RESOLUTION NO. 25-84
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, APPROVING PHP24-328, STAR24-329, TO ESTABLISH ONE SHORT TERM RENTAL (UNIT B), ONE LONG TERM RENTAL (UNIT C), AND ONE MANAGER’S UNIT (UNIT A) LOCATED AT 166 AVENIDA ARAGON; AND FINDING THAT THE PROJECT IS CATEGORICALLY EXEMPT FROM CEQA PURSUANT TO STATE CEQA GUIDELINES SECTION 15301 (CLASS 1: EXISTING FACILITIES).
WHEREAS, on July 12, 2024, an application was submitted by Jill Wyatt, 1021 Alexandria Drive, San Diego, CA 92107, for Public Hearing Project (PHP) 24-328, Short-Term Apartment Rental Unit (STAR) 24-329 and deemed complete on March 10, 2025, a request to establish two short term apartment rental units within an existing duplex building with an accessory dwelling unit (ADU). The applicant requested that Unit B and Unit C be established as two short-term rentals for overnight accommodations of less than 30 days, and the ADU (Unit A) to be occupied by an on-site property manager. The site is addressed at 166 Avenida Aragon (APN: 692-382-29) and within the Residential Medium (RM) zone. The site’s legal description is N TR 793 BLK 9 LOT 26 TR 793 LOT 26 BLK 9 (AND ELY1/2 LOT 25 BLK 9; and WHEREAS, the Planning Division completed an initial environmental assessment of the above matter in accordance with the California Environmental Quality Act (CEQA) and recommends the City Council determine that the project is Categorically Exempt from CEQA pursuant to State CEQA Guidelines Section 1 (Class 1: Existing Facilities). This is recommended because the project involves the conversion of one existing long-term apartment unit into one short-term rental and the establishment of one manager’s unit; and WHEREAS, the City's Development Management Team (DMT) reviewed the proposed project and determined it complies with the General Plan, Zoning Ordinance, and other applicable City ordinances and codes. The DMT supports the project; and WHEREAS, on April 17, 2025, the Zoning Administrator of the City of San Clemente held a duly noticed public hearing on the subject application, considered written and oral comments, and facts and evidence presented by the applicant, City staff, and other interested parties; and WHEREAS, on May 6, 2025, the City Council appealed the Zoning Administrator’s decision on this application upon review of the Zoning Administrator Minutes of April 17, 2025; and WHEREAS, on June 17, 2025, the City Council of the City of San Clemente held a duly noticed de novo public hearing on the subject application, considered written and oral comments, and facts and evidence presented by the applicant, City staff, and other interested parties.
NOW, THEREFORE, the City Council of the City of San Clemente does hereby find, determine and resolve as follows:
SECTION 1. Incorporation of Recitals
The City Council hereby finds that all of the facts in the Recitals are true and correct and are fully incorporated herein and adopted as findings of the City Council.
SECTION 2. CEQA Findings
Based upon its review of the entire record, including the Staff Report, any public comments or testimony presented to the City Council, and the facts outlined below, the City Council hereby finds and determines that the proposed project is Categorically Exempt from CEQA pursuant to State CEQA Guidelines Section 15301 (Class 1: Existing Facilities).
The Class 1 exemption specifically exempts from further CEQA review the operation, repair, maintenance, and minor repair of existing public or private structures, involving negligible or no expansion of use beyond that existing at the time of the lead agency’s determination. This exemption covers, but is not limited to, interior or exterior alterations, additions to the existing structures that will not result in an increase of more than 50 percent of the floor area of the structure before the addition, or 2,500 square feet, whichever is less. Here, the proposed project involves the conversion of an existing long-term apartment unit into one short-term rental and establishment of one manager’s unit, within a developed residential neighborhood, and will not increase the floor area of the structure by more than 50 percent of the existing floor area, or more than 2,500 square feet. The project does not increase or otherwise change the existing use of the site. Thus, the project qualifies for the Class 1 exemption.
Furthermore, none of the exceptions to the use of the Class 1 categorical exemption identified in State CEQA Guidelines Section 15300.2 apply. The project will not result in a cumulative impact from successive projects of the same type in the same place, over time. There are no unusual circumstances surrounding the project that result in a reasonably possibility of a significant effect on the environment. The project will not damage scenic resources, including trees, historic buildings, rock outcroppings, or similar resources. The project does not include any hazardous waste sites, and the project will not cause a substantial adverse change in the significance of a historical resource. Thus, the Class 1 exemption applies, and no further environmental review is required.
