Loading...
PC 2019-09-03_9a Vacation Rental Ordinance Status ReportMEMORANDUM TO: PLANNING COMMISSION FROM: TERESA McCLISH, COMMUNITY DEVELOPMENT DIRECTOR BY: MATTHEW DOWNING, PLANNING MANAGER ANDREW PEREZ, ASSISTANT PLANNER SUBJECT: CONSIDERATION OF A STATUS REPORT ON THE CITY’S SHORT TERM RENTAL ORDINANCE DATE: SEPTEMBER 3, 2019 SUMMARY OF ACTION: The Planning Commission will discuss aspects of the City’s short term rental ordinance and make recommendations to the City Council. IMPACT TO FINANCIAL AND PERSONNEL RESOURCES: Short term rentals generate approximately $44,000 annually in Transient Occupancy Tax for the City’s General Fund. Depending on any future action taken by the Council to modify the Ordinance, this figure could increase or decrease. Approximately fifteen (15) hours of staff time were utilized to produce this report. RECOMMENDATION: It is recommended that the Planning Commission discuss the short term rental ordinance, provide feedback to staff, and make a recommendation to the City Council, if determined necessary. BACKGROUND: On June 10, 2014, the City Council adopt ed Ordinance No. 663 (“Ordinance”), establishing vacation rentals and homestays as permitted land uses in the City’s residential zoning districts, subject to the approval of a Minor Use Permit -Plot Plan Review (Attachment 1). The Ordinance defines a vacation rental as a structure being rented for less than thirty (30) days without concurrently being occupied by the owner/operator where the short-term lodging is provided for compensation, whereas a homestay is an owner-occupied dwelling unit where a maximum of two (2) short term lodging rooms are provided for compensation. Due to concerns expressed by members of the public, both the Planning Commission and City Council discussed potential issues arising from short term rentals related to noise, parking, and other general nuisances during development of the Ordinance. Item 9a - Page 1 PLANNING COMMISSION CONSIDERATION OF A STATUS REPORT ON THE CITY’S SHORT TERM RENTAL ORDINANCE SEPTEMBER 3, 2019 PAGE 2 From those discussions, performance standards were created against which a short term rental application is evaluated. Among these performance standards is a requirement to provide a local contact entity within a fifteen (15) minute drive of proposed vacation rentals to address noise and general disturbance issues that may arise from the short term rental, as well as a 300-foot buffer between the same type of rentals on the same street is to address the potential for oversaturation of short term rentals in a neighborhood. The City Council ultimately determined that these potential nuisances could be addressed by compliance with the performance standards outlined in the Ordinance and by operators abiding by conditions of approval. At the time the Ordinance was adopted, it was determined that these issues were found to be consistent with instances when long-term renters, homeowners, and even private guests of homeowners are the cause of these types of nuisances. The Council also found that with a vacation rental having the local contact available to address any complaints helps motivate property owners to comply with the conditions of approval to avoid possible revocation of the permit. For homestays, the owner resides on the property and was anticipated to personally desire to minimize nuisance issues. In the intervening five (5) years, a number of things have changed regarding implementation of the Ordinance including permit volume, monitoring, rules for, accessory dwelling units (ADUs), and rental housing stock. In the most recent years, a steep increase in the number of vacation rental applications has been observed . Noncompliant operators, those individuals not obtaining proper permitting either through lack of information or outright defiance of the rules , have also been identified as an issue as the popularity of the sharing economy has altered the market. Additionally, due to increasing housing prices throughout California, the State has put in place rules for ADUs that were not anticipated at the time the Ordinance was developed. Lastly and similarly to the housing crisis in the State, concerns regarding impacts to our loca l rental housing stock have been raised. As a result, the Council requested an informational item be brought forward to provide an update on the Ordinance and options for compliance enforcement. Prior to the item being brought forward to the Council, and because the Planning Commission has recently heard a number of vacation rental appeals, this item is being brought forward as an opportunity for discussion and input prior to Council consideration and direction. ANALYSIS OF ISSUES: Trends When the Ordinance went into effect in 2014, it was a first of its kind in San Luis Obispo County. While drawing on existing regulations implemented sporadically throughout the County, the Ordinance was attempting to address the growing trend in home sharing by regulating both vacation rentals and homestays. Since the Ordinance’s implementation, the City has permitted thirty-nine (39) vacation rentals and twenty-five (25) homestays. Item 9a - Page 2 PLANNING COMMISSION CONSIDERATION OF A STATUS REPORT ON THE CITY’S SHORT TERM RENTAL ORDINANCE SEPTEMBER 3, 2019 PAGE 3 In the