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HomeMy WebLinkAboutStaff Report 5.A 06/01/2015Agenda Item #5.A zss$ DATE: June 1, 2015 TO: Honorable Mayor and Members of the City Council through City Manager FROM: Ingrid Alverde, Redevelopment / Economic Development Manager: __-)/1 SUBJECT: Introduction of an Ordinance Amending the Text of the Implementing Zoning Ordinance Sections 4.030, 7.110, and 27.020, Ordinance No. 2300 N.C.S., and the Smartcode, Ordinance No. 2470 N.C.S, Sections 3.1 and 9.10.010 to Allow Short- Term Vacation Rentals in Residential and Mixed Use Zones and Consideration of a Resolution to Update the Schedule of Penalties for Municipal Code Violations. RECOMMENDATION It is recommended that the City Council: Conduct a Public Hearing to accept comments, and introduce an Ordinance Amending the Text of the Implementing Zoning Ordinance Sections 4.030, 7.110, and 27.020, Ordinance No. 2300 N.C.S., and the Smartcode, Ordinance No. 2470 N.C.S, Sections 3.1 and 9.10.010 to Allow Short-Term Vacation Rentals in Residential and Mixed Use Zones. 2. Adopt the Resolution Updating the Schedule of Penalties for Administrative Citations for Violations of the Petaluma Municipal Code. BACKGROUND On February 23, 2015, the City Council reviewed a proposal to allow vacation rentals in residential zones. The City Council requested additional research and revisions to address the following items: • Review the number of days per year non - hosted units can be rented • Examine how other cities limit the concentration of vacation rental permits • Revisit and clarify the parking section of the proposed code • Provide a sunset clause • Review the code enforcement process to determine if additional measures are necessary to enforce the program DISCUSSION A modified Ordinance which addresses these concerns has been developed and is discussed below: Non - hosted rental limits The draft ordinance recommended limiting to 90 the number of days that a non - hosted vacation rental could be rented in any calendar year. Some members of the public mentioned this would hinder their ability to pay off mortgages and keep their homes. Others raised the opposite concern that if non - hosted rentals were not limited, there would be a financial incentive to rent homes on a daily or weekly basis instead of on a long -term basis, therefore reducing housing availability. Both concerns could be addressed by removing the financial incentive to rent homes on a nightly /short-term versus monthly /full -time basis. One way to do this would be to limit the allowed number of rental nights for a non - hosted unit such that the projected income would be the same as it would be from a home rented full time. Homeowners would have the flexibility to participate in the short-term rental market yet would not have a financial incentive for converting existing housing stock into short-term rentals. Comparing data about median home prices, average nightly rental rates for non - hosted homes and current market rates per month for long -tern rentals, it would take about 129 short term rental nights to cover the monthly cost of a median - priced home, and 120 short term rental nights to generate the same income as a long tern tenant for one year. See data below: Monthly cost of a median - priced home* $2,800 Average monthly rent for long -term rental $2,600 Average nightly rental rate for non - hosted short term rentals $260 *(including mortgage payment, taxes and insurance) Thus, it is possible to minimize the financial incentive for short rentals by setting at 120 the total nights a homeowner can rent their home on a short term basis. Under this model, homeowners would choose the short term option because of convenience or because it allows them to live in their home during part of the year —not because it offers a more financially lucrative option to renting the home long -term. Section E.2 of the proposed Ordinance has been amended to increase to 120 the number of days allowed for non - hosted vacation rentals. Concentration Staff sought examples of ordinances and processes from other cities limiting the concentration of vacation rentals in residential neighborhoods. A few vacation rental programs that limit permit concentrations either by blocks or census tracks were identified. According to the staff in those cities, it appears that concentration programs can work to limit the number of approved vacation rentals in a city or neighborhood, but have drawbacks. 2 In some cases, staff in those cities were concerned that limiting permits forced vacation rental activities underground, increasing the need for enforcement. Also, waiting lists were kept and maintained which significantly increased the staff time and level of staff needed to manage programs. Most cities have opted not to limit concentration unless they find that vacation rentals are threatening neighborhoods. It is recommended that Petaluma not establish concentration limits at this time, and instead focus on enforcement as needed to address problems. Parking The City Council expressed concern with the Planning Manager having "sole discretion" to count street parking to meet the onsite parking requirement when a legal non - conforming parking situation existed. To address this concern, a modification to Section H.3.a is proposed. It provides that the parking exception require an applicant to demonstrate at least forty feet of unobstructed frontage on the abutting public street exists to provide up to two parking spaces. If this cannot be satisfied then the discretion to issue a parking exception would be through a minor use permit. Sunset Clause The City Council asked that a sunset clause be added to the draft ordinance. That clause is included in Section M of the attached Ordinance and requires the City Manager to initiate a program review no later than April of 2018. The section further requires staff to present a report with a recommendation to the Planning Commission to extend, modify and extend, or terminate the program by August of 2018 and to the City Council by October of 2018. If the program is not extended, then the program will automatically terminate by December 31, 2018. Extensions could provide for further reviews and sunsets. Code Enforcement Staff was also asked to review the enforcement provisions of the program to assure that sufficient mechanisms are provided to support meaningful code enforcement. The City's Municipal Code section 