CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
7/14/2025
1 SUBJECT:
Public Hearing on a proposed ordinance repealing and replacing Article 49 of Title 9, Chapter 4 of the City of the Pacifica Municipal Code (“Short-Term Rentals”); making certain amendments to Article 29 of Title 9, Chapter 4, Section 9-4.2904 (“Exempted Signs”) of the Pacifica Municipal Code (File 2025-001, Text Amendment TA-127-25); and finding the adoption of the Ordinance exempt from the California Environmental Quality Act (CEQA).
RECOMMENDED ACTION:
Conduct a public hearing and introduce an Ordinance of the City Council of the City of Pacifica repealing and replacing Article 49 of Title 9, Chapter 4 of the City of the Pacifica Municipal Code (“Short-Term Rentals”); amending Article 29 of Title 9, Chapter 4, Section 9-4.2904 (“Exempted Signs”) of the Pacifica Municipal Code; and finding adoption of the Ordinance exempt from the California Environmental Quality Act (CEQA).
STAFF CONTACT:
Samantha Updegrave - Community Development Director
(650) 738-7341
[email protected]
BACKGROUND/DISCUSSION:
The term Short-Term Rental (STR) refers to the use of all or a portion of a residential dwelling unit for rental of less than 30 consecutive days. The popularity of STRs has increased steadily over the past decade due in part to the convenience of booking provided by companies such as Airbnb and VRBO and the increased availability of STRs as an alternative to a traditional hotel or motel. STRs can also provide a source of income for owners and occupants of the residential dwelling units offered for rent as STRs.
The proposed text amendments 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 City Council during the 2024 study sessions and the public hearings on February 24, 2025, and April 14, 2025. Recommendations from the Planning Commission made on January 21, 2025, and June 2, 2025, are also incorporated. The revised Draft Ordinance is provided in Attachment A, Exhibit 1.
For a detailed discussion of the background of the proposed STR Ordinance, including direction and recommendations made by the Council and Planning Commission in 2025, please see the following staff reports:
• Planning Commission meeting agenda, January 21, 2025:
<https://pacificacityca.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1697> • City Council agenda, February 24, 2025:
<https://pacificacityca.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1674> 10 Packet Pg. 623
Pacifica City Council 2
July 14, 2025
• City Council agenda, April 14, 2025:
<https://pacificacityca.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1677> • Planning Commission agenda, June 16, 2025:
<https://pacificacityca.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1713> City Council and Planning Commission Review and Consideration On February 24, 2025, the City Council held a public hearing introducing the Draft Ordinance amendments, which reflected the key goals and priorities identified by the City Council during the prior study sessions and the recommendations made by the Planning Commission at a public hearing on January 21, 2025. During the Council’s deliberations on the proposed ordinance at that February 24th meeting, additional changes to previous policy decisions were identified, as well as areas where the proposed amendments did not meet their policy objectives. The Council provided direction to the City Manager for additional changes to the Draft Ordinance and adjourned the meeting to a future date to be determined to continue deliberations. The continued public hearing was held on April 14, 2025, and the City Council provided additional direction on changes.
Because some of the changes were substantive, the Draft Ordinance went back to the Planning Commission for consideration. On June 16, 2025, the Planning Commission considered the Draft Ordinance and passed a resolution recommending approval with some additional recommendations.
Proposed Changes
Both the Council-directed changes and the Planning Commission recommendations have been incorporated into the Draft Ordinance. In addition to the specific directed changes, staff has also made certain conforming and typographical edits, where necessary. The revisions are summarized in the table below.
# Draft Ordinance - Pacifica Municipal
Code Section
Council Directed Change, February - May 2025 PC
Recommended Change, January 21, 2025 and June
16, 2025 and conforming edits
Definitions, PMC Sec. 9-4.4901
1 Sec. 9-4.4901(g) “Natural person” Add a definition for “natural person.” 2 Sec. 9-4.4901(m) “Primary Residence” Add Junior Accessory Dwelling Unit to be explicitly excluded from definition of a “primary residence.”
