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HomeMy WebLinkAbout01-20-2015 C8 Homestay Ordinance Adoption Jan. 20, 2015 C8 FROM: Derek Johnson, Community Development Director Prepared By: Greg Hermann, Special Projects Manager SUBJECT: ADOPTION OF AN ORDINANCE ALLOWING OWNER-OCCUPIED HOMESTAY RENTALS RECOMMENDATION Adopt Ordinance No. 1611 (2015 Series) enacting Municipal Code amendments associated with allowing owner-occupied homestay rentals (Attachment 1). DISCUSSION On January 6, 2015, the Council voted 4:1 to introduce Ordinance No. 1611 amending Title 17 (Zoning Regulations) of the Municipal Code regarding homestay rentals and approving the Negative Declaration of Environmental Impact. The ordinance is now ready for adoption. The amendment will become effective 30 days after final passage of the Ordinance. ALTERNATIVES 1. The Council could reject adoption of the Municipal Code amendments. This is not recommended because the Council previously took action to approve policy language for homestay rentals, and previously voted to introduce the Ordinance. 2. The Council could continue final adoption of the proposed amendments and provide direction to staff for research and revisions, which would require re-introduction of the ordinance. ATTACHMENTS 1. Ordinance No. 1611 (2015 Series) T:\Council Agenda Reports\2015\2015-01-20\Second Reading, Homestay Ordinance (Johnson)\ECAR- Second Reading, Homestay Ordinance.docx C8-1 Attachment 1 ORDINANCE NO. 1611 (2015 Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO AMENDING TITLE 17 (ZONING REGULATIONS) OF THE MUNICIPAL CODE REGARDING HOMESTAY RENTALS AND APPROVING THE NEGATIVE DECLARATION OF ENVIRONMENTAL IMPACT (CODE 0058-2014) WHEREAS, the City Council of the City of San Luis Obispo conducted a study session in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on November 12, 2013, and directed staff to temporarily suspend enforcement of Municipal Code §17.22.010(G) related to the prohibition of vacation rentals, pending adoption of an ordinance which provides for homestay rentals; and WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on October 8, 2014, for the purpose of considering the Negative Declaration of environmental impact and amendments to Title 17 (Zoning Regulations) of the Municipal Code to add provisions to allow homestay rentals; and WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on January 6, 2015, for the purpose of considering the Negative Declaration of environmental impact and amendments to Title 17 (Zoning Regulations) of the Municipal Code to add provisions to allow homestay rentals; and WHEREAS, the City does regulate similar transient uses with similar impacts such as bed and breakfast establishments; and WHEREAS, the City finds that, unless properly regulated, homestays could result in impacts to adjacent properties; and WHEREAS, the purpose of these regulations is to ensure that homestays conform to the existing character of the neighborhood in which they are located and do not create impacts to adjacent properties; and WHEREAS, staff facilitated meetings with the public and community organizations to gather community input on how homestay rentals should be operated, located and managed; 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 homestay rental; and WHEREAS, notices of said public hearings were made at the time and in the manner required by law; and C8-2 Ordinance No. 1611 (2015 Series) Attachment 1 CODE 0058-2014 Page 2 BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Recitals. The above recitals are true and correct and incorporated herein by this reference. SECTION 2. Environmental Determination. The project has been found to have a negative declaration of environmental impact through the completion of an initial study environmental review per CEQA Guidelines. Municipal Code amendments included in Section 17.08.140 of this ordinance are summarized below which conclude that it can be seen with certainty that proposed amendments to the Municipal Code could not have a significant effect on the environment. SECTION 3. Findings. Based upon all the evidence, the Council makes the following findings: 1. The increasing popularity of homestay rentals in the City require the implementation of appropriate regulations to the character of existing neighborhoods is maintained, while providing an expanded type of lodging facility available within the City. 2. The Homestay Ordinance is consistent with General Plan policies, which directs the City to provide for visitor uses and protect neighborhoods through the establishment of requirements and standards for operation and management of homestay rentals. 3. The project has been found to have a negative declaration of environmental impact through the completion of an initial study environmental review per CEQA Guidelines as detailed in Section 2 above. SECTION 4. Chapter 17.08.140 “Homestay Rentals” of the City of San Luis Obispo’s Municipal Code is added to read as follows: SECTION 17.08.140 – HOMESTAY RENTALS A. Purpose and Intent. The purpose of these regulations is to allow owner occupied homestay rentals in the City with reasonable standards to preserve neighborhood character and quality of life. B. Definitions. 1. Bed and Breakfast Inn. A building or group of buildings providing less than 15 bedrooms or suites that are rented for overnight lodging, with a common eating area for guests. 2. Homestay. An owner-occupied dwelling unit where bedrooms are provided for compensation for fewer than thirty consecutive days with a C8-3 Ordinance No. 1611 (2015 Series) Attachment 1 CODE 0058-2014 Page 3 maximum of four adult overnight guests. 