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HomeMy WebLinkAboutOrdinance 2547 N.C.S. 09/14/20151 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 EFFECTIVE DATE ORDINANCE NO. 2547 N.C.S. OF ORDINANCE October 14, 2015 Introduced by Seconded by Mike Healy Dave King 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 Cily 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 Ordinance No. 2547 N.C.S. Page 1 1 WHEREAS, on November 18, 2014 the Planning Commission held a duly noticed public 2 hearing in accordance with IZO Section 25.0, to consider the revisions to the Amendments; and 3 4 WHEREAS, after the conclusion of said public hearing, the Planning Commission 5 adopted Resolution No. 2014 -40, finding the amendments consistent with the General Plan and 6 unanimously recommending that the City Council adopt the amendments; and 7 8 WHEREAS, on January 15, 2015, a public notice of the January 26, 2015 public hearing 9 before the City Council to consider the amendments was published in the Argus- Courier; and 10 11 WHEREAS, on January 26, 2015, the City Council of the City of Petaluma held a duly 12 noticed public hearing to consider the Amendments; and 13 14 WHEREAS, on June 1, 2015, the City Council of the City of Petaluma held a duly noticed 15 public hearing to consider the Amendments and continued that public hearing to the July 20, 16 2015 hearing; and 17 18 WHEREAS, the amendments are categorically exempt pursuant to Section 15305 (Minor 19 Alterations in Land Use Limitations) in that the amendments involve minor modifications to the 20 IZO and Smart Code that do not result in significant changes in allowable land use or density. 21 22 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PETALUMA AS 23 FOLLOWS: 24 25 Section 1. Findings. Based upon the Planning Commission's recommendations, the 26 staff report and presentation, and evidence presented during the public hearing, the 27 City Council of the City of Petaluma hereby finds: 28 29 a. The Amendments to allow short -term vacation rentals in Petaluma are 30 consistent with General Plan Policies 9.1,2,3 and 9 -P -18 because vacation 31 rentals are expected to expand tourism opportunities throughout the City, 32 support the vibrancy of the downtown by attracting new clientele, and by 33 expanding opportunities to collect transient occupancy fax revenues, 34 thereby contributing to the City of Petaluma's economic base, yielding net 35 fiscal benefits and strengthening the vitality and diversity of the community. 36 37 b. The Amendments would allow vacation rentals based on an established 38 permit process, limit non - hosted vacation rentals, provide adequate 39 enforcement provisions to ensure minimal impacts to surrounding residential 40 neighborhoods, and uphold the general welfare of Petaluma residents, which 41 furthers General Plan Guiding Principle 1 and Goal 11 -G -5. 42 43 c. The Amendments to the City's Implementing Zoning Code Sections 4.030, 44 7.110, and 27.020 and SmartCode Sections 3.1 and 9.10.010 contained in this 45 ordinance are in general conformity with the Petaluma General Plan 2025 46 and Central Petaluma Specific Plan. 47 48 Section 2. The Table of Contents of the Implementing Zoning Ordinance, Ordinance 49 No. 2300 N.C.S., is hereby amended to add a new section 7.110 to Chapter 7, Standards for 50 Specific Land Uses to read as follows: 51 Ordinance No. 2547 N.C.S. Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 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 I Lodging -Short -Term Vacation Rentals — I — I E07 I 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 I LODGING Ordinance No. 2547 N.C.S. Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 Lodging - Short -Term Vacation Rentals P 17 P 17 P 17 P 17 Se 1 i n 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 D ^� +ry Lodging - Short -Term Vacation P 17 I P 17 I 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. 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. Ordinance No. 2547 N.C.S. Page 4 1 2. Notice to Neighbors. Upon approval of a Short -Term Vacation Rental Permit, all 2 property owners within 100 feet of the permitted Short -Term Vacation Rental shall be 3 noticed in writing. Such notice shall include the location of the short term vacation 4 rental, number of rooms available for short term vacation rental, and contact 5 information for the locally - available manager. 6 7 C. Requirements Applicable to All Short Term Vacation Rentals, 8 1. Guest Manual. The Host shall provide a written manual to guests providing the local 9 manager's contact information, the Performance Standards set forth in Chapter 21 of 10 the Implementing Zoning Ordinance, parking limitations, and other helpful 11 information to minimize conflict within the neighborhood. 12 2. Signs. On -site signage is prohibited. 13 3. Business License. All short -term vacation rentals require a valid Business License 14 issued in accordance with Chapter 6.01 of the Petaluma Municipal Code. 15 4. Transit Occupancy Tax. Short -term vacation rentals are subject to and must satisfy all 16 applicable requirements of the City's transit occupancy tax. 17 5. Permit Number. In every advertisement for the Short Term Vacation Rental, the 18 Permitee shall include the City issued Permit Number, 19 D. Requirements Applicable To Hosted Short Term Vacation Rentals. A Short Term Vacation 20 Rental in which the permittee occupies the property with the guests and is subject to the 21 following requirements: 22 1. Limit on Maximum Number of Occupants. No more than 2 overnight occupants per 23 bedroom plus 2 additional occupants are permitted. 