past twelve (12) months, seventeen (17) applications for vacation rentals were submitted, while only two (2) applications for homestays have been received. The number of vacation rental and homestay applications were somewhat even prior to that. The graph below displays the total number of applications received for vacation rentals and homestays since implementation of the Ordinance: 0 2 4 6 8 10 12 14 16 18 2014 2015 2016 2017 2018 2019 Short Term Rentals Approved: 2014-2019 Homestays Vacation Rentals Neighborhood Impacts Since the adoption of the Ordinance, five (5) applications approved by the Community Development Director for the establishment of a vacation rental have be en appealed to the Planning Commission. Appellants generally cited the same reasons for their appeal, typically including concerns regarding: Noise; Traffic; Parking; Strangers; and Loss of property values. In each case, the appeal has been denied by the Planning Commission and the Community Development Director’s decision was upheld. The Planning Commission has indicated in each of the appeals that although neighbors have concerns regarding nearby rentals, the concerns they raise were either discussed during development of the Ordinance, are addressed by the performance standards required for the vacation rentals, or addressed by conditions of approval implemented for the project. There have been very few, if any, complaints submitted against properties with permitted vacation rentals since the Ordinance went into effect. This is attributed to the fact that either the requirement for vacation rentals to have a local contact entity handle complaints has Item 9a - Page 3 PLANNING COMMISSION CONSIDERATION OF A STATUS REPORT ON THE CITY’S SHORT TERM RENTAL ORDINANCE SEPTEMBER 3, 2019 PAGE 4 worked and been beneficial, or that the permitted renta ls are operating within their allowances and truly not impacting neighboring properties. Housing Needs The City’s General Plan is the blueprint for how development and activities are to occur within City limits. Housing Element Policy B.6. states: “The City shall continue to regulate the use of existing residences on residentially zoned properties for vacation rentals.” Housing Element Program B.6-1 states: “The City shall monitor the loss of permanent workforce housing from vacation rentals and consider modifying the Development Code to adjust for this loss.” This is another reason that the increasing number of vacation rentals is being brought forward for Planning Commission discussion. The most recent data available from the United States Census Bureau estimates that there are 7,847 housing units in the City, and 2,169 of those are rental units (Attachment 2). Analyzing the ownership information of properties where vacation rentals are permitted indicate that a majority of the vacation rentals are rented on a part time basis when owners are absent. The remaining properties appear to be full-time rentals that do not have long term tenants of any kind. The current number of vacation rentals totals approximately two percent (2%) of the City’s total rental housing market. While this may not appear to be a significant impact on the City’s housing stock at this time, analysis was completed utilizing the City’s Geographic Information System that estimated a total of 716 vacation rentals could be permitted under the current regulations. This constitutes thirty-three percent (33%) of the City’s rental housing stock. There have been 29 building permits issued for the construction of accessory dwelling units (ADU) since 2017. Six (6) applications have been submitted to establish a homestay in a permitted ADU, while five (5) applications have been submitted to establish a vacation rental in a permitted ADU. Ten (10) of those applications were approved, and the lone application that was denied did not meet the development standards for the zone because the two -car garage was converted to the ADU, eliminating the enclosed parking for the single family residence. Th e garage conversion was allowed to permit the ADU because the property qualified for a parking exemption due to its proximity to public transit according to State law and AGMC Subsection 16.52.150.C.7.a.i. for ADUs. The requested conversion of the ADU to a vacation rental did not qualify for the parking exemption; therefore, the proposed vacation rent al did not conform to parking standards for the property and would not comply with the property development standards of the Single Family zoning district. Accessory dwelling units and the mandate by the State to ease permitting burdens in order to provide more affordable housing stock were not taken into consideration when the Ordinance was developed. If the Planning Commission is concerned with the Ordinance as it relates to short term rentals and ADUs, corrective direction for future implementation would be necessary. Previously approved short term rentals in ADUs Item 9a - Page 4 PLANNING COMMISSION CONSIDERATION OF A STATUS REPORT ON THE CITY’S SHORT TERM RENTAL ORDINANCE SEPTEMBER 3, 2019 PAGE 5 could then be determined to be legally nonconforming and allowed to continue, until such time that the use is abandoned in accordance with the AGMC. Financial Impact Operators of vacation rentals and homestays are