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PC MINS 20160823 Approved 9/13/16 ;40 CITY OF RANCHO PALOS VERDES PLANNING COMMISSION MINUTES REGULAR MEETING AUGUST 23, 2016 CALL TO ORDER The meeting was called to order by Chairman Tomblin at 7:07 p.m.at the Fred Hesse Community Room, 29301 Hawthorne Boulevard. PLEDGE OF ALLEGIANCE Vice Chairman Cruikshank led the assembly in the Pledge of Allegiance. ATTENDANCE Present: Commissioners Emenhiser, James, Leon, Nelson, Vice Chairman Cruikshank, and Chairman Tomblin. Absent: Commissioner Bradley was excused. Also present were Community Development Director Mihranian, Associate Planner Silva, and Assistant City Attorney Gerli. APPROVAL OF AGENDA The agenda was unanimously approved as presented. COMMUNICATIONS Director Mihranian reported that in response to the civil grand jury countywide report on measures to improve transparency with the City's commissions and committees, the City's website has been updated to include information on the City's Commissions and Committees. He also reported that at their August 16th meeting the City Council initiated the request to vacate a portion of the public easement in front of two properties near the end of Crest Road East, and that the Planning Commission will be asked, as part of the process, to review the request for consistency with the General Plan Director Mihranian noted that late correspondence for agenda item No. 5 was distributed to the Commission. COMMENTS FROM THE AUDIENCE (regarding non-agenda item): Noel Weiss stated that Councilman Campbell had suggested there be a joint meeting of the City Council and the Planning Commission, and requested the Commission agendize this request so that there is some formality to the suggestion. He suggested that Green Hills be a regular agenda item, with the Director giving regular status reports to the Commission. He noted Green Hills has submitted an application for a retaining wall, however he felt this is more than a retaining wall and is in fact an internment area. He felt this type of application should not be a simple Site Plan Review, but rather part of the Conditional Use Permit. Mike McClung (1896 Peninsula Verde Drive) stated Green Hills will be coming to the City to request permission to build a retaining wall, a stairway, and a water feature at the east end of the Inspiration Slope Mausoleum. He felt that once that is approved and built, Green Hills will start burials in this area without the City's permission. He questioned the water feature within a certain distance to residential neighborhoods and the noise and disruption that feature may cause to the neighbors. He asked that the City stop or delay any new features at Green Hills until the mess that is already there has been cleaned up. He stated there is a dirt pile at the other end of Inspiration Slope that is causing the neighbors to have to clean their homes and cars daily because of the dirt and dust. Sharon Loveys objected to the requested stairway at Inspiration Slope. She felt Green Hills was trying to sneak in something else into that area, namely rooftop burials. She also noted that she has photographs of a very recent burial within the 8 foot setback, and was upset that Green Hills tried to have this burial knowing that they were not allowed to do so. Bernadette Sabath stated she has becoming before the Commission and City Council for several months showing pictures and playing recordings of events taking place at Green Hills that are incompatible with the surrounding land uses. She felt her neighborhood is headed for a repeat of what happened between Green Hills and the Vista Verde neighborhood. Alan Siegel discussed Municipal Code Section 17.96.240, which is the definition of a Bed and Breakfast, noting that the definition includes a statement that a guest cannot occupy the residence for more than 21 days out of any twelve month period. He felt that there is some confusion with the definition regarding the 21 day stay and the definition could be tightened up and clarified. CONSENT CALENDAR 1. Approval of Minutes —August 8, 2016 Commissioner Emenhiser moved to approve the minutes as presented, seconded by Commissioner Leon. Approved, (5-0-1), with Vice Chairman Cruikshank abstaining since he was not at that meeting. 2. Approval of Minutes —August 9, 2016 Planning Commission Minutes August 23, 2016 Page 2 Commissioner Emenhiser moved to approve the minutes as presented, seconded by Commissioner Nelson. Approved, (5-0-1), with Chairman Tomblin abstaining since he was not at that meeting. 3. Time extension request (Case No. ZON2011-00349): 5317 Rolling Ridge Road Director Mihranian reported that the applicant is requesting a time extension to an application previously approved by the Planning Commission. He briefly discussed the reasons for the request, as outlined in the applicants request letter, noting staff was recommending approval of the extension request. Commissioner Nelson moved to approve staff recommendation, seconded by Commissioner Emenhiser. Approved, (6-0). 