HomeMy WebLinkAbout2015-03-17; City Council; 21893; Discussion Direction Short Term Vacation RentalsCITY OF CARLSBAD - AGENDA BILL
AB#
MTG.
DEPT.
21,893
3-17-15
City Manager
DISCUSSION AND DIRECTION REGARDING
SHORT TERM VACATION RENTALS IN THE
CiTY OF CARLSBAD
DEPT. DIRECTOR
CITY ATTY.
CITY MGR.
RECOMMENDED ACTION:
Receive staff report regarding development of a policy to expressly allow short term vacation rentals and
establish short term vacation rental operating permit policies and procedures, hear public comment, and
provide direction.
ITEM EXPLANATION;
On June 10, 2014, City Council adopted Resolution No. 2014-119 directing staff to develop
recommendations to expressly allow short term vacation rentals and establish short term vacation rental
operating permit policies and procedures (Exhibit 2). Since that time, staff has worked with residents,
vacation rental management companies, and other interested parties to develop a draft short term
vacation rental ordinance that staff is now presenting to the City Council for review and direction. Based
on any further direction from the City Council, staff will revise the draft ordinance as necessary and
schedule it for consideration in April/May, allowing the new regulations to be in place for the 2015
summer season. Staff also recommends that should the new ordinance be adopted, it should be formally
reviewed by the City Council in early 2016 to assess its effectiveness and whether any further changes are
needed to the short term vacation rental ordinance.
Currently, short term vacation rentals are not explicitly addressed in the city's Municipal Code. The term
"short term vacation rental" has generally and historically been interpreted to mean residential dwellings
that are not occupied by the owner and are rented on a short term basis to persons seeking a vacation
stay of typically 30 days or less. Under Municipal Code Chapters 3.12 and 3.37, vacation stays of less than
30 days would require collection ofthe 10 percent transient occupancy tax (TOT) and the $1 per room
night assessment to support the Carlsbad Tourism & Business Improvement District, respectively.
Also, the city's Zoning Ordinance (Municipal Code Title 21) does not currently list "short term vacation
rental" as a specific permitted use in any zone, and therefore, the use is considered prohibited. Currently,
over 400 short term vacation rentals exist in Carlsbad and city records indicate that at least 15 businesses
maintain business licenses for short term vacation rentals and contribute TOT to the city (over $233,000
in FY 2012-13). However, as the practice is not explicitly permitted, new applicants seeking business
licenses to use residential dwellings as short term vacation rentals have been denied.
The inconsistencies in city policies and practices have created an untenable situation regarding short term
vacation rentals. Expressly allowing short term vacation rentals and requiring operating permits and
standards of operation would establish clear guidelines for property owners, staff and the public to
follow.
Public comments received have ranged from requests for a citywide ban on vacation rentals, to
restrictions in certain neighborhoods, to no regulations at all. The general consensus, however, is that
wherever short term vacation rentals are allowed, the City Council should develop clear and consistent
DEPARTMENT CONTACT: Steve Didier 760-602-2014 Steven.didier(S)carlsbadca.gov
FOR CLERK USE.
COUNCIL ACTION: APPROVED • CONTINUED TO DATE SPECIFIC •
DENIED • CONTINUED TO DATE UNKNOWN •
CONTINUED • RETURNED TO STAFF •
WITHDRAWN • OTHER - SEE MINUTES • .
AMENDED • REPORT RECEIVED
policy to take action against operators who consistently violate the permit and operating requirements.
The revised draft ordinance addresses the concerns expressed by residents to maintain the character of
residential neighborhoods (Exhibit 2).
FISCAL IMPACT:
There is no fiscal impact with the proposed action to receive staff's report, hear public comment, and
provide direction.
ENVIRONMENTAL IMPACT:
Pursuant to Public Resources Code section 21065, this action does not constitute a "project" within the
meaning of CEQA in that it has no potential to cause either a direct physical change in the environment,
or a reasonably foreseeable indirect physical change in the environment, and therefore does not require
environmental review.