required to obtain a Business License from the City every year, as well as remit Transient Occupancy Tax (TOT). TOT is assessed to any short term rental in the City whether it be a hotel, motel, bed and breakfast, vacation rental, or homestay at a rate of 13% of fees charged for lodging. Ten percent (10%) of this tax goes into the City’s General Fund, which is used for the maintenance of City streets and services being used by the short term occupants of these facilities. The remaining three percent (3%) goes to local and regional tourism marketing efforts. In the 2018-2019 Fiscal Year that ended on June 30, 2019 the City collected TOT in the amount of $17,270 from permitted homestays (approximately $690/homestay/year) and $27,104 from permitted vacation rentals (approximately $694/vacation rental/year), for a total of $44,374 (approximately $693/rental/year). By comparison, the City’s hotels, motels, and bed and breakfasts remitted a total of $970,032. It should be noted that a number of factors can affect these numbers, including: The frequency of rental activity; The rental cost charged per night; and The time between rental establishment and report preparation. Ordinance Enforcement One of the most difficult items associated with implementation of the Ordinance is enforcement associated with non-permitted rentals. At any given time, searches can be done on many of the popular rental sites that show rentals operating outside of City regulations. However, efforts necessary to find, geo-locate, track, build a case of facts, and attempt to rectify illegal rentals are time consuming. Staff will monitor and rectify non-compliant rentals when there is a complaint, or when staff resources are available, which is infrequent. There are companies that will utilize technology to do this work for the City, the most prolific of which is Host Compliance. Host Compliance has recently estimated that there are approximately fifty (50) unpermitted short term rentals operating in the City. In addition to the benefits of collecting the unpaid taxes, Host Compliance, or similar enforcement companies, could curb illegal short term rentals that are not subject to the same scrutiny as permitted ones. Services are offered as a menu, with each service being charged per rental within the City, per month. Specific estimates on additional TOT anticipated from enforcement efforts cannot easily be completed, as a number of assumptions would need to be made regarding the number of operators that simply cease their rental, the fees charged for these rentals, etc. However, it is anticipated that while a compliance monitoring service would cut into any additional TOT generated, the City would receive more than it currently does. Item 9a - Page 5 PLANNING COMMISSION CONSIDERATION OF A STATUS REPORT ON THE CITY’S SHORT TERM RENTAL ORDINANCE SEPTEMBER 3, 2019 PAGE 6 A number of municipalities throughout the U.S. have turned to the hosting platforms to address the issue of unpermitted rentals. The most notable is efforts cities have taken with the popular rental site AirBnB to have the platform collect and remit TOT. However, there are downsides associated with this option, including: 1.While TOT is being collected, it does not necessarily m ean that rentals will obtain proper licensing from the City; 2.Operators who utilize multiple rental management platforms have been identified as underreporting TOT when utilizing platforms other than AirBnB, as they mistakenly assume the TOT is being collected no matter where the rental is booked; and 3.Contract negotiations with AirBnB can be protracted. Parking The vast majority of the permitted vacation rentals and homestays are located on single family lots. Generally, these properties are developed with a two -car garage along with the single family dwelling. As previously stated, the majority of short term rentals are located in homes that are the owner’s primary residence and are only rented on a part- time basis. Often times these property owners leave their vehicles in the garage when they vacation and short term renters are forced to park in the driveway or on the street. The existing Ordinance does not include a specific performance standard that requires parking of any kind on site, however a lack of parking on site has become a point of contention for approvals that have been appealed. Potential Ordinance Revisions Rental Buffer The existing performance standards require a 300-foot buffer between two short term rentals on a given street. This standard allows for the possibility of rentals being back- to-back or next door to each other when the properties are located on a corner and their addresses are on different streets. This standard also only requires the 300-foot buffer between any two homestay or vacation rentals, not simply between any two short term rentals. As the Ordinance is currently written, a homestay and a vacation rental may be permitted on adjacent properties. The combination of these aspects can result in an overconcentration of short term rentals in a given area, despite compliance with the existing standards. Accessory Dwelling Units On January 1, 2017, State law streamlined the process for property owners to add a second unit on their property. The initiative has been quite successful