CC SR 20190219 G - Short-Term Rental Status ReportRANCHO PALOS VERDES CITY COUNCIL
AGENDA REPORT
MEETING DATE: 2/19/2019
AGENDA HEADING: Consent Calendar
AGENDA DESCRIPTION:
Consideration and possible action to receive and file a status report on the enforcement
of the City’s prohibition of short-term rentals.
RECOMMENDED COUNCIL ACTION:
(1) Receive and file a status report on the enforcement of the City’s prohibition of
short-term rentals.
FISCAL IMPACT: None
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Kevin Le, Code Enforcement Officer KL
REVIEWED BY: Ara Mihranian, AICP, Director of Community Development
APPROVED BY: Doug Willmore, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Code Enforcement Short-Term Rental Case Summary Table (page A-1)
BACKGROUND
On September 20, 2016, the City Council affirmed that the City’s Development Code is
a permissive code, in that if a land use is not specifically identified as a permitted use,
then it is to be considered as prohibited. In doing so, the City Council determined that
short-term rentals (a rental of less than 30 days) are prohibited within the City’s Single-
Family Residential and Multi-Family Zoning Districts since they’re not enumerated as a
permitted use.
On December 20, 2016, the City Council adopted Urgency Ordinance No. 592U, which
immediately amended Chapter 17.02 (Single-Family Residential (RS) Districts), Chapter
17.04 (Multi-Family Residential (RM) Districts), and Chapter 17.96 (Definitions) of Title
17 of the City’s Development Code to affirm the prohibition of short-term rentals, to
prohibit the advertisement of short-term rentals in the City’s Residential and Multi-
Family Zoning Districts, and to codify definitions for advertisement, responsible party,
and short-term rentals. The adoption of the urgency ordinance authorized the City to
immediately enforce the City’s prohibition of the advertisement and operation of short-
term rentals (STR). Subsequently, in January 2017, the City Council adopted Ordinance
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No. 593, which codified the City’s prohibition of advertising or operating a STR in the
City’s Residential and Multi-Family Zoning Districts through the regular code
amendment process.
In November of 2017, in response to resident complaints that certain properties were
being rented on a short-term basis for commercial events, such as weddings, bachelor
parties, and bridal showers to name a few, the City Council adopted Urgency Ordinance
No. 604U to expand the definition of a STR to include commercial uses unless
expressly permitted by the City. This Urgency Ordinance was followed by the adoption
of Ordinance No. 605 codifying the expanded definition through the regular code
amendment process.
DISCUSSION
Soon after the City Council affirmed that STRs were prohibited in the City’s Residential
and Multi-Family Zoning Districts, the City’s Code Enforcement Division began to
enforce the prohibition by investigating complaints, providing notices of violation, and
citing property owners that were found to be in violation of the City’s ordinance. As
summarized in the attached table (Attachment A), 60 code enforcement cases were
opened since September 2016. These property owners were notified by the City that
advertising or operating a STR is prohibited in the City. In response to the City’s notice,
44 cases were brought to compliance and the cases were closed without any further
enforcement. The remaining 16 cases were issued administrative citations for
continuing to advertise and/or operate a STR after being notified by the City.
According to the City’s Administrative Fine Schedule, administrative citations for STR-
related violations range between $2,500 for the first violation up to $7,500 for the third
and subsequent violation. In total, the City issued $162,500 in administrative citations
(this figure includes a total of $112,500 in citations issued to one property owner who
repeatedly violated the City’s ordinance for approximately two years). Pursuant to
Chapter 1.16 of the Rancho Palos Verdes Municipal Code, a property owner may
appeal an Administrative Citation to the City’s Hearing Officer. As a result of this Code
provision, 11 property owners appealed City-issued Administrative Citations. Based on
the outcome of the Hearing Officer’s decisions and other settlements between property
owners and the City, to date, the City has collected $49,990.94 (this figure includes
penalty fines and City-incurred costs). This figure does not include the entire settlement
amount of $45,000 between the City and the property owner who incurred a total of
$112,500 in citations that will be paid in monthly increments of $750, which would
eventually bring the total administrative citation collected to $94,990.94.
