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2018-07-24; City Council; ; Update on short-term vacation rental code enforcement activities, and consideration of amendments to Carlsbad Municipal Code Chapter 5.60 "Short-term Vacation Rentals" to
CA Review/If(_ ~ CITY COUNCIL ~ Staff Report Meeting Date: To: From: Staff Contact: Subject: July 24, 2018 Mayor and City Council Kevin Crawford, City Manager Kerry Jezisek, Sr. Program Manager Kerry.Jezisek@carlsbadca.gov 760-434-2883 Update on short-term vacation rental code enforcement activities, and consideration of amendments to Carlsbad Municipal Code Chapter 5.60 "Short-term Vacation Rentals" to cla rify operational regulations, definitions and add requirements as determined necessary based on the past fiscal year of enforcement efforts. Recommended Action Introduce an ordinance amending Carlsbad Municipal Code Chapter 5.60 "Short-term Vacation Rentals" to clarify operational regulations, definitions and add requ irements as determined necessary based on the past fiscal year of enforcement efforts. Executive Summary On May 5, 2015, the Carlsbad City Council adopted Ordinance No. CS-272, amending the Carlsbad Municipal Code by adding Chapter 5.60 "Short-term Vacation Rentals." This chapter establishes regulations to govern the operations of short-term vacation rentals (STVRs) within the City of Carlsbad. For the past three years, staff has been working to educate the owners of STVRs on the new operational regulations and requirements for permits/business licenses, identify the location of STVRs and enforce the new regulations to minimize any negative impacts on residential neighborhoods. As enforcement efforts have progressed, staff has learned that some revisions to the STVR regulations are needed to clarify operational requirements and definitions, and to reduce the impacts of STVRs on the Carlsbad residential community. Below is a summary of the recommended revisions to Chapter 5.60 of the Carlsbad Municipal Code: 1. Set forth a definition of "bedroom" to assist with determining the appropriate occupancy level for an STVR . 2. Clarify that time-share units are not considered STVRs. 3. Clarify that trailer coaches parked on residential property are not considered STVRs, and they may not be rented out for occupancy pursuant to other provisions of the code. 4. Add a requirement for STVR owners to prepare an impact response plan, including information on how to contact the owner to r~port a complaint concerning the property. 5. Specify that STVRs may only be used for residential pu rposes; commercial activities and special events are prohibited. July 24, 2018 Item #12 Page 1 of 35 6. Reinforce that, to the greatest extent possible, on-site parking for the STVR shall be used for guests and tenants; parking on the nearby streets is a frequent complaint. 7. Set forth a requirement that three administrative citations or verifiable violations incurred by an STVR within a 24-month period will result in permit revocation for a period of 36 months. Amendments to the Carlsbad Municipal Code must be approved by the City Council. Discussion Last year, the City Council authorized staff to enter into a contract with Host Compliance as a pilot project to assist with enforcement of the regulations and requirements set forth in Chapter 5.60 of the Carlsbad Municipal Code. Host Compliance has provided great assistance in enhancing the capacity of enforcement staff to identify the location of all STVRs within Carlsbad, and assisting staff to permit/license the STVRs located within the coastal zone. Staff continues to gain valuable knowledge on Carlsbad's ever-growing STVR market, and we have witnessed a marked increase in compliance with the STVR ordinance since contracting with Host Compliance and dedicating staff resources specifically to this purpose. Transient occupancy tax (TOT) collection rates for STVRs are also continuing to increase. Host Compliance continues to assist staff in the education of Carlsbad residents on what it means to be a responsible STVR host and a good neighbor. Following is an overview of FY 17 /18 STVR activity (statistics through June 1, 2018): • Total STVRs identified by address: 715 • Total STVRs in the coastal zone without a permit, receiving enforcement letters: 208 • Total STVR properties compliant (coastal zone) after receiving enforcement letters: 174 • Total STVR properties non-compliant (coastal zone) after receiving letters: 34 • Total additional STVR properties permitted/licensed: 118 • TOT collected from STVRs in FY 17 /18: $775,000 • TOT collected from STVRs increase over FY 16/17: $113,000 or 17% increase • STVR properties with nuisance complaints: 14 The data mining tools and additional staff resources provided by Host Compliance are very helpful. Proprietary computer software allows Host Compliance to easily identify the property address and ownership of the growing number of STVRs operating within the city by mining data from owner advertising platforms, including VRBO, Airbnb, Home Away and others. The information provided is not limited to property and ownership records but includes information on rental rates, length of stay, documented number of stays, number of bedrooms, occupancy limits, estimated rental revenues and more. Host Compliance makes it easy for the city to more accurately and efficiently enforce the STVR ordinance and to collect TOT by expanding staff's capacity to serve the community at an annual contract cost of $70,000. In addition to the Host Compliance contract, the city has very recently entered into a no-cost agreement with Airbnb to collect and remit TOT to the City of Carlsbad from property owners using the Airbnb rental by owner platform for advertising and reservation management. The city is also pursuing agreements with other on line STVR rental platforms. These agreements will help ensure compliance of owners of STVRs in payment of TOT. July 24, 2018 Item #12 Page 2 of 35 Based on the lessons learned by staff to date through enforcement efforts, staff is proposing some revisions to Carlsbad Municipal Code Chapter 5.60 to help reduce the likelihood of excessive noise, disorderly conduct and illegal parking. Revisions are also necessary to assist in the effort to better define the requirements for STVRs and the conditions under which a permit may be revoked. The proposed revisions are intended to address issues that have arisen during enforcement efforts, and to define those properties that are subject to the STVR regulations set forth in Chapter 5.60 of the Carlsbad Municipal Code. Below is a summary of the proposed revisions to the municipal code: 1. Clarifying the definition of "bedroom" to assist with determining the appropriate , occupancy level for an STVR. 2. Clarifying that time-share units are not residential units and therefore not STVRs; this will more clearly define property enforcement boundaries. 3. Clarify that trailer coaches parked on residential property are not considered STVRs, and they may not be rented out for occupancy pursuant to other provisions of the code; this will also more clearly define property enforcement boundaries. 4. Requiring STVR owners to prepare an impact response plan, including information on how to contact the owner to report a complaint concerning the property; this provides a benefit to residents in the vicinity of an STVR property by alerting them to the vacation rental status of the property, maximum occupancy levels and who to contact should there be an issue. 5. Limit STVR use to only residential purposes to prohibit commercial activities and special events (such as weddings, receptions and large parties), which often times create excessive noise, traffic, on-street parking and trash and negatively impact the quality of life for residents in the neighborhood. 