PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #9.J
SUBJECT/TITLE:
ADOPTION (SECOND READING) OF AN ORDINANCE MODIFYING CHAPTER 5.22
OF THE PISMO BEACH MUNICIPAL CODE REGARDING SHORT-TERM RENTALS RECOMMENDATION:
Adopt an Ordinance amending Chapter 5.22 of the Pismo Beach Municipal Code, relating to administrative regulations of vacation rentals, short-term rentals, and homestays.
BACKGROUND:
On November 7, 2023 the City Council introduced an ordinance (Attachment 1) modifying Chapter 5.22 of Title 5 of the Pismo Beach Municipal Code relating to administrative regulations for short-term rentals and homestays, as well as minor conforming edits for vacation rentals.
The ordinance was introduced with modifications to Section 5.22.130 D. and Section
5.22.140 B.1. The agenda report for the November 7, 2023 agenda item, which includes background and analysis, is provided as Attachment 2.
Recommendation
Staff recommends that the Council adopt an ordinance (Attachment 1) that will modify Chapter 5.22 of Title 5 of the Pismo Beach Municipal Code relating to administrative regulations for short-term rentals and homestays, as well as minor conforming edits for vacation rentals. If the Council acts to adopt the Ordinance at this time, it will become effective by statute on January 4, 2024. This ordinance will also terminate the existing moratorium on new short-term rental licenses.
FISCAL IMPACT:
As outlined in the staff report for the introduction of this ordinance (Attachment 2).
ALTERNATIVES:
1. Modify, and then re-introduce, the proposed Ordinance.
2. Do not adopt the Ordinance.
3. Provide staff with alternative direction.
ATTACHMENTS:
1. Ordinance as introduced
2. November 7, 2023 staff report (with ordinance attachment) Submitted by: Erica Inderlied, City Clerk Meeting Date: December 5, 2023 City Manager Approval:
9.J-1Council Agenda 12-5-2023
ORDINANCE NO. O-2023-XXX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA AMENDING CHAPTER 5.22 OF THE PISMO BEACH MUNICIPAL
CODE, RELATING TO ADMINISTRATIVE REGULATIONS OF VACATION RENTALS,
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; and
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.
Ordinance O-2023-003, which established an urgency moratorium on the issuance of new short-term rental-licenses, is hereby repealed.
SECTION 3.
Chapter 5.22 of the Pismo Beach Municipal Code is revised to read as follows:
Attachment 1
9.J-2Council Agenda 12-5-2023
Chapter 5.22 VACATION RENTAL AND SHORT-TERM 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. The words "shall" and "will" are mandatory; the word "may" is discretionary.
"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 requirements.
“Good Neighbor Policy” shall mean the administrative policy adopted and revised from time to time by the Community Development Director setting forth operational details for properties licensed under this chapter.
"Homestay" shall mean an owner-occupied, detached single-family residence where bedrooms are rented for compensation for less than thirty (30) consecutive days.
"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.
"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 three hundred sixty-five (365) day basis. For purposes of short-term rental or homestay licensing, a person can only have one primary residence at any time.
"Proof of primary residence" shall mean all documentation deemed acceptable by the City showing the dwelling is the owner's principal residence, including but not limited to tax records, property tax records, utility records, ownership documents for other properties, and homeowners’ exemptions.
"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 Pismo Beach Municipal Code by all renters and visitors of the property, twenty-four (24) hours per day, seven (7) days per week. The responsible party shall sign and be Attachment 1
9.J-3Council Agenda 12-5-2023
responsible for enforcing the City’s Good Neighbor Policy and is designated as the point of contact for the property. The responsible party shall ensure the maintenance of the licensed property in compliance with this chapter and other applicable regulations, and shall be responsible for the conduct and acts of said renters and visitors to the extent provided herein.
"Short-term rental" or "STR" shall mean the rental of a detached single-family residence for less than thirty (30) consecutive days where the primary residence is not being concurrently occupied by the owner.
“Time-share plan” shall mean any arrangement, established by membership agreement, plan, scheme, or similar device, whether sale, lease, deed, license, right-to-use agreement, articles of organization or incorporation, operating agreement or bylaws, or by any other means, whereby a purchaser, in exchange for consideration, receives the right to exclusive use of real property or a portion thereof, according to a fixed or floating time schedule, for a period of time less than a full year during any given year, on a recurring basis for more than one year, but not necessarily for consecutive years. A timeshare plan shall be deemed to exist whenever such recurring rights of exclusive use to real property are created, regardless of whether such exclusive rights of use are a result of a grant of ownership rights, possessory rights, membership rights, rights pursuant to contract, or ownership of a fractional interest or share in real property, and regardless of whether they are coupled with ownership of a real property interest such as freehold interest or an estate for years in the property subject to the time- share plan.