Since September 2016, because of the significant enforcement actions taken, the
number of code enforcement cases involving a STR has drastically reduced over time.
Staff attributes this reduction to the following enforcement program strategies:
• Notice of Violation Letters: The City issues a Notice of Violation letter to
property owners identified as either advertising or operating a short-term
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rental, giving them 30 days to cease and desist. Unlike typical code
enforcement cases where a property owner has three opportunities to comply,
in the case of STRs, after 30-days, a noncompliant property owner will be
issued an administrative citation, as described below.
• Increased Penalty Fines for Administrative Citation: To be more punitive and to
serve as a deterrent, the City Council amended the penalty fines in 2017 so
that the administrative citation for violating the City’s STR ordinance began at
$2,500 for the first offense, $5,000 for the second offense, and $7,500 for the
third and subsequent offenses. The increased fine amounts have effectively
served the City in its enforcement.
• Public Outreach: In order to ensure that the community was aware of the
City’s ordinance, in 2016, the City launched an aggressive public campaign to
raise awareness of the STR prohibition. In addition to posting information on
the City’s website and social media platforms (Facebook and Nextdoor), the
City met with the Rancho Palos Verdes Council of Homeowners Associations
(CHOA) and individual homeowners associations to explain the prohibition and
enforcement program. The increased public awareness assisted the City with
the enforcement of the prohibition because residents were made aware of the
prohibition and several neighborhood residents took it upon themselves to
self-police this activity by monitoring and reporting it to the City.
• Collaboration with Other Beach Cities: Staff communicated with other South
Bay Cities to collectively identify solutions to enforce the STR prohibition in a
more efficient and enforceable manner. Additionally, Staff attended various
meetings held by the South Bay Cities Council of Government (SBCCOG) to
discuss the issue of STRs and to exchange information related to complaints,
enforcement costs, legal options, and challenges.
• Collaboration with the LA County Sheriff’s Department: Staff worked closely
with former Captain Beringer of the Los Angeles County Sheriff’s Department
(LASD) to enforce the prohibition of STRs used as party houses, and to identify
effective strategies to collaboratively address complaints associated with STRs
in the City.
• Collaboration with the City Attorney: The City Attorney’s office was
instrumental in identifying areas of the Municipal Code that should be amended
to further bolster the administrative citation process and penalty fines, as well
as identifying the City’s legal options depending on the case. Additionally, the
City Attorney’s office assisted with the implementation of the enforcement
program, especially in cases involving multiple time offenders where a
significant evidence chain needed to be developed for later court action.
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The City’s enforcement program has been effective in reducing the number of STR
violations since the program began in late 2016. That said, the City’s Code
Enforcement Division continues to gather the latest information on the best enforcement
practices to address STR violations, and continues to monitor various website host
platforms for the advertisement and/or operation of STRs.
4
STREET NAME
DATE COMPLAINT
RECEIVED VIOLATION
DATE CITY VIOLATION
LETTER SENT ACTION CITATION ISSUED CITATION AMOUNT ISSUED
CITATION /
FEES
COLLECTED
Albero Ct.12/26/2016 Notice of Violation (NOV)
issued for advertising a STR.2/2/2017 Ad Removed No $ -
Armaga Spring
#B 12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Removed No $ -
Armaga Spring
Rd.12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Removed No $ -
Avenida Altisima 9/27/2016 NOV issued for advertising &
operating a STR.10/4/2016
Admin citation issued.
Appealed. Hearing Officer
ruled in favor of property
owner. Refund. No Ad
observed to date.
