Administrative Report DISCUSSION ITEM TO:
CITY COUNCIL
FROM:
Robert Clark, City Manager Matthew Summers, City Attorney
DATE REPORT PREPARED:
December 14, 2015
MEETING DATE:
January 12, 2016
SUBJECT:
Short term vacation rentals policies and enforcement.
Recommendations 1. Review the draft ordinance establishing a licensing requirement for transient rentals and related resolutions, determine under what circumstances and in what zones transient rentals will be permitted (if any), and refer the draft ordinance to the Planning Commission for advisory review, and 2. Review enforcement mechanisms, including the use of legislative subpoenas, and provide direction to the City Manager and City Attorney regarding enforcement, and adopt the Resolution establishing a registration requirement. Executive Summary At the December 6, 2015 meeting the City Council considered the report and recommendations of the focus group on transient rentals, and passed a motion directing staff to prepare and bring back a report regarding adoption and issuance of subpoena legislation, directing staff to prepare an ordinance for basic/very flexible licensing, and lift the current unconditional suspension of enforcement effective January 30, 2016. The focus group report and the motion deal with two general questions which are discussed in more detail in this report: 1. Under what circumstances will the City Council permit transient rentals? 2. What actions will be taken to prevent/abate transient rentals which do not conform to whatever regulations are adopted? Discussion The City Attorney has prepared the following draft documents which can be modified to address
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the key issues as determined by the City Council: Attachment A: A proposed resolution, which could be adopted on January 12, 2016, that requires registration of existing transient rentals and promises that we will not enforce the code against registered existing transient rentals, but states explicitly that registration will not guarantee a license. Attachment B: A draft ordinance, requiring review by the Planning Commission before the Council may adopt it, that is a basic licensing framework for transient rentals; The Ordinance is drafted to allow for transient rentals, with a license, which is not a CUP, but without specifying which zones or what specific standards will apply. Instead, it is structured so that those specific standards will go in the draft resolution adopting regulatory standards and the fee and fine amounts. Attachment C: A draft resolution, adopting an application fee, a basic fine, and provides a shell for adopting operational standards and regulations governing transient rentals, once the Council decides what operational standards, time limits, zone restrictions, and other rules will apply. Attachment D: A draft legislative subpoena for records of Airbnb, Inc. Attachment E: A draft legislative subpoena for records of HomeAway, Inc. and VRBO Alternative Option (Requested by Councilmember Clapp) - Eliminate Zoning Rules Regulating Land Uses. If the City Council so desires, it could adopt an ordinance eliminating zoning rules governing which land uses are allowed in the various areas of the City. If the City Council so desires, this could be accomplished by adopting an ordinance deleting Article 2 of Chapter 2 of Title 10 in its entirety. This action would require completion and evaluation of a full Environmental Impact Report under the California Environmental Quality Act. Licensing Transient Rentals Most cities which are permitting transient rentals are doing so by issuing a revocable and nontransferable license to the owner of a property rather than granting a land use entitlement to a parcel of land. The licensing approach is more flexible and provides the potential for more City control over the activity. The draft licensing ordinance and related resolution (Attachments B and C) prepared by the City Attorney provide a framework to assure safety and to enforce "good neighbor policies" where transient rentals are permitted. It also addresses the need for a business license and to collect transient occupancy tax. Section 3 of the resolution contains a list of policies that the City Council may want to develop further and include in the final Resolution. The City Council did not decide where transient rentals will be permitted, or if they will be permitted at all. A decision on this issue can be built into Section 3 of Attachment C. Some of the options discussed were: •
Do not permit any transient rentals in residential zones.
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• • • • • •
Do not permit unhosted transient rentals in residential zones. Permit hosted transient rentals in all zones during "legacy events" when there is greater demand for lodging (recommended by the majority of the focus group). Permit hosted and unhosted transient rentals in the Village Mixed Use Zone only. Permit only one transient rental of any duration within a 30 day period. Do not allow transient rental of apartments. Do not allow transient rental of "compliance units".
Since this ordinance would amend the zoning code it is subject to an advisory review by the Planning Commission in a public hearing prior to being considered by the City Council. The moratorium on issuing CUPs for transient rentals expires on March 23, 2016 unless extended before that time. The moratorium can be extended for a maximum of one year, to March 23, 2017. Enforcement Attachment A, if adopted, requires all existing transient rentals to register with the City by January 30, 2016. Transient rentals that do not register will be subject to immediate enforcement beginning on January 31, 2016. Enforcement of those which do register will be suspended until such time as an Ordinance regulating transient rentals becomes effective. If the Council decides not to permit transient rentals at all, then enforcement may begin against registered transient rentals upon a declaration by the Council to that effect. Those which are permitted by the Ordinance and Resolution and which obtain a license will be permitted. Registration is not a gurantee that a license will be approved. The Ojai Municipal Code provides that any violation of City ordinance is either an infraction or a misdemeanor which are enforceable through a court process. Alternatively, pursuant to the Government Code, the City has adopted ordinances empowering City officials to issue administrative citations and to issue administrative orders. The process for issuing administrative citations is the most simple. When an enforcement officer determines that a violation has occurred, he or she may issue a citation which carries a fine established by City Council resolution. Fines for zoning violations are normally $50 for the first violation and $100 per infraction for multiple violations. Attachment A recommended that a $500 per day fine be established for unpermitted transient rentals. (We are not permitted to set the fine higher than the amount set in the Municipal Code for misdemeanors.) Fines can be appealed to a hearing officer and eventually Superior Court. A compliance order gives the violator a specified time in which to become compliant. If they fail to comply a hearing is set before a Hearing Officer. The hearing officer has considerable discretion and may (but is not required to) impose fines of up to $1,000 per day. This process is more cumbersome than the administrative citation, and the outcome is less certain. It may be an appropriate process for some circumstances, but we feel that the administrative citation is more likely to be used in most cases. It is now being suggested that we also see legislative subpoena authority in order to obtain
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records of rentals from the internet booking services. Fiscal Impact It is hard to assess the amount of time and effort that will be necessary to initially implement this new process, and then to maintain it on an ongoing basis. It will impact the workloads of several departments including Finance, Community Development and City Attorney. The staffing in all departments has been kept very lean in order to allow for funding of the long neglectied capital improvement fund. Therefore, this along with other new procedures could require that we add resources, or that we slow down the pace of other work.
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Approved for forwarding City Manager's Office
Submitted by Robert Clark, City Manager
Attachments: A — Draft Resolution Requiring Licensing B — Draft Ordinance Pertaining to Transient Rentals C — Draft Resolution Establishing Regulations and Fees D — Draft Legislative Subpoena-Airbnb E — Draft Legislative Subpoena-HomeAway and VRBO F — November 10, 2015 Administrative Report
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CITY OF OJAI RESOLUTION NO. 15A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OJAI ESTABLISHING A REGISTRATION REQUIREMENT FOR EXISTING TRANSIENT RENTALS IN ANTICIPATION OF ADOPTING A TRANSIENT RENTAL LICENSURE REQUIREMENT WHEREAS, the City Council is considering adopting an ordinance adding a new Chapter 17 to Title 10 of the Ojai Municipal Code regulating transient rentals of property or a portion thereof for less than 30 days, and establishing a licensure requirement for transient rentals; and WHEREAS, the proposed text of Chapter 17 of Title 10 of the Ojai Municipal Code provides that transient rentals existing as of January 12, 2016 may only apply for a transient rental license if registered with the City by January 30, 2016; and WHEREAS, the City Council intends to adopt a registration requirement for existing transient rentals, requiring registration with the City by January 30, 2016, to serve as limiting tool on future approvals of transient rental licenses should the City Council approve the proposed ordinance adding Chapter 17 to Title 10 of the Ojai Municipal Code, establishing a licensure requirement for transient rentals; and WHEREAS, on December 6, 2015, the City Council directed that the existing suspension of enforcement of any Ojai Municipal Code provisions governing transient rentals would cease effective January 30, 2016. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ojai that: SECTION 1. Registration of existing transient rentals is required if owners intend to apply for a transient rental license if the City Council approves the proposed ordinance adding Chapter 17 to Title 10 of the Ojai Municipal Code, regulating and establishing a licensure requirement for transient rentals. An owner of a transient rental that existed, with or without legal authorization (a) from the City, on or before January 12, 2016, must register the transient rental with the City by January 30, 2016, on a form to be made available by the City. The owner must provide, as part of the registration, the property address, a description of the portion of the property previously used as a transient rental, contact information for the owner, and the number of days the property was rented as a transient rental from January 1, 2015 to December 31, 2015. There shall not be any fee charged for this registration. Registering an existing transient rental on or before January 30, 2016 shall (b) establish eligibility to apply for a transient rental license for an existing transient rental, if a 4 -5
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license requirement is adopted by the City Council, but shall not guarantee approval of the application for a transient rental license. An applicant for a transient rental license for a registered existing transient rental must meet all requirements of the Ojai Municipal Code that govern transient rentals and any regulations promulgated thereunder. An existing transient rental that is registered under the provisions of this (c) resolution will not be subject to any fines or other enforcement actions under the Ojai Municipal Code's provisions governing transient rentals, once the suspension of enforcement is lifted on January 30, 2016, from the date of registration until the earlier of the following events: (1) if the owner of the existing transient rental applies for a transient rental license, the date of approval or denial of a transient rental license for the transient rental, if the City Council approves an ordinance regulating transient rentals; (2) 30 days after the effective date of an ordinance regulating transient rentals; or (3) upon a declaration by the Council that it will not adopt an ordinance regulating transient rentals. SECTION 2. Environmental Determination The City Council finds that the adoption of a transient rental registration requirement is exempt from the California Environmental Quality Act (CEQA) for the following reasons: Under CEQA Guidelines Section 15301, CEQA review is not required because (a) this resolution adopts a registration requirement for existing transient rentals in existing structures, but does not itself approve any transient rental licenses or otherwise result in any approval or permitted action. No new development or construction is authorized by this resolution. As a result, nothing in this resolution permits a non-negligible expansion of use beyond that level of use already existing as this ordinance does not directly permit any change in land uses. (b) Under CEQA Guidelines Section 15061(b)(3), CEQA review is not required because there is no possibility that the adoption of this resolution imposing operational standards and other regulations for transient rentals may have a significant effect upon the environment. Under CEQA Guidelines Section 15061(b)(3), a project is exempt when there is no possibility that it may have a significant effect on the environment. This resolution adopts a registration requirement for existing transient rentals in existing structures, but does not itself approve any transient rental licenses or otherwise result in any approval or permitted action. SECTION 3. Effective Date. This Resolution shall be in full force and effect as of the date of its adoption.
