TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Marisa Lundstedt, Community Development Director
Laurie B. Jester, Planning Manager
Jason Masters, Assistant Planner
SUBJECT:Title
Second Reading and Adoption of Ordinance No. 15-0010 Approving Amendments to the Local Coastal Program for Chapter A.12 (Residential Districts) and Related Code Sections prohibiting Commercial and Transient Uses in Residential Zones (Community Development Director Lundstedt).
ADOPT ORDINANCE NO.15-0010
Line
_________________________________________________________
Recommended Action
RECOMMENDATION:
Staff recommends that the City Council waive further reading and adopt Ordinance No. 15-0010 (Attachment 1) approving the Local Coastal Program (LCP) Amendments. Similar Municipal Code Amendments are provided in Ordinance No. 15-0009, as a separate item on this agenda.
Body
FISCAL IMPLICATIONS:
A revenue reduction of $70,000 in Transient Occupancy Tax (TOT) in fiscal year 2015-2016 is anticipated, and an annual reduction of $120,000 is anticipated thereafter.
BACKGROUND:
The City Council, at its regular meeting of June 2, 2015 conducted a noticed public hearing for proposed amendments to the LCP to amend Chapter 10.12 (Residential Districts) and related Code Sections to regulate commercial and transient uses in residential zones, clarifying that these uses are prohibited in residential zones. At that meeting, the Councilmembers heard input from residents concerned with legalizing short-term rentals of residential properties. Residents mentioned concerns such as loss of neighborhood character, potential difficulty with enforcement, and the adverse impacts including noise, crime, traffic and parking resulting from commercial and transient uses in residential zones. Operators of short term rentals also provided public input, stating that they had strict background checks, and contracts that they felt had successfully controlled any adverse impacts.
After the public hearing, the City Council discussed potential quality of life and health and safety issues resulting from short-term rentals and the importance of protecting the character of the City's residential neighborhoods as stated in the goals and policies of the City's LCP, as well as the purpose sections of the LCP's Zoning Code. They also expressed concerns regarding enforcement of commercial and transient uses in residential zones. Lastly, Councilmembers raised questions on how to address registered operators of short term rentals who have existing contracts.
After discussion, Mayor Pro Tem Burton introduced a motion to adopt an Ordinance prohibiting commercial and transient uses in Residential Zones. 58 licensed operators of short-term rentals that obtained business licenses prior to April 30, 2015 may continue to operate for the remainder of 2015. The City Council approved (5-0) the proposed amendments to the Municipal Code prohibiting commercial and transient uses in Residential Zones. The proposed amendments will not affect Commercial Zones or residential rentals to single housekeeping units of 30 days or more in residential zones.
Short-term vacation rentals are currently regulated under Business Licenses in Chapter 6.24 of the MBMC specifically related to the Charlie Saikley 6-Man Beach Volleyball Tournament. This proposed Ordinance will also prohibit these short-term rentals and Chapter 6.24 will be rescinded in its entirety. (Attachment 2)
PUBLIC INPUT
Consistent with the City Council direction, staff provided a courtesy notice of tonight's meeting to the 58 short-term rental business operators that have business licenses as of April 30, 2015, as well as the three operators that obtained business licenses after April 30, 2015. Notice was also provided to all properties within a100 foot radius of the 61 total short-term rental properties. (Attachments 4-5) Over 1,800 notices were mailed on Friday June 5th and Monday June 8th. Staff has received a number of emails, phone calls and inquires at the public counter and all of the written correspondence is attach to this report as Attachment 6.
CONCLUSION:
Staff recommends that the City Council waive further reading and adopt Ordinance No. 15-0010 (Attachment 1) approving the LCP Amendments.
Attachments:
1. Ordinance No. 15-0010
2. MBMC Chapter 6.24- Short-term Vacation Rentals (6-Man Volleyball Tournament)
3. Map of short-term vacation rental locations
4. Courtesy notice to 58 short-term vacation rental business operators registered as of April 30, 2015, and all properties within 100 feet of the rentals
5. Courtesy notice to 3 short-term vacation rental business operators registered after April 30, 2015, and all properties within 100 feet of the rentals
6. Written Correspondence
cc. Interested parties