1.16 provides broad and deep enforcement mechanisms, definitions, and procedures that are the basis of all code compliance. Adhering to one consistent code enforcement program allows code enforcement to be streamlined and equitable across enforcement categories. To bolster code enforcement, it is recommended that the penalties for non - compliance related to vacation rentals be increased to align with alcohol and social host nuisances. These carry higher penalties that start at $500 for the first offense and increases to $1,000 for the second and third offense. If approved, the proposed Ordinance is changed from the Ordinance proposed in February in the following ways: 1) Non - hosted rental limit increased to 120 days per calendar year, 2) quantitative measurement for administrative parking exceptions, 3) penalties increased for non- compliance and 4) program sunsets in 3 years to assure the program is reviewed and revisited by the City Council. If this Ordinance is approved, the permit fee for the program will be established through a separate Council action. 3 FINANCIAL IMPACTS The cost to implement this program will be paid through the permit fees collected. Additional revenue will be generated by both the business tax and transient occupancy taxes that will be collected from each vacation rental unit. Assuming that 50 permits are issued, a total of $2,250 would be collected in business taxes. Approximately $15,000 would be collected by the permit fees (if they are set at $300) which would pay for staff time to process the applications. If those 50 units were rented out 120 days a year at an average rate of $260 then approximately $156,000 of Transient Occupancy Taxes could also be collected. A more accurate estimate of revenues will depend on the actual number of units rented, the actual number of rental nights, and the actual rates charged for the property. ATTACHMENTS 1. Zoning Text Amendment Ordinance 2. Resolution Updating the Schedule of Penalties 3. Written Public Comment (received since February 23, 2015) M Attachment 1 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA AMENDING THE TEXT OF THE IMPLEMENTING ZONING ORDINANCE SECTIONS 4.030, 7.110, AND 27.020, ORDINANCE NO. 2300 N.C.S., AND THE SMARTCODE, ORDINANCE NO. 2470 N.C.S, SECTIONS 3.1 AND 9.10.010 TO ALLOW SHORT -TERM VACATION RENTALS IN RESIDENTIAL AND MIXED USE ZONES WHEREAS, Section 25.010 of the City of Petaluma Implementing Zoning Ordinance (IZO) provides in pertinent part that no amendment that regulates matters listed in Government Code Section 65850 shall be made to the IZO or Smart Code unless the Planning Commission and City Council find the amendment to be in conformity with the General Plan; and WHEREAS, on November 15, 2010 the Petaluma City Council accepted the Petaluma Economic Development Strategy which identifies expanding tourism as a long term strategy for developing Petaluma's economy; and WHEREAS, on March 4, 2013, the City Council adopted its two -year goals which directed staff to look at and make recommendations about the possibility of allowing and regulating short -term vacation rentals; and WHEREAS, on September 23, 2013, the City Council directed staff to develop a program to regulate short -term vacation rentals and to charge transient occupancy taxes for such uses; and WHEREAS, staff has proposed a series of provisions amending the IZO and Petaluma Smart Code (collectively, "the Amendments "), in order to allow short -term vacation rentals in Petaluma, and expand tourism locally; and WHEREAS, on October 9, 2014, public notice of the October 14, 2014 Planning Commission meeting to consider the Amendments was published in the Argus- Courier and sent to all members of the public on the interested parties list for this item; and WHEREAS, on October 14, 2014, the Planning Commission held a duly noticed public hearing in accordance with the IZO, Section 25.0 to consider the Amendments; and WHEREAS, on October 14, 2014, the Planning Commission continued the hearing to November 18, 2014 and directed staff to amend the proposed resolution; and WHEREAS, on November 18, 2014 the Planning Commission held a duly noticed public hearing in accordance with IZO Section 25.0, to consider the revisions to the Amendments; and WHEREAS, after the conclusion of said public hearing, the Planning Commission adopted Resolution No. 2014 -40, finding the amendments consistent with the General Plan and unanimously recommending that the City Council adopt the amendments; and WHEREAS, on January 15, 2015, a public notice of the January 26, 2015 public hearing before the City Council to consider the amendments was published in the Argus- Courier; and WHEREAS, on January 26, 2015, the City Council of the City of Petaluma held a duly noticed public hearing to consider the Amendments; and WHEREAS, the amendments are categorically exempt pursuant to Section 15305 (Minor Alterations in Land Use Limitations) in that the amendments involve minor modifications to the IZO and Smart Code that do not result in significant changes in allowable land use or density. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS: Section 1. Findings. Based upon the Planning Commission's recommendations, the staff report and presentation, and evidence presented during the public hearing, the City Council of the City of Petaluma hereby finds: a. The Amendments to allow short -term vacation rentals in Petaluma are consistent with General Plan Policies 9.1,2,3 and 9 -P -18 because vacation rentals are expected to expand tourism opportunities throughout the City, support the vibrancy of the downtown by attracting new clientele, and by expanding opportunities to collect transient occupancy tax revenues, thereby contributing to the City of Petaluma's economic base, yielding net fiscal benefits and strengthening the vitality and diversity of the community. b. The Amendments would allow vacation rentals based on an established permit process, limit non - hosted vacation rentals, provide adequate enforcement provisions to ensure minimal impacts to surrounding residential neighborhoods, and uphold the general welfare of Petaluma residents, which furthers General Plan Guiding Principle 1 and Goal 11 -G -5. c. The Amendments to the City's Implementing Zoning Code Sections 4.030, 7.110, and 27.020 and SmartCode Sections 3.1 and 9.10.010 contained in this ordinance are in general conformity with the Petaluma General Plan 2025 and Central