and the City has seen a number of ADUs built. The City’s vacation rental ordinance was developed prior to that date and neither the City’s accessory dwelling unit ordinance nor vacation rental ordinance clearly allows or prohibits short term rentals in ADUs. As the State’s intent was to increase the supply of housing units that are traditionally viewed as more affordable than a market rental, prohibiting short term rentals in ADUs would be a step toward bringing the City’s regulations more in line with the State’s intentions. Item 9a - Page 6 PLANNING COMMISSION CONSIDERATION OF A STATUS REPORT ON THE CITY’S SHORT TERM RENTAL ORDINANCE SEPTEMBER 3, 2019 PAGE 7 Cap to Total Number of Short Term Rentals The last potential revision identified is a cap to the total number of short term rentals in the City. While a cap could result in an increase in illegal rentals, it can also be used as a method of protecting the City’s housing supply as highlighted in the Housing Element. A cap of vacation rentals specifically, since these have the greatest potential to be located in an available rental unit, of five perc ent (5%) would result in a total of 108 vacation rentals in the City. The city of Grover Beach recently adopted their vacation rental ordinance that caps the number of vacation rentals at one hundred (100). The downside of a cap like this is that it could encourage residents in the City to obtain proper permits without intending to rent the unit, simply to keep others from being able to obtain the permits. While these instances may be limited due to the costs associated with permitting, it could reduce future TOT generation. ALTERNATIVES: The following alternatives are provided for the Planning Commission’s consideration: 1.Provide feedback to staff regarding implementation of the existing Ordinance and provide a recommendation to the City Council regarding any further consideration of modifications to the existing Ordinance; 2.Provide other direction to staff. ADVANTAGES: Public discussion of short term rental policies provide an opportunity to evaluate what impacts there may be to potential Ordinance modification such as impacts to TOT and housing stock. DISADVANTAGES: No disadvantages are identified relating to having a public discussion about short term rental policy. ENVIRONMENTAL REVIEW: In compliance with the California Environmental Quality Act (CEQ A), it has been determined that this project is exempt from CEQA review per Section 15061(b)(3) of the CEQA Guidelines regarding the common sense exemption that CEQA applies to projects which have the potential for causing a significant effect on the environment. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in at City Hall and on the City’s website in accordance with Government Code Section 54954.2. Attachments: 1.Ordinance No. 663 2.U.S. Census Bureau 2013-2017 American Community Survey 5-Year Estimates 3.Citywide Vacation Rental map Item 9a - Page 7 ORDINANCE NO. 663 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AMENDING TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE REGARDING VACATION RENTALS AND HOMESTAYS WHEREAS, the City of Arroyo Grande ("City") currently does not regulate vacation rentals or homestays; and WHEREAS, the City does regulate similar transient uses with similar impacts such as bed and breakfast inns; and WHEREAS, the City Council finds that, unless properly regulated, vacation rentals and homestays can result in adverse impacts to adjacent properties; and WHEREAS, the purpose of these regulations is to ensure that vacation rentals and homestays conform to the existing character of the neighborhood in which they are located and do not create an adverse impact on adjacent properties; and WHEREAS, the increasing popularity of vacation rentals and homestays in the City the implementation of appropriate regulations to ensure that impacts are addressed and the character of existing neighborhoods is maintained, while providing an expanded type of lodging facility available within the City; and WHEREAS, it is the purpose of this Ordinance to protect the public health, safety, and welfare within the City by establishing rules and requirements for vacation rentals and homestays; and WHEREAS, after consideration of all testimony and all relevant evidence, the City Council has determined that the following Development Code Amendment findings can be made in an affirmative manner: A. The proposed revisions to Title 16 are required to ensure consistency with the objectives, policies and implementation measures of the General Plan, particularly the Land Use Element, and is therefore desirable to implement the provisions of the General Plan. B. The proposed revisions to Title 16 will not adversely affect the public health, safety, and welfare or result in an illogical land use pattern. C. The proposed revisions are consistent with the purpose and intent of Title 16 and satisfy the intent of Chapter 16.08 of the Municipal Code and provide for internal consistency. D. The proposed revisions to Title 16 are exempt under per Sections 15061(b)( 3) and 15308 of the California Environmental Quality Act (CEQA) Guidelines. ATTACHMENT 1 Item 9a - Page 8 ORDINANCE NO. 663 PAGE 2 NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Arroyo Grande as