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HomeMy WebLinkAbout2015-04-21; City Council; 21942; Adding Chapter 5.60 Short-Term Vacation RentalsCITY OF CARLSBAD - AGENDA BILL 12 AB# 21,942 INTRODUCE ORDINANCE TO AMEND THE CARSLBAD MUNICIPAL CODE BY ADDING CHAPTER 5.60 SHORT-TERM VACATION RENTALS, ESTABLISHING REGULATIONS GOVERNING SHORT-TERM VACATION RENTALS DEPT.DIRECTOR M^yf MTG. 4/21/15 INTRODUCE ORDINANCE TO AMEND THE CARSLBAD MUNICIPAL CODE BY ADDING CHAPTER 5.60 SHORT-TERM VACATION RENTALS, ESTABLISHING REGULATIONS GOVERNING SHORT-TERM VACATION RENTALS CITY ATTY. ^T^/ DEPT. City Manager INTRODUCE ORDINANCE TO AMEND THE CARSLBAD MUNICIPAL CODE BY ADDING CHAPTER 5.60 SHORT-TERM VACATION RENTALS, ESTABLISHING REGULATIONS GOVERNING SHORT-TERM VACATION RENTALS CITY MGR. (J ' RECOMMENDED ACTION; Introduce Ordinance No. CS-272 to amend the Carlsbad Municipal Code by adding chapter 5.60 Short- term Vacation Rentals (STVR), establishing regulations governing short-term vacation rentals (Exhibit 1). 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. 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. A draft ordinance was presented to the City Council for review and discussion on March 17, 2015 (Exhibit 2). The City Council received public comment and provided direction to staff regarding revisions to the draft ordinance. The following revisions were directed by the City Council and have been incorporated into the proposed ordinance for introduction. A redlined version of the Ordinance is also included as Exhibit 4. 1. Add a provision specifying that any city regulation allowing for short-term vacation rentals would not supersede home owners association regulations that prohibit short-term vacation rentals 2. Specify that the contact person must be a "local" contact for responding to complaints 3. Include a restriction on the number of occupants per dwelling unit (Recommendation: two people per bedroom or studio plus one person per unit) 4. Strengthen the city's enforcement ability by establishing that violations of the policy would be deemed a misdemeanor City Council also requested that staff provide short-term vacation rental geographic boundary options for City Council consideration that are more restrictive than allowing STVRs citywide. STVR geographic boundary options include the following: OPTION 1: Allow short-term vacation rentals citywide (Recommended). OPTION 2: Allow short-term vacation rentals only in the Coastal Zone and in the area west of El Camino Real and in the La Costa Resort and Spa Master Plan area (to include the Balboa and Cortez buildings.) 50% of the city geographically. DEPARTMENT CONTACT: Steve Didier 760-602-2014 steven.didier@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 • OPTION 3: Allow short-term vacation rentals only in the Coastal Zone and in the area west of Interstate 5 and in the La Costa Resort and Spa Master Plan area (to include the Balboa and Cortez buildings.) 39% of the city geographically. OPTION 4: Allow short-term vacation rentals only in the Coastal Zone. 37% of the city geographically. After conducting additional research, staff is still recommending that the City Council establish an ordinance that allows for STVRs citywide, rather than ban them or restrict them to certain geographic areas of the city. Additional research included directly contacting six California agencies with some sort of ban on STVRs in residential areas. Notwithstanding existing ordinances banning STVRs, all six agencies have numerous vacation rentals in residential neighborhoods currently advertised on internet sites such as VRBO.com or airbnb.com (Exhibit 3). Some of these agencies are now considering permitting and regulating STVRs in response to the exponential growth in the internet sharing economy and/or California Coastal Commission concerns about overly-restrictive STVR ordinances established decades earlier. Bans have not been shown to work and tend to push the issue underground making it more difficult to track, regulate and enforce. Staff is recommending introducing Ordinance No.03-272 to amend the Carlsbad Municipal Code by adding chapter 5.60 Short-term Vacation Rentals, establishing regulations governing short-term vacation rentals and allowing for them on a citywide basis. Staff is also recommending that the new ordinance be formally reviewed by City Council in early 2016 to assess its effectiveness and determine if any additional regulations or changes are needed to effectively manage short-term vacation rentals in the city. FISCAL IMPACT: Under Municipal Code Chapters 3.12 and 3.37, STVR owners/property managers would be required to pay the ten percent transient occupancy tax (TOT) and the one dollar per room night assessment to support the Carlsbad Tourism & Business Improvement District (CTBID), respectively. City records indicate that at least 15 businesses currently maintain business licenses for operating or managing short- term vacation rentals. These businesses already contribute TOT to the city (over $330,000 in FY 2013-14). Under the proposed ordinance, the remaining STVR owners/property managers would be required to obtain business licenses and STVR permits and begin remitting TOT and the CTBID assessment, which would generate additional revenue for the city. 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 No. CS-272 to establish Carlsbad Municipal Code Chapter 5.60 2. Agenda bill dated March 17, 2015: Short-term Vacation Rental Discussion and Direction 3. List of Six California Agencies with Some Form of STVR Ban in Residential Areas 4. Redlined Draft Ordinance Showing Revisions Since March 17, 2015 City Council Meeting Exhibit 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE NO. 2015-272 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, TO AMEND THE CARLSBAD MUNICIPAL CODE BY ADDING CHAPTER 5.60 SHORT-TERM VACATION RENTALS, ESTABLISHING REGULATIONS GOVERNING SHORT-TERM VACATION RENTALS. CASE NAME: SHORT-TERM VACATION RENTALS WHEREAS, short-term vacation rentals (STVRs) are not explicitly addressed in the Carlsbad Municipal Code; and WHEREAS, over 400 STVRs are known to exist throughout the city; and WHEREAS, there are inconsistencies in the city's land use, business license, transient occupancy taxes/Carlsbad Tourism & Business Improvement District (CTBID) assessments, and code enforcement polices related to STVRs; and WHEREAS, the City Council desires to protect neighborhoods from any adverse effects resulting from the operation of STVRs and ensure that the city collects transient occupancy taxes/Carlsbad Tourism & Business Improvement District (CTBID) assessments from STVRs; and WHEREAS, on June 10, 2014, the City Council directed staff to develop recommendations to expressly allow STVRs and establish consistent and enforceable STVR operating permit policies and procedures for regulating STVRs; and WHEREAS, on March 17, 2015, the City Council reviewed a draft ordinance, received public comment, and provided direction to staff to revise the draft ordinance; and WHEREAS, on April 21, 2015, the City Council introduced the ordinance and directed staff to return to City Council in early 2016 to assess its effectiveness and determine 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 if any additional regulations or changes are needed to effectively manage short-term vacation rentals in the city. NOW, THEREFORE, the City Council of the City of Carlsbad does ordain as follows: SECTION I: That Title 5 - BUSINESS LICENSES AND REGULATIONS of the Carlsbad Municipal Code is amended with the addition of Chapter 5.60 as follows: Chapter 5.60 SHORT-TERM VACATION RENTALS Sections: 5.60.010 Purpose. 5.60.020 Definitions. 5.60.030 Short-term vacation rentals. 5.60.040 Authorized agent. 5.60.050 Permit required. 5.60.060 Obtaining and renewing a short-term vacation rental permit. 5.60.070 Operational requirements. 5.60.080 Penalties and enforcement. 5.60.090 Interpretation. 5.60.100 Constitutionality. 5.60.010 Purpose. A. The purpose of this chapter is to establish regulations for short-term vacation rentals in order to safeguard the peace, safety and general 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. B. This chapter is not intended to provide any owner of residential property with the right or privilege to violate any deed restrictions or private conditions, covenants and restrictions applicable to the owner's property that may prohibit the use of such owner's residential property for short-term vacation rental purposes as defined in this chapter. Short-term vacation rentals are not permitted in dwelling units that have deed restrictions for affordable housing 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 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. Short-term vacation rental includes any contract or agreement 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) of the 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 Short-term vacation rentals. Short-term vacation rentals which comply with the requirements of this Chapter are permitted citywide. 5.60.040 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 of the authorization to the city during the 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. // // 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5.60.050 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. 5.60.060 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 of the owner of the short-term vacation rental unit. 3. The name, address and telephone number of a local contact person who 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 of the short-term vacation rental unit or their guests. 4. The address of the proposed short-term vacation rental unit, all internet listing sites for the short-term vacation rental unit and all listing numbers. 5. The number of bedrooms in the short-term vacation rental unit. 6. Acknowledgement of receipt of the city's "Good Neighbor" brochure. 7. 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. 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 Carlsbad 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. 