SECTION 3. Short-Term Apartment Rental Permit Findings With respect to Short Term Apartment Rental (STAR) 24-329, the City Council finds as follows:
The proposed use is permitted within the subject zone pursuant to the approval of a STAR permit and complies with all the applicable provisions of this title, the San Clemente General Plan, and the purpose and intent of the zone in which the use is being proposed, in that:
The site supporting the proposed STAR unit is within a half mile walking distance of the beach and about a quarter mile from the San Clemente Trolley Red Line Stop 6 that travels along El Camino Real to the Downtown District and San Clemente Pier. The site is immediately adjacent to Max Berg Plaza Park (where parking is in demand during the day and restricted at night) and one block away from Las Palmas Elementary School, where nearby parking is also in demand.
The site is suitable for the type of use that is proposed, but the intensity of the use must be reduced to one STAR to avoid adverse impacts to adjacent public uses, neighbors, and City resources, in that:
The proposed STAR is located in the Residential Medium density zone, which allows for more intense development including clustered homes, townhomes, and other multi-family structures.
Due to its proximity to the public park and public school, where street parking is limited in supply and prohibited at night, in a dense residential neighborhood, two STAR units cannot be accommodated without risk of detriment to the public health, safety, and welfare. Furthermore, due to the small size of the property and the limited non-conforming parking on site, two STAR units would be materially injurious to properties in the vicinity, in that some guests unfamiliar with the neighborhood would bring more vehicles than can fit on site and occupy more neighborhood parking spaces than would be occupied by long term rental residents. One STAR may be accommodated on site, consistent with code requirements and compliance of the conditions of approval, which require an on-site property manager to be adequately trained to address guest issues directly, to the greatest extent feasible, in order to minimize expending City staff resources. The property owner and property manager would also be required to prominently identify within its advertising and listings on short-term rental platforms that the maximum occupancy of the unit is eight guests and guests are expected to store their vehicles within two tandem parking spaces.
No new physical development is proposed. The STAR unit would be converted from a long-term rental unit and the manager’s unit would be converted from a lawfully permitted ADU that exists on the property.
The project is within the Coastal Zone overlay but the scope of the project is consistent with the Categorical Exclusion order.
The proposed use with one STAR unit will not be detrimental to the public health, safety, or welfare, or materially injurious to properties in the vicinity, in that:
Due to its proximity to the public park and public school, where street parking is limited in supply and prohibited at night, in a dense residential neighborhood, two STAR units cannot be accommodated without risk of detriment to the public health, safety, and welfare. Furthermore, due to the small size of the property and the limited non-conforming parking on site, two STAR units would be materially injurious to properties in the vicinity, in that some guests unfamiliar with the neighborhood would bring more vehicles than can fit on site and occupy more neighborhood parking spaces than would be occupied by long term rental residents.
As required by the Zoning Ordinance, Unit A would be occupied by a full-time, on-site property manager. The manager would be responsible for maintaining the premises and addressing any concerns raised by the short-term tenants/guests or neighbors, such as noise, parking, and trash.
A condition is included requiring the property manager to be adequately trained to address guest issues. Furthermore, a condition is included requiring the property manager to resolve issues directly, to the greatest extent feasible, in order to minimize expending city staff resources. A further condition is added to require the owner and property manager to prominently identify within its advertising and listings on short-term rental platforms that the maximum occupancy of the unit is eight guests and guests are expected to store their vehicles within two tandem parking spaces. As conditioned, the proposed STAR unit would not be detrimental to the public health, safety, or welfare.
The project meets all the minimum operating and development standards of the Zoning Code Subsections 17.28.292 E and F, which are intended to ensure the existing character of the residential neighborhoods are preserved and not adversely impacted. The applicant provided evidence of compliance with these standards in the application materials.
The requested use has been reduced to allow for only one STAR (Unit B) on the property.