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PASSED, APPROVED and ADOPTED this AYES: NOES: ABSENT: ABSTAIN:
nd day of
by the following vote:
CITY OF OJAI, CALIFORNIA
Paul Blatz, Mayor
ATTEST:
Rhonda K. Basore, City Clerk
APPROVED AS TO FORM:
Matthew Summers, City Attorney
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CITY OF OJAI ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF OJAI, CALIFORNIA ADDING CHAPTER 17 TO TITLE 10 OF THE OJAI MUNICIPAL CODE, RELATED TO LICENSURE AND REGULATION OF TRANSIENT RENTALS OF PROPERTY FOR LESS THAN 30 DAYS
WHEREAS, the City Council of the City of Ojai (the "City Council") intends to: Preserve and maintain the character of the city, it neighborhoods and communities a. as described in the Land Use Element of the Ojai General Plan which states "the residents of Ojai share a common goal of ensuring that the existing 'sense of the community' is maintained..." and that Ojai "successfully blends the best of small town lifestyles and a tourist economy;" Support commercial interests of locally owned and operated businesses associated b. with the tourist economy; Eliminate to the extent possible the purchase or renovation of single family c. residential properties, multifamily residential properties, and second unit residential properties for sole use as short term vacation rentals; Reverse the current and accelerating trend of converting existing affordable d. housing units into short term vacation rentals; Ensure that all transient rentals facilities, no matter what type engaged in e. commercial activity, contribute to support of the community though payment of transient occupancy tax; and Ensure that any transient rental meets basic health, safety, and ADA standards f. appropriate to the type of facility engaged in this commercial activity. WHEREAS, the Ojai Municipal Code currently provides that rentals of property or a portion thereof for less than 30 days is prohibited, unless approved via a conditional use permit and a determination of similar use for that proposed rental; WHEREAS, on March 24, 2015 the City Council adopted, and on April 28, 2015, extended a moratorium on approving a conditional use permit and a determination of similar use for any proposed transient rental, effective through March 23, 2016;
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WHEREAS, the City Council desires to add a new Chapter 17 to Title 10 of the Ojai Municipal Code, related to licensure and regulation of transient rentals of property for less than 30 days, to provide that transient rentals of less than 30 days are allowed solely after a property owner applies for and receives a transient rental license from the City if authorized by and under the condition that the property owner abide by the rules and regulations for transient rentals contained in Chapter 17 of Title 10 and in any City Council resolutions adopted under the authority in that chapter; WHEREAS, on [date], the Planning Commission held a lawfully-noticed public hearing on this proposed amendment to the Ojai Municipal Code, and made the following recommendation: [ WHREAS, on [date], the City Council held a lawfully-noticed public hearing on this proposed amendment to the Ojai Municipal Code, and received the report and recommendation of the Planning Commission regarding this ordinance. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF OJAI CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. A new Chapter 17 is hereby added to Title 10 of the Ojai Municipal Code to read as follows: Chapter 17 TRANSIENT RENTAL LICENSURE AND REGULATION Section 10-17.01. Purpose. The purpose of this chapter is to establish a licensing process and appropriate (a) regulations and standards for private short term, transient rentals of single-family and multiple family dwellings as an alternative to the other visitor-serving accommodations currently existing in the City; to minimize the negative secondary effects of short term rental use on surrounding residential neighborhoods; and, to ensure that the City's existing residential character is maintained, particularly in the neighborhoods in which any short term rental use occurs. This chapter is not intended to provide any property owner with the right or (b) privilege to violate any private leases, agreements, conditions, covenants or restrictions applicable to the owner's property that may prohibit use of such owner's residential property for transient rental purposes, as defined in this chapter. (c)
This chapter is not intended to regulate rentals of property for more than 30 days.
Section 10-17.02. Definitions. (a) Legal Dwelling Unit. A room or group of internally connected rooms that have sleeping, cooking, eating, and sanitation facilities, but not more than one (1) kitchen, which constitute an independent housekeeping unit, occupied by or intended for one (1) household on a 4-9
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long-term basis, and that is lawfully permitted under all applicable City of Ojai ordinances and regulations. A second unit legalized under the second unit compliance program created by Ojai Municipal Code section 10-2.1709, subdivision (f) is not included within the definition of legal dwelling unit for this chapter. (b) Owner. Any person who (1) owns the property on which the transient rental is located, (2) is legally domiciled on the property, and (3) takes responsibility for the management or maintenance of the property and transient rental by applying for and receiving a transient rental license. Transient Rental. Renting out of one or more rooms in a legal dwelling unit in a (c) single-family residence on a temporary basis, for 30 days or less, in exchange for any form of compensation. (d) Transient Rental License. An annual license issued under the provisions of this chapter that allows the use of a privately owned single family residential legal dwelling unit as a transient rental pursuant to the provisions of this chapter. Section 10-17.03. Transient Rentals Allowed Solely by License. (a) An owner must obtain a transient rental license from the City before renting or offering for rent any transient rental. (b) A transient rental license is not a grant of a conditional use permit or similar entitlement that runs with the land. Section 10-17.04. Application Requirements for License. (a) The owner must submit an application for a transient rental license on an application form provided by the City. The owner must sign the application and an accompanying statement agreeing to abide by all rules and regulations governing transient rentals, including the provisions of this chapter and any additional regulations established by the City Council under the authority provided by this chapter. (b) The transient rental license application shall be accompanied by an application fee as established by Resolution of the City Council. (c) An owner may only apply for one transient rental license, at the property where the owner maintains a legal domicile. (d) The applicant shall provide notice in writing of an application for a transient rental license to all property owners within 300 feet of the proposed transient rental, on a notice form provided by the City within 10 days of submitting the application.
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The owner, as a condition of applying for a transient rental license, must consent (e) to an inspection of the proposed transient rental by the City, if required by the Community Development Director as part of the application. Section 10-17.05. Standards Governing Transient Rental License Approval. A transient rental license may only be approved by the Community Development (a) Director if the owner meets all requirements of this chapter, including: (1) the proposed transient rental is located in a zone designated by the City Council by resolution as eligible for issuance of a transient rental license; (2) the proposed transient rental is a legal dwelling unit and a single-family residence; (3) the owner owns the proposed transient rental and is legally domiciled at the proposed transient rental; (4) there are no open and unresolved code enforcement cases pending against the owner or the property; (5) the owner obtains a business license certificate in compliance with Chapter 1 of Title 6 of the Ojai Municipal Code; (6) the owner obtains a transient occupancy registration certificate in compliance with Article 4 of Chapter 1 of Title 8 of the Ojai Municipal Code; (7) the owner provides proof of liability insurance coverage for the transient rental, sufficient to provide coverage in an amount determined by the Community Development Director as necessary to cover the liability risks associated with the transient rental; (8) for license renewals, the owner must have previously operated the transient rental in compliance with any of the terms, conditions, or provisions of this Chapter or any relevant provision of the Ojai Municipal Code, state law, or any rule or regulation promulgated under this chapter, have secured a business license certificate, and have remitted all transient occupancy tax owed under Article 4 of Chapter 1 of Title 8 of the Ojai Municipal Code for the previous year's operation of the transient rental. (b)
Only one transient rental license per parcel and per owner may be issued.
An approved transient rental license is valid for one year from the date of (c) approval. An owner intending to continue renting or offering to rent a transient rental after the expiration of an existing transient rental license must apply for and obtain a new transient rental
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license before the expiration of the existing license. Renewal is not automatic and requires a new application and approval by the Community Development Director. (d) An approved transient rental license is not transferrable. In the event a licensed transient rental is sold, the license automatically expires and the new owner must apply for and obtain a new transient rental license in compliance with this chapter. (e) Any transient rental that existed, with or without legal authorization from the City, on or before January 12, 2016, is only eligible to apply for a transient rental license under this chapter if the owner of the transient rental registered the transient rental with the City, on a form provided by the City, by January 30, 2016. There shall not be any fee charged for this registration. (1) The owner must provide, as part of the registration, the property address, a description of the portion of the property previously used as a transient rental, contact information for the owner, and the number of days the property was rented as a transient rental from January 1, 2015 to December 31, 2015. (2) Registering an existing transient rental on or before January 30, 2016 shall establish eligibility to apply for a transient rental license for an existing transient rental, but shall not guarantee approval of the application for a transient rental license. An applicant for a transient rental license for an existing transient rental must meet all requirements of this chapter and any regulations promulgated thereunder. Additionally, the owner of a registered, existing transient rental must apply for a transient rental license under this chapter within 30 days of the effective date of the ordinance adding this chapter to the Ojai Municipal Code. (3) Any owner who fails to register a transient rental that existed, with or without legal authorization from the City, on or before January 12, 2016, or who provides false information on a registration application, is not eligible to apply for a transient rental license for that property for two years from the effective date of the ordinance adding this chapter to the Ojai Municipal Code. Section 10-17.06. Regulations Governing Transient Rentals. The City Council may adopt regulations governing transient rentals by (a) Resolution, including, but not limited to, operational standards, limits on allowable zones, limits on allowable time periods for transient rentals, limits on over-concentration of transient rentals, occupancy limits, parking requirements, renter and neighbor notification requirements, inspection requirements, advertising restrictions, neighbor compliant hotline provisions, good neighbor requirements, and insurance requirements.