"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 Section 15.04.010 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.
Article I. Vacation Rental Regulation
5.22.020 Vacation Rental license required.
No owner or owners of a vacation rental shall rent, offer to rent, or advertise for rent the vacation rental to another person without a license approved and issued in the manner provided for by this Chapter.
5.22.030 Vacation Rental application process.
A.Persons wishing to use a structure as a vacation rental shall do all of the following:
Attachment 1
9.J-4Council Agenda 12-5-2023
1.Complete a vacation rental license 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 license:
a.The name, address, and telephone number of the property owner and a 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 vacation rental. The responsible party 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 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.
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.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 three hundred feet (300’) 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 5.22.030 A.2.a. of this Code.
e.Acknowledgment that the owner and responsible party, if any, have read all 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.
Attachment 1
9.J-5Council Agenda 12-5-2023
3.Submit to an inspection of the vacation rental by City staff prior to issuance of license.
4.Obtain a valid business license for a vacation rental unit.
B.Once the vacation rental is approved by the Community Development Department 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 licenses 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 license 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.
5.22.040 Vacation rental standards.
A.Except as otherwise permitted by the Community Development Director upon presentation of extenuating circumstances, each vacation rental shall have a minimum of two (2) parking spaces available on-site at all times.
B.Each vacation rental shall provide for garbage removal as required by Chapter 8.12 of this Code.
5.22.050 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 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 vacation rental. The responsible party shall respond, either in person, or by return telephone call, within three (3) hours of a complaint, and the responsible party shall provide the complaining party a proposed resolution to the complaint.
B.The operator or responsible party 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 responsible party, the owner of the vacation rental is responsible for compliance with the provisions of this chapter and the failure of an agent, representative, or responsible party to comply with this chapter shall be deemed noncompliance by the owner.
Attachment 1
9.J-6Council Agenda 12-5-2023
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 three hundred feet (300') of any point on the property containing the vacation rental, that the property will be used as a vacation rental. As part of such notice, the operator of the vacation rental shall also provide notice of the name, address and telephone number of the responsible party required in Subsection 5.22.050 A. of this Code.
D.A written notice shall be conspicuously posted inside each vacation rental unit setting forth the name, address, and telephone number of the responsible party required in Subsection 5.22.050 A. of this Code. 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.
E.Any advertising of the vacation rental shall include the vacation rental license number provided by the City.
5.22.060 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 5.22.060 A. of this Code, administrative penalties, including a notice of violation, shall be imposed, and licenses shall be revoked, in the manner provided in this Subsection 5.22.060 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 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 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 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 fine amount and a Attachment 1
9.J-7Council Agenda 12-5-2023
request for a hearing. The penalties for violations specified in Subsection 5.22.060 B. of this Code 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 license 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 license 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 license for a period not to exceed one (1) year.
2. If the owner requests a hearing within the time specified in Subsection 5.22.060 B.1. of this Code, 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.
Article II. Short-Term Rental Regulation
5.22.100 Short-term Rental license required.
No owner or owners of a property shall rent, offer to rent, or advertise for rent the property as a short-term rental or homestay to another person without a license approved and issued in the manner provided for by this Chapter.
Attachment 1
9.J-8Council Agenda 12-5-2023
5.22.110 Short-term Rental 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:
1.Complete a short-term rental application. Submit the following information at the time of application. Applications will not be deemed complete nor processed until all required information is provided and the short-term rental application fee, set by City Council resolution, is paid to the City:
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 within 48-hours of such change.
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 format or equivalent. The information shall include the following fields for all properties within a five- hundred-foot (500’) radius of any point on the property containing the short-term rental: 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.Proof of property ownership for two (2) consecutive years prior to license application and issuance.
e.Such other information as the Community development or designee deems reasonably necessary to administer this
chapter, including but not limited to: a government issued driver’s license or identification, voter registration, vehicle registration, property tax bill, tax return, and utility bills.
