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HomeMy WebLinkAbout2018-08-21; City Council; ; Ordinance No. CS-338 - Amending Carlsbad Municipal Code Chapter 5.60 Short-Term Vacation Rentalse CITY COUNCIL Staff Report Meeting Date: To: From: Staff Contact: August 21, 2018 Mayor and City Council Scott Chadwick, City Manager Sheila Cobian, City Clerk Services Manager sheila.cobian@carlsbadca.gov or 760-434-2917 CA Review /VIK.._ Subject: Ordinance No. CS-338 -Amending Carlsbad Municipal Code Chapter 5.60 Short-Term Vacation Rentals Recommended Action Adopt Ordinance No. CS-338 amending Chapter 5.60 of the Carlsbad Municipal Code Short-Term Vacation Rentals to clarify operational regulations, definitions and add requirements as determined necessary based on the past fiscal year of enforcement efforts. Executive Summary /Discussion Ordinance No. CS-338 was introduced and first read at the City Council meeting held on July 24, 2018. On a motion by Mayor Pro Tern Blackburn, seconded by Council Member M. Schumacher, the City Council voted 5/0 to introduce the Ordinance. The second reading allows the City Council to adopt the ordinance which will become effective thirty days after adoption. 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 The City Clerk will have the ordinance or a summary of the ordinance published in a newspaper of general circulation within fifteen days following adoption of the ordinance. 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 public viewing and review at least 72 hours prior to the scheduled meeting date. Exhibits 1. Ordinance No. CS-338. August 21, 2018 Item #4 Page 1 of 8 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, August 21, 2018 Item #4 Page 2 of 8 EXHIBIT 1 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 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 Balboa 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. August 21, 2018 Item #4 Page 3 of 8 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 ofthe 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 August 21, 2018 Item #4 Page 4 of 8 EXHIBIT 1 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. August 21, 2018 Item #4 Page 5 of 8 EXHIBIT 1 G. The owner and/or owner1s 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 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. August 21, 2018 Item #4 Page 6 of 8 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 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 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 ofthis 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) August 21, 2018 Item #4 Page 7 of 8 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 ofthe Carlsbad City Council on the 241h_day of ::!!!!Y, 2018, and thereafter PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 21st day of August, 2018, by the following vote, to wit: AYES: NOES: M. Hall, K. Blackburn, M. Schumacher, C. Schumacher, M. Packard. None. ABSENT: None. APPROVED AS TO FORM AND LEGALITY: (?)e~\~:VL/d d ~~~~-~~-"""-..... ~~'--i-c,,,br"'o4-~~----/l.-------- CELIA A. BREWER, City Attorney ---y1t1alllf# MATT HALL, Mayor (SEAL) August 21, 2018 Item #4 Page 8 of 8