CC SR 20151104 C - SB No 593 Short Term Residential RentalsCITY OF RANCHO PALOS VERDES
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
HONORABLE MAYOR & CITY COUNCIL MEMBERS
GABRIELLA YAP, DEPUTY CITY MANAGERJB'
NOVEMBER 4, 2015
LETTER SUPPORTING SENATE BILL NO. 593 (SB 593)
REGARDING SHORT-TERM RESIDENTIAL RENTALS
REVIEWED BY: DOUG WILLMORE, CITY MANAGER ~
Project Manager: Kit Fox, AICP, Senior Administrative Analyst@
RECOMMENDATION
Authorize the Mayor to sign a letter supporting Senate Bill No. 593 (SB 593) regarding
short-term residential rentals.
FISCAL IMPACT
There is no fiscal impact associated with authorizing the Mayor to sign a letter supporting
SB 593. However, if SB 593 is signed into law (as currently drafted), it may provide the
data necessary for the City to collect additional transient occupancy tax (TOT) from
current and future short-term residential rental operators in the City . It may also-if the
City Council eventually elects to ban or regulate short-term residential rentals in the City-
provide the necessary data to more effectively enforce such a ban or regulations.
However, the imposition of a ban or regulations is also likely to result in increased costs
for enforcement, which are too speculative to reliably estimate at this time.
EXECUTIVE SUMMARY
The City Council has previously expressed support for SB 593 indirectly through its recent
support of League of California Cities (League) 2015 Annual Conference Resolution
No. 3. The League is now soliciting additional letters of support for the bill from individual
cities . Staff has prepared a letter of support for the City Council's consideration, and also
provides background on the issue of short-term residential rentals in Rancho Palos
Verdes and the other cities on the Peninsula.
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MEMORANDUM: Letter Supporting SB 593
November 4, 2015
Page 2
BACKGROUND
With the appearance of on-line short-term residential rental applications and websites
(e.g., Airbnb, VRBO, HomeStay, etc.) in the past few years, many communities are
grappling with the effects of these rental properties appearing in residential
neighborhoods. As an alternative to traditional lodgings such as resorts, hotels and
motels, short-term residential rentals have grown in popularity with travelers. Many of
these rentals are simply rooms in private homes, or even just a couch in the living room.
However, owners are increasingly renting entire homes, condominium units or
apartments on a nightly basis, often for rents that far exceed what these units would
otherwise command on a monthly basis in the traditional monthly rental market.
While the owners of these rentals derive additional income from this activity-as do the
operators of on-line short-term residential rental applications and websites that promote
them-the communities in which they are located often feel the adverse effects of these
rentals. In communities that collect transient occupancy tax (TOT), such taxes should be
remitted to the city by the owner of the rental. While some cities that have enacted
regulations for this rentals do collect some TOT, many short-term rentals owners do not
abide by these regulations or pay the required TOT. In addition, the high turnover and
sometimes overcrowded conditions in these rentals has spillover effects upon
surrounding residents, such as noise, trash, illegal parking, late-night disturbances and
the general sense of unease created by a constant flow of strangers in and out of
neighborhoods.
At the recent League of California Cities Annual Conference in San Jose, the city of West
Hollywood put forth an Annual Conference Resolution in support of Senate Bill No. 593
(SB 593), which prohibits the operators of transient residential hosting platforms from
advertising residential units for tourist or transient use if such use will violate any
ordinance, regulation, or law within the applicable city that opts into its provisions; and
requires the confidential quarterly reporting to the city (if the city adopts an ordinance
requiring the reporting of the data) of information regarding the address of such units, the
total number of nights occupied for tourist or transient use, and the total amounts paid for
such use. On September 15, 2015, the City Council directed Mayor Knight (the City's
League voting delegate) to support this resolution. It was subsequently adopted at the
General Assembly meeting on October 2, 2015.
With the adoption of the League resolution, the League is now seeking additional support
for SB 593. Therefore, Staff has prepared the attached draft letter of support for the
Mayor's signature. In addition, Staff provides additional background on the state of the
current regulation of short-term residential rentals in the City and in the surrounding cities
on the Palos Verdes Peninsula.
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MEMORANDUM: Letter Supporting SB 593
November 4, 2015
Page 3
DISCUSSION
SB 593
Presently, many cities prohibit the renting of residences for less than thirty (30) days.
However, these prohibitions are frequently ignored by on-line short-term residential rental
applications and websites, causing unwanted burdens on cities while reducing TOT
collection from sanctioned hotels and other transient lodgings. For the cities that do allow
short-term residential rentals, most require hosts to register and that TOT be paid.
Registration and payment of TOT in these cities are based upon owners' voluntary
reporting of their rental activity. However, cities have been unable to obtain this
information due to the fact that on-line short-term residential rental applications and
websites pass their responsibility on to individual homeowners. This lack of oversight
and enforcement presents a gap in accountability, and as a result, local laws and
regulations are not being followed.
The "Thriving Communities and Sharing Economy Act" (SB 593) will provide local
jurisdictions with the data and framework necessary to collect TOT revenues from short-
term residential rentals to pay for vital local services; or conversely, the data necessary
to help cities enforce local regulations designed to ensure the safety of the public and
residents living adjacent to short-term rentals if those rentals are not allowed. Where
short-term residential rentals are legal, the bill will assist local jurisdictions in their
regulation and collection of TOT. Where short-term residential rentals are illegal by local
ordinance, the bill will prohibit on-line short-term residential rental applications and
websites from legally making or facilitating such a rental. The most-recent version of
SB 593 is attached to tonight's report, as is a draft letter of support for the Mayor's
signature.
Rancho Palos Verdes Regulations
Currently, the City of Rancho Palos Verdes does not expressly prohibit short-term
residential rentals. Based upon a recent search of the Airbnb website, Staff identified at
least seventeen (17) properties offering rooms or whole houses for short-term rental in
Rancho Palos Verdes. There may be additional properties listed on other similar
applications and websites. The City's Municipal Code includes provisions to allow the
operation of bed-and-breakfast inns (B&Bs) with the approval of a conditional use permit
(CUP).1 The definition of B&B in the Municipal Code reads as follows:
[Any] building or portion thereof containing one or more guest rooms, which
is designed, intended or used primarily for the accommodation of transient
1 RPVMC Section 17.76.140
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MEMORANDUM: Letter Supporting SB 593
November 4, 2015
Page 4
travelers for overnight stays, which do not occupy the premises for more
than twenty-one days out of any twelve month period and which meals are
provided to the transient travelers as part of the overnight stay.2
By definition, a B&B must provide meal service for guests, but meal service is not typically
a feature of many short-term residential rentals. Therefore, many of these rentals will
probably not qualify for the approval of a CUP.
The Municipal Code also permits the operation of home-based businesses in single-
family homes.3 Such businesses should be registered with the City by obtaining a
business license, but the reality is that there may be home-based businesses-not just
short-term residential rentals-that are not licensed. In general, home-based businesses
are supposed to be operated in such as manner so as not to result in noise, traffic, parking
or other impacts that would differ substantially from those that would be associated with
a "regular" single-family residence. Code Enforcement Staff do occasionally receive
complaints from neighbors about these rentals, usually as the result of noise, trash,
parking and late-night partying. In these instances, Staff works with the owners of these
properties to eliminate these nuisance effects, but not to prevent further short-term
rentals. The City does not currently collect TOT from any of the short-term residential
rentals of which we are aware.
Other Peninsula Cities' Regulations
• Palos Verdes Estates: On October 13, 2015, the Palos Verdes Estates City Council
tasked its Planning Commission with the formulation of recommendations to ban or
regulate short-term residential rentals in Palos Verdes Estates. A copy of the Staff
report is attached.
• Rolling Hills: On June 8, 2015, the Rolling Hills City Council adopted Ordinance
No. 342 (attached), banning short-term residential rentals in Rolling Hills. This action
was taken upon the recommendation of the Rolling Hills Planning Commission.
• Rolling Hills Estates: Rolling Hills Estates does not currently have a ban or regulations
relating to short-term residential rentals in place. However, according to the Rolling
Hills Estates Planning Director, such rentals are considered businesses (not home-
based businesses), which are not permitted in residential zones in Rolling Hills
Estates.
2 RPVMC Section 17.96.240
3 RPVMC Chapter 17.08
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MEMORANDUM: Letter Supporting SB 593
November 4, 2015
Page 5
• San Pedro (Los Angeles): On June 2, 2015, the Los Angeles City Council approved
a motion (attached) directing its Staff to formulate regulations for short-term residential
rentals.
ADDITIONAL INFORMATION
On September 28, 2015, the City received a petition signed by forty-four (44) residents of
the Los Verdes neighborhood that asks the City to ban short-term residential rentals in
Rancho Palos Verdes (see attachments). These residents live in a neighborhood where
a home is currently listed on Airbnb, offering four (4) bedrooms for rent individually at $89-
$99/night. In 2012, the City investigated a complaint that the property was being used as
a B&B without the required CUP. The case was subsequently closed when it was
determined that its operations did not meet the City's definition of a B&B and, therefore,
did not require a CUP.
CONCLUSION
In conclusion, Staff recommends that the City Council authorize the Mayor to sign a letter
supporting SB 593.
ALTERNATIVES
In addition to the Staff recommendation, the following alternative actions are available for
the City Council's consideration:
1. Do not authorize the Mayor to sign the support letter for SB 593.
Attachments:
• Draft letter supporting SB 593 (McGuire) (page 6)
• League Resolution No. 3, as approved 10/2/15 (page 7)
• SB 593 (McGuire), as amended through 6/10/15 (page 9)
• Palos Verdes Estates City Council Staff report of 10/13/15 (page 17)
• Rolling Hills Ordinance No. 342, as adopted on 6/8/15 (page 48)
• Los Angeles City Council motion of 6/2/15 (page 55)
• Petition from Los Verdes residents, received 9/28/15 (page 57)
M:\Legislative lssues\SB 593 (McGuire)\20151104_StaffRpt_CC.docx
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November 4, 2015
Honorable Mike McGuire
California State Senate
State Capitol, Room 5064
Sacramento, CA 95814
RE: SB 593 (McGuire) Transient Residential Hosting Platforms.
Notice of Support
Dear Senator McGuire:
VIA FAX: (916) 651-4902
On behalf of the City of Rancho Palos Verdes, I would like to convey our support for SB 593, as amended
June 1 ot11
, which bolsters local efforts to effectively regulate land use impacts and collect applicable taxes
from transient residential rentals.
Where temporary rental of residential units is allowed by local regulation, the associated transient
occupancy tax (TOT) should also be collected. These units are in direct competition with hotels, motels and
other accommodations where guests pay the local transient occupancy tax, so all such uses should be
subject to the same tax. The revenues generated support local streets, roads, fire, police, lifeguards, trash
pick-up, park maintenance and other local public services which directly affect local quality of life and the
attraction of the community for a visitor.
These transient residential units also may create additional noise, traffic, parking, privacy and public safety
issues, subvert local rent-control laws, decrease available housing stock and in some cases turn residential
neighborhoods into de-facto hotel rows, all of which negatively impact our city.
At this time, we are aware of a few homes in Rancho Palos Verdes that are regularly offered as short-term
rentals, but the City currently receives no TOT from any of these properties. The City has also begun to
receive complaints about some of these operations, typically regarding noise, trash, parking and late-night
partying. Also, as the other cities on the Palos Verdes Peninsula have begun to enact bans or regulations for
short-term residential rentals, we anticipate that the loss of TOT and nuisance impacts of these operations
will only increase in Rancho Palos Verdes in the future.
SB 593 bolsters existing local authority in this area and provides a helpful regulatory framework that
agencies may choose in lieu of exercising their existing authority.
We appreciate your leadership on this important issue and for these reasons, the City of Rancho Palos
Verdes supports SB 593.
Sincerely yours,
Jim Knight
Mayor, City of Rancho Palos Verdes
cc: Rancho Palos Verdes City Council
Doug Willmore, City Manager
Gabriella Yap, Deputy City Manager
Kit Fox, Senior Administrative Analyst
Jeff Kiernan, League of California Cities, jkiernan@cacities.org
Meg Desmond, League of California Cities, mdesmond@cacities.org
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3. A RESOLUTION OF THE LEAGUE OF CALIFORNIA CITIES SUPPORTING SB
593 (MCGUIRE) AND CONTINUED LOCAL FLEXIBILITY FOR CITIES AS THEY
ADDRESS NEIGHBORHOOD AND FISCAL IMP ACTS OF TEMPORARY
RENTALS OF RESIDENTIAL UNITS
Source: City of West Hollywood
Concurrence of five or more cities/city officials: Cities of Healdsburg, Mammoth Lakes, Napa,
Piedmont, Santa Cruz, Santa Monica, Sonoma
Referred to: Housing, Community & Economic Development; Revenue & Taxation Policy
Committees
Recommendation to General Resolutions Committee:
WHEREAS, the temporary rental of residential houses, condominiums, rooms, and
apartments for tourist or transient use is a developing part of the sharing economy; and
WHEREAS, while these rentals provide additional options to the traveling public, and
income to affected property owners or tenants, it is also impotiant that such rentals comply with
local laws, regulations and ordinances; and
WHEREAS, the temporary rental of residential houses, condominiums, rooms, and
apartments for tourist or transient use can present numerous challenges to neighborhoods and
adjacent property owners and create additional noise, traffic, parking, privacy and public safety
issues, subvert local rent-control laws, decrease available housing stock and in some cases turn
residential neighborhoods into de-facto hotel rows; and
WHEREAS, where temporary rental of residential units for tourist or transient use is
allowed in conformance with local laws, regulations and ordinances, the applicable transient
occupancy tax (TOT) should also be collected. The temporary rental of residential units for
tourist or transient use is in direct competition with hotels, motels and other accommodations
where guests pay the local TOT, so all such uses should be subject to the same tax. The revenues
generated support local streets, roads, fire, police, lifeguards, trash pick-up, park maintenance and
other local public services which directly affect local quality oflife and the attraction of the
community for a visitor; and
WHEREAS, the Thriving Communities and Sharing Economy Act, introduced as SB
593 by Senator Mark McGuire (D-2 Healdsburg), prohibits the operators of transient residential
hosting platforms from advertising residential units for tourist or transient use if such use will
violate any ordinance, regulation, or law within the applicable city or county that opts into its
provisions, and requires the confidential quarterly reporting to the city or county of the following
information (if the City or County adopts an ordinance requiring the reporting of the data):
1. The address of each residential unit that was occupied for tourist or transient use during
the quarterly period.
2. The total number of nights the residential unit was occupied for tourist or transient use.
3. The amounts paid for the occupancy of the residential unit for tourist or transient use.
WHEREAS, the provisions of SB 593 bolster existing local authority to enforce local
ordinances and collect revenue associated with the temporary rental ofresidential units by
allowing local agencies access to the data necessary to enforce their ordinances and requiring
short-term rental hosting platforms to collect local TOT and remit it to the appropriate jurisdiction
if short-term rentals are allowed in that jurisdiction; and
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WHEREAS, the provisions of SB 593 provide a helpful regulatory framework that cities
and counties may choose in lieu of exercising their existing authority; and
WHEREAS, the League of California Cities supports SB 593 because it recognizes and
preserves local flexibility to address the temporary rental of residential units in the manner that
best fits with the unique issues and conditions found in each local jurisdiction; and
WHEREAS, SB 593 provides local jurisdictions with the data and framework necessary
to collect TOT revenues from short-term rentals, to pay for vital local services; and
WHEREAS, SB 593 provides local jurisdictions with the data and framework necessary
to enforce local regulations designed to ensure the safety of the public and residents living
adjacent to short-term rentals; and
WHEREAS, despite any existing challenges faced by cities in regulating or collecting
revenue from the temporary rental of residential units, cities would oppose any effort to
undermine their existing local authority to regulate land use or collect local TOT revenue.
RESOLVED, at the League of California Cities General Assembly, assembled at the
League Annual Conference on October 2, 2015 in San Jose, as follows:
1. Land use regulation and local tax collection are best overseen and implemented
locally.
2. While temporary rental of residential units can offer innovative opportunities for
travelers and property owners within the developing sharing economy, cities must
retain flexibility to address any problems raised by such uses in a manner that reflects
the unique issues and conditions in their communities.
3. Cities have existing legal authority and tools to regulate and collect revenue from the
temporary rental of residential units, and SB 593 provides the data and framework
that supports and bolsters such local efforts.
4. The League encourages cities to support SB 593.
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AMENDED IN SENATE JUNE 10, 2015
AMENDED IN SENATE MAY 6, 2015
AMENDED IN SENATE APRIL 29, 2015
AMENDED IN SENATE APRIL 6, 2015
SENATE BILL
Introduced by Senator McGuire
(Coauthor: Senator Leno)
February 27, 2015
No. 593
An act to add Article 12 (commencing with Section 53170) to Chapter
1 of Part 1 of Division 2 of Title 5 of the Government Code, relating
to local government.
LEGISLATIVE COUNSEL'S DIGEST
SB 593, as amended, McGuire. Residential units for tourist or
transient use: transient residential hosting platforms.
The California Constitution authorizes a county or city to make and
enforce within its limits all local, police, sanitary, and other ordinances
and regulations not in conflict with general laws. Existing law also
authorizes a city, county, or city and county to impose a transient
occupancy tax upon occupancies of lodgings of no more than 30 days.