Petaluma Specific Plan. Section 2. The Table of Contents of the Implementing Zoning Ordinance, Ordinance No. 2300 N.CS., is hereby amended to add a new section 7.110 to Chapter 7, Standards for Specific Land Uses to read as follows: rel Chapter 7 Standards for Specific Land Uses 51 7.010 - Purpose 7.020 - Applicability 7.030 - Accessory Dwellings 7.040 - Dwelling Group 7.050 - Home Occupation Permit 7.060 - Large Family Child Day Care 7.070 - Short -Term Activities 7.080 - Swimming Pools, Hot Tubs, and Spas 7.090 -Telecommunication Facilities 7.100 - Bed and Breakfast Inns 7.110— Short -Term Vacation Rentals Section 3. Chapter 4, Zone Districts, Section 4.030, Allowable Land Uses, Table 4.1, Implementing Zoning Ordinance, Ordinance No. 2300 N.C.S., is hereby amended to add short - term vacation rentals as a Permitted Use as follows: Natural and Rural Zones LODGING Lodging— Short -Term Vacation Rentals I I— I P 17 I P 17 I Section 7.110 Section 4. Chapter 4, Zone Districts, Section 4.030, Allowable Land Uses, Table 4.2, Implementing Zoning Ordinance, Ordinance No. 2300 N.C.S., is hereby amended to add short - term vacation rentals as a Permitted Use as follows: Residential Zones 7 R2 �'' R3 ) R4 R5 i Regulations LODGING Lodging — Short -Term Vacation Rentals P 17 P 17 P 17 P 17 Section 7.110 Section 5. Chapter 4, Zone Districts, Section 4.030, Allowable Land Uses, Table 4.3, Implementing Zoning Ordinance, Ordinance No. 2300 N.C.S., is hereby amended to add short - term vacation rentals as a Permitted Use as follows: Mixed Use Zones LODGING Lodging — Short -Term Vacation Rentals ELl-71 I E 1-71 I P 17 P 17 P 17 Section 7.110 Section 6. Chapter 4, Zone Districts, Section 4.030, Allowable Land Uses, Table 4.3, Footnote 17 to Tables 4.1 to 4.5, Implementing Zoning Ordinance, Ordinance No. 2300 N.C.S, is hereby added as follows: Short -term vacation rental permit, business license and transit occupancy tax certificate required (see section 7.110 of Implementing Zoning Ordinance) Section 7. Chapter 7, Standards for Specific Land Uses, Section 7.110 of the Implementing Zoning Ordinance, Ordinance No. 2300 N.C.S., Short -Term Vacation Rentals, is hereby added to read as follows: 7.110 — Short -Term Vacation Rentals This Section establishes requirements and conditions for the establishment and operation of short -term vacation rentals within residential, planned unit development, and mixed -use zoning districts. A. Purpose. The purpose of this section and the standards outlined below is to serve visitors of Petaluma, to ensure that short -term vacation rentals are compatible with residential and mixed use, and planned unit districts, and to preserve the character of the neighborhoods in which they are located. E B. Permit Required. 1. Short -term vacation rentals. Short -term vacation rentals are a permitted use only in residential, planned unit development, and mixed use zoning districts and only pursuant to a valid Short Term Vacation Rental Permit issued in accordance with this section by the Planning Director or designee of the Planning Director. 2. Notice to Neighbors. Upon approval of a Short -Term Vacation Rental Permit, all property owners within 100 feet of the permitted Short -Term Vacation Rental shall be noticed in writing. Such notice shall include the location of the short term vacation rental, number of rooms available for short term vacation rental, and contact information for the locally - available manager. C. Requirements Applicable to All Short Term Vacation Rentals 1. Guest Manual. The Host shall provide a written manual to guests providing the local manager's contact information, the Performance Standards set forth in Chapter 21 of the Implementing Zoning Ordinance, parking limitations, and other helpful information to minimize conflict within the neighborhood. 2. Signs. On -site signage is prohibited. 3. Business License. All short -term vacation rentals require a valid Business License issued in accordance with Chapter 6.01 of the Petaluma Municipal Code. 4. Transit Occupancy Tax. Short -term vacation rentals are subject to and must satisfy all applicable requirements of the City's transit occupancy tax. S. Permit Number. In every advertisement for the Short Term Vacation Rental, the Permitee shall include the City issued Permit Number. D. Requirements Applicable To Hosted Short Term Vacation Rentals. A Short Term Vacation Rental in which the permittee occupies the property with the guests and is subject to the following requirements: 1. Limit on Maximum Number of Occupants. No more than 2 overnight occupants per bedroom plus 2 additional occupants are permitted. a. No more than two bedrooms in the dwelling maybe furnished for compensation. (See section 7.100 for Bed and Breakfast requirements.) b. If the entire dwelling is an accessory /secondary unit, it may be furnished for compensation as a Hosted Short Term Vacation Rental, provided that the 9 guests constitute one party, which may be evidenced through a single rental agreement for the entire dwelling. 2. Manager. The permittee must be available at all times and be able to respond to complaints within 1 hour. E. Permit Requirements Applicable To Non - Hosted Short Term Vacation Rentals. A Short Term Vacation Rental in which the permittee does not occupy the property with the guests and is subject to the following requirements 1. Limits on Occupants. a. The entire dwelling may be furnished for compensation, provided that the guests constitute one party, which may be evidenced through a single rental agreement for the entire dwelling. b. No more than 2 overnight occupants per bedroom plus 2 additional occupants are permitted. 2. Limitation on Days. The dwelling as a non - hosted vacation rental may be furnished for compensation for no more than 90 120 days during any calendar year. 3. Manager. A manager located within 45 miles of the City must be available at all times and be able to respond to complaints within 1 hour. F. Short -Term Vacation Rentals in Planned Unit Developments. A permit issued for a Short Term Vacation Rental in a Planned Unit Development must comply with Section 19.050 of the Implement Zoning Ordinance. G. Dispute Resolution. Upon receipt of three or more complaints in a calendar year about a Short Term Vacation Rental, with the consent of the parties involved, the City may refer the parties to a third party mediator. The cost shall be shared equally by the parties involved, unless the parties agree otherwise in writing. H. Application Process. The application process for a Short Term Vacation Rental Permit shall be as follows: 1. Application for Permit. Application for a Short -Term Vacation Rental Permit shall be made to the Director on a form provided by the City. 2. Fee. The fee that applies to process applications for Short -Term Vacation Rental Permits shall be set by City Council resolution. 