page i
Table of Contents

1. Glossary ............................................................................................................................ 1

2. Introduction....................................................................................................................... 4

3. Key Dates and Deadlines ................................................................................................. 4

4. Number of Short-Term Rentals Allowed.......................................................................... 5

5. Short-Term Rental Permits............................................................................................... 5

6. Business Tax Certificate ...............................................................................................109

7. Payment of TOT/TMD Taxes..........................................................................................109

8. Short-Term Rental Operator Regulations.......................................................................10

9. Violations......................................................................................................................1615

10. Revocation of Permit ...................................................................................................1817 Appendix
Appendix A TOT / TMD Submittal Form
Appendix B TOT / TMD Exception Form
Appendix C Owner-Occupied Self Certification Form
Appendix D Non-Owner-Occupied Inspection Checklist

City of Grover Beach │ Short-Term Rentals Administrative Rules December 2021February 2024 Update http://str.groverbeach.org Page 1

1. Glossary
This glossary provides definitions for terms used in the City of Grover Beach Short-Term Rental Administrative Rules and Regulations.

Accessory Dwelling Unit A legally permitted residential unit, either separated or detached, located on the same residential parcel/lot as the primary residential unit. Includes Junior Accessory Dwelling Units as defined under Government Code Section 65852.22(i)(1).

Administrative Rules The City Manager, or designee, shall have the authority to establish administrative rules and regulations consistent with the provisions of this Section for the purpose of interpreting, clarifying, carrying out, furthering, and enforcing the requirements and the provisions of this Section, and establishing procedures for complaints. A copy of such administrative rules and regulations shall be on file in the office of the city clerk and posted on the city's website.

Advertise The publication of any statements, phrases, words, photographs, drawings or other images for the purpose of informing any member of the public of the ability or availability to use a specific dwelling unit for short-term rental purposes including but not be limited to verbal, written, printed, electronic, televised or broadcast set forth or contained in any newspaper, magazine, newsletter, website, solicitation, handbill, business card, flyer, outdoor advertising display, billboard, cable, satellite or digital radio or television broadcast, social networking site or any other electronic and digital media.

Application A public document completed and filed to the City of Grover Beach that requests permission to operate a short-term rental business for a property located within the City of Grover Beach.

Bedroom Any habitable room normally occupied with no less than 70 square feet of floor area and no horizontal dimension less than seven feet with at least one wall located along an exterior wall with a window and equipped with a heating source as required by the California Building Code.

Brochure A document prepared by the City that summarizes the general rules of conduct and applicable short-term rental regulations to be adhered to by renters.

BTC Business Tax Certificate is a tax payable when the City issues a Business Tax Certificate by every person conducting, carrying on, or managing any business within the City of Grover Beach.

City of Grover Beach │ Short-Term Rental Administrative Rules December 2021November 2023 Update http://str.groverbeach.org Page 2 Development Code The City of Grover Beach zoning and development regulations known as Article IX in the Grover Beach Municipal Code.

City The City of Grover Beach comprising of all lots within its incorporated City Limit line.

City Council The City Council of the City of Grover Beach.

GBMC The Grover Beach Municipal Code.

Guest An invitee of a renter or other person visiting a renter of a shortterm rental unit who does not rent the unit. Guests shall only be allowed at the short-term rental between the hours of 7:00 a.m. and 10:00 p.m. unless they intend to occupy the unit for the evening consistent with Section 8.(F).

Hotline The telephonic service or electronic messaging service operated by or for the City for the purpose of receiving complaints regarding the operation of any Short-Term Rental and forwarding the complaints to the local contact person.

Hosting Platform An internet based service, or property management company that provides advertisement for a short-term rental property.

Legally Permitted A residential dwelling unit, remodel, or addition that has been issued a building permit by the City, or the County prior to incorporation.

Local Contact Person A person designated on the short-term rental permit, whom shall be available 24-hours a day, seven days a week for the purpose of responding in-person to the short-term rental site within 30 45 minutes of receiving a complaint regarding the condition, operation, or conduct of guests and is authorized by the owner to take remedial action and who responds to violations. The Local Contact Person must respond to the complaint regarding the condition, operation, or conduct of guests within 30 minutes of receiving a complaint.

Non-Owner-Occupied A short-term rental in which the owner does not reside on the property during the time a renter is occupying the residence.

Operator A person that is operating an STR either as an authorized agent for an owner (property manager), or as a legal occupant of the long-term rental with landlord permission.

Owner-Occupied A short-term rental in which the owner resides on the property during the time a renter is occupying the residence.

Owner A person or entity holding legal title and/or equitable title to the real property that is the subject of a short-term rental permit.

City of Grover Beach │ Short-Term Rentals Administrative Rules December 2021February 2024 Update http://str.groverbeach.org Page 3 Permittee The applicant (property owner) that has been issued a ShortTerm Rental Permit.

Residential Unit A building or portion thereof designed for or occupied in its entirety or in part, as a home, residency, or sleeping place, either permanently or temporarily, and containing not more than one kitchen per residential unit.

Renter A person renting or occupying a short-term rental property in accordance with the GBMC. For purposes of these regulations, “renter” shall have the same meaning as “transient,” as defined in Municipal Code Article X Chapter 6.

