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HomeMy WebLinkAboutResolution 2016-183 N.C.S. 12/05/2016Resolution No. 2016-183 N.C.S. of the City of Petaluma, California ISSUING LEGISLATIVE SUBPOENAS TO WEBSITES ADVERTISING SHORT-TERM RESIDENTIAL RENTAL PROPERTIES LOCATED IN THE CITY OF PETALUMA TO INVESTIGATE AND OBTAIN COMPLIANCE WITH PETALUMA ZONING CODE ORDINANCE NO. 2300, SECTION 7.110 AND PETALUMA MUNICIPAL CODE CHAPTER 4.24. WHEREAS, California Revenue and Taxation Code section 7280 authorizes a city to levy a transient occupancy tax ("TOT") on the short-term privilege of occupying a room in a hotel, inn, tourist home or house, motel, or other lodging within the city limits unless the occupancy is for a period of more than thirty days; and WHEREAS, the Petaluma City Council enacted Petaluma Municipal Code chapter 4.24, entitled "Uniform Transient Occupancy Tax Law" (TOT); and WHEREAS, Petaluma Municipal Code chapter 4.24 requires hotel operators in the City to collect the TOT and to remit the proceeds to the City tax administrator on a monthly basis; and WHEREAS, in accordance with Petaluma Implementing Zoning Ordinance section 7.110(c)(4), short-term vacation rentals are subject to and must satisfy all applicable requirements of the City's transient occupancy tax; and WHEREAS, Petaluma Implementing Zoning Ordinance section 7.110 requires short- term vacation rentals to obtain a Short -Term Vacation Rental Permit and business license through the City of Petaluma; and WHEREAS, to date, the City has issued twenty-one Short -Term Vacation Rental permits; however, a review of websites which advertise vacation rentals in the City of Petaluma reveals that there may be approximately one hundred residences in the City which are operating as private short-term rentals; and WHEREAS, staff has attempted to identify all properties that are advertised for short- term rentals in the City, however, additional information is needed to consistently enforce Municipal Code chapter 4.24 and Implementing Zoning Ordinance section 7.110; and WHEREAS, California Government Code section 37104 authorizes a city council to issue legislative subpoenas "requiring attendance of witnesses or production of books or other documents for evidence or testimony in any action or proceeding pending before it"; and WHEREAS, the City Council finds that enforcement of the City's transient occupancy tax ordinance and short-term rental ordinance is a proper legislative concern; and WHEREAS, case law interpreting section 37104 confirms that matters relating to the investigation and enforcement of tax measures are proper legislative concerns; and Resolution No. 2016-183 N.C.S. Page 1 WHEREAS, a legislative subpoena pursuant to Government Code section 37104 may be authorized by a resolution of the city council, and issued by the mayor; and WHEREAS, if the subpoenaed party does not comply once served, Government Code section 37106 authorizes the mayor to submit a report to the Superior Court reporting the noncompliance and failure to appear. NOW, THEREFORE, the City Council of the City of Petaluma does resolve as follows: The above -recitals are hereby declared to be true and correct and adopted as findings of the City Council of the City of Petaluma; and 2. The Mayor is authorized and directed to issue the legislative subpoenas attached hereto as Exhibit A, directed to the Custodian of Records of Airbnb, Inc. and HomeAway.com, Inc., and commanding their appearance before the City Council and/or production of documents; and City staff is directed to serve both legislative subpoenas promptly in accordance with all legal requirements for service of subpoenas; and If any custodian of records fails to comply with a legislative subpoena authorized by this resolution, the Mayor is authorized and directed to submit a report of noncompliance to the Sonoma County Superior Court. Under the power and authority conferred upon this Council by the Charter of said City. REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Approtv6J'as to Council of the City of Petaluma at a Regular meeting on the 21ST day of November, orm•/ 2016, by the following vote: City Attorney AYES: Albertson, Barrett, Healy, Kearney, Vice Mayor King, Miller NOES: None ABSENT: Mayor Glass ABSTAIN: None a ATTEST: &a't_) �/�/v (�f� City Clerk Vice Mayor Resolution No. 2016-183 N.C.S. Page 2 To: Custodian of Records for AirBNB, Inc. 1. You are ordered to appear in person and produce true and correct copies of the documents specified in Attachment 1 at the Regular City Council Meeting for the City of Petaluma ("City") at 11 English Street, Petaluma, Ca 94952, on January 9, 2017 at 7:00 p.m. (or as soon thereafter as the matter may be heard). 