Attachment 1
9.J-9Council Agenda 12-5-2023
f.Acknowledgment that the owner and responsible party, if any, have read this Chapter, and acknowledgment of their
responsibility to assist in enforcement for payment of transient occupancy taxes.
g.Submit a signed affidavit under penalty of perjury by the property owner stating that the home is their primary
residence. Failure to sign the affidavit shall be grounds for denial of an STR or homestay license.
h.For properties located as part of a Homeowners Association (HOA), written authorization from the HOA Board of Directors to use the property as an STR or homestay 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 license. 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 acknowledge responsibility for enforcement of the City’s Good Neighbor Policy.
a.Should the City’s Good Neighbor Policy be amended by the Community Development Director, a copy shall be provided to all licensed STR operators via certified mail.
b.Should the certified mail not be accepted or otherwise returned to the City as undelivered, the City shall post the amended copy of the Good Neighbor Policy at the subject property on the front door of the residence. Such posting shall constitute receipt of the amended Good Neighbor Policy. c.STR operators shall sign, acknowledge, and return a signed copy of the amended Good Neighbor Policy to the Community Development Director within ten (10) days of receipt.
d.Failure of an STR operator to sign, acknowledge, and return a signed copy of the amended Good Neighbor Policy to the Community Development Director within ten (10) days of
Attachment 1
9.J-10Council Agenda 12-5-2023
receipt shall be grounds for revocation as outlined in
Subsection 5.22.140.C. of this Code.
4. 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 license shall be deemed void without further action by the City.
5.22.120 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 of this Code.
B. Each short-term rental/homestay shall have the minimum number of off- street parking spaces as required by Subsection 17.113.070 F. and Subsection 17.09.070 F. of this Code, as applicable, available at all times.
Renters of the property shall use the off-street parking provided.
C. Each STR or homestay shall provide for garbage removal as required by Chapter 8.12 of this Code. Garbage bins shall be put out for collection no earlier than 5:00 p.m. the day before collection day and brought in no later than 8:00 p.m. on collection day.
D. A written notice shall be conspicuously posted inside each STR or homestay setting forth the name, address, and telephone number of the responsible party required in Section 5.22.110 A.1.a. of this Code. 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.
E. Any advertising of the STR or homestay shall include the STR or homestay license number provided by the City and the approved number of bedrooms and required on-site parking spaces.
Attachment 1
9.J-11Council Agenda 12-5-2023
5.22.130 Annual license requirements.
A.As of the date of adoption of the ordinance revising this Chapter 5.22, there are twenty-eight (28) properties authorized for short-term rental or homestay use. There shall be no more than twenty-eight (28) short- term/homestay licenses in effect at any given time under this Chapter. No applications for short-term/homestay licenses shall be accepted after December 5, 2023 for properties without an existing short-term/homestay license in effect as of December 5, 2023. In the event a short- term/homestay license is either revoked or is not renewed, or the property transfers ownership, no additional short-term/homestay licenses shall be issued to replace the license on the property. It is the express intention of the City Council in adopting this provision to reduce the number of short- term/homestay licenses to zero through attrition over time.
B.Regardless of the date of issuance, short-term rental licenses expire on September 30 of each year. Licensed operators are required to obtain renewal of the license each year prior to September 30. Proof of primary residence shall be submitted each year prior to issuance of annual STR license and business license renewal. As a condition of renewal, the operator shall provide the City a listing of each rental night during the preceding twelve (12) months, a list of the rental charges imposed for each rental night during the preceding twelve (12) months, and proof of payment of transient occupancy tax for the prior twelve (12) months.
C.The licensed operator shall notify the City in writing of responsible party and appropriate contact information. In the event the responsible party changes, the licensed operator shall notify the City in writing of such change not later than forty-eight hours after the change.
D.For the first two (2) years after obtaining an STR license, the property shall be inspected annually during the renewal period for life safety purposes to ensure proper safety and operation of the STR. Following the first two (2) years after an STR license is issued, annual inspections shall not be required as part of the license renewal process, unless one or more violations of this Chapter or other provisions of this code are sustained within the previous twelve (12) month period. In such a case, annual inspections may be reinstated for twelve (12) months following each sustained violation.
E.The property owner shall apply for a business license renewal annually.
5.22.140 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 homestay Attachment 1
9.J-12Council Agenda 12-5-2023
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 lieu of the sanctions set forth in Subsection 5.22.140 A. of this Code, violation of this chapter may be prosecuted as an infraction, subject to the following:
1.The penalties for violations specified in Subsection 5.22.140 B. of this Code shall be as follows:
a.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 or homestay without a license, and violations of the City’s Good Neighbor Policy, shall be deemed to pose a threat to public health or safety.
b.For an initial violation, the Community Development Director may grant a hardship waiver to reduce the amount of the fine upon a showing by the licensee that the licensee 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. 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.
c.In addition to the penalties imposed under subsection a., upon a third violation of the same provision within a rolling one (1) year period, the Community Development Director shall
revoke the short-term rental license.
C.In lieu of, or in addition to the sanctions set forth in Subsection 5.22.140 A. of this Code, violation of this chapter may be prosecuted as administrative violations in the manner provided in this Subsection 5.22.140 C.
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.
