PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #12.A
SUBJECT/TITLE:
INTRODUCTION (FIRST READING) OF AN ORDINANCE MODIFYING CHAPTER 5.22 OF TITLE 5 OF THE PISMO BEACH MUNICIPAL CODE REGARDING SHORT-TERM
RENTALS
RECOMMENDATION:
Introduce an Ordinance amending Chapter 5.22 of Title 5 of the Pismo Beach Municipal Code relating to administrative regulations of short-term rentals and homestays.
BACKGROUND:
On June 21, 2022, the City Council adopted Urgency Ordinance O-2022-005 imposing a moratorium on the issuance of short-term rental (STR) licenses to allow time for the development of regulations to address neighborhood complaints resulting from the operation of STRs in Pismo Beach. On August 2, 2022, the City Council adopted Urgency Ordinance O-2022-007, extending the moratorium until June 20, 2023 in accordance with Government Code provisions relating to urgency land use ordinances. The City’s existing STR regulations were industry leading for coastal cities at the time of adoption in 2018.
Since that time, the STR environment has evolved, consistent neighborhood complaints have been voiced, and loopholes in the regulations have been identified that necessitate revisions to the regulations. The proposed Ordinance (Attachment 1), which addresses the administrative portion of the STR regulations contained in Municipal Code Title 5, is a component of addressing the concerns expressed by the City Council and the Pismo Beach community.
In addition, it is anticipated that the City Council will consider revisions to Municipal Code Title 17 (1983 and 1998 Zoning Codes) at its May 16, 2023 meeting, following the Planning Commission’s review on April 25, 2023, at which time the Commission recommended adoption of the ordinances as presented.
Consistent with the STR ordinance development process previously employed, the City Manager formed a task force to review STR impacts and provide recommendations and feedback for revisions to the regulations. The Advisory Task Force was chaired by the City Manager and Community Development Director and comprised an array of stakeholders, including residents operating permitted STRs, residents concerned with the current regulations and negative impacts of STRs, representatives from the hotel industry, and two Council Members. The Advisory Task Force met four times, and while individual members of the task force had some varying perspectives, the task force was generally supportive of the recommended revisions to the STR regulations.
Ownership Requirements
One of the hallmarks of the City’s STR regulations is the requirement that the structure be the primary residence of the operator. This means a dwelling where the owner lives more than fifty percent of the year. The intent of this regulation was to preclude investment Council Agenda 5-2-2023 12.A-1
groups and speculators from purchasing residential properties for the sole purpose of operating as an STR. Since the STR regulations were implemented, the City has received input that the current process makes it too easy for an individual to acquire a property and immediately be eligible to operate an STR without becoming part of the neighborhood. In response to this concern, the primary residency requirements are proposed to be modified to require the property be owned by the applicant for a minimum of two years prior to license application and issuance. This will allow the new owners the opportunity to establish themselves in the neighborhood prior to application for an STR license, as well as keeping those attempting to skirt the primary residency requirements from so doing. Additionally, the definition of “primary residence” is proposed to be modified to clarify that the measurement of this time is on a rolling 365-day basis. This is intended to preclude operators from renting the STR, for example, from July to December of one year and again from January to June the following year, thereby further helping to ensure the home is the primary residence of the operator.
License Expiration
One of the most impactful changes to the STR regulations is the implementation of an annual licensing period. Currently, an STR license is valid indefinitely once it is issued.
Under the proposed regulations, STR licenses would expire on September 30 of each year, including all currently licensed STRs. This expiration timing is consistent with the expiration of City business licenses and it is anticipated that renewal information would be mailed to operators on a schedule consistent with business license renewals, to aid in ease of administration. Should the Council adopt the proposed revised regulations, staff proposes a robust outreach effort to current license holders on a monthly basis, both in email and standard mail, to alert current license holders that their STR license will expire consistent with the new regulations. Additionally, should the Council adopt the revised regulations, staff will return to the Council at the next appropriate juncture to establish a renewal fee that covers staff time necessary to renew the licenses.
Probationary Inspection
Another proposed addition to the STR regulations is the requirement for annual rental inspections for the first three annual licensing terms. During this “probationary inspection” period, staff would schedule time with STR operators to inspect the site, ensure life safety measures are maintained, and confirm that the STR is being operated in a manner consistent with the regulations. Additionally, as recommended by the STR Advisory Task Force, the proposed regulations include provisions that licensed STRs receiving one or more confirmed violations within the previous twelve months may receive additional annual inspections for the twelve-month period following each confirmed violation. The intent of this regulation is to ensure that STRs continue to be operated in a manner that minimizes impacts on the surrounding neighborhood.