Short-Term Rental The rental of a private residence, or any portion of the private residence, for thirty or less consecutive days for which a rental contract for occupancy has been made which the short-term rental use is permitted to operate, pursuant to a current and valid short-term rental permit on file with the city. A short-term rental may be either an owner-occupied or non-owner-occupied shortterm rental.

STR Permit An issued document that allows a rental of a residential unit for a period of less than 30 consecutive calendar days or less, subject to all applicable City development code regulations, permit/licensing requirements, and payment of fees and/or taxes, including transient occupancy tax, and tourism marketing district taxes as defined in the GBMC.

STR Permit Renewal A Short-Term Rental Permit Renewal Application to continue operation of an existing Short-Term Rental that the owner of a Residential Unit must fill out and submit to the City’s Community Development Department by July 31st of each year to renew their permit.

Stay A stay is considered the rental periodovernight
accommodations in which a residential unit is occupied by a renter. The term stay may be interchangeable with reference to number of nights.

TOT Transient Occupancy Tax (TOT) is charged for the privilege of occupancy in a residential unit. Each transient is subject to and shall pay a tax in the amount of twelve (12%) percent of the rent charged by the operator. Said tax constitutes a debt owed by the transient to the City which is extinguished only by payment to the operator.

TMD Tourism Marking District (TMD), requires that all operators who collect Transient Occupancy Tax (TOT) within the County also begin remitting an additional 1.5% of taxable rents beginning with rents collected on July 1, 2020. The District is designed to City of Grover Beach │ Short-Term Rental Administrative Rules December 2021November 2023 Update http://str.groverbeach.org Page 4 provide funding for County-wide marketing, advertising, promotions and sales efforts on behalf of the assessed
businesses.

2. Introduction
The City Council adopted a shortShort-term Term rental Rental (STR) ordinance on June 17, 2019 that established a permitting process for all STRs and regulations for all STRs operating in the City. The Ordinance number 19-04 is codified in the Grover Beach Municipal Code (GBMC) Article IX Development Code Chapter 4 Section 4.10.185. The Ordinance authorizes the City Manager to establish administrative Administrative rules Rules and regulation consistent with the Ordinance for the purpose of interpreting, clarifying, carrying out, furthering, and enforcing the requirements of the Ordinance.

3. Key Dates and Deadlines
The following table sets forth key dates and deadlines for the City’s STR regulations.

Key Dates and Deadlines
September 11, 2019 California Coastal Commission approved local ordinance regulating Short-Term Rentals.

October 1, 2019 STR application and BTC application available on city’s website https://str.groverbeach.org . Applications accepted online only.

November 12, 2019 Enforcement of STRs that have not applied for permits begins.

December 31 of each year Business Tax Certificate renewals are due (sent via us mail by Administrative Services Department)
July 1- July 31 STR Permit Renewal Applications period. Renewals completed online only at https://str.groverbeach.org .

July 31 of each year Final day to apply for a renewal. If a renewal application is not received by July 31, the permit may be revoked
August 1 to July 31 Permits are valid from August 1 to July 31 of the next year (i.e. August 1, 2021 to July 31, 2022).

City of Grover Beach │ Short-Term Rentals Administrative Rules December 2021February 2024 Update http://str.groverbeach.org Page 5

4. Number of Short-Term Rentals Allowed
The Development Code establishes a maximum number of STRs for non-owner-occupied units (Development Code Section 4.10.185.G). A maximum of 40 non-owner-occupied STRs will be allowed on properties within the coastal Coastal zoneZone. A maximum of 60 non-owneroccupied STRs will be allowed on properties outside of the coastal Coastal zoneZone. There is no limit for the number of STR permits issued for owner-occupied units. Permits will be issued on a first come, first serve basis.

City Map – Maximum Number of Non-Owner-Occupied STRs

5. Short-Term Rental Permits
A. Application. An application must be completed on-line at https://str.groverbeach.org with all the required information and submitted with a fee approved in the City’s Master Fee Schedule. The City will review all information submitted, including a review of City building permits to ensure floor plans and site plans are in compliance with City records. If as part of the application review process it is determined that construction occurred at the residence without a valid building permit issued by the City, a code enforcement investigation will be opened and your STR application will be denied until building permits have been issued and the work is completed. Applications will be rejected if an open building permit is on file for the property. The following items are required to be submitted for an STR application.
60 STRs
40 STRs
City of Grover Beach │ Short-Term Rental Administrative Rules December 2021November 2023 Update http://str.groverbeach.org Page 6

1. Applicant Name – This is the name of the property owner. If you are a renter, the landlord’s name must appear on this line and match property records. A permit will be issued to the property owner.

2. Property Address – This is the address of the property. This must match property records maintained by the City.

3. Assessor’s Parcel Number – The is a property identification number issued by San Luis Obispo County Assessor’s Office. This number may be obtained by visiting either the County Assessor’s website https://www.slocounty.ca.gov/Departments/Assessor/Services/Propert y-Information-Search.aspx or the City’s Zoning information website = https://www.google.com/maps/d/viewer?mid=1oxe-GE-bg8RPy7- FmIGbYTaoAjpyawT3&ll=35.12985372392944%2C120.62230030638129&z=18

3.4. Mailing Address – This is a mailing address where forms and other communications are to be sent. If this is the same as the property address type “same as property.”

