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CC SR 20171108 02 - Short Term RentalsRANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 11/08/2017 AGENDA REPORT AGENDA HEADING: Regular Business AGENDA DESCRIPTION: Consideration and possible action to adopt an urgency ordinance and initiate code amendment proceedings to amend Chapter 17.96 (Definitions) of Title 17 (Zoning) of the City's Municipal Code to expand the definition of a Short -Term Rental (Case No. ZON2017-00486). RECOMMENDED COUNCIL ACTION: 1) Adopt Ordinance No. _U, AN URGENCY ORDINANCE OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, AMENDING CHAPTER 17.96 (DEFINITIONS) OF TITLE 17 (ZONING) OF THE CITY'S MUNICIPAL CODE TO EXPAND THE CITY'S DEFINITION OF A SHORT TERM RENTAL; and, 2) Initiate Code Amendment proceedings to amend Chapter 17.96 of Title 17 to expand the definition of a Short -Term Rental. FISCAL IMPACT: None. Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Octavio Silva, Associate Planner' 4 - REVIEWED BY: Ara Mihranian, AICP, Director of Community Development° APPROVED BY: Doug Willmore, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Ordinance No. U (page A-1) B. Ordinance No. 593 (page B-1) BACKGROUND AND DISCUSSION: In January 2017, the City Council adopted Ordinance No. 593 (Attachment B) affirming the City's prohibition of Short -Term Rentals (STRs) and the advertisement of STRs in the City's Residential and Multi -Family Zoning Districts. The Ordinance also codified definitions of "STR," "advertisement," and "responsible party." A STR is currently defined as "a rental of a dwelling unit or part of a dwelling unit to visitors where lodging is furnished for compensation for a period of less than 30 days, except as allowed by Section 17.76.140 (Bed and Breakfast Inns)". 1 Since the adoption the Ordinance, the City's Code Enforcement Division has actively investigated STR complaints, provided notices of violation, and cited property owners that were found to be in violation of this Ordinance. While the Code Enforcement Division continues its efforts to enforce the Ordinance, City Staff has received various complaints from the public regarding housing units being rented for less than 30 days for the purposes of conducting for-profit events such as weddings, banquets, and other private parties. The complaints include noise and traffic impacts to adjacent properties, safety, increases in trash, and reduced parking areas. It is Staff's opinion that a rental of a housing unit, whether in full or in part, for a period of less than 30 days for commercial purposes violates the intent of Ordinance No. 593 and should be prohibited. However, the Municipal Code's current definition of a STR is limited to rentals for lodging purposes. In order to clearly prohibit all STRs for commercial purposes in all single-family residential and multi -family zoning districts, Staff proposes to amend the definition of a STR. Specifically, under the proposed definition, a STR would consist of the rental of a dwelling unit to visitors for compensation, for a period less than 30 days, and for commercial purposes including, but not limited to, lodging, weddings, banquets or events, unless expressly permitted by the City. The proposed code amendment makes an exemption for social events hosted by property owners or renters at their own residence and in instances when such activities are expressly permitted by the City such through a Film Permit or a Conditional Use Permit for a Bed & Breakfast use. The proposed amendments are shown below in strokethrnurvh for deleted text and underline for new text. "17.96.1705- Short -Term Rental "Short-term rental" means a rental of a dwelling unit or part of a dwelling unit to visitors where lodging is furnished for compensation for a period of less than 30 days, except as allowed by Section 17.76.140 (Bed and Breakfast Inns), or as may be expressly permitted by the City, for the purposes of lodging, weddings, banquets, events, parties, or any other events or gatherings. "For compensation" includes, but is not limited to, rental of the property for money, goods, or services, as well as in-kind exchanges of goods, services, or premises. "Short term rentals" do not include social gatherings hosted by the person or persons residing at the dwellina where the social aatherina is scheduled to occur. Government Code § 36937 states that an urgency ordinance becomes effective immediately if the City Council finds, by a four-fifths vote, that the ordinance is for the immediate preservation of the public peace, safety and welfare of its citizens, residents, visitors and businesses, and in preserving the residential character and quiet enjoyment of the neighborhoods within the City by expanding the definition of a Short Term Rental to include for-profit weddings, banquets, parties, events, and other related gatherings. In addition, an