10 3. Parking. The application must show that the applicant can provide: a. Parking. On -site parking for the existing residential use shall be provided as required in Table 11.1 for Dwelling Single Family or Multiple Household, as applicable. The Planning Pir,,ete an his „r heir sole disGFeti -. Y 0. eCredit for up to two uncovered spaces may be counted if the existing onsite parkin g en the abutting puhoc,. street iftheFe is legal non - conforming and the property frontage along the abutting public street is at least forty feet without obstruction paFl(ing an the sate; or b. Parking Exception. Applicants that are unable to meet the parking requirements in Section H.3.a. due to existing legal non - conforming parking and /or site constraints, may obtain a Parking Exception upon approval of a Minor Conditional Use Permit as prescribed by Section 24.030. Applications for a Parking Exception must provide documentation demonstrating that adequate on- street parking is available to accommodate the proposed short term vacation rental and the other existing uses on the site. 4. Safety. All short term vacation rentals must provide smoke detectors, CO2 detectors, be adequately heated, and otherwise satisfy all applicable requirements of the California Building Standards Code as in effect in the City 5. Duration. Short -Term Vacation Rental Permits shall be valid through the end of the calendar in which they are issued. All Short -Term Vacation Rental Permits shall expire on December 31, unless a renewal application is approved. 6. Permit Approval. A Short -Term Vacation Rental Permit application shall be approved if all applicable requirements are satisfied; otherwise, the application shall be denied. Renewal of Permit. 1. Permittees may apply to renew Short -Term Vacation Rental Permits on forms provided by the City. 2. Permit renewal applications do not require notice in accordance with Section B. 2. 3. The Director shall issue a renewal of a Short Term Vacation Rental Permit if the permittee satisfies all applicable requirements pursuant to this Chapter; otherwise 11 such renewal applications shall be denied. The Director may deny a renewal application if he or she determines that any of the following have occurred during the 12 months prior to the renewal application: a. Failure to timely remit Transient Occupancy Taxes; or b. More than three verified violations of this section; or c. The Director determines that permittee has provided false information in the application or previous renewal application; or d. An authorized official has given notification of health or safety violations or non - compliance on the property. J. Revocation of Permit. Upon confirmation of three or more verified violations of this section or other information alleging that a short -term vacation rental has violated or is in violation of any applicable laws, regulations, or other requirements, including, but not limited to, the requirements of this section, the Planning Director or a designee of the Planning Director may commence permit revocation proceedings in accordance with section 24.030(J). Once a Short -Term Vacation Rental Permit has been revoked, continued use of the Short -Term Vacation Rental at that location is prohibited and subsequent applications may not be filed within one (1) year from the date of revocation. K. Appeal. Appeal of decisions of the Planning Director pursuant to this section may be brought pursuant to Section 24.070. L. Enforcement. The City may seek remedies for any violations of this section pursuant to any applicable authorities, including, but not limited to, those contained in Chapter 26 and those contained in Title 1 of the Petaluma Municipal Code. M. Sunset. Unless otherwise extended, or modified and extended by action of the City Council, this Ordinance shall expire and its terms shall no longer remain in effect as of midnight, December 31, 2018. Section 8. Chapter 28, Glossary of the Implementing Zoning Ordinance, Ordinance No. 2300 N.C.S., definition of "Bed and Breakfast Inn" is amended to read as follows: Bed and Breakfast Inn (B &B). A residential structure with one household in permanent residence, with three or more bedrooms furnished for compensation for overnight lodging, where meals may be provided subject to applicable Health Department regulations. Does not 12 include room rental, which is separately defined (see "Rooming, Lodging, Boarding House, or Short Term Vacation Rental "). Section 9. Chapter 28, Glossary of the Implementing Zoning Ordinance, Ordinance No. 2300 N.C.S., definition of "Rooming or Boarding, Accessory" is amended to read as follows: Rooming or Boarding, Accessory. A portion of a dwelling where lodging and boarding are provided for no more than 3 persons for a_period of 30 days or longer. Section 10. Chapter 28, Glossary of the Implementing Zoning Ordinance, Ordinance No. 2300 N.C.S., definition of "Rooming, Lodging or Boarding Housing" is amended to read as follows: Rooming, Lodging or Boarding House. A dwelling or part of a dwelling where lodging is furnished for compensation to three or more persons living independently from each other for a period of 30 days or longer. Meals may also be included. Section 11. Chapter 28, Glossary of the Implementing Zoning Ordinance, Ordinance No. 2300 N.C.S., definition of "Short -Term Vacation Rental" is added to read as follows: Short -Term Vacation Rental - A dwelling, part of a dwelling, or dwelling as an accessory or secondary unit furnished for compensation for a period of less than 30 days. Meals may also be included. Does not include room rental for 30 days or more, which is separately defined (see "Rooming, Lodging, or Boarding House "). Section 12. Section 3, Building Function Standards, Section 3.10.030, Permit Requirements for Allowable Uses, Table 3.1, Allowed Building Functions and Permit Requirements, Smart Code, Ordinance No. 2470 N.C.S., is hereby amended to add short -term vacation rental as a Permitted Use as follows: Lodging Short-term vacation rental Ps