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(b) All persons shall comply with all regulations of transient rentals imposed by the City Council by resolution under this section, together with the provisions of this chapter. (c) The City shall provide a copy of all regulations imposed by the City Council under this section to an owner applying for a transient rental license as part of the transient rental license application form and shall post the regulations on the City website. Section 10-17.07. Violations, License Revocation, and Enforcement. (a) Any person who uses, or allows the use of, any property in violation of the provisions in this Chapter or the regulations promulgated thereunder is guilty of a misdemeanor for each day in which a violation exists. Violations are punishable as misdemeanors under Section 1-2.02 of the Ojai Municipal Code. Any person who uses, or allows the use of, any property in violation of the (b) provisions in this Chapter or the regulations promulgated thereunder is also subject to the administrative remedies provisions of Chapter 6 of Title 1 of the Ojai Municipal Code for each day in which a violation exists. The amount of the fine for violations of the provisions in this Chapter or the regulations promulgated thereunder shall be set by the City Council by resolution. The City Manager may suspend or revoke the transient rental license for a (c) transient rental upon finding that (1) the owner has failed to comply with any of the terms, conditions, or provisions of this chapter or any relevant provision of the Ojai Municipal Code, state law, or any regulation promulgated by the City Council under this chapter; or (2) the transient rental has been operated in a manner that adversely affects the public health or welfare or the safety of the neighborhood in which the transient rental is located. The appeal and hearing provisions of Article 2 of Chapter 6 of Title 1 shall apply to any revocation or suspension of a license. Any person who fails to obtain a transient rental license before renting or offering (d) a transient rental for rent or who fails to pay any fee or charge provided in this chapter within the time required, shall pay a penalty in the amounts established by the City Council by resolution. Such penalty may also include interest from the date on which the fee or charge became due and payable to the City until the date of payment. The City may recover its costs to enforce this chapter and any regulation (e) promulgated by the City Council under this chapter via the provisions of Section 1-2.05 of the Ojai Municipal Code. (f) The remedies provided for in this section are in addition to, and not in lieu of, all other lawful remedies, criminal or civil, which may be pursued by the City to address any violation of this code or any other public nuisance. Section 10-17.08. Requirements not exclusive. 4 -13
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(a) The requirements of this chapter shall be in addition to any license, permit, or fee required under any other provision of the Ojai Municipal Code. The approval of any license under this chapter shall not relieve any person of the obligation to comply with all other provisions of the Ojai Municipal Code pertaining to the use and occupancy of property on which a transient rental is located.
SECTION 2. Environmental Determination. The City Council determines that the following findings and conclusions reflect the independent judgment of the City Council. The City Council finds that the adoption of the following amendments to the Ojai Municipal Code is exempt from the California Environmental Quality Act (CEQA) for the following reasons: Under CEQA Guidelines Section 15301, CEQA review is not required because (a) this ordinance adopts changes to the Ojai Municipal Code that govern transient rental uses in existing residential structures, prohibiting some existing transient rentals, establishing a license requirement for all transient rentals, and establishing regulations for transient rentals. This ordinance adopts a regulatory scheme by which the City may approve licenses for transient rentals, but does not itself approve any transient rental licenses. No new development or construction is authorized by this ordinance. As a result, nothing in this ordinance permits a nonnegligible expansion of use beyond that level of use already existing as this ordinance does not directly permit any change in land uses. Under CEQA Guidelines Section 15061(b)(3), CEQA review is not required (b) because there is no possibility that these amendments to the provisions of the Ojai Municipal Code governing govern transient rental uses in existing residential structures, prohibiting some existing transient rentals, establishing a license requirement for all transient rentals, and establishing regulations for transient rentals may have a significant effect upon the environment. Under CEQA Guidelines Section 15061(b)(3), a project is exempt when there is no possibility that it may have a significant effect on the environment. This ordinance adopts a regulatory scheme by which the City may approve licenses for transient rentals, but does not itself approve any transient rental licenses. No new development or construction is authorized by this ordinance. The proposed amendments do not directly authorize any new construction or development of new structures to be used as transient rentals. SECTION 3. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the final decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council declares that it would have adopted this Ordinance, and each section, subsection, sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more sections, subsections, phrases or portions might be declared invalid or unconstitutional.
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SECTION 4. The City Clerk shall cause this Ordinance to be published once, within fifteen (15) calendar days after its passage, in the Ojai Valley News, a newspaper of general circulation, printed, published and circulated in the City, and shall cause a copy of this Ordinance and its certification, together with proof of publication, to be entered in the Book of Ordinances of the City. SECTION 5. This Ordinance shall become effective on the thirty-first (31st) day after its passage. CITY OF OJAI, CALIFORNIA
By Paul Blatz, Mayor ATTEST:
Rhonda K. Basore, City Clerk
APPROVED AS TO FORM:
Matthew Summers, City Attorney
STATE OF CALIFORNIA COUNTY OF VENTURA CITY OF OJAI
) ) )
I, Rhonda K. Basore, City Clerk of the City of Ojai do hereby certify that the foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Ojai held on by the and adopted at a regular meeting held on following vote:
AYES: NOES:
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ABSTAIN: ABSENT:
Rhonda K. Basore City Clerk for the City of Ojai
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CITY OF OJAI RESOLUTION NO. 15A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OJAI AMENDING THE MASTER FEE AND FINE SCHEDULES FOR MUNICIPAL CODE VIOLATIONS AND COSTS RELATED TO TRANSIENT RENTALS AND REGULATIONS FOR TRANSIENT RENTALS UNDER CHAPTER 17 OF TITLE 10 OF THE OJAI MUNICIPAL CODE WHEREAS, the City Council is considering adopting an ordinance adding a new Chapter 17 to Title 10 of the Ojai Municipal Code, regulating transient rentals of property or a portion thereof for less than 30 days; WHEREAS, the proposed text of Chapter 17 of Title 10 of the Ojai Municipal Code provides that the City Council may adopt regulations for transient rentals by resolution; WHEREAS, Section 1-6.103 of the Ojai Municipal Code authorizes enforcement officers of the City to issue administrative citations for violations of the Municipal Code; and WHEREAS, Section 1-6.105 provides that the City Council shall establish a schedule of fines by Resolution; and WHEREAS, the current schedule of fines does not specify fines for violations of the proposed Chapter 17 of Title 10 of the Ojai Municipal Code related to transient rentals, as provided for by the proposed Section 10-17.07 of the Ojai Municipal Code; and WHEREAS, the updated schedule does not specify an application fee for transient rental licenses as provided for by the proposed Section 10-17.04 of the Ojai Municipal Code; and WHEREAS, the City Council desires to amend the current schedule of fines and fees to adopt fees and fines, respectively, under the authority provided by each of the above-cited sections of the Municipal Code, to be imposed should the City Council approve the proposed ordinance adding Chapter 17 to Title 10 of the Ojai Municipal Code. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ojai that:
SECTION 1. Amendment of the City of Ojai schedule of fines for "Municipal Code Violations." The following fines are hereby added to the schedule of fines for Municipal Code Violations:
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Code Section 10-17.07
Description Misdemeanor Violation of any provision of $500 Chapter 17 of Title 10 of the Ojai Municipal Code, relating to transient rentals, per day
SECTION 2. Amendment of the City of Ojai Fee Schedule. The following fees are hereby added to the City of Ojai Fee Schedule: Code Section 10-17.04
Description Transient rental license application fee
Fee $250
SECTION 3. Transient Rental Regulations and Operational Standards. Section 10-17.06, subsection (a) of the Ojai Municipal Code provides that the City Council may adopt regulations governing transient rentals by Resolution. Under this authority, the City Council hereby adopts the following regulations governing transient rentals:
• Limits On Allowable Zones • Operational Standards, Including Hosted v. Unhosted Rules • Limits On Allowable Time Periods For Transient Rentals • Limits On Over-Concentration Of Transient Rentals • Occupancy Limits By Bedroom And Number Of Persons • Parking Requirements • Renter And Neighbor Notification Requirements • Inspection Requirements • Advertising Restrictions • Neighbor Compliant Hotline Provisions • Good Neighbor Requirements • Insurance Requirements SECTION 4. Environmental Determination The City Council finds that the setting or revising of these fees is exempt under Section 15273 (a) of the California Environment Quality Act ("CEQA") Guidelines as CEQA does not apply to charges by public agencies for the propose of meeting operational expenses. Additionally, the City Council finds that the adoption of these fees and fines is not a project under CEQA because adopting this resolution will not cause a "direct physical change in the environment" or a "reasonably foreseeable indirect physical change in the environment" as this resolution adopts fees and fines related to the processing of applications for transient rental licenses and remediation of violations of the Ojai Municipal Code governing transient rentals. 4 -18
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This resolution does not authorize any physical changes to the environment. Accordingly, the City finds that these amendments to the schedule of fees and fines do not qualify as a "project" under CEQA Guidelines Section 15378(b)(5) because they constitute administrative activities of government that do not directly or indirectly result in any physical changes in the environment. Additionally, the City Council finds that finds that the adoption of regulations governing transient rentals is exempt from the California Environmental Quality Act (CEQA) for the following reasons: Under CEQA Guidelines Section 15301, CEQA review is not required because (a) this resolution adopts operational standards and other regulations for transient rentals in existing structures, but does not itself approve any transient rental licenses. No new development or construction is authorized by this resolution. As a result, nothing in this resolution permits a nonnegligible expansion of use beyond that level of use already existing as this ordinance does not directly permit any change in land uses. Under CEQA Guidelines Section 15061(b)(3), CEQA review is not required (b) because there is no possibility that the adoption of this resolution imposing operational standards and other regulations for transient rentals may have a significant effect upon the environment. Under CEQA Guidelines Section 15061(b)(3), a project is exempt when there is no possibility that it may have a significant effect on the environment. This resolution adopts operational standards and other regulations for transient rentals, part of the City's regulatory scheme by which the City may approve licenses for transient rentals, but does not itself approve any transient rental licenses. No new development or construction is authorized by this resolution. SECTION 4. Effective Date. This Resolution shall be in full force and effect as of the effective date of the City Council's ordinance adding Chapter 17 to Title 10 of the Ojai Municipal Code. PASSED, APPROVED and ADOPTED this _nd day of AYES: NOES: ABSENT: ABSTAIN:
by the following vote:
CITY OF OJAI, CALIFORNIA
Paul Blatz, Mayor
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ATTEST:
Rhonda K. Basore, City Clerk
APPROVED AS TO FORM:
Matthew Summers, City Attorney
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Attachment C Page 4 of 4
CITY OF OJAI RESOLUTION NO. 15A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OJAI ISSUING A SUBPOENA FOR CERTAIN RECORDS RELATED TO THE RENTAL OF ROOMS THROUGH THE ONLINE RENTAL BOOKING SERVICE AIRBNB WHEREAS, Government Code Section 37104 et seq. authorizes the City Council to issue a legislative subpoena "requiring attendance of witnesses or production of books or other documents for evidence or testimony in any action or proceeding before it"; and WHEREAS, the City of Ojai Municipal Code Section 10-2.402, Table 2.2, and Section 10-2.503, Table 2-4 prohibit transient, short term rental uses in the City, unless permitted via a conditional use permit and a determination of similar use under Ojai Municipal Code section 10-2.303; and WHEREAS, the City of Ojai Municipal Code Section 8-1.410 requires that lawful transient and short term rentals collect and remit to the City a Transient Occupancy Tax ("TOT") equal to 10% of the rental rate; and WHEREAS, City staff have reviewed the Airbnb, Inc. website, and noted multiple listings advertising short term rentals of properties within the City which appear to be operating without any legal authorization from the City and/or without remitting to the City any TOT; and WHEREAS, the City Council finds that it is reasonably likely that Airbnb have records of short term rental transactions in the City which will assist the City in enforcing its Code and lawfully collecting taxes owed to the City; and WHEREAS, the City Council hereby determines that probable cause exists to issue a legislative subpoena for any and all records in the possession of both Airbnb relating to short term rentals in the City; and WHEREAS, this legislative subpoena serves a lawful legislative purpose as it will allow the City Council to determine how much transient occupancy tax is owned by each owner or operator of a transient rental and otherwise enforce the City of Ojai Municipal Code, particularly as the City Council is considering adopting an ordinance adding a new Chapter 17 to Title 10 of the Ojai Municipal Code regulating transient rentals of property or a portion thereof for less than 30 days, and establishing a licensure requirement for transient rentals. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ojai that: SECTION 1. The City Council determines that the foregoing recitals are true and correct and adopts the recitals as findings in support of this resolution.