Similar to fees necessary for annual renewal of STR licenses, should the Council adopt these revised regulations, staff will return to the Council to establish a renewal fee that covers staff time necessary to perform these inspections.
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Homeowner Association Authorization
Comments have been received from Homeowner Associations (HOAs) regarding the subject of approval of STR licenses in areas where the HOA has taken steps to further regulate these uses through their Covenants, Conditions, and Restrictions (CC&Rs). The City does not enforce CC&Rs; however, the City does cooperate with HOAs on matters such as architectural review prior to building permit application. Accordingly, the STR regulations are proposed to include language requiring HOA authorization prior to application submittal to the City for properties within active HOAs.
Good Neighbor Policy Regulations
When the City Council adopted the existing STR regulations, a list of “standards” for STR operators to follow was developed to further minimize the impact of STRs on residential neighborhoods (Attachment 2). However, as these “standards” are not codified into law, they represent guidelines rather than rules. As part of the updated regulations, two of these items are proposed to be codified. The first requires overnight STR occupants to park in the on-site parking spaces designated through the licensing process. This would further address neighborhood concerns of impacts to street parking because of STR operation.
The second item to be included in the revised STR regulations is the requirement for STRs to place their trash bins out for collection no sooner than 5:00 p.m. the day before collection and brought in no later than 8:00 p.m. on collection day. It is important to note that this requirement will not apply to all residences in the city. Applying this requirement to STRs will help keep STRs from becoming unsightly with trash being left in public view for extended periods, and will help protect the ocean and other waterways from trash dispersed by wind or animal extraction.
Corporate Managed/Operated Fractional Ownership
Finally, a newer phenomenon in the short-term rental landscape deals with corporately managed and operated fractional ownership units. These uses operate like timeshares but are being implemented in single-family residences rather than higher-density or resort-oriented areas. In keeping with the intent of the City’s existing regulations to protect residential neighborhoods, the STR regulations are proposed to be modified to include the existing definition of “Vacation Rental” and updated to include these corporate managed/operated fractional ownership units in such a way that this type of ownership would be prohibited under the City’s STR regulations. This is important, as vacation rentals are prohibited in the residential districts and would not be permitted. However, this would not preclude other fractional ownership situations, such as family members co- owning property, from occurring.
Regulations Not Proposed
During development of the proposed regulations, several regulations were discussed that staff did not recommend for inclusion. The first is the requirement for notice of pending STR licenses to be provided to neighbors for a comment period prior to action by the City.
The reason for not including this provision is due to the Coastal Commission previously Council Agenda 5-2-2023 12.A-3
viewing this type of action as a regulatory hurdle to the establishment of accommodations in the Coastal Zone.
Another regulation considered but not proposed for implementation is a numerical cap on the total number of STR licenses issued within the city. Larger cities, such as San Diego, have implemented numerical caps on STRs within their jurisdictions based on documented impacts to housing supply. The City currently has 28 licensed STRs, which is less than 1% of the total housing stock and does not appear to rise to the level of needing a cap. If this number drastically changes in the future, staff will return to request direction on potentially updating the regulations to include a numerical cap.
The last regulation considered but not recommended is a prohibition on STRs outside of the Coastal Zone. This was a point of discussion among the STR Advisory Task Force, and it was determined that it would preclude four existing STR licenses from being renewed. For this reason, the Advisory Task Force and staff did not recommend that prohibition be carried forward.
Environmental Review
In accordance with the California Environmental Quality Act (CEQA), it has been determined that the project is exempt pursuant to Section 15060(b)(3) of the CEQA Guidelines for projects 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.
Public Notification
A public notice regarding the proposed ordinance was posted at City Hall, on the City’s website, and published in the New Times on April 20, 2023. Additionally, the public notice was sent to all licensed STR operators on April 25, 2023. The meeting agenda was posted at City Hall and on the City’s website in accordance with Government Code section 54954.2. As of the writing of this report, no comments have been received.
Conclusion and Recommendation
The short-term rental environment has evolved since the City implemented regulations in 2018. Accordingly, the City Council has directed staff to revise the regulations to address neighborhood concerns. For that reason, staff recommends the City Council introduce an ordinance (Attachment 1) modifying Chapter 5.22 of Title 5 of the Pismo Beach Municipal Code regarding short-term rentals. This regular ordinance, if introduced at this juncture, will be returned for second reading at the next available meeting and would become effective 30 days thereafter.
FISCAL IMPACT:
The fiscal impact of approving the ordinance could result in the need to establish additional STR license renewal fees to cover City resources used to support this program.
