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HomeMy WebLinkAboutStaff Report 6.B 07/20/2015Agenda Item #6.B DATE: July 20, 2015 TO: Honorable Mayor and Members of the City Council through City Manager FROM: Ingrid Alverde, Redevelopment / Economic Development Manager 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: 1. Conduct a Public Hearing 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 June 1, 2015, the City Council reviewed a proposal to allow vacation rentals in residential zones. The June 1, 2015 staff report is attached for your reference (Attachment 3). The City Council requested the follow revisions to the proposed Ordinance: • Change the number of days per year allowed for non - hosted units from 120 to 90 days. • Eliminate specific requirements for parking approvals, leaving the determination up to the Planning Director. DISCUSSION A modified Ordinance which addresses these recommendations has been developed and is discussed below: Non - hosted rental limits Council directed staff to reduce the number of days a non - hosted unit could be rented in any calendar year from 120 to 90 days. As was discussed in the report presented to the City Council on June 1, 2015, it is more lucrative to rent a home out on a nightly basis when the nightly rentals exceed 120 days per year. Limiting the rental days to 90 will provide incentive towards long term rentals while providing flexibility to homeowners that prefer the shorter duration rentals. Section E.2 of the proposed Ordinance has been amended to decrease to 90 the number of days allowed for non - hosted vacation rentals. Parking The City Council requested that the Ordinance be amended to allow staff to determine if a proposed vacation rental permit demonstrates that sufficient parking is available for the proposed unit. This discretion will apply to applications for vacation rentals where the home was built prior to establishment of current parking requirements and are therefore have legal non- conforming parking. Section 7.11.3. states that in these situations that the Planning Manager may give credit for up to two uncovered spaces on the abutting public street. Code Enforcement On June 1, 2015, the vacation rental agenda item proposed a change to the existing code enforcement penalty fees to increase the penalties for vacation rental related code offenses. The proposal increases the penalties to $500 for the first offense and to $1,000 for the second and subsequent offenses. There is no proposed change from what was presented on June 1, 2015, but the resolution is provided so that the City Council can approve the action. All other provisions of the proposed ordinance are as presented on June 1, 2015. The document as amended is recommended for your approval. 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 90days a year at an average rate of $260 then approximately $117,000 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. June 1, 2015 Staff Report 4. Written Public Comment (received since February 23, 2015) 2 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: 1-17– 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 1 Lodging — Short -Term Vacation Rentals I (— I P 17 I P 17 ( 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 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 1 Lodging —Short -Term Vacation Rentals P 17 P 17 P 17 P 17 I 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: I-q 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. 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. 5. Permit Number. In every advertisement for the Short Term Vacation Rental, the Permitee shall include the City issued Permit Number. I - (� - 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 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 maybe 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 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. I,— te 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. 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 Manager, in his or her sole discretion, may give credit for up to two uncovered spaces on the abutting public street if there is legal non - conforming parking on the site; 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. I °-� 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. I. 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 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. WN 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 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 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: 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 "). I ®►o 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. 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. 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 (36) 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, from the date the penalty becomes delinquent until the date that all delinquent penalty amounts are paid to the City. �_ -1 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. 2--2 TABLE 1 CITY OF PETALUMA SCHEDULE OF PENALTIES FOR ADMINISTRATIVE CITATIONS Chapter/ Section Violation 8.28 Heritage and Landmark Trees First Offense Second Offense (Within 12 Months) Third & Additional Offense (Within 12 Months) 9.08.130 Animals at large First Offense Second Offense Third & Additional Offense (Within 36 Months) 9.08.170 Animal Wastes First Offense Second Offense Third & Additional Offense (Within 36 Months) 9.16 Dog Licenses First Offense Second Offense Third & Additional Offense (Within 36 Months) 10.64 Social Host Ordinance First Offense Second Offense Third & Additional Offense (Within 36 Months) 10.68 Alcohol Related Nuisance Ordinance First Offense Second Offense Third & Additional Offense (Within 36 Months) 11.76.050 Protective equipment required at city of Petaluma skate park facility First Offense Second Offense (Within 12 Months) Third & Additional Offense (Within 12 Months) 13.04.150 Failure to Remove a Permitted Encroachment First Offense Second Offense (Within 12 Months) Recommended Charge 100 200 500 100 200 500 100 200 500 100 200 500 500 1000 1000 500 1000 1000 100 200 500 100 200 —)-, � TABLE 1 CITY OF PETALUMA SCHEDULE OF PENALTIES FOR ADMINISTRATIVE CITATIONS Chapter/ Recommended Section Violation Charge 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 13.32.170 Public Parks - Special Event Permit Required First Offense 100 Second Offense (Within 12 Months) 200 2 -4 TABLE 1 CITY OF PETALUMA SCHEDULE OF PENALTIES FOR ADMINISTRATIVE CITATIONS Chapter/ Recommended Section Violation Charge 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 Attachment 3 June 1, 2015 Agenda Report DATE: June 1, 2015 TO: Honorable Mayor and Members of the City Council through City Manager FROM: Ingrid Alverde, Redevelopment / Economic Development Manager 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: 3. 