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                               City of Pismo Beach
                City Council/Planning Commission Meeting
                   Tuesday, December 4, 2007 3:00 p.m.
                                  760 Mattie Road
                               Pismo Beach, California

CALL TO ORDER:                    Mayor Reiss


Mayor:                            Reiss
Mayor Pro Tem:                    Higginbotham
Councilmembers:                   Ehring, Rabenaldt, Vardas

Planning Commission:       Chairman:            Sorgenfrei
                           Vice Chair:          Burnes
                           Commissioners:       Anderson, Cox Miranda, Waage


Mayor Reiss to ask for public comments specific to the below listed items.


Item 1.A:    Discussion of Vacation Rental Ordinance. (Bloom)

             Recommendation:            Discussion Only.


Joint City Council/Planning Commission Agenda                                    December 4, 2007

                                      AFFIDAVIT OF POSTING

DATE:      November 28, 2007                                  TIME:        10:30 AM

NAME:                                                         TITLE:       Deputy City Clerk
           Emily Colborn, CMC

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Accept staff presentation, invite public comment and provide staff direction.

On September 11, 2007, the Planning Commission reviewed a variety of Vacation rental
issues stemming from multiple Municipal Code references. After considerable
discussion, the Commission developed a Vacation Rental workshop framework.
Planning Commission recommended discussion points and recommendation are noted
in attachment 1.

Following the public workshop Council should provide direction for a future Vacation
rental ordinance draft. The next step would be a Planning Commission public hearing
on potential code modifications to develop final recommendations regarding Vacation
rentals followed by a Council public hearing for ordinance consideration and adoption.

  1. Discussion points
  2. Template of standard vacation rental unit project conditions of approval.

Prepared by:        Carolyn Johnson, Planning Manager
Meeting Date:       December 4, 2007
Approved by:        Randy Bloom, Community Development Director

City Manager Approval:

                                                                       Agenda Item: 1.A
                                                                                 Page 1
                                                                                                    Attachment 1
                                              Discussion points

1)     Vacation rentals in residential neighborhoods.
Current Council policy is to enforce the City’s vacation rental unit prohibition in
residential zoning districts on a complaint basis.
Commission recommendation: Active enforcement utilizing the new Code
Enforcement Officer reviewing on-line and other advertisement. Limit vacation rentals to
the R-4 (Hotel/Motel), R-R (Resort Commercial) and C-1 (Commercial) zoning districts.

       Staff comment: In preparing information for the Planning Commission’s review
of the vacation rental issue in early September, 270 advertised Pismo Beach vacation
rentals were located. On line at approximately 7-10 sites, about 175 of these were
located in the downtown area where visitor serving transient lodging is permitted, but
about 95 were located in residential areas varying from Shell Beach to Pismo Heights
and the Freeway Foothills near city hall.

2)    Definition of “Vacation rental”
Commission recommendation: “a structure or areas within a structure authorized by
a Conditional Use Permit granted by the Planning Commission for a fee charged and
rented for the purpose of overnight lodging for a period of not less than 1 night and not
more than 30 days other than ongoing month-to-month tenancy granted to the same
renter for the same unit subject to TOT and a business license which may be rented
short term for transient occupancy, ”