EXHIBITS:
1. Draft Ordinance to establish Carlsbad Municipal Code Chapter 5.60 Short Term Vacation Rentals
2. Agenda bill dated June 10, 2014: Short Term Vacation Rentals Policy Direction and Resolution No.
2014-119
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EXHIBIT i
Chapter 5.60
SHORT-TERM VACATION RENTALS
Sections:
5.60.010 Purpose.
5.60.020 Definitions.
5.60.030 Authorized agent.
5.60.040 Permit required.
5.60.050 Obtaining and renewing a short-term vacation rental permit.
5.60.060 Operational requirements.
5.60.070 Penalties and enforcement.
5.60.080 Interpretation.
5.60.090 Constitutionality.
5.60.010 Purpose.
The purpose of this chapter is to establish regulations for short-term vacation
rentals in order to safeguard the peace, safety and generai welfare of neighborhoods within
the city of Carlsbad by minimizing negative secondary effects related to short-term
vacation rentals including excessive noise, disorderly conduct, illegal parking,
overcrowding, and excessive accumulation of refuse; and to ensure that the city is
collecting transient occupancy tax pursuant to Chapter 3.12 of this code, and the Carlsbad
Tourism and Business Improvement District assessment pursuant to Chapter 3.37 of this
code.
5.60.020 Definitions.
"Broker" means any entity or person, including but not limited to, on-line websites,
on-line travel agencies, and on-line booking agents, that offers, lists, advertises, accepts
reservations and/or collects whole or partial payment for a short-term vacation rental unit.
"Owner" means the person(s) or entity(ies) that hold(s) legal and/or equitable title
to the subject short-term vacation rental.
"Short-term vacation rental" is defined as the rental of any legally permitted
dwelling unit as that term is defined in Chapter 21.04, Section 21.04.120 of this code, or
any portion of any legally permitted dwelling unit for occupancy for dwelling, lodging or
sleeping purposes for a period of less than 30 consecutive calendar days in any residential
zoning district. Short-term vacation rentals are not permitted in dwelling units that have
deed restrictions for affordable housing purposes or have other city imposed conditions of
approval or restrictions which prohibit the use of said dwelling unit as a short-term vacation
rental as defined herein. Short-term vacation rental includes any contract or agreement
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that initially defined the rental term to be greater than 30 consecutive days and which was
subsequently amended, either orally or in writing to permit the occupant(s) ofthe owner's
short-term vacation rental to surrender the subject dwelling unit before the expiration of
the initial rental term that results in an actual rental term of less than 30 consecutive days.
5.60.030 Authorized agent.
A. An owner may in writing authorize an agent to comply with the requirements
of this chapter on behalf of the owner. The authorized agent shall submit a copy
ofthe authorization to the city duringthe initial permit and all renewal permit
process(es).
B. Notwithstanding subsection A, the owner shall not be relieved from any
personal responsibility and personal liability for noncompliance with any
applicable law, rule or regulation pertaining to the use and occupancy of the
subject short-term vacation rental unit, regardless of whether such
noncompliance was committed by the owner's authorized agent or the
occupants of the owner's short-term vacation rental unit or their guests.
5.60.040 Permit required.
A. The owner or owner's authorized agent is required to obtain a short-term
vacation rental permit and a business license from the city before renting or
advertising the availability of a short-term vacation rental unit.
B. A short-term vacation rental permit shall be valid for one calendar year from
the date of issuance and must be renewed annually thereafter.
C. Every broker shall ensure that each short-term vacation rental is registered
with the City prior to listing or advertising said property for rent.
D. The requirement for a short-term vacation rental permit shall be based on the
actual duration of the rental period and not the stated time period of the
reservation, rental, or lease agreement.
5.60.050 Obtaining and renewing a short-term vacation rental permit.
A. The owner or owner's authorized agent must submit the following information
on a short-term vacation rental permit application form provided by the city:
1. The name, address and telephone number of the owner of the short-term
vacation rental unit;
2. If applicable, the name, address and telephone number of the authorized
agent ofthe owner ofthe short-term vacation rental unit;
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3. The name, address and telephone number of the person or persons
responsible for promptly responding to all complaints regarding the short-
term vacation rental;
4. The address of the proposed short-term vacation rental unit, ali internet
listing sites for the short-term vacation rental unit and all listing numbers;
5. Acknowledgement of receipt ofthe city's "Good Neighbor" brochure;
6. Such other information as the city manager or designee deems reasonably
necessary to administer this chapter.
