Pacifica City Council
February 24, 2025

PLANNING COMMISSION
Staff Report
Scenic Pacifica
Incorporated Nov. 22, 1957
DATE: January 21, 2025 FILE: TA-127-25
ITEM: 1
SUBJECT: File No. 2025-001 – Text Amendment TA-127-25, initiated by the City of Pacifica, to repeal and replace Article 49, “Short-Term Rentals” of the City of Pacifica Zoning Regulations (Title 9, Chapter 4 of the Pacifica Municipal Code) relating to the regulation and permitting of Short-Term Rentals and establishing fines for violations consistent with Government Code section 25132(e); amending Section 9-4.2904 “Exempted Signs”; and finding the text amendment exempt from the California Environmental Quality Act (CEQA).

PROJECT
LOCATION: Citywide
PUBLIC NOTICE: A one-eighth page Notice of Public Hearing was published in the San Mateo Daily Journal on January 8, 2025.

CEQA
RECOMMENDATION: Exempt from the California Environmental Quality Act (CEQA) under CEQA Guidelines § 15061(b)(3) “General Rule” exemption.

REQUIRED
APPROVALS: Government Code Section 65853 et seq. requires the Planning Commission to conduct a public hearing and provide a written recommendation to the City Council on any new zoning ordinance, amendment to a zoning ordinance, or change in a property’s zoning designation. Pacifica Municipal Code Section 9-4.3501 et seq. similarly requires the Planning Commission to conduct a public hearing and to provide by resolution a recommendation to the City Council on any zoning text amendment or change in a property’s zoning designation.

The City Council, as the legislative body of the City, must conduct a public hearing and enact by ordinance any zoning text amendment or change in a property’s zoning designation before it may take effect, with few exceptions. Public Resources Code Section 30514 additionally provides that any ordinance enacted by the City Council which amends the City’s zoning standards or zoning map shall not take effect within the 1 Packet Pg. 126
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Coastal Zone until the California Coastal Commission certifies an amendment to the City’s Local Coastal Program.

RECOMMENDED
ACTION: Adopt a Resolution initiating the Text Amendment, and recommending approval of the ordinance to City Council and finding the proposed ordinance is exempt from review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15061(b)(3). (Attachment A)
FISCAL IMPACTS:

The proposed amendments to the Short-Term Rental (STR) Ordinance are anticipated to have significant fiscal implications for the City of Pacifica through reduced Transient Occupancy Tax collections and increased administrative costs. Estimating the fiscal impact is difficult and depends on numerous variables as discussed below. However, implementation of these ordinance amendments will require close monitoring of fiscal impacts over the coming years and prudent financial planning to prepare for a potential worst case annual fiscal impact to the General Fund of up to $1.3 million in a combination of revenue losses and increased administrative costs.

STRs have historically been a major contributor to the City’s revenue, generating approximately $1.3–$1.5 million annually in Transient Occupancy Tax (TOT) collections. This figure was anticipated to grow to $1.6–$1.8 million following the November 2024 voter-approved increase in TOT from 12% to 15%. Additionally, STR permit fees and business license taxes collectively contribute about $300,000 per year. However, the new ordinance’s stricter regulations and expanded enforcement requirements are likely to significantly reduce the number of compliant operators, leading to a substantial decline in TOT revenue.

The 90-day rental cap for unhosted STRs alone is projected to reduce TOT revenue by $850,000–$900,000, assuming all currently permitted STRs continue operating under these conditions—a scenario unlikely given the expected attrition of operators due to these restrictions. Furthermore, the prohibition of unhosted STRs in multifamily dwellings and the imposition of new parking requirements (one off-street parking space per bedroom) will likely disqualify many current STR operators from obtaining future permits. Although it is not possible to predict the exact market response, and the timing of that response (understanding that the new STR Ordinance cannot go into effect in the Coastal Zone until approved by the Coastal Commission, revenue losses in the future could range from $950,000 to $1.2 million annually.

This estimate excludes the broader economic implications of this ordinance on Pacifica’s local economy, such as sales tax impacts to visitor-serving businesses, including restaurants, cafes, and retail establishments, who rely heavily on the hospitality sector. An assessment of broader economic implications, such as sales tax impacts from short-term renters versus long-term renters, whether tourists would choose to stay in Pacifica’s limited hotel inventory versus an STR outside of Pacifica, or other variables, would require an economic impact study conducted by a qualified consulting firm. The City Council has not requested such a study prior to their deliberation and direction regarding revisions to the STR Ordinance.

The implementation and enforcement of the revised STR ordinance will likely result in substantial increases in administrative costs. New operational requirements, such as permit cap management, monitoring STR activities, and ensuring compliance, will require additional staff 1 Packet Pg. 127
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time and resources. Specific provisions, including noise monitoring and regular inspections, will further escalate code enforcement costs and operational burdens.

The added complexities of the new regulations, such as tracking rental activities, identifying violations, bringing non-compliant accounts into compliance, initiating permit revocation processes, and compiling evidentiary packets for hearings are expected to significantly increase third-party administrative expenses. Staff is currently working with CSG, a consulting firm that may provide the necessary building inspection services for STR units, and HdL, the STR thirdparty administrator, to outline the enhanced scope of work and estimate the additional costs for implementing the new STR ordinance. Preliminary estimates suggest these third-party costs could increase by $50,000–$100,000 annually, not counting additional staff capacity that may be required to manage the increased complexities of the program.

The City’s strategic plan includes a comprehensive review of the fee schedule to ensure adequate cost recovery for STR permit processing and enforcement. STR permit processing fees will be reassessed as part of a broader master fee schedule review and require a future City Council decision about the level of cost recovery that may be feasible for STR operators to pay through permit fees.

BACKGROUND:

On June 11, 2018, following a recommendation by the Planning Commission (Resolution No. 994), the City Council adopted Ordinance No. 835 - C.S.1, establishing regulations for STRs within the City. Generally, Ordinance No. 835 - C.S. established operating, permit application, permit revocation, and enforcement processes within Article 49 of the Zoning Code (“STR Ordinance”). STRs are also required to comply with other applicable provisions of the City’s Municipal Code including but not limited to the transient occupancy tax (“TOT”) requirements and business license tax obligations in Title 3 of the Municipal Code. The application of all of these Municipal Code requirements by the City to permit and regulate STRs is often referred to as the City’s “STR Program.”
On June 13, 2022, approximately four years after adoption and implementation of Article 49, at the Council’s request, City staff provided a comprehensive update to the Council on implementation, including information on STR locations, TOT collections, impacts on the City’s housing stock, unpermitted operations, and City enforcement activities.2 Based on the comprehensive review of the Program, the City Manager recommended maintaining the STR Program and continuing data gathering to gain a greater understanding of the number and types of STRs, provide opportunities to identify unregistered operations and bring any Accessory Dwelling Units (“ADUs”) being utilized for STR purposes into compliance with City Ordinances that prohibit ADUs from being rented as STRs. Ultimately, the City Council directed that revisions to the STR Ordinance be revisited during the Council goal setting in 2023.3 On October 10, 2022, at the request of a Councilmember, City staff presented additional information to the City Council regarding residential property sales resulting in subsequent STR use and asked for direction on whether amendments to the STR Ordinance in the near term were warranted.4In response to community concerns that increasing the number of STRs would 1 City Council Ordinance No. 835-C.S.
2 City Council June 13, 2022 Agenda Report, Item No. 14. 3 City Council Minutes June 13, 2022
4 City Council October 10, 2022 Agenda Report, Item No. 10 1 Packet Pg. 128
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impact the City’s housing stock, a majority of the Council directed that the STR Ordinance be amended to impose a cap of 150 active STR Permits issued in Pacifica at any given time, and that further revisions to the STR Ordinance, beyond the Permit cap, be revisited during the Council goal setting in 2023.5
On February 27, 2023, following a recommendation by the Planning Commission (Resolution 2023-001), the City Council adopted Ordinance 888 - C.S. amending the City’s STR Ordinance to establish a cap of 150 active STR Permits that can be issued at any given time in residential districts citywide. Amendments also included clarifying the prohibition of Junior Accessory Dwelling Units (ADU) for use as STRs and modifying the expiration date of STR Permits to align with business license expiration timelines. Following Council adoption of the amended STR Ordinance, the City submitted an amendment to the City’s Local Coastal Program (LCP) Implementation Plan (IP) to the California Coastal Commission (CCC). In June 2024, the CCC certified Implementation Amendment Number LCP-2-PAC-23-0023-1.