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Attachment D Page 1 of 3
SECTION 2. The City Council hereby issues a legislative subpoena commanding Airbnb to appear and/or produce certified copies of the following records covering the time period from January 2015 to December 2015, inclusive, on or before January 30, 2016, at the address indicated in the subpoena: a. A complete listing of all properties listed for short term rental on the Airbnb website located within the City of Ojai; b. The username associated with each physical address, and that username's email address, and other contact information; c. The dates and duration of stay for each time the structure or property associated with that username was rented; d. The rate charged and funds collected for each time the structure or property was rented; e. The method of payment including the name of institution and type of account, for each time the structure was rented; f. The name of any person who rented any such structure or property, as well as their physical address, email address and other contact information; g. The total gross revenue generated by the person renting the structure or property. All records produced pursuant shall be confidential to the extent provided for in California Government Code Section 6254(i). SECTION 3. The legislative subpoena issued by this Resolution shall be in a form drafted by the City Attorney. A draft subpoena form is attached to this Resolution as Exhibit A. The legislative subpoena shall be signed by the Mayor and certified by the City Clerk. A copy of this resolution shall be attached to such subpoena and shall be incorporated by reference into the subpoena. The subpoena shall be served upon the Operator in the same manner as a subpoena in a civil action. SECTION 4. Failure to comply with the subpoena shall be subject to the remedies set forth in Government Code Section 37104 et seq. or otherwise provided by law. SECTION 5. The Mayor, City Clerk and the City Attorney are authorized to take all actions necessary to issue, serve and enforce the subpoena. SECTION 6. Effective Date. This Resolution shall be in full force and effect as of the date of its adoption.
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Attachment D Page 2 of 3
PASSED, APPROVED and ADOPTED this AYES: NOES: ABSENT: ABSTAIN:
nd day of
by the following vote:
CITY OF OJAI, CALIFORNIA
Paul Blatz, Mayor
ATTEST:
Rhonda K. Basore, City Clerk
APPROVED AS TO FORM:
Matthew Summers, City Attorney
4-23
Attachment D Page 3 of 3
EXHIBIT "A"
4-24
Exhibit A Page 1 of 3
In re: Airbnb, Inc.
TO:
) ) ) ) ) ) ) ) ) ) )
LEGISLATIVE SUBPOENA (Government Code §37104.)
Date: February 9, 2016 Time: 7:00 P.M. Place: Council Chambers 401 S. Ventura Street Ojai, CA 93023
Airbnb, Inc. Attn: Belinda Johnson, General Counsel 888 Brannan Street San Francisco, CA 94103
1. On January 12, 2016, the City Council of the City of Ojai, California adopted Resolution No. 15(incorporated by reference into this subpoena). Accordingly, you are hereby ordered to produce certified copies of the Records identified in Section 3 below as follows: (A) You are ordered to appear in person and to produce true and correct copies of the records which you have in your possession described in Section 3 ("Records") at the City of Ojai, City Council meeting on February 9, 2016 at 7:00 P.M. (or as soon thereafter as the matter may be heard), to be held at Council Chambers at City Hall, 401 S. Ventura Street Ojai, CA 93023. (B) Your personal attendance and the production of documents are required by this subpoena, unless alternative compliance occurs as set forth in Section 2. 2. You are not required to appear at the City Council meeting on the date and time set forth above if, prior to February 9, 2016, you produce true and correct copies of the Records to Robert Clark, City Manager, City of Ojai, 401 S. Ventura Street Ojai, CA 93023. All copies of documents shall be accompanied by a declaration or affidavit warranting to their accuracy and completeness. A declaration or affidavit meeting the requirements of Code of Civil Procedure section 2020.430 shall be sufficient. The City of Ojai will pay all reasonable fees associated with copying the Records, if approved in writing in advance by the City Manager. The Records to be produced are as follows. These Records pertain to the transient or 3. short term rentals for less than 30 days of properties located within the City of Ojai for the time period from January 2015 to December 2015, inclusive: (a)
A complete listing of all properties listed for rental on the Airbnb website located within the City of Ojai;
(b)
The username associated with each physical address, and that username's email address, and other contact information;
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Exhibit A Page 2 of 3
(c)
The dates and duration of stay for each time the structure or property associated with that username was rented;
(d)
The rate charged and funds collected for each time the structure or property was rented;
(e)
The method of payment including the name of institution and type of account, for each time the structure was rented;
(f)
The name of any person who rented any such structure or property, as well as their physical address, email address and other contact information;
(g)
The total gross revenue generated by the person renting the structure or property.
4. This legislative subpoena relates to the City's enforcement of its Code, and collection of transient occupancy tax. This legislative subpoena is authorized by Government Code section 37104 et seq. Failure to comply with this subpoena is subject to the penalties and procedures set forth in Government Code section 37104 et seq. and otherwise provided by law. CITY COUNCIL OF THE CITY OF OJAI
By: Paul Blatz Mayor (seal)
ATTEST:
Rhonda K. Basore, City Clerk
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Exhibit A Page 3 of 3
CITY OF OJAI RESOLUTION NO. 15A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OJAI ISSUING A SUBPOENA FOR CERTAIN RECORDS RELATED TO THE RENTAL OF ROOMS THROUGH THE ONLINE RENTAL BOOKING SERVICES HOMEAWAY AND VRBO WHEREAS, Government Code Section 37104 et seq. authorizes the City Council to issue a legislative subpoena "requiring attendance of witnesses or production of books or other documents for evidence or testimony in any action or proceeding before it"; and WHEREAS, the City of Ojai Municipal Code Section 10-2.402, Table 2.2, and Section 10-2.503, Table 2-4 prohibit transient, short term rental uses in the City, unless permitted via a conditional use permit and a determination of similar use under Ojai Municipal Code section 10-2.303; and WHEREAS, the City of Ojai Municipal Code Section 8-1.410 requires that lawful transient and short term rentals collect and remit to the City a Transient Occupancy Tax ("TOT") equal to 10% of the rental rate; and WHEREAS, City staff have reviewed the HomeAway and VRBO websites, and noted multiple listings advertising short term rentals of properties within the City which appear to be operating without any legal authorization from the City and/or without remitting to the City any TOT; and WHEREAS, the City Council finds that it is reasonably likely that HomeAway and VRBO have records of short term rental transactions in the City which will assist the City in enforcing its Code and lawfully collecting taxes owed to the City; and WHEREAS, the City Council hereby determines that probable cause exists to issue a legislative subpoena for any and all records in the possession of both HomeAway and VRBO relating to short term rentals in the City; and WHEREAS, this legislative subpoena serves a lawful legislative purpose as it will allow the City Council to determine how much transient occupancy tax is owned by each owner or operator of a transient rental and otherwise enforce the City of Ojai Municipal Code, particularly as the City Council is considering adopting an ordinance adding a new Chapter 17 to Title 10 of the Ojai Municipal Code regulating transient rentals of property or a portion thereof for less than 30 days, and establishing a licensure requirement for transient rentals. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ojai that: SECTION 1. The City Council determines that the foregoing recitals are true and correct and adopts the recitals as findings in support of this resolution. 4-27
Attachment E Page 1 of 3
SECTION 2. The City Council hereby issues a legislative subpoena commanding HomeAway, to appear and/or produce certified copies of the following records covering the time period from January 2015 to December 2015, inclusive, on or before January 30, 2016, at the address indicated in the subpoena: a. A complete listing of all properties listed for short term rental on the HomeAway or VRBO websites located within the City of Ojai; b. The username associated with each physical address, and that username's email address, and other contact information; c. The dates and duration of stay for each time the structure or property associated with that username was rented; d. The rate charged and funds collected for each time the structure or property was rented; e. The method of payment including the name of institution and type of account, for each time the structure was rented; f. The name of any person who rented any such structure or property, as well as their physical address, email address and other contact information; g. The total gross revenue generated by the person renting the structure or property. All records produced pursuant shall be confidential to the extent provided for in California Government Code Section 6254(i). SECTION 3. The legislative subpoena issued by this Resolution shall be in a form drafted by the City Attorney. A draft subpoena form is attached to this Resolution as Exhibit A. The legislative subpoena shall be signed by the Mayor and certified by the City Clerk. A copy of this resolution shall be attached to such subpoena and shall be incorporated by reference into the subpoena. The subpoena shall be served upon the Operator in the same manner as a subpoena in a civil action. SECTION 4. Failure to comply with the subpoena shall be subject to the remedies set forth in Government Code Section 37104 et seq. or otherwise provided by law. SECTION 5. The Mayor, City Clerk and the City Attorney are authorized to take all actions necessary to issue, serve and enforce the subpoena. SECTION 6. Effective Date. This Resolution shall be in full force and effect as of the date of its adoption.
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Attachment E Page 2 of 3
PASSED, APPROVED and ADOPTED this AYES: NOES: ABSENT: ABSTAIN:
nd day of
by the following vote:
CITY OF OJAI, CALIFORNIA
Paul Blatz, Mayor
ATTEST:
Rhonda K. Basore, City Clerk
APPROVED AS TO FORM:
Matthew Summers, City Attorney
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Attachment E Page 3 of 3
EXHIBIT "A"
4-30
Exhibit A Page 1 of 3
In re: HomeAway
TO:
) ) ) ) ) ) ) ) ) ) )
LEGISLATIVE SUBPOENA (Government Code §37104.)