3 Sec. 9-4.4901(j) “Operator” and
conforming changes in Sec. 9-4.4903(c)
Add “Natural” before “Person” in definition.
4 Sec. 9-4.4901(s)(i) “Hosted Short-Term
Rental” and conforming changes in
Sec.9-4.4901(m)
Remove Accessory Dwelling Unit from the definition of
“hosted STR.”
5 Sec. 4901(n) “Quiet hours” and
conforming changes in Sec. 9-4.4905(o)
Add a definition of quiet hours between 10:00 p.m. to
7:00 a.m..
6 Sec. 9-4901(u) “Short-term Renter” and
Sec. 9-4.4901(v) “Short-term Rental
Visitor”
Add “Guest” to definition of “Short-term Renter” and a
new definition for “Short-term Rental Visitor” to clarify occupancy allowances.
Standards applicable to Short-Term Rentals, PMC Sec. 9-4.4903 7 Sec. 9-4.4903(a) Standards Remove allowance for operators of hosted STRs to reside in an ADU/JADU and operate an STR in the
primary dwelling.
8 Sec. 9-4903(c) Primary residence Add that a State or Federally issued identification 10 Packet Pg. 624
Pacifica City Council 3
July 14, 2025
requirements must be one of the three documents for proof of residency. Make conforming changes for changes to
section 9-4.4901(j) to remove language regarding
corporations, trusts, etc.;
Short-Term Rental Permit required 9-4.4904
9 Sec. 9-4.4904(a)(xi) Application Add proof of insurance, such as an insurance certificate.
10 Sec. 9-4.4904(d) Inspections Require inspections for both hosted and unhosted STRs. Add life-safety issues, pools/spas, and lighted
ingress and egress to be considered during
inspections Require a separate fee for STR
inspections.
11 9-4.4904(j) Advertising Platform
Responsibilities (see also Sec. 9-4.4911)
Add a new section for advertising platform
responsibility modeled from Santa Monica provisions
which requires advertising platforms to review registry maintained by City to confirm Short-term Rental has
been issued permit.
Operation Requirements. PMC Sec. 9-4.4905
12 Sec. 9-4.4905(c) Responsible Party Additional language to clarify requirements for the Responsible Party, including response time.
13 Sec. 9-4.4905(d) Required Information
Provided
Add composting to the list of required information.
14 Sec. 9-4.4905(d) Required Information
Provided
Add date and time of solid waste pickup to the list of
required information.
15 Sec. 9-4.4905(l) and conforming
numbering changes
Add requirement for hosted STRs to have the
Operator on-site between the hours of 11:00 p.m. to
6:00 a.m..
16 Sec. 9-4.4905(m) Occupancy Change STR occupancy to exclude children under the age six.
17 Sec. 9-4.4905(n) Add limits for visitor hours to 8 a.m. to 10 p.m., per Council’s original direction during 2024 study session. 18 Sec. 9-4.4905(o) Quiet Hours and
conforming numbering changes
Add quiet hours from 10 p.m. to 7 a.m..
19 Sec. 9-4.4905(s) Parking PC recommended different parking standards for STRs based on whether they were within or outside of
the Coastal Zone; Council direction was to keep
parking the same per original policy decision.
20 Sec. 9-4.4905(v) Unhosted Short-Term
Rentals
Decrease the number of nights unhosted STRs can be
rented from 90 to 60.
Violations and enforcement. - PMC Sec 9-4.4909
21 Sec. 9-4.4909(h) Add a new section which allows an Aggrieved Resident of the City to invoke violations of ordinance
as a basis for a private action for injunctive relief to prevent or remedy public nuisance violations.
Advertising Platform Responsibilities - Sec. 9-4.4911
22 9-4.4911 Advertising Platform
Responsibilities
Add a new section for advertising platform
responsibility modeled from Santa Monica provisions
which requires advertising platforms to review registry maintained by City to confirm Short-term Rental has
been issued permit.
10 Packet Pg. 625
Pacifica City Council 4
July 14, 2025
Application of Ordinance -Sec. 9-4.4912
23 Section 9-4.4912(b) Clarified application of the Ordinance in Coastal Zone to confirm that the Ordinance must be certified by the
Coastal Commission.