From June to December 2024, the Council conducted four in-depth study sessions to discuss further amendments to the City’s STR ordinance, with a primary focus addressing potential and reported community impacts associated with short-term, transient uses within existing residential uses. The amendments proposed in the Draft Ordinance (Attachment A, Exhibit 1) reflect the key goals and priorities identified by the City Council and direction given to staff on potential revisions and additions to the City’s existing STR ordinance at the four prior study sessions.

City Council Study Sessions
This section summarizes the Study Sessions that occurred between June and December 2024.

The proposed amendments discussed in this staff report and presented in the Draft Ordinance are informed by and reflect feedback from the community and direction provided by the City Council at these meetings.

On June 24, 2024, City staff provided a report and presentation to the City Council to initiate discussion of updates to the City’s STR Program. Information presented to the City Council included an overview of current regulations and enforcement processes, outlined staff coordination efforts with the CCC, and summarized information gleaned from researching ShortTerm Rental provisions in eight jurisdictions. After receiving the staff report, presentation, and public comments and feedback, the City Council directed the City Manager to evaluate and research various policy and regulatory compliance topics.

On August 26, 2024, and at continued deliberations on September 9, 2024, staff presented detailed information, including implementation impacts and considerations, for each policy and regulatory compliance topic discussed at the June Study Session. The Council provided direction to the City Manager related to policy, regulatory compliance, and streamlining procedures for inclusion in the Draft Ordinance.

On December 5, 2024, staff provided updates to the Council on communications between City and CCC staff and requested that the Council discuss topics related to parking, STR density, multi-family dwellings, and minimum rental duration in light of CCC staff feedback provided. The City Council provided specific policy direction on these topics for inclusion in the Ordinance.

Additionally, the Council discussed regulations and provided clarification on policy and regulatory compliance provisions to include in the Draft Ordinance. 5 City Council Minutes October 10, 2022
1 Packet Pg. 129
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DISCUSSION/ANALYSIS
Planning Commission’s Role
The Planning Commission serves in an advisory role to the City Council for the proposed zoning amendment. In analyzing the proposed amendments, the Commission may consider prior City Council discussions and direction, public health, safety, comfort, and general welfare and consistency with the City’s General Plan.

Prior to making a recommendation to City Council, the Planning Commission should review the Draft Ordinance (Attachment A, Exhibit 1), and determine whether the proposed amendments effectively incorporate the key goals and priorities outlined by the City Council. Should the Planning Commission identify areas for improvement, specific recommendations may be provided to the City Council for consideration.

Draft Ordinance
The proposed text amendment in the Draft Ordinance would repeal and replace Article 49 “Short-Term Rentals” of Title 9, Chapter 4 of the PMC. The Draft Ordinance incorporates direction provided by the Council at the preceding study sessions. The following provides a detailed discussion of how the proposed text amendments address potential impacts and concerns within the City of Pacifica. The Draft Ordinance is provided in Attachment A, Exhibit

1. Neighborhood Impacts
Impacts of STRs on neighborhoods, such as increased noise, garbage, traffic, and decreased availability of parking, were discussed by the City Council. To address community concerns and ensure STRs operate in a compatible manner with existing residential uses, the Draft Ordinance significantly expands STR operation requirements, including differentiating operational requirements for hosted and unhosted rentals. Operational requirements established for purposes of addressing community concerns and potential issues associated with operation of STRs include the following:
• Requires STRs to be primary residences.
• Establishes advertising and signage obligations, including a requirement for the Cityissued STR Permit number on all mediums offering the availability or listing the STR and requiring the installation of an exterior sign with the STR permit details and a QR code with the operator and responsible party’s contact information. • Mandates a 24/7 responsible party who must respond to complaints within 30 minutes by phone or in person.
• Limits occupancy to two persons per legally permitted bedroom (excluding children under the age of 12).
• Requires one off-street parking space per bedroom that will be used as STR. • Includes time restrictions on the use of outdoor pools/spas. 1 Packet Pg. 130
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• Requires the operator to provide specific information to guests (e.g. occupancy limits, parking locations, refuse disposal requirements, the City’s noise regulations and social host liability ordinance).
• Explicitly states that STRs are subject to all applicable Pacifica Municipal Code regulations, including but not limited to the City’s noise regulations • Requires the installation of a noise monitor on the exterior of the property • Prohibits the use of any sound amplification device outside the building and restricts the use inside the STR where sound levels can be heard at the STR property line, • Establishes a maximum of 90 rental nights per year and a two-night minimum stay for unhosted rentals (no maximum or minimums apply to hosted rentals) • Includes requirements for a business license and compliance with transient occupancy tax regulations
Housing Availability
The amendments adopted in 2023 by the City Council (Ordinance 888 – C.S.) established a Citywide permit cap on the total number of STRs that can operate within the City at any given time. The cap was established to preserve the availability of housing, including affordable housing, and to ensure consistency with the adopted General Plan, Housing Element, and Local Coastal Land Use Plan policies. During City Council study sessions on the STR amendments in 2024, potential impacts on housing availability and affordability, including the risk of displacement, were discussed. To address these concerns, the Draft Ordinance includes a provision to prohibit unhosted STRs in multi-family developments (specifically defined as two or more units for this purpose), whereas hosted STRs in multi-family developments as an accessory use of individual units is permitted.

By prohibiting the use of an entire multi-family dwelling building as STR, the Draft Ordinance helps to ensure the continued availability of an important source of affordable housing.

Furthermore, by allowing hosted STR operations within multi-family developments, the Draft Ordinance provides opportunities for residents to supplement their income, potentially improving housing affordability for those who operate such businesses.

In addition to regulating STRs in multi-family dwellings, the Draft Ordinance continues to protect Accessory Dwelling Units (ADU) as a valuable housing resource. The Draft Ordinance continues to prohibit the use of ADU and Junior ADUs as STRs. However, the Draft Ordinance would allow the Operator of a Hosted Short-term Rental to reside in an ADU or Junior ADU and operate the STR in the main residence on the site where the STR is located. These regulations discourage the development of ADUs solely for STRs, ensuring they primarily serve as longterm housing solutions for Pacifica residents and contribute to the City’s overall housing stock.

By clarifying regulations, the Draft Ordinance supports the continued availability of ADUs and Junior ADUs as a housing option while allowing residents to potentially supplement their income by operating a STR within their primary residence.

Other Regulations
In addition to the topics discussed above, the Draft Ordinance also establishes new definitions; regulations related to compliance checks, proof of rental activity, permit renewal and expiration; 1 Packet Pg. 131
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grounds for suspension and revocation of permits; penalties and fines consistent with Government Code section 25132(e), enforcement procedures, and investigative tools for addressing violations of the STR regulations; and establishes that the cost of enforcement actions are the responsibility of the STR operator. These include, but are not limited to:
• Definitions for hosted and unhotsed STRs
• Required inspections for all unhosted STRs
• Establish revocation of an STR Permit in the event of two violations within a 12-month period, and if misrepresentation or false statements were used to obtain the permit Revisions to Section 9-4.2904 (Exempted Signs)
As indicated above, one of the operational requirements proposed in the Draft Ordinance would be to establish signage obligations for STRs to require an exterior sign with permit details and a QR code with operator and responsible party contact information. The sign would be a maximum size of 6 square feet in area. In addition to the revisions to Article 49, the Draft Ordinance would amend section 9-4.2904 of Article 29 of the Chapter 4 of Title 9 (“Sign Ordinance”) to add an exemption to specifically exempt STR signs erected in compliance with section 9-4.4905 from the City’s sign permit requirements in the Sign Ordinance.

Program Administration
Process Enforcement Improvements
Although outside the scope of the proposed ordinance, City Council also directed the City Manager to improve the permitting and enforcement processes for STRs. Staff are working on procedures and improvements including, but not limited to:
• Updated application forms with additional information • Permit cap and waitlist management
• Activity monitoring, enforcement, and reporting
• Revocation process
STR Location Map
]The City Council also requested that the City Manager research and address a variety of topics, including ongoing maintenance of a STR Location Map. Specifically, the City Council expressed interest in an interactive, web-based map allowing residents to identify legally operating STRs thereby allowing the public to identify those STRs that may be operating without the proper permits. Staff is researching how this could be done, and the staff and resources that would be required. Staff will report back to City Council at a future time if the City Manager determines this to be infeasible.

Consistency Analysis
The proposed amendments to the City’s STR Ordinance and Sign Ordinance align with the Pacifica General Plan 2040 in that the amendments maintain the economic benefits of STRs 1 Packet Pg. 132
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while effectively addressing community concerns. The Draft Ordinance is consistent with the following General Plan policies and programs.