       Staff comment: Consider the City Attorney recommended definition that
couples two sections of the City’s TOT regulations (see footnote below) and provides
internal consistency between the definition and other definitions in the Municipal Code.
This recommendation was provided after review of the Planning Commission’s
recommended definition, and accommodates the Commission’s verbiage, simply in
different format that fits well into the existing regulations.
       "Any structure, as defined in the building code, which exists, or which is
maintained or used upon any premises for the purpose of transient lodging, in the
absence of a permit authorizing such use. As used herein, "transient" shall have the
same meaning as set forth in Section 3.20.020 of this Code." 1
  "Transient" means any person who exercises occupancy or is entitled to occupancy by reason of concession,
permit, right of access, license or agreement for a period of thirty consecutive calendar days or less, counting
portions of calendar days as full days. Any such person so occupying space in a hotel shall be deemed to be a
transient until the period of thirty days has expired unless there is an agreement in writing between the operator and
the occupant providing for a longer period of occupancy. In determining whether a person is a transient,
uninterrupted periods of time extending both prior and subsequent to April 1, 1965, may be considered. (Ord. 89-17
§ 1, 1989; prior code § 3.28.020) "Hotel" means any structure, or any portion of any structure, which is occupied
or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any
hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment
house, dormitory, public or private club, mobilehome or house trailer at a fixed location, or other similar structure or
portion thereof; and shall further include any space, lot, area, or site in any trailer court, camp, park or lot where a
trailer, recreational vehicle, mobilehome, motorhome, or other similar conveyance, is occupied or intended or
designed for occupancy by transients for dwelling, lodging or sleeping purposes.

                                                                                               Agenda Item: 1.A
                                                                                                         Page 2
3)      Permitting process for Vacation rentals: Currently a Conditional Use Permit
is required as vacation rentals are not listed in the permitted or conditionally permitted
uses outlined in the C-1 or R-R zoning districts. However, the Zoning code does
conditionally permit “other uses deemed to be compatible”. Since hotels and motels are
permitted in these districts with a CUP, and vacation rentals are similar to a hotel as a
visitor serving use, the City has been using this “other uses” provision for some time.
Commission recommendation: Continue the current Conditional Use Permit (CUP)
requirement for proposed vacation rental uses; specifically,

-For newly constructed vacation rentals, the CUP permit process would be fairly
straightforward, an applicant would simply apply for the CUP with the other required
discretionary permits (such as a Coastal Development Permit). Given the varied types
of projects that may be presented containing vacation rentals, the CUP process will
benefit the City since conditions can be tailored to each project.

-For long term existing residential buildings that convert to vacation rentals,
(condominiums, apartments, single family homes); an internal communication system
can be established between the Finance and Planning staff to assure that an individual
registering to pay bed tax and secure a business license would also apply for a
Conditional Use Permit.

In either case, the Council could consider a deed restriction requirement that would
memorialize the requirement for vacation rental uses for future property buyers.

        Staff comment: This existing permit process works well and is within the
context of the City’s Zoning Code permitting requirements. Public notification and a
public hearing would be required. A determination to use deed restrictions is a policy
matter for Council determination. If the Council wants vacation rentals to be in the “TOT
pool” of taxable units in perpetuity, the deed restriction requirement is valuable. If the
Council is flexible in allowing the market to dictate when vacation rentals would be
utilized, a deed restriction would not be a good option. If the vacation rental market
should soften and a deed restriction was in place, the owner could have a difficult time
marketing the property.

4)    Standards for vacation rental construction
Commission recommendation: Vacation rentals shall be built to hotel/commercial

        Staff comment: Through the Conditional Use Permit process noted above,
vacation rental projects would be conditioned to comply with all City Codes and
requirements, including, but not limited to the California Building Code (referenced in
PBMC title 15) and the PBMC title 2 requirement of a business license to operate a
vacation rental. The California Building Code requirements for residential occupancies
for transient uses vary by the number and type of unit constructed. Therefore the

                                                                       Agenda Item: 1.A
                                                                                 Page 3
building standards for different types of transient units may vary, but still be required to
comply with the California Building Code.

5)  The mix between retail commercial and vacation rentals
Commission recommendation: Determine on a case-by-case basis during Planning
Commission public hearing review of Conditional Use permit applications.

      Staff comment: As noted above, this Conditional Use permit process is in place.
The case-by-case basis review is a worthy alternative.

6)     Number and occupancy of vacation rentals
Commission recommendation: No more than 2 vacation rentals permitted per project
in mixed-use projects with a maximum occupancy of 2 bedrooms per rental and
occupancy of no more than 2 adults (12 and over) per unit.