B. Any fee for a short-term vacation rental permit shall be established by
resolution of the City Council.
C. Any false statements or false information provided in the application for a short-
term vacation rental permit are grounds for denial of a permit(s), permit
revocation and/or imposition of penalties as outlined in this chapter.
D. A short-term vacation rental permit application may be denied if the owner has
had a prior short-term vacation rental permit revoked within the past twelve
calendar months for the same or other short-term vacation rental units.
E. Short-term vacation rental permit holders must comply with the provisions of
Carisbad Municipal Code Chapter 3.12 regarding the collection and remittance
of transient occupancy taxes and the collection and remittance of Chapter 3.37
regarding Carlsbad Tourism and Business Improvement District assessments.
Failure to comply with these provisions may result in revocation of a short-term
vacation rental permit. A broker that collects any revenue from arranging or
listing a short-term rental unit shall have primary responsibility for collecting,
paying and transmitting all revenues due to the City pursuant to this section.
5.60.060 Operational requirements.
A. The owner and/or owner's authorized agent shall use reasonably prudent
business practices to ensure that the short-term vacation rental unit is used in a
manner that complies with all applicable laws, rules and regulations pertaining
to the use and occupancy ofthe subject short-term vacation rental unit.
B. While a short-term vacation rental unit is rented, the owner or owner's
authorized agent shall be available twenty-four hours per day, seven days per
week for the purpose of responding within forty-five minutes to complaints
regarding the condition, operation, or conduct of occupants ofthe short-term
vacation rental unit or their guests.
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2 C. The owner or owner's authorized agent shall post the short-term vacation rental
permit on the exterior of the unit within plain view for the general public with
3 the 24 hour, seven day contact phone number for complaints. The permit shall
be displayed at ail times the unit is used as a short term vacation rental.
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g D. The owner or the owner's authorized agent shall, upon notification that any
occupant or guest of the short-term vacation rental unit has created
6 unreasonable noise or disturbances, engaged in disorderly conduct, or
committed violations of any applicable law, rule or regiilation pertaining to the
use and occupancy ofthe short-term vacation rent|l;&hit, respond in a timely
g and appropriate manner to immediately halt or prevent a recurrence of such
conduct. Failure of the owner or the owner's authorized agent to respond to
9 such calls or complaints regarding the condition, operation, or conduct of the
occupants and/or guests of the short-term vacation rental in a timely and
appropriate manner shall subject the owner to all adminliiative, legal and
11 equitable remedies available to the city.
12 E. The owner and/or the owner's authorized agent shall use reasonably prudent
business practices to ensure that the occupants and/or guests ofthe short-term
vacation rental unit do not create unreasonable noise or disturbances, engage
14 in disorderly conduct, or violate any applicable law, ryle or regulation pertaining
to the use and occupancy ofthe subject short-term vacation rental unit
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.|g F. No amplified or reproduced sound shall be used outside or audible from the
property line of any short-term vacation rental unit between the hours often
17 p.m. and ten a.m,
^ The owner and/or owner's authorized agent shall use reasonably prudent
.,g business practices to ensure that the short-term vacation rental unit is used for
residential purposes only.
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H. Prior to occupancy of a short-term vacation rental unit, the owner or the
owner's authorized agent shall:
22 1- Obtain the contact information ofthe renter.
Provide a copy of the "Good Neighbor" brochure containing these
23 requirements to the renter.
Require the renter to execute a formal acknowledgment that he or she
is legally responsible for compliance by all occupants ofthe short-term
25 vacation rental unit and their guests with all applicable laws, rules and
regulations pertaining to the use and occupancy of the short-term
26 vacation rental unit.
The information required in items 1 and 3 above shall be maintained by
the owner or the owner's authorized agent for a period of three years
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for the enforcement of any provision of the municipal code or any other
applicable law, rule or regulation pertaining to the use and occupancy of
the short-term vacation rental unit.