Date: February 9, 2016 Time: 7:00 P.M. Place: Council Chambers 401 S. Ventura Street Ojai, CA 93023
HomeAway, Inc. Attn: Melissa Pearson Fruge, Vice President and General Counsel 1011 W. 5th Street, Suite 300 Austin, TX 78703
On January 12, 2016, the City Council of the City of Ojai, California adopted Resolution 1. (incorporated by reference into this subpoena). Accordingly, you are hereby No. 15ordered to produce certified copies of the Records identified in Section 3 below as follows: (A) You are ordered to appear in person and to produce true and correct copies of the records which you have in your possession described in Section 3 ("Records") at the City of Ojai, City Council meeting on February 9, 2016 at 7:00 P.M. (or as soon thereafter as the matter may be heard), to be held at Council Chambers at City Hall, 401 S. Ventura Street Ojai, CA 93023. Your personal attendance and the production of documents are required by this (B) subpoena, unless alternative compliance occurs as set forth in Section 2. 2. You are not required to appear at the City Council meeting on the date and time set forth above if, prior to February 9, 2016, you produce true and correct copies of the Records to Robert Clark, City Manager, City of Ojai, 401 S. Ventura Street Ojai, CA 93023. All copies of documents shall be accompanied by a declaration or affidavit warranting to their accuracy and completeness. A declaration or affidavit meeting the requirements of Code of Civil Procedure section 2020.430 shall be sufficient. The City of Ojai will pay all reasonable fees associated with copying the Records, if approved in writing in advance by the City Manager. 3. The Records to be produced are as follows. These Records pertain to the transient or short term rentals for less than 30 days of properties located within the City of Ojai for the time period from January 2015 to December 2015, inclusive: (a)
A complete listing of all properties listed for rental on the HomeAway or VRBO websites located within the City of Ojai;
(b)
The username associated with each physical address, and that username's email address, and other contact information;
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Exhibit A Page 2 of 3
(c)
The dates and duration of stay for each time the structure or property associated with that usemame was rented;
(d)
The rate charged and funds collected for each time the structure or property was rented;
(e)
The method of payment including the name of institution and type of account, for each time the structure was rented;
(f)
The name of any person who rented any such structure or property, as well as their physical address, email address and other contact information;
(g)
The total gross revenue generated by the person renting the structure or property.
4. This legislative subpoena relates to the City's enforcement of its Code, and collection of transient occupancy tax. This legislative subpoena is authorized by Government Code section 37104 et seq. Failure to comply with this subpoena is subject to the penalties and procedures set forth in Government Code section 37104 et seq. and otherwise provided by law. CITY COUNCIL OF THE CITY OF OJAI
By: Paul Blatz Mayor (seal)
ATTEST:
Rhonda K. Basore, City Clerk
4-32
Exhibit A Page 3 of 3
Administrative Report DISCUSSION ITEM TO:
CITY COUNCIL
FROM:
Robert Clark, City Manager
DATE REPORT PREPARED:
October 28, 2015
MEETING DATE:
November 10, 2015
SUBJECT:
Short-Term Vacation Rental Focus Group Report and Recommendation.
Recommendations Consider the report and recommendations of the focus group on transient rentals and provide direction to the City Manager and/or City Attorney as deemed appropriate. Executive Summary At the January 13, 2015 meeting the City Council approved a request by Councilmembers Clapp and Weirick to work with stakeholders to gather information about transient rentals. At the March 24, 2015 meeting the City Council adopted an urgency ordinance establishing a 45 day moratorium on the issuance of conditional use permits for transient rentals in residential zones. The moratorium was later extended to March 23, 2016. The purpose of the moratorium was to allow time to develop policies on transient rentals. After meeting with the stakeholders in a focus group format several times, they recommended that a professional facilitator be retained to conduct a community workshop in order to obtain broader input. The workshop was held on July 2, 2015. Since that time the focus group has met and issued a report and recommendation for consideration by the City Council. Two documents conveying the recommendations of the focus group are attached, along with a report from the facilitator summarizing the community workshop. If the recommendations are acceptable, or acceptable with modifications, the next step would be to direct the City Attorney to prepare a draft ordinance for consideration by the City Council at a noticed public hearing.
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Attachment F Page 1 of 34
Fiscal Impact The cost of drafting a proposed ordinance and noticing a public hearing can be accommodated within the approved budget.
Approved for forwarding City Manager's Office
Submitted by Robert Clark, City Manager
Attachments: A — Short-Term Vacation Rental Focus Group Report and Recommendation B — Components of proposed ordinance regulating short term vacation rentals C — City Council Workshop on Short-term Rental Housing: Report and Notes, 2 July, 2015
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Attachment F Page 2 of 34
SHORT-TERM VACATION RENTAL FOCUS GROUP REPORT AND RECOMMENDATION
FOCUS GROUP The Vacation Rental Focus Group was established to gain feedback from a wide variety of Ojai residents about the consequences of and the approach to regulation of Short Term Vacation rentals within the city limits of Ojai. There was a total of eight participants and two Council members; Bill Weirick and Betsy Clapp. This group was comprised of two vacation rental operators, one affordable housing advocate, one real estate agent, one real estate agent specializing in long term rentals, one Ojai raised young married professional, one citizen at large, one business owner and one hotel owner/operator. Three out of eight participants are renters.
CONSEQUENCES OF SHORT TERM UN-HOSTED VACATION RENTALS Change in City Character The peace, quiet and safety of our neighborhoods is very important to Ojai residents. When rentals are occupied by people with no stake in, or connection with the community or neighborhood, they have little incentive to be "good neighbors". As a consequence, there is, and will continue to be disruption of the peace and quiet in neighborhoods, disruption of the residential character of neighborhoods, parking problems and a loss of the sense of safety residents enjoy with respect to their children and their property. The likelihood of renter misconduct is exacerbated by the fact that they are "on vacation", making them more prone to disruptive conduct, including driving under the influence. In addition to its quality of life, Ojai's prosperity has always been fueled by its attractive "small town" and "artsy" feel. The loss of available housing stock to investors buying homes for vacation rentals erodes this "feeling" by reducing community cohesion and denying many of our residents a place to live.
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Attachment F Page 3 of 34
Loss of resident participation in philanthropic organizations, Ojai Park and Recreation programs as well as community events, like Mexican Fiesta and Fourth of July Parade are inevitable consequences of un-hosted short term vacation rentals. In addition, there are fewer residents enrolling children in both our public and private schools. Availability of Health Care could be effected by the loss of full-time residents. There is a shortage of doctors. Currently, most specialists, due to low demand, are only in town part of each week. If the number of un-hosted vacation rentals is allowed continue to grow there will be little incentive for general practioners to establish a full time practice here. In addition, emergency services could become over-burdened and understaffed. Loss of community cohesion also affects how well the City government meets residents' needs. Effective government requires community involvement. As the number of homes being used as vacation rentals increases, the number of people actively participating in local government decreases. Loss of rental housing inventory, affordable or otherwise. The increase in houses being converted to vacation rentals has resulted in the loss of long-term rental housing. This conversion is resulting in sky rocketing rents and evictions of long term-renters throughout our community. The vast majority of Ojai residents and virtually all of its visitors want to preserve Ojai's small town character. In addition, such preservation is required by the City's General Plan.
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Attachment F Page 4 of 34
RECOMMENDATION
PROHIBIT UNHOSTED SHORT-TERM VACATION RENTALS Prohibiting un-hosted rentals will prevent investors from buying properties with the intention of renting them out and will restore to the "rental inventory" those units no longer useable as short term rentals. Assuming that real estate agents disclose the prohibition, and/or buyers will otherwise be aware of its likelihood, such sales will stop. Homes will then be sold to people who are going to live in them, thereby avoiding the problems outlined above. Also, the prices of homes will no longer be driven up by investors. ALLOW HOSTED SHORT-TERM VACATION RENTALS At the start of the focus group, several members favored a ban on all "short term vacation rentals". After extensive discussion, a clear distinction was drawn between the impact of hosted versus un-hosted vacation rentals. Based on the differences, this proposal permits only hosted rentals. The time limits imposed on such rentals is intended to make short term rentals less profitable. A wide variety of judicial decisions, at the Federal and State level, have upheld local governments' authority to prohibit vacation rentals. The following proposal has no effect on an owner's right to rent out all or part of a property for more than 30 days at which point landlord tenant law applies. ENFORCEMENT The ability to enforce any vacation rental ordinance has been suggested as a reason to not adopt an ordinance."Unenforceable" generally means that a governing body does not have sufficient resources to carry out effective enforcement activities. The sufficiency of resources, of course depends on how much "enforcement activity" is required. That in turn depends on how much "voluntary compliance" there is. Ordinances are generally drafted with the goal of encouraging voluntary compliance. Where, as here, compliance is ensured by removing the financial incentives of prohibited rentals, the need for active enforcement is greatly reduced.
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Attachment F Page 5 of 34
Without an ordinance on the books, there is nothing with which a person can "voluntarily comply". Enforcement happens in two ways: 1.Voluntary compliance (includes following the rules AND not renting short term at all. 2. Fines and penalties (administrative, civil and criminal) sufficient to deter violations. PROPOSAL SUPPORTS VOLUNTARY COMPLIANCE BY: 1.Making owners financially "responsible" for renters' behavior. 2. Informing owners of potential exposure to ADA and FHA regulations and penalties ($75,000 for first offense; $150,000 for second violations) should preclude most, if not all violations. 3. Requiring owners to post license number on hosting platforms. (unlicensed won't be able to use the sites thereby discouraging rental activity). 4. Licensing requirements (up to code; insurance; inspection, etc.) will deter many from becoming "absentee hosts". 5. Making enforcement activities public (assuming City Council authorizes fines with deterrence value) 6. Time limits make short term rentals less profitable than long term.
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Attachment F Page 6 of 34
SUGGESTED TERMS AND CONDITIONS FOR ORDINANCE 1. Ordinance applies to all legal dwelling units in all zones within the city limits of Ojai, including any and all units used as a short term vacation rental prior to the adoption of this ordinance. Units made legal through issuance of nonconforming permits under the city's second unit compliance program do not qualify. Definitions: "dwelling unit" means one or more rooms designed, occupied or intended for occupancy as separate living quarters. No apartments or condos will be considered a dwelling under the conditions of this ordinance. "legal" is defined as a dwelling that is fully permitted under all applicable City of Ojai ordinances. Dwellings permitted under the second unit compliance program will be considered legal within the context of this ordinance.