6. STVR parking guidelines will be reinforced. Guests and tenants, to the greatest extent possible, shall be required to park on-site and not on the nearby residential streets. 7. Implement a three-strike permit revocation policy to strengthen the city's enforcement capacity. This policy gives notice that three administrative citations or verifiable violations within a 24-month period will result in permit revocation for a period of 36 months. Fiscal Analysis The annual cost to administer the contract with Host Compliance is $70,000. The TOT collected in FY17-18 for STVRs specifically was $775,000. It is anticipated that the city will continue to see an increase in the STVR TOT over time as additional STVRs are permitted and TOT is collected. The agreement with Airbnb to collect TOT on behalf of the City of Carlsbad is expected to have a positive TOT revenue impact, and assist greatly with collection of TOT. Next Steps Staff will continue to work with Host Compliance to identify the addresses of all STVRs in Carlsbad and ensure compliance with permit requirements and operational standards. Staff will continue to enforce the regulations, including the discontinuance of operations by those homeowners who are operating STVR properties outside the coastal zone. Efforts will continue July 24, 2018 Item #12 Page 3 of 35 to collect the TOT required for STVRs, and to work with Airbnb and other on line STVR platforms to assist in these efforts. Environmental Evaluation (CEQA) 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 reasonable foreseeable indirect physical change in the environment. Public Notification This item was noticed in accordance with the Ralph M. Brown Act and was available for viewing at least 72 hours prior to the meeting date. Exhibits 1. Ordinance 2. Redline I Strikeout version outlining revisions to Carlsbad Municipal Code Chapter 5.60 3. Resident input/ communication with city related to STVR ordinance update July 24, 2018 Item #12 Page 4 of 35 ORDINANCE NO. CS-338 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, TO AMEND CARLSBAD MUNICIPAL CODE CHAPTER 5.60 SHORT-TERM VACATION RENTALS, CLARIFYING AND ADDING REGULATIONS GOVERNING SHORT-TERM VACATION RENTALS. EXHIBIT 1 WHEREAS, over 1,100 short term vacation rentals (STVRs) are known to exist throughout the City of Carlsbad; and WHEREAS, STVRs can have a positive economic impact bringing additional income through tax revenues, and benefitting the community as visitors to the city receive reasonably priced accommodations and spend money on visitor-related amenities such as restaurants, shops and tourist attractions; and WHEREAS, short-term vacation rentals also have the potential for a negative neighborhood impact due to high rental activity and traffic, unfamiliar people coming and going every few days, excessive trash, parking issues and noise disturbances; and WHEREAS, the City Council desires to protect neighborhoods from any adverse effects resulting from the operation of STVRs and also ensure that the city collects transient occupancy taxes/Carlsbad Tourism & Business Improvement District assessments from STVRs; and WHEREAS, the City Council directed staff to return to the City Council in 2018 to provide an update on enforcement efforts and to recommend additional city imposed conditions of approval or restrictions if needed; and WHEREAS, city staff has provided the requested enforcement update and recommends amendments to the STVR ordinance to clarify and add regulations, based on enforcement experience, to ensure STVRs have the least negative impact on the community. NOW, THEREFORE, BE IT HEREBY RESOLVED AND ORDAINED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That Section 5.60.020 of the Carlsbad Municipal Code is amended to read as follows: 5.60.020 Definitions. "Bedroom" means a private room intended for or capable of being used for sleeping, separated from other rooms by a door, curtain or other entry way, July 24, 2018 Item #12 Page 5 of 35 EXHIBIT l having at least one window and a closet/storage nook and accessible to a bathroom without crossing into another bedroom. "Broker11 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. "Owner11 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. Time-shares as defined in Chapter 21.04, Section 21.04.357 are not considered a short-term vacation rental. A trailer coach as defined in Chapter 5.24, Section 5.24.005 of this code, which is parked on the property of a legally permitted dwelling unit, is not considered a short-term vacation rental, and it may not be rented out for occupancy pursuant to Chapter 5.24, Section 5.24.145 of this code. 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. (Ord. CS-272 § I, 2015) 3. That Section 5.60.030 of the Carlsbad Municipal Code is amended to read as follows: 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 as defined by the California Coastal Commission and in the La Costa Resort and Spa Master Plan area, to include the Bal.boa and Cortez buildings located at 2003 and 2005 Costa Del Mar Road. (Ord. CS-291 § 2, 2016; Ord. CS-272 § I, 2015) 4. That Section 5.60.060 of the Carlsbad Municipal Code is amended to read as follows: 5.60.060 Obtaining and renewing a short-term vacation rental permit. July 24, 2018 Item #12 Page 6 of 35 EXHIBIT 1 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 24 hours per day, seven days per week for the purpose of responding within 45 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. An owner shall prepare an impact response plan, which shall state the owner's intent to operate a short-term vacation rental, the number of bedrooms that will be rented to overnight guests and the owner or the owner's authorized agent's phone number. A copy of the impact response plan shall also be mailed or delivered to all residents and owners of property abutting or across the street from the short-term vacation rental. 8. Such other information as the city manager or designee deems reasonably necessary to administer this chapter. B. Any fee for a short-term vacation rental permit shall be established by resolution of the city council. C. Any false statements or false information provided in the application for a short-term vacation rental permit shall be 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 36 calendar months for the same or other short-term vacation rental unit within the City of Carlsbad. E. Short-term vacation rental permit holders must comply with the provisions of Carlsbad Municipal Code Chapter 3.12and Chapter 3.37 regarding the collection and remittance of transient occupancy taxes and the collection and remittance of 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 July 24, 2018 Item #12 Page 7 of 35 EXHIBIT I collecting, paying and transmitting all revenues due to the city pursuant to this section. (Ord. CS-272 § I, 2015) 5. That Section 5.60.070 of the Carlsbad Municipal Code is amended to read as follows: 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 24 hours per day, seven days per week for the purpose of responding within 45 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 of 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. 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 of 10:00 p.m. and 10:00 a.m. July 24, 2018 Item #12 Page 8 of 35 EXHIBIT I 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. Commercial activities and special events, including but not limited to, weddings, receptions and large parties are prohibited. All occupants of the short-term vacation rental shall be notified of the prohibition against commercial activities prior to the reservation, rental or lease, and said prohibition shall be a part of any rental or lease agreement. 