The proposed use of one STAR will not negatively impact surrounding land uses, in that:
Zoning Ordinance Section 17.28.292 F requires the following locational criteria: “a STAR must be located at least 300 feet from every other STAR or STLU. This distance shall be measured by following a straight line without regard to intervening buildings from the nearest point of the parcel on which the proposed STAR is to be located to the nearest point of the parcel from which the proposed STAR is to be separated.” The existing STLUs located closest to the project site are at the following addresses: 227 Avenida del la Grulla (approximately 929 feet from project site), 140 W Canada (approximately 700 feet from project site), and 1520 N El Camino Real (approximately 929 feet from project site).
Avenida Aragon is a two-way street with vehicle access to El Camino Real. Two parking spaces in tandem are required for the one authorized STAR.
The use meets the minimum operating and development standards of Subsections 17.28.292E and F.
The STAR is located within a Residential Medium density zone which allows for more intense residential development than single-family residential like multifamily structures. The site does not have an affordable-housing restriction nor is it currently included in the City’s Inclusionary Housing Program.
The approval of the STAR unit would not surpass the maximum limit of 20% for STARs and STLUs operating within the STLU Allowed Areas maps.
The STAR will provide a minimum of two 90-gallon waste containers for trash and two 90-gallon waste containers for recycling or equivalent volume, as conditioned in the Conditions of Approval, Exhibit A of this Resolution.
The STAR is not within 300 ft from any other STAR or STLU.
The STAR qualifies for an STLU operating license pursuant to Chapter 3.24.
A condition of approval is included requiring the owner to obtain an STLU operating license prior to use of the property for short-term lodging.
SECTION 4. City Council Approval
THE CITY COUNCIL HEREBY APPROVES STAR 24-329 IN PART AND DENIES STAR 24-329 IN PART based on the above findings. The Short-Term Apartment Rental unit in Unit C IS HEREBY DENIED WITH PREJUDICE. The Short-Term Apartment Rental unit in Unit B IS HEREBY APPROVED subject to the conditions of approval attached hereto as Exhibit A and fully incorporated herein.
SECTION 5. City Clerk
The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
PASSED AND ADOPTED this _____ day of ____________________, _______.
ATTEST:
___________________________ __________________________
City Clerk of the City of Steve Knoblock, Mayor of the
San Clemente, California City of San Clemente, California STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §
CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 25-84 was adopted at a regular meeting of the City Council of the City of San Clemente held on the _______ day of _______________________, _________, by the following vote:
AYES:
NOES:
ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of _________________, ________. __________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
___________________________
Elizabeth A. Mitchell, City Attorney
CONDITIONS OF APPROVAL
Short-Term Apartment Rental (STAR) 24-329, Wyatt STAR
1.0 GENERAL CONDITIONS OF APPROVAL
1.1 Within 30 days of receipt of the signed conditions of approval, the applicant shall submit to the City Planner a signed acknowledgement concurring with all conditions of approval on a form to be provided by the City, unless an extension is granted by the City Planner.
Planning
1.2 The applicant shall defend (with counsel acceptable to the City), indemnify, and hold harmless the City of San Clemente and its officers, employees, and agents from and against any claim, action, proceeding, fines, damages, expenses, and attorneys’ fees, against the City, its officers, employees, or agents to attack, set aside, void, or annul any approval or condition of approval of the City concerning this project, including but not limited to any approval or condition of approval of the City Council, Planning Commission, or City Planner, Zoning Administrator, or City employees or environmental finding. Applicant shall pay all costs upon request by the City. The City shall promptly notify the applicant of any claim, action, or proceeding concerning the project and the City shall cooperate fully in the defense of the matter at the applicant’s expense. The City reserves the right, at its own option, to choose its own attorney to represent the City, its officers, employees, and agents in the defense of the matter at the applicant’s cost. If the applicant fails to so defend the matter, the City shall have the right, at its own option, to do so and, if it does, the applicant shall promptly pay the City's full cost of the defense.
Planning
1.3 Use and development of this property shall be in substantial conformance with the approved plans, material boards and other applicable information submitted with this application, and with these conditions of approval. Any modifications to the project shall be reviewed by the City Planner in accordance with Zoning Ordinance Section 17.12.180.
Planning
1.4 The applicant shall comply with all applicable current and future provisions of the San Clemente Municipal Code, adopted ordinances, and state laws.