This bill would require an operator of a hosting platform, as defined,
to report speeified infonnation quarterly to the eity, eounty, or eity and
eounty. The bill would authorize a eity, eounty, or city and county, by
ordinance, to opt out from receiving reports and to subsequently opt
back in, 'vvith 90 days' advance notiec of that ordinanec to the operator
of a hosting platform and to impose a fine or penalty on an operator
that fails to provide the report, as spceificd. The bill 'vVould prohibit an
operator ofa hosting platfonn from facilitating the rental ofa residential
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SB 593 -2-
unit offered for occupancy for tourist or transient use, if such a use of
that residential unit, or the offering of that residential unit for such a
use, is prohibited by an ordinance ofthc city, county, or city and county
in which that residential unit is located. The bill ·.vould authorize a city,
county, or city and county, by ordinance, to establish a fine or penalty
on an operator of a hosting platform, as specified, for a knowing
violation of this provision. The bill v1ould authorize a city, county, or
city and county to require an operator of a hosting platform to collect
and remit applicable local transient occupancy tax.
This bill would authorize a city, county, or city and county to adopt
an ordinance that would require a transient residential hosting platform,
as defined, to report specified information quarterly to the city, county,
or city and county, and to establish, by ordinance, a fine or penalty on
a transient residential hosting platform for failure to provide the report.
The bill would make the information in the report confidential and
require that it not be disclosed. The bill would authorize the city, county,
or city and county receiving the report to use the report solely for
transient occupancy tax and zoning administration. The bill would also
authorize a city, county, or city and county to require a transient
residential hosting platform to collect and remit applicable transient
occupancy tax.
The bill, where a specified ordinance has been adopted, would
prohibit a transient residential hosting platform from facilitating
occupancy of a residential unit offered for tourist or transient use in
violation of any ordinance, regulation, or law of the city, county, or
city and county, and would authorize a city, county, or city and county,
by ordinance, to establish a civil fine or penalty on an operator of a
transient residential hosting platform for a knowing violation of this
provision.
This bill would also require the operator of a transient residential
hosting platform to disclose specified information regarding insurance
coverage in the transient residential hosting platform agreement with
an offeror of a residential unit.
Existing constitutional provisions require that a statute that limits
the right of access to the meetings of public bodies or the writings of
public officials and agencies be adopted with findings demonstrating
the interest protected by the limitation and the need for protecting that
interest.
This bill would make legislative findings to that effect.
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-3-SB 593
The California Constitution requires local agencies, for the purpose
of ensuring public access to the meetings of public bodies and the
writings of public officials and agencies, to comply with a statutory
enactment that amends or enacts laws relating to public records or
open meetings and contains findings demonstrating that the enactment
furthers the constitutional requirements relating to this purpose.
This bill would make legislative findings to that effect.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
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The people of the State of California do enact as follows:
SECTION 1. Article 12 (commencing with Section 53170) is
added to Chapter 1 of Part 1 of Division 2 of Title 5 of the
Government Code, to read:
Article 12. Thriving Communities and Sharing Economy Act
7 53170. (a) This article shall be known, and may be cited, as
8 the Thriving Communities and Sharing Economy Act.
9 (b) The Legislature finds and declares that transient residential
10 hosting platforms are doing business in California by facilitating
11 the occupancy of property located in California.
12 53171. fat-For purposes of this article:
13 (1) "Hosting
14 (a) (1) "Transient residential hosting platfonn" means-a
15 marketplace that is created for the primary purpose of facilitating
16 a person or entity that facilitates the rental of a residential unit
17 offered for occupancy for tourist or transient use for compensation
18 to the offeror of that unit, and the operator of the transient
19 residential hosting platform derives revenues, including booking
20 fees fees, subscription charges, or advertising revenues, from
21 providing or maintaining that marketplace. "Facilitating" revenues.
22 "Facilitate" includes, but is not limited to, the act of allowing the
23 offeror of the residential unit to offer or advertise the residential
24 unit on the Internet Web site provided or maintained by the
25 operator.
26 (2) "Transient residential hosting platform" does not include
27 anyone licensed to practice real estate as defined in Section 10130
28 of the Business and Professions Code.
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2 (b) "Offeror" ineludes an O'Nner or lessee means the owner,
3 lessee, or other person or entity with the legal right to occupy or
4 authorize the occupancy of a residential unit.
5 E31
6 (c) "Residential unit" means a dwelling unit in a private
7 residence, including a single-family residence, an apartment or
8 other leased premises, a residential condominium unit, or any other
9 residential real estate improvement. "Residential unit" does not
10 include individual guest rooms, eondominium units, timeshare
11 units, eabins, or similar guest aeeommodations rented to transient
12 guests rooms in a hotel, inn, or similar transient lodging
13 establishment operated by an innkeeper, as defined in subdivision
14 (a) of Section 1865 of the Civil Code.
15 (d) "Tourist or transient use" means 30 days or fewer.
16 (e) "Operator" includes any corporation, partnership, or
17 individual that provides or maintains a transient residential hosting
18 platform.
19 (b) (1) Exeept as prO'vided in paragraph (2), the operator of a
20 53172. All of the following shall apply only within the
21 jurisdiction of a city, county, or city and county that adopts an
22 ordinance applying this section within its jurisdiction:
23 (a) A transient residential hosting platfonn shall report quarterly
24 to the city, county, or city and county all of the following
25 information:
26 ft\}
27 (I) The address of each residential unit that was offered on the
28 operator's hosting platform for oeeupaney for tourist or transient
29 use and was oeeupied for that use occupied for tourist or transient
30 use during that quarterly period.
31 tB1
32 (2) The total number of nights that the residential unit was
33 occupied for tourist or transient use.
34 fBJ
35 (3) The amounts paid for the occupancy of that residential-unit.-
36 unit for tourist or transient use.
3 7 (2) A eity, eounty, or eity and eounty may, by ordinanee, opt
3 8 out from reeeiving reports from an operator of a hosting platform
39 under paragraph (1) at any time and, subsequently, may, by
40 ordinanee, opt baek in to reeeive the reports. A eity, eounty, or
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1 city and county shall provide the operator of a hosting platform
2 v;ith 90 days' advance notice of an ordinance adopted under this
3 paragraph.
4 t31
5 (b) A city, county, or city and county may, by ordinance,
6 establish a fine or penalty on an operator of a a transient residential
7 hosting platform that fails to provide a report required pursuant to
8 this subdivision section not to exceed the amount of one thousand
9 dollars ($1,000) for the first failure, two thousand dollars ($2,000)
10 for the second failure, and five thousand dollars ($5,000) for a
11 third or subsequent failure, to be imposed after the city, county,
12 or city and county has provided written notice to the operator of
13 the failure, has given the operator transient residential hosting
14 platform an opportunity to provide the report within 30 days of
15 receiving the written notice, and the operator transient residential
16 hosting platform failed to provide the report within that period.
17 t41
18 (c) Any civil fines or penalties shall be paid to the city, county,
19 or city and county that established the fine or penalty.
20 (c) (1) An operator of a
21 (d) (I) Notwithstanding any other law, including the California
22 Public Records Act, as set forth in Chapter 3.5 (commencing with
23 Section 6250) of Division 7 of Title I, the iriformation in the report
24 required pursuant to this subdivision is confidential and shall not
25 be disclosed.
26 (2) The city, county, or city and county receiving the report
27 shall use the information in the report solely for the administration
28 of transient occupancy tax and zoning.
29 (e) The city, county, or city and county may require a transient
30 residential hosting platform to collect the transient occupancy tax
31 imposed by that local agency, and to remit that tax to that agency.
32 The authority granted by this subdivision is in addition to any
33 other provision of state or local law that authorizes a city, county,
34 or city and county to require a transient residential hosting
35 platform or any other person or entity to collect and remit transient
36 occupancy tax.
37 53173. (a) A transient residential hosting platform shall not
38 facilitate the rental occupancy of a residential unit offered for
39 occupancy for tourist or transient use if such a use of that
40 residential unit, or the offering of that residential unit for such a
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1 use, is prohibited by an ordinance the occupancy will violate any
2 ordinance, regulation, or law of the city, county, or city and county
3 county, in which that residential unit is located. located, that has
4 applied Section 5 317 2 within its jurisdiction.
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6 (b) A city, county, or city and county that has applied Section
7 53172 within its jurisdiction may, by ordinance, establish a civil
8 fine or penalty on an operator of a transient residential hosting
9 platform that knowingly violates this subdivision section not to
10 exceed the amount of one thousand dollars ($1,000) per day for
11 the first violation, two thousand dollars ($2,000) per day for a
12 second violation, and five thousand dollars ($5,000) per day for a
13 third or subsequent violation. An operator of a hosting platform
14 shall be deemed to have knowingly violated this subdivision if a
15 city, county, or city and county has previously provided the
16 operator 'Nith a copy, including a copy in electronic form, of its
1 7 ordinance prohibiting the use of a residential unit located within
18 its boundaries for occupancy for tourist or transient use, or the
19 offering of that unit for such a use, has given written notice of a
20 known violation to the operator, has given the operator an
21 opportunity to cease facilitating the rental of that residential unit
22 within 30 days of receiving the Vv'rittcn notice, and the operator
23 failed to cease 'vVithin that period. violation to be imposed after the
24 city, county, or city and county has provided written notice to the
25 operator of a transient residential hosting platform of the failure
26 to abide by the respective ordinance, has given the operator of the
27 transient residential hosting platform an opportunity to correct
28 the violation within 30 days of receiving the written notice, and
29 the operator of the transient residential hosting platform failed to
30 correct the violation within that period.
31 f31
32 (c) Any civil fines or penalties shall be paid to the city, county,
33 or city and county that established the fine or penalty.
34 (d) A city, county, or city and county may require the operator
3 5 of a hosting platform to collect applicable transient occupancy tax
36 imposed by that local agency, and to remit that tax to that agency.
37 53174. An operator of a transient residential hosting platform
38 shall disclose the following in the transient residential hosting
39 platform agreement with an ojferor:
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1 (a) That an offeror should review his or her home or renter's
2 insurance policy to ensure that there is appropriate insurance
3 coverage in the event that a person sustains an injury or loss on
4 the offeror 's property, a person damages or causes loss to an
5 offeror 's personal or real property, or a claim or lawsuit is made
6 against the offeror or otherwise arises out of activities related to
7 the transient residential hosting platform.
8 (b) If the operator of the transient residential hosting platform
9 provides insurance coverage, that the insurance coverage is
10 provided and the limits of liability. If the insurance provided by
11 the operator of the transient residential hosting platform is excess,
12 secondary, or contingent upon an offeror 's home or rental
13 insurance, the operator of the transient residential hosting platform
14 shall explicitly explain to the offeror when the offeror 's insurance
15 is primary or first in line to cover liabilities arising out of the
16 activities relating to the transient residential hosting platform.
17 53175. Nothing in this article shall be construed to preempt a
18 city, county, or city and county law regulating operators of
19 transient residential hosting platforms.
20 SEC 2. The Legislature finds and declares that Section 1 of
21 this act, which adds Section 53172 to the Government Code,
22 imposes a limitation on the public 's right of access to the meetings
23 of public bodies or the writings of public officials and agencies
24 within the meaning of Section 3 of Article I of the California
25 Constitution. Pursuant to that constitutional provision, the
26 Legislature makes the following.findings to demonstrate the interest
27 protected by this limitation and the need for protecting that
28 interest:
29 Where a city, county, or city and county adopts an ordinance
30 applying Section 53172 of the Government Code within its
31 jurisdiction, in order to ensure that the information disclosed to
32 local public agencies in the reports required by Section 53172 of
33 the Government Code is not used for purposes other than the
34 limited public purposes specified in that section, it is necessary to
3 5 limit the disclosure of those reports.
36 SEC 3. The Legislature finds and declares that Section 1 of
37 this act, which adds Section 53172 to the Government Code,
38 furthers, within the meaning of paragraph (7) of subdivision (b)
39 of Section 3 of Article I of the California Constitution, the purposes
40 of that constitutional section as it relates to the right of public
95
15
SB 593 -8-
1 access to the meetings of local public bodies or the writings of
2 local public officials and local agencies. Pursuant to paragraph
3 (7) of subdivision (b) of Section 3 of Article I of the California
4 Constitution, the Legislature makes the following findings:
5 If a city, county, or city and county adopts an ordinance applying
6 Section 53172 of the Government Code within its jurisdiction,
7 limiting disclosure of a record obtained by the local public agency
8 for purposes of tax and zoning administration furthers the purposes
9 of Section 3 of Article I of the California Constitution by
10 appropriately balancing the interest in public disclosure with
11 ensuring that this information is not used for improper purposes.
0
95
16
IHCOltPORATED 1939
TO:
THRU:
FROM:
SUBJECT:
DATE:
The Issue
MEMORANDUM
Agenda Item #: 5
Meeting Date: October 13, 2015
HONORABLE MAYOR AND CITY COUNCIL MEMBERS
ANTON DAHLERBRUCH, CITY MANAGER
SHERI REPP LOADSMAN, PLANNING & BUILDING DIRECTOR iY.
REVIEW AND DISCUSS SHORT TERM OR VACATION
RENTALS WITHIN RESIDENTIAL AREAS
OCTOBER 13, 2015
Shall the City Council consider adopting regulations to prohibit or control the ability for
residential properties to be used for short term or vacation rentals for periods of less than
30 days?
Background and Analysis
The City has received a number of complaints related to short term or vacation rentals.
These rentals provide options to the traveling public and income to the affected host
property owner or tenant. Over the past year, there has been an increase in the number of
properties being offered on websites such as Airbnb, ShortTermHousing and
HomeAway.
In review of the City's Municipal Code, a Bed and Breakfast Inn is the closest use to a
short tenn or vacation rental. The Municipal Code provides the following definition:
17 .08 .055 Bed and breakfast inn.
"Bed and breakfast inn" means a facility offering transient lodging accommodations to
the public and providing kitchen facilities adequate to provide meals to guests of the
facility only and not otherwise open to the public. (Ord. 700 § 2 (Exh. 1), 2012)
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The Bed and Breakfast Inn definition does not apply to most short tenn or vacation
rentals since there is generally not a component of meal service integrated into the
service. As such, the short term and vacation rentals could be seen as a prohibited use.
The common thread between a Bed and Breakfast Inn or short term and vacation rentals
is that these tenns describe a dwelling unit (or part of) that is rented for a period of less
than 30 consecutive days. A distinguishing feature of these types of vacation rentals is
that the property owner/operator may or may not reside on the site or occupy a portion of
the residential unit concurrently with guests. The term "homestay" is also becoming a
commonly used tenn for vacation rentals. In a homestay dwelling, the owner pennanently
resides in the residence and rents out portions of the dwelling, either at the same time as
the owner occupies the unit or during time petiods when the owner may be vacationing or
occupying another property.
The increased demand for short tenn or vacation rentals is relatively new. Many cities
are reviewing their ordinances to detennine if new definitions and regulations should be
enacted. Over the past several years, cities have more closely defined "short term
rentals", "vacation rentals" and "homestays" as a means of suppo1ting visitors and
providing revenue through the ability to collect transit occupancy taxes (TOT). In other
cases, cities have detennined that such uses are inconsistent with the residential character
and have prohibited such uses. The problem is that cities that do allow for these short
term or vacation rentals often have hosts that do not comply with local requirements and
TOT is not paid. For cities with prohibitions, the hosts and online vacation rental
businesses ignore the laws and potentially cause challenges within neighborhoods and
excessive demands on city services.
The Thriving Communities and Sharing Economies Act, introduced as Senate Bill 593,
will require online vacation rental businesses to stop advertising rental units if such use
violates any ordinance, regulation or law, within the applicable city that opts into the
bill's provisions, require the confidential quarterly reporting of the address of each
residential unit, number of nights occupied and amount paid for the occupancy and
require collection of the TOT (if use is allowed and TOT required by city) so that cities
can pay for vital local services. On October 2, 2015, the League of California Cities
adopted a resolution supporting SB 593.
The City's Municipal Code does not provide sufficient regulation for short term or
vacation rental uses. The Municipal Code only defines the Bed and Breakfast Inn use and
is "silent" on short term or vacation rentals, in effect, precluding this use. Over the past
year, the City received complaints that were both general and specific in nature. The Staff
advised that the use could be prohibited unless eligible for a conditional use permit if
defined as a Bed and Breakfast Inn. Before c01mnencing enforcement actions, the City
Council is requested to consider the pros and cons of having short term or vacation
rentals. There is need to update the City's Municipal Code to provide clear prohibition of
such uses or to establish appropriate standards that allow for a balanced use which does
not significantly impact neighborhoods and adjoining properties.
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The City Council may initiate the preparation of an ordinance amendment by referring
the matter to the Planning Commission for further study. Depending on the City
Council's interests, the Staff can include a public outreach process to obtain community
feedback and to specifically contact those properties that may have been utilized for short
tenn and vacation rentals. A standard public hearing process may also be utilized to
solicit community input.
Fiscal Impact
The City does not have the ability to collect transient occupancy tax and would not
benefit from any potential revenues if short tenn or vacation rentals were to be pennitted.
Regulation could involve significant code enforcement activity to document host
locations and to verify compliance with permitting and operational requirements.
There would be costs associated with public outreach, preparation of the ordinance
amendment and the public hearing process.
Notification
This matter has been agendized and posted in the routine manner.
Alternatives Available to the City Council
1. Refer the matter to the Planning Commission with direction to hold a public
hearing to consider prohibiting or regulating the short-term or vacation rental of
residential properties.