As stated above, should the City Council adopt the revised regulations, staff will return at a future date to set appropriate fees for STR license renewals and probationary inspections to cover staff time necessary to perform these services.
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ALTERNATIVES:
1. Modify and introduce the ordinance; or
2. Provide alternative direction to staff.
ATTACHMENTS:
1. Ordinance
2. Good Neighbor Policy
Submitted by: Meeting Date: May 2, 2023
Matthew Downing, Community Development Director
City Manager Approval:
Council Agenda 5-2-2023 12.A-5
ORDINANCE NO. O-2023-XXX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA AMENDING CHAPTER 5.22 OF TITLE 5 OF THE PISMO BEACH
MUNICIPAL CODE RELATING TO ADMINISTRATIVE REGULATIONS OF SHORT-
TERM RENTALS AND HOMESTAYS
WHEREAS, during the past two decades, Pismo Beach has experienced a significant increase in the popularity of single-family homes being used as short-term rentals (STRs) for periods of less than 30 days;
WHEREAS, in 2018 the City adopted Short-Term Rental ordinances to establish a permitting process and standards in order to minimize the negative impacts resulting from a proliferation of STRs; and
WHEREAS, these impacts include, but are not limited to noise, parking, trash, loss of neighborhood character, reduction in long-term housing stock, and loss of Transient Occupancy Taxes (TOT); and
WHEREAS, the purpose of the amendments established hereby is to add additional regulations to the existing ordinance in order to enhance preservation of neighborhood integrity, encourage maintenance of the City’s long-term housing stock, further minimize impacts to coastal resources, continue to provide for the reasonable use of property, and ensure that STRs are consistent with the General Plan, Zoning Code, and other applicable sections of the Municipal Code; and
WHEREAS, additional regulations relating to the administration of short-term rental and homestay licenses are established in Title 17 of the Municipal Code.
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 ordinance.
SECTION 2.
Chapter 5.22 of the Pismo Beach Municipal Code is revised to read as follows:
Attachment 1
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Article I. Vacation Rental Regulation
5.22.010 Definitions.
For the purposes of this chapter, certain words and phrases shall be construed as set forth in this section, unless it is apparent from the context that a different meaning is intended.
"Transient" shall have the same meaning as set forth in Section 3.20.020 of this code.
“Vacation rental” shall mean any structure, as defined in the building code adopted in Title 15 of this code, which exists, is constructed, or which is maintained or used upon any premises for the purpose of transient lodging which consists of four or fewer separate transient rental units. This includes corporate managed/operated fractional ownership units.
5.22.020 Application process.
A. Persons wishing to use a structure as a vacation rental shall do all of the following:
1. Complete a vacation rental certificate request form, which form shall be provided by the Community Development Director or designee.
2. Submit the following information in support of a vacation rental certificate:
a. The name, address, and telephone number of the property owner and a contact person/entity that can be reached via telephone twenty-four (24) hours a day, seven (7) days a week, to respond to complaints regarding the use of the vacation rental. The contact person/entity shall reside or maintain a physical business address within twenty-five (25) miles of the vacation rental. A post office box or private mail drop address shall not be deemed to comply with the
requirement of maintaining a residence or physical business address. An owner of a vacation rental who resides within a twenty-five (25) mile radius of the vacation rental unit may designate themselves as the contact person. Any change in the contact person's address or telephone number shall be promptly furnished to the City.
b. A site and floor plan including unit square footage, bedroom and bathroom locations and dimensions, and parking
Attachment 1
Council Agenda 5-2-2023 12.A-7
locations and dimensions, and photographs showing the
interior of each bedroom and showing each parking location. c. A copy of the proposed notices required by Section
5.22.040.E. of this code to be posted inside the vacation rental unit.
d. Proof of written notification to all property owners and residents within one hundred (100) feet of any point on the property containing the vacation rental, describing the proposed vacation rental use, including the number of
separate vacation rental units, the number of on-site parking spaces and the telephone number of the contact person/entity set forth in subsection (A)(2)(a).
e. Acknowledgment that the owner and contact person/entity, if any, have read this chapter, and acknowledgment of their responsibility to assist in enforcement for payment of transient occupancy taxes.
f. Such other information as the Community Development
Director or designee deems reasonably necessary to
administer this chapter.
3. Submit to an inspection of the vacation rental by City staff if staff deems an inspection to be required prior to issuance of certificate.
4. Obtain a valid business license for a vacation rental unit.
B. Once the vacation rental is approved by the Community Development Director or designee and a valid business license is on file for the vacation rental, the tax administrator will issue a transient occupancy registration certificate for the vacation rental pursuant to Section 3.20.060 of this code.