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 paragraphs 1 and 3 of this subsection 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. I. Trash and refuse shall not be left stored within public view, except in proper containers for the purpose of collection by the city's authorized waste hauler on scheduled trash collection days. J. All occupants and guests shall, to the greatest extent possible, utilize any on-site parking of the short-term vacation rental and avoid parking on nearby residential streets. 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 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 per unit. 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. July 24, 2018 Item #12 Page 9 of 35 EXHIBIT 1 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. (Ord. CS-272 § I, 2015) 6. That Section 5.60.080 of the Carlsbad Municipal Code is amended to read as follows: 5.60.080 Penalties an d 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 5.60.070(L) above; or suspend or revoke any short-term vacation rental permit commensurate with the severity of the violation(s). The issuance of three or more administrative citations, verifiable municipal code violations or hearing officer determinations concerning permit requirements within a 24-month period shall result in revocation of a short-term vacation rental permit. Revocation is subject to a 30-day prior written notice and to appeal, if requested within ten days. The appeal procedures will otherwise follow those outlined in Chapter 1.10 of this code. In the event of permit revocation, an application to reestablish a short-term vacation rental at the subject property shall not be accepted for a minimum period of 36 months. 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(() 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 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. (Ord. CS-272 § I, 2015) July 24, 2018 Item #12 Page 10 of 35 EXHIBIT I EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption; and the City Clerk shall certify 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 __ _ day of ____ , 2018, and thereafter PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the_ day of ____ , 2018, by the following vote, to wit: AYES: NOES: ABSENT: APPROVED AS TO FORM AND LEGALITY: CELIA A. BREWE~, City Attorney MATI HALL, Mayor BARBARA ENGLESON, City Clerk (SEAL) July 24, 2018 Item #12 Page 11 of 35 EXHIBIT 2 Chapter 5.60 SHORT-TERM VACATION RENTALS 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 ofthis 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. (Ord . CS-272 § I, 2015) 5.60.020 Definitions. "Bedroom" means a private room intended for or capable of bei ng used for sleeping, separated from other rooms by a door, cu rta in or other ent ry way, having at least one window and a closet/storage nook and accessible to a bathroom without crossing into another bedroom. "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. Time-shares as defined in Chapter 21.04, Section 21.04.357 are not considered a short-term vacation renta l. A t railer coach as defined in Chapter 5.24, Section 5.24.005 of this code, which is parked on the property of a legally permitted dwelling unit, is not considered a short- term vacation rental, and it may not be rented out for occupancy pu rsuant to Chapter 5.24, Sectio n 5.24.145 of this code . 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. (Ord. CS-272 § I, 2015) 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 as defined by the California Coastal Commission and in the La Costa Resort and Spa July 24, 2018 Item #12 Page 12 of 35 EXHIBIT 2 Master Plan area, to include the Balboa and Cortez buildings located at 2003 and 2005 Costa Del Mar Road. (Ord. CS-291 § 2, 2016; Ord. CS-272 § I, 2015) 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 of this section, 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. (Ord. CS-272 § I, 2015) 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 yea r 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 actua l duration of the rental period and not the stated time period of the reservation, rental, or lease agreement. (Ord . CS- 272 § I, 2015) 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 24 hours per day, seven days per week for the purpose of responding within 45 minutes to complaints regarding the condition, operation, or conduct of occupants of t he 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. 7. An owner shall prepare an impact response plan, which shall state the owner's intent to operate a short-term vacation rental, the number of bedrooms that will be rented to overnight guests and the owner or the owner's authorized agent's phone number. A copy of the impact response plan shall also be mailed or delivered to all residents and owners of property abutting or across the street from the short-term vacation rental. 8. Such other information as the city manager or designee deems reasonably necessary to administer this chapter. July 24, 2018 Item #12 Page 13 of 35 EXHIBIT 2 B. Any fee for a short-term vacation rental permit shall be established by resolution of the city council. C. Any false statements or false information provided in the application for a short-term vacation rental permit are grounds for denial of a permit(s), permit revocation and/or imposition of penalties as outlined in this chapter. D. A short-term vacation rental perm it application may be denied if the owner has had a prior short- term vacation rental permit revoked within the past ~36 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. (Ord. CS-272 § I, 2015) 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 24 hours per day, seven days per week for the purpose of responding within 45 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 t imes 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. 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 of 10:00 p.m. and 10:00 a.m. 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. Commercial activities and specia l events, including but not limited to, weddings, receptions and large parties are prohibited. All occ upants of the short-t erm vacation renta l shall be notified of the prohibition July 24, 2018 Item #12 Page 14 of 35 EXHIBIT 2 against commercial activities prior to the reservation, rental or lease, and said prohibition shall be a part of any rental or lease agreement. H. Prior to occupancy of a short-term vacation rental unit, the owner or the owner1s authorized agent shall: 1. Obtain the contact information of the renter. 2. Provide a copy of the "Good Neighbor11 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 paragraphs 1 and 3 of this subsection shall be maintained by the owner or the owner1s 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. I. Trash and refuse shall not be left stored within public view, except in proper containers for the purpose of collection by the city1s authorized waste hauler on scheduled trash collection days. J. All occupants and guests shall, to the greatest extent possible, utilize any on-site parking of the short-term vacation rental and avoid parking on nearby residential streets. 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 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 per unit. 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. (Ord. CS-272 § I, 2015) 5.60.80 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 5.60.070(L) above; or suspend or revoke any short-term vacation rental permit commensurate with the severity of the violation(s). The issuance of three or more administrative citations, verifiable municipal code violations or hearing officer determinations concerning permit requirements within a 24-month period shall resu lt in revocation of a short-term vacation rental permit. Revocation is sub ject to a 30-day prior written notice and to appeal, if requested within ten days. The appeal procedures will otherwise follow those outlined in Chapter 1.10 of this code. In the event of permit revocation, an application to reestablish a short-term vacation rental at the subject property shall not be accepted for a minimum period of 36 months. 