2. Decline to refer the matter to the Planning Commission
3. Discuss and provide direction.
Recommendation
It is recommended that the City Council refer the matter to the Planning Commission
with direction to hold a public heaiing to consider prohibiting or regulating the short-tenn
or vacation rental ofresidential properties.
ATTACHMENTS:
A -Senate Bill 593
B -Infonnation related to Resolution adopted by the League of California Cities
C -Written communication received from Elizabeth Kallas
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10/7/2015 Bill I ext-::>B-593 Residential units for tourist or transient use: transient residential hosting platforms. ~~~~--~~~~~~~~~~~~~~~~~~~~~~~-#5.
{1-'"lf~1'Zt:cr-. ?! LEGISLATIVE INFORMATION
bTTACHMENT: Al
SB-593 Residential units for tourist or transient use: transient residential hosting platforms. (201s-2016)
SENATE BILL
AMENDED IN SENATE JUNE 10, 2015
AMENDED IN SENATE MAY 06, 2015
AMENDED IN SENATE APRIL 29, 2015
AMENDED IN SENATE APRIL 06, 2015
CALIFORNIA LEGISLATURE-2015-2016 REGULAR SESSION
Introduced by Senator McGuire
(Coauthor: Senator Leno)
February 27, 2015
No.593
An act to add Article 12 (commencing with Section 53170) to Chapter 1 of Part 1 of Division 2 of Title
5 of the Government Code, relating to local government.
LEGISLATIVE COUNSEL'S DIGEST
SB 593, as amended, McGuire. Residential units for tourist or transient use: transient residential hosting
platforms.
The California Constitution authorizes a county or city to make and enforce within its limits all local, police,
sanitary, and other ordinances and regulations not in conflict with general laws. Existing law also authorizes a
city, county, or city and county to impose a transient occupancy tax upon occupancies of lodgings of no more
than 30 days.
This bill 'NOUld require an operator of a hosting platform, as defined, to report specified information quarterly to
the city, county, or city and county. The bill would auH1orize a city, count·;, or city and county, by ordinance, to
opt out from receiving reports and to subsequently opt back in, with 90 days' advance notice of that ordinance
to the operator of a hosting platform and to impose a fine or penalt'i' on an operator that fails to provide the
report, as specified. The bill would prohibit an operator of a hosting platform from facilitating the rental of a
residential unit offered for occupancy for tourist or transient use, if such a use of that residential unit, or the
offering ol' that residential unit for such a use, is prohibited by an ordinance of the city, county, or city and
county in which that residential unit is located. The bill would authorize a city, county, or city and county, by
ordinance, to establish a flne or pcnalt·; on an oper-ator of a hosting platform, as specified, for a knowing
violation of this provision. The bill would authorize a city, county, or city and county to require an operator of a
hosting platform to collect and remit applicable local transient occupancy taJ<.
This bill would authorize a city, county, or city and county to adopt an ordinance that would require a transient
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1017/2015 Bill Text· SB-593 Residential units for tourist or transient use: transient residential hosting platforms.
residential hosting platform, as defined, to report specified information quarterly to the city, county, or city and
county, and to establish, by ordinance, a fine or penalty on a transient residential hosting platform for failure to
provide the report. The bill would make the information In the report confidential and require that it not be
disclosed. The bill would authorize the city, county, or city and county receiving the report to use the report
solely for transient occupancy tax and zoning administration. The bill would also authorize a city, county, or
city and county to require a transient residential hosting platform to collect and remit applicable transient
occupancy tax.
The bill, where a specified ordinance has been adopted, would prohibit a transient residential hosting platform
from facilitating occupancy of a residential unit offered for tourist or transient use in violation of any ordinance,
regulation, or law of the city, county, or city and county, and would authorize a city, county, or city and county,
by ordinance, to establish a civil fine or penalty on an operator of a transient residentiaf hosting platform for a
knowing violation of this provision.
This bill would also require the operator of a transient residential hosting platform to discfose specified
information regarding insurance coverage in the transient residential hosting platform agreement with an
offeror of a residential unit.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public
bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest
protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of
public bodies and the writings of public officials and agencies, to comply with a statutory enactment that
amends or enacts laws relating to public records or open meetings and contains findings demonstrating that
the enactment furthers the constitutional requirements relating to this purpose.
This bill would make legisfative findings to that effect.
Vote: majority Appropriation: no Fiscal Committee: no Local Program: no
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 12 {commencing with Section 53170) is added to Chapter 1 of Part 1 of Division 2 of Title 5
of the Government Code, to read:
Article 12. Thriving Communities and Sharing Economy Act
53170. (a) This article shall be known, and may be cited, as the Thriving Communities and Sharing Economy
Act.
(b) The Legislature finds and declares that transient residential hosting platforms are doing business in
California by facilitating the occupancy of property located in California.
53171. fe1For purposes of this article:
( l)"Hosting
(a) (1) "Transient residential hosting platform" means a marketplace that is created for the primary purpose of
facilitating a person or entity that facilitates the rental of a residential unit offered for occupancy for tourist or
transient use for compensation to the offeror of that unit, and the operator of the transient residential hosting
platform derives revenues, including booking-fees. fees, subscription charges, or advertising revenues, from
providing or maintaining that marketplace. "Facilitating!-! revenues. "Facilitate" includes, but is not limited to,
the act of allowing the offerer of the residential unit to offer or advertise the residential unit on the Internet
Web site provided or maintained by the operator.
(2) "Transient residential hosting platform" does not Include anyone licensed to practice real estate as defined
in Section 10130 of the Business and Professions Code.
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1U/7/2U1b Sill 1 ext-::il:l-593 Residential units tor tourist or transient use; transient residential hosting platforms.
(b) "Offeror"-ift€k:taes an owner or lessee means the owner, lessee, or other person or entity with the legal
right to occupy or authorize the occupancy of a residential unit.
(c) "Residential unit" means a dwelling unit in a private residence, including a single-family residence, an
apartment or other leased premises, a residential condominium unit, or any other residential real estate
improvement. "Residential unit" does not include individual guest rooms, condominium units, timeshare units,
cabins, or simllar guest accommodations rented to transient guests rooms in a hotel, inn, or similar transient
lodging establishment operated by an innkeeper, as defined in subdivision (a) of Section 1865 of the Civil Code.
{d) "Tourist or transient use" means 30 days or fewer.
(e) "Operator" includes any corporation, partnership, or individual that provides or maintains a transient
residential hosting platform.
(b)(l)Except as provided in paragraph (2), the operator of a
53172. All of the following shall apply only within the jurisdiction of a city, county, or city and county that adopts
an ordinance applying this section within its jurisdiction:
(a) A transient residential hosting platform shall report quarterly to the city, county, or city and county all of
the following information:
( 1) The address of each residential unit that was offered on the operator's hosting platform for occupancy for
tourist or transient use and was occupied for that use occupied for tourist or transient use during that quarterly
period.
(2) The total number of nights that the residential unit was occupied for tourist or transient use.
(3) The amounts paid for the occupancy of that residential--ttflfu unit for tourist or transient use.
(2)A city, county, or city and county may, by ordinance, opt out from receiving reports from an operator of a
hosting platform under paragr-aph (1) at any time and, subsequently, may, by ordinance, opt back in to receive
the reports. A city, county, or city and county shall provide the operator of a hosting platform with 90 days'
advance notice of an ordinance adopted under this paragraph.
(b) A city, county, or city and county may, by ordinance, establish a fine or penalty on an operator of a a
transient residential hosting platform that fails to provide a report required pursuant to this subdivision section
not to exceed the amount of one thousand dollars ($1,000) for the first failure, two thousand dollars ($2,000)
for the second failure, and five thousand dollars {$5,000) for a third or subsequent failure, to be imposed after
the city, county, or city and county has provided written notice to the operator of the failure, has given the
operator transient residential hosting platform an opportunity to provide the report within 30 days of receiving
the written notice, and the operator transient residential hosting platform failed to provide the report within
that period.
(c) Any civil fines or penalties shall be paid to the city, county, or city and county that established the fine or
penalty.
(c)(l)An operator of a
(d) ( 1) Notwithstanding any other law, including the California Public Records Act, as set forth in Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1, the information in the report required pursuant to this
subdivision Is confidential and shall not be disclosed.
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iu1r1zu1::i t:1111 1 ext-::>l:l-::>\J;.51-<es1oent1a1 urnts tor tourist or transient use: transient res1oent1a1 hosting plattorms.
(2) The city, county, or city and county receiving the report shall use the information in the report solely for
the administration of transient occupancy tax and zoning.
(e) The city, county, or city and county may require a transient residential hosting platform to collect the
transient occupancy tax imposed by that local agency, and to remit that tax to that agency. The authority
granted by this subdivision is In addition to any other provision of state or local law that authorizes a city,
county, or city and county to require a transient residential hosting platform or any other person or entity to
collect and remit transient occupancy tax.
53173. (a) A transient residential hosting platform shall not facilitate the-Fe-Al:-a4 occupancy of a residential unit
offered for occupancy for tourist or transient use if such a use of that residential unit, or the offering of that
residential unit for such a use, is prohibited by an ordinance the occupancy will violate any ordinance,
regulation, or Jaw of the city, county, or city and-€etlnty county, in which that residentia I unit is located.
located, that has applied Section 53172 within its jurisdiction.
(b) A city, county, or city and county that has applied Section 53172 within Its jurisdiction may, by ordinance,
establish a civil fine or penalty on an operator of a transient residential hosting platform that knowingly
violates this subdivision section not to exceed the amount of one thousand dollars ( $1,000) per day for the first
violation, two thousand dollars ($2,000) per day for a second violation, and five thousand dollars ($5,000) per
day for a third or subsequent violation. An operator of a hosting platform shall be deemed to have knowingly
violated this subdivision if a city, county, or city and county has previously provided the operator with a copy,
including a copy in electronic form, of its ordinance prohibiting the use of a residential unit located within its
boundaries for occupancy for tourist or transient use, or the offering of that unit for such a use, has given
written notice of a known violation to the operator, has given the operator an opportunity to cease facilitating
the rental of that residential unit within 30 days of receiving the written notice, and the operator failed to cease
within that period. violation to be imposed after the city, county, or city and county has provided written notice
to the operator of a transient residential hosting platform of the failure to abide by the respective ordinance,
has given the operator of the transient residential hosting platform an opportunity to correct the violation
within 30 days of receiving the written notice, and the operator of the transient residential hosting platform
failed to correct the violation within that period.
(c) Any civil fines or penalties shall be paid to the city, county, or city and county that established the fine or
penalty.
(d)A city, county, or city and county may require the operator of a hosting platform to collect applicable
transient occupancy taJ< imposed by that local agency, and to remit that tm< to that agency.
53174. An operator of a transient residential hosting platform shall disclose the following in the transient
residential hosting platform agreement with an offeror:
(a) That an offeror should review his or her home or renter's insurance policy to ensure that there is
appropriate insurance coverage in the event that a person sustains an injury or loss on the offeror's property, a
person damages or causes loss to an offeror's personal or real property, or a claim or lawsuit Is made against
the offeror or otherwise arises out of activities related to the transient residential hosting platform.
(b) If the operator of the transient residential hosting platform provides insurance coverage, that the insurance
coverage is provided and the limits of liabilfty. If the insurance provided by the operator of the transient
residential hosting platform is excess, secondary, or contingent upon an offeror's home or rental insurance, the
operator of the transient residential hosting platform shall explicitly explain to the offeror when the offeror's
insurance is primary or first in line to cover liabilities arising out of the activities relating to the transient
residential hosting platform.
53175. Nothing in this article shall be construed to preempt a city, county, or city and county law regulating
operators of transient residential hosting platforms.
SEC. 2. The Legislature finds and declares that Section 1 of this act, which adds Section 53172 to the
Government Code, imposes a limitation on the publfc's right of access to the meetings of public bodies or the
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10!712015 Bill Text -::513-593 Residential units tor tourist or transient use: transient residential hosting platforms.
writings of public officials and agencies within the meaning of Section 3 of Article I of the California
Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to
demonstrate the interest protected by this limitation and the need for protecting that interest:
Where a city, county, or city and county adopts an ordinance applying Section 53172 of the Government Code
within its jurisdiction, in order to ensure that the fnformation disclosed to local pubfic agencies in the reports
required by Section 53172 of the Government Code is not used for purposes other than the limited public
purposes specified in that section, it is necessary to limit the disclosure of those reports.
SEC. 3. The Legislature finds and declares that Section 1 of this act, which adds Section 53172 to the
Government Code, furthers, within the meaning of paragraph (7) of subdivision (b) of Section 3 of Article I of
the California Constitution, the purposes of that constitutional section as it relates to the right of public access
to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to
paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes
the following findings:
If a city, county, or city and county adopts an ordinance applying Section 53172 of the Government Code within
its jurisdiction, limiting disclosure of a record obtained by the local public agency for purposes of tax and zoning
administration furthers the purposes of Section 3 of Article I of the California Constitution by appropriately
balancing the interest In public disclosure with ensuring that this information is not used for improper purposes.
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'a!if'ornia state legislature to enact legislation that empowers local government to presen·e the
res· 1ential character of neighborhoods necessmy to effect state policy regarding group homes asfhllows:
Amend the state law to provide the same distancing and notice requirements for ADPfacilities as
· doesfor Community Care Act.fctcilities;
2. En ·t legislation providing standards that prevent overconcentration cf unlicensed sober living
home o maintain residential character (fneighborhoods which has therapeutic benefit for the
occupan \and. . . . . . ...
3. Restrict th( omng preempt!Onfor licensed ADP.faczfztzes to those owned and operated bv 11011-
prt?flt 01ganiz ions.
~ '
Fiscal Impact:
Minor, if any.
Comment: ""
1) The League has significant exis~ng policy in this area. In the past the League has had internal
task forces and sponsored and sur)ported various legislative proposals.
2) Making significant progress in this ~hbas been difficult in the Capitol. Federal and state fair
~10us.ing and an~i-discrimination lmvs and\~rious c~urt d~cisions have bearing 0~1 !ocal a:1thority
m this area. Patient advocacy groups and sy1npathet1c legislators have been susp1c1ous of any
solutions that they see as limiting patient acce~"[lrns, any effort to develop solutions to address
local land use concerns must also remain sensitive'~ these issues and the perspective of
legislators that sit on committees with jurisdiction in't<bese areas.
Existing League Policy: "'
Related to this Resolution, existing policy provides:
• The League supports permitting cities to exercise review and Ian use regulation of group home
facilities and residential care facilities in residential neighborhoods 'ncluding the application of
zoning, building and safety standards. State and county licensing age~ies should be required to
confer with the city's planning agency in determining whether to grant }t(cense to a community
care facility. The League recognizes that better review and regulation of re~ iential care facilities
will protect both the community surrounding a facility and the residents \vithir a facility from a
poorly managed facility or the absence of state oversight.
• The League supports state legislation to require a minimum distance of 300 feet bet\' en all new
and existing residential care facilities. The League supports notification of cities about
conditional release participants residing in group homes.
RESOLUTION REFERRim TO HOUSING, COMMUNITY & ECONOMIC DEVELOPMENT
AND REVENUE & TAXATION POLICY COMMITTEES
3. A RESOLUTION OF TH.E LEAGUE OF CALIFORNIA CITIES SUPPORTING SB 593
(MCGUIRE) AND CONTINUED LOCAL FLEXIBILITY FOR CITIES AS THEY ADDRESS
NEIGHBORHOOD AND FISCAL IMPACTS OF TEMPORARY RENTALS OF
RESIDENTIAL UNITS
Source: City of West Hollywood
Concurrence of five or more cities/citv officials: Cities of Healdsburg, Mammoth Lakes. Napa,
Piedmont, Santa Cruz, Santa Monica. Sonoma
Referred to: Housing, Community & Economic Development; Revenue & Taxation Policy Committees
Recommendation to General Resolutions Committee:
12
25
WHEREAS, the temporary rental ofresidential houses, condominiums, rooms, and apartments
for tourist or transient use is a developing part of the sharing economy; and
WHEREAS, while these rentals provide additional options to the traveling public, and income to
affected property owners or tenants, it is also important that such rentals comply with local laws,
regulations and ordinances; and
WHEREAS, the temporary rental ofresidential houses, condominiums, rooms, and apartments
for tourist or transient use can present numerous challenges to neighborhoods and adjacent property
owners and create additional noise, traffic, parking, privacy and public safety issues, subvert local rent-
control laws, decrease available housing stock and in some cases turn residential neighborhoods into de-
facto hotel rows; and
WHEREAS, where temporary rental ofresidential units for tourist or transient use is allowed in
conformance with local laws, regulations and ordinances, the applicable transient occupancy tax (TOT)
should also be collected. The temporary rental of residential units for tourist or transient use is in direct
competition with hotels, motels and other accommodations where guests pay the local TOT, so all such
uses should be subject to the same tax. The revenues generated suppo11 local streets, roads, fire, police,
lifeguards, trash pick-up, park maintenance and other local public services which directly affect local
quality of life and the attraction of the community for a visitor; and
WHEREAS, the Thriving Communities and Sharing Economy Act, introduced as SB 593 by
Senator Mike McGuire (D-2, Healdsburg), prohibits the operators of transient residential hosting
platforms from adve1tising residential units for tourist or transient use if such use will violate any
ordinance, regulation, or law within the applicable city or county that opts into its provisions, and requires
the confidential quarterly reporting to the city or county of the following information (if the City or
County adopts an ordinance requiring the reporting of the data):
1. The address of each residential unit that was occupied for tourist or transient use during the
quarterly period.