2. You are not required to appear in person and produce the requested documents, if by Wednesday, January 4, 2017 you deliver the documents described in Attachment 2 to: City Clerk City of Petaluma 11 English Street Petaluma, CA 94952 707-778-4362 All documents produced to the City shall be accompanied by a declaration or affidavit warranting to their accuracy and completeness sufficient to meet the requirement of Code of Civil Procedure section 20200.430. The City will pay all reasonable documented costs associated with photocopying the requested documents. If costs exceed $100 please contact Jordan Green before copying. The City requires these records to assist it in evaluating its transient occupancy tax, codified in the City of Petaluma's Municipal Code section 4.24 et al. and compliance therewith. The documents requested are material and good cause exists for their production as described in Attachment 3. This subpoena is issued pursuant to California Government Code section 37104 and authorized by the City Council of Petaluma. Disobedience of this subpoena will be referred to the Superior Court for enforcement and is punishable as contempt pursuant to Government Code section 37109. Should you have any questions regarding this subpoena please contact: Jordan M. Green Assistant City Attorney for the City of Petaluma Resolution No. 2016-183 N.C.S. Page 8 LEGISLATIVE SUBPOENA IN THE MATTER OF FACTUAL INQUIRY) (Government Code §§ 37107 etseq RELATED TO INVESTIGATION OF ) CHAPTER 4.24 OF THE ) Date: January 9, 2017 CITY OF PETALUMA MUNICIPAL CODE) Time: 7:00 p.m. AND IMPLEMENTING ZONING ) Place: City of Petaluma City Hall ORDINANCE SECTION 7.110 ) 11 English Street Petaluma, CA 94952 To: Custodian of Records for AirBNB, Inc. 1. You are ordered to appear in person and produce true and correct copies of the documents specified in Attachment 1 at the Regular City Council Meeting for the City of Petaluma ("City") at 11 English Street, Petaluma, Ca 94952, on January 9, 2017 at 7:00 p.m. (or as soon thereafter as the matter may be heard). 2. You are not required to appear in person and produce the requested documents, if by Wednesday, January 4, 2017 you deliver the documents described in Attachment 2 to: City Clerk City of Petaluma 11 English Street Petaluma, CA 94952 707-778-4362 All documents produced to the City shall be accompanied by a declaration or affidavit warranting to their accuracy and completeness sufficient to meet the requirement of Code of Civil Procedure section 20200.430. The City will pay all reasonable documented costs associated with photocopying the requested documents. If costs exceed $100 please contact Jordan Green before copying. The City requires these records to assist it in evaluating its transient occupancy tax, codified in the City of Petaluma's Municipal Code section 4.24 et al. and compliance therewith. The documents requested are material and good cause exists for their production as described in Attachment 3. This subpoena is issued pursuant to California Government Code section 37104 and authorized by the City Council of Petaluma. Disobedience of this subpoena will be referred to the Superior Court for enforcement and is punishable as contempt pursuant to Government Code section 37109. Should you have any questions regarding this subpoena please contact: Jordan M. Green Assistant City Attorney for the City of Petaluma Resolution No. 2016-183 N.C.S. Page 8 City of Petaluma, City Attorney's Office 11 English Street Petaluma, CA 94952 (707) 778-4362 DATED this day of 2016. City Council, City of Petaluma Attest: B Yt);�6SBY David Glass Claire Cooper Mayor, City of Petaluma City Clerk, City of Petaluma APPROVED AS r By: rr FORM: Eric W. Danl CityAttorney City of Petaluma Resolution No. 2016-183 N.C.S. Page 9 ATTACHMENT 1 The following documents must be produced to the City: Request #1: Documents sufficient to identify all persons that through any website or property owned or controlled by Airbnb, Inc. (including, but not limited to, www.airbnb.com) have rented, or offered to rent, any HOTEL for a period of 30 consecutive days or less for dwelling, use, lodging, or sleeping purposes in the City of Petaluma, California during the period from October 1, 2015 through the present. "Hotel" means any structure or any portion of any structure which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location or other similar structure or portion thereof. Request #2: Documents sufficient to provide the following information for each person identified in response to