Program HE-I-7 Preserve Existing Affordable Housing Units The Draft Ordinance specifically addresses preservation of existing affordable housing as it includes provisions limiting the use of multi-family units as STRs to hosed STRs only. It also clarifies that Junior ADUs cannot be used as STRs. These help to ensure the continued availability of an important source of affordable housing, and also provides opportunities for residents to supplement their income, potentially improving housing affordability.

Policy ES-G-1 Leverage Assets. Leverage Pacifica’s coastal location and unique assets as a primary means to strengthen the local economy, focusing on increasing tourism facilities, including shops, hotels, restaurants, and hiking trails.

STRs increase tourism by providing a diverse range of accommodation options and contribute to the City’s local economy in several ways. First, STRs generate revenue for the City in the form of business license tax (approximately $15,000 collected in 2023) and TOT (approximately $1.5 million in TOT from STRs projected for FY 24-25). Revenue streams from both business license and TOT can be used to fund essential city services such as infrastructure and recreation facility improvements, benefiting the tourist and local economies, as well as residents. As detailed in the June 24, 2024 City Council Staff Report6, the City assumes there are uncollected TOTs from Short-Term Rentals operating within the City of Pacifica. As part of the ongoing review of the Program, the City hired HdL Companies, an auditing, operations, and revenue solutions company, who is assisting the City with tracing these rentals and requiring the STR operators to register with TOT to report their gross receipts so the City may assess the outstanding tax liability. STRs attract a diverse tourist base to the city, introducing new customers to local shops and restaurants. Tourists who patronize these local businesses directly strengthen the local economy by generating revenue for local businesses and contributing to the City’s sales tax base. Finally, STRs provide supplemental income opportunities for Pacifica residents, fostering economic empowerment and enabling contribution to the local economy through increased spending at local businesses, or by pursuing their own local business. By establishing additional STR regulations and improving enforcement actions, amendments to the STR Ordinance effectively leverage the City's unique assets and strengthen the local economy.

Policy ES-I-7 Mixed Land Uses. Promote development of a broader mix of revenue-generating land uses, including hotels, to increase the City’s fiscal benefits.

The proposed Draft Ordinance promotes a broader mix of revenue-generating transient occupancy uses. By offering a diverse range of accommodation options catering to different budgets and travel styles, STRs attract a diverse range of tourists to the City of Pacifica. This increased diversity enhances the City’s fiscal health through revenue generated from business license, TOT, and sales taxes. Furthermore, it stimulates the local economy by increasing revenue generated by local businesses and STR operators.

Policy CD-G-3 Neighborhood Conservation. Preserve the unique qualities of each of Pacifica’s residential neighborhoods. Incorporate neighborhood narratives into the General Plan to reflect these unique qualities and inform appropriate development standards and other policies. 6 Staff Report available online at
https://pacificacityca.iqm2.com/Citizens/Calendar.aspx?From=1/1/2024&To=12/31/2024 1 Packet Pg. 133
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By limiting the total number of STRs in the City, distinguishing between hosted and unhosted rentals and expanding operating regulations that address potential neighborhood impacts such as noise, litter, and parking, the Draft Ordinance preserves the unique qualities of residential neighborhoods, consistent with this General Plan Policy.

Policy CD-I-6 Accessory Dwelling Units. Facilitate the creation of accessory dwelling units that contribute to the variety of available housing and do not disrupt neighborhood character. Update the Zoning Ordinance and Design Guidelines to address the integration of accessory dwelling units into the neighborhood fabric.

The Draft Ordinance directly supports the General Plan’s objective to facilitate the creation of accessory dwelling units (ADUs) that contribute to the variety of available housing, in that it maintains prohibitions on the use of ADUs and Junior ADUs as STRs and permits the use of ADUs and Junior ADUs as part of a hosted STR operation where the operator occupies the ADU or Junior ADU and the primary dwelling is rented on a short-term basis. The Draft Ordinance ensures that accessory dwellings continue to contribute to the variety of available housing and discourages the construction of accessory dwellings for the sole purpose of use as STRs. The Draft Ordinance effectively integrates ADUs and Junior ADUs and STRs into the neighborhood fabric and enables homeowners to supplement their income by offering their primary residence as a STR, while maintaining their ADU or JADU for personal use.

LOCAL COASTAL PROGRAM
Pursuant to Section 30514 of the California Public Resources Code, the Ordinance amendments would not be effective in the Coastal Zone until the CCC certifies an amendment to the City's Local Coastal Program (LCP). The CCC has found that outright bans or undue restrictions on STRs are inconsistent with Coastal Act policies prioritizing public access and visitor-serving uses.

As detailed in the December 5, 2024, City Council Study Session Staff Report7, City staff consulted with CCC staff on November 5, 2024, to discuss the feasibility of the proposed text amendments. CCC staff provided preliminary comments to staff, noting four areas of potential concern, including parking requirements, STR density limitations, use of multi-family dwellings as STRs, and minimum rental duration requirements. The City Council discussed these four topics at the December 5th study session and directed staff to amend the Ordinance to reflect CCC staff direction.

Following the adoption of the Draft Ordinance, a Local Coastal Program Amendment (LCPA) will be submitted to the CCC, who will determine whether to certify, certify with modifications, or deny the LCPA. Until such time as the CCC certifies the LCPA, existing STR regulations for areas located within the coastal zone will apply.

Coastal Act Policy No. 5 in Pacifica’s Local Coastal Land Use Plan8 states that “Lower cost visitor and recreational facilities and housing opportunities for persons of low and moderate income shall be protected, encouraged, and, where feasible, provided. […].” Removing housing units from the Coastal Zone, even temporarily, through their rapid conversion to STRs at a greater pace than development of new long-term housing conflicts with this policy and will 7 Staff Report available online at
https://pacificacityca.iqm2.com/Citizens/Calendar.aspx?From=1/1/2024&To=12/31/2024 8 Pacifica Local Coastal Land Use Plan, March 1980 as amended 1 Packet Pg. 134
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significantly impact the availability of housing in the Coastal Zone on a long-term basis. The proposed amendments would maintain allowances for STRs within the Coastal Zone, while providing additional regulatory and permitting requirements to address operational impacts on residential uses.

PUBLIC COMMENT
At the time of writing this report, staff had not received any public comment related to this Planning Commission action.

CALIFORNIA ENVIRONMENTAL QUALITY ACT
Staff recommends that the Planning Commission find the proposed zoning text amendment in the Draft Ordinance to be exempt from the California Environmental Quality Act (CEQA). The text amendment would be exempt from CEQA pursuant to the “General Rule” exemption in CEQA Guidelines Section 15061(b)(3) The General Rule exemption provides that “The activity is covered by the commonsense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.”
The text amendment would make amendments to the existing STR Ordinance to, among other things, establish provisions related to STR operation and enforcement actions for noncompliance. The additional provisions and regulations governing STRs would not have a significant effect on the environment.

STAFF RECCOMMENDATION
Staff recommends adoption of the attached resolution, initiating the text amendment, and recommending approval to the City Council.

COMMISSION ACTION
MOTION FOR APPROVAL:

Move that the Planning Commission FINDS the Draft Ordinance is exempt from the California Environmental Quality Act pursuant to CEQA Guidelines section 15061(b)(3); and ADOPTS the resolution included as Attachment A to the staff report to initiate Text Amendment TA-127-25 and recommends approval to the City Council; and INCORPORATES all maps and testimony into the record by reference.

ATTACHMENT LIST:

Attachment A - Draft Resolution for File No. 2025-001 STR Ordinance Text Amendment (DOCX)
Exhibit 1 - Draft Ordinance for File No. 2025-001 STR Ordinance Text Amendment (DOCX)
1 Packet Pg. 135
RESOLUTION NO.