2. The total number of nights the residential unit was occupied for tourist or transient use.
3. The amounts paid for the occupancy of the residential unit for tourist or transient use.
WHEREAS, the provisions of SB 593 bolster existing local authority to enforce local ordinances
and collect revenue associated with the temporary rental of residential units by allowing local agencies
access to the data necessary to enforce their ordinances and requiring shmt-term rental hosting platforms
to collect local TOT and remit it to the appropriate jurisdiction if short-term rentals are allowed in that
jurisdiction; and
WHEREAS, the provisions of SB 593 provide a helpful regulatory framework that cities and
counties may choose in lieu of exercising their existing authority; and
WHEREAS, the League of California Cities supports SB 593 because it recognizes and
preserves local flexibility to address the temporary rental of residential units in the manner that best fits
with the unique issues and conditions found in each local jurisdiction; and
WHEREAS, SB 593 provides local jurisdictions with the data and framework necessary to
collect TOT revenues from short-term rentals, to pay for vital local services; and
WHEREAS, SB 593 provides local jurisdictions with the data and framework necessary to
enforce local regulations designed to ensure the safety of the public and residents living adjacent to short-
term rentals; and
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WHEREAS, despite any existing challenges faced by cities in regulating or collecting revenue
from the temporary rental of residential units, cities would oppose any effort to undermine their existing
local authority to regulate land use or collect local TOT revenue.
RESOLVED, at the League of California Cities General Assembly, assembled at the League
Annual Conference on October 2, 2015 in San Jose, as follows:
t. Land use regulation and local tax collection are best overseen and implemented locally.
2. While temporary rental ofresidential units can offer innovative opportunities for travelers
and property owners within the developing sharing economy, cities must retain flexibility to
address any problems raised by such uses in a manner that reflects the unique issues and
conditions in their communities.
3. Cities have existing legal authority and tools to regulate and collect revenue from the
temporary rental of residential units, and SB 593 provides the data and framework that
supports and bolsters such local efforts.
4. The League encourages cities to suppo1t SB 593.
/////I/Ill
Background Information on Resolution No. 3
Source: City of West Hollywood
Background:
The sharing economy has quickly become common place in the everyday life of many individuals,
whether they participate in ride-sharing, have rented a sho1t-term residential unit, or live in a community
were either is prevalent. The sharing economy has provided benefits to many, but also includes many
issues that must be addressed in order to allow these sharing practices to effectively incorporate into our
communities. Specifically, the short-term rental ofresidential units has grown exponentially within the
last several years throughout the State, and its impacts need to be addressed.
Presently, many cities and counties prohibit the renting ofresidences for less than 30 days. However,
these prohibitions are frequently ignored by Online Vacation Rental Businesses ("OVRBs"), causing
unwanted burdens on cities while reducing TOT collection from sanctioned hotels. The short-term rental
of residential properties presents numerous challenges within neighborhoods and to adjacent prope1ty
owners. They may create additional noise, traffic, parking, privacy and public safety issues, subvert local
rent-control laws, decrease available housing stock and in some cases turn residential neighborhoods into
de-facto hotel rows. The rentals facilitated by OVRB's in these cities and counties go against the
expressed wishes of the residents.
For the cities and counties that do allow short-term residential rentals, most require hosts to register and
that transient occupancy taxes be paid. However, registration and payment of TOT in these cities and
counties are based on the owners of the short terms residential units voluntarily repo1ting their rental
activity. However, there has been a severe under-registration of hosts and underpayment of TOT. Only
I 0% of hosts in San Francisco have followed the city ordinance to register. Sonoma County has had to
spend in excess of $200,000 in an attempt to track down those rentals that are not paying the required
TOT under the ordinance. And Los Angeles is cmTently experiencing a rental housing shortage due in
part to the recent popularity of OVRBs.
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Cities and counties have been unable to obtain this information due to the fact that OVRB's pass their
responsibility to individual homeowners. This lack of oversight and enforcement presents a gap in
accountability, and as a result, local laws and regulations are not being followed.
Sen. Mike McGuire's Thriving Communities and Sharing Economy Act (SB 593) will provide local
jurisdictions with the data and framework necessary to collect TOT revenues from sho1t-term rentals, to
pay for vital local services; or conversely, the data necessary to help cities enforce local regulations
designed to ensure the safety of the public and residents living adjacent to sho1t-term rentals, if those
rental are not allowed.
Specifically, SB 593 would: 1) Prohibit the operators of short-term residential hosting platforms from
advertising residential units for tourist or transient use if such use will violate any ordinance, regulation,
or law, within the applicable city that opts into the bill's provisions; 2) Require short-term rental housing
platforms to collect and remit applicable transient occupancy tax (if short-tenn rentals are allowed in the
city and the collection of TOT is required by the city); and 3) Require the confidential quarterly reporting
of the address of each residential unit that was occupied for tourist or transient use during the quarterly
period, the total number of nights the residential unit was occupied for tourist or transient use, and the
amounts paid for the occupancy of the residential unit for tourist or transient use.
The premise of SB 593 is simple: reinforce local laws already on the books. Where vacation rentals are
legal, the bill will assist local jurisdictions in their regulation and collection of Transient Occupancy
Taxes, (TOT) as more than 430 cities and 56 counties impose a TOT. Where vacation rentals are illegal
by local ordinance, the bill will prohibit online vacation rental businesses from making a rental.
The Thriving Communities and Sharing Economies Act will empower local control, provide desperately
needed funding for parks, local roads, fire and police services, and promote safe neighborhoods. SB 593
will require online vacation rental businesses to disclose information to cities and counties and/or collect
and disperse Transient Occupancy Tax dollars -projected to be in the hundreds of millions of dollars
statewide.
The emerging short term rental industry is an important segment of the state economic fabric and an issue
of statewide importance. SB 593 would assist in facilitating a shared economy that will be beneficial to
California's cities and their residents.
/II/Ill///
League of California Cities Staff Analysis on Resolution No. 3
Staff: Dan Carrigg
Committees: Housing, Community & Economic Development; Revenue & Taxation
Summarv:
This Resolution seeks to highlight and increase support for SB 593 (McGuire), which is pending in the
Legislature. SB 593, titled the Thriving Communities and Sharing Economy Act, seeks to bolster local
efforts to regulate and collect transient occupancy taxes from the temporary rental of residential houses,
condominiums, rooms, and apa1tments for tourists and transient use. The League is currently in support
of this legislation.
Background:
The City of West Hollywood and other cities are sponsoring the resolution in an effort to expand
awareness of the issue among cities and encourage additional support for SB 593. They view the
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legislation as helpful in bolstering local efforts to appropriately regulate a growing vacation rental
industry.
The author introduced SB 593 based upon his past experience as both former Mayor of Healdsburg and a
Sonoma County Supervisor. These areas are popular with tourists, and the affected communities are
facing increasing land use and revenue collection issues. SB 593 is currently on the Senate Floor and is
considered a "two-year bill," meaning that it cannot move until January 2016.
In addition to the League, SB 593 has a broad range of support:
Support: American Federation of State, County, and Municipal Employees, AFL-CIO; American Hotel
and Lodging Association; Asian American Hotel Owners Association; American Insurance Association;
Association of California Insurance Companies; Andaz West Hollywood General Manager Lin Schatz;
Association for Los Angeles Deputy Sheriffs; City of Big Bear Lake; Borrego Springs Chamber of
Commerce & Visitors Bureau; California Apartment Association; California Association of Boutique and
Breakfast Inns; California Association of County Treasurers and Tax Collectors; California Apartment
Association; California Association of Code Enforcement Officers; California College and University
Police Chiefs Association; California Narcotics Officers Association; California Police Chiefs
Association; California Hotel and Lodging Association; California Labor Federation; California
Professional Firefighters; California State Association of Counties; California Teamsters Public Affairs
Council; Contra Cost County Treasurer-Tax Collector Russell Watts; Paul Desterman, Mindy Desterman;
El Dorado County Treasurer-Tax Collector C.L. Raffety; Douglas Engmann; Fairmont San Jose General
Manager Kelley Cosgrove; Hilton Los Angeles/Universal City General Manager Mark Davis; Hotel
Association of Los Angeles; Hotel Council of San Francisco; Humboldt County Convention and Visitors
Bureau; International Faith Based Coalition; League of California Cities; Long Beach Firefighter
Association; Los Angeles Alliance for a New Economy; Los Angeles Police Protective League; Town of
Mammoth Lakes; Marin County Council of Mayors and Councilmembers; Marriot Courtyard in Larkspur
General Manager Sam Pahlavan; Denise McNicol; Mendocino County Board of Supervisors; Mendocino
County Treasurer-Tax Collector Shari Schapmire; Mono County Board of Supervisors; Ashok Mukherje;
National Association of Mutual Insurance Companies; Neighbors for Overnight Oversight; Jenny Oaks;
Pacific Association of Domestic Insurance Companies; Riverside Sheriffs Association; Rural County
Representatives of California; Sacramento Hotel Association; San Diego County Hotel-Motel
Association; San Franciscans for Reasonable Growth; San Luis Obispo County Auditor-Controller-
Treasurer-Tax Collector James Erb; San Mateo County Central Labor Council; Santa Cruz County
Convention and Visitors Council; Service Employees International Union; ShareBetter San Francisco;
Sierra County Auditor-Treasurer-Tax Collector Van Maddox; Siskiyou County Treasurer-Tax Collector
Wayne Hammar; Sonoma County Auditor-Controller-Tax Collector David Sundstrom; Sonoma County
Board of Supervisors; City of Thousand Oaks; Tulare County Auditor-Controller-Treasurer-Tax Collector
Rita Woodard; Tuolumne County Treasurer-Tax Collector Shelley Piech; UNITE-HERE, AFL-CIO;
United Firefighter of Los Angeles City, Local #112; Natasha Yankoffski.
Opposition: Airbnb; Consumer Watchdog; Internet Association, TechNet.
Fiscal Impact:
Transient Occupancy Taxes are a significant source oflocal revenue. Many cities and counties are
encountering challenges identifying units in their conununity that are being used as vacation rentals and
collecting associated revenue. Where vacation rentals are permitted by local ordinance, the passage of SB
593 can assist local efforts, thereby increasing local revenues to suppo1t local services.
Comment:
3) Earlier this year the League's Housing Community and Economic Development Committee and
Revenue and Taxation Committee reviewed an earlier version of SB 593 and initially adopted a
16
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29
Support, If Amended position, which was concurred with by the League board. The author later
incorporated the League's amendments into the bill and the League issued a support letter on the
current version of the bill.
4) Local governments already have extensive authority to regulate land use and collect local taxes.
While vacation rentals may be an increasingly popular option for the traveling public, local
ordinances are beginning to adjust. The League supports SB 593 because it is crafted in a way
that supports local authority in dealing with this emerging issue. Local agencies can either opt in
to its provisions or continue to address issues differently under their existing local authority.
Existing League Policy:
Related to this Resolution, existing policy provides:
HCED Policy: The League believes that local zoning is a primary function of cities and is an essential
component of home rule.
Rev. & Tax Policv: Additional revenue is required in the state/local revenue structure. There is not
enough money generated by the cmrent system or allocated to the local level by the current system to
meet the requirements of a growing population and deteriorating services and focilities.
RESOLlJTlON REI<'ERRED TO ENVIRONMENTAL QUALITY POLICY COMMITTEE
RESOLUTION CALLING UPON TIU: GOVEHJ'!OR AND THE LEGISLATURE TO
WORK WITH THE LEA GUI~ OI<, CALIFORNIA CITIES TO ENACT LEGISLATION OR
'()OTHERWISE COlVIPEL SOUTHERN CALIFORNIA EDISON TO CREATE A
PR GRAM TO AUTOMATICALLY PROVIDE DIRECT COJVIPENSATION TO ITS
CUS'I MERS AFFECTED BY PROLONGED ELECTRICAL PO\VER OUT AGES UNDER
CIRCUMST A.,,~CES.
Source: City of Rancfl Palos Verdes
.~_9ncu1-reJ}f,t;: __ Qf.flY~LD1 ·e cities/city officials: Cities of Hermosa Beach, Lomita, Palos Verdes Estates,
Rolling Hills and Rolling H~tates
Referred to: Environmental ~ty Policy Committee
Recommendations to General RescJtu.tions Committee:
WHEREAS, local governments fr~{:alifornia are often reliant upon investor-owned private utility
companies for the provision of electrical powe ·to their citizens, businesses and institutions; and,
WHEREAS, the reliability and consistency (electrical supply and transmission is critically
important to local governments to ensure the protection 't>.(the public safety, health and general \Velfare of
communities; and, "°""'
WHEREAS, prolonged disruptions in electrical servi~~ 'eopardize the health of citizens who
have a variety of physical challenges and rely on a constant source of wer for medical devices; the
safety of senior citizens who are particularly susceptible to injury if pow ·outages persist for long periods
of time into evening hours; and the financial well-being of citizens, business , and institutions that suffer
from the loss of food, medication and other perishable items during prolonged p wer outages; and,
WHEREAS, Southern California Edison (SCE), an investor-owned utility sen' 1g 15 million
customers in Southern and Central California, experiences frequent and prolonged service isruptions due
to both planned and unplanned outages. equipment failures and weather-related events. which dversely
affect local governments within its service area; and, ~
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30
I #s.
ATTACHMENT: C1
From:
To:
Subject:
Date:
Yi<kie KrooebergPr
Vickie Krooeberger 0 ,) , __ J ,J
Attachments:
FW: Airbnb In Palos Verdes Estates -PPT Deck -City Council Agenda Item 10/13/2015
Tuesday, October 06, 2015 8:15:27 AM
Airlmtl -1'229 Via Margarita 09"14"2015 REV 01 pp\:X
image004.pn.g
-1:' "~,i:~J~
'·--cc-::ITY:::-:-:C:::-:L-:::E:::-R!\
PALOS VERDES ESTATES ----
From: Elizabeth D Kallas [rr.~
Sent: Tuesday, October 06, 2015 7:07 AM
To: James c:ioodhart <jgoodbart@nvestat~'S ocg>; Ellisa Hall <ehall(wpvesrates.orrp; Sheri Repp
Subject: Airbnb in Palos Verdes Estates -PPT Deck -City Council Agenda Item 10/13/2015
Good Morning-
Thank you for letting us know that Airbnb will be discussed at the city council meeting scheduled for
October 13, 2015.
As you are aware, we have been living across the street from a home that has been listed on Airbnb
since June 2014. We first notified the city of the existence of this listing in April 2015. We have had
multiple guests in our neighborhood since this time and there are currently guests as I type this.
It is our firm belief that this is not congruent with the character of our city and hope that the city council
and planning commission will address this issue and preserve the quality of life of Palos Verdes Estates
residents.
Attached please find a PowerPoint deck with the actual listing, multiple reviews substantiating the
frequency of visitors to our neighborhood, as well as pictures showing the activity.
We also believe that since they are operating a business without a business license and/or conditional
use permit as directed in the municipal code, that the city is in a position to take action immediately.
(See affachedfile: Airbnb ····· 1329 Via Margarita 09' l-!'2015 _REV 0 l.pptx)
Thank you for your attention to this matter.
This message contains information that may be confidential and privileged Unless you are the
addressee (or authorized to receive mail for the addressee), you should not use .. copy or disclose to
anyone this message or any information contained 111 this message. If you have received this message
31
Airbnb -1329 Via Margarita
Palos Verdes Estates, CA 90274
• 1329 Via Margarita -Listed on Airbnb -June 2014
• Multiple Guests in Neighborhood -currently 33
reviews on Airbnb website
• Increased Traffic & Parking on Via Margarita
• Decreased Privacy, Safety and Security
• Not congruent with quiet residential neighborhood
and nature of Palos Verdes Estates
• Operating without permissions, licenses, permits -
unregulated
Airbnb, Home Away and VRBO -on/ine community
marketplaces where guests can book spaces from
hosts for short term and long term rental of property.
Airbnb In Palos Verdes Estates since June 2014
Airbnb -1329 Via Margarita
Palos Verdes Estates, CA 90274
Please Address Airbnb in Palos Verdes Estates:
• Land Use Regulations
• Zoning Ordinances
• Building and Housing Regulations
• Business License Requirements
• Conditional Use Permits
• Transient Occupancy Tax
• Update Municipal Code
https://www.airbnb.com/rooms/3380283
Please assist us with maintaining the integrity of our neighborhood
#5.
10/6/2015
1 32
Airbnb -Documented Problems
Simple internet search yields problems with Airbnb
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\VVJ\'f hutfingtcnpost com: h~irbob-h<)rmr .sl.(111-=~• ..• nn5G1-H52 htrni ""
,Jul 29. 2014 ... · Proh!(tms <1ri:> inct>JM;b!y f,1(13, bt1t ',;!wri h<iopnti. \'N woli< hJid to try and
h.;ilp tn<ll<•~ lhmQC. right." A!rb11b wrotu HuffPJ'.Jt:l in im
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yuw \)Ue5l'!i money. C'iCll ir ir:; i:l )'~<H ,md Hw d;:ii:i;
Alrbnb G11M! Storhn AifbnL CompNiturn -Hos: S1otmt> Aidmb rnnhlnwrn
f\Jrbnb Is a Problem [qr Cities Likf,tl0.YL'.r'.9lt'1!lrJ.~Q-~Frnn£rn.m.,,,
'b\'N1 nytimes.com< airbnbs i\drbnQ,;5.a,probl~m .. for.t.iHeS··!!Xe~n1~;::-vor\¥ litWv
sran~frarK1sco ..
tlkoli.i G-0!ifltl~ h ,l
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Parties
Disruptive to neighbors/neighborhood
Airbnb -1329 Via Margarita
Palos Verdes Estates, CA 90274
Palos Verdes, resort like home
#5.