Request #1: a. The name, physical address, email address, and any other contact information for each person. b. The url for each website which the person used to list a HOTEL. c. The address of the person's HOTEL that has been rented, or offered to rent, for dwelling, use, lodging or sleeping purposes in the City of Petaluma through any website or property owned or controlled by Airbnb, Inc. during the period from October 1, 2015 through the present ("PROPERTY" means the HOTEL(S) rented as described in this paragraph by the person). d. The dates and duration of stay for each time the PROPERTY was rented since October 1, 2015 to present. e. The rate charged and funds collected for each time the PROPERTY was rented since October 1, 2015 to present. f. The method of payment, including name of institution and type of account, for each time the PROPERTY was rented since October 1, 2015 to present. g. The name of any person who rented any PROPERTY from a person identified in Request #1, since October 1, 2015 to present as well as the renter's physical address, email address and other contact information. h. The total gross revenue generated by the person renting the PROPERTY as a result of that renting since October 1, 2015 to present. If documents do not exist sufficient to provide all of the information requested, the City requests that you produce electronically stored information that is sufficient to provide all of the information requested. This information must be provided in pdf, Microsoft Word or Microsoft Excel Format. If production in this manner is not feasible then it must be produced in a different format agreed to by the City. Resolution No. 2016-183 N.C.S. Page 10 ATTACHMENT 2 (1) Alternatively, and in lieu of the documents requested in Attachment 1, you may provide a list identifying all persons that through any website or property owned or controlled by Airbnb, Inc. (including, but not limited to, www.airbnb.com) have rented, or offered to rent, any HOTEL for a period of 30 consecutive days or less for dwelling, use, lodging or sleeping purposes in the City of Petaluma, California during the period from October 1, 2015 through the present. This list must also include the following regarding these rentals: a. The name, physical address, email address, and any other contact information for each person. b. The url for each website which the person used to list a HOTEL. c. The address of the HOTEL. d. The dates and duration of stay for each time the HOTEL was rented. e. The rate charged and funds collected for each time the HOTEL was rented. f. The method of payment, including name of institution and type of account, for each time the HOTEL was rented. g. The name of any person who rented any HOTEL, as well as their physical address, email address and any other contact information. h. The total gross revenue generated by the person renting the HOTEL. Resolution No. 2016-183 N.C.S. Page 11 ATTACHMENT 3 [Agenda Report and City Council Resolution] Resolution No. 2016-183 N.C.S. Page 12 IN THE MATTER OF FACTUAL INQUIRY RELATED TO INVESTIGATION OF CHAPTER 4.24 OF THE CITY OF PETALUMA MUNICIPAL CODE AND IMPLEMENTING ZONING ORDINANCE SECTION 7.110 Exhibit A to Resolution LEGISLATIVE SUBPOENA (Government Code §§ 37107 etseq) Date: January 9, 2017 Time: 7:00 p.m. Place: City of Petaluma City Hall 11 English Street Petaluma, CA 94952 To: Custodian of Records for HomeAway.com, Inc. You are ordered to appear in person and produce true and correct copies of the documents specified in Attachment 1 at the Regular City Council Meeting for the City of Petaluma ("City") at 11 English Street, Petaluma, Ca 94952, on January 9, 2017 at 7:00 p.m. (or as soon thereafter as the matter may be heard). 2. You are not required to appear in person and produce the requested documents, if by Wednesday, January 4, 2017 you deliver the documents described in Attachment 2 to: City Clerk City of Petaluma 11 English Street Petaluma, CA 94952 (707) 778-4362 3. All documents produced to the City shall be accompanied by a declaration or affidavit warranting to their accuracy and completeness sufficient to meet the requirement of Code of Civil Procedure section 20200.430. The City will pay all reasonable documented costs associated with photocopying the requested documents. If costs exceed $100 please contact Jordan Green before copying. The City requires these records to assist it in evaluating its transient occupancy tax, codified in the City of Petaluma's Municipal Code section 4.24 et al. and compliance therewith. The documents requested are material and good cause exists for their production as described