5.60.070 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 of the subject short-term vacation rental unit. B. While a short-term vacation rental unit is rented, a local contact person 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 of the short-term vacation rental unit or their guests. 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 the 24 hour, seven day local contact phone number for complaints. The permit shall be displayed at all times the unit is used as a short-term vacation rental. 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 unreasonable noise or disturbances, engaged in disorderly conduct, or committed violations of any applicable law, rule or regulation pertaining to the use and occupancy of the short-term vacation rental unit, respond in a timely 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 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 1 appropriate manner shall subject the owner to all administrative, legal and 2 equitable remedies available to the city. 3 E. The owner and/or the owner's authorized agent shall use reasonably prudent business practices to ensure that the occupants and/or guests of the short-term ^ vacation rental unit do not create unreasonable noise or disturbances, engage in disorderly conduct, or violate any applicable law, rule or regulation pertaining to the use and occupancy of the subject short-term vacation rental unit. 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 g p.m. and ten a.m. 10 11 9 G. 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 for residential purposes only. 13 16 19 H. Prior to occupancy of a short-term vacation rental unit, the owner or the 12 owner's authorized agent shall 1. Obtain the contact information of the renter. 2. Provide a copy of the "Good Neighbor" brochure containing these 14 requirements to the renter, Require the renter to execute a formal acknowledgment that he or she 15 is legally responsible for compliance by all occupants of the short-term vacation rental unit and their guests with all applicable laws, rules and regulations pertaining to the use and occupancy of the short-term 17 vacation rental unit. 4. 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 and be made available upon request to any officer of the city responsible for the enforcement of any provision of the municipal code or any other 20 applicable law, rule or regulation pertaining to the use and occupancy of the short-term vacation rental unit 21 22 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 23 scheduled trash collection days, J. On-site parking shall be allowed on approved driveway, garage, and/or carport 25 areas only. Parking of over-sized vehicles must comply with the provisions of Carlsbad Municipal Code section 10.40.180 26 2^ ... The number of occupants allowed to occupy any given short-term vacation rental unit shall be limited to two people per bedroom or studio plus one person 28 per unit, 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 L. 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. M. 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 on any website that promotes the availability or existence of a short-term vacation rental unit. 5.60.080 Penalties and enforcement. A. Any person violating any of the provisions of this chapter shall be deemed guilty of a misdemeanor punishable pursuant to Chapter 1.08 or Chapter 1.10 of this code. B. In addition to any penalties imposed pursuant to 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 of the 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. 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 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. 5.60.090 - Interpretation This chapter shall be construed liberally in favor of regulation as determined if necessary and appropriate by the city manager for the public protection and welfare and in order to accomplish its purpose and intent. 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5.60.100 - Constitutionality 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 remaining portions of this chapter. The city council declares that it would have adopted the chapter and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid. Exhibit 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE NO. CS-272 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, TO AMEND THE CARLSBAD MUNICIPAL CODE BY ADDING CHAPTER 5.60 SHORT-TERM VACATION RENTALS, ESTABLISHING REGULATIONS GOVERNING SHORT-TERM VACATION RENTALS. CASE NAME: SHORT-TERM VACATION RENTALS WHEREAS, short-term vacation rentals (STVRs) are not explicitly addressed in the Carlsbad Municipal Code; and WHEREAS, over 400 STVRs are known to exist throughout the city; and WHEREAS, there are inconsistencies in the city's land use, business license, transient occupancy taxes/Carlsbad Tourism & Business Improvement District (CTBID) assessments, and code enforcement polices related to STVRs; and WHEREAS, the City Council desires to protect neighborhoods from any adverse effects resulting from the operation of STVRs and ensure that the city collects transient occupancy taxes/Carlsbad Tourism & Business Improvement District (CTBID) assessments from STVRs; and WHEREAS, on June 10, 2014, the City Council directed staff to develop recommendations to expressly allow STVRs and establish consistent and enforceable STVR operating permit policies and procedures for regulating STVRs; and WHEREAS, on March 17, 2015, the City Council reviewed a draft ordinance, received public comment, and provided direction to staff to revise the draft ordinance; and WHEREAS, on April 21, 2015, the City Council introduced the ordinance and directed staff to return to City Council in early 2016 to assess its effectiveness and determine 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 if any additional regulations or changes are needed to effectively manage short-term vacation rentals in the city. NOW, THEREFORE, the City Council of the City of Carlsbad does ordain as follows: SECTION I: That Titie 5 - BUSINESS LICENSES AND REGULATIONS of the Carlsbad Municipal Code is amended with the addition of Chapter 5.60 as follows: Chapter 5.60 SHORT-TERM VACATION RENTALS Sections: 5.60.010 Purpose. 5.60.020 Definitions. 5.60.030 Short-term vacation rentals. 5.60.040 Authorized agent. 5.60.050 Permit required. 5.60.060 Obtaining and renewing a short-term vacation rental permit. 5.60.070 Operational requirements. 5.60.080 Penalties and enforcement. 5.60.090 Interpretation. 5.60.100 Constitutionality. 5.60.010 Purpose. A. The purpose of this chapter is to establish regulations for short-term vacation rentals in order to safeguard the peace, safety and general 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. B. This chapter is not intended to provide any owner of residential property with the right or privilege to violate any deed restrictions or private conditions, covenants and restrictions applicable to the owner's property that may prohibit the use of such owner's residential property for short-term vacation rental purposes as defined in this chapter. Short-term vacation rentals are not permitted in dwelling units that have deed restrictions for affordable housing 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 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. Short-term vacation rental includes any contract or agreement 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) of the 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 Short-term vacation rentals. Short-term vacation rentals which comply with the requirements of this Chapter are permitted only in the coastal zone. 5.60.040 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 of the authorization to the city during the 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. // // 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5.60.050 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. 5.60.060 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 of the owner of the short-term vacation rental unit. 3. The name, address and telephone number of a local contact person who 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 of the short-term vacation rental unit or their guests. 4. The address of the proposed short-term vacation rental unit, all internet listing sites for the short-term vacation rental unit and all listing numbers. 5. The number of bedrooms in the short-term vacation rental unit. 6. Acknowledgement of receipt of the city's "Good Neighbor" brochure. 7. 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. 1 2 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 3 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. 10 E. Short-term vacation rental permit holders must comply with the provisions of Carlsbad Municipal Code Chapter 3.12 regarding the collection and remittance g of transient occupancy taxes and the collection and remittance of Chapter 3.37 regarding Carlsbad Tourism and Business Improvement District assessments. 9 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, 11 paying and transmitting all revenues due to the City pursuant to this section. 12 5.60.070 Operational requirements. 13 The owner and/or owner's authorized agent shall use reasonably prudent 14 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 15 to the use and occupancy of the subject short-term vacation rental unit. 16 B. While a short-term vacation rental unit is rented, a local contact person shall be 17 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 of the short-term vacation rental unit or their guests. 21 20 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 the 24 hour, seven day local contact phone number for complaints. The permit 22 shall be displayed at all times the unit is used as a short-term vacation rental. 