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PACIFICA INITIATING TEXT AMENDMENT TA-127-25 AND RECOMMENDING THAT THE CITY COUNCIL ADOPT AN ORDINANCE REPEALING AND REPLACING ARTICLE 49 "SHORT-TERM RENTALS" OF CHAPTER 4 OF TITLE 9 OF THE PACIFICA MUNICIPAL CODE RELATING TO THE

REGULATION AND PERMITTING OF SHORT- TERM RENTALS, AMENDING PACIFICA MUNICIPAL CODE SECTION 9-4.2904 “EXEMPTED SIGNS”; ESTABLISHING FINES FOR VIOLATIONS CONSISTENT WITH GOVERNMENT CODE SECTION 25132 (E); AND

FINDING THE TEXT AMENDMENT EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) (FILE NO. 2025-001)
___________________________________________________________________ Initiated by: City of Pacifica
WHEREAS, on June 11, 2018, the City Council of the City of Pacifica adopted Ordinance 835-C.S. adding Article 49 "Short-Term Rentals" ("STRs") to Chapter 4 of Title 9 of the Pacifica Municipal Code to establish regulations governing the short-term rental of residential property within the City of Pacifica; and
WHEREAS, on February 27, 2023, the City Council adopted Ordinance 888-C.S. repealing and replacing Article 49 "Short-term Rentals" of Chapter 4 of Title 9 of the Pacifica Municipal Code relating to the regulation and permitting of short- term rentals; and WHEREAS, during 2024, the City Council advanced Goal 3: prioritize protection and development of affordable housing, Strategy 3.2: Update the Short-Term Rental Ordinance of the City’s Strategic Plan 2023 to 2030; and
WHEREAS, advancement of Goal 3, Strategy 3.2 of the City’s Strategic Plan included a comprehensive evaluation of the program’s status and enforcement activity; and
WHEREAS, the City Council held a Study Session on June 24, 2024, to receive information on the Short-Term Rental Program and provide direction on potential ordinance provisions for City staff to research and analyze and bring back to Council; and WHEREAS, the City Council held a Study Session on August 26, 2024, with continued deliberations occurring on September 8, 2024, to consider implementation impacts for each of the policy and regulatory compliance topics discussed at the June

1.a
Packet Pg. 136 Attachment: Attachment A - Draft Resolution for File No. 2025-001 STR Ordinance Text Amendment (5836 : Short-term Rental Program Study Session, and to provide direction on provisions for the updated Short-Term Rental Ordinance; and
WHEREAS, on November 5, 2024, city staff consulted with California Coastal Commission staff to discuss feasibility of the proposed text amendments; and WHEREAS, during the November 5, 2024 consultation between City staff and CCC staff, four areas of potential concern were identified and feedback was provided, including parking requirements, short-term rental density limitations, use of multi-family dwellings as short-term rentals, and minimum rental duration requirements; and WHEREAS, on December 4, 2024, the City Council held a Special Council Meeting to receive updates regarding the November 5, 2024 consultation meeting between City staff and California Coastal Commission discuss the four topics of concern and provide feedback and direction to staff on ordinance provisions and amendments; and WHEREAS, the Planning Commission held a duly noticed public hearing on the proposed amendments contained in Text Amendment TA-127-25 (File No. 2025-001) (“Draft Ordinance”) on January 21, 2025, and adopted Resolution No. # by a vote of # to # with # of absences, initiating and recommending City Council approval of Text Amendment TA127-

25. NOW, THEREFORE BE IT RESOLVED, by the Planning Commission of the City of Pacifica as follows:

1. The above recitals are true and correct and material to this Resolution.

2. In making its findings, the Planning Commission relied upon and hereby incorporates by reference all correspondence, staff reports, and other related materials.

3. The Planning Commission hereby finds as follows:
a. The proposed Draft Ordinance and included amendments to Article 49 are consistent with General Plan Program HE-I-7 Preserve Existing Affordable Housing Units, in that:
i. The Draft Ordinance specifically addresses preservation of existing affordable housing as it includes provisions limiting the use of multi-family units as STRs to hosted STRs only.
ii. Provisions limiting the use of multi-family units for STR purposes helps to ensure the continued availability of an important source of affordable housing, and provides opportunities for residents to

1.a
Packet Pg. 137 Attachment: Attachment A - Draft Resolution for File No. 2025-001 STR Ordinance Text Amendment (5836 : Short-term Rental Program supplement their income, potentially improving housing
affordability.
b. The proposed amendments Policy ES-G-1 Leverage Assets (Leverage Pacifica’s coastal location and unique assets as a primary means to strengthen the local economy, focusing on increasing tourism facilities, including shops, hotels, restaurants, and hiking trails), in that:
i. Short-term rentals increase tourism by providing a diverse range of accommodation options; and
ii. Short-term rentals contribute to the City’s local economy by generating business license tax and transient occupancy taxes (TOT), revenues from which can be used to fund essential city services such as infrastructure and recreation facility improvements, benefiting both the tourist and local economies; and
iii. Short-term rentals attract a diverse tourist base to the city, introducing new customers to local shops and restaurants; and iv. Tourists who patronize these local businesses directly strengthen the local economy by generating revenue for local businesses and contributing to the city’s sales tax base; and
v. Short-term rentals provide supplemental income opportunities for Pacifica residents, fostering economic empowerment and
enabling contribution to the local economy through increased spending at local businesses, or by pursuing their own local business; and
vi. By establishing additional short-term rental regulations and improving enforcement actions, amendments to the short-term rental Program effectively leverage the city's unique assets and strengthen the local economy.
c. The proposed amendments are consistent with General Plan Policy ES-I-7 Mixed Land Uses (Promote development of a broader mix of revenuegenerating land uses, including hotels, to increase the City’s fiscal benefits), in that:
i. The promotes a broader mix of revenue-generating transient occupancy uses; and

1.a
Packet Pg. 138 Attachment: Attachment A - Draft Resolution for File No. 2025-001 STR Ordinance Text Amendment (5836 : Short-term Rental Program ii. Allowing short-term rentals to operate within the City offers a diverse range of accommodation options catering to different budgets and travel styles; and
iii. Short-term rentals attract a diverse range of tourists to the City of Pacifica, thereby enhancing the City’s fiscal health through revenue generated from business license, TOT, and sales taxes; and
iv. Allowing short-term rentals to operate within the City stimulates the local economy by increasing revenue generated by local businesses and short-term rental operators.
d. The proposed amendments are consistent with General Plan Policy CDG-3 Neighborhood Conservation (Preserve the unique qualities of each of Pacifica’s residential neighborhoods. Incorporate neighborhood narratives into the General Plan to reflect these unique qualities and inform appropriate development standards and other policies), in that:
i. The Draft Ordinance preserves the unique qualities of residential neighborhoods by distinguishing between hosted and unhosted rentals and expanding operating regulations that address potential neighborhood impacts such as noise, litter, and parking. e. The proposed amendments are consistent with General Plan Policy CD-I6 Accessory Dwelling Units (Facilitate the creation of accessory dwelling units that contribute to the variety of available housing and do not disrupt neighborhood character. Update the Zoning Ordinance and Design Guidelines to address the integration of accessory dwelling units into the neighborhood fabric), in that:
i. The amended Short-Term Rental Program facilitates the creation of accessory dwelling units (ADU) that contribute to the variety of available housing by maintaining prohibitions on the use of ADUs and junior ADUs as STRs, ensuring that accessory dwellings continue to contribute to the variety of available housing and discouraging the construction of accessory dwellings for the sole purpose of use as STRs; and
ii. The amended Sort-Term Rental Program permits the use of ADUs and JADUs as part of a hosted short-term rental operation where the operator occupies the ADU or Junior ADU and the primary

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Packet Pg. 139 Attachment: Attachment A - Draft Resolution for File No. 2025-001 STR Ordinance Text Amendment (5836 : Short-term Rental Program dwelling is rented on a short-term basis, enabling homeowners to supplement their income by offering their primary residence as a short-term rental, while maintaining their ADU or Junior ADU for personal use.
f. The proposed amendments are consistent with in Pacifica’s Local Coastal Land Use Plan, Coast Act Policy No. 5, (lower cost visitor and recreational facilities and housing opportunities for persons of low and moderate income shall be protected, encouraged, and, where feasible, provided) in that:
i. The proposed amendments maintain allowances for STRs within the Coastal Zone, while providing additional regulatory and permitting requirements to address operational impacts on residential uses.

4. The public necessity, convenience, and general welfare clearly permit the adoption of the Draft Ordinance, in that clarifying operating regulations for hosted and unhosted short-term rentals reduces neighborhood impacts and ensures short-term rentals operate in a compatible manner with existing residential uses.

5. The Planning Commission further finds that this Ordinance is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to the commonsense exemption, Section 15061(b)(3) of the State CEQA Guidelines, because CEQA applies only to projects that have the potential for causing a significant effect on the environment. It can be seen with certainty that there is no possibility that this Ordinance will have a significant effect on the environment. This Ordinance is an exercise of the City’s police power to reduce the adverse effects of short term rentals. As a result, this Ordinance will not result in direct or indirect physical changes in the environment and is not subject to CEQA.

6. Implementation of the Draft Ordinance in areas located within the coastal zone is contingent upon the California Coastal Commission’s certification of a Local Coastal Program Amendment (LCPA)
BE IT FURTHER RESOLVED, the public testimony related to the Draft Ordinance has demonstrated that the presence of short-term rentals in residential neighborhoods has created quality of life issues including noise, trash, and parking congestion; and

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Packet Pg. 140 Attachment: Attachment A - Draft Resolution for File No. 2025-001 STR Ordinance Text Amendment (5836 : Short-term Rental Program BE IT FURTHER RESOLVED that the Planning Commission of the City of Pacifica does hereby recommend approval to the City Council of the City of Pacifica the zoning text amendment described in Text Amendment TA-127-25 attached hereto as Exhibit A to this Resolution.