Attachment 1
9.J-13Council Agenda 12-5-2023
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 fine amount and a request for a hearing.
a.The fine amount for each violation shall be one thousand dollars ($1,000.00).
b.Each separate day or rental night in which a violation exists may be considered a separate violation.
c. Should it be determined by the Community Development Director or designee that the residence is not the property owner’s primary residence, the license shall be revoked. d.Should it be determined by the Administrative Services Director that a licensee has failed to submit, or has been late in submitting two (2) or more Transient Occupancy Taxes (TOT) submittals in a twelve (12) month period, the license shall be revoked.
2.If the owner requests a hearing within the time specified in Subsection 5.22.140 C.1. of this Code, 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.
Attachment 1
9.J-14Council Agenda 12-5-2023
D.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.
5.22.150 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. As set forth in Section
5.22.130 of this Code, no STR or homestay license shall thereafter be issued for the property.
5.22.160 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 5.22.140 B of this Code.
5.22.170 Time-share uses prohibited.
Notwithstanding anything to the contrary elsewhere in this Code, no license shall be issued under this Chapter for any time-share plan.
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.
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 Attachment 1
9.J-15Council Agenda 12-5-2023
particular appeal, the validity of this ordinance and its sections, subsections, and clauses in regard to other contracts shall not be affected.
SECTION 6.
This ordinance shall become effective on the thirtieth (30th) day following passage and adoption hereof.
SECTION 7.
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 7th day of November, 2023, on motion of Council Member , seconded by Council Member , and on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
ADOPTED at a regular meeting of the City Council held this 7th day of November, 2023, on motion of Council Member Guthrie, seconded by Council Member Inman, and on the following vote:
AYES: 4 Guthrie, Inman, Newton, Reiss
NOES: 0
ABSENT: 1 Waage
ABSTAIN: 0
RECUSED: 0
Approved: Attest:
Attachment 1
9.J-16Council Agenda 12-5-2023
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
APPROVED AS TO FORM:
______________________________
David M. Fleishman, City Attorney
Attachment 1
9.J-17Council Agenda 12-5-2023
PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #12.B
SUBJECT/TITLE:
INTRODUCTION (FIRST READING) OF AN ORDINANCE MODIFYING CHAPTER 5.22
OF THE PISMO BEACH MUNICIPAL CODE REGARDING SHORT-TERM RENTALS RECOMMENDATION:
Introduce an Ordinance amending Chapter 5.22 of the Pismo Beach Municipal Code, relating to administrative regulations of vacation rentals, 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. On June 6, 2023, the moratorium was extended one final time as allowed by law, and it is set to expire on June 20, 2024. 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.
At the May 2, 2023, City Council meeting, staff proposed introduction of a revision to Title 5, Chapter 5.22 of the Pismo Beach Municipal Code (PBMC), which deals with the administrative regulations for STRs and homestays. The staff report for that meeting, which contained a detailed discussion of the task force created to address STR issues, is available online in the Access Pismo public records portal at www.pismobeach.org/accesspismo1 . While the Council did not act to introduce the ordinance at that time, Council directed staff to return with revised STR regulations addressing a number of specific issues: (1) a limit on the total number of STRs, (2) notification to surrounding properties at the time of issuance of a new or renewed STR license, and (3) a prohibition on STRs outside the Coastal Zone, with the potential for “grandfathering” the existing licenses outside the Coastal Zone. The Council also directed staff to pursue an arrangement with AirBnB and other similar platforms for the sharing of booking data to assist in the enforcement of the City’s regulations.
As such, staff has fairly significantly revised the draft ordinance presented to the Council on May 2. The proposed Ordinance (Attachment 1), which addresses the administrative portion of the STR regulations contained in Municipal Code Title 5, addresses the concerns expressed by the City Council and the Pismo Beach community at that meeting. 1 Full URL:
https://accesspismo.pismobeach.org/WebLink/DocView.aspx?id=472110&dbid=0&repo=Laserfiche Council Agenda 11-7-2023 12.B-1
November 7, 2023 Introduction Report
Attachment 2
9.J-18Council Agenda 12-5-2023
In brief, staff has implemented the changes discussed below, as well as various changes in the organization of the chapter as a whole to make it easier to read and apply. A redline version of the ordinance over the May 2 version is also attached so the Council may view the proposed changes since that version.
1. Applicants for an STR license will be required to provide mailing labels to the City to allow notification to all properties within a five-hundred-foot radius that a property owner wishes to use the property for short-term rental purposes.
2. Applicants must show proof of property ownership for a minimum of two consecutive years prior to making an application for an STR license.
3. Applicants must provide an affidavit signed under penalty of perjury that the property is the primary residence of the applicant. The City may also request additional documentation to confirm this status.