Ps P2,5 Pz,s Section 13. Section 3, Building Function Standards, Section 3.10.030, Permit Requirements for Allowable Uses, Footnote 5 to Table 3.1, Allowed Building Functions and Permit Requirements, Smart Code, Ordinance No. 2470 N.C.S., is hereby added as follows: 13 Short -term vacation rental permit, business license and transit occupancy tax certificate required (see section 7.110 of Implementing Zoning Ordinance) Section 14. Section 9, Glossary, Section 9.10.020, Definitions of Specialized Terms and Phrases, Bed and Breakfast Inn (B &B), Smart Code, Ordinance No. 2470 N.C.S is hereby amended to read as follows: Bed and Breakfast Inn (B &B). A residential structure with one household in permanent residence, with three or more bedrooms rented for overnight lodging, where meals may be provided subject to applicable Health Department regulations. Does not include room rental, which is separately defined (see "Rooming, Lodging, Boarding House, or Short Term Vacation Rental "). Section 15. Section 9, Glossary, Section 9.10.020, Definitions of Specialized Terms and Phrases, Short -Term Vacation Rental, Smart Code, Ordinance No. 2470 N.C.S is hereby added to read as follows: Short -Term Vacation Rental - A dwelling, part of a dwelling, or dwelling as an accessory or secondary unit furnished for compensation for a period of less than 30 days; Meals may also be included. Does not include room rental for 30 days or more, which is separately defined (see "Rooming, Lodging, or Boarding House "). Section 16. Except as amended herein, the City of Petaluma SmartCode, Ordinance No. 2470 N.C.S. and the City of Petaluma Implementing Zoning Ordinance, Ordinance No. 2300 N.C.S., remains unchanged and in full force and effect. Section 17. Program Evaluation. No later than April 2, 2018, the City Manager shall cause to be initiated a study to determine the effectiveness of this ordinance in regulating the operation of short term vacation rentals in the City of Petaluma, the administrative effectiveness of the short -term vacation rental program, and whether a need to regulate short term vacation rentals continues to exist. Specific areas of inquiry shall be determined by the City Manager, but shall be sufficient to address these broad areas of concern. The study, shall be presented to the Planning Commission not later than August 14, 2018, and shall include recommendations to terminate, extend, or modify and extend the program. The study shall be accompanied by proposed legislation, if the recommendation to the Planning Commission is to extend, or modify and extend, the effective date of the program. Not later than October 15, 2018, the study, together with the recommendations of the Planning Commission, and any accompanying legislation, shall be presented to the City Council for its consideration. 14 Section 18. Severability. If any section, subsection, sentence, clause, phrase or word of this ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent jurisdiction or preempted by state legislation, such decision or legislation shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Petaluma hereby declares that it would have passed and adopted this ordinance and each and all provisions thereof irrespective of the fact that any one or more of said provisions be declared unconstitutional, unlawful or otherwise invalid. Section 19. Effective Date. This ordinance shall become effective thirty (30) days after the date of its adoption by the Petaluma City Council. Section 20. Posting /Publishing of Notice. The City Clerk is hereby directed to publish or post this ordinance or a synopsis for the period and in the manner provided by the City Charter and other applicable law. 15 Attachment 2 RESOLUTION NO. A RESOLUTION UPDATING THE SCHEDULE OF PENALTIES FOR ADMINISTRATIVE CITATIONS FOR VIOLATIONS OF THE PETALUMA MUNICIPAL CODE WHEREAS, Section 1.16.030 of the Petaluma Municipal Code provides that the amounts of fines for code violations imposed pursuant to chapter 1.16 of the Petaluma Municipal Code can be imposed in accordance to the City's schedule of administrative penalties; and WHEREAS, Section 1. 16.090 of the Petaluma Municipal Code provides that any person who fails to pay to the city any penalty imposed pursuant to the provisions of chapter 1.16 on or before the date that penalty is due also shall be liable for the payment of any applicable late payment charges set forth in the schedule of penalties; NOW THEREFORE, be it resolved by the City Council as follows: Section 1: The administrative penalty amounts set forth on "Table 1" attached hereto are hereby established for violations of the Petaluma Municipal Code; Section 2: Except as otherwise specifically set in Table 1, the administrative penalty amount for a first violation of the Petaluma Municipal Code shall be One Hundred Dollars ($100.00); Section 3: Except as otherwise specifically set forth in Table 1, the penalty amount for a second violation of the same municipal code section by the same person or responsible party within a thirty -six (36) month period shall be and equal to Five Hundred Dollars ($500.00); Section 4: Except as otherwise specifically set forth in Table 1, the penalty amount for a third and subsequent violation of the same municipal code section by the same person or responsible party within a thirty -six (3 6) month period shall be One Thousand Dollars ($1,000.00); Section 5: Any penalty amount imposed pursuant to Chapter 1.16 of the Petaluma Municipal Code and this Resolution shall be deemed delinquent if it is not paid in accordance with the terms and provisions of Chapter 1.16. Any person who fails to pay the City the amount of any penalty imposed pursuant to the provisions of Chapter 1.16 of the Petaluma Municipal Code and this resolution on or before the date that the fine amount is due shall be liable for the payment of an addition delinquency penalty. The delinquency penalty is equal to ten percent (10 %) of the amount of the penalty due to the City, or ten percent (10 %) of the amount of the penalty remaining unpaid to the City if a portion of the penalty amount was timely paid. Interest shall accrue on all delinquent penalty amounts, exclusive of the delinquency penalties, at the rate of one half of one percent (1.5 %) per month, pro rata, of the total delinquent penalty amount, fiom the date the penalty becomes delinquent until the date that all delinquent penalty amounts are paid to the City. ffel Section 6: The penalty amounts set forth in this Resolution shall not be binding upon an administrative hearing officer who issues an administrative order pursuant to Petaluma Municipal Code Section 1.14.100 Section 7: In addition to any administrative penalties specified for violations of the Petaluma Municipal Code, there shall be a separate penalty collected in connection with the permit application to legalize any construction, use, or activity that has occurred without required City permits or approvals. Such penalty shall be equal to double the amount of the applicable permit fee specified in the City's Master Fee Schedule. 