23 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 unreasonable noise or disturbances, engaged in disorderly conduct, or 25 committed violations of any applicable law, rule or regulation pertaining to the use and occupancy of the short-term vacation rental unit, respond in a timely 26 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 such calls or complaints regarding the condition, operation, or conduct of the 28 occupants and/or guests of the short-term vacation rental in a timely and 24 27 1 appropriate manner shall subject the owner to all administrative, legal and 2 equitable remedies available to the city. 3 E. The owner and/or the owner's authorized agent shall use reasonably prudent business practices to ensure that the occupants and/or guests of the short-term ^ vacation rental unit do not create unreasonable noise or disturbances, engage in disorderly conduct, or violate any applicable law, rule or regulation pertaining to the use and occupancy of the subject short-term vacation rental unit. 7 10 11 13 16 26 27 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 g p.m. and ten a.m. 9 G. 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 for residential purposes only. Prior to occupancy of a short-term vacation rental unit, the owner or the 12 owner's authorized agent shall: 1. Obtain the contact information of the renter. 2. Provide a copy of the "Good Neighbor" brochure containing these 14 requirements to the renter. Require the renter to execute a formal acknowledgment that he or she 15 is legally responsible for compliance by all occupants of the short-term vacation rental unit and their guests with all applicable laws, rules and regulations pertaining to the use and occupancy of the short-term 17 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 .|g and be made available upon request to any officer of the city responsible for the enforcement of any provision of the municipal code or any other 20 applicable law, rule or regulation pertaining to the use and occupancy of the short-term vacation rental unit. 21 22 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 23 scheduled trash collection days. • On-site parking shall be allowed on approved driveway, garage, and/or carport 25 areas only. Parking of over-sized vehicles must comply with the provisions of Carlsbad Municipal Code section 10.40.180. K. The number of occupants allowed to occupy any given short-term vacation rental unit shall be limited to two people per bedroom or studio plus one person 28 per unit. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 L. 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. M. 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 on any website that promotes the availability or existence of a short-term vacation rental unit. 5.60.080 Penalties and enforcement. A. Any person violating any of the provisions of this chapter shall be deemed guilty of a misdemeanor punishable pursuant to Chapter 1.08 or Chapter 1.10 of this code. B. In addition to any penalties imposed pursuant to 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 of the 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. 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 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. 5.60.090 - Interpretation This chapter shall be construed liberally in favor of regulation as determined if necessary and appropriate by the city manager for the public protection and welfare and in order to accomplish its purpose and intent. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5.60.100 - Constitutionality 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 remaining portions of this chapter. The city council declares that it would have adopted the chapter and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid. // // // // // // // // // // // // // // // // // // // // // 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption, and the City Clerk shall certify to the adoption of this ordinance and cause the full text of the ordinance or a summary of the ordinance prepared by the City Attorney to be published at least once in a newspaper of general circulation in the City of Carlsbad within fifteen days after its adoption. INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City Council on the 21st day of April 2015, and thereafter. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the day of , 2015, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: APPROVED AS TO FORM AND LEGALITY CELIA A. BREWER, City Attorney MATT HALL, Mayor ATTEST: BARBRA ENGLESON, City Clerk (SEAL) Exhibit 2 CITY OF CARLSBAD - AGENDA BILL AB# MTG. DEPT. 21,893 3-17-15 City IVIanager DISCUSSION AND DIREaiON REGARDING SHORT TERM VACATION RENTALS IN THE CITY OF CARLSBAD DEPT.DIRECrOR CITY ATTY. CITY MGR. RECOMMENDED AaiON: 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: j 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 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 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 • . ll 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 EXHIBIT [ 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 retttal 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 chapteif|?|j| establish i^^gg^lations for short-term vacation rentals in order to safeguard the peaC^^^ty^jod generM^elfare of neighborhoods within the city of Carlsbad by minimizing ^ative Secpndary'«Pects related to short-term vacation rentals including excessive"."/loise^ dflsiorderly conduct, illegal parking, overcrowding, and e)^$ssfve'3^umulatl^«f> «if refuse; und to ensure that the city is collecting transient o^upancy tdxpursuant to Chapter 3.12 of this code, and the Carlsbad Tourism and Business Improvement District assessment pursuant to Chapter 3.37 of this code. " 7 5.60.0ZQ Deffnifibns. ^'JBroker" means afiy entity^Qif person, including but not limited to, on-line websites, on-line ttavel agencies, aftd on-line'booking agents, that offers, lists, advertises, accepts reservationsland/or collects whole or partial payment for a short-term vacation rental unit. "Owner" tftean^the person(s) or entity(ies) that hold(s) legal and/or equitable titie to the subject shorir-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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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) of the 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 of the authorization to the city during the initial perrpitand all renewal permit process(es). I,-".'rVr'r^.".'. B. Notwithstanding subsection A, the owner sfttlfl fti^^ be relieved from any personal responsibility and personal liability for ntmcompliance with any applicable law, rule or regulation pertaNitg to the use eind 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 Vacationf^ntal 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 fronri the city before renting or advertising the avaJfability of a sh0ft-term vacation rental unit. B. A short^erm vacatio<^ rental permit shall be valid for one calendar year from the date of issuance £H>(f must be renewed annually thereafter. C. Every broker shaW ensure that each short-term vacation rental is registered with the t3ty priorto listing or advertising said property for rent. D. The requirement for a short-term vacation rental permit shall be based on the actual duratioir.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 of the owner of the short-term vacation rental unit; 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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, all internet listing sites for the short-term vacation rental unit and all listing numbers; 5. Acknowledgement of receipt of the city's "Good Neighbor" brochure; 6. Such other information as the city manager or designee deems reasonably necessary to administer this chapter. j :. B. Any fee for a short-term vacation rental permit sh^H be established by resolution of the City Council. C. Any false statements or false information provided in the applicatlonfor a short- term vacation rental permit are gr£»unds foK^denial of a permlt(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 reniaf 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 Carlsbad Municipal Code Chapter 3^12 regarding the collection and remittance of transient occupancy taxes and the collection and remittance of Chapter 3.37 regarding CaHisljad Tourism anrf Business Improvement District assessments. Failure to compfy 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 reqtn'rements. 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 of the 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 of the short-term vacation rental unit or their guests. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 the 24 hour, seven day contact phone number for complaints. The permit shall be displayed at all times the unit is used as a short term vacation rental. 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 unreasonable noise or disturbances, engaged in disorderly conduct, or committed violations of any applicable law, rule or regulation pertaining to the use and occupancy of the short-term vacation rental: unit, respond in a timely and appropriate manner to immediately halt or prevent a recurrence of such conduct. Failure of the owner or the owner's 9tJth<^«ed agent to respond to such calls or complaints regarding the cortdition, operation, or conduct of the occupants and/or guests of the short-term vacation rlnlal in a timely and appropriate manner shall subject owner to all adminlistirative, legal and equitable remedies available to the cfty. E. The owner and/or the owner's authorized agent shall use reasonably prudent business practices to ens?^j^|t the occupants and/or guests of the short-term vacation rental unit do na%r#i|eiinreasonafote noise or disturbances, engage in disorderly conduct, or vic^ate any applicable law^rule or regulation pertaining to the use and occupancy of the subject short-term vacation rental unit. F. No ampli^d or reproduced sound shall be used outside or audible from the property fne of any ^hort-term vScation rental unit between the hours of ten p.m. and ten a.m. G. The owner and/or: owner's authorized agent shall use reasonably prudent business practices %ensure that the short-term vacation rental unit is used for residential purposes only. H. Prior to occupancy of a short-term vacation rental unit, the owner or the owner's authorized agent shall: 1. Obtain the contact information of the renter. 2. Provide a copy of the "Good Neighbor" brochure containing these requirements to the renter. 3. Require the renter to execute a formal acknowledgment that he or she is legally responsible for compliance by all occupants of the short-term vacation rental unit and their guests with all applicable laws, rules and regulations pertaining to the use and occupancy of the short-term vacation rental unit. 4. 