4. Time extension request (Case No. ZON2013-00174): 2947 Vista del Mar Director Mihranian reported that the applicant and new property owner are reconsidering the approved design and are requesting additional time to finalize the design before submitting to Building and Safety. Commissioner Nelson moved to approve staff recommendation, seconded by Vice Chairman Cruikshank. Approved, (6-0). CONTINUED PUBLIC HEARINGS 5. Short term vacation rentals (Case No. ZON2016-00188) Associate Planner Silva presented the staff report, briefly reviewing the questions that the Commission raised as a result of the public hearing on July 12th. He reviewed the number of short-term rentals staff found on Airbnb and VRBO, noting the majority of listings are in the single-family residential zones. He noted that complaints to the City regarding short-term rentals were primarily centered on three properties within the City, and that the LA County Sheriff's Department reported eight service calls to one of the three properties over a one year period. He noted that the Commission had asked staff to identify additional options for regulating short-term rentals, and these options were discussed in the staff report. He noted the three options would require an extensive code enforcement framework, and discussed the components of the code enforcement process. He also stated that at the July 12th meeting the Commission questioned if regulating short-term rentals would require an amendment to the local Coastal Specific Plan. He reported that if the City pursues the option to prohibit short-term rentals, Staff's opinion is that an amendment to the Plan would not be required, however if the City pursues an option to permit short-term rentals, an amendment to the local Coastal Specific Plan would be required. He stated that staff's recommendation is to review staffs responses to the Commission's questions raised at the July 12th meeting; identify a preferred option on how the city should address short-term rentals; and request the Council's input on the Commission's preferred option before proceeding to draft specific code language. Planning Commission Minutes August 23, 2016 Page 3 Director Mihranian added that staff was recommending the Planning Commission's recommendation on the short-term rentals be taken to the City Council to review to make sure the City Council is in agreement with the option and to get direction from the City Council before drafting the code language. He felt this would be the best and most efficient use of time. He also clarified that the Local Coastal Specific Plan only applies to properties in the city's coastal zone. He explained that the City's code is a permissive code, and because short-term rentals are not explicitly allowed or prohibited in the Code, staff is taking the position that because short-term rentals are not listed as a permitted use they are, by default, not allowed in the City. Therefore, the Local Coastal Plan does not need to be amended. Commissioner Leon asked staff if the code allows for long-term rentals. Director Mihranian answered that long-term rentals is not a use specifically identified in the Code. Commissioner Leon questioned that if it is not called out specifically in the Code, then are long-term rentals also prohibited. Director Mihranian did not think long-term rentals are prohibited, because they are not a commercial operation. He stated that based on the city's transient occupancy tax, if occupancy occurs for less than 30 days the use is considered commercial and the tax would apply. Commissioner Emenhiser asked staff if the City came upon someone already renting through Airbnb in the coastal area, could staff call for enforcement since it is currently prohibited. Director Mihranian answered that, technically, yes staff could call for code enforcement on such a property. However, because the code is not as clear as it could be, staff felt it would be better to go through this process to gain clarity before enacting any enforcement. Commissioner Emenhiser asked staff to explain how enforcement would happen when looking at a permit process versus prohibition. Director Mihranian explained that the process has not yet been fully vetted, but felt the processes would be very similar with the exception of what is being enforced, prohibition or lack of a permit or operation in violation of a permit. Vice Chairman Cruikshank asked staff roughly how many multi-family versus single- family residences are in the City. Director Mihranian did not have that information available, but felt the multi-family was a fairly small percentage compared to single-family residences. Planning Commission Minutes August 23,2016 Page 4 Vice Chairman Cruikshank noted in the staff report that the City receives one to two calls per month, and asked if those are calls just to the City, or if that includes calls to the Sheriff's Department. Director Mihranian answered that it is just calls to the City. He noted that the Sheriff's Department was only able to provide staff with statistics on the number of calls to a specific residence, not how many calls were received regarding short-term rental complaints. Commissioner Leon stated he spoke to Senior Planners in both Hermosa Beach and Manhattan Beach regarding their short-term rental prohibitions and/or ordinances. He also spoke to several residents who have short-term rental homes nearby them. He noted that he is a user of services such as VRBO and Airbnb, however he did not think that would in any way prejudice his decision on this subject. Commissioner Nelson asked staff to summarize the situation in Hermosa Beach, which the Director then explained, noting the differences between the situation in Hermosa Beach and Rancho Palos Verdes. Commissioner Nelson asked staff to summarize how the