Yes $ 2,500.00 Refunded
Avenida Altisima 9/27/2016 Notice of Violation issued for
advertising a STR.9/27/2016
Admin. citation issued in
2017. Appealed citation.
Hearing Officer upheld
citation. Citation paid plus
admin costs. Ad now reflects
monthly stays.
Yes $ 2,500.00 $ 4,516.35
Basswood 12/6/2018 NOV issued for advertising a
STR.12/6/2018 NOV Issued - Follow-up in
February No
Blackhorse Rd.12/26/2016 Notice of Violation issued for
advertising a STR.10/19/2018 Ad Reflects Monthly Stay No
Cachan Pl.12/26/2016 Notice of Violation issued for
advertising a STR.3/13/2018
Admin Citation Issued. Late
fees applied. Ad now
reflects monthly stays
Yes $ 2,500.00 $ 3,750.00
Calle De Suenos 12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Removed No
Calle Viento 12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Removed No
Chandeleur Dr.12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Removed No
Channelview Ct.12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Removed No
Coral Ridge Rd.12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Removed No
Short-Term Rental - Code Enforcement Case Summary
A-1
Page 2 of 5
STREET NAME
DATE COMPLAINT
RECEIVED VIOLATION
DATE CITY VIOLATION
LETTER SENT ACTION CITATION ISSUED CITATION AMOUNT ISSUED
CITATION /
FEES
COLLECTED
Crest Ave.9/27/2016 NOV issued for advertising &
operating a STR.9/27/2016
Advertisement and
operation stopped.
Settlement in the amount of
$45,000 (at $750 per
month). Citation amount
collected as of 1/5/19
Yes $112,500 $750.00
Deluna Dr.12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Removed No
Eddinghill Ave.9/27/2016 NOV issued for advertising &
operating a STR.9/27/2016
Ad reflects monthly stays.
First Citation was issued for
$2500 and the Hearing
Officer ruled on December
8, 2017 in favor of
property owner. Refund
issued.
Yes $2,500.00 refunded
Eddinghill Ave.2/24/2018 NOV issued for advertising &
operating a STR.2/24/2018
New violation reported.
Complaint filed with the LA
Superior Court on April 17,
2018. Settlement
Agreement in the Amount of
$10,000 (Includes Admin
Cost). Payment made
$10,000.00
Fond Du Lac Rd.9/27/2016 NOV issued for advertising &
operating a STR.9/27/2016
Admin Hearing. Hearing
Officer Upheld City's
Citation. Citation paid plus
admin costs. No ad posted
to date.
Yes $ 7,500.00 $ 8,793.95
Fond Du Lac Rd.9/27/2016 NOV issued for advertising &
operating a STR.9/27/2016
Admin Hearing. Hearing
Officer Upheld City's
Citation. Citation paid plus
admin costs. No ad posted
to date.
Yes $ 7,500.00 $ 8,793.95
General St.12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Removed No
Grayslake Rd.12/10/2018 Notice of Violation issued for
advertising a STR.12/18/2018 Ad Reflects Monthly Stay No
Grovespring 12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Reflects Monthly Stay No
Hightide Dr.9/27/2016 Notice of Violation issued for
advertising a STR.10/4/2016 Ad Removed No
A-2
Page 3 of 5
STREET NAME
DATE COMPLAINT
RECEIVED VIOLATION
DATE CITY VIOLATION
LETTER SENT ACTION CITATION ISSUED CITATION AMOUNT ISSUED
CITATION /
FEES
COLLECTED
Indian Peak Rd.9/27/2016 Notice of Violation issued for
advertising a STR.9/27/2016
Citation issued. Appealed.
Hearing Officer upheld
City's decision. Citation paid
plus admin costs. Ad now
reflects monthly stays.
Yes $ 2,500.00 $ 3,636.69
Jaybrook Dr.12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Removed No
Larchbluff 9/27/2017 Notice of Violation issued for
advertising a STR.9/27/2017 Citation issued and paid.