PASSED AND ADOPTED at a regular meeting of the Planning Commission of the City of Pacifica, California, held on the 21st of January 2025.

AYES, Commissioners:

NOES, Commissioners:

ABSENT, Commissioners:

ABSTAIN, Commissioners:
____________________________
Samantha Hauser, Chair
ATTEST: APPROVED AS TO FORM:
____________________________ _____________________________ Samantha Updegrave, Michelle Kenyon, City Attorney
Community Development Director

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Packet Pg. 141 Attachment: Attachment A - Draft Resolution for File No. 2025-001 STR Ordinance Text Amendment (5836 : Short-term Rental Program PC Ord draft

ORDINANCE NO. ___________

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PACIFICA REPEALING AND REPLACING ARTICLE 49 (SHORT TERM RENTALS) OF CHAPTER 4 OF TITLE 9 OF THE

PACIFICA MUNICIPAL CODE RELATING TO THE REGULATION AND PERMITTING OF

SHORT-TERM RENTALS AND ESTABLISHING FINES FOR VIOLATIONS CONSISTENT WITH GOVERNMENT CODE SECTION 25132(E); AMENDING PACIFICA MUNICIPAL CODE SECTION 9-4.2904 (EXEMPTED SIGNS) (TEXT AMENDMENT TA-127-25); AND FINDING

ADOPTION OF THE ORDINANCE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) (FILE NO. 2025-001)
WHEREAS, on June 24, 2024, August 26, 2024, September 9, 2024, and December 5, 2024, the City Council of the City of Pacifica considered and provided input on ordinance revisions to the City’s Short-Term Rental Ordinance enacted on [insert date]; and WHEREAS, since enactment of the Short-Term Ordinance, residents have commented to the City Council about impacts of Short-term Rentals, including the loss of parking, excessive noise, disruptions to the community, loss of neighborhood integrity and other deleterious impacts; and
WHEREAS, the City Council has also received public comments relating to the sale of residential property in Pacifica for the singular purpose of using the property as a Short-term Rental, which can negatively impact the community by reducing housing units available for longterm residential use; and WHEREAS, Short-term Rentals can provide benefits to the community by providing economical options for transient lodging as well as income generating opportunities for property owners in Pacifica; and
WHEREAS, it is in the public interest to minimize the adverse impact of Short-term Rental activity on the health and safety of residents and visitors and to ensure such activity is conducted in a manner that preserves existing housing, communities and neighborhood integrity; and
WHEREAS, regulations that balance the benefits to the community from Short-term Rentals and address the negative impacts from Short-term Rentals are important to provide assurances to the community and long-term stability to Short-term Rental operators and guests; and
WHEREAS, the Planning Commission of the City of Pacifica held a duly noticed public hearing on the proposed amendments contained in Text Amendment TA-127-25 (File No. 2025- 001 ) on [MONTH DAY, YEAR], and adopted Resolution No. # by a vote of # initiating and recommending to the City Council adoption of Text Amendment TA-127-25 (File No. 2025-001); and
WHEREAS, the City Council held a duly noticed public hearing on the proposed ordinance on [MONTH DAY, YEAR] and introduced Ordinance No. # on the same date; and NOW, THEREFORE, the City Council of the City of Pacifica does ordain as follows:

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Packet Pg. 142 Attachment: Exhibit 1 - Draft Ordinance for File No. 2025-001 STR Ordinance Text Amendment (5836 : Short-term Rental Program Amendment) PC Ord draft

Section 1. Recitals. The City Council of the City of Pacifica does hereby find that the above referenced recitals are true and correct and material to the adoption of this Ordinance.

Section 2. Amendment. Article 49, “Short-Term Rentals” of Chapter 4, “Zoning” within Title 9, “Planning and Zoning” is repealed and replaced in its entirety to read as follows:
“Sec. 9-4.4900. Purpose and intent.

The purpose of this article is to establish regulations governing the Short-term Rental of residential property within the City of Pacifica in order to ensure the health, safety, and welfare of the residents of the City of Pacifica, and to allow for the short-term rental of single-family and multi-family dwelling units for less than thirty (30) consecutive days, while still preserving the residential character of neighborhoods, and preventing Shortterm Rental activities from becoming a nuisance or a threat to public health, safety or welfare.

Sec. 9-4.4901. Definitions.

For the purposes of this article, unless otherwise apparent from the context, the following words and phrases are defined as set forth below:
(a) "Administrator" means the Assistant City Manager or designee. (b) "Advertising platform" means a marketplace in whatever form or format which facilitates Short-term Rentals through advertising, matchmaking, or any other means, using any medium of facilitation, and from which the operator of the platform derives revenues, including booking fees or advertising revenues, from providing or maintaining the marketplace.
(c) “Condominium” or “Condominiums” means an estate in real property consisting of an undivided interest in common in a portion of a parcel of real property, together with a separate interest in space in a residential, industrial, or commercial building on such real property, such as an apartment house, office, or store. "Condominium" may include, in addition, a separate interest in any other portion of such real property.
(d) “Events” mean weddings, conferences, retreats, commercial events, loud or disruptive gatherings of any kind, parties or any other similar gatherings which have the potential to cause traffic, parking, noise, or other impacts to the neighborhood.
(e) “Legally Permitted Bedroom” means the number of bedrooms that are officially approved for occupancy within a dwelling unit, as reflected in the building permit records of the City of Pacifica.
(f) “Multi-family development” means a building, or portion thereof, used and designed as a residence for two (2) or more families living independently of each other and doing their own cooking in such building, including apartment houses, apartment hotels, and flats, but not including automobile courts, motels, hotels, or boardinghouses.
(g) “Noise Monitor” means a noise detecting alarm sensor device with a call-assist feature that is located on the exterior of the rental property or other noise detecting device/sensor with features that do not have a camera, record conversations, nor store any personal data. The Noise Monitor shall have the capability of detecting noise at levels established by the operator in order to comply with the regulations found in the Pacifica Municipal Code. A Noise Monitor is not a Type I or II Sound Level Meter (SLM).

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(h) "Operate" means the operation of a Short-term Rental, and includes the acts of establishing, offering, maintaining, or listing for rent a Short-term Rental with an Advertising platform.
(i) “Operator” means the Person who has applied for a Short-term Rental Permit or has been issued a Short-term Rental Permit by the City. (j) “Person” means natural person, corporation, business trust, estate, trust, partnership, limited liability company, association, or other entity. (k) “Permit” or “Short-term Rental Permit” means a permit issued by the City pursuant to this Article to allow the use of a Short-term Rental on a Site. (l) “Primary residence” means a residence where a Person resides, full-time, for more than six months out of the year.
(m) "Rental" means the occupancy or use of a dwelling unit property, in exchange for any form of rent that may be valued in money, including cash, credit, goods, labor, or property, regardless of whether such rent is actually received. (n) “Responsible party" shall mean a Person, over the age of eighteen (18), who shall be responsible for ensuring compliance with all applicable provisions of the Pacifica Municipal Code by all Short-term Renters and visitors of a Site for a Short-term Rental, twenty-four (24) hours per day, seven (7) days per week when the Operator is not available.
(o) “Single-family dwelling unit” means a building designed for, or used to house, not more than one family, including all necessary employees of such family. (p) “Site” shall mean the assessor’s parcel upon which the Short-term Rental is located.
(q) "Short-term Rental" means the use of a dwelling unit, or portion of it, for a Rental of less than thirty (30) consecutive days. A “Short-term Rental” can be either Unhosted or Hosted.
i. “Hosted Short-term Rental” means a Short-term Rental use where a resident, who is the operator and acting as a host, occupies one or more bedrooms in a dwelling unit or an accessory dwelling unit on the same Site as the Short-term Rental while other areas of the dwelling unit or main residence on the Site are rented for the purpose of transient overnight lodging.
ii. “Unhosted Short-term Rental” means a Short-term Rental use where no Operator is present on the Site during the course of the Rental. (r) “Short-term Rental Permit cap” means the maximum number of Short-term Rental permits that may be issued at any given time by the City. (s) Short-term Renter. A person who exercises occupancy or is entitled to occupancy by reason of a booking transaction, concession, permit, right of access, contract, license, or other agreement for a period of less than 30 consecutive days, counting portions of days as full days in a Short-term Renal.

Short-Term Renters also include all Persons who occupy the Short-Term Rental during the overnight hours of 10:00 p.m. to 8:00 a.m.