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. July 24, 2018 Item #12 Page 15 of 35 EXHIBIT 2 D. Pursuant to Subsection 1.08.010(() 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 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. (Ord. CS-272 § I, 2015) 5.60.090 Interpretation. This chapter shall be construed liberally in favor of regulation as determined if n~cessary and appropriate by the city manager for the public protection and welfare and in order to accomplish its purpose and intent. (Ord . CS-272 § I, 2015) 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. (Ord. CS-272 § I, 2015) July 24, 2018 Item #12 Page 16 of 35 Carrie Bowen From: Sent: To: Subject: Hi Carrie, Wednesday, June 20, 2018 2:55 PM Carrie Bowen I just wanted to update you/inform you that the STVR@ has not yet placed a sign in the front yard/window indicating they are a _STVR. Have they been notified, and/or fined for non compliance? Also, I now prior t the previous owners selling the property last year there were at a minimum some major renovations to the kitchen. This occurred in summer of 2017. I checked with the building division and the only permits for the property in semi-recent years was in 2013 to demo a pool, and 2005 for a new roof. Is there a way an inspector can go to the property to verify whether an as-built permit is needed? On a related note there has not been much of a change on how the owners have been running the STVR since I initially notified the City. I am still texting them about tenants that do not follow the house policy, and/or comply with the good neighbor ordinance. There are also general quality of life issues that do not necessarily warrant notification to the City, or owners, but effect my wide and I none the less. These are items relating to being next to a vacation home that is constantly booked and always has some sort of noise/activity outdoors. I get it, but I do not like this occurring at our expense. Literally every other household in our neighborhood is quiet, which is what drew us to purchasing a home in this neighborhood approx. 3 years ago. It would be great to get some sort of compensation for our inconvenience, but I know that's not in the cards (Is it?). I am aware of the ordinances the City has regarding STVR, and know that owners can be fined and even have their permit taken away. However, the current policy still leaves much of the onus on the owners. It really is on them on how they run the STVR. This is due to what I feel are week policies/ordinances that currently do not give the City much power. I would like to see much stricter policies on the City's end to enforce what goes on in these STVRs. Here are a couple of my suggestions: -Homes cannot be purchased for the sole purpose of a STVR. -STVRs cannot have tenants until the City has awarded a permit. -Owners pay a fee to the City to help offset costs of additional police calls to these properties. -Have a zero tolerance policy on owners. Meaning when any of the applicable ordinances/policies aren't enforced the owner is fined. There are no warnings. -Have a 3 strikes policy, where the third strike is removal of the permit allowing for STVRs. -Limit occupancy of these properties to families/couples and not groups of people. This is a residential area after all and not Pacific Beach. -Have a zero tolerance policy, or ordinance indicating no parties, gatherings, or pets in STVRs I am not na'ive in understanding things change, and people need to adapt. But the City should too. There needs to be a more effective way of dealing with STVRs than what the City is currently allowed to do based on current policy/ordinances. Ideally I would like STVRs removed from the City all together. A second best option is allowing them with strict policies/ordinances to keep people accountable. I would also be open to meeting in person to discuss these items with your department, a City Council member, or the mayor. On a related note the house on the other side of our property is currently on the market. The address is . I am concerned that this place might also become a STVR. Is there anyway to prevent this from happening, if an application comes through? I think if we had a STVR on either side of us we would move, which we really don't want to do. 1 EXHIBIT 3 July 24, 2018 Item #12 Page 17 of 35 Kerry Jezisek From: Sent: Cc: Subject: Council Internet Email Monday, July 16, 2018 9:03 AM Kerry Jezisek FW: Protect San Diego from Commercial Short-Term Rentals From: Tamara Dixon [mailto:Tamara.Dixon. Sent: Saturday, July 14, 2018 9:30 PM To: Council Internet Email <CityCouncil@carlsbadca.gov> Subject: Protect San Diego from Commercial Short-Term Rentals Dear Council Member Packard, San Diego is a city that stands together. Why, then, are we allowing commercial short-term rental hosts to grab hold of our city -increasing housing costs and making our streets less safe for children? The safety of San Diego's kids depends on the City Council supporting Mayor Faulconer's plans to restrict the predatory practices of commercial hosts that are replacing our neighbors with revolving doors of strangers in our communities. We need smart, new rules that will allow everyday short-term rental hosts to augment their income, while preventing commercial real estate companies from buying up the city's affordable housing. Our city's popular vacation destinations have made it a target for out-of-town, short-term rental investors that seek to make a profit at the expense of San Diego's families. We no longer know our neighbors, the cost of living is skyrocketing and the fabric of our communities is being torn apart. The time to act is now. We are counting on the City Council to stand with Mayor Faulconer, and support his plan! We must protect our city's communities by joining him in restricting the illegal hotels that jeopardize the safety of our kids! San Diego is counting on these badly-needed rules that are just common sense for our city. By supporting the mayor's plan, we can make San Diego's neighborhoods stronger, safer and better for all our residents and visitors. Regards, Tamara Dixon 1 July 24, 2018 Item #12 Page 18 of 35 Kerry Jezisek From: Sent: Cc: Subject: Council Internet Email Monday, July 16, 2018 9:06 AM Kerry Jezisek FW: Protect San Diego from Commercial Short-Term Rentals From: Holly Anderson [mai1to:Holly.Anderson. Sent: Monday, July 16, 2018 7:09 AM To: Council Internet Email <CityCouncil@carlsbadca.gov> Subject: Protect San Diego from Commercial Short-Term Rentals Dear Council Member Packard, San Diego is a city that stands together. Why, then, are we allowing commercial short-term rental hosts to grab hold of our city-increasing housing costs and making our streets less safe for children? The safety of San Diego's kids depends on the City Council supporting Mayor Faulconer's plans to restrict the predatory practices of commercial hosts that are replacing our neighbors with revolving doors of strangers in our communities. We need smart, new rules that will allow everyday short-term rental hosts to augment their income, while preventing commercial real estate companies from buying up the city's affordable housing. Our city's popular vacation destinations have made it a target for out-of-town, short-term rental investors that seek to make a profit at the expense of San Diego's families. We no longer know our neighbors, the cost of living is skyrocketing and the fabric of our communities