4.5. Applicant Contact Number – This is a phone number to contact either the property owner or the authorized agent such as a property manager or renter. It is recommended this number be a mobile phone number.

5.6. Applicant Email Address – This is an email to contact either the property owner or the authorized agent such as a property manager or renter.

Assessor’s Parcel Number – The is a property identification number issued by San Luis Obispo County Assessor’s Office. This number may be obtained by visiting either the County Assessor’s website https://www.slocounty.ca.gov/Departments/Assessor/Services/Propert y-Information-Search.aspx or the City’s Zoning information website =

6.7. Fee. An application fee is due at the time of permit registration. This fee covers the cost of City staff time and the City’s third party vendor that accepts the application, monitors the hotline, and performs other assigned contractual tasks. The application fee can change annually and is in the City’s Master Fee Schedule. The fee is not pro-rated at the time of permit registration. The third party vendor may charge a separate fee for credit card and Automated Clearing House (ACH) payments directly from a checking account.

7.8. Owner-Occupied - The owner resides on the property during the time a renter occupies the residence, between the hours of 10:00 p.m. to 7:00 a.m. To be considered an owner-occupied STR, you must submit a property tax bill that shows the “homeowner” exemption. If a renter, through permission from a landlord, is operating the STR, a copy of the lease shall be submitted in lieu of a property tax bill. A maximum of four (4) entire home stays up to a maximum of 30 days total, is City of Grover Beach │ Short-Term Rentals Administrative Rules December 2021February 2024 Update http://str.groverbeach.org Page 7 permitted, per permit year (July 1-June 30), to maintain owner-occupied status. In no instance can an owner-occupied permit holder utilize an on-site camper, RV, or stay in a tent, on the property to qualify for an owner-occupied permit.

8.9. Non-Owner-Occupied – The owner or entity does not reside permanently at the property and rents their entire home and is not present during the duration of the stay.

9.10. Local Contact – All STRs must provide a local contact person who is available 24-hours a day seven (7) days per week and must be located within a 30 45 minute drive of the short-term rental property.

The local contact must respond to a complaint within 30 minutes and be able to be present at the non-owner occupied dwelling within 30 45 minutes, if necessary. Typically for owner-occupied units, this is the owner, but may also include a secondary contact that is located within 30 45 minutes of the short-term rental property. City staff will contact the local contact person prior to permit issuance and renewal to verify their role.

10.11. Site Plan – A site plan showing the location of the residence, all buildings, and setbacks from property lines. An example of this is available at http://www.grover.org/DocumentCenter/View/8811/SitePlan-Example-GB?bidId= . Site Plan must indicate the location of parking, electrical meter, gas meter shutoff, and water shutoff valve.

This site plan needs to be to scale (i.e. 1 inch = 10 feet).

11.12. Floor Plan – A plan showing the entire floor plan (include all stories) of your residence must be included. Please indicate the location of the following: proposed room(s) to be used for short-term rentals, if using the entire house, indicate entire house, location of all smoke detectors, carbon monoxide detector(s), fire extinguisher within kitchen. Plans are to be completed to scale (i.e. 1 inch = 10 feet). An example is available at:
http://www.grover.org/DocumentCenter/View/8812/Floor-PlanExample-GB?bidId=.

12.13. Grant Deed – A grant deed is required for any short-term rental permit owned by a property for less than a year, and/or does not match City property records.

13.14. CC&Rs/HOA – These are required if your property was developed as a planned unit development (PUD), or your property is part of a Homeowners Association or has recorded Covenants, Conditions, and Restrictions. A copy of these restrictions are typically included with your deed or escrow papers. If you need to obtain additional copies, you will need to visit the San Luis Obispo County Recorder’s Office.

14.15. Authorized Agent Form – This form is required if an application is being submitted by a property manager or renter with authorization City of Grover Beach │ Short-Term Rental Administrative Rules December 2021November 2023 Update http://str.groverbeach.org Page 8 from a landlord. This form is not required if you will be managing your own property. The form can be accessed at
http://grover.org/DocumentCenter/View/6732. This form is not required if you will be managing your own property.

A.B. Business Tax Certificate. Concurrent with an application for a STR permit, the applicant must submit an application for a business tax certificate (BTC). The applicant shall pay the minimum BTC amount, as established in the Master Fee Schedule. All short-term rental permittees shall renew their BTC when it is required by the Grover Beach Municipal Code.

B.C. Inspections. After a review of the initial application submittal, an inspection is required for all non-owner-occupied units prior to approval of an STR permit. An inspection checklist can be accessed at
http://www.grover.org/DocumentCenter/View/8893/Non-Owner-OccupiedInspection-Checklist?bidId=. Owner-occupied STRs must complete a selfcertification checklist and submit this with their application. This checklist is included in the appendix for both owner and non-owner-occupied units and can be accessed here: http://www.grover.org/DocumentCenter/View/8894.

C.D. Approval. After review of an STR application and inspection completed for non-owner-occupied STRs, the Community Development Director, or their designee shall approve a short-term rental permit if the owner/operator demonstrates compliance with the STR ordinance. In no instance shall an STR operator advertise or complete stays without a valid STR permit after November 12, 2019. Short-term rental permits shall be limited to the issuance of one permit per property or one permit per building when units share common walls within multi-unit dwellings or within a mixed-use project for all new permits issued after October 1, 2021.