10/6/2015
2 33
Airbnb -1329 Via Margarita
Palos Verdes Estates, CA 90274
About this listing
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Gt-t-wf\y 0~1>0.:.il: $2.SO
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C!Wck In: 3:00 PM
C!wck Out: 11:00 AM
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Airbnb -Location. 1329 Via Margarita
Palos Verdes Estates, CA 90274
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#5.
10/6/2015
3 34
Airbnb -1329 Via Margarita
Palos Verdes Estates, CA 90274
Listing
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Airbnb -1329 Via Margarita
Palos Verdes Estates, CA 90274
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About the Host-Member since June 2014
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#5.
10/6/2015
4 35
Airbnb -1329 Via Margarita
Palos Verdes Estates, CA 90274
Reviews -33 as of 10/6/2015
Reviews (:s:>n
Reviews From Guests
My ~J!llfrinnrt <ind t hnva!Nl 10 ';10\Hh-0a1 LI\ ~:md <kY:idod to hy Aid~nfL H wu~; a pk~i't>Jtt} to
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lfoi~p-(.lrue frnrn Tl1i; • Joi:h1 th~nk you rot .·,>.it:J\ ti fk1t,·~HwJ u~vii;,w, 'lh lhomunmy nr1jqy~.>d vour ul<iy ;md !ool<.
forw::in.l to fotwu vUit;l wnen yo:f!i~ tn ~:; t>i <1~plri. fiti & Frnnk
Host encourages visitors to return
Airbnb -1329 Via Margarita
Palos Verdes Estates, CA 90274
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4 Review in August 2015 Alone speaks to frequency
#5.
10/6/2015
5 36
Airbnb -1329 Via Margarita
Palos Verdes Estates, CA 90274
4 in August 2015
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Airbnb -1329 Via Margarita
Palos Verdes Estates, CA 90274
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#5.
10/6/2015
6 37
Airbnb -1329 Via Margarita
Palos Verdes Estates, CA 9027 4
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c1rn1 arH~ vbit wH!1 UB, ltlB1)k you for ~hMkig ;:iH th<: lntnff;:~lln~~ ~~torlo,--,, H,wg « <Wh\ Hp
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Airbnb -1329 Via Margarita
Palos Verdes Estates, CA 9027 4
I !Ii !Kt •M':k, M;\f'\Y tlnnk1 l<ir th!~ hrn;pH;i!i!y J'l)U n>mw("d rny morn ,ind i1~w frf1;.i~t1. PHly V~Tin'!
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#5.
10/6/2015
7 38
Airbnb -1329 Via Margarita
Palos Verdes Estates, CA 90274
rT l~fld Fnmk Ol(O vmy n!co ponp!r,-, My ~·~)f1 !ik~.-d t(; pl<l}' ·~vHt' (f-,~F\, Bf'!d !'1(1 lWUf,(> i>:
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Airbnb -1329 Via Margarita
Palos Verdes Estates, CA 90274
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?~ ftMpdrt'1U from T!t!:
~ H1;b~rt, Thi!r:k y0~; ~H) nw-:-:!\ to,. th(i WM!1~ •\mi t:..lmt c~l>nNH>fll~; tam1 ).'Dur p.1iw-1l!i. n·wy
:":>r>-, df1li<Jl1ttul · ::;,J at;bn.lt ,it!!! poi.itiv<•, ~1i1!d ot r<>V~"Hn b!ff<tnt!
#5.
10/6/2015
8 39
Airbnb -1329 Via Margarita
Palos Verdes Estates, CA 90274
AMAZlNG!!H!l 1 iH am.l famk tur< oc~rH:mu<;> ~md khd, Th~y ow 1-icr:uftlg i<n(i dow;~·to·t~~~.r!h
f>OOpk thzit wll! iinmt":dfaitdy mi<kV" }'O'J fo(!l t:cm1od;iblo -..mrJ \'<,'o'.!!C<;.nW fri tf•:(<fr b<:;,;.n.itifol tiom,;::,
dflfhlWJy ?N;or~)!'lW~HI thk h~tino tu om~;Jl!~i w:N '>'<'N~tf; to rnbx H·d tmwlfH:i in <i tiufy ~ip(icfa<:t;!iH
Ht•Hhfl. Tno \i<l'<vu aH~ unpniHHtANl, with lu~rn «nd frnfj(Mt fo!h<fVJ trial <..'<ilrnn tno ::>(:~~';w:. Th.i.~
plf~t~!r("' <io riot dzi j~.u;ticn on !)0\.'1 ab~:olo!Hly r1.•m:irk«hlo thh; horn~ !r,,
lhu:pon~~frorn Tld:
Tl'<rnk yt.;u fot t:)H dor;~wnt rnvk;V>'! !'rn i<(l gbd yD<J ~JQ'-10 vu UV> i)f}fmrHmHy t0 1>0. yo\;(
ho$t, Yi.:a..i .;:iit~ ~;{} courkmJ•; ;rnd co:-isldt>rnk a'<d h<1!1k 9·~d ! tmj<JyB<l t•IJ( tm~t: vfith :nu
v<..•r1 rm<ch, fhMk you for tho l9vi:;!y <.<miPu o)nd h~~ UH:n;~Jhtfu! ~oto c,:a,d. Wr: hr;p0 y::;v
<.t+ill .<ita}' in low.ii imd nrnH.! ba<:i<: :mr.l vh.;H i.i~ ;;~pin.
nr•1t cf ~;H: Tltl, frnnk 1nd tlH'l hO~!<l{~ MO ;)ff!,u;innt \Ni)t:m n·1y Hund <:lt!tl i .m+./t~rl WC cot:t(ln't
b1~i!-0vo what w~ !;aW, Thb 11ou$:~ \.Vlth t•wt wor:.dwful vti~~,,.. b n~uc.!1 ri-i<irG t;·1;m wo lmvu
l'JXf>0'.:t(<tL t n.iaHy WCf".)/l)l'!)Q:)ti lhh; pli<(:(_l to 1.myot1() \V<lO fuH: 1h(f O~ll'1CO 10 gc,) ~hNC!ll V<h
011Joy~1d 01..1r tvw nlnht~ wf~ ?-i,w~~ nhip:'cl l!11Ht.\ '·' bL Af>l.o Uw vnrr 1~ka 1,1!k wD nnd v.ith Titi nnd
fmrik, Tht1r:ks l<Jr hovkit1 ~;~J\\1,
lfa·liipt:H'!S~ ti om Tit I:
Ymi <HIJ dd!9htfo! you~1g l<idi<h> v;ho rn<:k:(} O'l..<r tW()Hti\] a ... pe1knu.> pkJ.J;;ur;.ihkL ! tiu!y
cnjoyf;d qcttlng acquui!Hf:!!ti <lti1h you, yow ·f:.1m1ly, a11d 1r:i"d u:~pNhJ''lCt:~~. Good h;ck in
'(Cur -vndi'.!UVl.'.lf% ~Hld h«.ppy tr~1vob!
Airbnb -1329 Via Margarita
Palos Verdes Estates, CA 90274
f"nrnk 01!1d l"i1i'r>: ho~WQ is fOaUy <:i uriiq1.w rt!:rni ! .~1)d hml<J£~Y JHH;1db.~ !ur cur farrnly! Nlc.B ~nd d~::in
rom1i, bi:nutiful <Jwirnnffnq pool, trnilfuf and o.qublto g-artk~ri. uv,''.Hythlii~! yow c:YJ H!!-1~ for yo111
bod}' ar>d mhd. Wfl ¥l<W~~ tWVO! PIOU!:jnt Wn CIH\ <;.l:;:it wftn rr.)nK &. r!t! Ul(o old (ilond» ;-md our '<if:>:
y~Ms' ol(i non f:r!c; ;;i;!i;;n1i;•d \;_:.be i.:i irK•mbr..:r thd1 family! W(• .-iddk:t~?-d Mt'fO in lhr.< :.~t>.ly ,,nd mv:it
conw buck loi nm<t vM;,1tiot1 if ... vc M>":"< in LA.
Rt?4pOM~ ftom THi:
Qun1 y()u .-iro rtio:•l intornstlng .:i.nd bank nnd l onjoyod nu'>~nq yo0, fk<l!:Z! u'1d Ede kl o\.ir
hom(~, Your kno•N!l~dg(-J o! food, wtr.€,\ ;irt, !itr#~hlt&, n11.n:!C, !'i::;tory, u1HJ culttire5 fa
irnpmss!vo, AB f}IH):J{!l Y<'v am re~podh1f, czmnkfrirnln ~nrJ co~JfWOV::l nnd :;'.jlW«."iys de:~n
tip f!ffm youi «r,•lvr.i<>. WtJ 1~1;joyed ~~!1'Hin!J -;;t<JriC!;, (.:Ult\irm;, 'ind moab v-."ith you ttnd
wdcunrn y<>u .:=i;; pMI of our fantli)" Wo'l1 c<-i+Jrt~f1 torn:.! rncmoili.>:> of you 'IJ1rou9h th<.~
photos tfld v!deu:-1 of you nnd Erk. Wm:11 ,1 ;,v,.\~<.~t tir'id smMt boy h;l! of tr:rn9hw!10•1'.
Corne hnck J:'ld -<:eD tr<:; t19~ln :.ot)!), HU.vQ >'! ~afn tdp i'Wmf'.l. Yl b phJ •.id
R~'ipon~-e frorf·1 Tltl:
t\arol'I, YOiJ M-0 nn idiHi! bo$l1l(HJ!< tnivdin ~~)d it'~!.-~ ph·HnnirP to h;we yoi.< $!,< .;i g1~0~<1-
You a1r1 u>:cept.iori<il!y <".'.on~~i(len:it>) nn(.l rnt;podful n~1d kift Hw mom 'iO cll.<;;;!1 oild lkJy.
Thank yoa for tr.tkhg hH trnw fwm jOHt bu(l}' :<,.;;;!u,>dl!!t: to ci1tit and :;tum::, 1:toti1),~ wilh
Frnnk. Do como back ;rnd vfait us H9.:ih, AH our b0:1t, rrn
#5.
10/6/2015
9 40
Airbnb -1329 Via Margarita
Palos Verdes Estates, CA 90274
lii LJUY~. !'n'1 ju:;;t flniuh mv {:(HTW hM:k ~wnm Hip from lA, ;:ind I'm stl!! !ool<.1119 fot vumb In
d(1i>~:ri!Jl~ our rj,~yn :.1t Till \H:d rrnn}(~,; !lCff:(J, Thr!)-' ~irn w·n,H, nou.;,c H';:. ;)\',;(•S:Onl!~-" Gk,1!1, C!JZ'f
~nc! or§pnlc. Ht•!nn th~n.~. if;-1 ~·?:>y to foe! trH~ h;.~pplrit>'.'..S ol d B1wrnplo ot himHy ~rH! V'<\lue:i.
i Oh'.!!iy t(•1,:urnmcm!cd ... Hopu lo !>~'P yotJ ~oon 1 W ;:inH h M 1.k ~ ll'.«'"J
:{11\i Re~po:M(:l'fnun Tit!:
~ luo and UMc wo11 OJ.Jr ht~acts ;)nti 1>ui ~mml'..!. Th~}' Hw ic:..>p-ccHul. 1ffg1Hily M~d (,,"l«)
dor.-.p!y Gbou t forn!ly vHhmr., nwklng It not orily i~rwy bl.lt .a j;)f ~o host Hwrn. l Mjoy~d
our chnH: O~)d (1\~!lou9h '<'b"J cm1i1t~1 t;Ohtv tho wmld\ prdk-.'T1~f. wo {;nt1 dt" ow ptH! t<.1
rnHke it a bNto1 plnco. \/</(~ iavi~ yo~J b<.lt'1 atlci look iorY;«rd to mnefr1U your 'Nifo ~1mi
d~wnlWJt in li~r~ futui(•, Obllw1to f1<)m P;ibs VordP't>'. 'Htl
Sltiying v/th Titi and fr<'lnk w<is; u comp!oti,, p!%~iHf(;, ·r !loy nm vi:~ry hka)d!}' <md \1C(,m!)!11<X!Mti~>J.
They t-von g<i¥% ,Joirnph <l lift to tJv, alrpoi t wl\ich hdpw! U:'\ t':'t.<i (Jf('f<lly, Thn h<.)\!~<<J 1$ hm~~itH1il
and coi~tfortu!;!n 11ot to mc.n!h:in tho pool <md vicv1 i..'1vcr LA I •.viii ~(;~y Hw·to .lfpln if! 9ot lrw
Rc~ptm!4:4'-fr-0m THi:
Stopin~n und d1)Mph 1 VVo tt1)ty (.:!'!joyed •fr;;uinn <:::iur horr.e with you and lo knrn rnorn
::.bou~ Jdr.t1 r.:ul1uro. You «m~ conr>lduaUi, <:.\lllf!fW\i'.;, w;wn and 1rkmii!y. lL< a pi0<1;,~urn
tn b~~ your hont \Vi~ look tonvilfd t<> ~HHJhff y<>l1 ;)(Ji)in tci)n, UrinH \!w 1.vh0lf.'l l'r.m~Hy v.ro
have mdi.u hudioom:> t/m;'U:H!Jirr.l 1W
Airbnb -1329 Via Margarita
Palos Verdes Estates, CA 90274
Wtv:ui) <:!>..> 1 ,::;t"'tP?'t HC<,<J i:.,rn i tn:el.::iin my ·:;t;l'I'' w!l1;(}Ut ml1rnin~J t.'1)' dt<ta!!rJ 'H< MfH'{J-WN'i~ no
ni«ny? ! ••t rn>~ pot ll l•'L"< w;iy, \l'lo. -'.ltilid 'h'fth f(f! <~'1d frat1i<' w; ot'r 1lH<1 /\ifUf:!.B ox~W!fo~,1~.>·i ;1ml
l<1und (}Ol !009 limn n1i!;~:P<i f,l!~;i!y' So /!llH;l> ,..;<; thM ,l'J I'm w•fli!~~.l ;hb I lnc! !:on1~~ !>id< and \VH!H
lQ 90 t~«C~ {l~~t;p. nil<.< pp.J <)(\;! o)ffHl.'ln9. hVlT!t::io, non1;1'.)~1:::, <:;;mh1g nnd toviilt'j, Ev•Hy t!rn•.· W() ~'>l<J
t<l fr;;,l<W t1H'.> iH>U~t· \()no pl..<co•.; ',N<; ,~;k,,.mJ !ni>!H iVH:1 ho1;;;0 .>i<'! rn!fc)) tmn It H\fldf! H "iwd lo
i.ltay ou1. 0•) ')'(1<l ;Im 110,:mJ .. , \.V~~<it n hfJt::'H~H! ;J.tunnlr.(10: !Juch il 9arnt <:<!HH9Y 01!\<I yi)\l c1in f(Wi.
!!,al!::; w.1!1 ti1$1,m' In fi'•"'' Inv.,: of t:.1;>mf0rl f1 .... n.1uo•\ ";<nlU< a~CI qourt> (>11,md .l~ld li';'ti~ig Y.<<:'~<i<, t'>t'>,
H yo~J !tmk fot •iri mn,,)thtfj >Jtayw!!fl G.1.wci<.1! pp!, ronk n~) lui!?l!H, Tni!l I~ !'1•~ pl<H:n. \Viii w•i lm
bm:lct Lct'a put It thb \V.J}'. W{l ml{mt fi;nt m!>VP in i.rnd 1:111! •t ~ ~hy. i :•.if*~ to F fi ~ii1U hn~)!( f~i;
1:• v t:J r y ti' i 11 9 W! \IVHh tcwn, f~~}q><h:l <t0.d Gr4\!tucl0' n1,,.~,,,y:;, !iodOlfo R Grl)~>o~.
t• .. ,.. R~i;po11t<1'3 from T!~I: ~ Yoo !JU}"; 'Im 1mrifk:! \Vt?: t.-:z,r t1vly bk:r:iJM/ to h;w.:.> rnf.:l y(it;. Y..b~ '>vdurn·1.-, ytH; 10 m,1{
r!OHI(~ YVJU~ wk!B opm1 ;urn::;: 1inytirng! I (IV{~ Hfl~~ <1i! 1.1~;r l;«d, Ti!!~ ru:.nk
WOWH! V:lvrd::< 'Nill 1wt t}ivi~ li j~wtl<:o, /\I! vm C('!r'! :>«)" h: tr:af 1Tf1 af'ld f'nlnk Mti ri<rw i,1i11!ly to in.