I. Trash and refuse shall not be left stored within public view, except in proper
containers for the purpose of collection by the city's authorized waste hauler on
scheduled trash collection days.
J. On-site parking shall be allowed on approved driveway, garage, and/or carport
areas only. Parking of over-sized vehicles must comply with the provisions of
Carlsbad Municipal Code section 10.40.180.
K. The city manager, or designee, shall have the authority to impose additional
conditions on the use of any given short-term vacation rental unit to ensure that
any potential secondary effects unique to the subject short-term vacation rental
unit are avoided or adequately mitigated.
L. The owner or owner's authorized agent shall post the current short-term
vacation rental permit number on or in any advertisement appearing in any
written publication or onany website that promotes the availability or existence
of a short-term vacation rental unit.
5.60.070 Penalties and enforcement.
A. Failure to comply with the conditions specified in this chapter shall constitute a
violation punishable pursuant to Chapter 1.08 or Chapter 1.10 of this code.
B. In addition to any penalties imposed pursuantto Chapters 1.08 and 1.10 of this
code, the City manager, or designee may impose additional conditions on the
use of any short-term vacation rental permit pursuant to section 5.60.060(K)
above; or suspend or revoke any short-term vacation rental permit
commensurate with the severity ofthe violation(s).
C. Except as otherwise provided, enforcement of this chapter is at the sole
discretion of the persons authorized to enforce this chapter. Nothing in this
chapter shall create a right of action in any person against the city or its agents
for damages or to compel public enforcement of this chapter against private
parties.
D. Pursuant to Subsection 1.08.010(c) of this code, each and every day during any
portion of which any violation of this code or any other ordinance of the city is
committed, continued or permitted shall be a separate offense.
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1 E. In accordance with the provisions of Carlsbad municipal code Chapter 3.36,
section 3.36.040, the owner of a short-term vacation rental may be billed for
law enforcement services when a second or subsequent police response is
3 required at the short-term vacation rental unit due to a party when the police
officer determines that continued activity is a threat to the peace, health, safety
^ or general welfare of the public.
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5.60.080 - Interpretation
This chapter shall be construed liberally in favor of regulation 's determined if
necessary and appropriate by the city manager for the public-protection and welfare
g and in order to accomplish its purpose and intent.
9 5.60.090 - Constitutionality
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If any section, subsection, sentence, clause or phrase of this chapter is for any reason
^ ^ held to be invalid, such decision shall not affect the validity of the remainipg portions
of this chapter. The city council declares that it would have adopted the chapter and
12 each section, subsection, sentence, clause or phrase thereof, irrespective ofthe fact
that any one or more sections, subsections, sentences, clauses or phrases be
declared invalid.
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EXHIBIT t
CITY OF CARLSBAD - AGENDA BILL 1
AB# 21.626 DISCUSSION AND DIRECTION REGARDING
SHORT TERM VACATION RENTALS IN THE
CITY OF CARLSBAD
DEPT. DIRECTOR
MTG. 6/10/14
DISCUSSION AND DIRECTION REGARDING
SHORT TERM VACATION RENTALS IN THE
CITY OF CARLSBAD
CITY ATTY. (1^,
DEPT. City Manager
DISCUSSION AND DIRECTION REGARDING
SHORT TERM VACATION RENTALS IN THE
CITY OF CARLSBAD CITY MGR. /^(\
RECOMMENDED ACTION:
Approve Resolution No. 2014-119 directing staff to develop recommendations to expressly allow short
term vacation rentals and establish short term vacation rental operating permit policies and procedures.
ITEM EXPLANATION:
Currently, short term vacation rentals are not explicitly addressed in the city's Municipal Code. The term
"short term vacation rental" has generally and historically been interpreted to mean residential dwellings that
are not occupied by the owner and are rented on a short term basis to persons seeking a vacation stay of
typically 30 days or less. Under Municipal Code Chapters 3.12 and 3.37, vacation stays of less than 30 days
would require collection of the 10 percent transient occupancy tax (TOT) and the $1 per room night
assessment to support the Carlsbad Tourism & Business Improvement District, respectively.