2. Short Term Vacation rentals shall be allowed only under the following conditions: a. Vacation rentals must be hosted. A vacation rental shall only occur in the domicile of the owner. Renting tenants may not host vacation rentals. Corporations or trusts may not host vacation rentals. b. Rental shall be for 30 days or less c. One vacation rental license per parcel allowed (multiple transient rental units/parcel not allowed) d. Must have a valid City business license e. Proper insurance coverage for vacation rental use f. Dwelling must be permitted under Ojai Municipal Code requirements. g. Limited to specific calendar days defined by specific legacy events per year. Initial examples include the Music Festival, the Tennis Tournament, the Film Festival and the OSA Tour. h. Complies with all regulations set forth in this ordinance i. If any of these provisions conflicts with any provision of the City zoning ordinances, the terms of this ordinance shall prevail.
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Attachment F Page 7 of 34
3. Prohibitions: a. Use is limited to dwelling purposes only, i.e. Weddings, Events, etc. are not permitted uses. b. No hosting platform or person shall undertake, maintain, authorize, aid, facilitate or advertise any rental activity that does not comply with this ordinance. c. No advertising on the exterior of the primary unit and any accessory dwelling or anywhere on the property. d. Guests exceeding 2 guests per room prohibited.
4. Hosting Responsibilities: a. Must collect and remit TOT b. Takes financial responsibility for any damages caused by the renters and actively prevents refers from becoming a nuisance to neighbors. c. Complies with all applicable laws, including ADA (Americans with Disabilities Act) and FHA (Federal Housing Authority), where applicable and health, safety, building and fire protection. d. Obtains and maintains current City business license. e. Operates in compliance with all permit conditions established by City Council via resolution. Because Short-term Vacation regulations are a moving target, resolutions allow for a more rapid response to changes needed in the ordinance.
5. Licensing requirements: a. Proof of insurance and signed indemnification statement required, all advertising must include license # (require on Internet ads, contracts, all marketing. Insurance requirements TBD) b. Legally permitted dwelling c. In cases of any fines or penalties for ADA or FHA violations, applicants must show proof of satisfaction along with proof that the necessary modifications to the property have been made.
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Attachment F Page 8 of 34
d. License applications include requirement of a submitted schematic floor plan, annual inspection to confirm, # of bedrooms, parking adequacy, health and safety compliance, low flow appliances, etc. (License fees should be scaled to fund cost of inspections and processing) d. Owner will post license in the rental unit
6. Enforcement: a. Penalties for violations to be determined by Council. b. Any interested person may seek an injunction or other relief to prevent and remedy violations of the ordinance. The prevailing party in such an action shall be entitled to recover reasonable costs and attorney's fees. (This removes argument of inability to enforce the ordinance.) c. Fines and license pays for enforcement d. Hot line e. Compliance officer will conduct routine review of one line VR platforms as well as responding to citizen complaints. f. Violations subject to revocation of permit/license g. Violations are punishable with all applicable fines established by City Council. h.Any legal or other costs incurred by the City due to violations or enforce will be paid by the violating party
6. Regulations: a. The City Council may enact through regulations which may include but not limited to permit conditions, reporting requirements, inspection frequencies, enforcement procedures, advertising restrictions, disclosure requirements or i insurance requirements. No person shall fail to comply with any such regulations. b. Good neighbor policies will be stipulated, augmenting (4), to be agreed to as a condition of getting a license and required to be part of every contract with a transient renter. Licenses can be revoked for violations of good neighbor policies.
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Attachment F Page 9 of 34
7. Fees: City Council may establish by resolution all fees and charges as may be necessary to effectuate the purpose of this ordinance. 8. Hosting platform requirements TBD Note: This is an example of changing conditions which argues for details of licensing requirements and enforcement protocol to be stipulated by resolution. The following is the draft language in proposed Senate Bill 593 The California Constitution authorizes a county or city to make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws. Existing law also authorizes a city, county, or city and county to impose a transient occupancy tax upon occupancies of lodgings of no more than 30 days. This bill would require an operator of a hosting platform, as defined, to report specified information quarterly to the city, county, or city and county. The bill would authorize a city, county, or city and county, by ordinance, to opt out from receiving reports and to subsequently opt back in, with 90 days' advance notice of that ordinance to the operator of a hosting platform and to impose a fine or penalty on an operator that fails to provide the report, as specified. The bill would prohibit an operator of a hosting platform from facilitating the rental of a residential unit offered for occupancy for tourist or transient use, if such a use of that residential unit, or the offering of that residential unit for such a use, is prohibited by an ordinance of the city, county, or city and county in which that residential unit is located. The bill would authorize a city, county, or city and county, by ordinance, to establish a fine or penalty on an operator of a hosting platform, as specified, for a knowing violation of this provision. The bill would authorize a city, county, or city and county to require an operator of a hosting platform to collect and remit applicable local transient occupancy tax. This bill would authorize a city, county, or city and county to adopt an ordinance that would require a transient residential hosting platform, as defined, to report specified information quarterly to the city, county, or city and county, and to establish, by ordinance, a fine or penalty on a transient residential hosting platform for failure to provide the report. The bill would make the information in the report confidential and require that it not be disclosed. The bill would authorize the city, county, or city and county receiving the report to use the report solely for transient occupancy tax and zoning administration. The bill would also authorize a city, county, or city and county to require a transient residential hosting platform to collect and remit applicable transient occupancy tax. The bill, where a specified ordinance has been adopted, would prohibit a transient residential hosting platform from facilitating
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Attachment F Page 10 of 34
occupancy of a residential unit offered for tourist or transient use in violation of any ordinance, regulation, or law of the city, county, or city and county, and would authorize a city, county, or city and county, by ordinance, to establish a civil fine or penalty on an operator of a transient residential hosting platform for a knowing violation of this provision. This bill would also require the operator of a transient residential hosting platform to disclose specified information regarding insurance coverage in the transient residential hosting platform agreement with an offeror of a residential unit. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect.
ADDITIONAL RECOMMENDATIONS 1. Have contained in "Host" packet, as well as on the City website, regulations for establishing a Bed and Breakfast. In what zones they are allowed in, etc. 2. Review Bed and Breakfast requirements to make sure they are easily understood and easy to navigate so as to encourage legal opportunities for someone to enter the hospitality industry. 3. Work with Ventura County to encourage a similar ordinance in the County. 4. Explore ways to make the development of "boutique" hotels easily understood and easy to navigate.
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Attachment F Page 11 of 34
This page is intentionally blank.
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Attachment F Page 12 of 34
Components of proposed ordinance regulating short term vacation rentals
Whereas it is the intention of the City Council to ... preserve and maintain the character of the city, it neighborhoods and communities as described in the Land Use Element of the Ojai General Plan which states "the residents of Ojai share a common goal of ensuring that the existing 'sense of the community' is maintained...." and that Ojai "successfully blends the best of small town lifestyles and a tourist economy." ...support commercial interests of locally owned and operated businesses associated with the tourist economy ...eliminate to the extent possible the purchase or renovation of single family residential properties, multi-family residential properties, and second unit residential properties for sole use as short term vacation rentals ... reverse the current and accelerating trend of converting existing affordable housing units into short term vacation rentals ...ensure that all transient rentals facilities, no matter of what type engaged in this commercial activity, contribute to support of the community though payment of transient occupancy tax ..ensure that any transient rental meets basic health, safety, and ADA standards appropriate to the type of facility engaged in this commercial activity
Therefore: A. Any rental of any component of a residential property anywhere within the City limits of Ojai, for a period of less than 30 days, is prohibited unless an annual, revocable, business license along with Transient Occupancy Tax and Vacation Rental Registration Certificate is obtained along with notarized statement of agreement to licensing stipulations. Issued license number is required to be included in all contracts, advertising, notifications, and disclosures associated with the licensed activity including any agents or third parties associated with such activity.
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Attachment F Page 13 of 34
B. Council by resolution will establish licensing eligibility and use stipulations, including, but not limited to, eligible calendar days, operational standards, occupancy limits, facility occupancy and noticing standards, parking space requirements, license holder domicile and ownership requirements, insurance requirements, and contact and response standards.
C. Obtaining a license for transient rentals will in no way imply eligibility nor implied consent for any form of residential property use for special events such as large parties, weddings, concerts, etc. Obtaining a license for transient rentals will in no way imply eligibility for exterior signage promoting such rental activity.