C. Vacation rental certificates shall be personal property of the vacation rental unit operator and shall not run with the land. Upon sale of a property operated as a vacation rental, the vacation rental certificate shall expire as of the date of sale, and the new owner shall comply with the provisions of this chapter prior to operation of the vacation rental unit.
5.22.030 Vacation rental standards.
A. Except as otherwise permitted by the Community Development Director or designee upon presentation of extenuating circumstances, each vacation rental shall have a minimum of two (2) parking spaces available onsite at all times.
Attachment 1
Council Agenda 5-2-2023 12.A-8
B. Each vacation rental shall provide for garbage removal as required by Chapter 8.12 of this code.
5.22.040 On-going requirements for vacation rental operation.
A. The operator of the vacation rental shall, at all times while the property is being used as a vacation rental, maintain a contact person/entity that can be reached via telephone twenty-four (24) hours a day, seven (7) days a week, to respond to complaints regarding the use of the vacation rental. The contact person shall respond, either in person, or by return telephone call, within three (3) hours of a complaint, and the contact person shall provide the complaining party a proposed resolution to the complaint.
B. The operator or contact person/entity shall use best efforts to ensure that the occupants and/or guests of the vacation rental do not create unlawful noise or disturbances, engage in disorderly conduct, or violate provisions of this code or any state law pertaining to noise or disorderly conduct, by notifying the occupants of the rules regarding vacation rentals and responding in person when notified that occupants are violating laws regarding their occupancy. Notwithstanding the retention of a separate contact person/entity, the owner of the vacation rental is responsible for compliance with the provisions of this chapter and the failure of an agent, representative, or contact person to comply with this chapter shall be deemed noncompliance by the owner.
C. The operator of the vacation rental shall annually, not later than December 31 of each year, notify in writing all property owners and residents within one hundred (100) feet of any point on the property containing the vacation rental, that the property will be used as a vacation rental.
D. The operator of the vacation rental shall annually, not later than December 31 of each year, provide in writing to all property owners and residents within one hundred (100) feet of any point on the property containing the vacation rental the name, address and telephone number of the contact person required in subsection (A) of this section.
E. A written notice shall be conspicuously posted inside each vacation rental unit setting forth the name, address and telephone number of the contact person required in subsection (A) of this section. The notice shall also set forth the maximum number of occupants permitted to stay overnight in the unit, the maximum number of vehicles allowed to be parked on-site, and the day(s) established for garbage collection. The notice shall also provide the non-emergency telephone number of the City Police Department.
Attachment 1
Council Agenda 5-2-2023 12.A-9
F. Any advertising of the vacation rental shall include the vacation rental permit number provided by the City.
5.22.050 Violations and enforcement.
A. It shall be unlawful and a misdemeanor for any person to construct for vacation rental use, to convert to vacation rental use, to offer to another for vacation rental use, to advertise for vacation rental use, or to occupy as a vacation rental use any portion of any structure or facility without full compliance with this chapter.
B. In addition to, or in lieu of criminal sanctions set forth in subsection (A) of this section, administrative penalties, including a notice of violation, shall be imposed, and permits shall be revoked, in the manner provided in this subsection (B).
1. The City Building Official or designee shall conduct an investigation whenever there is reason to believe that an owner has failed to comply with the provisions of this chapter. Should the investigation reveal that a violation occurred, the City Building Official or designee shall issue written notice of the violation and intention to impose a penalty and/or revoke the permit. The written notice shall be served on the owner and operator or agent and shall specify the facts which, in the opinion of the City Building Official, constitute grounds for imposition of the penalties and/or revocation, and specify that the penalties will be imposed and/or that the permit will be revoked within fifteen (15) days from the date the notice is given unless the owner and/or operator files with the City Clerk the amount of any fine imposed, and a request for a hearing. The penalties for violations specified in subsection (B) of this section shall be as follows:
a. For the first violation within any twelve (12) month period, the penalty shall be a fine not to exceed one hundred dollars ($100), and/or suspension of the permit for a period not to exceed three (3) months.
b. For a second violation within any twelve (12) month period, the penalty shall be a fine not to exceed two hundred fifty dollars ($250), and/or suspension of the permit for a period not to exceed six (6) months.
c. For a third violation within any twelve (12) month period, the penalty shall be a fine not to exceed five hundred dollars ($500), and/or suspension of the permit for a period not to exceed one (1) year.