4. Applicants whose properties are part of a homeowners’ association must provide written authorization from the HOA board to use the property for short-term rental purposes.
5. Applicants must allow inspections of the premises for the first five years of operation, but thereafter only if a violation of PBMC Chapter 5.22 is sustained.
Staff also added additional standards governing the operation of STRs, including specifying the hours in which garbage bins may be put out for collection and when they must be retrieved. Operators will also be required to renew licenses annually and to provide a detailed listing of each night of STR rental, a listing of rental charges imposed, and proof of Transient Occupancy Tax (TOT) payment.
Most notably, though, staff has included a provision that establishes a maximum number of STR licenses in the city, which is currently set at 28 based on the number of licenses in existence when the Council gave direction to staff to establish a numerical cap. No applications for new STR licenses will be accepted after December 5, 2023, but renewals of existing licenses will be allowed until the property changes hands, or until the license is either revoked or not renewed. This will have the effect of gradually reducing the number of STRs in the city over time.
From an enforcement standpoint, the revised ordinance establishes a three-prong enforcement program. The program can initially be enforced through administrative citations, which are set at $1,000 per violation. There are administrative appeal procedures outlined in the ordinance. The other two methods will involve filing a citation with the court, which can either be prosecuted as an infraction or as a misdemeanor. The former method would be the secondary method of enforcement after administrative citations, and it would carry fines of $1,500 for an initial violation, $3,000 for a second violation of the same provision in the same one-year period, and $5,000 for each subsequent violation. The latter method would allow the court to impose fines of only up to $1,000, but it could impose conditions of probation that, if violated, could result in additional fines or in extreme cases, incarceration. Staff does not anticipate seeking such a remedy, but the conditions of probation allow the court to supervise enforcement which may serve as a much greater deterrent to repeat offenders.
Council Agenda 11-7-2023 12.B-2
November 7, 2023 Introduction Report
Attachment 2
9.J-19Council Agenda 12-5-2023
Because revisions to the Title 17 1983 Coastal Zoning code would require approval of the Coastal Commission to implement, staff has elected to first establish these administrative regulations for STRs in Chapter 5.22, with the intent to eventually simplify the zoning codes to remove administrative processing of STR permits in favor of those contained in Title 5. With that approach, future changes to the administration of STR permits would not require Coastal Commission approval within the Coastal Zone.
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 have added a section stating 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.
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 October 26, 2023. Additionally, the public notice was sent to all licensed STR operators on October 27, 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. Staff has revised the regulations to address neighborhood concerns and Council direction. For that reason, staff recommends the City Council introduce the revised 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. Adoption of the ordinance will also concurrently terminate the moratorium.
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 Council Agenda 11-7-2023 12.B-3
November 7, 2023 Introduction Report
Attachment 2
9.J-20Council Agenda 12-5-2023
a future date to set appropriate fees for STR license renewals and probationary inspections to cover staff time necessary to perform these services.
ALTERNATIVES:
1. Modify and introduce the ordinance; or
2. Provide alternative direction to staff.
ATTACHMENTS:
1. Ordinance
Submitted by: Meeting Date: November 7, 2023
Matthew Downing, Community Development Director
David M. Fleishman, City Attorney
City Manager Approval:
Council Agenda 11-7-2023 12.B-4
November 7, 2023 Introduction Report
Attachment 2
9.J-21Council Agenda 12-5-2023
ORDINANCE NO. O-2023-XXX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA AMENDING CHAPTER 5.22 OF THE PISMO BEACH MUNICIPAL
CODE, RELATING TO ADMINISTRATIVE REGULATIONS OF VACATION RENTALS,
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; and
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.
Ordinance O-2023-003, which established an urgency moratorium on the issuance of new short-term rental-licenses, is hereby repealed.
SECTION 3.
Chapter 5.22 of the Pismo Beach Municipal Code is revised to read as follows:
Council Agenda 11-7-2023 12.B-5
Attachment 1
November 7, 2023 Introduction Report
Attachment 2
9.J-22Council Agenda 12-5-2023
Chapter 5.22 VACATION RENTAL AND SHORT-TERM 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. The words "shall" and "will" are mandatory; the word "may" is discretionary.
"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 requirements.
“Good Neighbor Policy” shall mean the administrative policy adopted and revised from time to time by the Community Development Director setting forth operational details for properties licensed under this chapter.
"Homestay" shall mean an owner-occupied, detached single-family residence where bedrooms are rented for compensation for less than thirty (30) consecutive days.
"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.
"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 three hundred sixty-five (365) day basis. For purposes of short-term rental or homestay licensing, a person can only have one primary residence at any time.