3. Owner Occupancy. A lawfully permitted dwelling that is occupied by the owner(s) named on the property deed as their primary residence and is occupied by them for the major portion of the year. 4. Responsible party. A person over the age of 18 who is designated by the owner of the property as a point of contact for the homestay rental in the event the owner occupier is not on the property at all time during the rental to answer for the maintenance of the property and conduct and acts of homestay guests. The responsible party’s contact information must be provided to homestay guests, adjacent neighbors and stated on the application. 5. Vacation Rental. A dwelling or part of a dwelling where lodging is furnished for compensation for fewer than thirty consecutive days without concurrently being occupied by the property owner. Vacation rentals are not allowed in the City of San Luis Obispo. C. Permit Required. The operation of a homestay requires a homestay permit through an administrative approval by the Community Development Director, who may add, delete, or modify conditions to further the intent of the ordinance. Any request to waive or modify 17.08.140 D. 4. shall require an administrative use permit. D. Application Requirements. 1. Operators of homestays in all zones are required to obtain a homestay permit and a business license. 2. The operator of the homestay shall pay Transient Occupancy Tax and Tourism Business Improvement District tax as required by San Luis Obispo Municipal Code. 3. The operator of the homestay must annually provide verification of primary residence through the Homeowner’s Property Tax Exemption or other appropriate documentation. 4. The operator of the homestay must provide a site plan with at least one (1) on-site parking space in addition to their required residential parking. Parking in a driveway that has a minimum depth of 20 feet from the back of sidewalk and is made available during rentals shall meet the definition of a parking space. 5. The operator of the homestay must provide the name and contact information of a responsible party in the application, if the owner C8-4 Ordinance No. 1611 (2015 Series) Attachment 1 CODE 0058-2014 Page 4 occupier anticipates he or she may not be on the premises at all times during the homestay rental. E. Performance Standards. 1. Homestays shall comply with the property development and performance standards listed in Section 17.18 and 17.19. 2. All Building and Fire Code and regulations shall be met. 3. The number of overnight guests shall be limited to four adults. Bedrooms shall meet the minimum size requirements as defined in the Building Code. 4. At all times when a homestay rental is occurring, the owner or responsible party must be within a fifteen (15) minute drive of the property. The owner or responsible party must be available via telephone twenty-four (24) hours a day, seven (7) days a week, to respond to complaints regarding the homestay. Contact information for the owner and responsible party must be provided to homestay guests, adjacent neighbors and stated on the application. 5. Upon sale or transfer of the home for which a homestay permit has been granted, a new homestay application shall be required within 60 days of the transfer. Failure to submit a new application as required within 60 days shall result in the termination of the existing permitted use. 6. The homestay shall be limited to only the owner occupied dwelling unit on the property. 7. Homestays are not permitted in guest houses or guest quarters. 8. Any advertisements for the homestay shall include the Business License number. On-site advertising of the homestay is prohibited. F. Revocation of a Permit. 1. Violation of these requirements and standards shall constitute grounds for revocation of the Homestay Permit. 2. At any time, the permit can be referred to an Administrative Review Hearing if determined by the Community Development Director upon receipt of substantiated written complaints from any citizen, Code Enforcement Officer, or Police Department Officer, which includes information and/or evidence supporting a conclusion that a violation of the permit, or of City ordinances or regulations C8-5 Ordinance No. 1611 (2015 Series) Attachment 1 CODE 0058-2014 Page 5 applicable to the property or operation of the homestay, has occurred. At the time of the Permit review, to ensure compliance with applicable laws and conditions of permit, conditions of approval may be added, deleted, modified, or the permit may be revoked. G. Appeal. Appeal procedures for this section shall be as provided by Chapter 17.66 (Appeals). SECTION 5. The definition of “Vacation rental” as set forth in Chapter 17.100.220 is hereby amended as follows: “Vacation rental” means a dwelling or part of a dwelling where lodging is furnished for compensation for fewer than thirty consecutive days. Does not include fraternities, sororities, convents, monasteries, hostels, bed and breakfast inns, homestays, hotels, motels, or boarding/rooming houses, which are separately defined. SECTION 6. Severability. If any subdivision, paragraph, sentence, clause, or phrase of this ordinance is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the remaining portions of this ordinance, or any other provisions of the City’s rules and regulations. It is the City’s express intent that each remaining portion would have been adopted irrespective of the fact that any one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable. SECTION 7. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The Tribune, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage. INTRODUCED on the_______ day of _____, 2015, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the______ day of______, 2015, on the following vote: AYES: NOES: ABSENT: Mayor Jan Marx ATTEST: C8-6 Ordinance No. 1611 (2015 Series) Attachment 1 CODE 0058-2014 Page 6 Anthony J. Mejia, City Clerk APPROVED AS TO FORM: J. Christine Dietrick, City Attorney C8-7 This page is intentionally blank. C8-8