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 and be made available upon request to any officer of the city responsible fe 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 J. K. 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. 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. 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. L. The city manager, or designee, shall have tht^jatitfiii^ty to impose additional conditions on the use of any given short-term Vacation Njpal unit to ensure that any potential secondary effects unique.tpithe subject short^t^m vacation rental unit are avoided or adequately mitiga^d. The owner or owner's authorized a^ent shaH: post the current short-term vacation rental permit number on or in a,t% advertisement appearing in any written publication or oni^y website that ^riamotes the availability or existence of a short-term vacation rentaf Shjt. 5.60.070 Penalties and ettfbriiement. 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 pursuant to Chapters 1.08 and 1.10 of this Code, the City manager, or designee may impose additional conditions on the use of any short-terfn 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 of the violation(s). C. Excepti.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. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 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. 5.60.080 - Interpretation This chapter shall be construed liberally in favor of regulation as determined if necessary and appropriate by the city manager for the puhte^protection and welfare and in order to accomplish its purpose and intent. 5.60.090 - Constitutionality If any section, subsection, sentence, clause^ol phrase of this chapter te for any reason held to be invalid, such decision shall not affect the val^ty of the remising portions of this chapter. The city council declares thatit would hii^^ adopted the Chapter and each section, subsection, sentence, clause or phiaseitfiereof, irrespective of the fact that any one or more sections, sttbsections, sentences, clauses or phrases be declared invalid. EXHIBIT t CITY OF CARLSBAD - AGENDA BILL AB# 21.626 DISCUSSION AND DIRECTION REGARDING SHORT TERM VACATION RENTALS IN THE CITY OF CARLSBAD DBPT. DIRECTOR MTG. 6/10/14 DISCUSSION AND DIRECTION REGARDING SHORT TERM VACATION RENTALS IN THE CITY OF CARLSBAD CITY ATTY. OA, DEPT. City Manager DISCUSSION AND DIRECTION REGARDING SHORT TERM VACATION RENTALS IN THE CITY OF CARLSBAD CITY MGR. M\ 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 Titie 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 expiicitiy 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 would establish clear guidelines for property owners, staff and the public to follow. Exhibit 1 provides additional detail including the current environment in Carlsbad, 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?^^^^^^egarding 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 SPEOFIC • DENIED • CONTINUED TO DATE UNKNOWN • CONTINUED • RETURNED TO STAFF • wnrHDRAWN • OTHER - SEE MINUTES • AMENDED • REPORT RECEIVED • Exhibit I ^^"cityof 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 Carlsbad, 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 refer to 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 cit/s transient occupancy tax (TOT) and Carlsbad 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 Carisbad Village Drive I Carlsbad, CA 92008 I 760-434-28201 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 city's current zoning interpretation. There is also a concern for equity with Carlsbad 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 for the residential character of the 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 staffs 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 of the 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 of the 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 contaaed 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 Carlsbad. 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 Carlsbad 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 Recdmmended; 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 Carlsbad, 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 O -2-. Exhibit 2 1 RESOLUTION NO. 2014-119 3 8 9 10 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 POLICIES AND PROCEDURES. 5 ^ WHEREAS, short term vacation rentals (STVR's) are not expiicitiy addressed In the city's 7 Municipal Code, and the Zoning Ordinance (CM.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 13 WHEREAS, over 400 STVR's are currently known to exist throughout the city. 14 WHEREAS, city records indicate that at least 15 businesses maintain business licenses for 15 STVRs and contribute transient occupancy taxes (in excess of $233,000 in FY 2012-13) and 16 2^ 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 Carisbad requiring code enforcement action; and 20 WHEREAS, staff has completed preliminary research and determined that the 21 inconsistencies in the city's land use, business license, TOT/CTBID, and code enforcement policies 22 related to STVRs have created an untenable situation. 23 24 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carisbad, California, 25 as follows that: 26 1. The above recitations are true and correct. 27 28 H 1 2 3 4 5 // 6 // 7 // 8 // 9 // 10 // 11 12 // 13 // 14 // 15 // 16 // 17 // 18 19 // 20 // 21 // 22 // 23 24 25 26 27 28 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. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carisbad on the 10th day of June 2014, by the following vote to wit: AYES: NOES: Council Members Hall, Packard, Wood, Schumacher, Blackburn. None. ABSENT: None. ATTEST: BARB/MhAi£NGLESON, Cit^lerk IC^LV^-' . Q. V Exhibit 3 Six California Agencies with Some Form of STVR Ban in Residential Areas City/County Are STVRs in residential areas advertised on internet sites despite the ban? (VRBO.com; airbnb.com)* Agency's Current Position on STVRs Hermosa Beach Yes; 156 advertised Similar to Carisbad where code does not explicitly prohibit STVRs in residential zones; past practice has been to deny them, yet they exist. No changes planned. Huntington Beach Yes; 145 advertised Council directed staff in 2014 to evaluate legalizing STVRs; Council study session scheduled for May 2015 Coronado Yes; 332 advertised Coastal Commission would like to revise Coronado's regulations. Carmel by the Sea Yes; 50 advertised w/in city limits: 170 listed outside city limits No changes planned; however neighboring city's allow STVRs; Monterey County is revisiting policy with Coastal Commission Napa County Yes, but very few in unincorporated county. 365 STVRs listed in City of Napa and surrounding cities. 99% of unincorporated county is agricultural; STVRs are not considered an issue in unincorporated areas City of San Luis Obispo Yes, 90-100 listed, hosted and non- hosted rentals Recently approved policy allows hosted STVRs, meaning the owner must also occupy the unit; permit required. "Number of advertised rentals was estimated at of time of review and priorto publishing of this report. 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit 4: Redlined version showing revisions since March 17*^ Council Meeting 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. A. The purpose of this chapter is to establish regulations for short-term vacation rentals in order to safeguard the peace, safety and general 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. B. This chapter is not intended to provide any owner of residential property with the right or privilege to violate any deed restrictions or private conditions, covenants and restrictions applicable to the owner's property that may prohibit the use of such owner's residential property for short-term vacation rental purposes as defined in this chapter. 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. 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. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 "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 daysin any rosidontial zoning district. Short-term vacation rental includes any contract or agreement 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) of the 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 Short-term vacation rentals. Short-term vacation rentals which comply with, permitted citywide. requirements of this Chapter are 5.60.040 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 of the authorization to the city during the 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. 5.60.050 Permit requiret 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. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 5.60.060 Obtaining and renewing a short-term vacation rental permit. A. D. E. 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 of the owner of the short-term vacation rental unit; 3. The name, address and telephone number of a local contact person who 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 of the short-term vacation rental unit or their guests; tho person or persons rosponsiblo for promptly responding to all comptaints regarding the short term vacation rental; 4. The address of the proposed short-term vacation rental unit, all internet listing sites for the short-term vacation rental unit and all listing numbers; 5. The number of bedrooms in the short-term vacation rental unit; 6. Acknowledgement of receipt of the city's "Good Neighbor" brochure; 7. 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. 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. 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. Short-term vacation rental permit holders must comply with the provisions of Carlsbad Municipal Code Chapter 3.12 regarding the collection and remittance 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 5.60.070 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 of the subject short-term vacation rental unit. B. While a short-term vacation rental unit is rented, a local contact person 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 of the short-term vacation rental unit or their guests. 