neighboring cities are dealing with short-term rentals. Associate Planner Silva explained that staff found that the neighboring cities on the Peninsula have enacted prohibitions on short-term rentals. He noted that San Pedro, as part of the city of Los Angeles, is looking to adopt a registration process. Commissioner James referred to the staff report, noting that other alternatives are being explored. He specifically referred to a statement that the City Attorney is exploring creating a list of prohibited uses for zoning districts. He asked staff to expand on that. Associate Planner Silva explained that staff has identified certain sections in the Code where language regarding short-term rentals would be added. The City Attorney's office felt that if the City does prohibit short-term rentals then a list of prohibited uses in each of the zoning districts should be included in the code. He noted the code currently lists permitted uses and uses that are conditionally permitted, and this would add a new category of prohibited uses. Commissioner James asked if the major problem at the three homes identified in the staff report is that there are large parties taking place which disturbs the neighborhood. Director Mihranian answered that was staff's understanding from the complaints that staff has received. Vice Chairman Cruikshank disclosed that his engineering firm has done work at the Avenida Altisima residence, and his son is friends with this homeowner's son. Planning Commission Minutes August 23, 2016 Page 5 Chairman Tomblin stated he did not see a definition of a short-term rental in the staff report, and asked staff if this was going to be included at some point. Director Mihranian answered that was intentional, as staff wanted to stop short of presenting any specific code language until the Commission has discussed their preferred option and that option has been taken to the City Council for review and input. Chairman Tomblin opened the public hearing. Anita Gash stated she has lived at her home on Eddinghill Drive for 45 years, and it was a quiet residential neighborhood. She explained that the home across the street has recently gone through a remodel, became a two-story home, and is now an Airbnb rental, renting three or more rooms per night. She stated that as a neighborhood watch co- captain it makes her uncomfortable, as part of her responsibility is to know the cars that come into the neighborhood. She no longer has any idea as to whether or not the cars in the neighborhood should be there, and the nature of the neighborhood has changed. She also noted that a real estate agent recently informed her that if she were to sell her home she would have to disclose that she is across from an Airbnb property and that would have an impact on her property value. She asked that the Commission consider what any decision in terms of short-term rentals will have on the neighbors and the neighborhood. Doug Maizimos stated he also lives on Eddinghill Drive and over the last few years he feels like he lives next to a four room hotel. He noted that in 2008 this property owner was given approval to build his dream home for his family. Now the property owner has four separate listings on Airbnb offering bedrooms for rent. He felt a motel is a correct description for this commercial business in this residential neighborhood. He discussed the cars that come and go at all hours of the day and night, car alarms that go off in the middle of the night, and travelers who ring his doorbell because they can't get ahold of the owner and they want to check in. He felt this rental is changing the very fabric of the neighborhood in unacceptable ways. He requested that the Planning Commission recommend to the City Council a full and immediate ban of short-term rentals. Sue Dunbar (Spindrift Drive) stated she does not support renting homes out for venues and events, however she noted that she does have a vacation rental and has been renting out the home for several years. She stated that she has had no complaints in four years, noting that she has a very watchful and active HOA. She tries to be very respectful to the neighbors on how and to whom they rent the home and rejects requests for any parties of any size. She noted that she submitted a letter which includes some of the guest book comments about what a peaceful and relaxing place this is to stay. She stated that if the Commission considers a permitting process that there are ways to manage a short-term rental and to manage it well. She explained that she is moving more towards longer-term rentals and questioned if her advertising on VRBO or other third party site would create some sort of code enforcement issue. Planning Commission Minutes August 23,2016 Page 6 Ying Sai stated she has a short-term rental property, and noted that she manages the property very well and has had no complaints. She explained the process for rental, and explained her strict advertised house rules. She also explained that she recommends to the renters the local businesses and restaurants for any large gatherings. She felt that the tourist dollars, through short-term rentals, are being used throughout the City at local businesses and restaurants and the City should establish public policies that acknowledge the transitory travelers. Chairman Tomblin asked what neighborhood Ms. Sai lives in and the average length of a renters stay. Ms. Sai answered