In the event of a conflict between the words and phrases defined in this article and the words and phrases defined Title 9 “Planning and Zoning, Chapter 4 “Zoning”, Article 2 “Definitions”, the definitions in this article shall prevail.

Sec. 9-4.4902. Permits required for Short-term Rentals – Permit Cap.

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(a) The Short-term Rental of residential dwelling units is a prohibited use in every zoning district in the City, with the exception of permitted Short-term Rentals approved pursuant to the requirements of this article.
(b) Subject to the requirements of this article, including the Short-term Rental Permit cap, Short-term Rentals are allowed as accessory uses to residential dwelling units in all zoning districts where residential dwelling units are allowed as a permitted or conditional use.
(c) Permit Cap. The Short-term Rental Permit cap shall be one hundred fifty (150) Short-term Rental Permits at any given time. The Administrator shall not approve any applications for Short-term Rental Permits once the Administrator has determined that the Short-term Rental Permit cap has been reached. (d) The Administrator shall create a waiting list where the number of Short-term Rental applicants exceeds the total number of available Short-term Rental Permits. Pursuant to Section 9-4.4904(g) of this article, Short-term Rental applications for qualifying properties on the wait list shall be processed in the order applications were received.

Sec. 9-4.4903. Standards applicable to Short-term Rental Sites.

The following standards shall apply to any Site offered as a Short-term Rental. No Shortterm Rental Permit shall be issued if the Site is not compliant with the following:
(a) In accordance with Section 9-4.453(a)(6) and 9-4.454(a)(6), no Person may operate a Short-term Rental in any accessory dwelling unit or junior accessory dwelling unit. However, the Operator of a Hosted Short-term Rental may reside in an accessory dwelling unit or junior accessory dwelling unit on the Site and Operate the Hosted Short-term Rental in the primary residence on the Site; (b) No Person shall Operate or allow a Short-term Rental in any location not approved for use as a permanent dwelling unit including, but not limited to, any vehicle, trailer, tent, storage shed or garage;
(c) Each Person Operating a Short-term Rental shall have their Primary Residence at the Site of the Short-term Rental. If the Person is a corporation, business trust, estate, trust, partnership, limited liability company, association, or other entity, the managing member of the limited liability company, officer of the corporation, or trustee of the business trust or estate or a partner must have their Primary Residency on the Site. To prove Primary Residency, the Person must provide at least three forms of documentation to the Administrator evidencing that the Site of the Short-term Rental is their Primary Residence for more than six months of the year. Documentation can include, but is not limited to, proof of homeowner's tax exemption, voter registration card or certificate, or proof of vehicle registration.
(d) An Operator shall Operate only one Short-term Rental at any given time; (e) For a single-family residential unit or a residential condominium dwelling unit, one Short-term Rental may Operate as an accessory use on the Site; and

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(f) For a Multi-family development, only Hosted Short-term Rentals may be Operated as an accessory use to an individual unit within the Multi-family development.

Sec. 9-4.4904. - Short-term Rental Permit required.

Subject to those requirements in Section 9-4.4903 and subject to the Short-term Rental Permit cap specified in Section 9-4.4902, a Short-term Rental Permit along with a ShortTerm Rental Permit number may be approved and issued by the Administrator, provided that the Administrator determines the applicant has met the following requirements:
(a) Application. Any Person seeking to operate a Short-term Rental must complete an application on a form provided by the City, accompanied the fees established by resolution of the City Council. The application form will include, at a minimum, the following information:
i. Name and contact information of the Operator. All adults for whom the property is a permanent residence shall be listed;
ii. The name and contact information of the authorized Responsible Party.

Any change in the Responsible Party’s address or telephone number shall be promptly furnished to the City within 48 hours of such change; iii. Site plan showing location, dimensions, and use of all existing buildings on the Site, and on-Site parking;
iv. Floor plan showing the use of all rooms per the California Building Code, and identifying Legally Permitted Bedrooms Rooms to be used for the Short-term Rental;
v. If the Operator is not the property owner, the property owner’s written consent to the Short-term Rental use;
vi. The Operator shall provide documentation required by section 9-4.4903(c) that the Site is the Operator’s Primary Residence;
vii. Identification of whether the Short-term Rental shall be a Hosted or Unhosted Short-term Rental or combination of both, and the estimated number of nights per year the Short-term Rental will be rented; viii. Advertising platform(s) used by the Operator to advertise the Short-term Rental;
ix. Proof that the Operator has installed a Noise Monitor on the exterior of the Short-term Rental in a location to ensure that accurate noise levels can be taken by the Noise Monitor;
x. Any other information the Administrator deems reasonably necessary to administer this article; and

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Packet Pg. 146 Attachment: Exhibit 1 - Draft Ordinance for File No. 2025-001 STR Ordinance Text Amendment (5836 : Short-term Rental Program Amendment) PC Ord draft

xi. The permit application and any associated business licenses shall include an affidavit signed by the owner under penalty of perjury stating that all the information in the application is correct and that the owner maintains full responsibility that the Short-term Rental shall be advertised, rented, operated, and maintained in compliance with this article and all other relevant municipal codes. Failure to sign the affidavit shall be grounds for denial of a Short-term Rental Permit.
(b) The permit application shall be accompanied by an application fee in an amount established by City Council resolution. Applications for a Short-term Rental Permit shall not be deemed complete until all information required by this article is provided and the Short-term Rental application fee, as set by City Council resolution, is paid to the City.
(c) The permit application shall be accompanied by a signed safety declaration in a form prepared by the Administrator, to be kept in the property file at the City, selfcertifying that the Short -term Rental is in a safe and habitable condition and contains working smoke detector(s), carbon monoxide detector(s), and fire extinguishers have been installed and maintained consistent with the requirements of and in compliance with the California Fire Code, as adopted by the City in Title 4, Chapter 3, Article 1 of this Code and the California Building Code, International Property Maintenance Code and Residential Code, as adopted by the City in Title 8 of this Code.
(d) Inspection of Unhosted Short-term Rentals. For Unhosted Short-term Rentals, the City shall conduct a health and safety inspection of the proposed Short-term Rental unit prior to issuing a Short-term Rental Permit. A health and safety inspection shall include verification of the number of Legally Permitted Bedrooms, the presence and operation of working smoke detector(s), carbon monoxide detector(s), and fire extinguishers. The City shall also verify that no space has been converted into a bedroom or living space without permits required by the California Building Code, International Property Maintenance Code and Residential Code, as adopted by the City in Title 8, or any other provision of this Code.
(e) Consent to Inspection and Production of Records. For all Short-term Rentals, the permit application shall be accompanied by a consent to inspection in a form prepared by the Administrator, which shall be signed by the Operator and if the Operator is not the owner of the Site, the owner of the Site consenting to (i) physical inspection(s) by city staff, contractors, or representatives for the purpose of verifying compliance with this article during regular business hours (7:30 a.m. to 5:30 p.m.) upon forty-eight (48) hours’ notice and (ii) that if said inspection is deemed necessary by the Administrator because of complaints received by the City of non-compliance, the Operator will produce records demonstrating compliance with all provisions of this article within seven (7) calendar days of the request.

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(e) Compliance with the Municipal Code. No Short-term Rental Permit shall be issued if there are any unresolved or outstanding building, electrical, plumbing, fire, health, housing, police, or planning violations or enforcement actions issued by the City or other enforcement agency, including but not limited to, any administrative citations, notices of violation, notices to cure, orders of abatement, cease and desist orders, or correction notices related to the Site. (f) Compliance with Operation Requirements. No Short-term Rental Permit shall be issued if the Site has had two or more violations of this article within twelve months prior to application submittal. No Short-term Rental Permit shall be issued if the Operator has had a Short-term Rental Permit revoked within twelve months of the application date by the City of Pacifica.
(g) Waitlist. The Administrator will maintain a waiting list when the number of Shortterm Rental applicants exceeds the Short-term Rental Permit cap identified in Section 9-4.4902. The Administrator will continually maintain the Short-term Rental Permit cap inventory as Permits are not renewed or revoked. Persons wishing to be placed on the waitlist shall submit a waitlist application on a form provided by the City accompanied by the completed Short-term Rental Permit application required by Section 9-4.904(a). A nonrefundable waitlist application fee in an amount established by resolution of the City Council shall be remitted with the application. Short-term Rental applications for qualifying properties on the waitlist will be processed bi-annually between October 31 and November 30 of each year and between April 30 and May 31 of each year based on the date of receipt of the application, starting with the oldest date. The Administrator, in their discretion, may require an Applicant placed on the waitlist to provide updated information at the time a Short-Term Rental Permit becomes available, in accordance with requirements in place at the time the application is being considered. (h) Appeals of Determination of Administrator. Any decision of an Administrator relating to an application or the waitlist may be appealed within ten (10) days of the decision of the Administrator to an administrative hearing officer, pursuant to the process specified in section 9-4.4908(d).