D.E. Notification. City staff shall notify all property owners and occupants in writing within a 150-foot radius for a non-owner-occupied STR following approval of the STR permit. The information provided will include the rental address, the owner’s name, 24-hour phone number for complaints, and the maximum number of occupants. No notification is required for owner-occupied STRs.

E.F. Issuance of Certificate. A certificate will be issued via email to the applicant’s email, as provided in the application. This certificate will include the owner’s name, permit number, and date of approval. Permits shall be issued to the owner only. If a permittee does not receive their certificate, they should email city staff at [email protected] and request a copy. It is the responsibility of the permittee to transmit this certificate to their property manager.

F.G. Renewals. All STR permits shall expire on July 31st of each calendar year.

Renewal notices will be sent via the applicant’s email provided on or before July 1 st of each year. The permit holder shall submit the STR renewal fee as shown on the City’s Master Fee Schedule, along with required application submittal materials. Any STR permit not renewed on or before August 1st of each calendar year shall be considered expired and will need to re-submitted as a new STR permit. If there is a wait list, the permittee will be placed on this list.

City of Grover Beach │ Short-Term Rentals Administrative Rules December 2021February 2024 Update http://str.groverbeach.org Page 9 H. Wait List. Upon reaching the maximum number of non-owner-occupied STR permits issued, the City will establish a wait list. If a permit is not renewed, or a permit is revoked, staff will notify the waitlist applicant of availability and the waitlist applicant will have fifteen (15) calendar days to submit an application. The wait list form can be found here: https://forms.office.com/g/WAy6Y0pwrR . Applicants on the wait list should provide contact information including an up to date mailing address, email address, and phone number.

1. A waitlist applicant may be allowed one (1) “pass” and remain at their current position on the waitlist. Should the waitlist applicant be ineligible or “pass” at their next opportunity, they will be removed from the waitlist and required to reapply to be on the waitlist.

2. Only one residence per applicant shall be allowed on the waitlist at any given time.

G.3. To be eligible for the waitlist, the property must contain a legal established qualifying residence.

H.I.Permit Denials. An STR permit or renewal may be denied for the following reasons:

1. Code Violations or Life Safety Issues – At the time the short-term rental permit application or annual permit renewal is submitted, the short-term rental property has an active code violation related to structures, land use or life safety issues, including but not limited to illegal structures, conversion of space without a building permit, illegal room additions, etc.

2. Suspension or Revocation – The operator has had a prior short-term rental permit suspended or revoked or has been cited for violating any provision of this Section or the Municipal Code related to the use or maintenance of the property of the short-term rental in the prior two years.

3. CC&R Prohibition –If there is credible evidence that any private governing documents, including but not limited to, conditions, covenants and restrictions (“CC&Rs”) that are valid and enforceable pursuant to the Davis-Stirling Common Interest Development Act, as set forth in California Civil Code Section 4000 et seq., which prohibit the use of such owner’s single-family dwelling, multi-family dwelling, or mobile home for use as an STR.

4. Lack of On-site Parking – The subject property lacks adequate on-site parking or impedes ingress and/or egress access to the subject property or adjacent properties.

5. Failure to Provide Information – The applicant/operator fails to provide any of the required application information or demonstrate compliance with the requirements of Development Code Section 4.10.185 or the Administrative Rules, which includes any additional information requested of City staff during the initial review period of a permit.

City of Grover Beach │ Short-Term Rental Administrative Rules December 2021November 2023 Update http://str.groverbeach.org Page 10

6. Business Tax Certificate
A Business Tax Certificate (BTC) is required along with an STR permit. An STR operator shall pay the minimum BTC amount. BTC’s are not pro-rated for operations associated with an STR.

BTC’s must be renewed on or before December 31 of each calendar year. BTC fees are separate from STR fees and TOT/TMD taxes. Renewals shall be remitted to the Administrative Services Department.

7. Payment of TOT/TMD Taxes
All STR operators must comply with the requirements, procedures, and schedule set forth in Article X, Chapter 6 of the GBMC regarding remittance of the Transient Occupancy Tax (TOT) and Tourism Marketing District (TMD) taxes to the City.

A. TOT / TMD Tax Rates. As of July 1, 2020, the Transient Occupancy Tax (TOT) is 12%. The tax rate for Tourism Marketing District (TMD) is 1.5%.

B. Payment Due. Payment of TOT/TMD taxes are due on or before the last day of the month following the reporting period (i.e., June reporting period, due on July 31).

Postmarks are not accepted.

C. Payment. Payment of TOT/TMD may be made either online only at https://str.groverbeach.org, through electronic check or credit card / debit card, by clicking on the link “Make TOT Payments” or clicking this direct link:
https://secure.hostcompliance.com/grover-beach-ca/remit/registration_number. or by completing this form and remitted to the city with either cash or check. You may access this document at the following link: Payments are the responsibility of the permittee. Platforms such as Airbnb, VRBO, etc. do not remit these taxes to the City; therefore, it is the permittee’s responsibility to ensure payments are made.

D. Penalties. Penalties are due consistent with Article X, Chapter 6 of the GBMC.

E. Exception. Exceptions to payments of TOT/TMD shall be consistent with Article X, Chapter 6 of the GBMC and shall include proper documentation.