17 TABLE 1 CITY OF PETALUMA SCHEDULE OF PENALTIES FOR ADMINISTRATIVE CITATIONS Chapter/ Recommended Section Violation Charge 8 -20 Reg ilatien of Smoking in ('Rain P ihlin Places Forst Offens-z 400 Connnd Offence (Within 12 MORths) 200 Third dt. Additional offence ( Within 12 MGnthc) 500 8.28 Heritage and Landmark Trees First Offense 100 Second Offense (Within 12 Months) 200 Third & Additional Offense (Within 12 Months) 500 9.08.130 Animals at large First Offense 100 Second Offense 200 Third & Additional Offense (Within 36 Months) 500 9.08.170 Animal Wastes First Offense 100 Second Offense 200 Third & Additional Offense (Within 36 Months) 500 9.16 Dog Licenses First Offense 100 Second Offense 200 Third & Additional Offense (Within 36 Months) 500 10.64 Social Host Ordinance First Offense 500 Second Offense 1000 Third & Additional Offense (Within 36 Months) 1000 10.68 Alcohol Related Nuisance Ordinance First Offense 500 Second Offense 1000 Third & Additional Offense (Within 36 Months) 1000 11.76.050 Protective equipment required at city of Petaluma skate park facility First Offense 100 Second Offense (Within 12 Months) 200 Third & Additional Offense (Within 12 Months) 500 18 TABLE 1 CITY OF PETALUMA SCHEDULE OF PENALTIES FOR ADMINISTRATIVE CITATIONS Chapter/ Recommended Section Violation Charge 13.04.150 Failure to Remove a Permitted Encroachment First Offense 100 Second Offense (Within 12 Months) 200 Third & Additional Offense (Within 12 Months) 500 13.08.050 Vegetation Blocking visibility First Offense 100 Second Offense (Within 12 Months) 200 Third & Additional Offense (Within 12 Months) 500 13.08.060 Destruction of Trees in Public Rights -of -Way First Offense 100 Second Offense (Within 12 Months) 200 Third & Additional Offense (Within 12 Months) 500 13.08.070 Tree Removal Permit Required for Trees in Rights -of -Way First Offense 100 Second Offense (Within 12 Months) 200 Third & Additional Offense (Within 12 Months) 500 13.10.010(A) Property Owner's Responsibility to Maintain Street Trees First Offense 100 Second Offense (Within 12 Months) 200 Third & Additional Offense (Within 12 Months) 500 13.10.020(A) Property Owner's Responsibility to Maintain Sidewalks and Landscaping First Offense 100 Second Offense (Within 12 Months) 200 Third & Additional Offense (Within 12 Months) 500 13.24 Waterways First Offense 100 Second Offense (Within 12 Months) 200 Third & Additional Offense (Within 12 Months) 500 13.28.186 Releasing Animals, Fish, or Fowl in City Parks Prohibited First Offense 100 Second Offense (Within 12 Months) 200 Third & Additional Offense (Within 12 Months) 500 19 TABLE 1 CITY OF PETALUMA SCHEDULE OF PENALTIES FOR ADMINISTRATIVE CITATIONS Chapter/ Recommended Section Violation Charge 13.32.170 Public Parks - Special Event Permit Required First Offense 100 Second Offense (Within 12 Months) 200 Third & Additional Offense (Within 12 Months) 500 13.32.180 Operating outside of scope of special event permit prohibited First Offense 100 Second Offense (Within 12 Months) 200 Third & Additional Offense (Within 12 Months) 500 13.40.040 Filming Permit Required First Offense 100 Second Offense (Within 12 Months) 200 Third & Additional Offense (Within 12 Months) 500 15.80.060 Prohibited Discharge into city's MS4 or watercourses First Offense 500 Second Offense 1000 Third & Additional Offense (Within 36 Months) 1000 17.20 Fire Code Violations- Other than Dangerous Fireworks First Offense 250 Second Offense 500 Third & Additional Offense (Within 36 Months) 1000 17.20 Fire Code Violations- Dangerous Fireworks First Offense 1000 Second Offense 1000 Third & Additional Offense (Within 36 Months) 1000 Title 21, Implementing Zoning Ordinance, Section 7.110 Short -Term Vacation Rental Violations First Offense 500 Second Offense 1000 Third & Additional Offense (Within 36 Months) 1000 20 Attachment 3 Written Public Comment 21 From: Christina Gleason To: David Glass; Gina Petnic; Diana Gomez; Bill Wolpe ; Alverde. Inarid; Mike Heal ; Dave ;,Hill, Ellen; >dines, Heather; Richd Marzo; citvmar; Chris Albertson; Gabe Kearney; Jocelyn Lyn; Kathy Miller; Jennifer Plerre; Cooper. Claire; Teresa Barrett Cc: Kelly Sullivan; Billie Suder; Janet Parmer; Steve &Tray Smith; Bernard Greooris; BurbankNelohborhoods; Marie; ianCindy Rawlinson; Nancy Sasser; Mammoth Neighborhoods; Kit Sc I c ; Douglas Freund; Sherry Wright; Sherry Padfield; Martha Johnson; Juanita Radford; Susan Thompson; Allza Brady; Erik Chiochase; Bridget Lyons; Darren Sciford; Mike Kraus; Barbara Ramirez;.Mike Gleason; Barb Morrison; Sally AtterbuLy; oe Castillo; Maureen Kennedy; Christina Gleason; Stefany Perlman; Carol Castillo; Jeff &Carmen Sobiera; Jane Plummer Subject: important facts - TOT revenue from overnight rentals Date: Wednesday, May 20, 201511:43:04 AM Mr. Mayor and Petaluma City Government for your information << ",wJetmammothdecide.com >> Frequently Asked Questions: 1. We need to expand nightly rentals to increase tax revenue — this is a "missing product." Regarding TOT ... [excerpted] "it's important to get all the facts on the table so that we don't unintentionally undermine the life blood of our town's services. There has been little evidence presented that indicates manding home rentals out of the resort zone and into the residential zones would increase our TOT. The occupancy rates for our legal home rentals (like that for our entire rental pool, which is below 3791.) are shockingly low. In fact, two homes at Stonegate just went back to the bank due to a lack of sufficient revenue. And of course, this doesn't even touch on the large luxury townhomes that fill the same demand, which have equally shocking low occupancy rates, The large 4+ bedroom Snowcreek townhomes are below 30% occupancy, The basic rules of supply and demand do not support the argument that opening additional product in an