Sec. 9-4.4905. Operation Requirements.

A Short-term Rental must comply with the following operation requirements at all times that the Short-term Rental Permit is issued:
(a) Permit required. The Short-term Rental must be operated under a valid Shortterm Rental Permit issued by the City in accordance with Section 9-4.4904; (b) The Operator shall, during the term of the Short-term Rental Permit, promptly inform the Administrator regarding any changes to the information provided in the application, including contact information and Advertising platform(s) used by the Operator to advertise the Short-term Rental;

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Packet Pg. 148 Attachment: Exhibit 1 - Draft Ordinance for File No. 2025-001 STR Ordinance Text Amendment (5836 : Short-term Rental Program Amendment) PC Ord draft

(c) The Operator shall, at all times while the Site is being used as a Short-term Rental, maintain a Responsible Party that can be reached via telephone twentyfour (24) hours a day, seven (7) days a week, to respond to complaints regarding the use of the Short-term Rental. The Responsible Party shall respond, either in person, or by return telephone call, within thirty (30) minutes of a complaint. The Operator can be identified as the Responsible Party if they can satisfy these requirements;
(d) The Operator must provide the following materials electronically to any Shortterm Renters before arrival and make available printed materials on-site for the guest with the following information:
i. A diagram of exits, fire extinguisher locations, and fire and police contact numbers;
ii. The Short-term Rental Operator’s contact information; iii The Responsible Party’s contact information;
iv. Information on the maximum allowed number of occupants, parking capacity and location of parking spaces, noise regulations, disclosure that the property is equipped with a noise monitoring device, quiet hours, and trash and recycling disposal requirements;
iii. The City's noise regulations (Chapter 10 of Title 5 of this Code); and iv. The City's Social Host Liability Ordinance (Chapter 28 of Title 5 of this Code);
(e) The Operator shall include the City-issued Short-term Rental Permit number in any Advertising platform or any other advertisement appearing in any newspaper, magazine, brochure, television trade paper, internet website, etc., that promotes the availability or existence of a Short-term Rental on the Site. The Short-term Rental Permit number must also be prominently and legibly included in the first line of the property description text in any advertisement in the following format: “City of Pacifica Short-term Rental Permit No. #### ”; (f) Each Short-term Rental Site shall be identified with a single exterior sign, not more than six (6) square feet in total area, posted either at the front of the Site, for single family dwellings, or on the door if it is a Multi-family dwelling unit or condominium, indicating the Site is being utilized as a Short-term Rental. The sign shall include the Short-term Rental Permit number and a Quick Response (QR) code with both the Operator’s name and contact information and the Responsible Party’s name and contact information, if different. At a minimum, the sign shall be posted while the Site is being utilized as a Short-term Rental; (g) A Short-term Rental shall not create pedestrian, automobile, or truck traffic detrimental to property in the vicinity or neighborhood parking impacts. The property address shall be clearly marked;
(h) A Short-term Rental shall comply with all provisions of the Pacifica Municipal Code, including, but not limited to the City’s noise regulations (Chapter 10 of Title 5 of this Code) and the Loud and Unruly Gatherings and Social Host Liability Ordinance (Chapter 28 of Title 5 of this Code) and the Building Regulations (Chapters 1-17 of Title 8 of this Code);

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(i) A Short-term Rental shall comply with all applicable state and local laws and orders, including any public health order;
(j) Each Person Operating a Short-term Rental shall comply with the transient occupancy tax requirements set forth in Chapter 7 of Title 3 (Transient Occupancy Tax) of this Code, and shall obtain a Transient Occupancy Registration Certificate pursuant to the Section 3.7-06 for the entire period of time the Site is used as a Short-term Rental;
(k) Each Person Operating a Short-term Rental shall obtain a business license and pay the business license tax required pursuant to Chapter 1 of Title 3 (Business Licenses) of this Code for the entire period of time the Site is used as a Shortterm Rental; (l) Maximum overnight occupancy for all Short-term Rentals shall not exceed two (2) Short-term Renters per Legally Permitted Bedroom. Children under the age of twelve (12) shall not count towards these occupancy limits; (m) In addition to the maximum number of Short-term Renters allowed, the number of guests and visitors allowed at any time in a Short-term Rental shall not exceed one half of the maximum Short-term Renters allowed;
(n) Use of all outdoor pools, spas and hot tubs shall be prohibited between the hours of 10:00 p.m. and 7:00 a.m.;
(o) In addition to the noise standards identified in Chapter 10 of Title 5 and Chapter 28 of Title 5 of this Code, no radio receiver, 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 s Short-term Rental. Any machine, device or equipment that amplifies music inside any Short-term Rental shall not be heard beyond the property line of the Short-term Rental at all times; (p) Each Operator shall install and maintain in continuous operation a Noise Monitor on the exterior of the Short-term Rental to ensure compliance with the City’s noise regulations (Chapter 10 of Title 5 of this Code). The Operator shall retain a record of the Noise Monitor readings for a period of thirty (30) days after each Rental of the Short-term Rental;
(q) The Short-term Rental must provide at least one off-street parking space per Legally Permitted Bedroom that is being utilized as a Short-term Rental, which shall be dedicated and available to Short-term Renters during the period of the Rental;
(r) Short-term Rentals shall not be concurrently used for any commercial Event (such as a corporate retreat or conference), and shall not be used for any noncommercial Event that is likely to result in a violation of traffic, parking, noise, or other standards regulating the residential use and character of the neighborhood.

Home occupations conducted by the primary resident compliant with the City’s home occupation ordinance are allowed; provided that parking and all other requirements for both the Short-term Rental and the home occupation are met;

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(s) Short-term Rental use shall comply with trash and recycling requirements and scheduled solid waste pick-up days at least once per week. Trash and recycling containers shall be located to be readily accessible for servicing, but shall not be placed within the limits of any street, road, avenue, way, alley, public place, or any other places as to constitute a nuisance; and
(t) Unhosted Short-Term Rentals. The following additional operation requirements shall apply only to Unhosted Short-term Rentals:
i. An Unhosted Short-term Rental shall be Operated no more than ninety (90) nights per calendar year, commencing on January 1st of each year. ii. Minimum Stay. Unhosted Short-term Rentals shall have a minimum two consecutive night stay for Short-term Renters.
iii. Unhosted Short-term Rentals are prohibited in Multi-family development units.

Sec. 9-4.4906. Record Keeping.

The Operator shall retain records documenting the compliance with this article for a period of three years after any Short-term Rental, including, but not limited to, records indicating the history of all Short-term Rental reservations on the subject property from the Advertising platform or otherwise, records indicating the payment of any and all transient occupancy taxes, length of stay per reservation, and number of Persons per reservation. The Operator shall provide any such documentation to the City within thirty (30) days of the City’s request. Notwithstanding the foregoing, readings from the Noise Monitor shall be retained for a period of thirty (30) days after the Rental of the Short-term Rental.

Sec. 9-4.4907. Permit term and renewal.
(a) Term. A Short-term Rental Permit is valid for one year from the date of issuance until October 31st of each year, unless suspended or revoked by the Administrator prior to October 31st.
(b) Renewal. The Short-term Rental Permittee may renew the permit annually by submitting a renewal application, in a form prepared by the Administrator, and applicable fee between October 1st and October 31st of each year, regardless of when the Short-term Rental permit was issued. If a renewal application and fee are not filed prior to the October 31st deadline, the Short-term Rental Permit shall expire automatically. Under such conditions, the Operator shall be required to apply for and obtain a new Short-term Rental Permit, subject to the requirements in effect at the time an application is submitted.
i. Renewal applications shall be reviewed for compliance with this article. If a Short-term Rental Operator is not in compliance with this article, the Short-term Rental shall not be renewed.
ii. Proof of Rental Nights. For any renewal, the Operator shall provide documentation of the number of nights the unit was rented during the

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prior year, including whether the unit was used as a Hosted Short-term Rental or an Unhosted Short-term Rental.