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. 4. 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 /)�'l • 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 -term 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 term 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 1) 1-- /�_ 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. 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 � 1/ the City Council. If this Ordinance is approved, the permit fee for the program will be established through a separate Council action. 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 5. Zoning Text Amendment Ordinance 6. Resolution Updating the Schedule of Penalties 7. Written Public Comment (received since February 23, 2015) /�' 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 `/ r I�j 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: d. 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. e. 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. f. 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: '/�' , 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 EL171 E 171 I EL171 E 171 I Section 7.110 I 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 /I/-`'-1 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 1 Lodging— Short -Term Vacation Rentals P 17 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. N. 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. 0. 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. P. 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. 5. Permit Number. In every advertisement for the Short Term Vacation Rental, the Permitee shall include the City issued Permit Number. Q. 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 ,;�i&I 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. R. 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. S. 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. T. 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. U. 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. /;9--ID 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 D aRRing DireetE)F in hiS r-r her sell diserptsen M b- 6Credit for up to two uncovered spaces may be counted if the existing onsite parking „n the abutting public street if there is legal non - conforming and the property frontage along the abutting public street is at least forty feet without obstruction parr the site; 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. V. 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 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. W. 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. X. Appeal. Appeal of decisions of the Planning Director pursuant to this section may be brought pursuant to Section 24.070. Y. 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. Z. Sunset. Unless otherwise extended, or modified and extended by action of the City Council. this Ordinance shall expire and its terms shall no loneer 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 k, I � 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-team vacation rental P5 P 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: 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. /;� --- I � 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. /;� -IV� 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 (36) 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, from the date the penalty becomes delinquent until the date that all delinquent penalty amounts are paid to the City. 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. ,i -Iq TABLE 1 CITY OF PETALUMA SCHEDULE OF PENALTIES FOR ADMINISTRATIVE CITATIONS Chapter/ Animal Wastes Recommended Section Violation Charge 9-10 Regulation of 2—me-king in Certain Dublin DlaGes 200 Cirs;t Offense �(�/� ' -GO 9.16 Ser end Offence (Within 12 Month&) 280 Third & Addifienal Offence (Within 12 McRths) 588 8.28 Heritage and Landmark Trees 200 First Offense 100 10.64 Second Offense (Within 12 Months) 200 Third & Additional Offense (Within 12 Months) 500 9.08.130 Animals at large 1000 First Offense 100 10.68 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) 500 112 ,It 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 /)),- II 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 Attachment 4 Written Public Comment Received Since June 1, 2015 �i -2i Attachment 4 Written Public Comment Received Since June 1, 2015 4 -I June 2, 2015 Honorable Mayor Glass and Petaluma City Council Members, and The City of Petaluma, Thank you for hearing our public comments last evening, June 1. We understand and agree that your proposal to amend the IZO with respect to residential neighborhoods and zoning is a divisive argument both pro and con. Mr. Mayor, your job, as you said last night isn't always the easiest and can be fraught with daunting challenges you would otherwise not invite yourself. I have much respect for your continued perseverance and patient manner therein as well as Council Members. Thank you. I would like to bring to your attention two points that I was not able to cover at the end of the evening as per Ms Alverde and Ms Hines' notes: ONE: With regard to parking : Ms Hines mentioned : "minor CUP" which seems to be a fair element that may be applied in neighborhoods with "non- conforming" parking such as an Historic neighborhood. The two Historic neighborhoods in Petaluma that I know of being Oak Hill Brewster and "H" Street area would greatly benefit from the proposed "minor CUP" as it would consider the short set -back, the highly concentrated lots /homes that, in many cases, are only from three to twenty feet away from the neighbor thus affecting issues that address important spacial conditions. Additionally, the "minor CUP" would dovetail well with IZO Building Code for Historic areas keeping in mind preservation, character and maintenance parameters. TWO: With respect to zoning changes and the sunset clause: Presently, existing "CUP" [2012 - IZO] applies to commercial activity in R1 /R2 zones; overnight rentals excluded. Given the sunset clause and should R1 /R2 overnight rental proliferation show