ORDINANCE NO. 04-22
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF ORANGE AMENDING CHAPTER 5.94 OF
THE ORANGE MUNICIPAL CODE REGARDING
THE LICENSING AND ESTABLISHMENT OF SHORT
TERM RENTAL BUSINESSES IN THE CITY TO
CLARIFY AND UPDATE REGULATIONS RELATING
TO OWNERSHIP, NUMBER OF STAYS, GOOD
NEIGHBOR POLICY DISSEMINATION, PARKING,
BEDROOMS, AND OTHER ADMINISTRATIVE
MATTERS.
THE CITY COUNCIL OF THE CITY OF ORANGE DOES HEREBY ORDAIN AS FOLLOWS:
SECTION I:
1. The subject Ordinance is not subject to the provisions of the California Environmental Quality Act (CEQA) per State CEQA Guidelines (Guidelines) Sections 15060(c)(2) and 15060(c)(3) because review and evaluation of potential impact of the Ordinance demonstrate that it will not result in a direct or reasonably foreseeable indirect physical change in the environment and it is not a "project" as defined in Guideline 15378.
2. The subject Ordinace is exempt from CEQA per Guideline 15061(b)(3) because it can be seen with certainty, after review and evaluation of the facts regarding short term rentals in the City of Orange, that there is substantial evidence that adoption of this Ordinance would not have a significant effect on the environment and the common sense exemption applies.
3. In the unlikely event the Ordinance would constitute a project under CEQA, it is categorically exempt from the provisions of CEQA per Guidelins 15321 (Class 21, Enforcement Actions by Regulatory Agencies) because the Ordinance is an action taken by the City as a regulatory agency and involves amendment to the Business Taxes and Regulations provisions of the Orange Municipal Code as authorized by local ordinance, to regulate the issuance of permits and licenses for short term renta l businesses to prevent a public nuisance. As such, no further analysis is warranted or required.
SECTION II:
Section 5.94.060.A of the Orange Municipal Code, “ Business Taxes and Regulations – Short Term Rental Businesses – Short Term Rental Regulation s - Ownership,” is hereby amended in its entirety to read as follows:
A. Ownership. A short term rental permit shall only be issued for a property owned by an individual, a personal trust, or a limited liability company which is solely owned by an individual or a personal trust . No short term rental permit shall be issued to a corporation , a limited liability company other than that described herein , or any form of business trust . Not 2 more than two (2) short term rental permits shall be issued to the same individual or personal trust. Any short term rental permit issued to a limited liability company shall be attributed to the individual or the personal trust owning the limited liability company.
SECTION III:
New Section 5.94.060.F is hereby added to the Orange Municipal Code, “Business Taxes and Regulations – Short Term Rental Businesses – Short Term Rental Regulations – Number of Stays,” to read as follows:
F. Number of Stays. A short term rental shall be booked and rented for a minimum of twelve (12) separate stays during any one permit year.
SECTION IV:
Section 5.94.060.G of the Orange Municipal Code, “Business Taxes and Regulations – Short Term Rental Businesses – Short Term Rental Regulations – Good Neighbor Policy ,” is hereby amended in its entirety to read as follows:
H. Good Neighbor Policy.
1. Within ten (10) days of issuance of a short term rental permit, the owner of a short term rental shall notify each adj acent and facing property owner and each adult resident of said property, of the existence of the short term rental business and provide a written list of the rules and restrictions and up-to-date property manager contact information (the Good Neighbor Policy). Evidence of delivery of the Good Neighbor Policy, including a copy of the policy, the address of the neighbors, and the date delivered, shall be pr ovided to the city within ten (10) days of issuance of a short term rental permit.
2. The owner of a short term rental shall notify all occupants of the short term rental of the rules and restrictions imposed on the short term rental , as contained in thi s chapter, by posting a copy of said list of rules and restrictions in a prominent location in the short term rental at all times occupants are present.