All
1.5 Use of the subject property shall conform to all occupancy requirements, including posting of signs related to the maximum occupancy limitations. The STAR owner shall post a copy of the house rules (including maximum number of guests and parking rules) in a conspicuous place in the STAR unit and in its advertisements and require that guests agree to fully comply therewith.
Code Comp
1.6 STAR 24-329 shall become null and void if:
there is a change of ownership as defined in the Municipal Code for STAR unit; or the STAR use is not commenced within one (1) year from the later of the date of the approval thereof. Since the use itself does not require the issuance of a building permit, the use shall not be deemed to have commended until the date the use become operational. [Section 17.12.150 A 1 of the SCMC].
Planning
1.8 Prior to operating the short-term rental, the owner shall obtain a Short-Term Lodging Unit (STLU) Operating License through the Business License Division. License issuance and renewals shall occur pursuant to Municipal Code Chapter 3.24.
Finance
4.0 PRIOR TO ISSUANCE OF BUILDING PERMITS
4.15 In the event the project valuation is $50,000 or more per Municipal Code 12.08, the applicant shall be responsible for the construction of all required frontage improvements as approved by the City Engineer including but not limited to the following:
Sidewalk, including construction of compliant sidewalk along the property frontage and around obstructions such as the drive approach to meet current City standards (2% cross fall) when adequate right-of-way exists, unless a waiver is applied for and approved by the City Manager. Since the street right-of-way along this frontage is approximately 10 feet behind the curb face, a sidewalk easement is not anticipated to be required.
Any sidewalk that is/was existing historic Ole Hanson tile immediately prior to the project shall be replaced with replica Ole Hanson tile per City Standard ST-5/5A if removed during construction.
Contractor shall replace any damaged street improvements resulting from construction activities to the satisfaction of the City Inspector.
Public Works
4.16 Technical Engineering Standards require that drive approaches are as wide as the garage door access. The property owner shall widen the drive approach to meet City Standards ST-9. (SCMC Chapter 15.36 and Sections 12.08.010, and 12.24.050) Public Works
7.0 OPERATIONAL CONDITIONS OF APPROVAL
7.15 One STAR in Unit B, on the property is authorized on the site, and may only be rented on dates when a property manager is living in Unit A on site and physically able to respond to issues that arise during a guest stay. Parking for any STAR unit is limited to the available parking on site. Unit B has two allocated tandem parking spaces. The owner and property manager shall prominently identify within its advertising and listings on short-term rental platforms that the maximum occupancy of each unit is eight guests and guests are expected to store their vehicles within two tandem parking spaces. If subsequent to the project approval the City Planner determines that parking issues are negatively affecting the project site, adjacent properties, or the surrounding street network, the applicant shall submit an amendment to STAR24-329 with a plan to address the parking and/or traffic issues. The plan may include entering into an off-site parking agreement, creating short-term parking stalls, and/or active monitoring and enforcement to manage parking. The applicant shall be responsible for implementing the parking management plan, at their expense. The amendment shall be subject to Zoning Administrator review and approval.
Planning
7.17 The owner shall prepare and submit to the City a quarterly tax return, on forms provided by the Finance and Administrative Services Department, stating the total rents charged and received and the amount of the transient occupancy tax (TOT) collected the previous quarter. Taxes shall be remitted within 30 calendar days of the end of each quarterly period as set forth in the San Clemente Municipal Code 3.24.070. The owner shall timely submit the filing whether or not the STLU was rented during the reporting period and TOT was collected. Failure to file required quarterly tax returns may result in the revocation of STAR Permit 24-329.
Finance
7.18 Unit A shall be occupied by a full-time on-site property manager, and shall not be rented to short-term tenants/guests. The owner shall be responsible for ensuring the property manager is adequately trained and qualified to address guest issues and any complaints raised from neighbors. The property manager shall be the first point-of-contact for any complaints about the condition, operation, or conduct of short-term renters and their guests.
Planning
7.19 The garage doors of Unit B shall be replaced with an automatic roll-up door prior to issuance of the Short Term Lodging Unit Operating License.
Planning
All Conditions of Approval are standard, unless indicated as follows:
Denotes a modified standard Condition of Approval.
Denotes a project specific Condition of Approval
Resolution No. 25-84 Page 2
Attachment 1
Resolution No. 25-84, Exhibit A Page 2
Resolution No. 25-84 EXHIBIT A