follows: SECTION 1: The above recitals and findings are true and correct and incorporated herein by this reference. SECTION 2: Arroyo Grande Municipal Code Section 16.52.230 is hereby added as follows: SECTION 16.52.230 —VACATION RENTALS A. Purpose and intent. The purpose of these regulations is to ensure that vacation rentals located in the city conform to the existing character of the neighborhood in which they are located and do not create an adverse impact on adjacent properties. B. Applicability. Vacation rentals may be permitted only with approval of a minor use permit. Vacation rentals shall comply with the property development standards of the underlying district and the performance standards and special conditions listed in Section 16.52.230.C. C. Performance standards and conditions for vacation rentals. 1. Operators of vacation rentals are required to obtain a minor use permit- plot plan review (Section 16.16.080) and a business license. 2. Any proposed vacation rental shall be compatible with the neighborhood in which it is located in terms of landscaping, scale and architectural character. The use shall be harmonious and compatible with the existing uses with the neighborhood 3. All Building Code and Fire Code requirements for the level of occupancy of the vacation rental shall be met. 4. All environmental health regulations shall be met. 5. The operator of the vacation rental shall, at all times while the property is being used as a vacation rental, maintain a contact person/entity within a fifteen (15) minute drive of the property. The contact person or entity must be available via telephone twenty-four (24) hours a day, seven (7) days a week, to respond to complaints regarding the use of the vacation rental. The contact person or entity shall respond, -either in person or by return telephone call, with a proposed resolution to the complaint within three (3) hours between 7:00 am and 9:00 pm, and within thirty (30) minutes between 9:00 pm and 7:00 am. Item 9a - Page 9 ORDINANCE NO. 663 PAGE 3 6. The operator of the vacation rental shall annually, at the time of renewal of the business license, notify the Community Development Department of the name, address and telephone number of the contact person required in subsection 16.52.230.C.6. 7. A written notice shall be conspicuously posted inside each vacation rental unit setting forth the name, address and telephone number of the contact person required in subsection 16.52.230.C.6. The notice shall also set forth the address of the vacation rental, the maximum number of occupants permitted to stay overnight in the unit, the maximum number of vehicles allowed to be parked on-site, and the day(s) established for garbage collection. The notice shall also provide the non-emergency number of the Arroyo Grande Police Department. 8. On-site advertising of the vacation rental is prohibited. 9. The number of overnight occupants shall be limited to two persons per bedroom and two additional persons. A bedroom shall meet the minimum size requirements as defined in the Building Code. 10. All refuse shall be stored in appropriate containers and placed at the curb for collection every week. 11. The operator of the vacation rental shall pay Transient Occupancy Tax as required by Arroyo Grande Municipal Code Section 3.24.030. 12. Establishment of a vacation rental within 300 feet of an existing vacation rental on the same street shall not be permitted. 13. Violations — violation of these requirements shall constitute grounds for revocation of the minor use permit pursuant to Section 16.16.220. SECTION 3: Arroyo Grande Municipal Code Section 16.52.240 is hereby added as follows: SECTION 16.52.240 — HOMESTAYS A. Purpose and intent. The purpose of these regulations is to ensure that homestays located in the city conform to the existing character of the neighborhood in which they are located and do not create an adverse impact on adjacent properties. B. Applicability. Homestays may be permitted only with approval of a minor use permit. Homestays shall comply with the property development standards of the Item 9a - Page 10 ORDINANCE NO. 663 PAGE 4 underlying district and the performance standards and special conditions listed in Section 16.52.240.0. C. Performance standards and conditions for homestays. 1. Operators of homestays are required to obtain a minor use permit-plot plan review (Section 16. 16.080) and a business license. 2. Any proposed homestay shall be compatible with the neighborhood in which it is located in terms of landscaping, scale and architectural character. The use shall be harmonious and compatible with the existing uses with the neighborhood 3. All Building Code and Fire Code requirements far the level of occupancy of the homestay shall be met. 4. All environmental health regulations shall be met. 5. The operator shall reside on the premises. 6. Individual guest stays shall be limited to fourteen (14) days, with a seven- day period between stays. 7. On-site advertising of the homestay is prohibited. 8. A bedroom shall meet the minimum size requirements as defined in the L Building Code. 9. The operator of the homestay shall pay Transient Occupancy Tax as required by Arroyo Grande Municipal Code Section 3.24.030. 