Attachment 1
Council Agenda 5-2-2023 12.A-10
2. If the owner requests a hearing within the time specified in subsection (1) of this section, the City Clerk shall serve written notice on the owner and operator, by mail, of the date, time and place for the hearing which shall be scheduled not less than fifteen (15) days, nor more than forty-five (45) days after receipt of request for a hearing. The Community Development Director may preside over the hearing or may designate a hearing officer to take evidence and submit proposed findings and recommendations to the Community Development Director. The Community Development Director shall impose the penalties or revoke the permit only upon a finding that a violation has been proven by a preponderance of the evidence, and that the penalty or revocation is consistent with the provisions of this chapter. The Community Development Director shall render a decision within thirty (30) days of the hearing and the decision shall be final.
C. The Community Development Director or designee shall have the authority to impose additional conditions on any permit in the event of any violation of the conditions of the permit or the provisions of this chapter.
Article II. Short-Term Rental Regulation
5.22.100 Definitions.
For the purposes of this chapter, certain terms are hereby defined. The words "shall" and "will" are mandatory; the word "may" is discretionary.
A. "Bedroom" shall mean a room that is primarily used for sleeping. A bedroom shall be no less than seventy (70) square feet in size, with a minimum horizontal dimension of no less than seven (7) feet on any side. A bedroom offered for rent within a Short-Term Rental or Homestay shall meet all applicable California Building Code life safety requirements.
B. "Homestay" shall mean an owner-occupied, detached single-family residence where bedrooms are rented for compensation for less than thirty (30) consecutive days.
C. "Primary residence" shall mean the dwelling owned and occupied as the property owner's principal place of residence, where the owner lives more than fifty percent (50%) of the year, defined herein as one hundred eighty- three (183) days or more per year on a rolling 365-day basis. For purposes of Short-Term Rental or Homestay licensing, a person can only have one Primary Residence at any time.
D. "Proof of Primary Residence." In addition to the requirement that the licensed property be the property owner's Primary Residence as defined Attachment 1
Council Agenda 5-2-2023 12.A-11
herein, the City shall also review documentation deemed acceptable by the City showing the dwelling is the owner's principal residence.
E. “Responsible party” shall mean a person, over the age of eighteen (18), who shall be legally responsible for compliance of all renters and visitors of the STR or Homestay with all applicable provisions of the Pismo Beach Municipal Code. The Responsible Party shall sign the Good Neighbor Policy and is designated as the point of contact for the STR or Homestay.
The Responsible Party shall assure the maintenance of the licensed property in compliance with this and other applicable regulations, and shall be responsible for the conduct and acts of said renters and visitors to the extent provided herein. The Responsible Party's contact information shall be provided to all short-term renters and neighbors within three hundred (300) feet of the STR or Homestay in the manner prescribed in Chapter
5.22. F. "Short-term rental" or "STR" shall mean the rental of a detached single- family residence or accessory dwelling unit for less than thirty (30) consecutive days where the primary residence is not being concurrently occupied by the owner.
G. "Long-term rental" shall mean a rental for thirty (30) consecutive days or more. Any rental agreement that allows a sublet or sublease to multiple parties for any terms less than thirty (30) days, or early cancellation with or without penalty that allows multiple rentals within a thirty (30) day period, shall be considered a Short-Term Rental and be subject to the terms of a Short-Term Rental license as provided in this code.
5.22.110 License required.
A. No owner or owners of a Short-Term Rental or Homestay shall rent, offer to rent, or advertise for rent the Short-Term Rental or Homestay to another person without a license approved and issued in the manner provided for by this chapter.
B. Applicants must show proof of property ownership for two (2) consecutive years from the date of purchase prior to license application and issuance.
5.22.120 Application process.
A. A property owner wishing to use a detached single-family residence as a Short-Term Rental or Homestay shall do all of the following. Applications will not be deemed complete nor processed until all required information is provided and fees are paid:
Attachment 1
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1. Complete a Short-Term Rental application. Submit the following information at the time of application:
a. The name, address, and telephone number of the property owner, or authorized Responsible Party, that can be reached via telephone twenty-four (24) hours a day, seven (7) days a week, to respond to complaints regarding the use of the STR or Homestay. Any change in the contact information for either the property owner or Responsible Party shall be promptly furnished to the City.
b. A site and floor plan including unit square footage, bedroom and bathroom locations and dimensions, and parking
locations and dimensions, and photographs showing the
interior of each bedroom and showing each parking location.
c. Notification materials containing information that allows the City to produce mailing labels, including both Owner and Occupant lists. The information should be provided in
Microsoft Excel or equivalent editable spreadsheet format.
