CC 2015-08-25_11b Status Report_Vacation Rentals and HomestaysTO:
FROM:
BY:
MEMORANDUM
CITY COUNCIL
TERESA McCLISH, COMMUNITY DEVELOPMENT DIRECTOR
MATTHEW DOWNING~SOCIATE PLANNER
SUBJECT: CONSIDERATION OF STATUS REPORT REGARDING
DATE:
DEVELOPMENT CODE AMENDMENT 14-002 REGULATING
VACATION RENTALS AND HOMESTAYS
AUGUST 25, 2015
RECOMMENDATION:
It is recommended the City Council receive and file information on the status of
Development Code Amendment 14-002, which implemented regulations for the
establishment and operation of vacation rentals and homestays within the City.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There is no impact on financial and personnel resources to receive and file the
status of Development Code Amendment.
BACKGROUND:
On June 10, 2014, the City Council adopted Ordinance No. 663 (the "Ordinance")
to identify vacation rentals and homestays as permitted uses within residential
and commercial zoning districts of the City and establishing regulations and
permitting requirements to establish the uses (Attachments 1 and 2). The
Ordinance went into effect on July 10, 2014 As part of the approval of the
Development Code Amendment, the Council requested a status report after one
year.
ANALYSIS OF ISSUES:
At the time of Ordinance adoption, six (6) applications for vacation rentals and
homestays were pending. One (1) of those applications was withdrawn following
adoption of the Ordinance. Since the adoption of the Ordinance, staff has
approved a total of ten (10) permits. This includes five (5) vacation rentals and
five (5) homestays (Attachment 3). Staff is currently processing one (1) additional
application for a vacation rental.
Inquiries regarding the establishment of new rentals has subsided since the initial
influx anticipated from adoption of the regulations; however, staff continues to
Item 11.b. - Page 1
CITY COUNCIL
CONSIDERATION OF STATUS REPORT REGARDING DEVELOPMENT
CODE AMENDMENT 14-002 REGULATING VACATION RENTALS AND
HOMESTAYS
AUGUST 25, 2015
PAGE2
receive about two (2) inquiries per month. The inquiries are mostly from
individuals in the very early stages of considering the use of their property as a
vacation rental or homestay. Staff has also received inquiries from other
communities in the state who are determining how to address the uses.
During the Council's review of the Ordinance, concerns were raised regarding
the proliferation of vacation rental and homestay uses and neighborhood impacts
associated with them. According to City records, no complaints have been
received against the permitted operations. Complaints associated with vacation
rentals and homestays have typically focused on individuals operating without
proper permits. Staff from Planning and Neighborhood Services have been
working together to educate operators about permit requirements and take
enforcement action as necessary.
A recent approval of a vacation rental on Old Ranch Road was appealed to the
Planning Commission by the neighboring property owners. The appellants had
concerns about safety, security, noise, traffic, and neighborhood property values.
The Planning Commission considered the appeal on July 7, 2015. At that time,
the Planning Commission adopted a Resolution denying the appeal and
approving the vacation rental, due partly to the Ordinance having been
constructed in such a way as to reduce these impacts on surrounding
neighborhoods.
At the time of Ordinance introduction, the Council added concentration limitations
in the form of a 300 foot linear separation between the same uses on the same
block face. Under these concentration limits, a vacation rental or homestay could
not be established within 300 feet of an established vacation rental or homestay
on the same street. However, the two uses could back up to one another so long
as they were not part of the same block face. The effectiveness of these
limitations has yet to be tested due to the limited number of permits approved for
the uses.
ALTERNATIVES:
No alternatives are provided; the report is informational in nature.
ADVANTAGES:
The status report responds to Council's desire to remain informed on the
implementation of the Ordinance since its adoption.
DISADVANTAGES:
None identified by staff.
Item 11.b. - Page 2
CITY COUNCIL
CONSIDERATION OF STATUS REPORT REGARDING DEVELOPMENT
CODE AMENDMENT 14-002 REGULATING VACATION RENTALS AND
HOMESTAYS
AUGUST 25, 2015
PAGE3
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTICE AND COMMENT:
The agenda was posted at City Hall on Thursday, August 20, 2015 and the
agenda and staff report were posted on the City's website on Friday, August 21,
2015. No public comments were received.
Attachments:
1. Ordinance No. 663
2. Minutes of the May 27, 2014 City Council meeting (introduction of the
Ordinance)
3. Map showing distribution of vacation rentals and homestays
Item 11.b. - Page 3
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ATTACHMENT 1
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 Granqe ("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 regulatio·ns 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 Section~ 15061(b)(3) and
15308 of the California Environmental Quality Act (CEQA) Guidelines.
Item 11.b. - Page 4
ORDINANCE NO. 663
PAGE2
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Arroyo r
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.
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ORDINANCE NO. 663
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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 16.52.23'0.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 her~by 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 11.b. - Page 6
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ORDINANCE NO. 663
PAGE4·
unde~ying district and the performance standards and special_condltions listed in r
Section 16.52.240.C.
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 for 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.
7.
8.
9.
Individual guest stays shall be limited to fourteen (14) days, with a seven-
day period between stays.
On-site advertising of the homestay is prohibited.
A bedroom shall meet the minimum size requirements as defined in the
Building Code. .
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 folfows:
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. ,
Item 11.b. - Page 7
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ORDINANCE NO. ·663
PAGES
"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.1 O and Subsection C.6 as follows:
.