is being torn apart. The time to act is now. We are counting on the City Council to stand with Mayor Faulconer, and support his plan! We must protect our city's communities by joining him in restricting the illegal hotels that jeopardize the safety of our kids! San Diego is counting on these badly-needed rules that are just common sense for our city. By supporting the mayor's plan, we can make San Diego's neighborhoods stronger, safer and better for all our residents and visitors. Regards, Holly Anderson 1 July 24, 2018 Item #12 Page 19 of 35 Kerry Jezisek From: Sent: Cc: Subject: Council Internet Email Monday, July 16, 2018 9:07 AM Kerry Jezisek FW: Protect San Diego from Commercial Short-Term Rentals From: Lou Herman [mailto:Lou.Herman.1 Sent: Monday, July 16, 2018 7:10 AM To: Council Internet Email <CityCouncil@carlsbadca.gov> Subject: Protect San Diego from Commercial Short-Term Rentals Dear Council Member Packard, San Diego is a city that stands together. Why, then, are we allowing commercial short-term rental hosts to grab hold of our city-increasing housing costs and making our streets less safe for children? The safety of San Diego's kids depends on the City Council supporting Mayor Faulconer's plans to restrict the predatory practices of commercial hosts that are replacing our neighbors with revolving doors of strangers in our communities. We need smart, new rules that will allow everyday short-term rental hosts to augment their income, while preventing commercial real estate companies from buying up the city's affordable housing. Our city's popular vacation destinations have made it a target for out-of-town, short-term rental investors that seek to make a profit at the expense of San Diego's families. We no longer know our neighbors, the cost of living is skyrocketing and the fabric of our communities is being torn apart. The time to act is now. We are counting on the City Council to stand with Mayor Faulconer, and support his plan! We must protect our city's communities by joining him in restricting the illegal hotels that jeopardize the safety of our kids! San Diego is counting on these badly-needed rules that are just common sense for our city. By supporting the mayor's plan, we can make San Diego's neighborhoods stronger, safer and better for all our residents and visitors. Regards, Lou Herman 1 July 24, 2018 Item #12 Page 20 of 35 July 16, 2018 Ms. Kerry Jezisek Housing & Neighborhood Services Code Enforcement Division RE: Short-term Vacation Rentals in Carlsbad Dear Ms. Jezisek, While I understand and support the restriction of entire house rentals in our Carlsbad neighborhoods, I don't agree with restricting a homeowner from renting out a bedroom in their personal residence while they are present. I support restricting whole house rentals to short term tenants. Unfortunately, with the proliferation of online rental sites and high rents in the beach and city areas, investors have purchased homes for short term rentals. This has made homes more expensive and prevented families from purchasing or renting homes in the area. The end result is a decrease in the peaceful enjoyment of one's home and the loss of cohesiveness in a neighborhood among neighbors. I would ask the City Council to consider an amendment permitting short term rentals of a bedroom in a principal residence (of no more than 4 bedrooms) when the homeowner is present. This would serve the dual purpose of increasing City TOT revenue and allowing homeowners extra income without negatively impacting residential neighborhoods. An argument could be made that this would make housing costs more affordable for homeowners or renters and allow them to stay in the Carlsbad area. Home sharing with the host present, addresses most of the concerns of noise, loud music, late night parties, trash, etc. from inconsiderate guests. Sincerely, ~'a6d~ E~~beth Layrlian July 24, 2018 Item #12 Page 21 of 35 0 "' co 8 0 0 g ;;; 0 0 HOUSING & NEIGHBORHOOD SERVICES CODE ENFORCEMENT DIVISION 1200 CARLSBAD VILLAGE DR CARLSBAD, CA 92008-1949 MCGEE DAVID J&JACQUELINE M TRS 3478 ROOSEVELT ST CARLSBAD, CA 92008-5036 h I 11 I 1l 11 11 I I II i I i1 II I I 11111 h h 111h111111111111 111 hi I 111111 11 July 3, 2018 RE: Short-term Rental Violation at 3478 Roosevelt St, Carlsbad, CA Dear MCGEE DAVID J&JACQUELINE M TRS: {""city of Carlsbad During the recent explosion of online vacation rental opportunities, many homeowners may be unaware of the specific requirements to rent one's home or portion of their home for short-term stays (less than 30-days in duration). Your property appeared in a review of online listings where short-term vacation rentals are not permitted. In Carlsbad, short-term vacation rentals are permitted only in the coastal zone or in the La Costa Resort and Spa Master Plan area (Balboa and Cortez buildings located at 2003 and 2005 Costa Del Mar Road). Because your property is actively advertised as a short-term vacation rental located outside the coastal zone you are in violation of the city's municipal code and your immediate action is required. • Remove all advertised listings noting your property as a short-term vacation rental • Cancel all vacation stays booked for less than 30 nights • Remit the transient occupancy tax (TOT) due for all short term stays from 07/01/2015 through present. The estimated amount that you owe is $1,382. All payments can be made via check made payable to the City of Carlsbad . • Mail the TOT payment to City of Carlsbad, STVR Code Enforcement, 1200 Carlsbad Village Dr, Carlsbad, CA 92008 Please b13 aware that should you not comply with this request the city may pursue other enforcement actions. If you have any questions, please contact our Code Enforcement Office via email at STVR@carlsbadca.gov. We are happy to help bring lodging businesses into compliance. Sincerely, Kerry Jezisek Housing Compliance Manager City of Carlsbad STVR Enforcement Division Attachments: Notice of Violation, Screenshot of Property Listing, Coastal Zone Map Housing & Neighborhood Services 1,200 Carlsbad Village Drive I Carlsbad, CA 92008 I 760-602-2703 t I 760-720-2037 f I www.carlsbadca.gov July 24, 2018 Item #12 Page 22 of 35 Kerry Jezisek From: Sent: To: Subject: Hello Kerry, Chip Ball <cballca@sbcglobal.net> Wednesday, July 18, 2018 3:55 PM Kerry Jezisek Improvements to the Carlsbad Short Term Rental Ordinance I would like to submit the following modifications to Carlsbad's Short Term Rental Ordinance for consideration at the next city counsel meeting in order to improve and provide greater benefit to the City of Carlsbad, businesses in Carlsbad, residents of Carlsbad neighborhoods, and visitors who come to Carlsbad on vacation or for business travel. 1. Extend the boundary for short term rentals in north Carlsbad in the non-coastal area that encompasses Carlsbad Village Drive east to El Camino Real so that the area for short term rentals is contiguous with the northern and southern boarders of the Coastal Zone that also use El Camino Real as the eastern border. The reason for this is there are many residential properties currently excluded from short term rentals in this area that are close to Carlsbad businesses in the Village. These businesses are frequented by visitors who would produce a positive economic impact for Carlsbad businesses, the city of Carlsbad in both increased local sales taxes paid by businesses and occupancy taxes collected by rental properties, as well as the positive economic impact for Carlsbad residents who are able to provide additional income to their families which they may in tum spend in the community or making improvements to their own properties to improve the quality of life for Carlsbad residents. These economic factors based on proximity to local businesses seem to make more sense than using the water table and strict Coastal Zone boundaries to determine the optimal locations for short term vacation rentals. 