10. Establishment of a homestay within 300 feet of an existing homestay on the same street shall not be permitted. 11. Violations — violation of these requirements shall constitute grounds for revocation of the minor use permit pursuant to Section 16.16.220. SECTION 4: The following definitions in Arroyo Grande Municipal Code Subsection 16.04.070.C. are hereby amended or added as follows: 16.04.070.C. Definitions Bed and breakfast inn" means an owner-occupied dwelling unit where three (3) or more short-term lodging rooms and meals are provided for compensation or onsite signage is desired. r Item 9a - Page 11 ORDINANCE NO. 663 PAGE 5 Homestay" means an owner-occupied dwelling unit where a maximum of two (2) short- term lodging rooms are provided for compensation. Vacation rental" means a structure being rented for less than thirty (30) days without concurrently being occupied by the owner/operator where the short-term lodging is provided for compensation. SECTION 5: Arroyo Grande Municipal Code Section 16.16.080 is hereby amended to add Subsection B.10 and Subsection C.6 as follows: 16.16.080.B.10. Establishment of vacation rentals or homestays in applicable zoning districts identified in Table 16.32.040-A and Table 16.36.030(A). 16.16.080.C.6. For plot plan reviews establishing the use of property for vacation rental purposes, the decision of the community development director shall also be mailed to all property owners of parcels within three hundred (300) feet of the property for which the plot plan review has been requested, in addition to the requirements of Section 16.16.080.C.5. The notice shall indicate the appeal provisions of Section 16.12.150. SECTION 6: Arroyo Grande Municipal Code Table 16.32.040-A, entitled "Uses Permitted Within Residential Districts", Section A. Residential Uses is hereby amended to add Subsection A.17. as follows: USE RE RH RR RS SF VR D-2.4 MF MFA MFVH MHP A. Residential Uses 17.Vacation Rentals MUP MUP MUP MUP MUP MUP MUP MUP NP NP and Homestays SECTION 7: Arroyo Grande Municipal Code Table 16.36.030(A), entitled "Uses Permitted Within Mixed Use and Commercial Districts", Section B. Services -General is hereby amended to add the following use: USE VCD VMU HCO D-2.11 OMU1 TMU D- HCO D=Specific IMU D-2.11 2.4 D-2.4 GMU FOMU HMU 2.20 RC2 Use Stds B.Services -General Vacation Rentals and NP MUP MUP MUP MUP MUP MUP MUP NP 16.52.230 Homestays 16.52.240 SECTION 8: If any section, subsection, subdivision, paragraph, sentence, or clause of this Ordinance or any part thereof is for any reason'held to be unlawful, such decision shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, or clause thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, or clause be declared unconstitutional. Item 9a - Page 12 ORDINANCE NO. 663 PAGE 6 SECTION 9: Upon adoption of this Ordinance, the City Clerk shall file a Notice of Exemption pursuant to 14 CCR § 15062. SECTION 10: A summary of this Ordinance shall be published in a newspaper published and circulated in the City of Arroyo Grande at least five (5) days prior to the City Council meeting at which the proposed Ordinance is to be adopted. A certified copy of the full text of the proposed Ordinance shall be posted in the office of the City Clerk. Within fifteen (15) days after adoption of the Ordinance, the summary with the names of those City Council Members voting for and against the Ordinance shall be published again, and the City Clerk shall post a certified copy of the full text of such adopted Ordinance. SECTION 11: This Ordinance shall take effect thirty (30) days from the date of adoption. On motion of Council Member Barneich, seconded by Council Member Brown, and on the following roll call vote to wit: AYES: Council Members Barneich, Brown, Costello, Guthrie, and Mayor Ferrara NOES: None ABSENT: None the foregoing Ordinance was adopted this 10th day of June, 2014. Item 9a - Page 13 ORDINANCE NO. (0493 PAGE 7 TONY F MAYOR ATTEST: Wgkitet'L-- KELLY ET j RE, CITY CLERK APPROVED AS TO CONTENT: S E ADAMS, CITY MANAGER APPROVED AS TO FORM: 7n/V- TIMVIO111Y J. CARME"C, CITY ATTORNEY 1 Item 9a - Page 14 OFFICIAL CERTIFICATION I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San Luis Obispo, State of California, do hereby certify under penalty of perjury, that the attached is a true, full, and correct copy of Ordinance No. 663 which was introduced at a regular meeting of the City Council on May 27, 2014; was passed and adopted at a regular meeting of the City Council on the 10th day of June 2014; and was duly published in accordance with State law (G.C. 40806). WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 12th day of June 2014. i 1 I KELL WE/ ORE, CITY CLERK Item 9a - Page 15 DP04 SELECTED HOUSING CHARACTERISTICS 2013-2017 American Community Survey 5-Year Estimates Supporting documentation on code lists, subject definitions, data accuracy, and statistical testing can be found on the American Community Survey website in the Technical Documentation section. Sample size and data quality measures (including coverage rates, allocation rates, and response rates) can be found on the American Community Survey website in the Methodology section. Although the American Community Survey (ACS) produces population, demographic and housing unit estimates, it is the Census Bureau's Population