A kinq tirn1:~ mb~i~d l<imi!y, l hi,·, pp! -~H, <J" f<''>(;J!\<.>r h«'Di. So 1n\.:tJ1 ho tl:nt ! ~ind i! <l~H(f Ii> H1YWJ
thnn\ cm.J'iH• l l<n<:I\'~ t~1~~ v;irnt<?ver i 3:!)' '\.'>'iii t\J 1igi1t y1J1H'.1 (1w;~y ltonl o~<t •}xp1ni'.~'lCtL i f•1G-l 1l0{"1)(1•
\tic~ J~<'lt U1hkhH ;<\bO<.ll wdtf>'9 tl!'l('tl1hn Dot H ym: ;1n~ limkl."11! f<;lC \W f'lll\\ll,)fl~j h()Jn,;J, Ot.;ll:>U!.~clin9
~W$t .;i fo«~lff'lg 01' bs!ng ;ook:<Jd af'te1, .~ri:l lo~<rninu <)bo:../l ~rnud~1q, !hl>Abki>1r1~H,, tir~d frrn!!n9 a
Jovmq <)•Hirqy ,1u ;;i··~·nind, {l)i)k i·h') fu!lht:•f. Thi!; i:-J trrn pl<'l<::.'(.• to ho. Oh, \)''<:i l 1\t:ip<1 ym) <Jo•,'t wm11
1<1 j)<::i i;Jnht ~~Wll to ''l'WG.h '.lil YC>i.l nii!J~)t !)(Nt<r 1N&Ot to k· J'i<:} 1llt; r;om;o, nn <ind hnnK 'N!.> HH':!'>k
you fr<:Hn tiw IH:JtHHn of our lH>Mt for .;,v>;,~1ylhh~ri. l'.tnd wnrH lo ·~nd (hh
q~iott>: "ni be b~><:k''. \VHh Lnv1.}, !k:Jp~·d n:u! Gn;tlt:..idt} ,\hvt<~'ll.
#5.
10/6/2015
10 41
Airbnb -1329 Via Margarita
Palos Verdes Estates, CA 90274
lHI fl. h~~r nw:b<li\(j, frnr1k, w•nf• 9rnot•t ~li)i'-hh Tl~(:y hif' <;my <.m.•lcoinlou :::md 'IHI) i::,:iti<~oinp!}
~b<nll U~<;!if j]~l(<'\'t~ J'i~Vh'\~ >! (_!r>C:;lt ~hiy. fi'>~n hl.)l"{l{J hi tm,.u!!ful jug! Bil ):'!C1UWtl. My ftldlfir!•)ti
Hfld l cnjo}'<}d 1'l}faxing by 1ho p-oo!, w.;!ng !~W 9rlJl to irn~'<o <il'1n1'1r :md Vir'illldnq Vw;1\!9l1 V10ir
MtlJli'"9 ~.p)rdr:•'\, TIH f'-.-U<1•1k Bn> ~',':1).' c!o;in, h•~1ilth ,;c«'~,q~i·.rns >i/\(i tnomJiy,."th<l kfo«l ;,::h:t~; tor
u,,. \NoukJ d(>fl~if!dy ~.1:i1 ar;;--,)n.
R>l:~poiH~ Hom Tltl:
MMk llf\d J'ilk~. Ifs 01-1.rn1 h> hiw<:i p-:Mpk1 wm1 lfkt~ rflhd, '/ou ~rf': dc~in, <::oirnkforntn <i~vJ
iUlVO .!) t;o,\!U;y (>U!!OQk i>f1 ff1•:l, \i<ffJ k:iv•::<·d hwkHJ )'Ci.< iW IJU\/:'J('\. r1rnl iroO t<,• U:ll'IW IJ,<Ck
f~)r H n\hli '},)<':11li<Vi ,1>1ytim•~. TIH
Tit! <1tid h~H1l---, tHH \1H} ffW:it $/('1~"!(lor1 hr.>;lt~ll f.'x<:n!/~;.,t (~01\'it>H;nk;~tl-on l<}Mllng ~lJ"> !(~ ~>w· ;ut!v,~I
V.J'!\lr,t~ l)\Wl>"J f~1() h•r•l \l!'fY C(lrnfoi fah!D wHt\ O\jl clio:,~.I~ w :1Lly fr, .'i V,<<;;·1tk:i'l H;nt,_;L ·1 hi:. 'NH~i my
H1in 1}xpi..ni~no~ <Vllh 1?\I~ typt• {jf ki-d~1!1ln. rn~ rK,rne hi q~1 ~Fwu~ vdtn iF~1HJlihd ;111c<1(, ,ic~~·1!1~
l)Utdocr pl"lti0 '<';~th tridr rno1'1Hy l('fnO,foi«id P~d !HNI. ·1 hn ~nnk<'I ill fobdt:oiJ1 Yoq '>Vil! nr1Vl:H' !~y
fnlit au fro,:;h '•B wh~I l•l~Y !1{p1-o nw·,'tl11~1 in HHlii !><~<:!<".yMd. ! tinjt>r }'f.HJi\ <~nd mm:.-:• .i chns.1.w. flH
hl.'!pt!d rnn {j(•l :HH \iP wllll h-t,r fff!H ~1D lhs:i! l GO\.tid '><V<:,rk fJl•1 <h11«11 nl)' t.I()}'! PH:}' wdcorno<! my
ninter ,mi:i 1 <iti if v.'I~ VJ011' .~ moir-,l:HJt •.)f 111dr fonil!)'· W1) )(ll! .oxfr<;m(•!)-' Im tcnah~ l<J >uvo H':h
otl!)t)t"f~m!tr ~:t<i fi!8! tl"!l HK\1.ior1 ~'IC ~rnd r1)>ldi~ now tneHl$t/1Hn1Jl)"· !01 IHu: l r<~C<Hni1H~nd 1Q ~Hry,,r-i.-:
W~<'i f,i kmkt~g for~ 1..'0fnf(.>rttJl:il«, w~ll~;::m~ln!.! ~md "~mirn>"y'· kol !o ,;!(<"}' \'llt!1 Y!t; M"HJ 1-n~~kl HH.>}'
>'.!M th~ bt:t>ll.
R:J:)~p-i::in<S.13' frnm 'fit!:
Sha11.>n. Yo~1 ti'1tl J'->!.~iv ilHl ddiO!)!fu! ql.Hm!~J 0 mdru~ndy con~!dQnito,
<:m11fe<l11:1. \Nht.''! ynur connw·!i<'.'l•l f!l9ht w,:i:i •.;<.<r.Ci'•HQCT. yoiJ ~;i!lffrl ~Hid
{!f>!ny ;u~t:I fn1'l Htih.-M. Y~Y <;'uvr.. v;,.<ry t..Wllttov;.;t M1d ;,l\,v,qi; iH,V.od h~if(;-n; ui;lnn H"wi
l<Hc?nH1. trklrl'" !au·Hl1y, <•le. Y1.>\J v.-<:•r•~ .si·~!I ·iHH!dwn .Jnd vHt)' d<1:;m, ;~h'<"'=')''t> 'N.<'mh~!
arvl t:::k"1mnq '-'P .;:;!H·~ yourndvc~;. hank <Pld J <:~r1joye1J rH<Vif'lq you in G>J! flOmt:'" TJt,'\fll{
yiA1 tv~ tllo qco1J try<t •N:!Hl • .md th.' l>n«ii1iiu! po:J\(:<Hd i•)LJ 'Ji.mt fl'« ~10 vi.,<ry Fiou9;1u~i!
nt y<w. Vlf.• wm k~:<m !rl t.oiKr, (lf-:d h9p~> to ;:in~ Y'1<J ;i9alti ·;l)(1f1,
Airbnb -1329 Via Margarita
Palos Verdes Estates, CA 9027 4
'Now! WiH1t '" filntn1tic pit.co tl."1 f.t(ty! IJH ~.1'\d hMk nt..•((' Vt~)ndnrfo! hO$W and hdp~d me pi<iri
my 6 .tt!lk fQ;:'ld trip. ii!ong fOUl(! 66. ! not lo .':lwlm, teb.<, rintl ln>Jdo Am~ik1rn b1;rw~rn on lne
outt.ido g<iil. Titi !U: :.i gr(H.<t chi~f <:md i11vlted rno t<' ~ no~1rmtd dinrii:11' with ilf.~r ~;usonnd. nw roorn
i1~ ::rnpN dot1ti tho bed wn <;omfort~1blv wfh il!i ;,n~;;i(;!lf.':d privato b«thrnom hi!! d ~:;lean fm:;h
tm·'l('h;, frQ:sh b(H'\)e grovm frnH Jrid v~?~Jl'.'<t~l:}k)f. wcni usoci i.<n<l thl'.l (lvtim ln tho poc! V<<1')
1ufrf:'.flnin9 of\ct ,;i "fonn d'1y u\gntsuulng! VNy ~;;,ih1 M(H<. ;ind t~nnugh ro<Hi1 lo got ,:;orrii.:: q.rnc{.'
i,.vh~n rrnnd>1r.L fJo1h Titi <ind fn1ok !ov<i to ontm"tah utld im~ ~miui119 r1osli;. 1 hrr hwi.~ <:ind
rc:mo<:t th,1 t~iwironronnt ~-1wl <iro 9('f~-0rntm t~irntilnbh:i ho:+>-Th!:< i:; my b{.><H ,.\lt!mb (>Xpcncw.'11
ov1:1r! Wou!<l d11fl11!tt~!y (iJ<:oinme~1d !hb hou!WI Thank you fo1 the expmlc<)\~I'.!~
}'.l:Qi;p-o1u:~ from Tltl:
WG «fll(.'f~~d fi&vf<"i~J Rk:imrd \llj'jy v..ith lis arid heufn9 nbtH.<t his <idv1:-:ntl.Jr(><; ond
i:':xpcrknce:) ot otho~ /\lfbnb honv~~~-
#5.
10/6/2015
11 42
Airbnb -1329 Via Margarita -October 5, 2015
Palos Verdes Estates, CA 90274
Airbnb -1329 Via Margarita -September 2015
Palos Verdes Estates, CA 90274
#5.
10/6/2015
12 43
Airbnb -1329 Via Margarita -August 2015
Palos Verdes Estates, CA 90274
Airbnb -1329 Via Margarita -August 2015
Palos Verdes Estates, CA 90274
#5.
10/6/2015
13 44
Airbnb -1329 Via Margarita -August 2015
Palos Verdes Estates, CA 90274
Manhattan Beach Bans Short Term Rentals
Easy Reader Article June 17, 2015
Manhattan Beach, targeting
AirBnB, officially bans short
terrn rentafs
; '~ ~
,1:-.n1h·f (iu4l "'<«)~I') IX"fm¥ it iw,.-«mo:: !1:1w.
:>-.•f"i' tr"'\'"''' '''l4""'""''frn>"Hl•«n: :<.!--" ""' '\~<~I«"""\""~'·',,,\.,{,~,.,
"~'lhil~ >\'. h<>'ll<' ~1,MI",~·
#5.
10/6/2015
14 45
Airbnb -1329 Via Margarita
Palos Verdes Estates, CA 90274
Palos Verdes Estates Current Code
No ptt'.iOf\ ~ha~ (¢ndu(t ;my l>u$1~s.s w*hh the cf:.( without frn ~bt;i:r.hg ~md tt1o!Mft(l< tfV(•tah~v:; <1
!Hirn~~~ kBM~ pur):l.ant to ttrn pt\j'ls~n1" of thtl .:hapter, Md p;:iyflQ th~ tJx tha.rnfo:, t\S H<;t:"<I fl th?.
cMaptitr, thtl W¢<'<l ~o~r'ion" stnJ tMJn and n(~.Hle at< ruiMthJ~ and any d0rnest:c Of forn)(Jn
<otpQ!atlofl, ltHx."1tb<l, s-vn<l~utc, Joint Yl.?Mut~. (Mrtnenh~, c~:b, tmrt o< s;1HH.1ts of ,my knd,
i!~<.:tl{ltilQ ;my Pllbk uttty th-Jt p<i:µ ;i fr.mr_,~~.e fo~ to the c.ty. {Ord. 701 5 2 (l7!<h. 1), 2012; Ord.
~59 § 2, 1992}
5. 16.0SO Evldenre of doinQ busl""'5.
\\1HN1 4111 p~~ll )h~i by u~a of ~ns. Cf(W!JrS, QfdS, t~l'(!phoo~ bOOk or MW~D.!P~! ~tf.f1U{..'5<.!, hl)kj
out or reprM>af'<t ttia~ 11-e 15 11 bus-if1Gi$ fi thQ <.t>f, or wh~n 4<'!1 o~~n h®'h .::1:r1 JdN~ kffm~ ~ P<lfmt
IW.l~d by 1 gowunrr-.eotai ;i:q~ncv ~efizJ.ttio that IH! $ti b'IJ~\(l>l"1 >11 the dty1 arn:l ruth perwn flti t¢
dt<fi'f by a !N«im ttaterrKtnt QN~o to th~ cotkicte<r t!u~ h{! tt not (¢ndvcU19 <1 bu~4"MB ir. th~ (t.y -,;Q<i)r
b~no mmmst~d to do n by the cofuctw, th(1fl the$~ f~ct~ ~iJi be tom:dere4 prrna fil<~ cw:tenc<'.
th-at ~di l)N~n 11 tondo<t11Q J buW!~§li Kl the cty. {Oid, 701 § 2 {Exh, 1), 2:012; Ord. S59 fJ 2,
lW1)
5.16.060 ComnW!ft·oom~nt of bl.15&1mss wfthoot bu~:ine@ k1'nse -Pooatty, tiHHf'~.
Any D-0-!Wtl 'hfl!'.l GHffllS (Nl ;my tr.JWH!~ wtht:iut m.t \ll:lHntlQ a b!J~W!llt'S k~fl$¢ th$rMor sh<t"l p,ay d
PtM(\y of ttm O>MO'Jtlt o.f th~ (}t(lmb~d blJ'W!t!fi kM$,,., t;ix~ fl iltkltlon to thi! t!X {jtfHVW~Q
~.itabb'Hl<l fix rutll twslriil:st, An add~n~! tEn µ~,(~flt p~nilRY Ul41 be ild<:ll'!d for ~\ldi fM1 <li!YS o-t
fr,.<'Wfl thl.Hi!-Of <lfta: r.ot.:::e s.l\l$ h~ bctrn Ssu-od t>V such p{!i'$¢n dr*'ctilq hh1 to OOt<Jin a buwe-S$
k:l!Me ur.U the hu$in~;;s k.~!>11 ap.pkltJOtl $ (jed .uui tJx PJ4, uc~pt tiut t~(I tot:)! arooi..H'lt <:>f the
Pl>fl~'t ~dded ih<lt u 110 tivMt exc~~d f(ty peu~nt of the ta)( othNW~ estabish{td for si.ich !:lw~11cos.
S1Jch p~ri-01ty m~ bit '*<te~ and the PJ'tmi?ot tht!re-M mat be eoforced h ttu1 S:Jfl)<l'.l l\'>ifnn~r ,u oth~r
ttt.l'WH?~ kanw t~s <tte c~<:tt'td :md pav:m~nt erift<1Clld-(Ord. 701 § i (E:;.;h, 0, 201:.?; 01d . .S.59
§ 2, 1992)
Rf>:'>i(flHHs f;urrnntly HdvfH1it·=WJ
rooms !or rent on Aubnh
Qp(!rnii11g without ;1 \1us111e::,s
Humsn canws penal!i<..~S
Current Code Appears to Rcq~1ire Businoss License nnd Conditional Use Permit
Airbnb -1329 Via Margarita
Palos Verdes Estates, CA 90274
Palos Verdes Estates Current Code
17.{H,010 Puri>00e ···Authority. 0 ~>!r1r.r
In ord1u to r.n()'/;rju thu e.c;<.i.10f1K una Wl·~! iHJv~ntM;t.i~ mw~~<io from ;m oulfnry. vmu11ild uto o! tJM
r!lW.JfCe:5 .md to con10M ;lid f:>tl}tflOt<l tJrn pu!Jk int!'.!te~t, heJirh, (Orn.fort, i!l1d rnnvtli~"l(0 r.>f the
r:.t:y and ~~ t1J1.)bf.>int$,, and to p-r!l:Hirvt! U1~ pubk pe<1"t4l, safoty, mcrafs, order, ~n<l r;itiwrni we'far~ of
thl} &:y J.M (.$ V'lh4Mtunts. thi!t€! t'!i .:i:dq:itM and ~rtibkh~d ti"lis lMt<!IJ GXl1'! ~od PVEMC ft.le. lfl,
adcvted purTurint to Attt~ Xt,. S.ttb."lt1 7, af the (Onrt1;ut1-0n ¢f tht'I stm~ et C@&fomlil ilt<d ti
ccn~f'(Q with the re.qu:hwnMts of Cal. GQV. Code 'fltll'! ?, Piolnri-~lQ ;ino Zor.hQ lJ.w, Thtl l-O-mng. f:Ml'l
1n-0 PV€MC Tltkl Ul am 1ntc(l.dfld to prov~t:1 th<if kfa~atN't! rr~m~wo?k to nnh;:in,~ md rrckH1*nt the
Q-011$, p00c.1¢s, p!JM, mb<:.C,,lei;; and stJnd;.,rd~ c-f thi! geneta.l pt:n. (Ord. 70!) § 2 (£xt<. l), 2012; Ord.