8. Short-Term Rental Operator Regulations
The following are regulations and clarifications for short-term rental operators. These regulations will be updated periodically for clarification of situations that may develop based on the implementation of the STR regulations within the City.

A. Owner-Occupied STR Requirements. The following are requirements that shall be adhered to qualify for an owner-occupied STR permit. If you do not meet these regulations, an STR permit shall be submitted as a non-owner-occupied STR.

1. During Stays. An owner must be in the residence or in another residence on the property during the time of a stay during the hours of 10:00 p.m. to 7:00 a.m.

City of Grover Beach │ Short-Term Rentals Administrative Rules December 2021February 2024 Update http://str.groverbeach.org Page 11

2. Property Verification. At the time of application, an owner must submit their property tax bill issued by the San Luis Obispo County Assessor’s office. This tax bill must contain the “homeowners exemption” line.

3. Multiple Units on a Property. An owner-occupied STR permit may be issued for a maximum of one unit when there are multiple units on the property, legally permitted, and if it is an ADU constructed prior to June 17, 2019. In no instance can an STR permit be issued for an ADU constructed after June 17, 2019. A non-owner-occupied permit may be issued for the primary unit when a newn ADU is constructed, and the owner occupies the ADU.

4. Use of Accessory Dwelling Units. Accessory dwelling units or the primary residence may be rented as an entire home stay if the following qualifications are met: the accessory dwelling unit was legally permitted prior to June 17, 2019, or the owner had applied for a building permit for an accessory dwelling unit on or before June 17, 2019; and the owner will reside in either the primary residence or accessory unit during the duration of a stay.

5.4. Use of Tiny Homes. Tiny homes on Wheels shall be prohibited from use as a short-term rental.

6. Entire Home Rental Exception. A maximum of 30 nights total, is permitted per permit year and still allow the owner-occupied status during a permit year (August 1 to July 31). In no instance may an accessory dwelling unit and the primary residence be rented simultaneously.

B. Non-Owner Occupied Requirements. The following are requirements that shall be adhered to in order to qualify for a non-owner-occupied STR permit.

1. Multiple Units on a Property. A non-owner-occupied STR permit shall be limited to the following:
a. Single-family residences. Lots with a legally permitted singlefamily residence, unless the property was developed in accordance with the provisions afforded under the HOME Act (Government Code 65852.21 or 66411.7). and a secondarya secondary unit (e.g., guesthouse, accessory dwelling unit (ADU) ), legally permitted or constructed prior to June 17, 2019, shall be limited to the issuance of one (1) STR permit. b. Multifamily residential development on a single lot (e.g., apartments) . STR permit issuance after August 1, 2021, shall be limited to one (1) unit per building when units share common walls.

2. Use of Accessory Dwelling Units. An accessory dwelling unit shall not be used as an STR for non-owner-occupied units.

City of Grover Beach │ Short-Term Rental Administrative Rules December 2021November 2023 Update http://str.groverbeach.org Page 12

3. Use of a Tiny Home. Tiny homes on Wheels shall be prohibited from use as a short-term rental.

C. Local Contact Person. A non-owner-occupied STR permit must include a local contact person. The local contact shall respond to a complaint within 30 minutes and be present at the STR within 3045-minutes of receiving a complaint at all times. An owner-occupied unit must include a secondary local contact person at the time of application, if the owner will utilize the entire home rental exception in Section 8.A.5.

1. Verification. City staff will verify the address provided for the local contact person(s) meets the 3045-minute response time by calculating the travel time from the local contact person’s address to the address of the STR using Google Maps, or similar mapping program, for a Saturday at 8:00 p.m. to determine travel time.

2. Phone Number. Local contact shall provide a phone number to be contacted by City Staff, or contracted third party. A toll-free number or answering service is acceptable, provided that the local contact responds to complaints as outline in this section.

3. Travel Time outside of 30 45 minutes. If city staff determines that the local contact person is outside the 3045-minute response travel time, the applicant must choose a new local contact person that meets the minimum criteria. No permit will be issued without a local contact person that meets these criteria.

4. Response to Complaints. The local contact person shall have 30 minutes to respond to a complaint that is logged by the City’s contracted third partythird-party vendor, or the City Police Department. If a telephonic message, text, or email is left or sent by either the third party vendor, or the City Police Department, the local contact shall respond by either calling the renters or going to the rental within 30 45 minutes of receiving this message.

5. Follow-up. The local contact shall reply to the City’s third partythirdparty vendor, and email city staff at [email protected] within 24 hours of the complaint and include the following:
a. Acknowledgement of the complaint received
b. Resolution of complaint

6. Change in local contact. Permittee shall notify city staff within 24 hours of a change to the designated local contact and provide the following:
name, address, email, and telephone number.

Hotline/Complaints. The City shall establish and maintain a non-emergency 24- hour hotline telephone number and electronic messaging system for the express purpose of receiving complaints regarding the operation of any short-term rental property and will forward those complaints to the local contact person for immediate resolution of the complaint, and/or, if necessary, to the Grover Beach Police Department if the complaint has not been resolved within 30 minutes of the initial call to the hotline, consistent with GBMC Article I, Chapter 4.