16.16.080.8.10. 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 Sectio!l
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 Homestavs
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 OMU 1
TMU D-HCO o~ 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
Homestavs 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 11.b. - Page 8
ORDINANCE NO. 663
PAGES
SECTION 9: Upon adoption of this Ordinance, the City Clerk shall file a Notice of r
Exemption pursuant to 14 CCR§ 15062. ·
SECTION 1 O: 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. [ __ _
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ORDINANCE NO. (p/p.3
PAGE7
ATTEST:
APPROVED AS TO CONTENT:
APPROVED AS TO FORM:
T1"°1" J. cAitME(, CITY ATTORNEY
Item 11.b. - Page 10
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 oft.he City Council on May 27, 2014; was passed
and adopted at a regular meeting of the City Council on the 1 oth 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.
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Item 11.b. - Page 11
• 0 Minutes: City Council
Tuesday, May 27, 2014
9. PUBLIC HEARINGS
ATTACHMENT 2
9.a. Consideration of Development Code Amendment Case No. 14-002 regarding
Vacation Rentals and Homestays; Location: Citywide; Applicant -City of Arroyo
Grande.
Associate Planner Downing presented the staff report and recommended the Council introduce
an Ordinance amending portions of Title 16 of the Arroyo Grande Municipal Code regulating
vacation rentals and homestays. Staff responded to questions from Council.
Mayor Ferrara opened the public hearing .
. The following members of the public spoke:
.: Jennifer Swift, James Way, in opposition of the proposed ordinance;
-Robin Rinzler, in support of the proposed ordilJa.nce;
-Shirl~y Volpatti, Hillcrest Drive, in support of the proposed ordinance;
-. Diane Puhek, in support of the proposed ordinance;
-: Audrey Howard, Robin Circle, in opposition of the proposed ordinance;
-Peggy Thayer, SLO resident, in support of the proposed ordinance;
-Doug Gaver, Allen Street, in support of the proposed ordinance;
-Aaron Thompson, Crown Hill, in support of the proposed ordinance;
-Jenny Shaheen, Heritage Lane, in opposition of the proposed ordinance;
-Pete Evans, SLO resident, 1n support of the proposed ordinance;
-Kathy Johnson, Robin Circle, in opposition of the proposed ordinance;
-Paul Rinzler, Gaynfair, in support of the proposed ordinance;
-Marian Colver, SLO resident, in support of the proposed ordinance;
-John Diaz, Arroyo Grande, in opposition of the proposed ordinance;
-Claire Volner, Arroyo Grande, in support of the proposed ordinance;
-Joe Klaman, in support of the proposed ordinance;
-Andrew Woodard, in. support of the proposed ordinance;
-Betty De Paul, Robin Circle in opposition of the proposed ordinance;
-Eve Newhouse, SLO resident, in support of the proposed ordinance;
-Michael Howard, Robin Circle, in opposition to homestays;
-Gay Groomes, Arroyo Grande, in support of the proposed ordinance;
-Walt Bethel, Cardinal Court, in support of the proposed ordinance;
-Catherine Doyle, SLO resident, in ~upport of the proposed ordinance.
Upon hearing no further comments, Mayor Ferrara closed the public hearing.
Mayor Ferrara called for a break at 7:55 p.m. The Council reconvened at 8:10 p.m.
Council questions and discussion ensued regarding application fees, concentration limits, traffic,
parking, and whether or not the ordinance should include a look back provision after one year.
Action: Council Member Brown moved to introduce an Ordinance, entitled: 11AN 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"; as modified to include a condition that there would be a 300 linear foot distance
restriction for location of vacation rentals and homestays, and with the provision that there
Item 11.b. - Page 12
Minutes: City Council
Tuesday, May 27, 2014
Page6
would be a minimum of a one year look back unless conditions warrant an earlier review due to
complaints received. Further, to request that educational discussions be provided to vacation
rental and homestay hosts regarding neighborhood sensitivity to parking issues. Council
Member Costello seconded.
Brief discussion ensued clarifying that the 300 linear foot distance restriction is applied in either
direction on the same street; and that staff would provide a monthly report to Council on any
com.plaints/code enforcement action taken with regard to violations of the vacation rental and
homestay ordinance.
In response to Council discussion, City Attorney Carmel clarified the modifications to the
Ordinance and read them for the record, as follows:
Adding Condition No. 12 for vacation rentals to read: "Establishment of ~ Vacation
Rental within 300 feet of an existing Vacation Rental on the same street shall n9t be
permitted:" ·
Changing the existing No. 12 to No. 13.
Adding Condition No. 10 for homestays to read: "Establishment of a Homestay within
300 feet of an existing Homestay on the same street shall not be permitted."
Changing the existing No. 10 to No. 11.
Council Members Brown and Costello confirmed the changes to the ordinance as part of the
motion, and the motion passed on the following roll-call vote:
AYES:
NOES:
ABSENT:
Brown, Costello, Barneich, Guthrie, Ferrara
None
None
Council Member Costello left the meeting at 9:00 p.m.
Consideration of Request from South County Sanitary Service for Integrated Solid
aste Collection Rate Increase.
Rec mended Action: Adopt a Resolution establishing integrated solid waste
collection ice rates.
Administrative Services 01 or Malicoat introduced Bill Statler, who presented the results of
the rate study and recommende olid waste collection rate increase.
Mr. Statler and Tom Martin, represen · Service, responded to
questions from Council. ·
Mayor Ferrara opened the public hearing.
the public hearing.
no comments, Mayor Ferrara clo~ed
Action: Mayor Pro Tern Guthrie moved to approve·~ RESOLUTI F THE CITY COUNCIL
OF THE CITY OF ARROYO GRANDE ESTABLISHING INTEG
COLLECTION SERVICE RA TES". Council Member Barneich seconded,
passed on the following roll-call vote:
SOLID WASTE
d the motion
Item 11.b. - Page 13
Item 11.b. - Page 14