Estimates Program that produces and disseminates the official estimates of the population for the nation, states, counties, cities, and towns and estimates of housing units for states and counties. A processing error was found in the Year Structure Built estimates since data year 2008. For more information, please see the errata note #110. Subject Arroyo Grande city, California Estimate Margin of Error Percent Percent Margin of Error HOUSING OCCUPANCY Total housing units 7,847 +/-262 7,847 (X) Occupied housing units 7,192 +/-266 91.7%+/-2.6 Vacant housing units 655 +/-215 8.3%+/-2.6 Homeowner vacancy rate 0.5 +/-0.7 (X)(X) Rental vacancy rate 0.0 +/-1.6 (X)(X) UNITS IN STRUCTURE Total housing units 7,847 +/-262 7,847 (X) 1-unit, detached 5,155 +/-298 65.7%+/-3.1 1-unit, attached 750 +/-177 9.6%+/-2.3 2 units 273 +/-122 3.5%+/-1.5 3 or 4 units 206 +/-132 2.6%+/-1.7 5 to 9 units 215 +/-121 2.7%+/-1.5 10 to 19 units 271 +/-154 3.5%+/-2.0 20 or more units 442 +/-128 5.6%+/-1.6 Mobile home 519 +/-147 6.6%+/-1.8 Boat, RV, van, etc.16 +/-25 0.2%+/-0.3 YEAR STRUCTURE BUILT Total housing units 7,847 +/-262 7,847 (X) Built 2014 or later 33 +/-27 0.4%+/-0.3 Built 2010 to 2013 61 +/-40 0.8%+/-0.5 Built 2000 to 2009 1,331 +/-196 17.0%+/-2.5 Built 1990 to 1999 623 +/-159 7.9%+/-1.9 Built 1980 to 1989 1,690 +/-272 21.5%+/-3.3 Built 1970 to 1979 1,607 +/-227 20.5%+/-2.9 Built 1960 to 1969 1,084 +/-214 13.8%+/-2.7 Built 1950 to 1959 781 +/-201 10.0%+/-2.6 Built 1940 to 1949 451 +/-171 5.7%+/-2.1 1 of 5 05/09/2019 ATTACHMENT 2 Item 9a - Page 16 Subject Arroyo Grande city, California Estimate Margin of Error Percent Percent Margin of Error Built 1939 or earlier 186 +/-79 2.4%+/-1.0 ROOMS Total housing units 7,847 +/-262 7,847 (X) 1 room 68 +/-61 0.9%+/-0.8 2 rooms 295 +/-169 3.8%+/-2.1 3 rooms 650 +/-209 8.3%+/-2.7 4 rooms 1,285 +/-282 16.4%+/-3.4 5 rooms 1,850 +/-327 23.6%+/-4.1 6 rooms 1,637 +/-252 20.9%+/-3.1 7 rooms 976 +/-172 12.4%+/-2.3 8 rooms 594 +/-134 7.6%+/-1.7 9 rooms or more 492 +/-131 6.3%+/-1.7 Median rooms 5.4 +/-0.2 (X)(X) BEDROOMS Total housing units 7,847 +/-262 7,847 (X) No bedroom 79 +/-64 1.0%+/-0.8 1 bedroom 998 +/-239 12.7%+/-3.0 2 bedrooms 1,896 +/-269 24.2%+/-3.2 3 bedrooms 3,678 +/-385 46.9%+/-4.5 4 bedrooms 997 +/-196 12.7%+/-2.6 5 or more bedrooms 199 +/-93 2.5%+/-1.2 HOUSING TENURE Occupied housing units 7,192 +/-266 7,192 (X) Owner-occupied 5,023 +/-280 69.8%+/-4.0 Renter-occupied 2,169 +/-323 30.2%+/-4.0 Average household size of owner-occupied unit 2.54 +/-0.13 (X)(X) Average household size of renter-occupied unit 2.29 +/-0.23 (X)(X) YEAR HOUSEHOLDER MOVED INTO UNIT Occupied housing units 7,192 +/-266 7,192 (X) Moved in 2015 or later 767 +/-240 10.7%+/-3.3 Moved in 2010 to 2014 1,986 +/-297 27.6%+/-3.9 Moved in 2000 to 2009 2,142 +/-272 29.8%+/-3.7 Moved in 1990 to 1999 1,264 +/-203 17.6%+/-2.8 Moved in 1980 to 1989 565 +/-175 7.9%+/-2.4 Moved in 1979 and earlier 468 +/-147 6.5%+/-2.0 VEHICLES AVAILABLE Occupied housing units 7,192 +/-266 7,192 (X) No vehicles available 304 +/-114 4.2%+/-1.5 1 vehicle available 2,179 +/-300 30.3%+/-3.6 2 vehicles available 2,912 +/-276 40.5%+/-3.8 3 or more vehicles available 1,797 +/-248 25.0%+/-3.6 HOUSE HEATING FUEL Occupied housing units 7,192 +/-266 7,192 (X) Utility gas 5,594 +/-309 77.8%+/-3.0 Bottled, tank, or LP gas 144 +/-93 2.0%+/-1.3 Electricity 1,286 +/-207 17.9%+/-2.8 Fuel oil, kerosene, etc.0 +/-19 0.0%+/-0.5 Coal or coke 16 +/-27 0.2%+/-0.4 Wood 61 +/-45 0.8%+/-0.6 Solar energy 13 +/-22 0.2%+/-0.3 Other fuel 0 +/-19 0.0%+/-0.5 No fuel used 78 +/-69 1.1%+/-1.0 2 of 5 05/09/2019Item 9a - Page 17 Subject Arroyo Grande city, California Estimate Margin of Error Percent Percent Margin of Error SELECTED CHARACTERISTICS Occupied housing units 7,192 +/-266 7,192 (X) Lacking complete plumbing facilities 12 +/-22 0.2%+/-0.3 Lacking complete kitchen facilities 23 +/-28 0.3%+/-0.4 No telephone service available 105 +/-74 1.5%+/-1.0 OCCUPANTS PER ROOM Occupied housing units 7,192 +/-266 7,192 (X) 1.00 or less 6,972 +/-292 96.9%+/-1.4 1.01 to 1.50 139 +/-100 1.9%+/-1.4 1.51 or more 81 +/-76 1.1%+/-1.1 VALUE Owner-occupied units 5,023 +/-280 5,023 (X) Less than $50,000 210 +/-98 4.2%+/-1.9 $50,000 to $99,999 45 +/-27 0.9%+/-0.5 $100,000 to $149,999 15 +/-17 0.3%+/-0.3 $150,000 to $199,999 40 +/-45 0.8%+/-0.9 $200,000 to $299,999 337 +/-109 6.7%+/-2.1 $300,000 to $499,999 1,790 +/-207 35.6%+/-3.7 $500,000 to $999,999 2,388 +/-272 47.5%+/-4.4 $1,000,000 or more 198 +/-84 3.9%+/-1.7 Median (dollars)510,400 +/-27,106 (X)(X) MORTGAGE STATUS Owner-occupied units 5,023 +/-280 5,023 (X) Housing units with a mortgage 3,414 +/-271 68.0%+/-4.0 Housing units without a mortgage 1,609 +/-226 32.0%+/-4.0 SELECTED MONTHLY OWNER COSTS (SMOC) Housing units with a mortgage 3,414 +/-271 3,414 (X) Less than $500 40 +/-37 1.2%+/-1.1 $500 to $999 212 +/-108 6.2%+/-3.0 $1,000 to $1,499 499 +/-155 14.6%+/-4.4 $1,500 to $1,999 684 +/-164 20.0%+/-4.6 $2,000 to $2,499 924 +/-191 27.1%+/-5.3 $2,500 to $2,999 494 +/-147 14.5%+/-4.1 $3,000 or more 561 +/-148 16.4%+/-4.3 Median (dollars)2,147 +/-97 (X)(X) Housing units without a mortgage 1,609 +/-226 1,609 (X) Less than $250 227 +/-89 14.1%+/-5.4 $250 to $399 368 +/-125 22.9%+/-7.0 $400 to $599 401 +/-112 24.9%+/-6.5 $600 to $799 422 +/-160 26.2%+/-8.4 $800 to $999 61 +/-51 3.8%+/-3.1 $1,000 or more 130 +/-70 8.1%+/-4.2 Median (dollars)505 +/-63 (X)(X) SELECTED MONTHLY OWNER COSTS AS A PERCENTAGE OF HOUSEHOLD INCOME (SMOCAPI) Housing units with a mortgage (excluding units where SMOCAPI cannot be computed) 3,414 +/-271 3,414 (X) Less than 20.0 percent 1,403 +/-218 41.1%+/-5.3 20.0 to 24.9 percent 484 +/-133 14.2%+/-3.8 25.0 to 29.9 percent 401 +/-140 11.7%+/-3.8 30.0 to 34.9 percent 275 +/-114 8.1%+/-3.2 35.0 percent or more 851 +/-191 24.9%+/-5.7 3 of 5 05/09/2019Item 9a - Page 18 Subject Arroyo Grande city, California Estimate Margin of Error Percent Percent Margin of Error Not computed 0 +/-19 (X)(X) Housing unit without a mortgage (excluding units where SMOCAPI cannot be computed) 1,585 +/-221 1,585 (X) Less than 10.0 percent 741 +/-167 46.8%+/-7.4 10.0 to 14.9 percent 207 +/-86 13.1%+/-5.8 15.0 to 19.9 percent 220 +/-116 13.9%+/-6.7 20.0 to 24.9 percent 108 +/-70 6.8%+/-4.1 25.0 to 29.9 percent 89 +/-70 5.6%+/-4.3 30.0 to 34.9 percent 51 +/-45 3.2%+/-2.7 35.0 percent or more 169 +/-75 10.7%+/-4.8 Not computed 24 +/-30 (X)(X) GROSS RENT Occupied units paying rent 2,136 +/-326 2,136 (X) Less than $500 180 +/-79 8.4%+/-3.8 $500 to $999 609 +/-205 28.5%+/-8.3 $1,000 to $1,499 642 +/-207 30.1%+/-8.3 $1,500 to $1,999 437 +/-142 20.5%+/-6.2 $2,000 to $2,499 144 +/-105 6.7%+/-4.6 $2,500 to $2,999 116 +/-69 5.4%+/-3.2 $3,000 or more 8 +/-16 0.4%+/-0.7 Median (dollars)1,169 +/-96 (X)(X) No rent paid 33 +/-32 (X)(X) GROSS RENT AS A PERCENTAGE OF HOUSEHOLD INCOME (GRAPI) Occupied units paying rent (excluding units where GRAPI cannot be computed) 2,136 +/-326 2,136 (X) Less than 15.0 percent 228 +/-112 10.7%+/-5.1 15.0 to 19.9 percent 147 +/-71 6.9%+/-3.5 20.0 to 24.9 percent 236 +/-128 11.0%+/-6.1 25.0 to 29.9 percent 557 +/-186 26.1%+/-7.7 30.0 to 34.9 percent 144 +/-122 6.7%+/-5.5 35.0 percent or more 824 +/-255 38.6%+/-9.3 Not computed 33 +/-32 (X)(X) Data are based on a sample and are subject to sampling variability. The degree of uncertainty for an estimate arising from sampling variability is represented through the use of a margin of error. The value shown here is the 90 percent margin of error. The margin of error can be interpreted roughly as providing a 90 percent probability that the interval defined by the estimate minus the margin of error and the estimate plus the margin of error (the lower and upper confidence bounds) contains the true value. In addition to sampling variability, the ACS estimates are subject to nonsampling error (for a discussion of nonsampling variability, see Accuracy of the Data). The effect of nonsampling error is not represented in these tables. Households not paying cash rent are excluded from the calculation of median gross rent. Telephone service data are not available for certain geographic areas due to problems with data collection of this question that occurred in 2015 and 2016. Both ACS 1-year and ACS 5-year files were affected. It may take several years in the ACS 5-year files until the estimates are available for the geographic areas affected. While the 2013-2017 American Community Survey (ACS) data generally reflect the February 2013 Office of Management and Budget (OMB) definitions of metropolitan and micropolitan statistical areas; in certain instances the names, codes, and boundaries of the principal cities shown in ACS tables may differ from the OMB definitions due to differences in the effective dates of the geographic entities. Estimates of urban and rural populations, housing units, and characteristics reflect boundaries of urban areas defined based on Census 2010 data. As a result, data for urban and rural areas from the ACS do not necessarily reflect the results of ongoing urbanization. 4 of 5 05/09/2019Item 9a - Page 19 Source: U.S. Census Bureau, 2013-2017 American Community Survey 5-Year Estimates Explanation of Symbols: 1. An '**' entry in the margin of error column indicates that either no sample observations or too few sample observations were available to compute a standard error and thus the margin of error. A statistical test is not appropriate. 2. An '-' entry in the estimate column indicates that either no sample observations or too few sample observations were available to compute an estimate, or a ratio of medians cannot be calculated because one or both of the median estimates falls in the lowest interval or upper interval of an open-ended distribution. 3. An '-' following a median estimate means the median falls in the lowest interval of an open-ended distribution. 4. An '+' following a median estimate means the median falls in the upper interval of an open-ended distribution. 5. An '***' entry in the margin of error column indicates that the median falls in the lowest interval or upper interval of an open-ended distribution. A statistical test is not appropriate. 6. An '*****' entry in the margin of error column indicates that the estimate is controlled. A statistical test for sampling variability is not appropriate. 7. An 'N' entry in the estimate and margin of error columns indicates that data for this geographic area cannot be displayed because the number of sample cases is too small. 8. An '(X)' means that the estimate is not applicable or not available. Item 9a - Page 20 ATTACHMENT 3 Item 9a - Page 21