"Proof of primary residence" shall mean all documentation deemed acceptable by the City showing the dwelling is the owner's principal residence, including but not limited to tax records, property tax records, utility records, ownership documents for other properties, and homeowners’ exemptions.
"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 Pismo Beach Municipal Code by all renters and visitors of the property, twenty-four (24) hours per day, seven (7) days per week. The responsible party shall sign and be Council Agenda 11-7-2023 12.B-6
Attachment 1
November 7, 2023 Introduction Report
Attachment 2
9.J-23Council Agenda 12-5-2023
responsible for enforcing the City’s Good Neighbor Policy and is designated as the point of contact for the property. The responsible party shall ensure the maintenance of the licensed property in compliance with this chapter and other applicable regulations, and shall be responsible for the conduct and acts of said renters and visitors to the extent provided herein.
"Short-term rental" or "STR" shall mean the rental of a detached single-family residence for less than thirty (30) consecutive days where the primary residence is not being concurrently occupied by the owner.
“Time-share plan” shall mean any arrangement, established by membership agreement, plan, scheme, or similar device, whether sale, lease, deed, license, right-to-use agreement, articles of organization or incorporation, operating agreement or bylaws, or by any other means, whereby a purchaser, in exchange for consideration, receives the right to exclusive use of real property or a portion thereof, according to a fixed or floating time schedule, for a period of time less than a full year during any given year, on a recurring basis for more than one year, but not necessarily for consecutive years. A timeshare plan shall be deemed to exist whenever such recurring rights of exclusive use to real property are created, regardless of whether such exclusive rights of use are a result of a grant of ownership rights, possessory rights, membership rights, rights pursuant to contract, or ownership of a fractional interest or share in real property, and regardless of whether they are coupled with ownership of a real property interest such as freehold interest or an estate for years in the property subject to the time- share plan.
"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 Section 15.04.010 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.
Article I. Vacation Rental Regulation
5.22.020 Vacation Rental license required.
No owner or owners of a vacation rental shall rent, offer to rent, or advertise for rent the vacation rental to another person without a license approved and issued in the manner provided for by this Chapter.
5.22.030 Vacation Rental application process.
A. Persons wishing to use a structure as a vacation rental shall do all of the following:
Council Agenda 11-7-2023 12.B-7
Attachment 1
November 7, 2023 Introduction Report
Attachment 2
9.J-24Council Agenda 12-5-2023
1. Complete a vacation rental license 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 license:
a. The name, address, and telephone number of the property owner and a 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 vacation rental. The responsible party 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 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.
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. 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 three hundred feet (300’) 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 5.22.030 A.2.a. of this Code.
e. Acknowledgment that the owner and responsible party, if any, have read all 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.
Council Agenda 11-7-2023 12.B-8
Attachment 1
November 7, 2023 Introduction Report
Attachment 2
9.J-25Council Agenda 12-5-2023
3. Submit to an inspection of the vacation rental by City staff prior to issuance of license.
4. Obtain a valid business license for a vacation rental unit.
B. Once the vacation rental is approved by the Community Development Department 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 licenses 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 license 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.
5.22.040 Vacation rental standards.
A. Except as otherwise permitted by the Community Development Director upon presentation of extenuating circumstances, each vacation rental shall have a minimum of two (2) parking spaces available on-site at all times.
B. Each vacation rental shall provide for garbage removal as required by Chapter 8.12 of this Code.
5.22.050 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 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 vacation rental. The responsible party shall respond, either in person, or by return telephone call, within three (3) hours of a complaint, and the responsible party shall provide the complaining party a proposed resolution to the complaint.
B.The operator or responsible party 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 responsible party, the owner of the vacation rental is responsible for compliance with the provisions of this chapter and the failure of an agent, representative, or responsible party to comply with this chapter shall be deemed noncompliance by the owner.
Council Agenda 11-7-2023 12.B-9
Attachment 1
November 7, 2023 Introduction Report
Attachment 2
9.J-26Council Agenda 12-5-2023
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 three hundred feet (300') of any point on the property containing the vacation rental, that the property will be used as a vacation rental. As part of such notice, the operator of the vacation rental shall also provide notice of the name, address and telephone number of the responsible party required in Subsection 5.22.050 A. of this Code.
D. A written notice shall be conspicuously posted inside each vacation rental unit setting forth the name, address, and telephone number of the responsible party required in Subsection 5.22.050 A. of this Code. 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.
