CC SR 20191203 G - Short-Term Rental Status ReportRANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 12/03/2019
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA DESCRIPTION:
Consideration and possible action to receive and file a status report on the City’s
enforcement of the 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: Kit Fox, AICP, Interim Deputy Director of Community Development
APPROVED BY: Ara Mihranian, AICP, Interim 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 Zoning 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 prohibited. In doing so, the City Council determined that
short-term rentals (STRs) — rentals 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 this same date, 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 Zoning Code to affirm the prohibition of STRs, to prohibit the
advertisement of STRs in the City’s residential zoning districts, and to codify definitions
for advertisement, responsible party, and STRs. The adoption of the urgency ordinance
authorized the City to immediately enforce the City’s prohibition of the advertisement
and operation of STRs. On January 17, 2017, the City Council adopted Ordinance No.
1
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.
On November 8, 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, the City Council adopted Urgency Ordinance No. 604U to
expand the definition of STRs to include commercial uses unless expressly permitted by
the City. This urgency ordinance was followed by the adoption of Ordinance No. 605 on
February 20, 2018, codifying the expanded definition through the regular code
amendment process.
DISCUSSION
Soon after the City Council affirmed the prohibition of STRs in the City’s residential and
multi-family zoning districts, the City’s Code Enforcement Division began to enforce it 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), 65 code enforcement cases were opened since September 2016,
of which five were opened since the last status report was presented to the City Council
on February 5, 2019. These property owners were notified by the City that advertising or
operating a STR is prohibited. In response to the City’s notice, 47 cases were brought
into compliance and closed without any further enforcement. The remaining 18 cases,
including one case opened in 2019, 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 range from
$2,500 for a first violation up to $7,500 for a third and subsequent violations. In total, the
City issued $170,000 in administrative citations (this figure includes a total of $112,500
in citations issued to one property owner in 2016 who repeatedly violated the prohibition
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. Under these code provisions, 11 property owners appealed the 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 $55,240.94 (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 bring the total administrative citation s
collected to $55,240.94. To date, this property owner has paid the City $6,000 in fines.
The Code Enforcement Division continues to monitor various website host platforms for
the advertisement or operation of STRs. Since September 2016, the number of code
enforcement cases involving STRs has been drastically reduced, based on the
implementation of the following enforcement methods:
2
Notice of Violation Letters: The City issues a Notice of Violation letter to a
property owner identified as either advertising or operating a STR, giving him
or her 30 days to cease and desist. After 30 days, a noncompliant property
owner will be issued an administrative citation.
Increased Penalty Fines for Administrative Citation: As an additional deterrent,
the City Council amended the penalty fines so that the administrative citation
for STRs begins at $2,500 for a first offense, increases to $5,000 for a second
offense, and to $7,500 for a third and subsequent offenses.
Public Outreach: To ensure the community is aware of the STR ban, in 2017,
the City launched a public outreach campaign. 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 and continues to meet with individual homeowners associations
to explain the prohibition. Increased public awareness has assisted the City
with enforcement because when residents are aware of the prohibition, they
are more likely to self-police this activity by reporting it to the City.
Collaboration with South Bay Cities: Staff communicated with other South Bay
cities that have addressed issues with STRs to identify solutions to enforce the
prohibition in a more efficient and enforceable manner. Additionally, Staff
attended various meetings held by the South Bay Cities Council of
Governments to discuss the issue of STRs and to exchange information
related to STR complaints, enforcement costs, options, and challenges.
Collaboration with the Sheriff’s Department: Staff worked with former Captain
Beringer of the Los Angeles County Sheriff’s Department 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.
Host Compliance Platform Monitoring: Staff is preparing a contract with Host
Compliance to monitor potential STR postings on the internet. The contract will
allow Host Compliance to monitor all possible STRs in the City across all major
platforms in order to reduce all STRs, at a cost not to exceed $8,000 per year.
STR Prohibition Upheld by the Courts: Recently, the 9th U.S. Circuit Court of
Appeals dismissed a putative class action against the City of Santa Monica for
violating the dormant Commerce Clause of the U.S. Constitution with its STR
ordinance (Rosenblatt v. City of Santa Monica). Multiple panels were held on
whether the City of Santa Monica violated the clause, and found that the
complaint failed to demonstrate how the ordinance allegedly burdened
interstate commerce. The panel also stated the City of Santa Monica’s
3
ordinance did not discriminate against interstate commerce by favoring in-state
over out-of-state interests.