already saturated market would Increase TOT, The Petaluma Neighbors www, protectpetaluma nelahborhoods.com 22 Alverde, Ingrid From: Christina Gleason <cbgart @comcast.net> Sent: Thursday, May 14, 2015 12 :18 PM To: David Glass; Gina Petnic; Teresa Barrett; Bill Wolpert; Alverde, Ingrid; Mike Healy; Hill, Ellen; Dave King; Hines, Heather, Richd Marzo; Gabe Kearney; citymgr; Jocelyn Lyn; Chris Albertson; Kathy Miller, Cooper, Claire; Diana Gomez; Jennifer Pierre Subject: Fwd: vacation rentals bill Kind Mr Mayor, Petaluma City Council, and City of Petaluma fyi PD DEREK MOORS THE PRESS DEMOCRAT May 13, 2015, 11:23AM (excerpted) Bill to limit online vacation rentals including Alrbnb, VRBO clears hurdle The bill by state Sen. Mike McGuire, D- Healdsburg, now heads to the full Senate and into what is expected to be an increasingly pitched battled centered around the so- called sharing economy and traditional methods of tax collection to fund services ranging from road maintenance to firefighting. Wednesday's hearing also was closely watched because of the potential for California to establish the most comprehensive online vacation rental regulations in the nation. That includes a provision in McGuire's bill requiring companies such as Airbnb and VRBO to disclose the addresses of rentals to local government taxing authorities. LINK: http : / /www.pressdeinocrat.com/news/ 3929686 - 181 / bill -to- limit - online - vacation ?most 23 Alverde, Ingrid From: Christina Gleason <cbgart @comcast.net> Sent: Friday, May 01, 2015 9 :41 AM To: David Glass; Gina Petnic; Jennifer Pierre; Bill Wolpert; Alverde, Ingrid; Mike Healy; Hill, Ellen; Dave King; Hines, Heather; Richd Marzo; Gabe Kearney; citymgr; Jocelyn Lyn; Chris Albertson; Kathy Miller; Diana Gomez; Teresa Barrett; Cooper, Claire Subject: regulations short term rentals-Santa Monica_ from L.A. Times F Y I Categories: Vacation Rental Mr Mayor and Kind Council Members and City of Petaluma F Y I as follows link. from L.A. Times regarding "short term rentals" On Apr 29, 2015 Santa Monica City Council takes first step to rein in short -term rentals - LA Times 24 Alverde, Ingrid From: Christina Gleason <cbgart @comcast.net> Sent: Tuesday, February 24, 2015 11:40 AM To: David Glass Cc: Diana Gomez; Bill Wolpert; Jocelyn Lyn; citymgr, Alverde, Ingrid; Kathy Miller; councilmemberkearney @me.com; Hines, Heather; johagan @ci.petaluma.ca.us; aguidice @ci.petaluma.ca.us; Robbe, Tiffany; Hill, Ellen; Gina Petnic; Cooper, Claire; councilman.albertson @gmail.com; mthealy @sbcglobal.net Healy; davekingpcc @gmail.com; Teresa Barrett Subject: Thank you Mr Mayor & Council Members -• Council Hearing Feb 23 Categories: Vacation Rental Kind Mayor Glass and Petaluma City Council: City of Petaluma Thank you for hearing public comment last evening regarding agenda "Overnight Rentals" and for your careful attention and examination with respect to overnight rentals "mechanism ". There are many important fine points to consider, some of which were brought to notice during Hearing. I would caution your allowance mechanism with respect to "variances" as they apply to an individual. What is fair for some will be compared to others in the future demanding same situ. Tenets of fairness should go across the board to avoid future law suits and such albeit. It is heartfelt to hear some Petalumans who struggle financially and who operate overnight rentals for added income; though ordinance must be akin in its responsibility as it pertains to the whole; the majority. Exception can lead to divisiveness within a community later on. For example: " variance " - an individual had removed his/her driveway and says I do not have a driveway. Be prudent and clear; be concise so as to avoid " variance "nebulae which could prove chronic and problematic in the future, requiring staff assistance and draining city funds. As Susan Thompson found in her research: Oct 2014 to Dec 2014, fifty overnight rentals - one hundred fifteen overnight rentals, respectively. The number seems to be exponentially reflecting rapid growth over a three month period. In doing the math, more overnight rentals will proliferate neighborhoods and shall be seen over time. Everyone needs added income and many will choose this option. There will be conflicts between neighbors to be sure, which will require staff attention; hence drains on City resources. An excellent point regarding distance: 200 feet would better reflect impacts to neighbors; perhaps 500. Regarding managers /hosts a four minute range seems more doable for both guests and neighbors instead of forty -five minutes depending on "where" and "time of day" Finally, f y i : Excerpt 2/6/15: Senator Diane Feinstein's response to myself [Christina Gleason] regarding overnight rentals as follows: I share your belief t /tat strong zoning lawsprolect residential areas fr om certain commercial activities and support familles. This legislation, by allowingprivate homes to be leased out as hotels, will blur the line behveen commercial and residential neighborhoods, and thereby ruin the distinct character of San Francisco's numerous residential areas. I believe that this lav will also cause the already high cost of living to farther increase and exacerbate the shortage of affordable housing, as homeowners and renters will leave their units to rent them out to hotel users. Finally, it is estimated thatAirbnb rentals owe more than $25 million in back taxes, andlwas disappointed to (rear that an amendment to collect these taxes prior to implementation of this law was rejected by the Board of Supervisors. Respectfully, 25 Christina B Gleason Petaluma resident Keokuk st Petaluma, CA IRM Alverde, Ingrid From: Christina Gleason <cbgart @comcast.net> Sent: Thursday, March 05, 2015 9 :18 AM To: David Glass Cc: Bill Wolpert; Alverde, Ingrid; Cooper, Claire; Joe Castillo; Carol Castillo; Douglas Freund; Darren Sciford; Mike Gleason; SaveBurbankNeighborhoods; Erik Chipchase; Steve &Tracy Smith; Marie; Sherry Padfield; Nancy Sasser, Sherry Wright; Jeff &Carmen Sobiera; Bridget Lyons; Mike Kraus; Kelly Sullivan; Barb Morrison; Martha Johnson; Aliza Brady; Mammoth Neighborhoods; Juanita Radford; Sally Atterbury; Christina Gleason; Susan Thompson; Kit Schlich; Barbara Ramirez; Maureen Kennedy; IanCindy Rawlinson; Stefany Perlman; Billie Suder Subject: neighborhoods / vacation rentals - South Lake Tahoe Categories: Vacation Rental For your information: Overnight rentals in South