Also, the city's Zoning Ordinance (Municipal Code Title 21) does not currently list "short term vacation rental"
as a specific permitted use in any zone, and therefore, the use is considered prohibited. Currently, over 400
short term vacation rentals exist in Carlsbad and city records indicate that at least 15 businesses maintain
business licenses for short term vacation rentals and contribute TOT to the city (over $233,000 in FY 2012-13).
However, as the practice is not explicitly permitted, new applicants seeking business licenses to use residential
dwellings as short term vacation rentals have been denied.
The inconsistencies in city policies and practices has created an untenable situation regarding short term
vacation rentals. Expressly allowing short term vacation rentals and requiring operating permits and
standards of operation wouid establish clear guidelines for property owners, staff and the public to follow.
Exhibit 1 provides additional detail including the current environment in Carisbad, practices in other cities,
California Coastal Act implications, complaint history, and alternatives. Staff will return in approximately six
months with specific ordinance and policy recommendations to implement City Council's direction.
FISCAL IMPACT:
There is no fiscal impact with the proposed action to direct staff to develop recommendations to expressly
allow short term vacation rentals and establish operating permit policies and procedures.
ENVIRONMENTAL IMPACT:
Pursuant to Public Resources Code section 21065, this action does not constitute a "project" within the
meaning of CEQA in that it has no potential to cause either a direct physical change in the environment, or a
reasonably foreseeable indirect physical change in the environment, and therefore does not require
environmental review.
EXHIBITS;
1. Memorandum to City Manager dated 5/29/14: Short Term Vacation Rentals Policy Recommendation
2. Resolution No?^lfli3egarding short term vacation rental policy development
DEPARTMENT CONTACT: Steve Didier 760-602-2014 steven.didier@carlsbadca.gov
FOR CLERK USE.
COUNCIL ACTION: APPROVED CONTINUED TO DATE SPECIFIC •
DENIED ID CONTINUED TO DATE UNKNOWN •
CONTINUED • RETURNED TO STAFF •
WITHDRAWN • OTHER - SEE MINUTES •
. AMENDED • REPORT RECEIVED •
Exhibit 1 ^City of
Carlsbad
Memorandum
May 29, 2014
To: Steven Sarkozy, City Manager
From: Gary Barberio, Assistant City Manager
Via: Steve Didier, Management Analyst
Barbara Kennedy, Associate Planner
Cheryl Gerhardt, Business Improvement District Manager
Re: Short Term Vacation Rentals Policy Development
This memorandum provides detail regarding the short term vacation rental (STVR) industry in
Carlsbad, current regulations, practices in other cities, and staffs recommendation to develop
ordinance, policy and procedure changes that would expressly allow short term vacation rentals in
the City of Carisbad, require operating permits, establish operating regulations and enforcement
capabilities, and create procedures for collection of associated taxes and assessments.
1. How does the City of Carlsbad currently regulate Short Term Vacation Rentals?
Currently short term vacation rentals (STVR's) are not explicitly addressed in the city's
Municipal Code. The Municipal Code does not define or referto the term "vacation rental";
however, the term has generally and historically been interpreted to mean residential dwellings
that are not occupied by the owner and are rented on a short term basis to persons seeking a
vacation stay. "Short term" is generally considered 30 days or less, which is consistent with the
city's transient occupancy tax (TOT) and Carisbad Tourism & Business Improvement District
(CTBID) assessment regulations in Municipal Code Chapters 3.12 and 3.37, respectively. The
City's TOT regulations require a tax of 10 percent to be paid for any structure that is rented to
persons for a period of 30 consecutive days or less for the purpose of "dwelling, lodging or
sleeping." The CTBID assessment is $1 per room night. Neither payment of TOT or the CTBID
assessment, nor acquisition of a business license, would in and of itself authorize operation of a
use that is not permitted by the Municipal Code.
The Zoning Ordinance (Municipal Code Title 21) does not currently list "short term vacation
rentals" as a permitted use in any zone. The Zoning Ordinance is structured such that it only
permits those uses that are specifically listed in each zone, as well as uses determined to be
substantially similar to specifically permitted uses. While the current interpretation is that the
use is not permitted in any zone, anywhere in the city, the history of this interpretation has
been varied.