The information should include the following fields for all properties within a five-hundred (500) foot radius of the site:
Assessor Parcel Number, property address, first and last name of owner, owner mailing address, owner city, owner state, and owner zip code. A receipt or letter from the title company or person who completes notification labels,
certifying that the labels are correct, to the best ability of the preparer, must also be included.
d. Such other information as the Director of Community
Development or designee deems reasonably necessary to
administer this chapter.
e. Acknowledgment that the owner and contact person/entity, if any, have read all this chapter, and acknowledgment of their responsibility to assist in enforcement for payment of transient occupancy taxes.
f. Submit an affidavit signed under penalty of perjury by property owner that the home is their primary residence. Failure to sign the affidavit shall be grounds for denial of an STR or
Homestay license.
g. For properties that are part of a Homeowner Association (HOA), written authorization from HOA Board of Directors to Attachment 1
Council Agenda 5-2-2023 12.A-13
use the property as a Short-Term Rental shall be required prior to action on the license by the City.
2. Submit to an inspection of the rental by City staff prior to issuance of the certificate. Prior to issuance of an STR or Homestay license, the City shall conduct an inspection of subject property to confirm bedroom count, on-site parking, and applicable safety standards. If complaints are received about STR or Homestay operations, the City shall have the right to re-inspect the property. In the event such re- inspection requires access to the interior of a dwelling unit, the property owner shall provide the City access to the premises upon forty-eight (48) hours’ advance notice.
3. Review and initial the Good Neighbor Policy.
4. Pay the Short-Term Rental license application fee, as established by resolution of the City Council.
5. Obtain a valid business license for a short-term rental property.
B. Once the Short-Term Rental license is issued by the Community Development Department and a valid business license is on file for the Short-Term Rental or Homestay, the tax administrator will issue a valid transient occupancy registration certificate for the Short-Term Rental or Homestay pursuant to Section 3.20.060 of this code.
C. Short-term rental and Homestay licenses shall be personal property of the property owner and shall not run with the land. Upon sale of a property operated as a Short-Term Rental or Homestay, the certificate shall be deemed void without further action by the City.
5.22.130 Short-term rental standards.
A. The STR or Homestay shall be operated consistent with the standards and regulations contained within the zoning codes of the Pismo Beach municipal code, including but not limited to Chapters 17.09 and 17.113.
B. Each STR or Homestay shall provide for garbage removal as required by Chapter 8.12 of this code.
C. A written notice shall be conspicuously posted inside each STR or Homestay setting forth the name, address, and telephone number of the contact person required in Section 5.22.120(A)(1)(a). The notice shall also set forth the maximum number of occupants permitted to stay overnight in the unit, the maximum number of vehicles allowed to be parked on-site, and Attachment 1
Council Agenda 5-2-2023 12.A-14
the day(s) established for garbage collection. The notice shall also provide the non-emergency telephone number of the City Police Department.
D. Any advertising of the STR or Homestay shall include the STR or Homestay license number provided by the City.
5.22.140 Annual license requirements.
A. Short-Term Rental or Homestay licenses are valid from the date of issuance through September 30 of each year. Any licenses in effect as of the effective date of the ordinance establishing this section shall be deemed to be extended to September 30 in the same year or the year following the effective date of the ordinance, whichever is sooner, and thereafter such licenses shall be subject to the annual renewal requirements of this section.
Short-Term Rental or Homestay operators are responsible for obtaining renewal of the license each year.
B. An operator wishing to renew their Short-Term Rental or Homestay license for the annual period shall do all of the following. Applications will not be deemed complete nor processed until all required information is provided and fees are paid:
1. Complete a Short-Term Rental application. Submit the following information at the time of application:
a. The name, address, and telephone number of the property owner, or authorized Responsible Party, that can be reached via telephone twenty-four (24) hours a day, seven (7) days a week, to respond to complaints regarding the use of the STR or Homestay. Any change in the contact information for either the property owner or Responsible Party shall be promptly furnished to the City.
b. Acknowledgment that the owner and contact person/entity, if any, have read all this chapter, and acknowledgment of their responsibility to assist in enforcement for payment of transient occupancy taxes.
c. An affidavit signed under penalty of perjury by property owner that the home is their primary residence. Failure to sign the affidavit shall be grounds for denial of an STR or Homestay license.
d. For properties that are part of a Homeowner Association (HOA), written authorization from HOA Board of Directors to Attachment 1
Council Agenda 5-2-2023 12.A-15
use the property as a Short-Term Rental shall be required prior to action on the license by the City.
e. If the layout of the licensed site and/or structure had changed, an updated site and floor plan including unit square footage, bedroom and bathroom locations and dimensions, and
parking locations and dimensions, and photographs showing the interior of each bedroom and showing each parking
location.
f. If deemed necessary by the Community Development
Director or designee, updated notification materials containing information that allows the City to produce mailing labels, including both Owner and Occupant lists, in compliance with Section 5.22.120(A)(1)(c) of this code.
g. Such other information as the Director of Community
Development or designee deems reasonably necessary to
administer this chapter.