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 the 24 hour, seven day local contact phone number for complaints. The permit shall be displayed at all times the unit is used as a short term vacation rental. 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 unreasonable noise or disturbances, engaged in disorderly conduct, or committed violations of any applicable law, rule or regulation pertaining to the use and occupancy of the short-term vacation rental unit, respond in a timely 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 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 administrative, legal and equitable remedies available to the city. E. The owner and/or the owner's authorized agent shall use reasonably prudent business practices to ensure that the occupants and/or guests of the short-term vacation rental unit do not create unreasonable noise or disturbances, engage in disorderly conduct, or violate any applicable law, rule or regulation pertaining to the use and occupancy of the subject short-term vacation rental unit. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 F. H. J. K. L. M. 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 p.m. and ten a.m. 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 for residential purposes only. Prior to occupancy of a short-term vacation rental unit, the owner or the owner's authorized agent shall: 1. Obtain the contact information of the renter. 2. Provide a copy of the "Good Neighbor" brochure containing these requirements to the renter. 3. Require the renter to execute a formal acknowledgment that he or she is legally responsible for compliance by all occupants of the short-term vacation rental unit and their guests with all applicable laws, rules and regulations pertaining to the use and occupancy of the short-term vacation rental unit. 4. 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 and be made available upon request to any officer of the city responsible 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. 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. 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. The number of occupants allowed to occupy any given short-term vacation rental unit shall be limited to two people per bedroom or studio plus one person per unit. 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. 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 written publication or on any website that promotes the availability or existence of a short-term vacation rental unit. 5.60.080 Penalties and enforcement. A. B. Any person violating any of the provisions of this chapter shall be deemed guilty of a misdemeanor punishable pursuant to Chapter 1.08 or Chapter 1.10 of this code. In addition to any penalties imposed pursuant to 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 of the violation(s). 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. 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 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. 5.60.090 - Interpretation This chapter shall be construed liberally in favor of regulation as determined if necessary and appropriate by the city manager for the public protection and welfare and in order to accomplish its purpose and intent. 5.60.100 - Constitutionality 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 remaining portions of this chapter. The city council declares that it would have adopted the chapter and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid. 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 4/20/2015 V3I Gmail - Neighborhood short Term Vacation rental ^^fSlOV^'^ ("Z-^ ^ I I Joey Kratcoski <jojodancerjoey@gmail.com> Neighborhood short Term Vacation rental 2 messages Dana Taylor <danataylor2001@yahoo.com> Mon. Apr 20, 2015 at 10:47 AM Reply-To: Dana Taylor <danataylor2001@yahoo.Gom> Cc: Joey Kratcoski <jojodancerjoey@gmail.com> Dear Mayor Hall and Members of the Council, I would like to introduce myself. My name is Dana Taylor and I reside at 1306 Pine Ave., Carlsbad. My family has owned mobile home parks in Florida, Arizona and currently in Oceanside California since 1970. I understand income property ownership and management. So I speak to you with a degree of experience both good and bad. Over the years I have come to be very proud of our properties. We work hard to keep our properties and residents happy. Our home on Pine Ave. is very quaint and quiet, truly a jewel in the neighborhood. We invited Lorraine Wood to our home last year and it was appreciated by my partner Joey Kratcoski and me that she took the time to visit us and view the terrible mess that Mr. Fischbach built next door to us. Before you vote on the resolution to have short term vacation rentals in our neighborhood I would like to invite all members and Mayor Hall to our lovely home to view in person what might possibily happened if the resolution is passed. My phone number is (760) 696-0951 Joey's (760)729-6913 Please if the resolution has to be passed I would ask that you keep the rentals in the costal area zone. Sincerely, Dana Taylor 1306 Pine Ave. Carlsbad, Ca. 92008 Joey Kratcoski <jojodancer|oey@gmail.com> Mon. Apr 20, 2015 at 11:11 AM To: William Bowden <w_bowden@yahoo.com> (Quoted text hidden] https://mail.google.com/rnail/u/0/?ui=2&ik=b2e593b55c&view=pt&search=inb^^^ April 6, 2015 All Receive - Agenda Item # Jo^ Forthe Information of the: The Beach Homeowners Association CITY COUNCIL Carlsbad, California 92008 ACM_^CA v^CC The Mayor and City Council Members 1200 Carlsbad Village Drive Carlsbad, CA 92008 Reference: Short Term Vacation Rentals Ordinance (STVRO) Dear Mayor and Carlsbad City Council Members: Date:, -^/fy /y-r W«trlbutlon: ^ ~ CItyClerk Asst. City Clerk Deputy Clerk Book By way of introduction we are the five members of the Board of Directors of a 14 home community know as The Beach, located at the northwest corner of the City, adjacent to the ocean and the Buena Vista Lagoon. We have read the draft of the proposed STVRO. With this letter we hope to offer some constructive additional conditions to the STVRO. The below proposed conditions we would offer to add to the STVRO come from very direct experience with a residentially zoned house being rented as a "short term vacation rental" yet used as a commercial enterprise. The property mentioned above is 400 feet north and east of our community. It is known as "Levyland". The property, while zoned R-2 is advertised on the web extensively as a wedding venue location and rented nearly every week for this purpose. Most of the wedding ceremonies are held on the beach. The beach is owned by our HOA. However, it has a Public Access Easement granted by us to the California State Lands Commission. Access from Levyland to the beach is also through our property which has a Public Access and Passive Recreation use Easement granted to the State of California and since taken by the City of Carlsbad. The owners naming of his residential property say's it all. (Just type "Levyland weddings" in to your browser for additional verification) Our proposed additional conditions to the STVRO are meant to quash the Levyland type of situations to continue and maybe keep Levyland type venues from happening in other Carlsbad residential locations: Vacation rentals, currently zoned "residential" shall be rented for only the "permitted uses" allowed within the City of Carlsbad's current "Residential Zoning Ordinances R-l R-2". Residential use only should be emphasized. The owners must promise the City their renters are not renting their property to engage in activates that are not a "permitted use" under thp current residential zoning ordinance. Our understanding of the existing ordinance Section 21.10.040 Home Occupations, Paragraph A subsection 7. "Sale of goods and services shail not be conducted" and subsection 9 "No advertising" should be emphasize and made a part of the application. The owners must promise the City their house will not be advertised or indicated in any way Includingthe internet as a special events location.(To be included in the application) The cit/^ relmnce for determining a violation of the ordinance could be as follows: A swora afl1d,aVft froi^'afieast two nearby residences stating the vacation rental owner has violated tiie ordinance any of the prohibited activates. The affidavit must include specific dates, times,ah^>|{icidences. We offer the above statements to be entered into the STVRO so as to help insure the residential property owners in the area of the short term vacation rentals are able to enjoy the peace and quiet promised and guaranteed by the City's residential zoning ordinances. Respectively Yours, This letter has been approved by the Board of Directors of The Beach Home Owners Association Austin Gavin President Carol Grimes Vice President Ron Evans Secretary William Carroll Treasurer Dominic Spagnuolo Vice President Morgen Fry From: Stephen Tobias <ddg68mpa@hotmail.com> Sent: Friday, April 17, 2015 10:31 AM To: Council Internet Email Subject: DO NOT APPROVE STVRs!! Follow Up Flag: Follow up Flag Status: Completed s I strongly believe the City Council should NOT approve short-term vacation rentals (STVR) citywide. Some of my main reasons are: - STVR's are for-profit businesses, and not only do not fit in with Carlsbad's neighborhoods but they could significantly harm the quality of life in those neighborhoods. - STVR's are businesses, with absentee owners, and they do not belong in residential neighborhoods. Carlsbad already has vacation rentals by the beach and Village, and that makes perfect sense; it is a natural fit with the tourism and commerce that helps drive our local economy. Other California cities, who have maintained their charm and uniqueness, prohibit STVR's in residential neighborhoods: Carmel-by-the-Sea, Coronado, Imperial Beach, Huntington Beach, Hermosa Beach, Santa Monica, Santa Barbara, San Luis Obispo, Healdsburg, and the entire county of Napa. Our beautiful beaches, recreational areas, eateries, hotels and businesses attract people to work, visit, play, and spend money in Carlsbad. Our neighborhoods attract people to live. Both environments are good for a thriving community, but neither will succeed long term if they are co-mingled. Please do not allow STVR's to degrade not only our neighborhoods but also our property values. A compromise that can satisfy the majority of Carlsbad homeowners is to legalize STVR's only within the coastal zone. On May 3, 2015 somebody from the Pacific Beach Planning Group said, "People are screwing up my town folks, and if you've got some great ideas on how to UNDO it I'm all ears." http://www.10news.com/news/pacific-beach-planning-Rroup-approves-new-guidelines-for-vacation- rentals-03032015 Stephen Tobias 4729 Edinburgh Dr. Carlsbad, Ca. 92010 850.276.6416 Morgen Fry From: Melanie Lee <mvslee5@gmail.com> Sent: Friday, April 17, 2015 6:51 AM To: Council Internet Email Subject: STVR Follow Up Flag: Follow up Flag Status: Completed Members of the Council, I do not support legalizing short term vacation rentals (STVR) outside the coastal zone in residential neighborhoods. STVR's are for-profit businesses, and not only do not fit in with Carlsbad's neighborhoods but they could significantly harm the quality df life in those neighborhoods. Thank you , Melanie Lee Morgen Fry From: Don <donwofford@roadrunner.com> Sent: Friday, April 17, 2015 6:21 AM To: Council Internet Email Subject: STVR Follow Up Flag: Foilbw up Flag Status: Completed PLEASE bo NOT support STVR. I love my community and would hate to see it compromised. Don Wofford. 