Other Changes
Although not included in the text amendments, City Council also gave direction to the City Manager on the following administration issues, and are provided here for reference:
• Application - include fines possible under the social host / unruly code; • Application - add indemnity provision to application similar to what is included for other applications; and
• Maintain a list of all active STRs on a website.
DISCUSSION / ANALYSIS
General Plan 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 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 hosted STRs only. It also clarifies that Junior ADUs cannot be used as STRs. These changes help to ensure the continued availability of an important source of affordable housing and also provide 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 Report, 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 10 Packet Pg. 626
Pacifica City Council 5
July 14, 2025
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.
By continuing to limit the total number of STRs in the City to 150, 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.
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 Report, 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.
10 Packet Pg. 627
Pacifica City Council 6
July 14, 2025
The proposed text amendments would be consistent with Local Coastal Land Use Plan (certified by the Coastal Commission on May 8, 2025) Implementing Policy LD-I-6, Lower Cost Visitor and Recreational Facilities, which states:
Protect, encourage, and where feasible, provide lower-cost visitor and recreational facilities in the Coastal Zone. These include major, free recreational attractions such as Pacifica Pier and Pacifica State Beach; the public golf course at Sharp Park; the San Francisco RV Park; California Coastal Trail and other trails, lower cost overnight accommodations; and numerous beaches accessible at no cost.
The proposed amendments would maintain allowances for STRs within the Coastal Zone to continue to provide important visitor serving accommodations which increase public access to the coast, while providing additional regulatory and permitting requirements to address operational impacts on residential uses.
CALIFORNIA ENVIRONMENTAL QUALITY ACT
Staff recommends that the City Council find the proposed zoning text amendment in the Draft Ordinance to be exempt from the California Environmental Quality Act (CEQA).
The text amendment is exempt from CEQA pursuant to the “General Rule” exemption in CEQA Guidelines Section 15061(b)(3), which provides that a project is exempt from CEQA if “the activity is covered by the common sense 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 revisions to the ordinance make changes to the existing permitting requirements for short-term rentals within the City that are designed to address community concerns and ensure responsible short-term rental operations.
These amendments are administrative in nature and do not involve any physical changes to the environment nor do they involve the construction of new facilities or infrastructure. The amendments would also not permit any development or construction of single family residences, hotels or motels. The ordinance would continue to allow a maximum of 150 Short-term rentals to operate in the City with a permit, the same number as the existing ordinance. The proposed ordinance does not increase or decrease the number of visitors to the City. Given the foregoing, it can be seen with certainty that the text amendments would not have a significant effect on the environment.
The proposed zoning text amendment in the Draft Ordinance is also exempt pursuant to CEQA Guidelines Section 15301 (“Existing Facilities”). The Class 1 exemption applies to, among other things, the permitting, leasing, and licensing of existing public or private structures and facilities so long as the activity in question involves negligible or no expansion of an existing or former use. The Draft Ordinance makes amendments to the City’s current short-term rental permitting program for existing residential dwelling units that are operating as a short-term rental and as such clearly entails an activity addressing the permitting regarding leases/licenses of existing residential dwelling units in the City. Most importantly, the Draft Ordinance involves negligible or no expansion of existing or former uses of residential dwelling units because even as a shortterm rental, the use of the dwelling unit would still be primarily residential and the ordinance does not expand the types of homes that can be used as a short-term rental. Also, the ordinance does not affect the density of short-term rentals in a particular area. This ancillary use would be similar to the example in CEQA Guidelines section 15301(p) (single family residence used as a small family day care center). The text amendment would make changes to the 10 Packet Pg. 628
Pacifica City Council 7
July 14, 2025
permitting requirements for short-term rentals operating within the City and subject to the Shortterm Rental Permit requirement.
The exceptions to the categorical exemptions in CEQA Guidelines section 15300.2(a)-(f) do not apply to the draft Ordinance.
(a) Location. This exception does not apply to Class 1 categorical exemptions. (b) Cumulative Impact. There is no evidence of successive projects of the same type in the same place, over time.
