PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #11.B
SUBJECT/TITLE:
EXTENSION OF INTERIM URGENCY ORDINANCE IMPOSING A CITYWIDE
MORATORIUM PROHIBITING THE ISSUANCE OF SHORT-TERM RENTAL LICENSES PURSUANT TO GOVERNMENT CODE SECTION 65858
RECOMMENDATION:
1. Conduct a Public Hearing to receive input on the extended urgency ordinance;
2. Adopt an Extended Interim Urgency Ordinance imposing a moratorium on the issuance of short-term rental licenses pursuant to Government Code Section 65858.
BACKGROUND:
On June 21, 2022, the City Council adopted an urgency ordinance (O-2022-005) imposing a moratorium on the issuance of short-term rental licenses pursuant to Government Code Section 65858. At that meeting, the City Council directed staff to research additional short-term rental regulations, including additional time penalties for operating without permits, time limits for the placement of trash containers for collection, methods of determining primary residency, and potential limits to the number of short- term rentals in the community. In addition, staff is researching potential impacts of professionally managed co-ownership rental units and methods of addressing potential concerns. The urgency ordinance is valid for 45 days, in accordance with state law, and is set to expire on August 5, 2022.
Under Government Code Section 65858, the 45-day urgency ordinance may be extended twice, once for a period of 10 months, 15 days, and once again for an additional year.
Because staff is still researching potential regulations to address the Council’s concerns related to short-term rentals, staff recommends an extension of the existing urgency ordinance for 10 months, 15 days as provided by Government Code. This extension of the temporary moratorium will allow the City time to identify appropriate regulations to minimize impacts of short-term rentals on residential neighborhoods. This should permit adequate time for the Planning Commission to complete its review and forward its recommendations to the Council. Pursuant to Government Code Section 65858(d), the City Council must issue a report of the steps it has taken to alleviate the need for an urgency zoning ordinance; this report is provided as Attachment 2.
Conclusion and Recommendation
Staff recommends that the Council conduct a hearing to receive public input on the proposed ordinance, then adopt the extended interim urgency ordinance (Attachment 1) to continue a moratorium on the issuance of short-term rental licenses while staff develops appropriate regulations to minimize impacts of short-term rentals on residential neighborhoods.
Council Agenda 8-2-2022 11.B-1
If Council acts to extend the Urgency Ordinance, the Extended Interim Urgency Ordinance (Attachment 1) will expire June 20, 2023; the Council may then elect, if it deems necessary, to extend the Urgency Ordinance for one additional year. This adoption requires at least a four-fifths vote of the Council, in accordance with Government Code Section 65858(a).
FISCAL IMPACT:
No fiscal impact is anticipated from the extension of the urgency ordinance itself. Staff costs that will be incurred in drafting a future ordinance are unknown.
ALTERNATIVES:
1. Do not adopt the urgency extension ordinance. The existing moratorium would expire on August 5, 2022.
ATTACHMENTS:
1. Proposed urgency extension ordinance
2. City Attorney Memorandum regarding status of urgency ordinance Prepared by: Meeting Date: August 2, 2022
Matthew Downing, Community Development Director
David M. Fleishman, City Attorney
Submitted by: Matthew Downing, Community Development Director Acting City Manager Approval:
Council Agenda 8-2-2022 11.B-2
ORDINANCE NO. O-2022-XXX
AN EXTENDED INTERIM URGENCY ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF PISMO BEACH, CALIFORNIA IMPOSING A MORATORIUM ON THE
ISSUANCE OF SHORT-TERM RENTAL LICENSES PURSUANT TO GOVERNMENT CODE SECTION 65858
WHEREAS, Pismo Beach is a popular tourist destination, drawing visitors from around the world to enjoy the Pacific Ocean, the beach, and recreational opportunities available in and around Pismo Beach; and
WHEREAS, one of the City Council’s 2022 goals is to build on the strength of the City’s local community to preserve the City’s “Classic California” charm and ensure an exceptional quality of life for residents; and
WHEREAS, the City Council recognizes the need to balance the provision of transient lodging options other than traditional hotels and motels for visitors with the needs of residents working in and around Pismo Beach to have affordable housing options; and WHEREAS, like many cities on the Central Coast, the city of Pismo Beach has a shortage of rental and for-sale housing affordable to people working in Pismo Beach and surrounding communities; and
WHEREAS, Chapter 5.22 of the Pismo Beach Municipal Code currently requires operators of short-term rentals and homestays to obtain a short-term rental license prior to engaging in the short-term rental business and as a condition of engaging in such business; and
WHEREAS, the City of Pismo Beach currently does not limit the number of short-term rental or homestay licenses that may be issued, either city-wide or in any neighborhood where such short-term rentals are allowed; and
WHEREAS, anecdotal evidence suggests that the COVID-19 pandemic has exacerbated the housing shortage, as people have moved to Pismo Beach and the Central Coast from more urban communities, and some housing units previously used as long-term rentals were sold to buyers intending to occupy them on either a full-time or part-time basis; and WHEREAS, the City has received complaints from neighbors of properties used as short- term rentals concerning parking, noise, trash, crowding, and other issues; and WHEREAS, it is in the interest of the City and its residents that the City undertake a review to consider zoning, land use, and regulatory measures to limit or otherwise regulate the number, location, and/or other aspects of short-term rental properties in Pismo Beach; and
Council Agenda 8-2-2022 11.B-3
Attachment 1
WHEREAS, Article XI, Section 7 of the California Constitution authorizes the City to make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws; and
WHEREAS, the City Council finds that there is a current and immediate threat to the public health, safety, and welfare associated with the lack of long-term rental housing in Pismo Beach, that there is a link between the prevalence of short-term rental properties and the lack of long-term rental housing, and that the issuance of additional short-term rental and homestay permits while the City undertakes a review and consideration of measures to regulate short-term rentals would exacerbate the threat and diminish or postpone the effectiveness of such measures; and
WHEREAS, California Government Code Section 65858 expressly authorizes the City Council to adopt by four-fifths (4/5) vote, without following the procedures otherwise required for the adoption of a zoning ordinance, an urgency ordinance that would go into effect immediately following its passage, which is necessary for the immediate protection of the public health, safety, and welfare; and
WHEREAS, on June 21, 2022, the City Council adopted Ordinance O-2022-005 as an interim urgency ordinance imposing a temporary moratorium on the issuance of short- term rental licenses pursuant to Government Code Section 65858 to provide the City time to study and plan its approach to short-term rentals; and WHEREAS, since the City Council has not yet had sufficient time to consider a permanent ordinance, the City seeks to extend a temporary moratorium on the issuance of new short- term rental licenses pursuant to the Pismo Beach Municipal Code, in order to provide time to study and plan its approach to these use regulations.