4757 Edinburgh dr. Carlsbad. Sent from my iPhone Morgen Fry From: Nlynn6@aol.com Sent: Wednesday, April 15, 2015 9:36 AM To: Council Internet Email Subject: Re: Carisbad short term rentals Dear Council Members, I am unable to attend your meeting on April 21 regarding Carlsbad and short term rentals. We live in a quiet neighborhood about 3 miles from the beaches. There is a home next to us that, in the past, has used short term rentals. The noise and partying and nude people and basketball games that go way into the night has caused us to call the police many times. We never got any sleep.They police told us they will come, but can do nothing. This is not the Carlsbad we moved into 23 years ago.....l get short term rentals near the beaches but I don't get how you can allow this in residential areas. It seems this is a political move and makes me wonder what THAT is about? I wiil tell you that we will be watching closely and whomever votes for this legalization will never get my vote again. It seems loud and clear what your constituents want....and a handful of people who own these rentals should not be allowed to sway your vote. I do not believe you can regulate this with a law; in the past no one helped us when we had problems with "bad" owners. Let's just eliminate the problem. Natalie Lynn 7336 El Fuerte St. Carlsbad, Ca. 92009 Morgen Fry From: Sent: To: Subject: Barbara Wood <bwood@roadrunner.com> Friday, April 17, 2015 3:36 PM Council Internet Email STVR Issue To Cadsbad City Council: My understanding is that the issue of establishing short term vacation rentals within the city will come up for your consideration on Tuesday, April 21. Although I have previously stated by email my opposition to this proposal, I am again urging you to reject STVR for the city of Carlsbad. Beside all the obvious reasons presented to you by other citizens, my opposition is based on the fact that the city has not shown how this new regulation (if passed) can possibly be enforced. From what \ have read, city staff have not thoroughly researched or answered how homeowners that wish to rent out their homes will be scrutinized to make sure they follow the rules, i.e.., filing permits, payment of TOT, keep rentals within the 30 day limit, etc. And, I hate to see our city's resources end up in a futile effort to support a new regulation that will be beyond its control to maintain. Carlsbad has more challenges that require priority. Barbara Wood 4770 Brookwood Court Carlsbad, CA 92010 bwood@roadrunner.com Date: Distribution: City Clerk Asst. City Clerk Deputy Clerk Book All Receive - Agenda Item # For the Information of the: CITY COUNCIL ^ A TIT o-rn A -r^ ACM^CA_i/ CC j/. CARLSBAD Oateli^City Manager _v/ CHAMBER OF COMMERCE April 21, 2015 (^lUj aHu^ Mayor and City Council City of Carlsbad 1200 Cai'lsbad Village Drive Carlsbad, CA 92008 RE: Short-term Vacation Rentals; Agenda Item 12: City Council Ordinance No. CS-£72 Dear Mayor and City Council: I understand that the City CouncO will be receiving a report and presentation on April 21'' regarding short-term vacation rentals, I have read the City Council agenda bill and, on behalf of the Carlsbad Chamber of Commerce, I would like to express our support for stafFs recommendation to allow short-term vacation rentals throughout Carlsbad. Fui-ther, we agree that establishing permit requirements and strong standards of operation wiU create consistency and clear, enforceable i-ules, which would benefit the tourism industry and residential property owners. The Chamber of Commerce beligves that short-term vacation rentals are critical in supporting Carlsbad's strong tourism indus try. Thousands of visitors a year use vacation rentals as a viabk option for experiencing Carlsbad's wonderful amenities, and they directly support a very important part of our local economy. We believe that any prohibition of vacation rentals would have a detrimental impact on Carlsbad's small businesses, shops, and restaurants. Small business owners are a critical part of the local community and help contribute to the financial sti-ength, community character and quality of life in Carlsbad. I strongly urge the City Council to vote in favor of staffs recommendation to establish permit requirements and strong standards of operation for short-term vacation rentals throughout Carlsbad. Please feel fi-ee to contact me if you would like to discuss our position. We thank you in advance for your consideration of our request and look forward to your decision. Sincerely, Ted Owen Chief Executive Officer Carlsbad Chamber of Commerce 5934 Priestly Drive I Carlsbad, CA 82008 I 760.931.8400 T I 760.831.9153 F unmcarlsbad.Drg To: Carlsbad City Council April 4, 2015 RE: Chapter 5.60 Proposed Short Term Vacation Rental Ordinance My name is Patrick Kellett, Broker Owner of Realblue Properties and Property Manager of Vacation In Carlsbad Thank you for allowing me to speak at the various forums through out the process of drafting the proposed Short Term Vacation Rental Ordinance. It was my intention to be with you this evening as well - but I woke up feeling imder the weather today. I think the most recent proposed Vacation Rental Docxmient is by and large, a good one. Not perfect, granted, but a good balance of interests. I think it accomplishes some diverse objectives and should result it better management practices and higher TOT collection rates in the City of Carlsbad. I would suggest that since most of our guests make their reservations on-line (from many different countries) it might be helpful to also have the proposed "GoodNeighbor" Brochure in an electronic pdf format. That way the City can save on printing costs and the document can easily be read and acknowledged by our guests at the time of booking. We already do the same with our Rental Rules - which are contained in our Booking Confirmation. There are a few other ideas - but I do think the document as proposed - is flexible enough to allow some additional adjustments by City Staff. Thanks again for allowing public input into the process. Patrick Kellett Morgen Fry From: Sent: To: Cc: Subject: Importance: P Camerena <pcamerenal@att.net> Monday, April 20, 2015 7:45 AM Council Internet Email mauricecam@dslextreme.com STVR'S High All Receive - Agenda Item -f/j For the Information of the; CITY COUNCIL ACM / CA CC / Date i/go/ia Citv I\/Ianager~i7 My husband & I are 30+ year Calavera Hills homeowners. We strongly believe the City Council should NOT approve short-term vacation rentals (STVR) citywide. Other California cities, who have maintained their charm and uniqueness, prohibit STVR's in residential neighborhoods: Carmel-by-the-Sea, Coronado, Imperial Beach, Huntington Beach, Hermosa Beach, Santa Monica, Santa Barbara, San Luis Obispo, Healdsburg, and the entire county of Napa. STVR's are for-profit businesses, and not only do not fit in with Carlsbad's neighborhoods but they could significantly harm the quality of life in those neighborhoods, not to mention the harmful effect on property values throughout the city. We DO NOT support legalizing short term vacation rentals (STVR) outside the coastal zone in residential neighborhoods. Regards, Pat & Maurice Camerena 760-522-1643 pcamerenal@att.net Morgen Fry ———— From: Cliff Johnson <cliffjr50@hotmail.com> Sent: Saturday, April 18, 2015 6:41 AM To: Council Internet Email Subject: vacation rentals question submission We do NOT support legalizmg short term vacation rentals (STVR) outside the coastal zone m residential neighborhoods. STVR's are busmesses, with absentee owners, and they do not belong in residential neighborhoods.Other Califomia cities, who have maintained their charm and uniqueness, prohibit STVR's m residential neighborhoods: Carmel-by-the-Sea, Coronado, Imperial Beach, Huntington Beach, Hermosa Beach, Santa Monica, Santa Barbara, San Luis Obispo, Healdsburg, and the entire county of Napa. A compromise that can satisfy the majority of Carlsbad homeowners is to legalize STVR's only within the coastal zone. Thank you, Wendy and CUff Johnson 2741 Glasgow Dr Carlsbad C A 92010 Morgen Fry From: Sherrey Flodin <raflodin@sbcglobai.net> Sent: Friday, April 17, 2015 4:42 PM To: Council Internet Email Please do not vote to allow residential vacation rentals throughout Carlsbad. A compromise that can satisfy the majority of Carlsbad homeowners is to legalize STVR's only within the coastal zone. Sherrey Flodin 4772 Brookwood Ct. Carlsbad, CA 92010 Morgen Fry From: Fred Z <zerlaut@aol.com> Sent: Monday, April 20, 2015 10:33 AM To: Council Internet Email Cc: Jessiepontiac@gmail.com; Zorba63@att.net; gregagosti@sbcglcbal.net; w_bowden@yahoo.com Subject: Short term vacation rentals. Carlsbad City Council, for the meeting 4/21/2015 Regarding Short Term Vacation Rentals. Dear Council, My family moved to Carlsbad in August of 1987. Shortly after moving in to our new home in the La Costa area, the next door house was used as a Short term rental. This was absolutely terrible, because: 1) The rental tenants were "on vacation." How dare we ask that they consider not having a party every night. 