24 a. No more than two bedrooms in the dwelling may be furnished for 25 compensation. (See section 7.100 for Bed and Breakfast requirements.) 26 b. If the entire dwelling is an accessory /secondary unit, it may be furnished for 27 compensation as a Hosted Short Term Vacation Rental, provided that the 28 guests constitute one party, which may be evidenced through a single rental 29 agreement for the entire dwelling. 30 2. Manager. The permittee must be available at all times and be able to respond to 31 complaints within 1 hour. 32 E. Permit Requirements Applicable To Non - Hosted Short Term Vacation Rentals. A Short Term 33 Vacation Rental in which the permittee does not occupy the property with the guests and is 34 subject to the following requirements 35 1. Limits on Occupants. Ordinance No. 2547 N.C.S. Page 5 1 a. The entire dwelling may be furnished for compensation, provided that the 2 guests constitute one party, which may be evidenced through a single rental 3 agreement for the entire dwelling. 4 b. No more than 2 overnight occupants per bedroom plus 2 additional 5 occupants are permitted. 6 2. Limitation on Days. The dwelling as a non - hosted vacation rental may be furnished 7 for compensation for no more than 90 days during any calendar year. 8 3. Manager. A manager located within 45 miles of the City must be available at all 9 times and be able to respond to complaints within 1 hour. 10 F. Short-Term Vacation Rentals in Planned Unit Developments. A permit issued for a Short Term 11 Vacation Rental in a Planned Unit Development must comply with Section 19.050 of the 12 Implement Zoning Ordinance. 13 G. Dispute Resolution. Upon receipt of three or more complaints in a calendar year about a 14 Short Term Vacation Rental, with the consent of the parties involved, the City may refer the 15 parties to a third party mediator. The cost shall be shared equally by the parties involved, 16 unless the parties agree otherwise in writing. 17 H. Application Process. The application process for a Short Term Vacation Rental Permit shall 18 be as follows; 19 1. Application for Permit. Application for a Short -Term Vacation Rental Permit shall be 20 made to the Director on a form provided by the City. 21 2. Fee. The fee that applies to process applications for Short -Term Vacation Rental 22 Permits shall be set by City Council resolution. 23 3. Parking. The application must show that the applicant can provide; 24 a. Parking. On -site parking for the existing residential use shall be provided as 25 required in Table 11.1 for Dwelling Single Family or Multiple Household, as 26 applicable. The Planning Manager, in his or her sole discretion, may give 27 credit for up to two uncovered spaces on the abutting public street if there is 28 legal non - conforming parking on the site; or 29 b. Parking Exception. Applicants that are unable to meet the parking 30 requirements in Section H.3.a. due to existing legal non - conforming parking 31 and /or site constraints, may obtain a Parking Exception upon approval of a 32 Minor Conditional Use Permit as prescribed by Section 24.030. Applications 33 for a Parking Exception must provide documentation demonstrating that 34 adequate on- street parking is available to accommodate the proposed short 35 term vacation rental and the other existing uses on the site. 36 4. Safety. All short term vacation rentals must provide smoke detectors, CO2 detectors, 37 be adequately heated, and otherwise satisfy all applicable requirements of the 38 California Building Standards Code as in effect in the City. Ordinance No. 2547 N.C.S. Page 6 2 5. Duration. Short -Term Vacation Rental Permits shall be valid through the end of the 3 calendar in which they are issued. All Short -Term Vacation Rental Permits shall expire 4 on December 31, unless a renewal application is approved. 5 6. Permit Approval, A Short -Term Vacation Rental Permit application shall be approved 6 if all applicable requirements are satisfied; otherwise, the application shall be denied. 7 I. Renewal of Permit. 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 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. 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. L. Enforcement. The City may seek remedies for any violations o f f his 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: Ordinance No. 2547 N.C.S. Page 7 1 2 Bed and Breakfast Inn (B &B). A residential structure with one household in permanent residence, 3 with three or more bedrooms furnished for compensation for overnight lodging, where meals 4 may be provided subject to applicable Health Department regulations. Does not include room 5 rental, which is separately defined (see "Rooming, Lodging, Boarding House, or Short Term 6 Vacation Rental "). 7 8 Section 9. Chapter 28, Glossary of the Implementing Zoning Ordinance, Ordinance 9 No. 2300 N.C.S., definition of "Rooming or Boarding, Accessory" is amended to read as follows: 10 11 Rooming or Boarding, Accessory. A portion of a dwelling where lodging and boarding are 12 provided for no more than 3 persons for a- period of 30 days or longer. 13 14 Section 10. Chapter 28, Glossary of the Implementing Zoning Ordinance, Ordinance 15 No. 2300 N.C.S., definition of "Rooming, Lodging or Boarding Housing" is amended to read as 16 follows: 17 18 Rooming, Lodging or Boarding House. A dwelling or part of a dwelling where lodging is furnished 19 for compensation to three or more persons living independently from each other for a period of 20 30 days or longer. Meals may also be included. 