1. Information Collected. The hotline shall maintain a record of complaints received that include the following information:
a. Date and time of complaint;
City of Grover Beach │ Short-Term Rentals Administrative Rules December 2021February 2024 Update http://str.groverbeach.org Page 13 b. Nature of complaint;
c. Address of the short-term rental property that is the subject of the complaint;
d. Complainant’s name, address and contact information; e. Actions taken by the hotline attendant in response to the complaint including, but not limited to: persons contacted, including law enforcement, if applicable, and date and time of actions taken in response to complaint; and
f. Corrective action taken by the local contact person in response to complaint.

2. Duration of Registered Complaint. All complaints shall be kept for a maximum of three (3) years from the date the complaint was received.

3. Notification. The owner/operator shall receive a copy of the complaint received through electronic communications (i.e., email).

D. Advertising. The following are requirements to be placed on listing for all platforms and advertisements for STRs.

1. Permit Number. All STR advertisements shall include “Grover Beach STR Permit _____”. This information shall be located in the platform rental summary near the top of the advertisement printed in the same size font as the largest font used in the summary.

2. Maximum Number of Occupants. All STR advertisements shall also include the maximum number of permitted overnight occupants which shall be equal to or less than the maximum number of occupants on the approved STR Permit.

3. Temporary/Permanent Signage. All owners/operators shall not place any signage on the property indicating the use of the property as a short-term rental for safety of guests and owner/operators.

E. Responsible Party. As a part of an STR stay or rental, a responsible party must be designated. The responsible party is the person that signs the STR contract, either through a physical form or through a hosting platform. The responsible person is responsible for ensuring all guests and occupants comply with the STR regulations at all times.

F. Rental Unit Requirements. The following are requirements for all rental units or rooms that are to be occupied by guests.

1. Property maintenance. The property is well maintained and clean appearance and is consistent with the submitted site plan.

2. Legible Street Address. The property’s street address numbers are clearly visible from the street using 4-inch numbers and contrast to the color of the mounting surface.

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3. Trash / Recycling. Appropriate trash and recycling containers are not visible from the street and accessible to the renter.

4. Exterior Gates. Exterior gates leading to and from the front, side, and/or back yards are not padlocked and can be used in case of an emergency.

5. Required Parking Location and Surfaces. All residences must meet the minimum parking requirements in Development Code Section 3.50.

Surface parking spaces must be a minimum of 9 feet by 18 feet located on an approved hardscape material (Section 4.10.185.H.3). Hardscape materials shall include concrete, asphalt, pavers, gravel base and other acceptable materials as determined by the City Manager. Hardscape materials do not include lawn, landscape areas, dirt, or mulch. Parking spaces shall not block existing sidewalks or if no sidewalk exists, the parking spaces shall not be within the future location of the public sidewalk. If you have questions about the location of future sidewalks, please contact the City’s Public Works Department at (805) 473-4530.

6. Emergency Map. An emergency exit map is posted in an area visible to the renter that illustrates how to exit the property in the event of an emergency.

7. Hallway / Exit Doors. Hallway and exit doors are operational and not obstructed.

8. Double Keys Dead Bolt. Doubled-keyed dead bolt locks are prohibited on all exit doors and must not be present.

9. Minimum Sleeping Room Size. Bedrooms or sleeping rooms occupied by renters shall be a minimum of 7 feet in all directions and not less than 70 square feet in area and have an egress window and door.

10. Carbon Monoxide Detector. All STRs shall have a minimum of one carbon monoxide detector with AC power and a battery back-up. This is to be located either in the common room for a residential unit.

11. Smoke Detector. Smoke detectors shall be operational at all times.

Smoke detectors shall be either DC (direct current) with a 10-year battery life or AC (alternating current) with a battery back-up. There shall be a smoke detector located in each bedroom rented as a STR and the hall leading to the bedroom(s). If a living room or sleeping couch is utilized, a smoke detector must also be in place in that area.

12. Fire Extinguisher. All STRs shall one fire extinguisher located in or near the kitchen.

13. Fire Sprinklers. Residences with existing fire sprinkler systems shall have an annual fire sprinkler system inspection indicating the system has “passed”. An STR Permit cannot be issued until an inspection has City of Grover Beach │ Short-Term Rentals Administrative Rules December 2021February 2024 Update http://str.groverbeach.org Page 15 been performed and passed. Any required repairs shall be performed by a licensed C-16 fire sprinkler contractor prior to issuance of an STR permit.

14. Placement of Permit. The owner/operator shall post the City issued STR permit in a location visible to guests.

15. Good Neighbor Brochure. The owner/operator shall provide the responsible party with the City’s good neighbor brochure either by hardcopy or a link to the City’s website. This link should be included in any “rules” established by the owner/operator.

G. Inspections. For non-owner-occupied units, an inspection shall be completed by city staff prior to issuance of an STR permit to verify the application materials and ensure the STR requirements have been met. A copy of the Non-Owner-Occupied Inspection Checklist is available as a part of the appendix. For owner-occupied STR units, a self-certification inspection is required and needs to be submitted concurrently with an STR application. A copy of the Owner-Occupied Self Certification Checklist is included as a part of the appendix.

City staff may inspect any STR if there is “good cause” for potential violations including but not limited to hotline complaints, code enforcement complaints, notifications from hosting platforms of potential violations, etc. City staff shall notify the owner/operator of an inspection and the owner/operator shall allow an inspection within 72-hours of the notification. A notice of violation may be issued if violations are found.