While STVR's are not currently permitted, over 400 currently exist throughout the city. City
records also indicate that at least 15 businesses maintain business licenses for STVRs and
City Manager's Department
1200 Carlsbad Village Drive I CaHsbad, CA 92008 I 760-434-28201 j Q
Short Term Vacation Rentals Policy Development May 29, 2014
Page 2
contribute TOT to the city ($233,000 in FY 2012-13). However, applicants who are currently
seeking business licenses to use residential dwellings as STVRs have been denied due to the
cit/s current zoning interpretation. There is also a concern for equity with Carisbad hotels that
routinely contribute TOT, while many unregulated short term vacation rentals do not.
2. How many complaints does the city receive about STVRs?
The city's code enforcement staff receives on average five formal complaints per year about
STVRs, typically in residential areas located near the beaches and lagoons. Key issues
associated with complaints are loud noise, crowds, parking problems, excessive trash, and
concerns forthe residential character ofthe neighborhood. Code compliance actions related to
STVRs have been resolved on a case-by-case basis, but have had inconsistent resolution from a
land use perspective. The inconsistencies in the city's land use, business license, TOT, and code
enforcement policies and practices are central to staff's recommendation to expressly allow
STVRs and require operating permits with standards of operation and enforcement capability.
Over the past few years, the city has also experienced formal complaints about several STVRs
routinely operating as special event venues for large events such as weddings, corporate
parties, and retreats. This type of use could be expressly prohibited under the operating
standards for permitted short term vacation rentals, or the city could regulate this use through
the development of separate city ordinances.
3. How does the California Coastal Commission (CCC) view STVRs?
Any amendment to a city's Zoning Ordinance to expressly limit or prohibit STVRs in the coastal
zone requires CCC approval of a Local Coastal Program (LCP) amendment. The CCC has
historically and successfully opposed attempts by other cities to prohibit/limit STVRs in the
coastal zone, contending that they provide a low-cost alternative to lodging in the coastal zone
and provide the general public with a greater opportunity for access to the beach, recreation
and coastal resources. In consideration ofthe need to quickly address the STVR concerns, staff
anticipates developing STVR policy alternatives that would not require an LCP amendment or a
lengthy CCC approval process.
4. How do other cities regulate STVRs?
Solana Beach
The City of Solana Beach allows STVRs in all residential zones throughout the city and requires
owners to apply for an operating permit and comply with operating standards. They also
require a minimum stay of 7 days and no more than 30 days. A copy ofthe operating permit
with code compliance contact information must also be posted inside of a front window and be
clearly visible. This system has worked well and provided an adequate level of operational
oversight and better means to collect TOT. Staff also contacted Solana Beach and learned that
they have had no complaints for at least a year.
Short Term Vacation Rentals Policy Development May 29, 2014
Page 3
Encinitas
Encinitas initially proposed a LCP amendment to prohibit STVRs in all residential zones. But
after lengthy opposition from the CCC the city ultimately opted for a municipal code
amendment that requires operating permits and standards of operation similar to the City of
Solana Beach. Encinitas allows STVRs in all residential zones with an operating permit for
periods of 30 days or less. They also allow STVRs in some nonresidential zones with a
conditional use permit.
Coronado
The City of Coronado LCP was approved in 1983 and prohibits STVRs for a period of less than 26
days. Short term vacation rentals are only permitted in motels, certain lodging houses, and a
multi-family residential zone in their Orange Avenue Corridor Specific Plan.
Oceanside
The City of Oceanside does not regulate STVRs. Transient occupancy tax is collected on a
voluntary basis through any real estate agencies or other licensed businesses that manage
STVRs.
5. How many STVRs are in Carlsbad and how are they managed?
Review of vacation rental industry websites and discussion with industry representatives
suggests there are over 400 short term vacation rentals in Carisbad. Short term vacation
rentals are typically managed either by the property owner or through a real estate firm
specializing in management of STVRs. Many property owners advertise through various
internet services, such as Vacation Rentals by Owner (www.vrbo.com). Others hire real estate
firms to advertise their properties and manage housekeeping and maintenance for them.