Since the City Council’s affirmation that STRs are prohibited in the City, Staff has taken
numerous steps to notify property owners in the City of known violations. In addition,
Staff has continued to gather additional information on the best enforcement practices
to address STR violations. As a result, Staff will continue to enforce STR violations, and
proactively search for STRs on website host platforms.
4
STREET NAME
DATE COMPLAINT
RECEIVED VIOLATION
DATE CITY VIOLATION
LETTER SENT ACTION CITATION ISSUED CITATION AMOUNT ISSUED
CITATION /
FEES
COLLECTED
Lobrook Dr.10/8/2019 Notice of Violaton issued for
advertising & operating a STR.10/30/2019 Currently Ongoing No
Palos Verdes Dr.
E.9/19/2019 Notice of Violation issued for
advertising a STR.9/19/2019 Ad Reflects Monthly Stay No
Admirable Dr 7/16/2019 Notice of Violaton issued for
advertising & operating a STR.7/23/2019 Ad Reflects Monthly Stay No
Palos Verdes Dr.
S.4/10/2019 Notice of Violaton issued for
advertising & operating a STR.4/10/2019 Citation Issued Yes $7,500.00
Avenida Classica 2/5/2019 Notice of Violation issued for
advertising a STR.2/5/2019 Ad Removed No
Sea Raven Dr.12/18/2018 Notice of Violation issued for
advertising a STR.12/19/2018 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
Grayslake Rd.12/10/2018 Notice of Violation issued for
advertising a STR.12/18/2018 Ad Reflects Monthly Stay No
Basswood 12/6/2018 Notice of Violaton issued for
advertising a STR.12/6/2018 NOV Issued - Follow-up in
February No
Tarragon Rd.4/26/2018 Notice of Violaton 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
Short-Term Rental - Code Enforcement Case Summary
A-1
STREET NAME
DATE COMPLAINT
RECEIVED VIOLATION
DATE CITY VIOLATION
LETTER SENT ACTION CITATION ISSUED CITATION AMOUNT ISSUED
CITATION /
FEES
COLLECTED
Eddinghill Ave.2/24/2018 Notice of Violaton 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
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
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
Via Subida 7/27/2017 Notice of Violaton 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
Albero Ct.12/26/2016 Notice of Violation 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 $ -
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
Page 2 of 7 A-2
STREET NAME
DATE COMPLAINT
RECEIVED VIOLATION
DATE CITY VIOLATION
LETTER SENT ACTION CITATION ISSUED CITATION AMOUNT ISSUED
CITATION /
FEES
COLLECTED
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
Deluna Dr.12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Removed No
General St.12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Removed No
Grovespring 12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Reflects Monthly Stay No
Jaybrook Dr.12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Removed No
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
Page 3 of 7 A-3
STREET NAME
DATE COMPLAINT
RECEIVED VIOLATION
DATE CITY VIOLATION
LETTER SENT ACTION CITATION ISSUED CITATION AMOUNT ISSUED
CITATION /
FEES
COLLECTED
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
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
Shire Oaks Dr.12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Removed No
Tarragon Rd.12/26/2016 Notice of Violation issued for
advertising a STR.2/2/2017 Ad Removed No
Tarragon Rd.12/26/2016 Notice of Violaton 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
Page 4 of 7 A-4
STREET NAME
DATE COMPLAINT
RECEIVED VIOLATION
DATE CITY VIOLATION
LETTER SENT ACTION CITATION ISSUED CITATION AMOUNT ISSUED
CITATION /
FEES
COLLECTED
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 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
Avenida Altisima 9/27/2016 Notice of Violaton 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
Page 5 of 7 A-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 Notice of Violaton 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 $6,000.00
Eddinghill Ave.9/27/2016 Notice of Violaton 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
Fond Du Lac Rd.9/27/2016 Notice of Violaton 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 Notice of Violaton 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
Hightide Dr.9/27/2016 Notice of Violation issued for
advertising a STR.10/4/2016 Ad Removed No
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
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
Narcissa Dr.9/27/2016 Notice of Violation issued for
advertising a STR.10/4/2016 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
Page 6 of 7 A-6
STREET NAME
DATE COMPLAINT
RECEIVED VIOLATION
DATE CITY VIOLATION
LETTER SENT ACTION CITATION ISSUED CITATION AMOUNT ISSUED
CITATION /
FEES
COLLECTED
$170,000.00 $ 55,240.94
Page 7 of 7 A-7