B4 § \.l, l948)
17,20.040 Requtrements fof cofldiUooru use JMrmtt. o !;WWE
This pbtlntiQ corrrn5.!i~fl 0t ctty C(t.ufl<:!, n CJ1>mthQ a contl.t.xin.:il us'l r~rrn.t, m.Jrt fnd that:
A, lht U1.-@ ipp%d fCl It th.e k1-1.:atlon s:et fc<itti !ti the 1(1-!J<:lt.*1 1;; pwp~Tt1 a:r:@ ~l..lthO>'ll~<l bi
cond-t:ioM! US(l PO!i"rrt put$1 .. .i-irtt to tMG -cod<?;
a. The u~ 6 c<>n~rtent wth th• Q~r:~r~l pi'Jn md wy 400k:ab~ si:MdX ptm;
c. Tht ru is a<l~qu-Jt:e ti U.lc -aru1 ~"Yi t(I ;,i:tonl'nl:>d.t~ trie y.lr<ls., w.iik, fotu"e§... pi1kn9 cmd loioiri9
fadtmt, bod:J:(:4.P~"O, satbad::s, Mid otht?r dt..,elopm.ent Kltldirdfi pr~wtnd n U1t; rod~, I)( .a:~ *It
otherwUe rttov:r~d h order to ht~ornt.e the use with the me., :!A1N<M.m.<ln9 pr<tOttt~j, d"d othN
IHWtitte<i U$~!i h th~ cty;
O. TI1Rt '.lolt~ u Jdi!QlHlt~~I ~M~d by hlfJhvnrs or ru~eb o/ ~1fr'k\-04't width and h"ptt:wt«wnt ~!i ue
n43c~~I"{ to C-#try Ot.tt the k)i~ ;)11d Qt:.intlty of troffx suth UH! wf q~tH!fitt\'.! .and by ~th-er pubk Q?
pri>/.>i{:(! $~1Vlt<i! fa<:fit'Slll:s ~ ~~ rn~W:h'.ld;
E. -rM use wA not aNtt vMru.Jl !~@¥!, t:raffit:, or oth~ cof>dt'JOM th.it rr;;r1 b~ oblcctaJn.j!J,~,
det:rfl~nral, or Ul<O~atblt.t wti1 rurrwndmJ prop.~rtt.eJ ~( ott1-ar perm'tted uH~s r. the cty;
Orderly planned use of l<:md
rnsourcm:; ., .C@:>(!l".mt10d prornoll'
nubile m!cnJS!.. peuco, s.:ife!y.
moral~ <)idu; ano g~motal we-If.am
orow city ....
r C~nlllti0nol u~Q permi;~-;;~\~d .. _ ........ 1
wt1en <.;on~i1sti.~11! with f]enernl
plan ... tlH~ U$(l WI!! (10\ ('.f(.)f!fe
;~;;t:~~1Yt~~:f~~J:~~~:~:1~~b~~.11c1itio11s
[ dl)lrlmon!~~I. or Jncompat1blo wilh
\ surrounding propert1c.·:~ .... : _____ ,
Current Code Appears to Require Business License and Conditional Use Permit
#5.
10/6/2015
15 46
Airbnb -1329 Via Margarita
Palos Verdes Estates, CA 90274
Palos Verdes Estates Current Code
l7,08.G5S 6e<i <lnd breakfast Ion.
0 Bl'ld aM b-H!J~A>t :nrt meanl a t.idtv offi!~tH) tran~tit i<ICtng aavmivA~tlt.M rn the wt.IC J:!ltl" l..'<lllwln9 ~(hen fa(;-t,'<!~ ~'.le-~~.it~ fO" l}!f>'hif. rr-ea\s to 9ue5ts of Hh~ fac*.y wt< i!!l<l nDt
otht1w1U! open to ~he putk. (Ord. JOO fi i ((-Yi. !}, 101£}
lfi.!H.020 Condltlon<ll u~,
lht! fo-la·fmg ;.,~t!srt:a1 be pt!rn~md .~l th~ SM lOi'l~ J ~ <iJnd~-Or=~hM{JWhtl'! ohtU;eQ n t~.e fMf:!H:r prtmllt!d ll'{UHsl:{,'<lt'!:
A. ~rJ.:<.<tw.ei ~f!d hwtkdttirl\', Fi\JWf:( :iM v~\let:tli~ n:udeOfi'J, rrJne1k:~ ;;nu r;t~tr:ht>tJ~~s 1w~<I ;ir.fy fw puiro:ea o! MC{hXJ,ihXt ;i!Xl tuh;re 4f,d r.ot riclid\'1!J 'I.fr/ wt~ ;.tt :et<il fh'.t(tb1
pr~rn->es n!Y ifl)' .~:is or i::;;;pl:i)~ proy-Jed, lloWe\'t:, tMt f(:l}, hll~!l or lrn!! uvµ2 rr.,;rt bl! m;J!d Jnd U'i:,l!ia"?tNJ;
~. AQ!:o;~u~1 l!rrtl~fl!\' hOIJl<n<J I! (v.'1foon:mrn y.;~h D!, Hi;ith & S<it ftxle §~ J 702'1.5 ;md 170}L6. {Ord. "J(fJ § 4, WM; Orl1. 700 .~ 7 (&k 1), 2012; \Ji'd. &51 § ?., i'.01!3; (ht~)}~?,
1993; (){rl, ~41b?.,1~)31; Ord. J&6 § l, NiY1; ()fl$, 31<1§1, lgi)J; Oftl. Si§ 5.lOf EMS)
u.w.o:mAuthority to ori:mtmnd\-tMfl<il uw, Pf.rnwt.
lh!! pi.!nr.>'!9 comnisf<Jil u cound, Ji p!nv.dl}d iii thij-th,)j)M, !l'>il'f (;(Jr;t a {if'4tt~.;i i.sl\ tiJHt'"d tm ~41(h wrrn. ,:;r1d tOtl:l.t~f,~ ::ti: rr'W he 1:1 hJ-!t>'Xlr.y wtri tlm !Jl!flO)rili 11tcnt Jntl l)(H).'>tt:t'.i
vf this cOOe, L'l il<id:ticm, the pl.lnmm;i tor!T~ 1x (t:-{ W!llK1 rr..ir rl'l)W,;il suth cvn('.,\(.'m a:; the ph1;rir.9 cca.r.'h:i(>I! or the d:y rn11'1d dtl!ltl) Mn%lff 0< dcwa~k! to tn~u·I': \.h~t thu
1J5i w:tb~ ~rtJbfah!!d1 o-p~m«l, Jnd ma~tm~d fl J(<¢fCJr.ct: w,fr, th~ fodf\9~ Niqm:~d ~'/ thi:. thi;i.ter. (OtQ. 700 § >. {f.xh. l }, ?Oll; Otd. SW tj 12, 1tJ-!Jl; Ofd. 38! § l, 19frl; Cltci, 375
§1,19''1)
Current Codo Appears to Require Business License and Conditional Uso Permit
#5.
10/6/2015
16 47
ORDINANCE NO. 342
AN ORDINANCE OF THE CITY OF ROLLING HILLS AMENDING
SECTION 17.16.020 AND APPENDIX A TO TITLE 17 OF THE
ROLLING HILLS MUNICIPAL CODE PROHIBITING SHORT TERM
RENTAL OF SINGLE-FAMILY RESIDENCES.
THE CITY COUNCIL OF THE CITY OF ROLLING HILLS DOES ORDAIN AS FOLLOWS:
Section 1. Rolling Hills Municipal Code ("RHMC") Section 17.08.050 provides that uses
not specifically permitted in the RHMC are prohibited. Commercial uses are not specifically permitted;
therefore, they are prohibited. However, the City Council has determined that recent developments in
the hospitality industry make it necessary to clarify that private residences in the City of Rolling Hills
may not be marketed and/or rented to transients for thirty days or less ("short term rentals"). The City
Council has directed the Planning Commission to consider an ordinance prohibiting short-term rentals in
the City of Rolling Hills ("Ordinance"), which would amend Title 1 T of the RHMC ("Zoning
Ordinance").
Section 2. Chapter 17.50 of the RHMC sets forth procedures for amending the Zoning
Ordinance. Public hearings before the Planning Commission and City Council are required. A public
hearing before the Planning Commission was held on April 21, 2015 at which time the Planning
Commission recommended to the City Council to adopt an ordinance prohibiting short-term rentals of
residences. The City Council held a duly noticed public hearing on May 11, 2015 to review the proposed
amendments. Notice of the public hearing was provided as required by law. Evidence was heard from
all persons interested in affecting said proposal and from members of the City staff. The City Council
reviewed, analyzed and studied said proposal.
Section 3. Pursuant to the requirements of the California Environmental Quality Act
("CEQA"), Public Resources Code Section 21000 to Section 21177, State CEQA Guidelines, 14
California Code of Regulations§§ 15000, et seq., and the CEQA Guidelines of the City of Rolling Hills,
staff analyzed the proposed Ordinance and concluded that it is exempt from CEQA requirements
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. Accordingly, the proposed
Ordinance is exempt pursuant to the "common sense" exemption set forth in Section 15061 (b)(3) of the
CEQA Guidelines because there is no possibility that the Ordinance could have a significant effect on
the environment. Furthermore, the proposed Ordinance does not constitute a "project" that requires
environmental review (see specifically 14 CCR§ 15378 (b)(2, 5)).
Section 4. After considering the information presented during the public hearing on this
matter, the City Council finds that the proposed Zoning Ordinance amendments comply with the
requirements of the City of Rolling Hills General Plan and State Planning and Zoning Laws
(Government section 65000 et seq.).
Section 5. The City Council hereby adopts an Ordinance amending Section 17.16.020 of Title
17 (Zoning) and Appendix A to Title 17 of the Municipal Code as follows:
A. Amend Section 17.16.020 of the Rolling Hills Municipal Code in its entirety to read as follows:
17.16.oio
A.
Permitted and Prohibited Uses.
Uses permitted in the RA-S zone as primary uses include:
1. Single-family residences;
2. Tree, bush or field crops provided there is no retail sale from the premises and
provided the activity does not cause undue traffic not normally associated with
residerrtial use.
B. The following uses are prohibited in the RA-S zone:
Ordinance No. 342
Short Term Rentals
l. It shall be unlawful for any person to offer or make available for rent or to rent
(by way of a rental agreement, lease, license or any other means, whether oral or
48
written) for compensation a residential dwelling or a room in a dwelling for
occupancy of less than thirty days.
2. It shall be unlawful for any person to occupy a residential dwelling or a room in a
dwelling for less than thirty days pursuant to a rental agreement, lease, license or
any other means, whether oral or written, for compensation.
B. Amend Appendix A to Title 17 of the Rolling Hills Municipal Code to add "short term rental" to
the Index of Uses and designate "short term rental" as prohibited in each of the City's three Zone
Districts (RA-S-1, RA-S-2 and PF).
PASSED, APPROVED AND ADOPTED this gth day ofJune, 2015.
ATTEST: ~ g/£~{£)
Heidi Luce
City Clerk
Ordinance No. 342
Short Term Rentals
2
49
STATE OF CALIFORNIA)
COUNTY OF LOS ANGELES ) §§
CITY OF ROLLING HILLS )
I certify that the foregoing Ordinance No. 342 entitled:
AN ORDINANCE OF TIIE CITY OF ROLLING HILLS AMENDING
SECTION 17.16.020 AND APPENDIX A TO TITLE 17 OF THE
ROLLING HILLS MUNICIPAL CODE PROHIBITING SHORT TERM
RENTAL OF SINGLE-FAMILY RESIDENCES.
was approved and adopted at a regular meeting of the City Council on June 8, 2015 by the following
roll call vote:
A YES: Councilmembers Dieringer, Mirsch, Wilson and Mayor Pieper.
NOES: None.
ABSENT: Councilmember Black.
ABSTAIN: None.
and in compliance with the laws of California was posted at the following:
Administrative Offices.
Ordinance No. 342
Short Tenn Rentals
HEIDI LUCE
CITY CLERK
3
50
APPENDIX A
INDEX OF PERMITTED USES BY ZONE DISTRICT
The following matrix lists the land uses which are permitted and not permitted in
each of the City's zone districts. The symbols listed below describe the use regulations
applicable to each land use in each zone.
"P" indicates that the use is permitted by right.
"A" indicates that the use is permitted only as an accessory use.
"A*" indicates that the use is permitted only as an accessory use and that special
conditions apply to that use, as described in Chapters 17.16, 17.18 and 17.20.
"C" indicates that the use requires a conditional use permit and may be permitted
only in conjunction with a legally-established single-family residence.
"CP" indicates that the use requires a conditional use permit and may be permitted
as a primary use on a lot.
"C*" indicates that the use requires a conditional use permit and may be permitted
only in conjunction with a legally-established single-family residence, and that special
conditions apply to that use, as described in Chapters 17.16, 17.18 and 17.20.
"CP*" indicates that the use requires a conditional use permit and may be permitted
as a primary use on a lot, and that special conditions apply to that use, as described in
Chapters 17.16 and 17.20.
"T" indicates that the use is permitted only as a temporary use.
"X" indicates that the use is prohibited.
INDEX OF PERMITIED USES
--·· -----··--··---~-----·-·-·~···----·-------~-·~·---~r--~~-· ---··--···· -·· ... --·-~------
1 Zone District
I List ofUses r-· . ···1···-··--·-···r··· ... . RA-S-1 RA-S-2 I PF -------·--··---/..~-----.. ----------f--f------~-~
Agricultural use (tree, bush, or field crop) I p II p I X I
I ' I . ---~-------·-·-... ·----·--~--~-----~--- -----···----r--------------~ ~~ ~~ ---
Animal ke~~g (all dom~s~~~xcept swine~ ____
1
i __ ~: ···i'--~~-... Lx~
Avia A* and A* and I X
ry i C* C* I
-·-·-Barn (s~::~le)--------------,-A~~d TA ~~cl 1-;·1
I I j ! -· ---:.~:----··------i--~;--r-~:--r;-1
I I ' l ··----··--·--ci~i~\c~nter···-------------1--.. x-·-r··x -·-r·p·-1
----r········-·· ·r --·-····. ···-·1
I A* and I A* and f
I C* I C* I x I
. c~-., pen:~~ graili~.)----: =:r. A:~~ 1,~At"-r,r~ I
Driveway, more than one j
-·-·---···---·· ··----·-···---· .. ·----------_______ J__ _______ J ___ ·-
Corral or pen (no grading)
Ordinance No. 342 4 51
-----··-----·--------E:. ----------------r-------r ---T·-·-1
I I i I -----------------------. f I
I CP CP I CPI
I l i
F:
Fire station
---------····: --· -----------------,------r··---------T---
G. I C* C* I p
Game court I I
I !
Garage, attached --------------··-·1---P -r P ··-r· P ..
-·---· .. ··----·····-···· .. ··--··---·-----------,---___ T __ ..... ··--·1··---
Garage, detached I C* I C* P
.... -·-------······-···--------·-·----·------·--r---....... T _______ .. ----
1
----1
Gate house I CP I CP i P 1
Golf.;,,;,~ -- -r x
1
x I CP I
-----------· ·-----------------r-··--_____ T _____ ---r---1
Greenhouse J A ! A ! A
! I t ------,-c*-· -1·-c•-·-1 x I
' I I I
Guest house
--------------f" ---·-1 I I
I C* I C* i X~1
I !
l ! ----------·{;"----------· _______ .. T ____ I ·--·-···r··
I I i ·------------------··r·----,------1---1
I I I I ------·--·------1---T-.. ----·---r __ J
I I l I I
H:
Hobby shop
J:
K:
___ .. ___ ---------.T ... ------···-· r·--i
j X X 1 CPI
--=l-~--[~~-J~_I
i CP* I CP* ! x I
I I I I
Mixed-use structure ----,--C* · r C* 1· :X-i
··--____ .. _ -------·-,-..... ··-r ............ r -.~
Multi-family residence i X I X I X I
M"'""'"· puhH~ ------ - - - --+ x -+-X -1-cP !
----~---------·····---------~---·----~--.. --+-I
Museum, private ! X I X ! X I
-·-·-----------........ ______ .l._ ----·-----··--· -[---I
N: I I I I
Oflfo<;<~~=··I --- --------1--~-1 x r~;.1
------.. ----. ····----·-·--· ·-----···-··--·····-------·-· ·r---·· ·-.----.. --T ·---·1 p ' I I I : i CP I CP I CP I
Park ___________________ J _____ I___ L . .J
L:
Library, public
Library, private
M:
Manufactured homes, temporary
Ordinance No. 342 5 52
1-·------.. -------P~king, off-street ·--------i-x---1-.x·--r A.· 1
i---· Playgro~d ____ ·-------1 cp--r-er -·rep
1 .----··---...... -·------··--·--· .. ······----····--.---·-------·--r--..... ·--r··-··-.. ·· ... ., ....... _\
J Playhouses and playground equipment I A* I A* i P l
I I I I r----~----------• --------~ ~~----------, -----r f
! ---Public-~til::l:::;~;-;~o;, ··---1-;p !