E. Any advertising of the vacation rental shall include the vacation rental license number provided by the City.
5.22.060 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 5.22.060 A. of this Code, administrative penalties, including a notice of violation, shall be imposed, and licenses shall be revoked, in the manner provided in this Subsection 5.22.060 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 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 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 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 fine amount and a Council Agenda 11-7-2023 12.B-10
Attachment 1
November 7, 2023 Introduction Report
Attachment 2
9.J-27Council Agenda 12-5-2023
request for a hearing. The penalties for violations specified in Subsection 5.22.060 B. of this Code 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 license 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 license 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 license for a period not to exceed one (1) year.
2. If the owner requests a hearing within the time specified in Subsection 5.22.060 B.1. of this Code, 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.
Article II. Short-Term Rental Regulation
5.22.100 Short-term Rental license required.
No owner or owners of a property shall rent, offer to rent, or advertise for rent the property as a short-term rental or homestay to another person without a license approved and issued in the manner provided for by this Chapter.
Council Agenda 11-7-2023 12.B-11
Attachment 1
November 7, 2023 Introduction Report
Attachment 2
9.J-28Council Agenda 12-5-2023
5.22.110 Short-term Rental 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:
1. Complete a short-term rental application. Submit the following information at the time of application. Applications will not be deemed complete nor processed until all required information is provided and the short-term rental application fee, set by City Council resolution, is paid to the City:
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 within 48-hours of such change.
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 format or equivalent. The information shall include the following fields for all properties within a five- hundred-foot (500’) radius of any point on the property containing the short-term rental: 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. Proof of property ownership for two (2) consecutive years prior to license application and issuance.
e. Such other information as the Community development or designee deems reasonably necessary to administer this
chapter, including but not limited to: a government issued driver’s license or identification, voter registration, vehicle registration, property tax bill, tax return, and utility bills.
Council Agenda 11-7-2023 12.B-12
Attachment 1
November 7, 2023 Introduction Report
Attachment 2
9.J-29Council Agenda 12-5-2023
f. Acknowledgment that the owner and responsible party, if any, have read this Chapter, and acknowledgment of their
responsibility to assist in enforcement for payment of transient occupancy taxes.
g. Submit a signed affidavit under penalty of perjury by the property owner stating that the home is their primary
residence. Failure to sign the affidavit shall be grounds for denial of an STR or homestay license.
h. For properties located as part of a Homeowners Association (HOA), written authorization from the HOA Board of Directors to use the property as an STR or homestay 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 license. 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 acknowledge responsibility for enforcement of the City’s Good Neighbor Policy.
a. Should the City’s Good Neighbor Policy be amended by the Community Development Director, a copy shall be provided to all licensed STR operators via certified mail.
b. Should the certified mail not be accepted or otherwise returned to the City as undelivered, the City shall post the amended copy of the Good Neighbor Policy at the subject property on the front door of the residence. Such posting shall constitute receipt of the amended Good Neighbor Policy.
c. STR operators shall sign, acknowledge, and return a signed copy of the amended Good Neighbor Policy to the Community Development Director within ten (10) days of receipt.
d. Failure of an STR operator to sign, acknowledge, and return a signed copy of the amended Good Neighbor Policy to the Community Development Director within ten (10) days of
Council Agenda 11-7-2023 12.B-13
Attachment 1
November 7, 2023 Introduction Report
Attachment 2
9.J-30Council Agenda 12-5-2023
receipt shall be grounds for revocation as outlined in
Subsection 5.22.140.C. of this Code.
4. 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 license shall be deemed void without further action by the City.
5.22.120 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 of this Code.
B. Each short-term rental/homestay shall have the minimum number of off- street parking spaces as required by Subsection 17.113.070 F. and Subsection 17.09.070 F. of this Code, as applicable, available at all times.
Renters of the property shall use the off-street parking provided.
C. Each STR or homestay shall provide for garbage removal as required by Chapter 8.12 of this Code. Garbage bins shall be put out for collection no earlier than 5:00 p.m. the day before collection day and brought in no later than 8:00 p.m. on collection day.
D. A written notice shall be conspicuously posted inside each STR or homestay setting forth the name, address, and telephone number of the responsible party required in Section 5.22.110 A.1.a. of this Code. 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.
E. Any advertising of the STR or homestay shall include the STR or homestay license number provided by the City and the approved number of bedrooms and required on-site parking spaces.
Council Agenda 11-7-2023 12.B-14
Attachment 1
November 7, 2023 Introduction Report
Attachment 2
9.J-31Council Agenda 12-5-2023
5.22.130 Annual license requirements.
A. As of the date of adoption of the ordinance revising this Chapter 5.22, there are twenty-eight (28) properties authorized for short-term rental or homestay use. There shall be no more than twenty-eight (28) short- term/homestay licenses in effect at any given time under this Chapter. No applications for short-term/homestay licenses shall be accepted after December 5, 2023 for properties without an existing short-term/homestay license in effect as of December 5, 2023. In the event a short- term/homestay license is either revoked or is not renewed, or the property transfers ownership, no additional short-term/homestay licenses shall be issued to replace the license on the property. It is the express intention of the City Council in adopting this provision to reduce the number of short- term/homestay licenses to zero through attrition over time.