discord in the future; please do consider, already written, the 2012 - CUP rule and amend overnight rentals inclusive. Overnight rentals are a hybrid of a B &B; four days vs one or two day stay; it's overnight lodging plain and simple. CUP seems appropriate in all cases. Again, thank you for taking the time in all this. Your dedication to our City Government and all your effort are very appreciated. Respectfully, Christina Gleason Petaluma Resident Hines, Heather From: Christina Gleason <cbgart @comcast.net> Sent: Wednesday, June 03, 2015 3:11 PM Subject: Mammoth - Initiative Signatures this evening Begin forwarded message: From: Let Mammoth Decide <letmammothdecide(a-)-g mail. com> Subject: Council meeting tonight Date: June 3, 2015 2:00:47 PM PDT A quick update: The Town Council will be officially presented with the certified Initiative signatures at their meeting tonight (agenda item 12). The Council will have three options tonight: (1) adopt the Initiative as written, (2) schedule a special election, or (3) order another report on the Initiative. Given the last governmental report on the Initiative that patently misstated the law and facts, we want to make sure that both the law and facts are crystal clear: The Initiative, and the overwhelming number of Mammoth voters who signed the Initiative petition, stand for the simple proposition that: The power to decide whether nightly home rentals should be expanded into low density residential zones should be held by the people, not the Town Council. The Initiative does not restrict the Council from making any OTHER zoning changes to the three low density residential zones, and does not restrict the Council to act in ANY way outside of these zones (such as in the Resort, Commercial, RMF -2, NVSP, etc.) where nightly rentals are currently legal. While we hope that the Council will respect the will of the people who signed the Initiative petition en masse, and adopt the Initiative as written, we are ready to continue to represent the will of the people if a special election is called. Sincerely, Let Mammoth Decide http://Ietmammothdecide.org/facts-are-iMportant/ https: / /www.facebook. comJletmammothdecide e� Hines, Heather From: Nancy Sasser <nancysasser @amyskitchen.net> Sent: Wednesday, June 03, 2015 10:29 AM To: mayordavidglass @ gmail.com; councilmemberkearney @me.com; councilman.albertson @gmail.com; teresa4petaluma @comcast.net; mthealy @sbcglobal.net; kathleencmilleroffice @ gmail.com; davekingpcc @gmail.com Cc: Alverde, Ingrid; Hines, Heather Subject: Short-Term Vacation Rental - illegal trespass and signage Dear Mayor and City Council Members, Ingrid and Heather, Now that we are embracing short term vacation rentals in the residential zones we need to address the issue of signage. Signage is not permitted in the new ordinance. Last night I was awoken at 11PM by someone trespassing on my front porch. Most likely it was a confused guest of the nearby AirBnB arriving late and going to the wrong house. In the future I will call the police, have them come out, and ask them to validate this as a complaint against the short - term vacation rental. I really hate having to 'waste' the officer's time like this. My property is across the street from the short term vacation rental. The owner of the property adjacent to the Short- Term rental has had 5 such illegal trespass instances in the past 2 years. My suggestion to you is to require modest lit signage on short term - rentals to prevent guests from unintentionally illegally trespassing. Thank you for your consideration. Nancy Sasser 504 Keokuk St. Petaluma, CA 94952 This email and any files transmitted with it are intended solely for the use of the individual or entity to whom they are addressed. Any unauthorized use, disclosure or copying of this email or the attachments is strictly prohibited. If you are not the intended addressee, notify the sender immediately and delete this message. qA Hines, Heather From: Sent: To: Cc: Subject: Begin forwarded message: Christina Gleason <cbgart @comcast.net> Monday, June 08, 2015 12:50 PM David Glass Kathy Miller, Gina Petnic; Bill Wolpert; Alverde, Ingrid; Mike Healy; Dave King; Hill, Ellen; Hines, Heather; Richd Marzo; Chris Albertson; Gabe, Kearney, Jocelyn Lyn; citymgr, Teresa Barrett; Jennifer Pierre; Cooper, Claire; Diana Gomez Fwd: update: (excerpt) Mammoth "overnight rentals" From: Let Mammoth Decide <letmammothdecide(a)-gmail.com> Date: June 8, 2015 10:30 :26 AM PDT (excerpted) ... trend towards city councils restricting nightly home rentals in California continues to grow, with the Manhattan Beach council voting unanimously to ban nightly rentals throughout the entire town. This is another, in a long line of tourist -based cities that have recently decided to increase restrictions on nightly rentals, including Carlsbad, Palos Verdes, Laguna Beach, Aliso Viejo, Santa Monica, Sonoma and Jackson Hole. Even South Lake Tahoe, which legalized nightly rentals across the board years ago, and which some anti- Initiative folks have touted as a model for Mammoth, has recently attempted to put their nightly rental cat back in the bag. To make our Council's apparent opposition to the Initiative even more bizarre is the fact that Mammoth already has zones that allow nightly home rentals, with over 180 stand -alone homes that are legal to be rented on a nightly basis and dozens more under construction. Additionally, inside of these nightly rental zones, there are entire neighborhoods that past councils allowed to prohibit nightly rentals (for example, Ranch Road, Greyhawk, etc.). If the anti - Initiative folks want the Council to maintain the power to expand nightly home rentals, they should look no further than these developments, where the Council can still expand nightly rentals even after the Initiative passes. The Let Mammoth Decide Initiative simply says that for the three low- density residential zones, nightly rentals cannot be expanded unless the voters approve. Instead of trying to figure out ways to de- legitimize the democratic process and the overwhelming number of Mammoth voters who signed the petition, the Town Council should listen to its voters. There are a lot of serious issues facing our town, so we hope the Council chooses to respect the will of the people and move on to the other issues we elected them to tackle. Sincerely, Let Mammoth Decide, http:Hletmammothdecide org//press- release -re- town - council- meeting -on june -3 -2015/ https://www.facebook.com/letmammothdecide q - Lp