Staff has already held preliminary discussions with three representatives from a cross section of
the Carisbad STVR industry who are among the top TOT contributors for STVRs. One firm
manages the largest single number of small to medium sized STVR properties. Another
represents primarily investment owners for very high-end, upscale STVR properties. And the
third is the owner of a single, large and very unique STVR property. They shared their
perspective on the vacation rental industry in Carisbad and initial thoughts about the city's
approach to regulating STVRs. Staff will continue to coordinate with this stakeholder group and
others in the development of formal policy recommendations.
6. How would Home Owners Associations (HOA) be affected by STVR regulations?
Home Owners' Associations typically require property owners to comply with a set of Codes,
Covenants and Restrictions (CCRs) specific to the neighborhood. Most CCRs prohibit the rental
of a private residence for a period of less than 30 days. Any policies developed to regulate
STVRs within Carisbad would not override more stringent regulations already in place which
essentially prohibit STVRs within most HOAs. It is important to note that the city is not
Short Term Vacation Rentals Policy Development May 29, 2014
Page 4
responsible for enforcing neighborhood CCRs, nor do city regulations need to be consistent
with neighborhood CCRs.
7. What alternatives are available to regulate STVRs?
Options Recommended Discussion
A. Clarify that STVRs
are not allowed
anywhere
No
Would require a Zoning Ordinance revision and LCP
amendment that would likely be denied by the CCC
after a lengthy review process. Would also require
immediate enforcement action against 400+ STVRs
that are currently known to exist in Carlsbad.
B. Allow STVRs only
in certain
residential zones
No
This option would also require an LCP amendment and
Zoning Ordinance revision to clarify which zones
would allow STVRs. A lengthy CCC approval process
would also be required. May also require
enforcement action against STVRs in some zones.
Would likely result in relatively little change to the
current environment since the CCC would not approve
any restrictions in the coastal zone, where most STVRs
are located in Carisbad, and most neighborhoods
situated inland from the coast have HOAs that already
regulate STVRs, so additional regulation is not needed.
C. Expressly allow
STVRs throughout
the city and
require operating
permits and
standards of
operation
Yes
This option could be implemented locally without a
LCP amendment or CCC approval process. The
proposed method of requiring operating permits and
standards of operation has shown to be a successful
model in neighboring cities. Would be relatively easy
to implement. Requires the least amount of city
resources for success. Quickly increases TOT and
CTBID assessment revenues.
CONCLUSION
Staff estimates that it will take approximately six months to fully research and develop
recommendations that must be vetted by a variety of city departments and internal and
external stakeholders. If City Council approves, staff will begin immediately working to further
research and develop the required ordinance revisions and policy documents to carry out City
Council's direction.
' 13
Exhibit 2
1 RESOLUTION NO. 2014-119
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2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, DIRECTING STAFF TO DEVELOP RECOMMENDATIONS
TO EXPRESSLY ALLOW SHORT TERM VACATION RENTALS AND
4 ESTABLISH SHORT TERM VACATION RENTAL OPERATING PERMIT
POUCIES AND PROCEDURES.
5 "
^ WHEREAS, short term vacation rentals (STVR's) are not explicitly addressed in the city's
7
Municipal Code, and the Zoning Ordinance (C.M.C. Title 21) does not currently list "short term
vacation rental" as a permitted use in any zone; and
WHEREAS, the Zoning Ordinance is structured such that it only permits those uses that
11 are specifically listed in each zone, as well as uses determined by the City Planner to be
12 substantially similar to specifically permitted uses; and
WHEREAS, over 400 STVR's are currently known to exist throughout the city.
WHEREAS, city records indicate that at least 15 businesses maintain business licenses for
STVRs and contribute transient occupancy taxes (in excess of $233,000 in FY 2012-13) and
Carisbad Tourism & Business Improvement District (CTBID) assessments to the city; and
18 WHEREAS, the city has received formal complaints relating to the operation of STVRs in
19 Carisbad requiring code enforcement action; and
WHEREAS, staff has completed preliminary research and determined that the
inconsistencies in the city's land use, business license, TOT/CTBID, and code enforcement policies
related to STVRs have created an untenable situation.
