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' city of san Luis osispo
SPECIAL MEETING OF THE CITY COUNCIL
Tuesday, November 12, 2013
Special Meeting — 6:30 P.M.
Council Chamber, 990 Palm Street
San Luis Obispo, California
CALL TO ORDER
A Special Meeting of the San Luis Obispo City Council was called to order on Tuesday,
November 12, 2013 at 6:00 p.m. in the City Council Conference Room, located at 990
Palm Street, San Luis Obispo, California, by Vice Mayor Smith.
ROLL CALL
Council Members
Present: Council Members John Ashbaugh, Dan Carpenter, Carlyn Christianson,
Vice Mayor Kathy Smith
' Council Member
Absent: Mayor Jan Marx
City Staff
Present: Michael Codron, Acting City Manager, Christine Dietrick, City Attorney,
and Anthony Mejia, City Clerk were present at Roll Call. Other staff
members presented reports or responded to questions as indicated in the
minutes.
PLEDGE OF ALLEGIANCE
Council Member Carpenter led the Pledge of Allegiance.
MOMENT OF SILENCE
Vice Mayor Smith called for a moment of silence for those impacted by the tragedies in
the Philippines.
City Council Meeting Minutes — November 12, 2013
Page 2
PUBLIC COMMENT
Rebecca Keisler, San Luis Obispo, requested that Council agendize the Cal Poly student
housing project; voiced objection to the proposed student housing project, citing impacts
to parking, fire and police protection, noise, view shed, and proximity to neighborhoods.
Community Development Director Johnson advised that Cal Poly has issued a notice of
preparation for a student housing project; noted that the City submitted comprehensive
comments on issues to be analyzed in the Environmental Impact Report (EIR); stated
that upon release of the draft EIR or subsequent phases of the project, it would be
appropriate for the University to make a presentation to the Council.
Karen Hale, San Luis Obispo, voiced concern that the City released a report of alleged
rental violations against her; stated that the complainant was false and defamatory;
asserted that the City has an obligation to ensure that such claims are substantiated
prior to releasing said information.
City Attorney Dietrick advised that the Public Records Act requires that the City release
such information when requested; noting that the City has an obligation to redact
complainant information.
Justin Wellner, representing Cal Poly, advised that Cal Poly will be hosting a community
forum on the proposed student housing project on December 2, 2013 at 6:00 p.m. in the ,
University Union; noted that the draft EIR is expected to be released in mid - November;
encouraged Council and the community to provide input of the proposed project.
Steve Barasch, San Luis Obispo, voiced concern relative to the maintenance of creeks
and open space areas, urging that the City take appropriate actions to prevent flooding.
--end of public comments—
STUDY SESSION ITEMS
SS1. REVIEW EXISTING REGULATIONS PROHIBITING VACATION RENTALS IN
THE CITY
Vice Mayor Smith read an email from the Mayor Marx requesting that Council
receive testimony from the public, but continue Council deliberations on the
matter to a future date, due to her recovering from surgery.
Council agreed that it would be appropriate to receive public testimony and to
deliberate the matter, understanding that if they become deadlocked it would be
necessary to continue the matter to a future meeting.
City Council Meeting Minutes — November 12, 2013
Page 3
Community Development Director Johnson, Community Development Deputy
' Director Davidson, and Chief Building Official Lease presented a PowerPoint
presentation entitled "Vacation Rentals — Council Study Session" and responded
to Council inquiries.
John Seman, representing SLO Hosts, suggested that the concepts of
homestays and vacation rentals be segregated; urged Council to amend the
code to allow homestay operations; stated that homestay hosts are willing to
obtain business licenses and pay taxes; expressed support for suspending
enforcement of the existing code and granting amnesty for unpaid taxes.
Jeff Eidelman, San Luis Obispo, voiced support for amending the code to allow
homestays, pointing out that he has operated a homestay for over 30 years.
Michael Sheffer, San Luis Obispo, opined that homestays have minimal impacts
on long term rental inventory; urged Council approval of allowing homestays.
Chris Knauer, San Luis Obispo, spoke on his experiences as a guest of
homestays and encouraged Council approval of allowing homestays.
Allan Cooper, San Luis Obispo, stated that his neighbor has a homestay which
has not impacted his neighborhood; suggested that new tax revenues be
designated for additional police services in the city's core area; conveyed support
' for eliminating the ban on short term rentals, citing that it provides supplemental
income to retirees.
Scott Potter, San Luis Obispo, voiced support of allowing homestays, citing his
past experiences as a guest in homestays.
David Mena, San Luis Obispo, expressed support for allowing homestays and
suspending enforcement of the prohibition; related his experiences as a
homestay guest while traveling for work.
Peggy Thaver, San Luis Obispo, spoke on the potential tax revenues generated
by short term rentals.
Catherine Doyle, San Luis Obispo, questioned the rationale that SLO Host
should pay the fees associated with text amendments to the Zoning Code.
Pat Harris, San Luis Obispo, voiced support for allowing homestays and urged
Council to suspend enforcement of the existing Code.
Anne Cruikshanks, San Luis Obispo, spoke on the importance of allowing
retirees to generate supplemental income through homestays.