1
-;p I :: •• I
' I I I I i r-----P~bii~-tr;nspo~ti~;;(no s~h-;;-01 district propertJ)---,-·cp+·-·-r-CP;·--: x
r-·---------------Q: --------------------+------!·----~---~
I I I I ! r------Radi, ::.~~:~,==~:ru~ r A;-r~~v I
1··---R~~~~ati~;;-~~~:-~ttiched ----------T r 1-· r --f P-1
-··---------·-----· ----------r----~-----r -1
i Recreation room, detached ! C*' I C* i P i
1·----··--··-··· -------------------------,----· . ------· ----1
1 Recreation game court I See "Game court" 'J
i r-----.. ·-----..... ·---------.. ----------·-..... --------,-............ _1 __ - ---1· .. j i Recreational vehicle storage, outdoor I A* A* I X I
I I I : I ! _____ .. ___ ---------··--... ____________ .... --·----r--......... , ---T ·-___ ,
I Recycling center ! X
1
X i CP I
f----.. -·-------iese~~~--------------,-cP ____ I cP--r cP ·j
r---·-··----Ri<lhig-rlng·(~ore th~~?,200 ;q: it~)·---· . + Co t· c; 1 ii 1
1··-----------:atelli~~:~ha:e~a---------·--~--~~ --~~-·1··~-
1 i I I
1------------·s-~h~ol.~l~;;e~;;;----· ---------r·--CP_r __ CP--lcp I
,----------·-----------------------__ T ___ ---,--I School, secondary I X X X I
I I 1 I
f------------ - -. ! ---: j I Short rem rental ofrc•ldcn= J_ X I X JX I
i ··-· ,-,;;~;:;;~:~;---------~;·-r:·~1 :j
I I i I
r
. -····-·-· ---·· .. -------·--·----·--·-·---______ ,... -.. -T ...... __ r----·r
Stable I A* and I A"' and I A I I C* I C* I ~···-· .. -···• -·--·--··---------------·-. I I f ~
I
, Swimming pool less than 800 sq. ft. (includes outd~or spa, 1·--1-----r--· '
bath, or jet pool) I A J A I p j
~----------·---·---------··---·· ------------~-_I _______ 1_ --i . Swimn1ing pool 800 sq. ft. or larger (includes outdoor spa) j A* l A* i P
----·-----·-·-·-· --·------·--·---·-·--·------·--·------·--·"··-------... ····---·----· j
Ordinance No. 342 6 53
T:
Turnout (7,200 sq. ft. or less)
U:
V:
W:
Wildlife rehabilitation facility
X:
Y:
Z:
Ordinance No. 342 7 54
MOTION
In the past few years, technology and innovation have expanded and fundamentally changed the way
people travel and vacation. Visitors to Los Angeles and cities around the world routinely use "short-term
rentals" in lieu of hotels to stay in and experience a community. The impacts of the short-tenn rental industry
have been dramatic -in both positive and negative ways.
Tourists who stay in short-term (less than 30 days) rentals relish the opportunity to stay in Los Angeles'
many and diverse neighborhoods, and experience our City as "a local." Many short-term rental hosts speak
glowingly of a "sharing economy" and their ability to make ends meet by renting out a room or their back
house. Tourists and hosts alike speak of new friendships and the positive benefits of this new fonn of vacation
experience.
At the same time, critics have decried unfavorable consequences, such as the impact on some residential
neighborhoods, which are changed by a revolving cast of visitors and their impacts. Significantly, in some
popular tourist communities such as Venice, speculators have subverted the "sharing economy" business model,
converting regular rental housing into short-term rentals, significantly reducing rental stock and contributing to
increased rents and decreased affordable housing. In some cases, large numbers of units in the same building,
or entire buildings, have been converted to short-tenn rentals, operated by off-site management companies.
The City's current zoning regulations do not anticipate or effectively govern short-term rentals, and need
to be revised so that the City can effectively preserve rental housing, protect the character of residential
neighborhoods, and collect transient occupancy tax that pays for crucial City services. Neighboring cities, such
as Santa Monica and West Hollywood, have already crafted local ordinances.
Last month, the City Administrative Officer released two reports regarding short-term rentals (CAO File
No. 0220-0513-0000, Council File 14-0593 Relative to a Comprehensive Study on the Sharing Economy and Its
Impacts on the City of Los Angeles, and CAO File No. 0220-05153-000,0 Council File No. 14-0600-S89
Application of Transient Occupancy Tax for Short-Term Rentals). Those reports framed the issues facing City
policy makers.
I THEREFORE MOVE that the City Council direct the City Planning Department, with the assistance
of the City Attorney, in consultation with the Office of Finance and other relevant City departments, to prepare
and present an ordinance governing short-term rentals in Los Angeles in the following manner:
• Authorizes a host to rent all or part of their primary residence to short-term visitors, permitting someone
to rent a spare room, a back house, or even their own home while they are out of town.
-Prohibits hosts from renting units or buildings that are not their primary residence or are units covered
by the Rent Stabilization Ordinance (RSO), forbidding speculators from creating a syndicate of short-
term rentri,1 properties, and prohibiting the loss of valuable rental housing stock.
JuN <2a£lffires Transient Occupancy Tax OT) from all hosts.
PRESENTED BY: dJ __ · ______ _
MIKE BONIN
::'ti ~~CONDED BY: :. :c.lll
55
WRAC LUPC SHORT TERM RENTAL MOTION OCT 2015
Whereas under the City of Los Angeles present zoning code, short term rentals [defined per the attached Alan Bell
memo dated 4-19-2014 as "all or any portions of residential buildings that are designed or used for occupancy for a
period of 30 calendar days or less"] are in fact prohibited in the following zones:
• Agricultural zones
• Rl and other single family zones
• R2, RD, lower multiple residential zones R3 and RAS3 [accessory services zone]
Whereas short term rentals have proliferated in zones where they are not allowed thereby creating a "passive
permissions" environment to the detriment of neighborhoods' zoning code enforcement, and
Whereas failure to enforce conditional use permit requirements and collect all taxes owed on this activity significantly
damages the City budget by encouraging tax cheating and other scofflaw behaviors, and
Whereas the City has a clearly defined legal duty and responsibility to apply all existing laws, and to further create a
reasonable regulatory framework for short term rentals in order to:
• Preserve rent stabilized housing in the marketplace, particularly for families and seniors aging in place
• Collect the required transient occupancy taxes
• Preserve neighborhood stability and eliminate the operation of so called 'rogue hotels' which remove
permanent residences from the City's critically short housing supply
Whereas the City additionally has a clearly defined interest in protecting the public welfare, health, and safety through
said reasonable regulatory framework,
Therefore any proposed City ordinance allowing short term rentals in presently prohibited zones must include the
following essential provisions:
• No rent stabilized units "RSO" shall be allowed to rent short term
• Only owner occupied primary residences shall be permitted to host for short term rentals, and only
one unit shall be permitted per host.
• There shall be a cap of 60 nights per calendar year per host for short term rentals
• Prior to listing, hosts shall be responsible for verifying their properties comply with the Los Angeles
Building and Safety code at their own expense and shall make all necessary repairs
• All hosts shall obtain a City permit and a permanent registration number. The condition of receiving a
City permit and permanent registration number shall be the following: proof of primary residence plus
liability insurance for this specific use including any rider that may be necessary for a non-conforming
use on the property. Examples of proof of primary residence shall include utility bill, drivers' license
and the like
• Upon filing for a short term rentals permit, hosts shall notify property owners within 500 ft.
• All hosts shall include their permanent City registration number on all advertised listings in all media
• All hosts shall register with the City Department of Finance and remit transient occupancy taxes "TOT"
including any and all back taxes owed. Short term rental TOT receipts shall not go into general fund
but shall be used to create a special enforcement/compliance unit specific to enforcing regulation of
short term rentals. An example of this compliance unit is the LAHD inspection program for multifamily
units
• Hosts shall be required to pay the City's legal minimum wage, abide by hotel employee protections
and register with the State Employment Development Department
• Hosts shall disclose such information as the City deems required for enforcement. Examples of this
information shall include the type of rental whether one room or whole house, how many nights per
year, how many guests and the like
• Hosts which refuse to register or disclose information necessary for enforcement shall be prohibited
from operating in the City and face such penalties and fines as may be deemed appropriate by the
City under the new ordinance
• Platforms shall only list City registered units and display registration number in each listing.
• Platforms shall disclose information deemed necessary by the City for enforcement and for collection
of back taxes and shall be held accountable, including fines and other penalties as may be deemed
appropriate by the City, for any unregistered online listings appearing upon the platforms' website
• The ordinance shall establish a right of appeal of the issuance of a short term rental permit
• The ordinance shall establish a private right of action by individuals in the community
56
Petition to Ban Airbn in the ity <Jf anc Pal Verdes
Petition summary
and background
------------·------·
We the undersigned, are petitioning your office to pass a city ordinance to ban short term home and room rental
services, such as Airbnb, in the city of Rancho Palos Verdes.
The homeowners who rent room(s)/homes using these unregulated services are running commercial
! RECElVED businesses, a hotel, i~ residentially zoned areas wit~out business licenses or permits. Further, appropriate hotel
CITY OF ~NCHO PALOS VERDES taxes are also _not being collected on behalf of the city.
I iSEP 2 8 2015 Having these commercial businesses in our residentially zoped neighborhoods:
-Reduces property values
___ ...;.....-....,......-,.,..-::::--:::::-=-:-::-~··;:;::-·. Increases traffic and parking congestion
CITY 1CLERK'S Uh h .. '-'·· -Changes the character of our neighborhoods
Increases crime risk with influx of transient visitors
We ask the City Council to follow the lead of Rolling Hills, Manhattan Beach and Santa Monica to ban these
short-term rental services from operating within Rancho Palos Verdes.
Action petitioned for We, the undersigned, are concerned citizens, are petitioning our city leaders to pass a city ordinance to ban
short term home and room rental services, such as Airbnb, in the city of Rancho.Palos Verdes .
Printed Name I Signature __
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57
Petition to Ban Airbn in the ity ()f Ran h rd es
·----·-· ------·---·---------------·--~----··-~-· ,.,.,...., _______ ,,,,...~_ --·-----~--~----~~"~"'~"
Petition summary
and background
We the undersigned, are petitioning your office to pass a city ordinance to ban short term home and room rental
services, such as Airbnb, in the city of Rancho Palos Verdes.
The homeowners who rent room(s)/homes using these unregulated services are running commercial
businesses, a hotel, in residentially zoned areas without business licenses or permits. Further, appropriate hotel
taxes are also not being collected on behalf of the city.
Having these commereial businesses in our residentially zoped neighborhoods:
Reduces property values
Increases traffic and parking congestion
Changes the character of our neighborhoods
Increases crime risk with influx of transient visitors
We ask the City Council to follow the lead of Rolling Hills, Manhattan Beach and Santa Monica to ban these
short-term rental services from operating within Rancho Palos Verdes.
Action petitioned for We, the undersigned, are concerned citizens, are petitioning our city leaders to pass a city ordinance to ban
short term home and room rental services, such as Airbnb, in the city of Rancho "Palos Verdes.
! Printed Na,:;,-;-·----TsiQn~ture ·-----I Address·----~---·--····· ·---I CewtFR~~t
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58
Petition to Ban Airbnb in the City Of Rancho Palos Verdes
Petition summary
and background
~-.-~------~---------
. .
We the undersigned, are petitioning your office to pass a city ordinance to ban short term home and room rental
services, such as Airbnb, in the city of Rancho Palos Verdes.
The homeowners who rent room(s)/homes using these unregulated services are running commercial
businesses, a hotel, in residentially zoned areas without business licenses or permits. Further, appropriate hotel
taxes are also not being collected on behalf of the city.
Having these commercial businesses in our residentially zoned neighborhoods:
-Reduces property values
-Increases traffic and parking congestion
Changes the character of our neighborhoods
Increases crime risk with influx of transient visitors
We ask the City Council to follow the lead of Rolling Hills, Manhattan Beach and Santa Monica to ban these
short-term rental services from operating within Rancho Palos Verdes.
Action petitioned for We, the undersigned, are concerned citizens, are petitioning our city leaders to pass a city ordinance to ban
t ____ _ short term home and room rental services, such as Airbnb, in the city of Rancho Palos Verdes.
;"--····--~,,-----··--·-·-·--~--· --·~--------, .. --,.--·-"' "'~---~ ··-----·~ --~
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59
Petition to Ban Airbnb in the City Of Rancho Palos Verdes
Petition summary
and background
Action petitioned for
-.
We the undersigned, are petitioning your office to pass a city ordinance to ban short term home and room rental
services, such as Airbnb, in the city of Rancho Palos Verdes.
The homeowners who rent room(s)/homes using these unregulated services are running commercial
businesses, a hotel, in residentially zoned areas without business licenses or permits. Further, appropriate hotel
taxes are also not being collected on behalf of the city.
Having these commercial businesses in our residentially zoned neighborhoods:
Reduces property values
Increases traffic and parking congestion
Changes the character of our neighborhoods
Increases crime risk with influx of transient visitors
We ask the City Council to follow the lead of Rolling Hills, Manhattan Beach and Santa Monica to ban these
short-term rental services from operating within Rancho Palos Verdes.
I. We, the undersigned, are concerned citizens, are petitioning our city leaders to pass a city ordinance to ban
. . short term home and room rental services, such as Airbnb, in the city of Rancho Palos Verdes.
-· -------·---'----------------------------------------------'
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I Address I Date i
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60
Petition to Ban Airbnb in the City Of Rancho Palos Verdes
Petition summary
and background
, ,
We the undersigned, are petitioning your office to pass a city ordinance to ban short term home and room rental
services, such as Airbnb, in the city of Rancho Palos Verdes.
The homeowners who rent room(s)/homes using these unregulated services are running commercial
businesses, a hotel, in residentially zoned areas without business licenses or permits. Further, appropriate hotel
taxes are also not being collected on behalf of the city.
Having these commercial businesses in our residentially zoned neighborhoods:
Reduces property values
Increases traffic and parking congestion
-Changes the character of our neighborhoods
-Increases crime risk with influx of transient visitors
We ask the City Council to follow the lead of Rolling Hills, Manhattan Beach and Santa Monica to ban these
short-term rental services from operating within Rancho Palos Verdes.
Action petitioned for I We, the undersigned, are concerned citizens, are petitioning our city leaders to pass a city ordinance to ban
._ short term home and room rental services, such as in the of Rancho Palos Verdes.
1 Printed Name Signature ~----,,-----~~-"' -----~-·--·--+---~-~'-'"¥ -~
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61
Petition to Ban Airbnb in the City Of Rancho Palos Verdes
Petition summary
and background
We the undersigned, are petitioning your office to pass a city ordinance to ban short term home and room rental
services, such as Airbnb, in the city of Rancho Palos Verdes.
The homeowners who rent room(s)/homes using these unregulated services are running commercial
businesses, a hotel, in residentially zoned areas without business licenses or permits. Further, appropriate hotel
taxes are also not being collected on behalf of the city.
Having these commercial businesses in our residentially zoned neighborhoods:
Reduces property values
Increases traffic and parking congestion
Changes the character of our neighborhoods
Increases crime risk with influx of transient visitors
We ask the City Council to follow the lead of Rolling Hills, Manhattan Beach and Santa Monica to ban these
i short-term rental services from operating within Rancho Palos Verdes.
fAct-i~;:;-p;titi~;:;~d-f~~---We, the undersigned, are concerned citizens, are petitioning our city leaders to pass a city ordinance to ban
short term home and room rental services, such as Airbnb, in the city of Rancho Palos Verdes.
(_!>rin~~---N_a_m_e ____ _ i Signature
~e_rt::sBC\t 1
f( ~ yorcn< ~ \ ~a r°'
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i Address [ Date I
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62
Petition to Ban Airbnb in the City Of Rancho Palos Verdes
Petition summary
and background
;
We the undersigned, are petitioning your office to pass a city ordinance to ban short term home and room rental
services, such as Airbnb, in the city of Rancho Palos Verdes.
The homeowners who rent room(s)/homes using these unregulated services are running commercial
businesses, a hotel, in residentially zoned areas without business licenses or permits. Further, appropriate hotel
taxes are also not being collected on behalf of the city.
Having these commercial businesses in our residentially zoned neighborhoods:
Reduces property values
Increases traffic and parking congestion
Changes the character of our neighborhoods
Increases crime risk with influx of transient visitors
i We ask the City Council to follow the lead of Rolling Hills, Manhattan Beach and Santa Monica to ban these
1 I short-term rental services from operating within Rancho Palos Verdes.
[ A~tl~~p~liti~~edf~~-., We, the undersigned, are concerned citizens, are petitioning our city leaders to pass a city ordinance to ban
:__________ 1 short term home and room rental services, such as .Airbnb, in the city of Rancho Palos Verdes.
f Printed Na~:-~---·-· .-----~--=~~-Slg~~-~ :==-----_----l_~dd;_-~~~··~~·-----·--=---·---~--· ~_j D~!i~=~-~ -~
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63
Petition to Ban Airbnb in the City Of Rancho Palos Verdes
Petition summary
and background
We the undersigned, are petitioning your office to pass a city ordinance to ban short term home and room rental
services, such as Airbnb, in the city of Rancho Palos Verdes.
The homeowners who rent room(s)/homes using these unregulated services are running commercial
businesses, a hotel, in residentially zoned areas without business licenses or permits. Further, appropriate hotel
taxes are also not being collected on behalf of the city.
Having these commercial businesses in our residentially zoned neighborhoods:
-Reduces property values
-Increases traffic and parking congestion
-Changes the character of our neighborhoods
Increases crime risk with influx of transient visitors
J We ask the City Council to follow the lead of Rolling Hills, Manhattan Beach and Santa Monica to ban these
, I short-term rental services from operating within Rancho Palos Verdes.
r-·--~-----~-·---~ ; --
Action petitioned for I We, the undersigned, are concerned citizens, are petitioning our city leaders to pass a city ordinance to ban
1 short term h~"me an~_room rental services, such as Airbnb, in the city of Rancho Palos Verdes.
--·· ~ --··--... -.. _,_ ·---~--· --· ,.,... .. -·
Printed Name Signature ! Address ! Date . --r£S41 &dd1~~r-·b=--~~70~ ~H~k bn
64