Lake Tahoe excerpted as follows: "The saturation in our town is really affecting the quality of life in our neighborhoods," Uhler said, adding: `it relates to the tension in our neighborhoods," - The Sacramento Bee Read the entire article : << http: / /www.sacbee.com /news /local /articiel 1883386.html >> Petaluma Neighbors Preserving Petaluma Neighborhoods www. proteetpetalumaneighborhoods .com 27 Alverde, Ingrid From: Christina'Gleason <cbgart @comcast.net> Sent: Tuesday, April 07, 2015 8:01 AM To: Alverde, Ingrid Cc: Hines, Heather; citymgr; Cooper, Claire Subject: Fwd: Sonoma rejects easing vacation rental rules I The Press Democrat Categories: Vacation Rental F Y I - Regarding Vacation Rentals: "The City Council shot down Monday a proposal that would have eased restrictions and allowed residents to rent out a room in their home to tourists. They voted 3 -1 to uphold a recommendation by the Planning Commission, which argued the proposed ordinance could have harmed the character of residential neighborhoods and taken away from affordable housing stock." Press Democrat April 7, 2015 Read the entire article at this link: http: / /www.pressdemocrat. com/home/ 3762431- 181 /sonoma- rejects - easing- vacation - rental 28 Afverde, Ingrid From: Christina Gleason <cbgart @comcast.net> Sent: Tuesday, April 14, 2015 3:18 PM To: David Glass Cc: Gina Petnic; Teresa Barrett; Bill Wolpert; Alverde, Ingrid; Mike Healy; Dave King; Hill, Ellen; Hines, Heather; Richd Marzo; Chris Albertson; citymgr; Gabe Kearney; Jocelyn Lyn; Kathy Miller; Jennifer Pierre; Diana Gomez; Cooper, Claire Subject: Fwd: overnight rentals not in residential areas voter initiative - Mammoth Categories: Vacation Rental Mr Mayor and addressees f y i as follows : Begin forwarded message: From: Let Mammoth Decide <letmammothdecideCa�-cgmail.com> Subject; Wow! Date: April 14, 2015 12:59:03 PM PDT The signatures have been absolutely pouring in for Let Mammoth Decide's ballot initiative! More than 8 out of 10 Mammoth voters that our volunteers have approached are in favor of the proposition that "nightly home rentals should not be expanded into residential neighborhoods without voter permission." It is becoming abundantly clear where the people stand on this issue. As a result, we have far surpassed the minimum number of signatures required to get our initiative on the ballot. So far, we have over 800 signatures, which is ahnost 300% greater than the amount required by law, and the signatures are continuing to pour in. Our experience so far has been incredibly gratifying. The process seems to be a wonderfully unifying experience for our community and neighborhoods. If you haven't signed yet, our more than 40 volunteers will be continuing to collect signatures at Vons and going door -to-door in our neighborhoods. Please shoot us an email if you'd like to sign or join our team of volunteers. While only registered Mammoth voters can sign our petition, second homeowners have been the biggest financial supporters of our efforts. The Majestic Pines neighborhood has shown the most financial support for the initiative, with The Knolls right behind. If you haven't donated yet, you can mail a check to: Im Let Mammoth Decide PO Box 485 Mammoth Lakes, CA 93546 And you can donate online here: http: / /letmammothdecide, org /donate/ Our legal costs in drafting a well - written and airtight initiative have been substantial so we need all the financial help we can get. Please forward this email to your friends and family! Sincerely, The Let Mammoth Decide Team http: / /letmammothdecide, org https://www.facebool(.com/letmammothdecide MI Alverde, Ingrid From: Christina Gleason <cbgart @comcast.net> Sent: Friday, May 01, 2015 9:41 AM To: David Glass; Gina Petnic; Jennifer Pierre; Bill Wolpert, Alverde, Ingrid; Mike Healy; Hill, Ellen; Dave King; Hines, Heather; Richd Marzo; Gabe Kearney; citymgr, Jocelyn Lyn; Chris Albertson; Kathy Miller, Diana Gomez; Teresa Barrett; Cooper, Claire Subject: regulations short term rentals-Santa Monica_ from L.A. Times F Y I Categories: Vacation Rental Mr Mayor and KInd Council Members and City of Petaluma F Y I as follows link from L.A. Times regarding "short tern rentals" On Apr 29, 2015 Santa Monica City Council takes first step to rein in short -term rentals - LA Times 31 Alverde, Ingrid From: Christina Gleason <cbgart @comcast.net> Sent: Monday, April 27, 2015 3 :18 PM To: Alverde, Ingrid Subject: Fwd: From April 14 Mammoth - initiative not to expand home rentals into residential neighborhoods F Y I [please disregard if you have already received this email] Begin forwarded message: From: Let Mammoth Decide <letmammothdecide(a.gmail.com> Date: April 14, 2015 12:59 :03 PM PDT The signatures have been absolutely pouring in for Let Mammoth Decide's ballot initiative! More than 8 out of 10 Mammoth voters that our volunteers have approached are in favor of the proposition that "nightly home rentals should not be expanded into residential neighborhoods without voter permission." It is becoming abundantly clear where the people stand on this issue. As a result, we have far surpassed the minimum number of signatures required to get our initiative on the ballot. So far, we have over 800 signatures, which is almost 300% greater than the amount required by law, and the signatures are continuing to pour in. Our experience so far has been incredibly gratifying. The process seems to be a wonderfully unifying experience for our community and neighborhoods. If you haven't signed yet, our more than 40 volunteers will be continuing to collect signatures at Vons and going door- to- door .in our neighborhoods. Please shoot us an email if you'd life to sign or join our team of volunteers. While only registered Mammoth voters can sign our petition, second homeowners have been the biggest financial supporters of our efforts. The Majestic Pines neighborhood has shown the most financial support for the initiative, with The Knolls right behind. If you haven't donated yet, you can mail a check to: Let Mammoth Decide PO Box 485 Mammoth Lakes, CA 93546 And you can donate online here: hitp : / /letmanunothdecide.or donate/ 32 Our legal costs in drafting a well - written and airtight initiative have been substantial so we need all the financial help we can get. Please forward this email to your friends and family! Sincerely, The Let Mammoth Decide Team http : //Ietmammothdecide. or g https://www.facebook.com/letmammothdecide 33