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City Council Meeting Minutes — November 12, 2013
Page 4
Jaime Walker, San Luis Obispo, urged Council to pass reasonable regulations to
allow short term rentals and submitted a petition entitled SLO Hosts Welcome. A 1
hard copy of the petition is on file with the City Clerk.
Barbara Radovich, San Luis Obispo, voiced support of allowing homestays;
spoke on the shortage of long term rentals, opining that short term rentals will
have minimal impacts.
Rosh Wright, San Luis Obispo, opined that the majority of residents support short
term rentals and urged Council approval.
Odile Avral, representing Residents for Quality Neighborhoods (RQN), voiced
concern that regulations for short term rentals would be unenforceable; opined
that commercial enterprises are not appropriate for residential neighborhoods;
urged Council to retain the prohibition on vacation rentals.
Pete Evans, San Luis Obispo, voiced objection to the existing ban on vacation
rentals; asserted that recent complains on homestays are unfounded.
Jim Culver, San Luis Obispo, opined that homestays do not impact public safety.
Steve Barasch, San Luis Obispo, spoke on the difficulty of enforcing regulations
on short term rentals; suggested the implementation of a limit use permit
program.
Bart Todham, San Luis Obispo, voiced support for allowing homestays, while
maintaining a prohibition on vacation rentals.
Charlene Rosales, representing the Chamber of Commerce, spoke on the
importance of balancing the economic value of homestays and the concerns of
residents; noted that the Chamber frequently receives inquiries related to
homestays.
Carolyn Smith, San Luis Obispo, stated that residents do not expect hotel -like
businesses to be located in residential neighborhoods; opined that such activities
disturb the quiet enjoyment of private residences; cautioned Council on removing
bans on short term rentals.
Bob Shanbrom, San Luis Obispo, asserted that allowing short term rentals in
residential neighborhoods equates to a taking of property interests; opined that
allowing short term rentals would negatively impact neighborhood security and
workforce housing.
Gordon Mullin, San Luis Obispo, noted that owners and guests of homestays are
rated and such information is shared online; pointed out that current regulations I
allow property owners to rent to up to four university students.
City Council Meeting Minutes — November 12, 2013
Page 5
John Aspinall, Costa Rica, urged Council to allow vacation rentals; noted that he
resides in Costa Rica and owns a home in San Luis Obispo, which he would like
to use as a vacation rental.
Gordon Edmonds, San Luis Obispo, conveyed support for allowing homestays;
opined that bed and breakfasts are overly regulated and encouraged Council to
re- examine all types of rentals.
Sandra Rowley, representing RQN, opined that homestay guests negatively
impact the quality of neighborhoods; asserted that economic benefits to property
owners and the City are at the expense of residents; requested that Council
continue the matter to allow RQN to further evaluate the matter.
MEETING RECESSED AND RECONVENED
Council recessed at 8:07 p.m. and reconvened at 8:22 p.m. with all members present,
with the exception of Mayor Marx..
Following discussion, Council provided direction to staff to temporarily suspend
enforcement of the vacation rental prohibition, process the text amendment in a
streamlined process, explore options related to implementing a permit process
for homestays in the R1 Zone, implement methods of collecting Transient
Occupancy Tax (TOT), provide amnesty for unpaid TOT, and evaluate secondary
' dwelling units in relation to the proposed ordinance.
Motion by Council Member Ashbaugh, Second by Council Member
Carpenter, Carried 4 -0, to temporarily suspend enforcement of the entire
vacation rental prohibition, pending addition of an ordinance for homestays.
Motion by Council Member Ashbaugh, Second by Council Member
Christianson, Carried 3 -1 (Council Member Carpenter Voting No), to direct
staff to return with a draft ordinance to allow owner occupied homestays at the
earliest possible time and to address funding for the text amendment at the mid -
year budget review.
Council Member Carpenter noted for the record that he voted no because the
motion does not address allowing non -owner occupied (vacation rentals).
City Attorney Dietrick advised that staff may return to Council to address the
matter of issuing business licenses and collecting TOT prospectively.
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City Council Meeting Minutes — November 12, 2013
Page 6
1131. CITYWIDE HISTORIC CONTEXT STATEMENT - RESOLUTION
Community Development Director Johnson, Senior Planner Dunsmore, Christine 1
Lazzaretto, of Historic Design Group, narrated a PowerPoint presentation entitled
"Citywide Historic Context Statement" and responded to Council inquiries.
Following discussion, Motion by Council Member Carpenter, Second by
Council Member Christianson, Carried 4-0, to: 1) adopt Resolution No. 10474
(2013 Series) entitled "A Resolution of the City Council of the City of San Luis
Obispo, California, approving the citywide Historic Context Statement'; and 2)
find that the project is exempt from California Environmental Quality Act (CEQA)
in accordance with Public Resources Code 15306.
COUNCIL LIAISON REPORTS AND COMMUNICATIONS
Liaison Reports:
None.
Communications:
None.
There being no further business to come before the City Council,
adjourned the meeting at 9:40 p.m. /%
#,ntfiony r Mejia, MC
City Cler
APPROVED BY COUNCIL: 12/3/13
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