2. If the short term rental boundary is moved to El Camino Real in the northern part of Carlsbad, code enforcement will be simplified and it will take less time and effort to locate code violators thus saving the City of Carlsbad time and money. The current coastal map includes a dozen or more boundary streets that must be checked in order to determine code compliance which could be reduced to one street for all of northern Carlsbad which would be El Camino Real. 3. Rather than restrict this entire geographic area from offering short term rentals for fear that they might become a nuisance to neighborhoods, address the small percentage of exceptions that are problems on a case by case basis. Short term rentals for residences can be easily screened by property owners prior to booking. The majority of visitors are families that want to enjoy the area with their children in order to visit the beach and attractions like Lego land. Larger groups of people that are here to have a party or event, can be referred to local hotels so that the hotels can benefit as well because they have the proper facilities to accommodate these types of travelers. 4. Lastly, please consider variances for homeowners who live at the property and would like to share their homes with visitors. There is a big difference in behavioral accountability when homeowners share their homes with visitors and are present on the property and can curtail any loud or boisterous activity compared with investors who purchase properties to be rented with no oversight or accountability. Also, many travelers prefer a private home experience in a quiet neighborhood where they can get to know the local residents who can be ambassadors to the city, rather than feel isolated with little local guidance in a small hotel room or two with travelers on either side that may be there to party and make noise disturbing their peace and ability to enjoy the vacation for which they likely paid a considerable amount. 1 July 24, 2018 Item #12 Page 27 of 35 Thank you for your consideration, and I look forward to a Win/Win modification solution that will benefit the City of Carlsbad, it's resident population, businesses and travelers as a whole. William "Chip" Ball 2 July 24, 2018 Item #12 Page 28 of 35 ORDINANCE NO. CS-338 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, TO AMEND CARLSBAD MUNICIPAL CODE CHAPTER 5.60 SHORT-TERM VACATION RENTALS, CLARIFYING AND ADDING REGULATIONS GOVERNING SHORT-TERM VACATION RENTALS. EXHIBIT 1 WHEREAS, over 1,100 short term vacation rentals (STVRs) are known to exist throughout the City of Carlsbad; and WHEREAS, STVRs can have a positive economic impact bringing additional income through tax revenues, and benefitting the community as visitors to the city receive reasonably priced accommodations and spend money on visitor-related amenities such as restaurants, shops and tourist attractions; and WHEREAS, short-term vacation rentals also have the potential for a negative neighborhood impact due to high rental activity and traffic, unfamiliar people coming and going every few days, excessive trash, parking issues and noise disturbances; and WHEREAS, the City Council desires to protect neighborhoods from any adverse effects resulting from the operation of STVRs and also ensure that the city collects transient occupancy taxes/Carlsbad Tourism & Business Improvement District assessments from STVRs; and WHEREAS, the City Council directed staff to return to the City Council in 2018 to provide an update on enforcement efforts and to recommend additional city imposed conditions of approval or restrictions if needed; and WHEREAS, city staff has provided the requested enforcement update and recommends amendments to the STVR ordinance to clarify and add regulations, based on enforcement experience, to ensure STVRs have the least negative impact on the community. NOW, THEREFORE, BE IT HEREBY RESOLVED AND ORDAINED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That Section 5.60.020 of the Carlsbad Municipal Code is amended to read as follows: 5.60.020 Definitions. "Bedroom" means a private room intended for or capable of being used for sleeping, separated from other rooms by a door, curtain or other entry way, July 24, 2018 Item #12 Page 29 of 35 Kerry Jezisek From: Sent: To: Subject: Patricia Crescenti on behalf of Code Compliance Tuesday, July 24, 2018 2:56 PM Kerry Jezisek; Carrie Bowen FW: Short Term Vacation Rentals Ordinance Amendment -----Origi na I Message----- From: Linda Burton Sent: Monday, July 23, 2018 3:04 PM To: Code Compliance <CodeCompliance@CarlsbadCA.gov> Subject: Short Term Vacation Rentals Ordinance Amendment To whom it may concern, This email is to express my vote for changes to be made to the "Coastal Zone" borders. I believe it is in the best interest of the City of Carlsbad, Carlsbad Village businesses and the home owners of the Carlsbad area to expand the borders to include properties West of the 5 freeway. Unfortunately, the City of Carlsbad cannot accommodate all the people that want to come and visit our beautiful city. Thank you, Linda Burton 1 July 24, 2018 Item #12 Page 30 of 35 Kerry Jezisel< From: Sent: To: Subject: arcerecedes Monday, July 23, 2018 10:49 AM Kerry Jezisek Re: STVR Ordinance Not so much concerned with number of these airbnb's as I am with policy associated with their operation. As you are probably aware, the folks making use of these are not concerned with neighborly acts as much as they are with merely having FUN. They will return to their probably quiet neighborhoods after having wreaked havoc in our coastal community. We were just hoping some noise policy would be implemented with these airbnb's. Sent from my Verizon, Samsung Galaxy smartphone --------Original message-------- From: Kerry Jezisek <Kerry.Jezisek@carlsbadca.gov> Date: 7 /23/18 10:08 AM (GMT-08:00) To: arcerecedes <arcerecedes@aol.com> Subject: STVR Ordinance Good morning, Thanks for your interest in this item. The proposed update does not entail limiting or increasing the number of STVR properties allowed is town. As requested I'm attaching the agenda item -please give me a shout with questions. Here's the.link: http://www.carlsbadca.gov/civicax/filebank/blobdload.aspx?Blob1D=36413 And ... attached is the agenda packet for this item. Have a lovely day! 1 July 24, 2018 Item #12 Page 31 of 35 I COLDWeLL BANl(eRID To City of Carlsbad, GLOBAL LUXURY@ All Receive -Agenda ttem # { ?- For the Information of the: CITY COUNCIL Ac;_pt, ..;!._ CA ./ CC v Date� CM ..:f.... COO V CRAIG MILLER I REAL TOR I Ca!RE# 00804103 I am writing in reference to city ordinance 5.60 short term vacation rentals. I have been involved in selling and renting properties since 1977 and feel its unfortunate to have this restriction on half of the city. Many people have bought properties to come and enjoy and rent out when there not there to cover the mortgage and many have purchased as investment long term to have as their nest egg to supplement when they retire and when this ordinance became effective 2 years ago it hurt a lot of people. Some people got extra money to survive tough times and others to help with the mortgages and now had to sell and loose there dream. What a lot of people that don't like vacation rentals don't realize is that the city of Carlsbad by having this ordinance has made the area that can do it the properties are worth a lot more than the areas that cant. I have 2 listings for sale and the clients that are visiting come into our office in Carlsbad looking for a second home rental and when they find out that La Costa Area is off limits they look else where, where they can rent it as they please. When the