(c) Significant Effect. There is no evidence of a reasonable possibility that the activity will have a significant effect on the environment due to unusual circumstances. First, as discussed above, there is no evidence that the adoption of the ordinance would have a significant effect on the environment. The revisions to the ordinance make changes to the permitting requirements for short-term rentals within the City that are designed to ensure responsible short-term rental operations. Second, The adoption or amendment of an ordinance regulating short-term rentals city-wide is not an unusual circumstance. Many cities and counties have adopted ordinances similar to the draft Ordinance to regulate short-term rental operations within the geographic boundaries of the agency. For example, Sonoma and Marin County amended the existing shortterm rental ordinances in 2023 and 2024 respectively. The City of Burlingame adopted a shortterm rental ordinance in 2020. The Cities of Half Moon Bay, Redwood City, San Mateo adopted an ordinance regulating short-term rental operations in 2021. The City of South San Francisco adopted its short-term rental ordinance in 2022 and recently amended it in 2024. Given the numerous examples of cities and counties adopting or amending ordinances for short-term rentals that operate within those jurisdictions, it is clear that the adoption or amendment of an ordinance is not an unusual circumstance.
(d) Scenic Highways. The draft Ordinance does not affect any scenic resources, including but not limited to, trees, historic buildings, rock outcroppings, or similar resources, within a highway officially designated as a state scenic highway.
(e) Hazardous Waste Sites. The draft Ordinance does not affect a site which is included on any list compiled pursuant to Section 65962.5 of the Government Code. (f) Historical Resources. The draft Ordinance does not cause a substantial adverse change in the significance of a historical resource.
FISCAL IMPACT:
The proposed amendments in the Draft Ordinance are anticipated to have significant fiscal implications for the City of Pacifica due to reduced Transient Occupancy Tax (TOT) collections and increased administrative costs. Estimating the precise fiscal impact is challenging and depends on various factors discussed below. However, the implementation of these ordinance amendments will require close monitoring of fiscal impacts over the coming years and prudent financial planning to attempt to mitigate effects on the General Fund. The further reduction of unhosted STR operations from the originally proposed 90 nights to 60 nights would likely further reduce TOT revenues.
For a detailed discussion of the fiscal impacts, please see the City Council agenda, February 24, 2025: <https://pacificacityca.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1674>. 10 Packet Pg. 629
Pacifica City Council 8
July 14, 2025
Administrative Cost Implications
The implementation and enforcement of the proposed Draft 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 time and resources. Specific provisions, including noise monitoring and regular inspections, will further escalate code enforcement costs and operational burdens.
While the City may recover its reasonable administrative costs through permit and inspection fees, it may not be feasible to fully recover those costs under the highly restrictive terms of the ordinance. For example, under the 60-day unhosted rental cap, a typical STR operator earning $200 per night would generate only $12,000 annually in gross revenue. With a current permit fee of $1,700, this represents approximately 14% of gross income before accounting for inspection or other compliance fees and the cost to permit holders to operate (furnishing, repairs, improvements, etc.). Fees must be reasonably related to the cost of providing the associated services, however significantly increasing fees to achieve full cost recovery could make STR participation financially impractical, which in turn could undermine program compliance and reduce City revenues further. The City’s workplan 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, requiring a future City Council decision regarding the extent to which costs can be recovered through permit fees imposed on STR operators and what subsidy will be required.
ALTERNATIVE ACTION:
The Council may decline to adopt the Draft Ordinance or direct modifications to the provisions included in the Draft Ordinance.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
The Public Hearing introducing the Draft Ordinance is consistent with the following item in the Council adopted Strategic Plan and Priority Work Plan for FY2025-26:
• Goal 3: Prioritize protection and development of affordable housing. o Strategy B: Update and Implement the Short-Term Rental Ordinance.
ORIGINATED BY:
Community Development Department
ATTACHMENT LIST:
Attachment A: 2025-06-16_2025_PC Final Resolution PC_Short-Term Rentals (unsigned) (PDF)
Attachment B: Planning Commission Staff Report + Attachments dated June 16, 2025 (PDF) 10 Packet Pg. 630