21 22 Section 11. Chapter 28, Glossary of the Implementing Zoning Ordinance, Ordinance 23 No. 2300 N.C.S., definition of "Short -Term Vacation Rental" is added to read as follows: 24 25 Short -Term Vacation Rental - A dwelling, part of a dwelling, or dwelling as an accessory or 26 secondary unit furnished for compensation for a period of less than 30 days. Meals may also be 27 included. Does not include room rental for 30 days or more, which is separately defined (see 28 "Rooming, Lodging, or Boarding House "). 29 30 Section 12. Section 3, Building Function Standards, Section 3.10.030, Permit 31 Requirements for Allowable Uses, Table 3. 1, Allowed Building Functions and Permit Requirements, 32 Smart Code, Ordinance No. 2470 N.C.S., is hereby amended to add short -term vacation rental 33 as a Permitted Use as follows: 34 Lodging Short -term vacation rental P5 P5 P2,5 P2,5 35 36 Section 13. Section 3, Building Function Standards, Section 3.10.030, Permit 37 Requirements for Allowable Uses, Footnote 5 to Table 3.1, Allowed Building Functions and Permit 38 Requirements, Smart Code, Ordinance No. 2470 N.C.S., is hereby added as follows: 39 40 Short -term vacation rental permit, business license and transit occupancy tax certificate 41 required (see section 7.110 of Implementing Zoning Ordinance) 42 43 Section 14. Section 9, Glossary, Section 9.10.020, Definitions of Specialized Terms and 44 Phrases, Bed and Breakfast Inn (B &B), Smart Code, Ordinance No. 2470 N.C.S is hereby 45 amended to read as follows: 46 Ordinance No. 2547 N.C.S. Page 8 1 Bed and Breakfast Inn (B &B). A residential structure with one household in permanent residence, 2 with three or more bedrooms rented for overnight lodging, where meals may be provided 3 subject to applicable Health Department regulations. Does not include room rental, which is 4 separately defined (see "Rooming, Lodging, Boarding House, or Short Term Vacation Rental "), 5 6 Section 15. Section 9, Glossary, Section 9.10.020, Definitions of Specialized Terms and 7 Phrases, Short -Term Vacation Rental, Smart Code, Ordinance No. 2470 N.C.S is hereby added to 8 read as follows: 9 10 Short-Term Vacation Rental - A dwelling, part of a dwelling, or dwelling as an accessory or 11 secondary unit furnished for compensation for a period of less than 30 days; Meals may also be 12 included. Does not include room rental for 30 days or more, which is separately defined (see 13 "Rooming, Lodging, or Boarding House "). 14 15 Section 16. Except as amended herein, the City of Petaluma SmartCode, Ordinance 16 No, 2470 N.C.S. and the City of Petaluma Implementing Zoning Ordinance, Ordinance No. 2300 17 N.C.S., remains unchanged and in full force and effect. 18 19 Section 17. Program Evaluation. No later than April 2, 2018, the City Manager shall 20 cause to be initiated a study to determine the effectiveness of this ordinance in regulating the 21 operation of short term vacation rentals in the City of Petaluma, the administrative effectiveness 22 of the short -term vacation rental program, and whether a need to regulate short term vacation 23 rentals continues to exist. Specific areas of inquiry shall be determined by the City Manager, but 24 shall be sufficient to address these broad areas of concern. The study, shall be presented to the 25 Planning Commission not later than August 14, 2018, and shall include recommendations to 26 terminate, extend, or modify and extend the program. The study shall be accompanied by 27 proposed legislation, if the recommendation to the Planning Commission is to extend, or modify 28 and extend, the effective date of the program. Not later than October 15, 2018, the study, 29 together with the recommendations of the Planning Commission, and any accompanying 30 legislation, shall be presented to the City Council for its consideration. 31 32 Section 18. Severability. If any section, subsection, sentence, clause, phrase or word 33 of this ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a 34 court of competent jurisdiction or preempted by state legislation, such decision or legislation 35 shall not affect the validity of the remaining portions of this ordinance. The City Council of the 36 City of Petaluma hereby declares that it would have passed and adopted this ordinance and 37 each and all provisions thereof irrespective of the fact that any one or more of said provisions be 38 declared unconstitutional, unlawful or otherwise invalid. 39 40 Section 19. Effective Date. This ordinance shall become effective thirty (30) days after 41 the date of its adoption by the Petaluma City Council, 42 43 Section 20. Posting /Publishing of Notice. The City Clerk is hereby directed to publish or 44 post this ordinance or a synopsis for the period and in the manner provided by the City Charter 45 and other applicable law. 46 47 INTRODUCED and ordered posted /published this 20th day of July, 2015. 48 49 ADOPTED this 14th day of September, 2015 by the following vote: 50 Ayes: Barrett, Healy, Kearney, King, Vice Mayor Miller 51 Noes: Albertson 52 Abstain: None 53 Absent: Mayor Glass Ordinance No. 2547 N.C.S. Page 9 1 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 ATTEST: Kathy Miller, Vice Mayor APPROVED AS TO FORM: � I Claire Cooper, City Clerk Eric W. Danly, C Attorney Ordinance No. 2547 N.C.S. Page 10