2) The noise was unfair to the neighborhood because it robbed us from the sleep needed for our daily work and school. The vacationer's didn't care if their noise was offensive, and the Police when called grew weary of hearing complaints, but said they could do nothing to quell the problem. As soon as the Police departed, the noise continued. 3) Generally on Friday, the offending group would be gone, but another new group would show up and start the partying all over again. Non-Stop, sometimes for months. I sincerely hope you do not allow short term rentals in single family neighborhoods. Consider how you would feel if this occurred at the house next door to you. Sincerely, Frederick Zerlaut 7323 Las Brisas Ct. Carlsbad, CA. 92009 Morgen Fry From: Mikedimc@aol.com Sent: Monday, April 20, 2015 11:24 AM To: Council Internet Email Subject: No STVR'S in Carlsbad - PLEASE!!! To Whom it May Concern, STVR's are for-profit businesses, and not only do not fit in with Carlsbad's neighborhoods but they could significantly harm the quality of life in those neighborhoods. Please do not approve short term vacation rentals city-wide. Listen to the concerns of Carlsbad residents! Thank you, Mike & Diane McManus Morgen Fry From: Jennifer Tobias <drjennifer@hotmail.com> Sent: Monday, April 20, 2015 1:52 PM To: Council Internet Email Subject: Short Term Vacation Rentals Dear members of the Carlsbad city council. My name is Jennifer Tobias. 1 am a 4 year resident of Carlsbad. I live in the Calavera Hills area. 1 am writing to you concerning the short term vacation rental (STVC) proposal. I am very concerned about the passage of this proposal. We moved to a quiet, and safe residential area of Carlsbad, because we wanted the peace of mind that we, as a family of four, would have with our surroundings, and our neighbors. We are a close knit neighborhood of trust. We all have keys to each other's homes for pet/house sitting, emergencies, etc. We are very fortunate with all of the above in our neighborhood. I understand that other's want to come to our city to experience our beautiful beaches, our weather, and the amenities that come with our community. 1 also understand that accommodations for visitors are necessary. Visitors bring a lot to our economy, and-l appreciate that we live in paradise; a place where visitors want to stay for sometimes several months out of the year. However, there is place where short term rentals belong, and our quiet residential neighborhood is not the place. Having visitors in and out of surrounding homes takes away our feeling of safety and comfort. Short term rental goes against the current qualifications for running a business out of the home. The owner is not present in short term rentals, therefore, they have no control of the renters behavior. We as residents have a "work/family" schedule. We are up early, we drive to work and we are home in the afternoon. Our bedtimes are not at 2 in the morning; as we have to get up and do it all over again the next day. This is diabolically different than the schedule of a vacationer. These are just a few of my reasons for being against this proposal. The value of our homes being effected, by this proposal is a whole different, but serious concern. Short term rentals belong on the west side of the 5 fwy, where access to the coast is a short bike ride away. Short term rentals do not belong east of the 5 where riding a bike to the coast would mean that your in good enough physical condition to tackle the many hills that surround our neighborhood. 1 am standing with my neighbors who are in opposition of this proposal as well. We, as a neighborhood bought our homes in Carlsbad, not Pacific Beach. Will not accept anything less than to abolish this proposal. Thank you for your consideration of this matter. Jennifer Tobias drjennifer@hotmail.com Morgen Fry From: jes hinrichs <jessiepontiac@gmail.com> Sent: Monday, April 20, 2015 3:54 PM To: Council Internet Email Subject: to: Michael Shumacher and Lorraine Wood Thank you very much for taking the time to meet with Jill and me this morning. We really appreciate your concern for the citizens of Carlsbad. To follow Up on two topics, I was able to talk with a Realtor who gave me permission to quote him, as he is unable to attend tomorrow evening. I spoke with Steve Golden, Broker and owner of HomeTown Realty. He is a resident of Carlsbad. He has been a Realtor for 16 years. In his professional opinion, transient occupancy in a residential neighborhoods could certainly devalue neighboring properties when a seller discloses neighborhood noise problems or other nuisances. STVRs destabilize the neighborhood and alter the character of residential neighborhoods. In our neighborhood, a property recently sold that is directly across the street from an STVR. The buyer was unaware that the STVR existed and is not happy, to say the least. I found this document: The State of California, Department of Real Estate,Disclosures in Real Property Transactions, shows that in the California Transfer Disclosure Statement (Sellers Information) a seller must answer YES or NO to many questions about the property they are selling. Question * 11 is: Neighborhood noise problems or other nuisances. YES or NO must be answered. I should thinl< that if that box was checked off "YES" it might give a potential buyer cause to consider another property to purchase, or to negotiate a lower price on that property. I was able to contact a few cities regarding their STVR policies. Santa Barbara prohibits in R-l residential zones but allows where there are hotels. They are just getting to the point where they are going to have extensive outreach to the community , including realtors, residents, etc. and have workshops so that they can find out what the community wants the city to do about the STVR's. Right now they respond to complaints but I'd have to talk to Code Enforcement and they have not called back. Huntinoton Beach has a policy allowing 30 day minimum vacation rentals. They admit it is a lot to enforce but they do periodically search the VRBO and AIRBNB and send out notifications to those who are not operating within the ordinance. They realize that they cannot prohibit operators from listing their properties but they do try to follow up periodically. They also respond to complaints on a case by case basis. Imperial Beach responds to complaints and looks into whether there are violations. They are a smaller (27,000) city. Coronado has a 30 day or greater policy and they respond to complaints on a case by case basis. I have not heard from Hermosa Beach, but the pattern seems to be that the cities that do have an ordinance in place try to keep an eye on things, respond to complaints, and some cities that do not have an ordinance have turned a blind eye to all of the STVR's and are considering designing ordinances prohibiting or regulating. Everyone agrees that it is a challenge. I do not understand Staff's contention that if STVRs are allowed throughout the City, they would be easier to regulate. That baffles me. Is the purpose of an ordinance to make It easier for the City to regulate something or to help make our City a better place to live? This issue is coming forward In many cities and I hope that Carlsbad can lead the way by protecting the majority of residents and allowing STVR's in the Coastal Zone and Commercial Zones only and not in our residential neighborhoods. That seems like a fair compromise. Thank you again. . well r^,:. happy, ot peaceful. Morgen Fry From: Casey Bohn <kcbohn@hctmail.com> Sent: • Monday, April 20, 2015 6:56 PM To: Council Internet Email Subject: Short Term Vacation Rentals Importance: High Dear City Council Members: We are writing to you to express our opinion regarding STVRs in residential neighborhoods in Carlsbad. We are vehemently opposed to STVRs in residential neighborhoods. We chose and purchased our home in a quiet neighborhood where we have had the pleasure of enjoying and knowing the people who live and reside near us. We also have an elementary schooi in our neighborhood. This nearby school of young children needs to be protected. As parents and concerned citizens, we expect these students to be safe as they go to and from school just down our street and around the corner. The increase of traffic and strangers from inviting STVR guests, from who knows where, is frightening to us. Short Term Vacation Rentals are NOT appropriate for the safety of our family, neighbors, or the elementary school kids attending this school. We believe the disclosure of an STVR when selling our home will devalue it and make it difficult to sell in the future. We, personally, would not purchase a house that had an STVR on the street. The noise of people enjoying a vacation and partying until late into the night does not mix with daily living of families who value their sleep and expect routines not to be interrupted. We also believe that our family's privacy would be invaded by vacationers who are just passing through. We have enough hotels and motels with varying monetary choices in our city to please most people. Short term rentals do not belong in a NEIGHBORHOOD. Safety, property value, noise and privacy. Key factors in our opposition. Please do not approve STVRs in residential neighborhoods east of the 5 freeway, it is not conducive to family living. Sincerely, Casey and Mark Bohn 2709 Argonauta Street Dear Carlsbad City Council Members: I am writing this letter to you to further encourage you not to authorize STVR's outside the Coastal commission zone in Carlsbad. I searched with my wife for two years in San Diego, from the south to the east counties, up to Temecula and in between, before we settled on a great little community in Carlsbad. This is a great place to raise a family. A great place to live. Now with STVR's popping up in the neighborhood we have late night music, trash, speeders in cars, etc. Things that make our neighborhood less a community