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City of Ojai • City Council Workshop on Short-term Rental Housing • Report and Notes 2 July 2015 Following are the report and notes generated from the city council workshop on short-term rental housing for the city of Ojai. These notes and report are in draft form and designed for further use by the city in developing the direction, strategies, operational and implementation plans, structure and related workshop outcomes for the city. Outside readers of this report are advised that the significant work achieved was accomplished, in great part, due to the public, council member, staff and consultant commitments and willingness to address, openly and honestly, the various issues and challenges the report reflects. The goal of these comments is to ensure the work is done to move the council, staff and the city forward and should be construed with that commitment to constructive effort inherent in the council's approach to this workshop. The report and notes are intended for that ongoing work which is required for the council's continued work on this effort. This report adds dimension to the discussion at the workshop, however it should not be construed as an end product; instead it is a work in progress for further amplification and application by the council, staff and consultants for ongoing planning, development and evaluation. Prepared by Steve Alexander I Workshop Session Facilitator
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Table of Contents Executive Summary and Overview
3
Section 1. Common Themes and Key Take-aways
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Section 2. Highlights and Input from Experts' Presentations
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Section 3. Public Dialogue, Discussion and Key Issues
8
Section 4. Council Discussion and Dialogue
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Section 5. Workshop Evaluation
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Addendum A.Workshop Assignments and To Do List B.Workshop Objectives and Agenda C.Key Questions to Guide Public Input and Dialogue D.Frequently Asked Questions (FAQs)
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Executive Summary and Overview The primary objective of the Ojai City Council workshop was to conduct a community discussion to enhance the council's understanding of the issue of short-term rental housing and to gain insight into the community's issues and desired outcomes from the council. The session's focus included: 1) learning from experts with knowledge about this issue, 2) providing the community with a better understanding of the city's role, responsibilities, constraints and opportunities, 3) gaining an understanding of the diversity of perspectives within the community and 4) helping the council examine various policy, programmatic and operational options in might pursue. The session was facilitated by an outside consultant who reviewed the agenda set by the ad hoc city council committee, set-up with facilitation guidelines for managing the discussion and described consensus levels for any outcomes resulting from participant and council dialogue. An agenda was adopted to guide the workshop. Key experts presented information about the legal and economic issues to workshop participants and the council. This included an understanding of the city's current law and regulation regarding short-term rental housing presented by the city's acting city attorney. The economic report included an overview of what is happening in other cities and various issues for discussion for the workshop regarding housing supply, economic impacts and related topics. Public participants were provided time to address the council and describe various perspectives regarding the short-term rental housing. There was a range of opinions and views, including prohibiting allowing such activity in residential neighborhoods to permitting the activity with appropriate regulation and enforcement to allowing the activity to occur as a private property right with very limited government oversight. Participants provided input to the council, including: a) specific and general recommendations, b) opportunities/suggestions for council engagement and communication, c) insight into industry practices, d) areas that currently cause neighborhood conflict, e) rationale for continuing the practice of allowing short-term rental housing, f) reasons the practice is believed to be harmful to the city, neighborhoods and the housing supply, g) other topical, operational, policy and related considerations. Common themes were highlighted by the facilitator for further council and staff exploration and discussion. Given the time allotted for public input, the council engaged in a brief discussion highlighting their own insights, perspectives, hopes and expectations for how the city might proceed with the issue of short-term rental housing. Key areas for action were noted by the facilitator. The workshop concluded with a capturing of overall key themes and concepts. Various activities and assignments were outlined and confirmed, including leadership, responsibilities and due dates for next steps. These are listed in the Addendum of this report and include further research and examination of industry practices in other cities, inviting the businesses that lead this activity into City of Ojai City Council Workshop — Report and Notes / Draft 2
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the dialogue, conducting research within Ojai to determine the extent of the practice and possibly engaging an outside firm to conduct public opinion research. A brief evaluation of the session was included prior to closing the workShop. Success of this workshop is dependent upon the actions outlined being followed through and the council and staff determining appropriate public policy and operational guidelines for regulating short-term rental housing and the issues related to the practice. The council and staff, through this workshop and the inclusion of the public in the process, have established a trust-based, collaborative environment with open and ongoing communication to better develop and implement whatever changes believed best for the city of Ojai based upon its unique mission, vision, goals and character of the city. This approach was defined by the importance the mayor, council and city manager placed on building a collaborative effort to act, individually and collectively, from a big picture perspective on behalf of the entire city. A criticism often heard of efforts like this workshop is that participants engaged in the process and nothing resulted from the dialogue. The value of this workshop and its enduring impact to inform the city council's process can only be measured over time by the outcomes achieved. Over the long-term, the impact of these efforts and the council's commitment to work collaboratively and potential policy and procedural actions resulting from the workshop can be measured by how well the city itself meets its public mission and drives to its vision, manages its goals and lives up to its values. This workshop and the work of the participants were intended to build a cornerstone in that effort. This report and related adopted elements provide the framework for the in-depth and ongoing work of the council and staff as it fulfills its role within the city consistent with its strategic plan and its commitment to building and maintaining a model city. The report is intended to focus the work of the council and staff and guide their efforts to achieve a thoughtful, effective, responsive and longterm solution to the issue of short-term rental housing. Whatever outcome is chosen and action taken should be reviewed over time to assess its effectiveness and impact, consistent with the city's mission, vision and goals. The addendum includes: a) workshop assignments and to do list, b) workshop objectives and agenda, c) key questions provided to guide public dialogue and d) frequently asked questions (FAQs),
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Section 1.
Common Themes and Key Take-aways
Although the consensus model introduced at the outset of the meeting was not used given the extensive time allotted for public input, several areas were identified as common themes. These themes can be used by the council as it further explores public policy to deal with the issue of short-term rental housing. The following are presented for council and staff's use, and do not reflect agreement reached by the council in its discussion or consensus among public presenters. Should the city decide it will allow short-term rental housing to occur differently than the city's current codes and ordinances, these themes and key take-aways may help guide its efforts. Customizing to Meet the Needs of Distinct Neighborhood Characteristics — Ojai has a very eclectic mix of neighborhoods. Each is as unique and different, with a character defined by its residents. Clear in the testimony is the perception that not all neighborhoods are alike; some are more consistent with a blended residential and transient occupancy, although they are zoned as singlefamily areas; others are more clearly quiet, predominantly owner-occupied with neighbors who have grown together collectively over the years. Should the city consider allowing short-term rental housing in certain neighborhoods, it should consider 'customizing' its efforts to reflect where the policy will better serve the city and its residents and avoid a 'one-size-fits-all policy. Enforceability — Should the city pursue a new ordinance, zoning codes and rules, etc., it should consider the ability to enforce whatever rules are adopted. Several testified that enforcement must be feasible, cost-effective, clear, consistent and communicated to all. Regulatory Simplicity — Developing complex rules will only thwart the city's efforts to enforce (as indicated in the Enforceability section); in addition to enforcement, any ordinances should be simple, easy to understand and with a process that makes it clear as to what the process entails should someone wish to pursue a short-term rental housing business. Rules of Decorum and Hotline for Complaints — Should the city allow short-term rental housing, it should also include 'rules of decorum' that renters must follow, including areas such as noise, parking, numbers of renters allowed, trash, safety, etc. Similarly, a 24/7 hotline would be essential to quickly address any problems arising in neighborhoods where short-term rentals exist. Key Short-term Rental Organization Engagement into the Dialogue — Several who testified indicated that representatives from the organizations and businesses who are facilitating and conducting services that support short-term rental housing in Ojai (and throughout the nation) should be part of the solution. Use of Existing Zoning — The city has spent considerable effort on its general planning and zoning process. Participants encouraged the city to use existing zoning as a starting point for any effort to review, change and/or expand zoning to allow short-term rental housing should the city move in that direction. Communication — Critical to the success of any public policy consideration, participants urged the city to continue the communication with its residence (such as this workshop) and include them in City of Oiai City Council Workshop — Reoort and Notes / Draft 2
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the dialogue; suggestions were made (see Addendum re: Assignments) to use survey techniques, outreach and other efforts to communicate the process, progress, direction and decisions to the citizens of Ojai; communication will need to be timely, accurate, useful and proactive.. Revenue Generation: City and Homeowners — Should the city pursue permitting of short-term rental housing, revenue to the city (through Transient Occupancy Tax — TOT and business licensing) is viewed by some as helpful; it should off-set the cost of enforcement and benefit the city in other areas as well. Others felt that revenue should not drive the policy. Similarly, homeowners producing revenue to offset their costs of housing was generally viewed as an acceptable outcome. Research — Key areas of potential research were identified to help the city better understand the magnitude of the issue, how widely short-term rental housing is occurring and where, its potential impact on overall and affordable housing, housing prices, etc. Research (primary to the city as well as secondary research regarding what others are doing/experiencing) seemed a possible next step to help the council make an informed decision. Controlling the Controllable — Council recognized there is only so much that can be controlled should it pursue a public policy change regarding short-term rental housing. Focusing on the important issues within the jurisdiction of a local government agency charged with zoning, noise, safety and related ordinances will be critical to the success of any action taken.
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Section 2.
Highlights and Input from the Experts' Presentations
The workshop included brief presentations from experts, including legal and economic information. The objective was to provide the council, staff and public with a baseline of information of the city's current codes and regulations pertaining to short-term rental housing and an overview of some of the economic issues affected by/affecting short-term rental housing and communities were this activity occurs. This overview included two reports, which can be obtained at the city, and were made available for the workshop. They included brief case studies of other cities and their efforts to address this issue. The presentations clarified that short-term rental are rentals that occur for less than 30 days. A few questions were asked to clarify information presented by the experts. After public dialogue, some council members re-visited the information from the experts and further actions were requested as indicated in the assignments list in the addendum.
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Section 3.
Public Dialogue, Discussion and Key Issues
Public participants provided a range of views, values, perspectives and opinions. This report is designed to capture them, without comment or analysis. As indicated in section 1 of this report, various issues seemed to garner either more than one person's support and/or provided a collective thinking among presenters. Otherwise, the items below reflect the wide-range of thinking among the various community members present. Participants were also offered the opportunity to provide the city with written comments at and/or after the workshop, and some chose to do so. Approximately 34 people spoke; 32 were Ojai residents; two were not.
Following are the highlights of workshop comments. An asterisk (*) indicates that comment or similar comment was shared several times; those comments have all been arranged at the top of the list for sake of consolidation and do not indicate any priority. Notwithstanding the number of times a comment was made, that does not indicate there was consensus around any of these items: ■ *Owners should be able using short-term rental opportunities to subsidize their income and affordability to live in Ojai; it benefits homeowners who occupy those properties and helps with the affordability of the homes they own; the city just needs to find ways to resolve the conflicts that can arise through short-term vacation rental activities ■ *Any regulatory process needs to be simple ■ *Short-term rental owners need to pay transient occupancy taxes (TOT) ■ *If short-term rentals are allowed, there needs to be a hotline (24/7) available to call for complaints and to solve problems, for example, with noise, trash, cars, etc. ■ *Revenue to the city from short-term rentals is good for the 'system' at the city ■ *Safety is an important issue; supposedly Airbnb (one of the short-term rental housing companies) requires a rental agreement, personal interviews, screening, etc.) ■ *Airbnb (and other companies in this business) should be used in the process of regulation this activity; they should require proof of TOT payment, business license (and other city requirements) ■ *The concept of short-term rental housing works when the property is 'hosted,' i.e., the owner is present at the property; non-hosted has its pluses and minuses; hosting should be a requirement; homeowners being present works ■ *Short-term rental housing should be banned in Ojai because of its impact on affordable housing ■ *There are zoning conflicts between residential and commercial (short-term rental housing) use, for example the impact on neighboring properties, quality of life in a neighborhood and the value of properties in a residentially-zoned area. VMU Zoning must be addressed as well.