H. Transfer/Change in Ownership. If the title changes from a person a living trust, where the owners are named as the trustees, notification to the City is required but a new application is not required.

If a STR permit was revoked or suspended and a new STR application is submitted indicating a change of ownership, all previous owners shall be prohibited from being part of the new ownership and the new STR application cannot include a spouse or other immediate family member (e.g., siblings, children, parents, grandparents), a change to ownership percentage, name change, or transfer to spouse or other family member (e.g., siblings, children, parents, grandparents).

The City Manager may request additional ownership documents and information to ascertain if the change in ownership is an attempt to allow the STR to be operated by another family member. The City Manager in his independent judgement may deny the new STR permit based on the determination that the new ownership is not a complete change in ownership.

In no event may a permit be transferred when a property is purchased. New owners must apply for a separate permit, and submit all required documents, and fees, etc. If there are no permits available, the new property owner may submit a form to be placed on the waitlist.

I. Minimum Number of Overnight Stays to Maintain Valid Permit. All permits shall have a minimum of 12 overnight stays during the permit year, July 1 through June City of Grover Beach │ Short-Term Rental Administrative Rules December 2021November 2023 Update http://str.groverbeach.org Page 16

30. If an owner does not comply with the minimum number of 12 stays, the permit will be revoked.

9. Violations
Notice of Violations shall be issued to operators of Short-Term Rentals based on the following rules.

1. Advertising without a STR Permit number listed. All permitted shortterm rentals must include their STR number in all advertisements or may result in a violation as follows:
a. A Notice of Violation letter or email will be sent to operators / permittees, providing 14-days to update listings with required information.
b. If the violation remains after 14 days, a follow-up letter / email will be provided to come into compliance, within 7 days. c. If the violation remains, or another violation is found within 90 days, a citation may be issued.

2. Disturbance of the peace violation. A police report is taken for disturbing the peace with a renter / guest staying at an STR shall result in a violation as follows:
a. 1
st Violation within 90 days. A citation may be issued.
b. 2
nd Violation within 90 days. A citation may be issued.
c. 3
rd Violation within 90 day is cause for permit revocation consistent with Development Code Section 4.10.185.L.

3. Failure to Remit Required Taxes. Taxes are required to be remitted, or reported each month, even if no stays are completed. Failure to pay taxes in a timely manner shall result in the following:
a. Fines shall be levied consistent with GBMC Article X, Chapter

6. b. Failure to Make Payments – If TOT or TDM taxes are not remitted in accordance with GBMC Article X, Chapter 6 after 90 days this shall be cause for permit revocation consistent with Development Code Section 4.10.185.L

4. Failure of Local Contact to Respond. A local contact shall respond to a call from the City’s third partythird-party vendor within 30 minutes as required by Section 8.C.3. If a local contact does not respond to this phone call as required by Section 8.C.3, this shall result in a violation as follows:
a. First violation, a letter / email will be issued by City staff warning the permittee and the local contact to respond to all calls within 30 minutes.
b. 2
nd Violation within 90 days, a citation may be issued
c. 3
rd Violation within 90 days, a 2nd citation may be issued d. 4
th Violation within 90 days is cause for permit revocation consistent with Development Code Section 4.10.185.L.
e. One violation is considered a call between a 48-hour period (i.e. multiple calls on a weekend is considered one violation).

City of Grover Beach │ Short-Term Rentals Administrative Rules December 2021February 2024 Update http://str.groverbeach.org Page 17

5. Occupancy Limit Violation. Hosting renters beyond the allowed limit of your permit occupancy shall result in a violation as follows:
a. a. First Violation. A letter shall be sent to the property owner informing them of the violation. Property owner must ensure total number of guests match their allowed occupancy. If there is a police report taken this may be waived to an citation. b. b. 2nd Violation. A citation may be issued. A violation is considered a documented stay identified by the City’s 3rd party vendor within 90 days.
c. c. 3rd Violation. A citation may be issued. A violation is considered a 2nd documented stay identified by the City’s 3rd party vendor within 90 days.

6. Operation of a Short-Term Rental without a Permit. It is illegal to operate a short-term rental without a valid permit. Operations without a STR Permit shall result in the issuance of a Notice of Violation as follows:
a. First Violation. A letter shall be sent to the property owner informing them of the violation and 14 days to comply with either submittal for a permit or removal of the advertisement. b. 2
nd Violation. A citation may be issued. A violation is considered a documented stay identified by the City’s third party vendor within one year.
c. 3
rd Violation. A citation may be issued. A violation is considered a second documented stay identified by the City’s third party vendor within one year.
d. Code enforcement case to be referred to the City Attorney.

7. Noise Violations. No music, musical instrument, phonograph, compact disk player, loudspeaker, karaoke machine, sound amplifier, or any machine, device or equipment that produces or reproduces any sound shall be used outside or be audible from the outside of any short-term rental between the hours of 10:00 p.m. and 7:00 a.m. and the operation of a Short-Term Rental shall be in compliance with the City’s Noise Ordinance at all times. Failure to comply with the above shall result in a violation as follows:
a. First Violation. A copy of a signed sworn statement by the responding officer along with a warning letter shall be provided to the permittee and local contact.
b. 2
nd Violation within 90 days, a citation may be issued.
c. 3
rdViolation within 90 days, a citation may be issued.
d. 4
th Violation within 90 days is cause for permit revocation consistent with Development Code Section 4.10.185.L.
e. One violation is considered a call between a 48-hour period (i.e. multiple calls on a weekend is considered one violation).