NOW, THEREFORE, the City Council of the City of Pismo Beach does ordain as follows:
SECTION 1.
The foregoing recitals are adopted as findings of fact in support of this interim urgency ordinance.
SECTION 2.
The City Council hereby places a moratorium on the issuance of permits and directs that no permits issue for short-term rentals and homestays under Chapter 5.22 of the Pismo Beach Municipal Code, nor shall short-term rentals and homestays not in existence as of the date of this ordinance be an allowed use under either Chapter 17.09 or Chapter
17.113 of the Pismo Beach Municipal Code. Nothing herein shall affect the City’s authority to deny a permit application pending as of the date that is one week before the adoption of this ordinance, or to suspend or revoke a permit, pursuant to Section 5.22.160 of the Pismo Beach Municipal Code, or to take action for violations as set forth in Section
17.09.100 or Section 17.113.100. The City Council hereby enacts this interim urgency Council Agenda 8-2-2022 11.B-4
Attachment 1
ordinance by not less than a four-fifths vote, and in light of the findings set forth herein, under the authority granted to it by Article XI, Section 7 of the California Constitution and Section 65858(a) of the California Government Code, which allows the City to adopt an interim urgency ordinance in order to protect the public safety, health, and welfare, prohibiting any uses that may be in conflict with a zoning proposal that the City Council, Planning Commission or the Planning Department is considering or studying or intends to study within a reasonable time:
SECTION 3.
Based upon the findings set forth in Section 1, above, this is an extended interim urgency ordinance adopted pursuant to Government Code Section 65858. This ordinance shall therefore take effect immediately upon adoption. This ordinance shall remain in effect for ten months, fifteen days from the expiration date of Ordinance O-2022-005; that is, until June 20, 2023.
SECTION 4.
Under the provisions of the California Environmental Quality Act (CEQA) Guidelines Section 15061 (b)(3), this ordinance is covered by the general rule 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, such as the adoption the regulations contained herein, the activity is not subject to CEQA.
SECTION 5.
The City Clerk shall certify to the passage and adoption of this Ordinance, shall enter the same in the book of original ordinances of the City and shall make a minute of the passage and adoption thereof in the records of the meeting at which the same is passed and adopted.
Before the expiration of fifteen (15) days after the passage of this Ordinance, the City Clerk shall cause the same to be posted in three public places within the City of Pismo Beach, to wit: 1) City Hall, 760 Mattie Road, Pismo Beach, 2) U.S. Post Office, Shell Beach Road, Pismo Beach, 3) U.S. Post Office, Crest Drive, Pismo Beach.
ADOPTED at a regular meeting of the City Council held this 2nd day of August, 2022, on motion of Council Member , seconded by Council Member , and on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Council Agenda 8-2-2022 11.B-5
Attachment 1
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
APPROVED AS TO FORM:
______________________________
David M. Fleishman, City Attorney
Council Agenda 8-2-2022 11.B-6
Attachment 1
David M. Fleishman
T 805.706.0962
F 800.552.0078
E [email protected]
847 Monterey Street, Suite 206
San Luis Obispo, California 93401
rwglaw.com
MEMORANDUM
TO: MAYOR WAAGE AND MEMBERS OF THE CITY COUNCIL
FROM: David M. Fleishman, City Attorney
DATE: July 22, 2022
SUBJECT: Extension of interim urgency ordinance imposing a citywide moratorium prohibiting the issuance of short-term rental licenses pursuant to Government Code section 65858
Pursuant to Government Code Section 65858(d), the City Council must issue a report of the steps it has taken to alleviate the need for an urgency zoning ordinance. This memorandum serves as that report. The City Council and Planning Commission, due to the press of other business, have not yet had an opportunity to review the issues related to the issuance of short- term rental licenses and the regulatory structure associated with the licensing program. As of this date, the Planning Commission has not examined these issues or provided recommendations to the City Council. As such, it is appropriate to extend the urgency ordinance to allow the Planning Commission and City Council adequate time to consider a revised regulatory scheme for short-term rentals.
Council Agenda 8-2-2022 11.B-7
Attachment 2