Ad Removed Yes $2,500.00 $ 2,500.00
Limetree Rd.9/27/2016 Notice of Violation issued for
advertising a STR.9/27/2016
City's citation was
appealed and heard by
Hearing Officer who settled
partly with property owner.
City refunded half of the
Admin. Citation. Ad now
Reflects Monthly Stay
yes $2,500.00 $1,250.00
Lobrook Dr.12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Removed No
Lorraine Rd.12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Removed No
Lucania Dr.12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Removed No
Matisse Dr.12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Reflects Monthly Stay No
Montemalaga Dr.12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Reflects Monthly Stay No
Narcissa Dr.9/27/2016 Notice of Violation issued for
advertising a STR.10/4/2016 Ad Reflects Monthly Stay No
Narcissa Dr.12/26/2016 Notice of Violation issued for
advertising a STR.9/7/2016
Citation issued for
advertising and operating.
Appealed by property
owner. Hearing Officer
ruled in favor of property
owner. Refund issued. No
new ads to date.
yes $2,500.00 refunded
Nuvola Ct.12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Removed No
A-3
Page 4 of 5
STREET NAME
DATE COMPLAINT
RECEIVED VIOLATION
DATE CITY VIOLATION
LETTER SENT ACTION CITATION ISSUED CITATION AMOUNT ISSUED
CITATION /
FEES
COLLECTED
Packet Rd.12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Removed No
Palos Verdes Dr.
E.12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Removed No
Palos Verdes Dr.
S.12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Removed No
Palos Verdes Dr.
S.12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Removed No
Pomegranite 12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Removed No
Purple Ridge Rd.12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Removed No
Redondela Dr.12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Reflects Monthly Stay No
Rockinghorse Rd.12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Reflects Monthly Stay No
San Ramon Dr.12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Removed No
Scotmist Dr.12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Removed No
Sea Raven Dr.12/18/2018 Notice of Violation issued for
advertising a STR.12/19/2018 Ad Removed No
Shire Oaks Dr.12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Removed No
Silver Arrow Dr.12/18/2018 Notice of Violation issued for
advertising a STR.12/18/2018 Ad Reflects Monthly Stay No
Sunnyside Ridge
Rd.9/27/2016 Notice of Violation issued for
advertising a STR.10/4/2016 Ad Removed No
Tarragon Rd.12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Removed No
A-4
Page 5 of 5
STREET NAME
DATE COMPLAINT
RECEIVED VIOLATION
DATE CITY VIOLATION
LETTER SENT ACTION CITATION ISSUED CITATION AMOUNT ISSUED
CITATION /
FEES
COLLECTED
Tarragon Rd.12/26/2016 NOV issued for advertising &
operating a STR.2/2/2017
Admin Citation Issued.
Appealed. Hearing Officer
ruled in favor of property
owner. Refund issued.
Yes $2,500 refunded
Tarragon Rd.4/26/2018 NOV issued for advertising &
operating a STR.4/26/2018
Admin Citation issued in the
amount of $2,500 and
Admin Citation issued in the
amount of $5,000.00.
Appealed. Hearing Officer
upheld City's Decision.
Settlement Agreement
($4000 City refunded).
yes $7,500 $3,500
Thyme 9/27/2017 Notice of Violation issued for
advertising a STR.9/27/2017 Citation issued and paid.
No ad posted to date.Yes $2,500.00 $2,500.00
Trailriders Rd.12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Reflects Monthly Stay No
Via la Rocca 12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Removed No
Via Rivera 12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Removed No
Via Sonoma 12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Reflects Monthly Stay No
Via Subida 7/27/2017 NOV issued for advertising &
operating a STR.9/1/2017
Admin citation issued.
Appealed. Hearing Officer
ruled in favor of property
owner. Refund issued. No
new ads.
Yes $2,500.00 refunded
Via Victoria 12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Removed No
Vigilance Dr.12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Removed No
$162,500.00 $ 49,990.94
A-5