in Attachment 3. This subpoena is issued pursuant to California Government Code section 37104 and authorized by the City Council of Petaluma. Disobedience of this subpoena will be referred to the Superior Court for enforcement and is punishable as contempt pursuant to Goverti hent Code section 37109. Should you have any questions regarding this subpoena please contact: Resolution No. 2016-183 N.C.S. Page 3 Jordan M. Green Assistant City Attorney for the City of Petaluma City of Petaluma, City Attorney's Office 11 English Street Petaluma, CA 94952 (707) 778-4362 DATED this day of , 016. City Council, City of Petaluma By;a David Glass Mayor, City of Petaluma APPROVED AS TO, FORM: x By: Eric W. Danly City Attorney City of Petaluma Attest: ME Claire Cooper City Clerk, City of Petaluma Resolution No. 2016-183 N.C.S. Page 4 ATTACHMENT 1 The following documents must be produced to the City: Request #1: Documents sufficient to identify all persons that through any website or property owned or controlled by HomeAway.com, Inc. (including, but not limited to, www.vrbo.com) have rented, or offered to rent, any HOTEL for a period of 30 consecutive days or less for dwelling, use, lodging, or sleeping purposes in the City of Petaluma, California during the period from October 1, 2015 through the present. "Hotel" means any structure or any portion of any structure which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location or other similar structure or portion thereof. (1) Request #2: Documents sufficient to provide the following information for each person identified in response to Request #1: a. The name, physical address, email address, and any other contact information for each person. b. The url for each website which the person used to list a HOTEL. c. The address of the person's HOTEL that has been rented, or offered to rent, for dwelling, use, lodging or sleeping purposes in the City of Petaluma through any website or property owned or controlled by HomeAway.com, Inc. during the period from October 1, 2015 through the present ("PROPERTY" means the HOTEL(S) rented as described in this paragraph by the person). d. The dates and duration of stay for each time the PROPERTY was rented since October 1, 2015 to present. e. The rate charged and funds collected for each time the PROPERTY was rented since October 1, 2015 to present. f. The method of payment, including name of institution and type of account, for each time the PROPERTY was rented since October 1, 2015 to present. g. The name of any person who rented any PROPERTY from a person identified in Request #1, since October 1, 2015 to present as well as the renter's physical address, email address and other contact information. h. The total gross revenue generated by the person renting the PROPERTY as a result of that renting since October 1, 2015 to present. (2) If documents do not exist sufficient to provide all of the information requested, the City requests that you produce electronically stored information that is sufficient to provide all of the information requested. This information must be provided in pdf, Microsoft Word or Microsoft Excel Format. If production in this manner is not feasible then it must be produced in a different format agreed to by the City. Resolution No. 2016-183 N.C.S. Page 5 ATTACHMENT 2 (3) Alternatively, and in lieu of the documents requested in Attachment 1, you may provide a list identifying all persons that through any website or property owned or controlled by HomeAway.com, Inc. (including, but not limited to, www.vrbo.com) have rented, or offered to rent, any HOTEL for a period of 30 consecutive days or less for dwelling, use, lodging or sleeping purposes in the City of Petaluma, California during the period from October 1, 2015 through the present. This list must also include the following regarding these rentals: a. The name, physical address, email address, and any other contact information for each person. b. The url for each website which the person used to list a HOTEL. c. The address of the HOTEL. d. The dates and duration of stay for each time the HOTEL was rented. e. The rate charged and funds collected for each time the HOTEL was rented. f. The method of payment, including name of institution and type of account, for each time the HOTEL was rented. g. The name of any person who rented any HOTEL, as well as their physical address, email address and any other contact information. h. The total gross revenue generated by the person renting the HOTEL. Resolution No. 2016-183 N.C.S. Page 6 ATTACHMENT 3 [Agenda Report and City Council Resolution] Resolution No. 2016-183 N.C.S. Page 7