that her home is near Peninsula Center and the average length of stay is approximately five days. She stated she personally checks in each renter. Michael Huang (7147 Avenida Altisima)felt that short-term rentals is a commercial activity and he did not understand why the City would allow a commercial activity to take place in a single family residence. He stated Avenida Altisima is a cul-de-sac and there are two short-term rental homes on the street. He stated that there is excessive traffic on the street, and cars are heavily parked on both sides of the street. He explained that he went door-to-door on his street to see if neighbors would support a ban, and out of the fourteen residents that he spoke to, all supported a ban on short-term rentals. He felt that there are many residents in the City who are opposed to short-term rentals that haven't complained to the City and just tolerate the situation. He stated that Rancho Palos Verdes is currently the only beach city that allows short-term rentals, and felt that more and more rentals will come to this City because of it. Vice Chairman Cruikshank asked Mr. Huang if he has contacted the City or the Sheriff's Department when there have been issues with the short-term rentals in his neighborhood. Mr. Huang answered that he has not made complaints. He also felt that many neighbors have not made complaints because they do not know who to complain to. Vice Chairman Cruikshank asked Mr. Huang if the property owners of the two short-term rental homes in his neighborhood stay at the property, or if they did not live at the property. Mr. Huang answered that one owner says she lives there, yet there is a younger kid that lives there. He questioned how something like this would be enforced. Tracy Burns (Avenida Altisima) showed the Airbnb ad for her neighbor's house, noting that the ad says this is a great place for a party. She also stated that the neighbor rents out single rooms for one night at the home. She explained that she no longer calls the Sheriff's Department because there comes a point where you realize it no longer does any good. She felt that this type of use not only obliterates the neighborhood watch program, it also obliterates Megan's Law, as neither can be applied to her neighborhood any longer. She stated that Manhattan Beach tried a permit system which didn't work. Planning Commission Minutes August 23, 2016 Page 7 Commissioner James asked Ms. Burns why she gave up calling the City or the Sheriff's Department with complaints. Ms. Burns answered that in the beginning when the larger parties were taking place she would call the Sheriff's Department, who would come by and quiet things down. However, she will not call the Sheriff's Department because someone vomits on her front lawn, or because she finds cigarette butts all over her driveway. Chris Huang (Avenida Altisima) stated she was in support of the full ban of short-term rentals. She felt this use lowers the neighboring property values. She explained she lived on Eddinghill Drive next to an Airbnb, and felt unsafe, so the family moved to Avenida Altisima, and now there are Airbnb rentals on Avenida Altisima. She did not feel it was right for a property owner to make money renting their home or rooms at their neighbors' expense. . Carolynn Petru (Avenida Altisima) supported a total ban on short-term rentals. She acknowledged there are some very well managed rentals, but that doesn't erase the basic fact that this is a commercial use in a single family residential neighborhood. She stated Rancho Palos Verdes has become a destination and people are flocking to the City for all of the beautiful amenities the City has to offer. She did not think people should be making a profit at the expense of the harmony and quietude of the neighborhoods. She would also support looking into the prohibition of partying houses in the City, which has an even worse impact to the neighbors than Airbnb rentals. Commissioner Emenhiser asked Ms. Petru how she felt this type of ban would be enforced. Ms. Petru acknowledged that any type of enforcement will be difficult and require staff resources, whether that be city staff or the Sheriff's Department. She felt that the ban is the most straightforward and easily enforceable option, and won't include all of the layers of enforcement that a permitting process might involve. Chairman Tomblin asked Ms. Petru if she had any thoughts on how to define a short-term rental. Ms. Petru felt that anything less than thirty days should be considered a short-term rental. Amar stated that intellectually and spiritually everyone needs a place where they can sit and have peace. He felt that the Airbnb rentals is a relatively new business enterprise which is mushrooming in big cities, but in small neighborhoods it should be kept away. He felt these rentals in small neighborhoods destroy the peace and increases the crime rate. He also did not think the City would make much money from this type of business. Alan Siegel stated he is an Airbnb user throughout the world and has had nothing but good experiences. He stated that Airbnb uses a reputation based system where one applies to an owner to rent in their house, and the owner looks at your reputation and Planning Commission Minutes August 23, 2016 Page 8 comments from previous owners and then chooses whether or not to rent to you. He noted the City of Los Angeles is considering a ban, with