and more... transient like. Seemingly less safe. I am suddenly more wary of my own neighborhood surroundings. Additionally, as I have begun to research this matter, it has come to my attention that many communities in San Diego that have allowed STVR business have serious regrets. Many have experienced a loss of property value, security, and the overall sense of well being that most of us hope to attain in our immediate community. I would guess that some would say that surely we can hire more people to help register and license STVRs, that compliance and enforcement could be properly handled, and that this would all run smoothly while benefitting the city financially. I do not believe that the revenue expected from whatever forms of compliance you would place upon all the STVR owners could ever justify the disruption of the familial communities that would occur. And once the damage is done, you cannot take it back. This can be prevented from becoming the norm in our communities. You hold this in your hands. Please do not allow STVR business into our communities outside the already existing Coastal zone. Sincerely, Kevin Tracy Short Term Vacation Rentals April 21, 2015 1 Project Team •Gary Barberio, Assistant City Manager •Celia Brewer, City Attorney •Steve Didier, Sr. Management Analyst •Cheryl Gerhardt, CTBID Manager/Finance •Barbara Kennedy, Associate Planner •Flora Waite, Legal Technician 2 Contributors •Paul Edmonson, Sr. Assistant City Attorney •Jane Mobaldi, Assistant City Attorney •Debbie Fountain, Housing & Neighborhood Services Dir. •Neil Gallucci, Police Captain •Colette Wengenroth, Finance Manager •Martie Clemons, Geographic Information Systems 3 Short Term Vacation Rentals •Current Environment in Carlsbad •Sharing Economy •Need for new policy 4 Policy Recommendation •Proposed Ordinance represents: –Experience and input of team members –Research of and experience of other agencies –Public input –City Council direction •Providing our “best professional recommendation” 5 Prior Council Direction June 10, 2014 •Expressly allow STVRs in Carlsbad –Clear, consistent, enforceable –Permitting requirements –Operating requirements –Procedures and enforcement 6 Prior Council Direction March 17, 2015 •Revise draft ordinance as follows: –Would not supersede HOA rules prohibiting STVRs –Contact person must be a “local” contact –Include restriction on the number of occupants –Strengthen the city’s enforcement ability –Provide geographic boundary options to consider 7 Policy Recommendations •Permit Requirements –Business license –Operating permit (annual renewal) •Unit address/phone number •Notice that HOA rules or other restrictions still apply •Local complaint contact •Advertising locations •Good Neighbor Guidelines (GNG) acknowledgement •Collect and remit TOT and CTBID fee 8 Policy Recommendations •Operating Requirements –Comply with use laws/residential only –Renter must receive GNG –Permit posted in plain view –24/7 local phone number/45 minute response –Owner/agent must take action –Permit number on advertisements 9 Policy Recommendations •Operating Requirements (continued) –No trash problems –On-site parking in designated areas only –Max. occupancy 2 per bedroom/studio + 1 per unit –No amplified sound outside property (10p-10a) –Maintain 3 years of records –Violations = misdemeanor offense 10 !^ ?¸ CaliforniaCoastalZone TA M ARACKAV PALO M A R A I R PO RT RD LA COSTA AV PO IN S E T T I A LNCARLSBADBL P OIN SE T T IA LN C A R L S B A D V ILLA G E DRCARLSBAD BL OLIVENHAIN R D ALGA RD C O L L EGEB LC A N N O N RD T A M A R A C K AV ELCAMINOREAL RAN C HO S A NTAFERDM E L R OSEDRAV I ARAP Y PACIFIC OCEAN BUENAVISTA LAGOON AGUA HEDIONDA LAGOON BATIQUITOS LAGOON 0 1Miles I Document Path: J:\Requests2010Plus\Library\5379132_14\Options_slides.mxd Option 1: Recommended Citywide Recommendation –Citywide application –Low number of complaints historically –HOA rules already control in newer areas –Bans are very difficult to enforce –Enforcement resources focused on bad operators 12 Additional Research 13 STVRs despite ban?Current Position on STVRs Hermosa Beach Yes, hosted/non-hosted Similar to Carlsbad currently No changes planned Huntington Beach Yes, hosted/non-hosted Considering changing policy; Council study session scheduled for May 2015 Coronado Yes, hosted/non-hosted Coastal Commission interested in revisiting Carmel by the Sea Yes, hosted/non-hosted No changes planned Napa County Yes, hosted/non-hosted 99% agricultural; no changes planned City of San Luis Obispo Yes, hosted/non-hosted Recently approved policy allows hosted STVRs only;permit required !^ ?¸ CaliforniaCoastalZone TA M ARACKAV PALO M A R A I R PO RT RD LA COSTA AV PO IN S E T T I A LNCARLSBADBL P OIN SE T T IA LN C A R L S B A D V ILLA G E DRCARLSBAD BL OLIVENHAIN R D ALGA RD C O L L EGEB LC A N N O N RD T A M A R A C K AV ELCAMINOREAL RAN C HO S A NTAFERDM E L R OSEDRAV I ARAP Y PACIFIC OCEAN BUENAVISTA LAGOON AGUA HEDIONDA LAGOON BATIQUITOS LAGOON 0 1Miles I Document Path: J:\Requests2010Plus\Library\5379132_14\Options_slides.mxd Option 2: Coastal Zone + West of El Camino Real + La Costa Resort & Spa Master Plan 50% of city !^ ?¸ CaliforniaCoastalZone TA M ARACKAV PALO M A R A I R PO RT RD LA COSTA AV PO IN S E T T I A LNCARLSBADBL P OIN SE T T IA LN C A R L S B A D V ILLA G E DRCARLSBAD BL OLIVENHAIN R D ALGA RD C O L L EGEB LC A N N O N RD T A M A R A C K AV ELCAMINOREAL RAN C HO S A NTAFERDM E L R OSEDRAV I ARAP Y PACIFIC OCEAN BUENAVISTA LAGOON AGUA HEDIONDA LAGOON BATIQUITOS LAGOON 0 1Miles I Document Path: J:\Requests2010Plus\Library\5379132_14\Options_slides.mxd Option 3: Coastal Zone + West of Interstate 5 + La Costa Resort & Spa Master Plan 39% of city !^ ?¸ CaliforniaCoastalZone TA M ARACKAV PALO M A R A I R PO RT RD LA COSTA AV PO IN S E T T I A LNCARLSBADBL P OIN SE T T IA LN C A R L S B A D V ILLA G E DRCARLSBAD BL OLIVENHAIN R D ALGA RD C O L L EGEB LC A N N O N RD T A M A R A C K AV ELCAMINOREAL RAN C HO S A NTAFERDM E L R OSEDRAV I ARAP Y PACIFIC OCEAN BUENAVISTA LAGOON AGUA HEDIONDA LAGOON BATIQUITOS LAGOON 0 1Miles I Document Path: J:\Requests2010Plus\Library\5379132_14\Options_slides.mxd Option 4: Coastal Zone 37% of city Next Steps in Implementation •Introduce, second reading, goes into effect in June •Finalize documents: permit, application, GNG •Implement communications plan •Implementation rollout w/Police/Code Compl./Finance •STVR permit processed with business license •Finalize protocols for response and reporting •GIS mapping for tracking and enforcement •Collect TOT and CTBID fee •Enforce new regulations •Return to City Council in early 2016 with update 17 Recommended Action •Introduce Ordinance No. CS-272 to amend the Carlsbad Municipal Code by adding chapter 5.60 Short-term Vacation Rentals, establishing regulations governing short-term vacation rentals and allowing vacation rentals on a citywide basis. 18 Discussion/Questions 19 Alternative Options 5.60.030 Short-term vacation rentals. Short-term vacation rentals which comply with the requirements of this Chapter are permitted citywide only… OPTION 1: …in the Coastal Zone and in the area west of El Camino Real and in the La Costa Resort and Spa Master Plan area (to include the Balboa and Cortez buildings.) OPTION 2:…in the Coastal Zone and in the area west of Interstate 5 and in the La Costa Resort and Spa Master Plan area (to include the Balboa and Cortez buildings.) OPTION 3:…in the Coastal Zone 20 21 Source www.vrbo.com 22 Source www.airbnb.com STVR City-Wide •Pacific Beach Planning Group –“People are screwing up my town folks, and if you’ve got some great ideas on how to UNDO it I’m all ears.” •Per Asst City Mgr, STVR ordinance is not about TOT –How do the 105,328 residents benefit by legalizing rentals city-wide? Residents, Visitors & Investors •Visitors are attracted to Carlsbad for the sand, surf and scenery •Residential neighborhoods attract people to live –Population: 105, 328 •Short term rentals will decrease of rental inventory for people wishing/needing to rent long term (e.g., job relocations) •Each STVR displaces what could be a long term resident vested in the community •STVR’s provide an opportunity for investors to buy up houses in residential neighborhoods, turn them into STVR's and forever change the fabric of our City Enforcement •Written ordinance can have all the “teeth” in the world –what is the value if it’s not enforced or only parts are enforced? •ANY decision will require human resources to enforce –Legal operators –Illegal operators •No implementation plan, no code-enforcement SME on project team, & minimal discussion •Not something to be “figured out later” •What are the specific fines? Not delineated in the ordinance Compromise -Solution •No matter what decision you make people will not be happy •Satisfy the majority of residents and CA Coastal Commission by limiting STVR’s only to the coastal zone (Option 4) •Phased implementation to limit negative impact to approx 252 # of Upset People 252 (63% of 400) VS Thousands 105, 328 Population Compromise -Solution •Option 4 By limiting STVR’s only to the coastal zone: 1.you can satisfy the majority of residents 2.and CA Coastal Commission Agencies w/ Form of STVR Ban Hermosa Beach Imperial Beach Huntington Beach Santa Barbara Coronado Healdsburg Carmel by the Sea Santa Monica County of Napa St Helena San Luis Obispo •Those in red are not included in Exhibit 3 •CA Vacation Rental Manager’s Alliance/Association -Vacation Rental Regulations & Laws •Carlsbad has an obligation to enforce any ordinance passed –no excuses Jessie Hinrichs •Steve Golden, Broker & Owner Hometown Realty “Transient occupancy in residential neighborhoods can certainly devalue neighboring properties when a seller discloses noise problems or other nuisances.STVR’s destabilize the neighborhood and alter the character of residential neighborhoods.” •California Department of Real Estate, Disclosures in Real Property Transactions •Contact phone number procedure •Friend in Carlsbad doesn’t want STRV in his neighborhood, but recently purchased two STVR’s in another city •Closing Compromise -Solution •Option 4 By limiting STVR’s only to the coastal zone: 1.you can satisfy the majority of residents 2.and CA Coastal Commission