B. Regardless of the date of issuance, short-term rental licenses expire on September 30 of each year. Licensed operators are required to obtain renewal of the license each year prior to September 30. Proof of primary residence shall be submitted each year prior to issuance of annual STR license and business license renewal. As a condition of renewal, the operator shall provide the City a listing of each rental night during the preceding twelve (12) months, a list of the rental charges imposed for each rental night during the preceding twelve (12) months, and proof of payment of transient occupancy tax for the prior twelve (12) months.
C. The licensed operator shall notify the City in writing of responsible party and appropriate contact information. In the event the responsible party changes, the licensed operator shall notify the City in writing of such change not later than forty-eight hours after the change.
D. For the first five (5) years after obtaining an STR license, the property shall be inspected annually during the renewal period for life safety purposes to ensure proper safety and operation of the STR. Following the first five (5) years after an STR license is issued, annual inspections shall not be required as part of the license renewal process, unless one or more violations of the this Chapter or other provisions of this code are sustained within the previous twelve (12) month period. In such a case, annual inspections may be reinstated for twelve (12) months following each sustained violation.
E. The property owner shall apply for a business license renewal annually.
5.22.140 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 homestay Council Agenda 11-7-2023 12.B-15
Attachment 1
November 7, 2023 Introduction Report
Attachment 2
9.J-32Council Agenda 12-5-2023
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 lieu of the sanctions set forth in Subsection 5.22.140 A. of this Code, violation of this chapter may be prosecuted as an infraction, subject to the following:
1. The penalties for violations specified in Subsection 5.22.140 B. of this Code shall be as follows:
a. 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 or homestay without a license, and violations of the City’s Good Neighbor Policy, shall be deemed to pose a threat to public health or safety.
b. For an initial violation, the Community Development Director may grant a hardship waiver to reduce the amount of the fine upon a showing by the licensee that the licensee 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. 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.
C. In lieu of, or in addition to the sanctions set forth in Subsection 5.22.140 A. of this Code, violation of this chapter may be prosecuted as administrative violations in the manner provided in this Subsection 5.22.140 C.
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 Council Agenda 11-7-2023 12.B-16
Attachment 1
November 7, 2023 Introduction Report
Attachment 2
9.J-33Council Agenda 12-5-2023
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 fine amount and a request for a hearing.
a. The fine amount for each violation shall be one thousand dollars ($1,000.00).
b. Each separate day or rental night in which a violation exists may be considered a separate violation.
c. Should it be determined by the Community Development Director or designee that the residence is not the property owner’s primary residence, the license shall be revoked.
d. Should it be determined by the Administrative Services Director that a licensee has failed to submit, or has been late in submitting two (2) or more Transient Occupancy Taxes (TOT) submittals in a twelve (12) month period, the license shall be revoked.
2. If the owner requests a hearing within the time specified in Subsection 5.22.140 C.1. of this Code, 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.
D. 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.
Council Agenda 11-7-2023 12.B-17
Attachment 1
November 7, 2023 Introduction Report
Attachment 2
9.J-34Council Agenda 12-5-2023
5.22.150 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. As set forth in Section
5.22.130 of this Code, no STR or homestay license shall thereafter be issued for the property.
5.22.160 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 5.22.140 B of this Code.
5.22.170 Time-share uses prohibited.
Notwithstanding anything to the contrary elsewhere in this Code, no license shall be issued under this Chapter for any time-share plan.
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.
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.
Council Agenda 11-7-2023 12.B-18
Attachment 1
November 7, 2023 Introduction Report
Attachment 2
9.J-35Council Agenda 12-5-2023
SECTION 6.
This ordinance shall become effective on the thirtieth (30th) day following passage and adoption hereof.
SECTION 7.
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 7th day of November, 2023, on motion of Council Member , seconded by Council Member , and on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
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
Council Agenda 11-7-2023 12.B-19
Attachment 1
November 7, 2023 Introduction Report
Attachment 2
9.J-36Council Agenda 12-5-2023
APPROVED AS TO FORM:
______________________________
David M. Fleishman, City Attorney
Council Agenda 11-7-2023 12.B-20
Attachment 1
November 7, 2023 Introduction Report
Attachment 2
9.J-37Council Agenda 12-5-2023