their primary concern that housing stock will be taken away from the City in an already tight housing market. He stated that Palos Verdes Estates has also banned this use, noting that the City does not have a Transit Occupancy Tax, and therefore would have no way to collect revenue to help offset any enforcement needed. He empathized with his neighbors in regards to the problems that have been caused by the three or four problem houses in the City, but felt a ban is going too far, as he felt there are many who are good and responsible Airbnb hosts. He suggested a measured approach, a permitted approach, noting a system used in La Quinta. He felt that the City could collect taxes to offset any enforcement action. Eric Mark (6527 Eddinghill Drive) stated he hosts millionaires, business executives, attorney, doctors, and many others from all over the world. He stated that all of these visitors are also consumers that come to the Peninsula to patronize restaurants, markets, and other businesses. He felt that short term rentals are a key function to the local economy, as they help create jobs and promote sales. He also felt that short-term rental homes add to the neighborhood, as they are impeccably kept with well-maintained gardens. He asked the Commission continue to allow short-term rentals. Commissioner Nelson asked Mr. Mark if he rents out his entire house, or only rooms in the house. Mr. Mark answered that he and his wife are always in the house with the guests. Commissioner Leon asked Mr. Mark if he allows parties at his home. Mr. Mark answered that he will allow no parties at his home, and is advertised as such. Commissioner Leon asked Mr. Mark if he has had any complaints that he is aware of. Mr. Mark noted that only one person complains, and he was forced to obtain a restraining order against that person. Minas Yerelian felt this was an important topic and that the City should be able to inform every citizen that this meeting is taking place. He felt that large ads should be placed in the Peninsula News and the Daily Breeze explaining what is going on, since the majority of the residents don't know what's going on with this topic, and letting everyone know when this meeting is taking place. He also suggested hanging banners advertising the meeting so that all residents are aware. He also suggested that if short-term rentals are allowed to remain, that every home that rents be required to have a sign advertising the home is a short-term rental property because nobody wants to buy a property next door to a short-term rental property. He stated that short term rentals are already not allowed in the City per the City's Municipal Code, and questioned why these hearings are even taking place. Planning Commission Minutes August 23, 2016 Page 9 Chairman Tomblin asked Mr. Yerelian what is required in selling a home, in terms of disclosure, when living near a short-term rental. Mr. Yerelian answered that you have to disclose what is next door to the home being sold, especially if there is loud noise. Commissioner Nelson asked staff when this meeting was noticed to the public. Director Mihranian answered that the public notice was sent out for the July 12th meeting, and at the July 12th meeting the Commission continued the public hearing to this evening. Vice Chairman Cruikshank asked Mr. Yerelian if he would have to disclose that he lived next door to a house full of teenagers who have parties every weekend. Mr. Yerelian answered that you must disclose any noise or continuous activity. Nelly Bertolina (Hightide Drive) urged the Commission to prohibit short-term rentals. She explained that the Hightide neighborhood has changed completely since the nearby short- term rental has started. She stated there are many parties and noises, and the Sheriff's Department does not always respond. She also noted that there is now quite a bit of trash in the neighborhood. Noel Park (El Rodeo Road) felt the speaker who live on Eddinghill and Avenida Altisima have pretty much said all there is to say on this subject. He agreed that if all of the other local cities ban short-term rentals and Rancho Palos Verdes does not, the city may become overrun with this type of business. He noted the home next door to his is a long- term rental and has its own issues. Commissioner Emenhiser asked Mr. Park if he could see any way to allow some short- term rentals in neighborhoods, noting that there have been some speakers who seem to have a very well-run business with their short-term rentals. Mr. Park responded that by definition a short-term rental is a business being run in a residential neighborhood, and therefore it degrades the quality of life in that neighborhood. However, he questioned how a ban or a permitting system would be enforceable. Karen Chuang felt the speakers before her had very eloquently put forth her concerns in regards to short-term rentals and why there should be a complete and total ban of short- term rentals in the City. She noted that, while only four houses have been targeted at this meeting, there are Airbnb rentals throughout the City. She felt that the short-term rentals had considerable traffic and parking issues to neighborhoods and brings people in that the neighbors do not know. She felt that short-term rentals generate a very large profit for the property owner at the expense of the neighbors who have a vested stake in the community. She encouraged the