2. Submit to inspection of the property as outlined in Section (C) below.
3. Review and initial the Good Neighbor Policy.
4. Pay the Short-Term Rental license application fee, as established by resolution of the City Council.
5. Obtain a valid business license for a short-term rental property.
C. During the first three (3) annual licensing periods for a particular property, the property shall be inspected by the City during the renewal period for life safety purposes to ensure proper safety and operation of the STR or Homestay.
1. Following this three (3) year period, annual inspections shall not be required as part of the license renewal process, unless one or more violations of the applicable regulations in this code are confirmed within the previous twelve (12) month period. In such a case, annual inspections may be reinstated for twelve (12) months following each confirmed violation, at the discretion of the Community Development Director or designee.
5.22.150 Violations and enforcement.
A. It shall be unlawful and a misdemeanor for any person to construct for Short-Term Rental or Homestay use, to convert to Short-Term Rental or Attachment 1
Council Agenda 5-2-2023 12.A-16
Homestay use, to offer to another for Short-Term Rental or Homestay use, to advertise for Short-Term Rental or Homestay use, or to occupy as a Short-Term Rental or Homestay use, any portion of any structure or facility without full compliance with this chapter.
B. In addition to, or in lieu of. criminal sanctions set forth in subsection
5.22.140(A), administrative penalties, including a notice of violation, shall be imposed, and licenses shall be revoked, in the manner provided in this subsection B.
1. The Community Development Director or designee shall cause an investigation to be conducted whenever there is reason to believe that an owner has failed to comply with the provisions of this chapter.
Should the investigation reveal that a violation occurred, the Community Development Director or designee shall issue written notice of the violation and intention to impose a penalty and/or revoke the license. The written notice shall be served on the owner and operator or agent and shall specify the facts which, in the opinion of the Community Development Director, constitute grounds for imposition of the penalties and/or revocation, and specify that the penalties will be imposed and/or that the license will be revoked within fifteen (15) days from the date the notice is given unless the owner and/or operator files with the City Clerk the amount of any fine imposed, and a request for a hearing.
a. The penalties for violations specified in subsection B. of this section shall be as follows: Notwithstanding anything to the contrary in Section 1.24.080 of this code, the initial fine shall be, at a minimum, seven hundred and fifty dollars ($750) for an administrative violation of this chapter and shall be, at a minimum, one thousand dollars ($1,000) for each subsequent violation. Each separate day or rental night in which a violation exists may be considered a separate violation. Any attempt to rent an unlicensed residence as an STR or Homestay by
advertising said property for Short-Term Rental or Homestay purposes shall be deemed a violation of this chapter. The City shall not issue an STR or Homestay license for a particular residence for a minimum of twelve (12) months after a
violation for marketing or renting said residence without a valid license.
b. Failure to sign an affidavit stating that the residence is the property owner’s primary residence will result in an initial fine of seven hundred and fifty dollars ($750) and license
revocation. Additionally, should it be determined that the residence is not the property owner’s primary residence, Attachment 1
Council Agenda 5-2-2023 12.A-17
based on a preponderance of the evidence, the license shall be revoked.
c. Licensees failing to submit, or submitting late, two (2) or more Transient Occupancy Tax (TOT) submittals in a twelve (12) month period, shall not have their license renewed following the expiration of that period.
2. If the owner requests a hearing within the time specified in subsection (1) of this section, the City Clerk shall serve written notice on the owner and operator, by mail, of the date, time and place for the hearing which shall be scheduled not less than fifteen (15) days, nor more than forty-five (45) days after receipt of request for a hearing. The Community Development Director may preside over the hearing or may designate a hearing officer to take evidence and submit proposed findings and recommendations to the Community Development Director. The Community Development Director shall impose the penalties or revoke the license only upon a finding that a violation has been proven by a preponderance of the evidence, and that the penalty or revocation is consistent with the provisions of this chapter. The Community Development Director shall render a decision within thirty (30) days of the hearing and the decision shall be final.
C. The Community Development Director or designee shall have the authority to impose additional conditions on any license in the event of any violation of the conditions of the license or the provisions of this chapter.
5.22.160 Cessation of use of a property as short-term rental.
Where the owner of property licensed as a Short-Term Rental or Homestay pursuant to this chapter ceases such use, the property owner shall promptly inform the tax administrator of the cessation of use of the property as a short-term rental or Homestay and shall surrender the STR or Homestay license.