         Staff comment: This recommended criteria could be problematic. No two
projects and locations are exactly alike; and some projects may well support more than
two vacation rental units. Additionally, the occupancy restrictions noted above would be
difficult to enforce. A “one size fits all” regulation may limit opportunities for some
projects and for others, create unneeded constraints.

7)     Length of stay and site posting
Commission recommendation: A minimum 180 days a year for vacation rental use
and a requirement that vacation rentals shall be posted with a 24-hour contact

       Staff comment: These requirements can be imposed as project conditions
through the Conditional Use Permit process. A template of standard conditions is
attached at exhibit 2. The Commission would not be precluded to providing additional
conditions. The Commission could adopt this template by resolution and it could be
provided to individuals seeking information on developing vacation rental units.

                                                                          Agenda Item: 1.A
                                                                                    Page 4
                                                                              Attachment 2
                     Vacation rental standard conditions template

1)     For existing development converting to a vacation rental: Prior to issuance
of a business license, the property will be inspected by the City for health and safety
code compliance.

2)    For new and converted vacation rental units, the following would be
included in the project’s conditions of approval:
   a. name of managing agency, agent, property manager, local contact or owner of
      the unit, and 24-hour contact number
   b. the max. number of occupants permitted to stay in the unit;
   c. the max. number of vehicles allowed to be parked on the property;
   d. the number and location of on-site parking spaces
   e. the trash pick-up day and notification that trash and refuse shall not be left or
      stored on the exterior of the property except from 6pm of the day prior to trash
      pickup to 6pm on the day designated for trash pickup;
   f. notification that an occupant may be cited and fined for creating a disturbance or
      for violating other provisions of any city code, including the parking and
      occupancy requirements of the unit.
   g. Use of unenclosed decks and patios between 10:00 p.m. and 8:00 a.m. is
      prohibited where such use generates noise which would disturb or annoy a
      reasonable person occupying the adjacent properties.
   h. TOT Tax forms sent to the city every month, regardless of rentals that month,
      identifying each and every vacation rental in the project by address, number of
      days occupied and specific amount of TOT for each individual unit.

3)     Interior Display of Information. A legible notice must be posted within the unit
or adjacent to the front door containing all of the above information in condition #2.
Applicants shall affix the Business license on the inside of the main entry door of each
vacation rental unit to which it applies. The interior display will also contain a 24-hour 7-
day phone number of the private party responsible for the facility. A statement will also
be included that the City of Pismo Beach has a "zero tolerance" policy towards
nuisances, rowdy and disruptive behavior and advising that the occupancy will be
immediately terminated for violations of this policy. If the City enacts water conservancy
measures, notice of these measures and a request that occupants conserve water as
much as possible in the use of showers, baths, faucets and laundry shall be displayed.

4)     Exterior Display of Information. Applicants shall display on the
exterior of a Short-Term Rental unit, a notice provided by the City containing a 24-
hour 7-day phone number for a private party responsible for the facility to take
complaints regarding its operation. The exterior display will also contain the number
of bedrooms, maximum number of overnight occupants permitted to stay in the unit,
and the maximum number of vehicles for overnight occupants. The notice shall be in
plain view of the general public and/or common areas and shall be maintained in good
condition at all times. Where the sign is prohibited by the conditions, covenants and

                                                                          Agenda Item: 1.A
                                                                                    Page 5
restrictions adopted by a congregate housing project, the Homeowner's Association or
similar body shall prepare and distribute by mail to all owners and year-round renters a
listing of all vacation rentals in the complex by unit number or other identification of the
unit location, the name of the managing agency, agent, property manager, or owner of
the unit, and a local telephone number at which that party or his agent may be reached
on a 24-hour basis.

5)    Adjacent Property Owners Notified. Applicants are also required to provide
adjacent property owners with the 24-hour 7-day phone number for a private party
responsible for the facility.

6)    Ensure noise standards, garbage standards met. Applicant must respond to
complaints within 4 hours. Failure to respond to 2 complaints will cause City to revoke
the Conditional Use permit.

                                                                         Agenda Item: 1.A
                                                                                   Page 6

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