Sec. 9-4.4908. Permit Suspension and Revocation
(a) Permit suspension. The Administrator may suspend a Short-term Rental Permit, at the Administrator’s sole discretion, after making a determination that the Operator has violated any provisions of this article if the Administrator determines that the nature of the violation may be corrected within a reasonable period of time.
(b) Permit revocation. The Administrator may revoke a Short-term Rental Permit, at the Administrator’s sole discretion, after making a determination that the Operator has violated any of the provisions of this article or is operating the Short-term Rental in a manner that is detrimental to the public health, welfare or safety or constitutes a nuisance. A Short-term Rental Permit may also be revoked for the following reasons:
i. That the Short-term Rental Permit was obtained by misrepresentation, false statement, or fraud;
ii. That the Short-term Rental activity is being conducted in violation of local or state or federal law;
iii. That two violations of this article have occurred on the Site within the preceding twelve months;
iv. That the Short-term Rental is being operated in a manner that is detrimental to the public health, welfare or safety;
v. That consent to an inspection has not been provided; or vi. That records documenting the compliance with this article, including, but not limited to, records indicating the history of all Short-term Rental reservations on the Site from the Advertising Platform or otherwise, records indicating the payment of any and all transient occupancy taxes, length of stay per reservation, number of Persons per reservation and were not provided to the City within thirty (30) days of the City’s request. (c) The Administrator shall provide the Short-term Rental Operator with written notice stating the supporting factual basis for the decision. The notice shall contain an advisement of the right to request an appeal before a hearing officer by filing a written appeal.
(d) Appeal to Hearing Officer. Suspension or revocation issued by the Administrator pursuant to paragraph (a) or (b) will be effective ten (10) days from the date appearing on the notice, unless a timely appeal is filed before such date along with the deposit of an appeal fee established by resolution of City Council. A hearing shall be scheduled before the hearing officer within thirty (30) days. The decision of the hearing officer shall be a final administrative order, with no further administrative right of appeal or reconsideration. The hearing officer may sustain

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a denial, suspension, or revocation, overrule a denial, suspension, or revocation, reduce a revocation to a suspension and/or reduce the length of a suspension. (e) Reapplication. No application for a Short-term Rental Permit will be accepted within one year after a Short-term Rental Permit is revoked.

Sec. 9-4.4909. Violations and enforcement.
(a) The City may issue a notice of violation or administrative citation for any violation of this article, to any occupant, invitee, renter, lessee, owner of the property, Operator, Responsible Party, managing agency or agent, and/or Advertising platform for a violation of any provision of this article or other provisions of the Code pursuant to Title 1 of this Code.
(b) Each and every day, or portion thereof, that a violation of this article and/or Code exists constitutes a separate and distinct violation for which a notice of violation or administrative citation may be issued. Such notice of violation or administrative citation shall be issued, notice given, and any appeals heard in the manner and by the process described in Title 1 of this Code.
(c) A violation of any provision of this article, or failing to comply with any mandatory requirement hereof, shall constitute a misdemeanor. The fine amount for each violation shall be one thousand dollars ($1,000.00). Notwithstanding the preceding sentence or any other section of this article, a violation of this article may, in the discretion of the enforcement officer be charged and prosecuted as an infraction. In addition, the City may enforce this article by any means permitted by law, including, but not limited to, those penalty provisions set forth in Title 1 of this Code.
(d ) Pursuant to Government Code Section 36900(d), for infractions that pose a threat to public health or safety, the fine shall be, at a minimum, one thousand five hundred dollars ($1,500.00) for an initial violation of this chapter, three thousand dollars ($3,000.00) for a second violation of the same provision within one (1) year, and five thousand dollars ($5,000.00) for each subsequent violation of the same provision within one (1) year. Operation of a Short-term Rental without a permit or violations of the any of the provisions of this article shall be deemed to pose a threat to public health or safety.
i. For fines imposed under this subsection, the Administrator may grant a hardship waiver to reduce the amount of the fine upon a showing by the Short-term Rental permittee that the Short-term Rental permittee has made a bona fide effort to comply after the first violation and that payment of the full amount of the fine would impose an undue financial burden on the responsible party. No such waiver shall be granted for subsequent violations.
ii The fines set forth in this subsection shall not apply to a first-time offense of failure to register or pay a business license fee.

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(e) Revocation. In addition to the fines and penalties imposed by this section, upon a second violation of this article within a twelve (12) consecutive month period, the Administrator shall revoke the Short-term Rental Permit. (f) Cost Recovery. The City’s costs to enforce this section are the responsibility of the Operator. The costs may be recovered pursuant to Chapter 2 of Title 1 of this Code, Government Code Section 38773 et seq. and any other legal method. (g) Administrative Subpoenas. The city manager, or designee, shall have the authority to request the city attorney to subpoena witnesses to compel their attendance and testimony at hearings and to require the production of books, papers, records or other relevant items regarding Short-term Rental listings located in the City, including, but not limited to, the names of the Persons responsible for each such listing, the address of each such listing, the length of stay for each such listing, and the price paid for each stay, to determine whether the Short-term Rental listings comply with this article. Any subpoena issued pursuant to this Section shall not require the production of information sooner than thirty (30) days from the date of service. A Person, Advertising platform, or Short-term Rental operator that has been served with an administrative subpoena may seek judicial review during that thirty (30) day period.

Sec. 9-4.4910. Administrative Regulations. The Administrator is authorized to promulgate any policies or procedures necessary to implement and enforce this article, including, but not limited to administering the waitlist set forth in Section 9-4.4904(g) and a process for accepting and prioritizing applications received after the Short-term Rental permit cap set forth in Section 9-4.4902 is reached.

Sec. 9-4.4911 Application of Ordinance to Issued Short-term Rental Permits. (a) Areas outside the Coastal Zone. Upon the Effective Date of this Ordinance, the following provisions of this Ordinance shall be immediately applicable to all Short-term Rentals in areas outside the Coastal Zone: Sections 9-4.4900, 9-4.4901, 9-4.4902, 9-4.4903(a) and (b), 9-4.4904, 9-4.4905(a) through (k), 9-4.4906, 9-4.4907, 9-4.4908, 9-4.4909 and 9-4.4910. All other provisions of this Ordinance (Sections 9-4.4903(c) through (f) and 9-4.4905(l) through (t)) shall not apply to Short-term Rentals that have been issued a Short-term Rental Permit prior to the Effective Date of this Ordinance until that Short-term Rental Permit is renewed, terminated, or revoked.
(b) Areas within the Coastal Zone: Upon certification by the California Coastal Commission of an amendment to the City’s local coastal program relating to the adoption of this Ordinance, the following provisions of this Ordinance shall be immediately applicable to all Shortterm Rentals in areas within the Coastal Zone: Sections 9-4.4900, 9-4.4901, 9-4.4902, 9-

4.4903(a) and (b), 9-4.4904, 9-4.4905(a) through (k), 9-4.4906, 9-4.4907, 9-4.4908, 9-4.4909, and 9-4.4910. All other provisions of this Ordinance (Sections 9-4.4903(c) through (f), 9-4.4905(l) through (t)) shall not apply to Short-term Rentals that have been issued a Short-term Rental Permit prior to the date of Coastal Commission Certification until the Short-term Rental Permit is renewed, terminated or revoked; or two years from the date of adoption of the Ordinance, whichever is earlier.

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Section 3. Amendment. Article 29 of Chapter 4 of Title 9 is amended by adding subsection (t) to Section 9-4.2904. Exempted signs which shall be read as follows:
“Sec. 9-4.2904. - Exempted signs.
…
(t) Short-Term Rental signs required pursuant to, and in compliance with, Section Sec. 9-4.4905 Operation Requirements” Are exempt from the permit requirements and provisions of this Article.”
All other subsections within Section 9-4.2904 shall remain unchanged.

Section 4. Compliance with CEQA. The City Council hereby finds that the action to adopt this Ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA), pursuant to the CEQA Guidelines (14 Cal. Code Regs. 15000 et seq.), including without limitation under Section 15061(b)(3) of the CEQA Guidelines because it can be seen with certainty that there is no possibility the adoption of this Ordinance may have a significant effect on the environment. The City Clerk shall file a Notice of Exemption with the San Mateo County Clerk.

Section 5. Severability. If any section, subsection, sentence, clause, or phase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentence, clauses or phrases be declared unconstitutional.

Section 6. Publication. The City Clerk is hereby ordered and directed to certify to the passage of this Ordinance by the City Council of the City of Pacifica, California, and cause the same to be published in accordance with State law.

Section 7. Effective Date. This Ordinance shall be in full force and effective thirty (30) days after its adoption and shall be published and posted as required by law. For areas within the Coastal Zone, this Ordinance shall not become effective until the California Coastal Commission certifies an amendment to the City’s local coastal program pursuant to Section 30514 of the Public Resources Code.

Section 8. PASSED AND ADOPTED this day of , 2025 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
____________________________
Sue Beckmeyer, Mayor
ATTEST: APPROVED AS TO FORM:

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____________________________ ____________________________ Sarah Coffey, City Clerk Michelle Kenyon, City Attorney

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