5.22.170 License suspension, modification, or revocation.
In addition to any other remedy provided by this chapter, a license issued pursuant to this chapter may be suspended, modified or revoked for violations of this chapter, for violation of any other law on the premises of the Short-Term Rental or Homestay, or for the maintenance of such other conditions as may be shown to be injurious to the public health and safety. Revocation proceedings may be initiated by the community development director and shall be conducted pursuant to the procedures set forth in Section 5.22.150(B).
Attachment 1
Council Agenda 5-2-2023 12.A-18
SECTION 3.
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 4.
This ordinance shall not be interpreted in any manner to conflict with controlling provisions of state or federal law, including, without limitation, the Constitution of the State of California. If any section, subsection, or clause of this ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. If this ordinance, or any section, subsection or clause of this ordinance shall be deemed unconstitutional or invalid as applied to a particular appeal, the validity of this ordinance and its sections, subsections, and clauses in regard to other contracts shall not be affected.
SECTION 5.
This ordinance shall become effective on the thirtieth (30th) day following passage and adoption hereof.
SECTION 6.
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.
INTRODUCED at a regular meeting of the City Council held this 2nd day of May, 2023, on motion of Council Member , seconded by Council Member , and on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Attachment 1
Council Agenda 5-2-2023 12.A-19
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
ADOPTED at a regular meeting of the City Council held this th day of , 2023, on motion of Council Member , seconded by Council Member , and on the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
APPROVED AS TO FORM:
______________________________
David M. Fleishman, City Attorney
Attachment 1
Council Agenda 5-2-2023 12.A-20
Attachment 2
2 D.Pismo Beach Short-Term Rental/Homestay Good Neighbor Policy The City of Pismo Beach Short-Term Rental (STR) regula�ons are intended to minimize the impacts of STRs on residen�al neighborhoods. Consequently, the City requires that all occupants of STRs adhere to the Good Neighbor Policy as outlined below:
1.The owner, or responsible party (as defined by the Pismo Beach Municipal Code) shall be available 24-hours a day, seven days a week to respond to complaints concerning the condi�on, opera�on, or conduct of STR occupants.
2."Responsible party" shall mean a person, over the age of eighteen, who shall be legally responsible for compliance of all renters and visitors of the STR or homestay with all applicable provisions of the Pismo Beach municipal code. The responsible party shall sign the good neighbor policy and is designated as the point of contact for the short-term rental or homestay.
3.The responsible party shall assure the maintenance of the licensed property in compliance with this and other applicable regula�ons and shall be responsible for the conduct and acts of said renters and visitors to the extent provided herein. The responsible party's contact informa�on shall be provided to all short-term renters and neighbors within three hundred feet of the STR or homestay in the manner prescribed in Chapter 5.22.
4.The owner/responsible party shall respond to a complaint within 30 minutes.
5.Parking – Parking shall be provided in a garage or on a driveway. STR occupants shall use the off-street parking that is provided for the rental.
6.Noise – The STR renters and visitors shall not generate noise to an extent that unreasonably interferes with the quiet use and enjoyment of neighboring proper�es. Any noise occurring a�er 10 p.m. and before 7:00 a.m. shall be contained within the STR/Homestay.
7.Trash – Trash shall not be le� stored within public view, except in proper containers for purposes of collec�on. There shall be no accumula�on of storage of trash and/or debris on the site or within the STR/Homestay.
8.Traffic – Vehicles used and traffic generated by the STR or homestay shall not exceed normal residen�al levels or unreasonably interfere with the quiet use and enjoyment of any other residences or businesses in the area. What is reasonable in terms of traffic generated shall be determined under exis�ng legal standards applicable to evalua�ng alleged nuisances.
9.Maximum Occupancy – Maximum overnight occupancy of an STR or homestay shall be limited to two people per bedroom, plus two addi�onal people. For example, a two-bedroom STR may have up to six occupants overnight. This calcula�on shall be inclusive of children.
10.Visitors – The number of visitors to an STR or homestay shall not exceed a number equal to the allowable occupancy of the STR or homestay at any �me. Visitors are not allowed in the STR or homestay between 11:00 p.m. and 7:00 a.m. and shall not stay overnight on the premises.
By ini�aling below, I am confirming that I understand and agree that it is the responsibility of the owner/responsible party contact to ensure that all STR/Homestay rules and regula�ons are acknowledged and adhered to by the STR renters and visitors.
Owner Ini�als _________ Responsible Party Ini�als _________ Council Agenda 5-2-2023 12.A-21
Attachment 2