Commission to support a complete ban of short-term rentals in the City. Planning Commission Minutes August 23, 2016 Page 10 Maura Mizuguchi stated she is the owner of a short-term rental on Avenida Altisima. She stated that she was quite surprised to learn about all of the complaints at a public meeting, rather than being contacted by the neighbors personally through a phone call or email. She explained she started with long-term rental of her home but found the renters to be difficult and tended to damage the property. She stated she rents rooms in her home and has two young boys at the home, who she felt have flourished with these rentals. Chairman Tomblin asked Ms. Mizuguchi if she lives in the house and rents out the rooms. Ms. Mizuguchi responded that she lives in the house and rents out rooms to short-term renters. She stated that she wished her neighbors had approached her with issues and concerns when the problems happened. She added that she has rented out the home to people who have had family gatherings, but not parties. Commissioner Leon asked Ms. Mizuguchi if she lives at the residence full time. Ms. Mizuguchi answered that she does live at the residence full time. She felt that a ban is a real tragedy, as short-term rentals provide opportunities that may not be realized. Michael Yu stated he is an Airbnb host, and that Palos Verdes is no longer the quiet community it once was, as it is now well known with Trump National Golf Course, Terranea, and other outdoor venues which make the City a destination. He agreed with all of the speakers before him and as a resident, he shared their sentiments, however he also had disagreements with some of the statements. He felt that short-term rentals are a shared economy that is now a global phenomenon. He felt a short-term rental ban is a punishment for making a mistake, noting that no education has been given by the City or by neighbors to the property owners. He felt that before any decision is made by the City there should be some type of guidance given for all short-term rental hosts. He felt that this could lead to a win-win-win situation, a win for the City, a win for the host, and a win for the neighbors. Greg Mitre did not think it was a coincidence that more and more short-term rentals are showing up in the City, since every City around Rancho Palos Verdes has banned this use. He stated he lives on Hightide Drive, and lives across the street from a short-term rental. He stated this property does not have the owner present when it is rented, and the owner is not present when the guests check in or check out. He has called the Sheriff's Department on a few occasions, and noted that they do not always respond. He stated he attended the City Council meeting when this subject was before them, and all but one Council member spoke out strongly against short-term rentals. In terms of enforcement, he explained that he is very aware of every car in his neighborhood and who should be there and who should not. He felt that involving the neighborhood in enforcement would be beneficial. Barzia Tehrani stated he lives on Sunnyside Ridge near a short-term rental. He stated that the HOA sent a letter of complaint was sent to the City, and felt that the reason the Planning Commission Minutes August 23,2016 Page 11 number of complaints may have gone down in the past several months regarding short- term rentals is because residents are waiting to see how the City Council will decide on this issue. He discussed the nature of the neighborhood, and how the character of the street completely changed once the short-term rental/party house started. He stated he supports a complete prohibition, and did not think anything else would be enforceable. Mary Gordon stated she is in support of a ban on short-term rentals. She stated she has not complained about the short-term rentals in the neighborhood, mainly because she does not want to have an adversarial relationship with the neighbors. She stated she likes her neighbors and her neighborhood. She felt that this is an issue involving the character and the safety of the community, as well as the neighborhoods and the children. Paul Henrikson (Sea Raven Drive) stated he runs an Airbnb at his property. He stated his guests all meet his requirements and follow all of the rules of the property. He explained that he and his wife live in the house and rent out only one bedroom to guests, and the guest typically stay two to three days at a time. Irene Henrikson feel badly that a few party houses has to spoil it for the rest of the Airbnb hosts who try very hard to comply with all of the rules and to maintain their homes. She stated she has had very good experiences with their rentals, noting many of the guests are former residents of the City who have come back to the area to visit relatives or attend events. She explained that she and her husband allow only one to two guests, and these guests must park in the driveway. She stated she has had no problems or complaints, and did not think her neighbors even realized they rent the room. She hoped the City could find some sort compromise for those who do try to comply without having an outright ban. Vice Chairman Cruikshank stated that many times during the public comments it has been said that all of the cities around Rancho Palos Verdes has banned short-term rentals. However, in looking at the chart in the staff report, it appears Rolling