Agenda Item
City Council
Item #: 9.1. 6/14/2022 File #: 22-0295
TO: Honorable Mayor and Members of the City Council
THRU: Rob Houston, City Manager
FROM: Will Kolbow, Assistant City Manager/Administrative Services Director
1. SUBJECT
Introduction and First Reading of an Ordinance amending the Orange Municipal Code relating to Short Term Rental Business regulations. Ordinance No. 04-22.
2. SUMMARY
An Ordinance amending Chapter 5.94 of the Orange Municipal Code (Short Term Rental Businesses) to update and clarify the requirements and regulations for short term rental business operations.
3. RECOMMENDED ACTION
Introduce and conduct First Reading of 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.
4. FISCAL IMPACT
None.
5. STRATEGIC PLAN GOALS
Goal 4: Provide outstanding public service
a: Obtain, implement, and evaluate public input into our services and programs.
6. DISCUSSION AND BACKGROUND
The City’s Short Term Rental (STR) program went live in late summer 2021 and the maximum number of 125 permits have been issued. To date, an estimated $200,000 in Transient Occupancy Tax (TOT) has been collected. In the implementation and administration of this program, staff has identified several areas in the Orange Municipal Code (OMC) which would benefit from the additions and clarifications proposed below:
The proposed Ordinance would amend Chapter 5.94 of the OMC regarding the licensing and establishment of STR 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.
City of Orange Printed on 6/9/2022Page 1 of 3
powered by Legistar™
Item #: 9.1. 6/14/2022 File #: 22-0295
Section 5.94.060.A (Ownership)
In addition to ownership by an individual or a personal trust, add a property owned by a limited liability company solely owned by an individual or a personal trust.
New Section 5.94.060.F (Number of Stays)
The STR shall be booked and rented for a minimum of twelve separate stays during any one permit year.
Section 5.94.060.G (Good Neighbor Policy)
Within ten days of issuance of a STR permit, owner shall notify each adjacent and facing property owner and each adult resident of the existence of the STR business, and provide a written list of the rules and restrictions, including up-to-date property manager contact information. Owner shall provide evidence to the City of delivery and related neighbor’s addresses within those ten days.
Clarifies the requirement to notify renters and post a property’s STR Rules and Regulations.
Section 5.94.060.I (Parking)
Emphasizes street parking by the STR occupants is not permitted.
New Section 5.94.060.N (Sleeping Quarters)
Any bedrooms advertised in a short term rental listing or otherwise made available at the property shall be legally permitted, habitable bedrooms and not include converted garage space, closets or other portions of the dwelling not in compliance with City building standards.
Section 5.94.070.B (Violation/Penalty-Offenses)
Clarifying 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.
Further clarifying item on the list of major offenses:
Failure to abide by Good Neighbor Policy, including failure to provide a copy of the policy to all adjacent and facing neighbors as required.
More than one verified complaint of occupant vehicles parked on the street during any one occupancy
More than one verified noise complaint during any one occupancy.
Occupancy limit exceeded by more than two persons and/or advertising or renting of unpermitted sleeping quarters.
Failure to obtain or timely renew short term rental permit and/or business license by the due date and advertising or renting a property without first obtaining a valid short term rental permit.
Adding to the list of minor offense:
City of Orange Printed on 6/9/2022Page 2 of 3
powered by Legistar™
Item #: 9.1. 6/14/2022 File #: 22-0295
One verified complaint of occupant vehicles parked on the street during any one occupancy.
New Section 5.94.070.C.1.c (Violation/Penalty-Revocation) Failure to book and rent the short term rental for the minimum number of stays required by Section
5.94.060.F.
Staff recommends the City Council adopt Ordinance No. 04-22 amending Chapter 5.94 of the Orange Municipal Code regarding the licensing and establishment of short term rental (STR) businesses in the City.
7. ATTACHMENTS
· Ordinance No. 04-22 clean
· Ordinance No. 04-22 redline
City of Orange Printed on 6/9/2022Page 3 of 3
powered by Legistar™