ordinance was passed 3 months later the city amended in 2 condo buildings to do short term rentals they hit the lottery they had no competition except Omni La Costa Hotel that was charging 450.00 a night and the accommodations at the condo was far superior. The 2 buildings are getting 1,750.00 a week and are booked solid and there just a studio condo or some that were split to have a 1 small bedroom. The selling price of units were bringing as much as 600-800 a sq ft where other more desirable condo developments in La Costa that cant do the short term rentals are getting 300-400 a sq ft. huge difference. The single family homes are worth far less also so if people were educated of this I think they would change their view points. I have 2 properties that are far worse than you can imagine one has 3 barking dogs so you cant go on your deck or they will bark till you leave and at all times of the day and it's a condo . The other has 4 kids different ages and theres always parties and fighting and their dogs barking my tenants are in and out because of them I am lucky to get more than 1 year rental .,so at least if you get a bad tenant at a short term property you know it will only be for 1 week or less and they never bring their barking dogs. My Friend that works at Carlsbad Police Dept. told me they get very few complaints from the vacation rentals its mostly domestic complaints and I remember back when this all started the first city council meeting from the investigations on short term rentals that it should be allowed city wide and the Mayor and city council had already made there mind up to pick the worse scenario which was to not except half the city not fair all the other cities that put short term ordinances in place make it city wide they dont play games and split the city with boundaries and then let others in that aren't in the area but then say nobody else can be amended in . Every attorney and people I have talked to say its not right and they would lose in a court of law if fought. If the city had good guide lines and rules with penalties and enforced them I think it would be a win win. I have contacted Mr Barbaria and told him I would equip the home owners with the contract and tools to do the business right so there wouldnt be complaints and I said I would do it for free cases 1 time a month and it should be mandatory before the get there permit or license similar to what car dealers and other agencys have to do. By the way at the meeting the city manager asst.Mr Barbaria said there were only 5 complaints for the year for short term rentals they should feel great other beach areas get that in one day. So this is why I feel that all of Carlsbad should be able to do short term vacation rentals. Thank You Craig Miller OwQed by a subsidiary of NRT LLC. \ July 24, 2018 Item #12 Page 32 of 35 Carrie Bowen From: STVR Sent: To: Monday, July 23, 2018 8:44 AM Kerry Jezisek; Carrie Bowen Subject: FW: Short-term Rental Violation From: Patricia Kinberg Sent: Friday, July 20, 2018 12:53 PM To: STVR <STVR@CarlsbadCA.gov> Subject: Short-term Rental Violation City of Carlsbad Code Enforcement Office: RE: Short-term Rental Violation at , Carlsbad, CA We are in receipt of your letter dated July 3, 2018. Sorry it took us a while to get this written and taken care of. We were out of the area and then had a very unfortunate experience at our business with an employee and medical leave and our business had to become our first priority. We were/are a little overwhelmed. We want to apologize as we have been under the impression we were part of the San Diego County Short Term Rental group. We have been watching and listening about the San Diego meetings and planning going on and thought we were in that group and we were waiting the ruling which they say would take affect 2019. At this time we have adjusted our Airbnb rental to be for 30 days or more. If we quit our Airbnb short-term rental (2 days or more) account, this will severely impact our income. We started Airbnb as our income and my Social Security is not enough to pay all the bills and maintain our home. We purposely moved an office out of a bedroom to make our Airbnb room and spent a considerable amount of money to do this. Out of all the rentals we have had since we started 2/2017, there have been O rentals for 30 days or more. We are confused as to the line drawing for who can and cannot be Short-Term or long term. Who decided on this line, of who can or cannot be in East or West of El Camino? Who made this ruling arid who VOTED on it? We do NOT remember hearing about it or voting on it??? We know there are several Condo units EAST of El Camino Real in the La Costa area that are exempt. We would like to join that circle of exemption as well. Our home is not that far off El Camino Real and our home is in the La Costa area of Carlsbad. If the resort can be exempt, please tell us how we get the exemption. If we need to file for a Variance or Special Permit we will do so. If it is a city license you need us to purchase and/or the TOT (tax) you need us to collect and pay, we can do that. We just cannot afford to not get a few short-term rentals to help us with our income for expenses. We are ALWAYS here and only rent out one room in our home. Can you please help us here? You asked us to remit the TOT from 7/01/2015 to the present, which equals 36 months for $390 or $10.83 a month. We did NOT do Airbnb in 2015 or 2016. We had our 1st rental Feb. 26, 2017. February 2017 to present is 17 months at $10.83 a month for a total of $184.11. We will be willing to send a check for that amount the first of next month when my S/S check comes in. We hope this is acceptable. We look forward to hearing back from you in regard to all of the above. 1 July 24, 2018 Item #12 Page 33 of 35 Thank you in advance for your considerations and understanding. Sincerely, Art &Patricia Kinberg .·-------------------------------------------·------ 2 July 24, 2018 Item #12 Page 34 of 35 Kerry Jezisek From: Sent: To: Subject: tom freese < Tuesday, July 24, 2018 11:30 AM Kerry Jezisek For Carlsbad City Council Meeting All Receive � Agenda Item # .../2 For the Information of the: CITY COUNCIL A�£CAV--cc .,, Date �CM ./ COO� *Consider the recent San Diego Policy 'on STVR's It looks very good to us. *Carlsbad City Council needs to understand the very real consequences of both long-term and short-term health problems caused by the ongoing stress of Carlsbad residence living directly by a STVR. When a STVR is in a quiet residential neighborhood, as experienced by us since last November, there is problem after problem after problem and ALL cause a great deal of stress for the people residing near the STVR property as we certainly can attest to. All of the back and forth communication with the city, the owner and the neighbors involved is not only extremely stressful, but extremely time-consuming for all near a STVR. *In our opinion, there should not be any STVR(s) in a residential neighborhood unless the owner is present. *If STVR(s) must be in residential neighborhoods where should be: *A limited number of STVR properties per square mile and none close together in the same neighborhood *No rentals shc;)Uld be for less than a week *Absolutely NO parties or any form of excess noise should be allowed *Talking in the back yard should not go beyond 10 PM *Since almost all the STVR problem arise in the evening or nighttime, Carlsbad should have a security team working during those hours so that residence having problems with a STVR could call at night and immediate action could take place. The Police are available for party noise, but not for things such as 20 people in a house that may only have 9 legally, talking in the backyard until wee hours, but not a party, cars parked all over the