Hills and Manhattan Beach have banned the short-term rentals, Palos Verdes Estates is considering a ban, Rolling Hills Estates and Redondo Beach don't have anything, and a permit is required in Los Angeles and Malibu. Director Mihranian noted that the chart was prepared for the July 12th meeting and since that time a few changes have occurred. He noted that Palos Verdes Estates now bans short-term rentals and the City of Rolling Hills Estates is in the process of codifying a ban. Commissioner Leon questioned if it would be possible to create a set of rules regarding short-term rentals that would allow the well run short-term rentals to continue operating, but would essentially ban the short-term rentals used for party houses. Director Mihranian explained that all of the options before the Commission will require some level of enforcement. He felt there will be enforcement challenges with each option. However, staff's opinion is that if there is an outright ban on short-term rentals it may be simpler to enforce, as opposed to some sort of regulated use. Planning Commission Minutes August 23, 2016 Page 12 Chairman Tomblin asked staff if they felt noticing of this type of meeting should be advertised and posted in a different manner, as opposed to the standard classified ad for a typical public hearing. Director Mihranian explained that for the July 12th meeting staff tried to reach as many members of the public as possible, but felt that for the next meeting staff will try to increase and improve the public outreach. He also noted that a Listserve page has been created and anyone can go to the City's webpage and subscribe, and will then receive electronic notifications regarding this item. Chairman Tomblin noted that staff has presented three options, and suggested the Commissioners discuss the option they preferred, and any amendments they may want to add to that option. Commissioner James stated he would support a total ban. He clarified that this is not a total ban on rentals, but rather a ban on rentals that have been zoned residential. He felt it was truly unfortunate that a few bad experiences have spoiled things for those that have rented out rooms for quite awhile and are very respectful to the neighborhood. He stated that for him this is a zoning issue, and suggested the City might look into creating some zones that have multiple uses which would allow short-term rentals. He noted several speakers stated that when they moved here they had an expectation in that they were moving into a single family residential area, and they have a right to that expectation. He stated that is what zoning means, and that expectation should not be taken away from them. He also felt that the current code may be good enough, but after hearing the public speakers, he felt new code language could be added that clarifies the already existing code. Commissioner Emenhiser felt this was a discussion on the nature of Rancho Palos Verdes, as it is a neighborhood, family based city. He did not think Rancho Palos Verdes is considered a beach city. He felt that many short-term rentals are taking advantage of the good will of their neighbors, and the profit motive may drive many to run over the best nature of their neighbors. He felt the Commission should recommend a ban of short-term rentals to the City Council. He suggested banning short-term rentals for a period of six months, and then over time open the door to some type of strict permit process. He acknowledged that there are many rentals where the owners do live on site and do a good job with the rentals. Vice Chairman Cruikshank stated that without enforcement it really doesn't matter what the City does in terms of short-term rentals. However, he felt that it makes quite a bit of difference if the property owners are actually on site. He noted that many good people have spoken in favor of short-term rentals, explaining they are always at the house and control their guests. He stated that at this point he is leaning towards a six month period of issuing permits for the use. He explained that once a ban is put in place, this use will never come back. He questioned what would stop someone from renting a house long- term and then subletting the home for short-term rentals, and how that would be enforced. Planning Commission Minutes August 23,2016 Page 13 He felt Airbnb and other agencies will find ways around a ban and a ban will be very difficult to enforce. He therefore supported option No. 2 in the staff report. Commissioner Nelson stated he was not in favor of a ban of short-term rentals. He noted that a house down the street from him is rented out as a short-term rental. He stated that at times there is a parking problem around the house, but there have been no loud parties or disturbances. He stated he has a hard time discouraging people trying to expand their living. He suggested a compromise might be to have the problem homes declared a nuisance, and for the City to then abate the nuisance in small claims court. He was therefore in favor of option No. 2. Commissioner Leon stated he prefers option No. 2, but recognizes this option is a difficult thing to do. He stated that he would accept a prohibition, but would prefer to have the use allowed and regulated. Chairman Tomblin discussed his feelings that short-term rentals are preferred in resort and vacation communities, such as Lake Arrowhead or La Quinta, as opposed to