urgency ordinance is appropriate because without an urgency ordinance the amendment to the definition of short term rentals will not take effect for two to three months, during which time the neighborhoods will have to continue to be subjected to 2 noise, trash and traffic impacts. Furthermore, as the holiday season approaches, there is likely to be an increase in events booked at residential properties, with the corresponding increase in adverse impacts, therefore the practice must be prohibited immediately to preserve the public health, safety, and welfare. If the City Council were to adopt the urgency ordinance (Attachment A), the ordinance will become effective immediately. However, Staff also recommends that the City Council initiate code amendment proceedings to amend Title 17. This process would require the Planning Commission to review the draft language and forward a recommendation to the City Council for its consideration. The City Council's adoption of an ordinance through the standard process is recommended by Staff in the unlikely event of a successful challenge to the validity of the urgency ordinance. ALTERNATIVES: In addition to the Staff recommendations, the following alternatives are available for the City Council's consideration: 1. Direct Staff to return with modified Code language for consideration at a future scheduled meeting. 2. Direct Staff to take no action at this time. 9 ORDINANCE NO. U AN URGENCY ORDINANCE OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, AMENDING CHAPTER 17.96 (DEFINITIONS) OF TITLE 17 (ZONING) OF THE CITY'S MUNICIPAL CODE TO EXPAND THE CITY'S DEFINITION OF A SHORT TERM RENTAL WHEREAS, the City of Rancho Palos Verdes Municipal Code prohibits the operation and advertisement of a short-term rental in a single-family and multi -family residential zoning district; and, WHEREAS, the City of Rancho Palos Verdes Municipal Code Section 17.96.1705 defines a short-term rental as "a rental of a dwelling unit or part of a dwelling unit to visitors where lodging is furnished for compensation for a period of less than 30 days, except as allowed by Section 17.76.140 (Bed and Breakfast Inns)" ; and, WHEREAS, City Staff has received multiple complaints about properties in the City being rented on a short-term basis for-profit venues to host weddings, banquets, parties and events. These complaints encompass impacts to the City's residents' quality of life, safety, and general welfare as it pertains to noise, traffic, trash, and crime; and, WHEREAS, the City has a compelling interest in protecting the public health, safety and welfare of its citizens, residents, visitors and businesses, and in preserving the residential character and quiet enjoyment of the neighborhoods within the City by expanding the definition of a Short Term Rental to include for-profit weddings, banquets, parties, events, and other related gatherings; and, WHEREAS, an urgency ordinance is appropriate because without an urgency ordinance the amendment to the definition of short term rentals will not take effect for two to three months, during which time the neighborhoods will have to continue to be subjected to noise, trash, traffics, etc., thus an immediate amendment to what constitutes a prohibited short term rental is required; and, WHEREAS, as the holiday season approaches, there is likely to be an increase in events booked at residential properties, with the corresponding increase in adverse impacts, therefore the practice must be prohibited immediately to preserve the public health, safety, and welfare; and WHEREAS, Government Code Section 36937 expressly authorizes the City Council to adopt an urgency ordinance for the immediate preservation of the public peace, health, or safety, if the ordinance is approved by four-fifths of the City Council. To this end, this Ordinance is adopted for the immediate preservation of the public peace, health, and safety, given the impacts associated with Short -Term Rentals in the City's residential and multi -family zoning districts; and A-1 WHEREAS, pursuant to the provisions of the California Environmental Quality Act, Public Resources Code Sections 2100 et. seq. ("CEQA"), the State's CEQA Guidelines, California Code of Regulations, Title 14, Section 150000 et. seq., the City's Local CEQA Guidelines, and Government Code Section 65962.5(f) (Hazardous Waste and Substances Statement), it has been determined that the proposed Code Amendment is exempt from CEQA, pursuant to Section 15061(b)(3) and Section 15321. Section 15061 states that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The Code Amendment is exempt because it consists only of minor revisions and clarifications to an existing zoning code and will not have the effect of deleting or substantially changing any regulatory standards or findings. The proposed Ordinance is an action that does not have the potential to cause significant effects on the environment, but rather will clarify prohibited uses of residential properties in the City; and WHEREAS, all legal prerequisites to the adoption of the Ordinance have occurred. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, DOES ORDAIN AS FOLLOWS: SECTION 1. The City Council of the City of Rancho Palos Verdes hereby makes the following findings: A. The above recitals are true and correct and incorporated fully herein. B. The City Council finds that the amendments to Chapter 17.96 of the Rancho Palos Verdes Municipal Code are consistent with the City's General Plan and Coastal Specific Plan in that they uphold, and do not hinder, the goals and policies of those plans. C. The City Council finds that the amendments to Chapter 17.96 are necessary to preserve the public health, safety, and general welfare in the City's residential zoning districts. SECTION 2. Section 17.96.1705 is hereby modified to the Rancho Palos Verdes Municipal Code to read, as follows (proposed additions are underlined and proposed deletions are in strikethre unh)• "Short-term rental" means a rental of a dwelling unit or part of a dwelling unit to visitors for compensation for a period of less than 30 days, except as allowed by Section 17.76.140 (Bed and Breakfast Inns), or as may be expressly permitted by the City, for the purposes of lodging, weddings, banquets, events, parties, or any other events or gatherings. "For compensation" includes, but is not limited to, rental of the property for money, goods, or services, as well as in-kind exchanges of goods, services, or premises. "Short term rentals" do not include social gatherings hosted by the person or persons residing at the dwelling where the social gathering is scheduled to occur. Ordinance No. U Page 2 of 4 A-2 SECTION 3. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance, and each and every section, subsection, sentence, clause and phrase thereof not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 4. The City Clerk shall certify to the passage and adoption of this ordinance, and shall make a minute of the passage and adoption thereof in the records of and the proceedings of the City Council at which the same is passed and adopted. This Ordinance shall take effect immediately, pursuant to the authority conferred upon the City Council by Government Code section 36937. The City Clerk shall cause a summary of this ordinance to be published in accordance with Government Code section 36933 in a newspaper of general circulation which is hereby designated for that purpose. SECTION 5. This Urgency Ordinance shall go into effect and be in full force and effect immediately upon its adoption by a four-fifths (4/5) vote of the City Council pursuant to Government Code sections 36934 and 36937. PASSED, APPROVED and ADOPTED this 8th day of November 2017. ATTEST: Emily Colborn, City Clerk Brian Campbell, Mayor Ordinance No. U Page 3 of 4 A-3 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF RANCHO PALOS VERDES I, Emily Colborn, City Clerk of the City of Rancho Palos Verdes, California, do hereby certify that the whole number of the City Council of said City is five; that the foregoing Ordinance No. U was duly adopted by the City Council of said City at a regular meeting thereof held on the 8t" day of November 2017, and that the same was passed and adopted by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: City Clerk Ordinance No. U Page 4 of 4 A-4 ORDINANCE NO. 593 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES AMENDING CHAPTER 17.02 (SINGLE-FAMILY RESIDENTIAL (RS) DISTRICTS), CHAPTER 17.04 (MULTI -FAMILY RESIDENTIAL (RM) DISTRICTS) AND CHAPTER 17.96 (DEFINITIONS) OF TITLE 17 (ZONING) OF THE CITY'S MUNICIPAL CODE TO AFFIRM THE PROHIBITION OF SHORT-TERM RENTALS AND TO PROHIBIT THE ADVERTISEMENT OF SHORT-TERM RENTALS IN THE CITY'S SINGLE-FAMILY AND MULTI- FAMILY RESIDENTIAL ZONING DISTRICTS. WHEREAS, on May 17, 2016, the City Council of the City of Rancho Palos Verdes initiated text amendment proceedings to expressly articulate the existing prohibition on short-term rentals within the City; and, WHEREAS, on July 12, 2016, the Planning Commission considered proposed text amendment language to expressly prohibit short-term rentals and the advertisement of such uses within the City, after which the Planning Commission continued the meeting to allow City Staff time to further research the issue of short-term rentals and to identify additional options for the regulation of such uses; and, WHEREAS, on August 23, 2016, the Planning Commission was presented with options to regulate short-term rentals within the City, and after considering public testimony and evidence presented that evening, the Commission, on a 4-2 vote, recommended to the City Council that short-term rentals be prohibited within the City, with the exception of home sharing, where the