SECTION V:
Section 5.94.060.H of the Orange Municipal Code, “Business Taxes and Regulations – Short Term Rental Businesses – Short Term Rental Regulations – Parking,” is hereby amended in its entirety to read as follows:
I. Parking. Off-street parking shall be required and shall conform to the provisions of Section 17.34.060 and Table 17.34.060.A of this code, “Required Number of Parking Spaces for Residential Uses,” as determined by the Director of Community Development . All vehicles of short term rental occupants shall be parked o nly in an approved driveway or garage on the short term rental property. Street parking by short term rental occupants is not permitted.
3 SECTION VI:
Subsection N is hereby added to the Orange Municipal Code Section 5.94.060, “Business Taxes and Regulations – Short Term Rental Businesses – Short Term Rental Regulations,” to read as follows:
N. Sleeping Quarters. Any bedrooms advertised in a short term rental listing or otherwise made available at the property shall be legally permitted, habitab le bedrooms and not include converted garage space, closets or other portions of the dwelling not in compliance with city building standards.
SECTION VII:
Section 5.94.070.B of the Orange Municipal Code, “Business Taxes and Regulations – Short Term Rental Businesses – Violation/Penalty – Offenses,” is hereby amended in its entirety to read as follows:
B. Offenses. Violations of this chapter shall be classified as minor or major offenses. Property owners shall be charged with a separate offense for each and every day during any portion of which any violation of any provision of this chapter is committed, continued or permitted by such person.
1. The following shall constitute a minor offense:
a. Property manager response more than thirty (30) minutes but less than sixty (60) minutes after a complaint.
b. Occupancy limit exceeded by up to two persons.
c. One verified complaint of occupant vehicles parked on the street during any one occupancy.
d. Failure to resolve noise complaint during “quiet time” within thirty (30) minutes.
e. Other violations deemed minor by the City Manager or designee.
2. The following shall constitute a major offense:
a. Property manager response sixty (60) or more minutes after a complaint.
b. Occupancy limit exceed ed by more than two persons and/or advertising or renting of unpermitted sleeping quarters.
c. Rental of fewer than two nights.
4 d. Failure to abide by Good Neighbor Policy , including failure to provide a copy of the policy to all adjacent and facing neighbors as required.
e. More than one verified complaint of occupant vehicles parked on the street during any one occupancy.
f. More than one verified noise complaint during any one occupancy.
g. Failure to pay required Transient Occupancy Tax when due.
h. Criminal activity on the short term rental property.
i. Two prior minor offenses within any continuous period of twelve (12) consecutive months.
j. Failure to obtain or timely renew short term rental permit and/or business license and advertising or renting a property without first obtaining a valid short term rental permit.
k. Other violations deemed major by the City Manager or designee.
SECTION VIII:
New Section 5.94.070.C.1.c is hereby added to the Orange Municipal Code, “Business Taxes and Regulations – Short Term Rental Businesses – Violation/Penalty – Revocation,” to read as follows:
c. Failure to book and rent the short term renta l for the minimum number of stays required by Section 5.94.060.F.
SECTION IX:
If any section, subdivision, paragraph, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each section, subdivision, p aragraph, sentence, clause and phrase thereof, irrespective of the fact that any one (or more) section, subdivision, paragraph, sentence, clause or phrase had been declared invalid or unconstitutional.
SECTION X:
The City Clerk is hereby directed to cert ify the adoption of this Ordinance and cause the same to be published as required by law. This Ordinance shall take effect thirty (30) days from and after the date of its final passage.
5 ADOPTED this ____ day of ___________________, 2022.
Mark A. Murphy, Mayor, City of Orange
ATTEST:
Pamela Coleman, City Clerk, City of Orange
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF ORANGE )
I, PAMELA COLEMAN, City Clerk of the City of Orange, California, do hereby certify that the foregoing Ordinance was introduced at the regular meeting of the City Council held on the ___ day of _____________, 20 21, and thereafter at the regular meeting of said City Council duly held on the ___ day of ____________, 20 21 was duly passed and adop ted by the following vote, to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
Pamela Coleman, City Clerk, City of Orange