cities like Rancho Palos Verdes which are where people live and raise their families. He stated he did not want to see Rancho Palos Verdes become a La Quinta. He stated that there might be a fourth option to allow an allowance to a resident who lives in their home to rent out one room. He therefore stated he would support a total ban of short-term bans. Chairman Tomblin moved that the Planning Commission recommend to the City Council option No. 3 that there is a ban on short-term rentals, with the provision that the staff also report to the City Council the Planning Commission's recommendation that a resident who is living on the property would be able, by right, to rent out one room or one guest house, seconded by Commissioner Emenhiser. Commissioner James felt the motion sounds like option No. 1 in the staff report, which allows permits with conditions. He noted that in the staff report staff commented that enforcement may be very difficult with this option in terms of proving how many rooms are being rented out. Chairman Tomblin clarified that he was recommending a complete ban of short-term rentals, and separately the topic of renting out one room or a guest house could come back for review at a later date. Commissioner James reiterated his concern that this is a zoning issue. Director Mihranian asked for clarification on the current motion. He noted that the way the motion is drafted, it is a bit ambiguous as to the preferred option. He noted the motion recommends a ban on short-term rentals, yet there are caveats added which is closer to Option No. 1. Planning Commission Minutes August 23, 2016 Page 14 Commissioner Emenhiser stated the Commission has heard testimony that there are some well-run short-term rentals in the City, and he did not necessarily want to take that away from these people without some thought and consideration on the matter. His understanding of the motion is to implement a ban of short-term rentals to be followed by consideration of allowing owners to rent one room in their residence. Chairman Tomblin added that his understanding of the motion is that the Commission supports the ban, which is option No. 3, but add on to that a whole separate process to look at one room or guest house rentals with the owner at the site. Commissioner Leon felt the Commissioners are appointed to be an independent body, and not just check the appropriate box when making a recommendation. He felt the Commission is supposed to add value, and the value the Commission adds is to take testimony from the public and then try to craft some language as advice to the City Council. He felt the Planning Commission has come up with some good advice to the City Council, that short-term rentals are very difficult to regulate and as a consequence, having a prohibition is the practical way to go. However, there is some small subset that could be allowed while having the overall prohibition. Vice Chairman Cruikshank stated he did not support an outright ban, as he felt the ones who are doing a good job should be allowed to continue. He noted these people tend to be on the property and do not rent the entire house out, and it is closely regulated. He also noted that he does not want to see party houses continue to disrupt neighborhoods. However, regardless of what the City does, he felt enforcement will be very difficult. Commissioner James felt that what is now being discussed is discretionary permits, as noted in option No. 1. He felt the concept of discretionary permits would include the notion that anyone who does not get a discretionary permit cannot rent their rooms. Director Mihranian clarified that staff is really just looking for the Commission to identify an option for staff to take to the City Council to see if they agree with the idea. Staff does not want the Commission to get into the details of how it will be enforced and the details of the rules and regulations at this point, but only to identify a concept of how short-term rentals should be approached by the City. Once the City Council has reviewed the option and given input, staff will then bring it back to the Commission to deal with the specifics. Chairman Tomblin asked staff to read back the current motion. Director Mihranian stated the current motion is that the Planning Commission is recommending to the City Council a ban on short-term rentals with a provision that the Council allows owners living on the property to rent out a room or a guest house through some sort of regulatory process. He reiterated that this is a recommendation to the City Council, and not a final decision. The City Council will discuss this recommendation and send it back to the Commission with further recommendations. He recommended that the members of the public who are interested in following this should subscribe to the Listserve for all electronic notifications. Planning Commission Minutes August 23,2016 Page 15 Commissioner Nelson stated he could not support the current motion, noting there is a way to control the issue through public and private nuisance, with abatement of the nuisance through small claims court. The motion was approved, (4-2)with Commissioners James and Nelson dissenting. ITEMS TO BE PLACED ON FUTURE AGENDAS 6. Pre-agenda for the meeting on September 13, 2016 The pre-agenda was reviewed and approved. ADJOURNMENT The meeting was adjourned at 10:27 p.m. Planning Commission Minutes August 23, 2016 Page 16