8. Trash Violations.
a. 1
st Violation. A warning letter / email will be sent to the permittee and or local contact. Trash cans shall be removed from the rightof-way within 48 hours of receipt of the letter / email.

City of Grover Beach │ Short-Term Rental Administrative Rules December 2021November 2023 Update http://str.groverbeach.org Page 18 b. 2
nd Violation within 90 days. A 2nd warning letter / email will be sent to the permittee / local contact. Trash cans shall be removed from the right-of-way within 48 hours of receipt of the letter / email.
c. 3
rd Violation and subsequent violations within 90 days. A citation may be issued.

9. Other Violations. Other violations shall be reviewed by the Community Development Director to determine severity of violations.

10. Revocation of Permit
Revocation of a STR permit shall be consistent with Development Code Section 4.10.185.L and M.

Short-term Rental Ordinance Survey 2024
1 / 8

71.77% 89

10.48% 13

20.97% 26

30.65% 38

5.65% 7

1.61% 2

9.68% 12

1.61% 2
Q1 Which best describes you? (Select all that apply)
Answered: 124 Skipped: 0
Total Respondents: 124
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Homeowner
Renter
Own property
but do not l...

Short-term
Rental Operator
Neighbor to
Short-term...

Property
Management...

Business Owner
Other (please
specify)

ANSWER CHOICES RESPONSES
Homeowner
Renter
Own property but do not live here
Short-term Rental Operator
Neighbor to Short-term Rental
Property Management Company
Business Owner
Other (please specify)
Attachment 4
Short-term Rental Ordinance Survey 2024
2 / 8

0.00% 0

5.69% 7

25.20% 31

29.27% 36

25.20% 31

14.63% 18
Q2 Age Range
Answered: 123 Skipped: 1
TOTAL 123
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Under 18
18-24
25-34
35-44
45-54
55-64
65+

ANSWER CHOICES RESPONSES
Under 18
18-24
25-34
35-44
45-54
55-64
65+
Short-term Rental Ordinance Survey 2024
3 / 8

16.67% 20

26.67% 32

30.83% 37

17.50% 21

8.33% 10
Q3 Please rate your overall satisfaction with the current Short-term Rental Ordinance in Grover Beach.

Answered: 120 Skipped: 4
TOTAL 120
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Very satisfied
Satisfied
Neither
satisfied no...

Dissatisfied
Very
dissatisfied

ANSWER CHOICES RESPONSES
Very satisfied
Satisfied
Neither satisfied nor dissatisfied
Dissatisfied
Very dissatisfied
Short-term Rental Ordinance Survey 2024
4 / 8

18.18% 22

22.31% 27

34.71% 42

13.22% 16

11.57% 14
Q4 In your experience, how well do you feel the Short-term Rental Ordinance addresses the unique needs and challenges of the community of Grover Beach?
Answered: 121 Skipped: 3
TOTAL 121
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Very satisfied
Satisfied
Neither
satisfied no...

Dissatisfied
Very
dissatisfied

ANSWER CHOICES RESPONSES
Very satisfied
Satisfied
Neither satisfied nor dissatisfied
Dissatisfied
Very dissatisfied
Short-term Rental Ordinance Survey 2024
5 / 8

29.51% 36

22.95% 28

34.43% 42

3.28% 4

9.84% 12
Q5 How would you rate the impact of Short-term Rentals on your neighborhood’s overall character and livability?
Answered: 122 Skipped: 2
TOTAL 122
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Very satisfied
Satisfied
Neither
satisfied no...

Dissatisfied
Very
dissatisfied

ANSWER CHOICES RESPONSES
Very satisfied
Satisfied
Neither satisfied nor dissatisfied
Dissatisfied
Very dissatisfied
Short-term Rental Ordinance Survey 2024
6 / 8

43.36% 49

1.77% 2

38.94% 44

15.93% 18
Q6 FOR OPERATORS: Have you faced any challenges or difficulties in complying with the current regulations?
Answered: 113 Skipped: 11
TOTAL 113
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Not applicable
Yes
No
If Yes, please
specify..

ANSWER CHOICES RESPONSES
Not applicable
Yes
No
If Yes, please specify..

Short-term Rental Ordinance Survey 2024
7 / 8

35.25% 43

26.23% 32

38.52% 47
Q7 Are you aware of any Short-term Rentals in your neighborhood? Answered: 122 Skipped: 2
TOTAL 122
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Yes
No
If yes, have
STRs caused ...

ANSWER CHOICES RESPONSES
Yes
No
If yes, have STRs caused any issues? Please describe.

Short-term Rental Ordinance Survey 2024
8 / 8

6.67% 8

45.00% 54

48.33% 58
Q8 Do you believe there is a need for any adjustments or changes to the current Short-term Rental regulations?
Answered: 120 Skipped: 4
TOTAL 120
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Yes
No
If yes, please
specify.

ANSWER CHOICES RESPONSES
Yes
No
If yes, please specify.

Grover Beach City CouncilFebruary 13, 2024

Grover Beach City Council
February 13, 2024