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24 NOW, THEREFORE, BE IT RESOLVED by the City Council ofthe City of Carisbad, California,
25 as follows that:
2^ 1. The above recitations are true and correct.
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2. The City Council directs staff to develop recommendations to expressly allow short
term vacation rentals and establish short term vacation rental operating permit
policies and procedures.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting ofthe City Council ofthe City
of Carisbad on the 10th day of June 2014, by the following vote to wit:
AYES:
NOES:
Council Members Hail, Packard, Wood, Schumacher, Blackburn.
None.
ABSENT: None.
ATTEST:
J, Cit^lerk
/fc
Short Term Vacation Rentals
March 17, 2015
1
Project Team
•Gary Barberio, Assistant City Manager
•Celia Brewer, City Attorney
•Steve Didier, Management Analyst
•Cheryl Gerhardt, CTBID Manager
•Barbara Kennedy, Associate Planner
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Short Term Vacation Rentals
•June 10, 2014 City Council Presentation
•Current Environment in Carlsbad
•Public involvement
•Policy Recommendations
–Clear
–Consistent
–Enforceable
•Discuss and provide direction
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What are STVRs?
•Residential dwelling units or portion of a unit
•Rented for 30 days or less
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Current STVR Environment
•Nothing specifically in C.M.C.
•Not expressly permitted = prohibited
•Conflicting policies and practices
–No new business licenses
–No policy to allow enforcement
–But city collects TOT and CTBID assessment
•$333,000 in FY 2013-14
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Current STVR Environment
•STVRs are known to exist in Carlsbad
–About 400 STVRs (less than 1% of all units: about 45,000)
–Some managed by real estate firms
–Relatively few complaints
•Coastal Commission restricts city options
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Current STVR Environment
•Websites that enable property owners,
tenants, and occupants to rent their living
space to travelers (Airbnb, VRBO)
•Connect renters to multiple properties
•The sharing economy is growing exponentially
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Current STVR Environment
•City needs to resolve these conflicts
•Establish legal, consistent, and enforceable
policy
•It is a matter of good public policy
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Prior Council Direction
Expressly allow STVRs (June 10, 2014)
–Clear, consistent, enforceable
–Permitting requirements
–Operating requirements
–Procedures and enforcement
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Public Involvement
•Public comments at June 2014 meeting
•Draft ordinance posted on website
•Received public comments
•Met with residents, vacation rental managers
•Receive public comment and City Council
direction today
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Policy Recommendation
•Apply ordinance citywide
•STVRs exist throughout Carlsbad
•Coastal Zone
•Home owners associations have own rules
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Policy Recommendations
•Permit Requirements
–Operating permit (annual renewal)
–Business license
–Required information
•Unit address/phone number
•Complaint contact/agent contact
•Advertising locations (Airbnb, HomeAway, VRBO, etc.)
•Good Neighbor Guidelines acknowledgement
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Policy Recommendations
•Permit requirements (continued)
–Lease terms specified accurately
–False information = permit revocation
–Prior history may = denial of renewal or revocation
–Collect and remit TOT and CTBID fee
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Policy Recommendations
•Operating Requirements
–Comply with use laws/residential only
–Renter must receive Good Neighbor Guidelines
–Permit posted in plain view
–24/7 phone number/45 minute response
–Owner/agent must take action
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Policy Recommendations
•Operating Requirements (continued)
–No trash problems
–On-site parking in designated areas only
–No amplified sound outside property (10p-10a)
–Maintain 3 years of records
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Policy Recommendations
•Procedures & Enforcement
–STVR permit processed with business license
–Ramp up period for public communications
–GIS mapping for tracking and enforcement
–Collect TOT and CTBID fee
–Impose penalties and enforce
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Staff Recommendations
•Receive presentation and public comment
•Provide further direction or revisions
•Schedule new ordinance for City Council
consideration in April/May
•Policy in place for summer 2015
•Return to City Council in one year with update
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Questions/Discussion/Direction
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!^
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