property owner is present at all times; and, WHEREAS, on September 20, 2016, the Planning Commission's recommendation was presented to the City Council for consideration, to which the City Council affirmed that pursuant to Section 17.86.030, the City's Development Code is structured as a "permissive zoning system"; thus, because short-term rentals are uses that are not specifically enumerated in the Zoning Code, they are currently prohibited in the City; and, WHEREAS, on October 18, 2016, the City Council was presented with an update on code enforcement activities related to the regulation of short-term rentals, as well as possible code amendments to bolster the City's enforcement framework, and directed Staff to work with the City's Planning Commission to prepare amended code language that would prohibit short-term rentals and the advertisement of short-term rentals; and, WHEREAS, on November 29, 2016, the Planning Commission adopted P.C. Resolution No. 2016-14, recommending that an ordinance be adopted affirming the prohibition of short-term rentals in the City's Residential Zoning Districts (RS and RM), prohibiting the advertising of short-term rentals in the City, and providing definitions for advertising, responsible party and short-term rentals; and WHEREAS, on December 1, 2016, a Public Notice was published in the Peninsula News, providing notice of a public hearing before the City Council on December 20, 2016; and WHEREAS, on December 20, 2016, after notice issued pursuant to the provisions of the Rancho Palos Verdes Municipal Code, the City Council of the City of Rancho Palos Verdes conducted and concluded a duly noticed public hearing concerning the Municipal Code amendments contained herein as required by law, and received testimony from City staff and all interested parties regarding the proposed amendments; and, WHEREAS, pursuant to the provisions of the California Environmental Quality Act, Public Resources Code Sections 21000 et. seq. ("CEQA"), the State's CEQA Guidelines, California Code of Regulations, Title 14, Section 15000 et seq., the City's Local CEQA Guidelines, and Government Code Section 65962.5(f) (Hazardous Waste and Substances Statement), it has been determined that the proposed Code Amendment is exempt from CEQA, pursuant to Section 15061(b)(3) and Section 15321. Section 15061 states that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The Code Amendment is exempt because it consists only of minor revisions and clarifications to an existing zoning code and will not have the effect of deleting or substantially changing any regulatory standards or findings. The proposed Ordinance is an action that does not have the potential to cause significant effects on the environment, but rather will clarify prohibited uses of residential property in the City; and, WHEREAS, City staff and the City Council have received multiple complaints about short-term rentals in the City. Specifically, the City has received complaints about noisy parties disturbing the peace of residential neighborhoods early in the morning and late at night, the parking of oversized party vehicles on residential streets, and an increase in trash in residential neighborhoods; and WHEREAS, the City has a compelling interest in protecting the public health, safety, and welfare of its citizens, residents, visitors and businesses, and in preserving the peace and quiet of the neighborhoods with the City by regulating short-term rentals and the advertising of short-term rentals in the City; and, WHEREAS, all legal prerequisites to the adoption of the Ordinance have occurred. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES ORDAIN AS FOLLOWS: Section 1. The facts set forth in the Recitals are true and correct, and are incorporated herein by reference. Ordinance No. 593 Page 2gf Section 2: The City Council finds that this text amendment to Title 17 is consistent with the Rancho Palos Verdes General Plan and Coastal Specific Plan in that they uphold, and not hinder, the goals and policies of those plans. The City Council further finds that the amendments to Title 17 are express restatements of the existing prohibition on short- term rentals in the City, as the City's Municipal Code is permissive, and short-term rentals are not a permitted use. Section 3: The City Council finds that the amendments to Title 17 expressly prohibiting short—term rentals and the advertisement thereof are necessary to preserve the public health, safety, and general welfare in the City's residential (RS and RM) zoning districts. Section 4. Section 17.02.026 (Short -Term Rentals and Advertisement of Short - Term Rentals) of Chapter 17.02 (Single -Family Residential (RS) Districts) of Article I (Residential Districts) of Title 17 (Zoning) is hereby added as follows: 17.02.026 - Short -Term Rentals and Advertisement of Short-term Rentals a. No Person shall operate a Short -Term Rental in a single family residential zoning districts. b. No Responsible Party shall post, publish, circulate, broadcast or maintain any Advertisement of a Short -Term Rental prohibited in any of the City's single- family residential zoning districts. Section 5. Section 17.04.050 (Short Term Rentals and Advertisement of Short Term Rentals) of Chapter 17.04 (Multiple -Family Residential (RM) Districts) of Article I (Residential Districts) of Title 17 (Zoning) is hereby added as follows: 17.04.050 - Short -Term Rentals and Advertisement of Short-term Rentals a. No Person shall operate a Short -Term Rental in a multi -family residential zoning districts. b. No Responsible Party shall post, publish, circulate, broadcast or maintain any Advertisement of a Short -Term Rental prohibited in any of the City's multi- family residential zoning districts. Section 6. Sections 17.96.025 (Advertisement), 17.96.1593 (Responsible Party), and 17.96.1705 (Short Term Rental) of Chapter 17.96 (Definitions) of Article VIII (Administration) of Title 17 (Zoning) is hereby added as follows: 17.96.025 - Advertisement "Advertisement" means any announcement, whether in a magazine, newspaper, handbill, notice, display, billboard, poster, email, internet website, platform or application, any form of television or radio broadcast or any other form of communication, whose primary purpose is to propose a commercial transaction. Ordinance No. 593 Page 3 of 5 B-3 17.96.1593- Responsible Party "Responsible Party" means any property owner or tenant, or any agent or representative thereof, who causes or permits any violation of this Code. To cause or permit includes failure to correct after receiving notice from the City of the violation. 17.96.1705 - Short -Term Rental "Short -Term Rental" means a rental of a dwelling unit or part of a dwelling unit to visitors where lodging is furnished for compensation for a period of less than thirty days, except as allowed by Section 17.76.140. Section 7. Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this ordinance or its application to any person or circumstance, is for any reason held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this ordinance, or its application to any other person or circumstance. The City Council declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause, phrase hereof, irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable. Section 8. Certification and Posting. The City Clerk shall cause this Ordinance to be posted in three (3) public places in the City within fifteen (15) days after its passage, in accordance with the provisions of Section 36933 of the Government Code. The City Clerk shall further certify to the adoption and posting of this Ordinance, and shall cause this Ordinance and its certification, together with proof of posting, to be entered in the Book of Ordinances of the Council of this City. Ordinance No. 593 Page 46f 5 PASSED, APPROVED and ADOPTED this 17th day of January 2017. ATTEST: Acting City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES )ss CITY OF RANCHO PALOS VERDES ) I, Teresa Takaoka, Acting City Clerk of the City of Rancho Palos Verdes, California, do hereby certify that the whole number of members of the City Council of said City is five; that the foregoing Ordinance No. 593 passed first reading on December 20, 2016, was duly and regularly adopted by the City Council of said City at a special meeting thereof held on January 17, 2017, and that the same was passed and adopted by the following roll call vote: AYES: Brooks, Duhovic, Dyda, Misetich and Mayor Campbell NOES: None ABSENT: None ABSTAIN: None Acting City Clerk Ordinance No. 593 Page 5 of 5 B-5 I! CITY OF Lk RANCHO PALOS VERDES STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS AFFIDAVIT OF POSTING CITY OF RANCHO PALOS VERDES) The undersigned, being first duly sworn, deposes and says: That at all times herein mentioned, she was and now is the Acting City Clerk of the City of Rancho Palos Verdes; That on January 19, 2017, she caused to be posted the following document entitled: ORDINANCE NO. 593, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES AMENDING CHAPTER 17.02 (SINGLE-FAMILY RESIDENTIAL (RS) DISTRICTS), CHAPTER 17.04 (MULTI -FAMILY RESIDENTIAL (RM) DISTRICTS) AND CHAPTER 17.96 (DEFINITIONS) OF TITLE 17 (ZONING) OF THE CITY'S MUNICIPAL CODE TO AFFIRM THE PROHIBITION OF SHORT-TERM RENTALS AND TO PROHIBIT THE ADVERTISEMENT OF SHORT-TERM RENTALS IN THE CITY'S SINGLE-FAMILY AND MULTI -FAMILY RESIDENTIAL ZONING DISTRICTS, a copy of which is attached hereto, in the following locations: City Hall 30940 Hawthorne Blvd. Rancho Palos Verdes Hesse Park 29301 Hawthorne Blvd. Rancho Palos Verdes Ladera Linda Community Center 32201 Forrestal Drive Rancho Palos Verdes I certify under penalty of perjury that the foregoing is a true and correct affidavit of posting. Acting City Clerk