neighborhood, bright lights blaring, bands and/or music playing, etc ....... Carlsbad citizens should have a number to call with STVR problems 24 hours a day. *A very stiff fining system is needed which acts rapidlyfor each infraction. After three infractions, the owner should not be allowed to have a STVR property in Carlsbad. *Immediate and strong black and forth communication with those reporting infractions of a STVR to the City of Carlsbad should be a must. The person reporting needs to know that they are being taken seriously and what specific actions are taking place. Sally & Tom Freese 1 July 24, 2018 Item #12 Page 35 of 35 Kerry Jezisek From: Sent: To: Subject: Patricia Crescenti on behalf of Code Compliance Tuesday, July 24, 2018 2:56 PM Kerry Jezisek; Carrie Bowen FW: Short Term Vacation Rentals Ordinance Amendment -----Origi na I Message----- From: Linda Burton Sent: Monday, July 23, 2018 3:04 PM To: Code Compliance <CodeCompliance@CarlsbadCA.gov> Subject: Short Term Vacation Rentals Ordinance Amendment To whom it may concern, This email is to express my vote for changes to be made to the "Coastal Zone" borders. I believe it is in the best interest of the City of Carlsbad, Carlsbad Village businesses and the home owners of the Carlsbad area to expand the borders to include properties West of the 5 freeway. Unfortunately, the City of Carlsbad cannot accommodate all the people that want to come and visit our beautiful city. Thank you, Linda Burton 1 To the members of the: CITYCOUNOL ACbiil CA~ QZ; V Date 1 1& CM v'cOO _ July 24, 2018 Council Memorandum To: Honorable Mayor Hall and Members of the City Council From: Gary Barberio, Assistant City Manager ~ (\ Via: Scott Chadwick, Chief Operations Officer~ Re: Responses to Questions from July 23 Council Briefings Agenda Item No. 2 -Acquisition of 2686 Alameda Circle {cityof Carlsbad Question 1: What was the original purchase price for the unit and how much equity gain will the seller realize? Answer: The original purchase price for 2686 Alameda Circle was $163,600; the home was originally purchased in 2006. The current restricted purchase price is $206,200. The seller will realize a total equity gain of $42,600. The seller must pay the full 6% realtor commission to the city, which is $12,372. Therefore, the seller will receive an estimated $30,228 upon close of escrow. Agenda Item No. 6 -Fire Station 5 Storage Building Roof Note: City staff is recommending that this item be rescheduled to a future City Council meeting. Agenda Item No. 7 -Carlsbad Public Safety and Service Center Improvements Note: City staff is recommending that this item be rescheduled to a future City Council meeting. Agenda Item No. 10 -State Agreement for Federal Aid Projects Question: What were the specific changes to the Agreement? Answer: An Additional Material/Information Memo has been prepared and distributed to address this question. ( Agenda Item Nq. 11-Trail Connectivity to Tamarack State Beach and the ADA Beach Access Study Projects Question: Will the contractor coordinate with the California State Department of Parks and Recreation? Answer: An Additional Material/Information Memo has been prepared and distributed to address this question. Agenda Item No.12-Short-Term Vacation Rentals Question: How many legally permitted STVR's exist in the coastal zone? City Manager's pffice City Hall 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 760-434-2820 t ' Responses to Questions from July 23 Coundl Briefings . July 24, 2018 t:· · ' - Page 2 . \' ., .:! . .,·~ w"-~ , ~-! Answer: According to the Finance Department, we have 257 legally permitted STVRs in the coastal zone; 118 of those 257 permits were issued in the last year. Agenda Item No. 17 -TEFRA Hearing-6408 Halyard Place -Vista Las Flores Question: What year was the project built? Answer: Vista Las Flores was built in 2001, and satisfied the inclusionary obligation of the Mariano development. cc: City Attorney City Manager City Clerk " Kerry A. Jezisek, Sr. Program Manager July 24, 2018 Short Term Vacation Rentals Recommended Action •Receive annual update •Consider changes to ordinance based on current best practices and to clarify certain issues Tonight’s Presentation •Update on the marketplace and regulations •Status of short–term vacation rentals in Carlsbad today •Enforcement report •Recommended changes to ordinance What is a Short-Term Vacation Rental? •Dwelling unit –Entire place (detached home, condo, etc.) –Room •Stays of less than 30 consecutive days STVR Market Trends •2018 STVR market projection –131 million bookings –$36.6 billion (US) •Who rents STVRs? –74% millennial travelers –38% GenXers –20% baby boomers STVR Impact •Positive economic impact •Fewer long term rentals •Neighborhood changes •Unsettles traditional lodging market •Affordable lodging options Legal/Regulatory Milestones •San Diego –primary residence only / 6 months •Palm Springs –Measure C defeated (ban on STVRs) •Anaheim –No new STVRs / 300 STVRs in Carlsbad •City Council adopted an ordinance in May 2015 •Allowed in Coastal Zone •Terms and restrictions •Tax and license Carlsbad STVRs 1,519 875 597 302 121 174 0 200 400 600 800 1,000 1,200 1,400 1,600 Historical STVRs Total Identified Total Active Active Compliant Active Non- comp. Active Unknown # of STVRs # of STVRs STVR Program Milestones •Ordinance updated to include La Costa Chateaus •Additional resources for enforcement •Pilot enforcement program –STVR property & owner identification Enforcement Approach •Educate operator to come into compliance –Permit, license, taxes –Cease operations, taxes •Escalating citations: $200, $400, $1000 •Property lien •Airbnb agreement to collect TOT Enforcement Challenges •STVR identification •30 STVRs added monthly •50+ rental by owner (RBO) sites –Promise revenue for owners –Ease of use: add / rent property Public Transit + Map data ©2018 Google 500 m More Than 50 Sites @ HomeAway· f FLIPKEY ··-O iStopOver ~raigs/ist ~ SouRCE -RENTALS t°"'~acation "\ _ , Rentals n-lin~.(Om t crcnily Beach ~ y~~";t.~ ,':! -= .. OweUobte VacationRentalPros.com EN•M? ~Lodg ixi ~-'VacationRental.org• ***** "'' holidaylettings fn)mrli'9J.1ripadvisor ~ocottonRoost. ~1st~?,on ,. -Q§,§.1 f:Jr.GR REN LS M'Vacation ·r ~ EAT TA Q Rental Site A PET FRIENOL Y ~ VACATIONA:HI A~:) Vacation Rentals.com P.anof!MHorMAw..,h fflity v-- ~.ft.~R~~ f,i@tftA roomorama bl Vocotio_nHorl)eRentols.com ~ by ~tnpadv1sor 0 Vacation Rentals Listed ,o.,.....,~'<¥,;ll11'1y.t1(k:• - ~fil-SureRentals cv~erRentals H(:)USE TRIP tr ~ 9flats.com H9,m~ trovelmob .• VB VILLABOUND List your property and start earning Start cashing in on your earning potential today. ~ Bedrooms 3. Baths 2. Sleeps 6 'i' Carlsbad. CA US Beach Park OCEAN SI DE "1 C, Earn up to $17,695 - $24,649/year ,<S -.Ji\•~ ,.. I High School Q based on top 10% of properties like yours ' Continue Licensed STVRs 103 136 148 257 0 50 100 150 200 250 300 FY 14/15 FY 15/16 FY 16/17 FY 17/18 Licensed STVRs Licensed STVRs I j I I I I I I I I I I STVRs Then & Now Fiscal Year Licensed STVRs % increase TOT $% increase TOT $ / STVR FY 14/15 103 -$377,334 -$3,663 FY 15/16 136 32%$506,940 26%$3,728 FY 16/17 148 8%$659,982 23%$4,459 FY 17/18 Pilot enforcement program 257 42%$775,000 15%*$3,015 * 115 STVRs reporting half year of TOT –expecting TOT $ increase in FY 18/19 Work Left To Do 30% 33% 37% 121 Non-compliant STVRs Coastal Zone Oustide Coastal Zone Waiting for Identification Proposed Ordinance Changes •Bedroom definition •Time-shares are not STVRs •RVs are not STVRs •Impact Response Plan Proposed Ordinance Changes •No commercial use •Park on site •3 strike permit revocation Next Steps •Identify STVRs / Pursue Compliance •Data refresh (SD County & City IT) •Collect required TOT •Partner with online STVR platforms •Return in 2019 Questions?