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■ *Enforcement of any changes and any allowance for short-term rental housing needs to be strictly enforced; enforcement needs to consider what type of enforcement, the effort required, cost of enforcement, etc. ■ *More research needs to be conducted by the city on: 1) the impact on the overall housing market and housing affordability, 2) why any change is needed, i.e., what the problem is that's being addressed by any change in law/regulation, 3) impact on the hotel industry and how this serves as an alternative, current uses in the city for short-term rental housing (the city of Los Angeles report can be used as a reference) ■ *Any permitting/regulation of short-term rental housing should be customizable by neighborhood due to the many different types of neighborhoods in Ojai ■ Establish criteria for what's allowable rental spaced based upon something that is easy to understand and allows for flexibility, for example 'square footage' of total vs. rental space, or number of guest rooms or beds available or 'density' of allowable units; something that allows for flexibility to have rooms available to friends and other related visitors; recognize there are differences in the way rental space is used, i.e., friends, family, incomeproducing, etc. ■ Whether someone is living in the residence or not should not matter ■ Follow the existing zoning and planning laws as a basis for any changes; a lot of effort was made by the community to work on those planning documents Short-term vacation rentals can meet the needs of people who are in a temporary move to ■ long-term housing, extended families and others ■ Potentially less traffic occurs from short-term rentals when people use bicycles, for example, for transportation ■ Better home maintenance can be a by-product of short-term rentals since the properties need to appear well-maintained to attract users ■ The impact on overall housing stock and availability needs to be determined; someone needs to identify the actual impact and numbers of houses actually removed from use; otherwise, there is only speculation about this impact Being a 'good neighbor' is not determined by whether a property owner is providing short■ term rental housing or not; there are instances where neighbors can be 'good' or 'bad' regardless of whether they are owner-occupied/non-rental properties, solely renters or otherwise ■ Using the '30-day or less' rental term isn't the best or only way to determine what constitutes a short-term rental housing ■ Short-term rental housing operators should be required to address and comply with health and safety issues just as, hotels and motels do ■ Apply the city's 'second unit' amnesty for those who already have second units as a guide to how to approach existing short-term rental housing ■ Short-term rental housing operators need to comply with other use-related ordinances/regulations/rules, for example, quiet time/noise, trash, parking, etc., and will require education by the city regarding compliance issues ■ Any change in law will require a clear and understandable process for short-term rental housing ■ Short-term rental housing has a negative impact on the city's and residents' quality of life ■ Existing codes should be used and enforced to regulate short-term rental housing now City of nisi City Cniincil Workshon — Renort and Notes / Draft 2
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■ Insurance issues need to be considered, for example, requirements for fire/safety/hazard ■ The city should proceed with caution about attempting to regulate what goes on inside the privacy of someone's home • One problem may be the definition of short-term rental housing being rentals that occur for less than 30 days; this should be considered as part of the process ■ Ojai's overall housing stock (not just affordable housing) is affected ■ Each neighborhood in Ojai is different, thus each is affected differently by short-term rental housing ■ Conduct a survey or all the residents in the city to gain a broader view (that just a onetime, one-night workshop) ■ Before any changes are made, be clear about what the goals of any change might be/mean, including the social and economic goals and impacts ■ The city will need the ability to inspect short-term rental housing for safety, fire hazards, compliance with law, etc. • Ojai's growth ordinance needs to be considered as a part of this process; it is supposed to guide the city's growth and short-term rental housing is a part of that equation ■ The need, offering and availability of short-term rental housing reflects changes in society and in the region ■ Consider adopting a 90-day limit for total short-term rental time to deal with the business/corporate/investor issues where properties are bought strictly for the purpose of short-term rental housing Disclaimer: The notes above are recorded as received and understood by the facilitator. The information has not been verified for accuracy nor is any opinion added; the notes are a reflection of comments offered without editing or substantiation. As indicated above, the asterisks are used to indicate how often a comment was made, not to indicate there was consensus on that particular item/issue.
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Section 4.
Council Discussion and Dialogue
The council's ad hoc committee has conducted focus groups and was asked to report out the findings from those sessions. They were: ■ ■ ■ ■
Findings confirmed much of the input from the public at this workshop One area not discussed is the impact on youth Housing stock was a big issue The negative impacts on neighborhoods issue was characterized as impacting a sense of community within a neighborhood and the city defined as: a) knowing your neighbors, b) experiencing a sense of 'connectedness' in your neighborhood, c) neighborhoods generating volunteers for civic engagement, d) erosion of full-time residents and e) overall engagement in the community ■ There was a difference in perception between investor-driven vs. 'home stays' (where the owner is present and living at the property) short-term rental housing
Council members had an opportunity for facilitated discussion and reflection on participant input and presentations made by the legal and economic experts. Following are the notes reflecting those comments. An asterisk (*) indicates that comment or similar comment was shared several times; comments with an asterisk have all been arranged at the top of the list for sake of consolidation and do not indicate any priority. Notwithstanding the number of times a
comment was made, that does not indicate there was consensus around any of these items Following are the comments from the council dialogue: ■ *The council needs to adopt reasonable rules to address the short-term rental housing issue and move ahead in a timely manner. ■ *There may/may not be an affordable housing impact/issue and this needs to be researched and confirmed. However, the issue may be too new to get reliable data. ■ *The council needs to focus on the issues it can control (and not try to control what it can't). *Should short-term rental housing be permitted, it should require a business license and payment of TOT ■ *Enforcement needs to be simple ■ *Broader community input is needed prior to making a decision and setting direction ■ *What's working in other cities should be identified and analyzed for how it applies to Ojai ■ The city, at the council's direction, has currently suspended enforcement on the short-term rental housing issue, and that's not a long-term solution and is no longer working ■ There are four angles to look at in the concept of short-term rental housing, i.e., 1) absentee owners, 2) live-ins who travel and exchange housing with others, 3) guest house rental and 4) room rental ■ There is a difference between home-sharing (both inside the main unit or on-site rental units) vs. strictly vacation rental operations
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Council members agreed to provide direction to staff and the legal experts, and that direction is included in the assignments in the addendum of this report.
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Section 5.
Workshop Evaluation
A brief opportunity was provided to assess the workshop format, structure, outcomes, etc. Initially, the workshop was structured to encourage comments that would address the key questions provided by the city. It appeared the public participants were eager to speak since this was the first forum (besides the focus groups) for them to share their ideas. In light of the key questions not being referenced in a more structured way, nonetheless, many of the comments offered provided the council and staff with critical information in the areas the key questions were intended to address. Following are the comments from the evaluation. The standard questions asked were, "What worked?" and "What would make such a session even better, i.e., this session would be even better if.. (EBIs). What Worked Structure of the session Format of the session Broad segment of the community was present and offered thoughts Opportunity for the community to provide input and ideas Useful information from the experts, council and listening to the community Event Better If... Informed others in advance as to how it would be structured Set-up the room so there wasn't so much distance from the audience and it was less formal Need to reach more people Consider doing a daytime and evening session The session was concluded and the assignments and next steps confirmed.
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ADDENDUM A.
Workshop Assignments and To Do List Ojai City Council 2 July 2015 DRAFT — Retreat Assignments — DRAFT
Following are the assignments, subject to review and confirmation, from the Ojai City Council short-term rental housing workshop conducted on 2 July 2015. Upon confirmation that these accurately reflect the work of that day, the mayor and city manager should monitor the assignments to ensure they are completed. Date 7.16.15 7.28.15
Lead Steve Rob
Support Amber/Rob Bill/Betsy
9.15 Council Meeting
Rob
Bill/Betsy
9.15 Council Meeting
Rob
Bill/Betsy
7.23.15
Bill Betsy
7.23.15
Dave
Assignment Prepare draft notes and report Determine if a professional or on-line survey should be conducted; if so, conduct survey in August 2015 Determine the need, scope and desired outcomes for conducting primary research (e.g., housing supply impacts, how much short-term rental activity is occurring, etc. specific to the city of Ojai) Determine the need, scope and desired outcomes for conducting secondary research (e.g., what other cities are experiencing; use Southern California Association of Governments — SCAG — as a possible resource) Conduct an ad hoc committee meeting based upon the workshop report and related considerations to identify next steps, strategies, etc. Provide standard research protocols and potential scope of work to the ad hoc committee
Status
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B.
Workshop Objectives and Agenda AGENDA OJAI CITY COUNCIL Special Meeting 6:00 p.m. July 2, 2015 Sarzotti Park/Boyd Center 510 Park Road — Ojai, CA
Members of the public wishing to address the City Council on items appearing on the agenda are requested to complete a "speaker's card" and file it with the City Clerk prior to the start of the Council meeting. Cards are available in the Council Chambers and the Lobby. All comments should be limited to three minutes, unless additional time is granted by the Mayor. Additional time may be granted to speakers who represent a group, in lieu of having each member of the group speak independently. Speakers should state their name and address for the record and must direct their comments to the Council, not the audience or press. While Council is in session, members of the Council, City staff, and members of the audience are expected to maintain order and decorum and to obey the orders of the Mayor. Any meeting participant or member of the audience who engages in disorderly conduct, such as hand-clapping, stamping of feet, whistling, using profane language and so on, which disturbs the peace and good order of the meeting, or refuses to comply with the lawful orders of the Mayor may be ordered removed from the meeting, and may be guilty of a misdemeanor. (Cal. Penal Code Sec. 403.)
ROLL CALL PLEDGE OF ALLEGIANCE Workshop Objectives and Agenda Facilitator: Steve Alexander Session Focus: The City Council, in order to advance the goals of the city of Ojai and on behalf of the citizens this body represents, is conducting this community session to enhance the Council's understanding of the issue of short-term rental housing and to gain insight into the community's issues and desired outcomes from the Council. The focus of the session is to: 1) learn from experts and others with knowledge about the issue, 2) provide the community with a better understanding of the city's role, responsibilities, constraints and opportunities, 3) understand the community's perspective, 4) provide assignments to staff for further work/recommendations for potential consideration/adoption by the Council and 5) to help the Council achieve policy, program and operational measures in a thoughtful, responsible and effective manner. City of Oiai City Council Workshoo — Report and Notes I Draft 2
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Objectives: 1. To review and gain an understanding of existing legal, policy, operational and other issues surrounding public policy on short-term rental housing 2. To provide the public with an opportunity for sharing its view, values and perspectives on the issue 3. To identify the various community groups, leaders, etc. with opinions and perspectives on the issue 4. To engage in an open-minded dialogue among Council members regarding the various issues, perspectives and opportunities regarding short-term rental housing 5. To identify, where possible, any community and Council consensus on the issue 6. To develop a report from this session that captures: a) what was said, by whom and what group(s) were represented, b) any areas of consensus, c) potential policy options/directions for Council consideration and d) a summary of issues, observations, insights, etc. 7. To develop a collaborative, collective will, if possible, for acting consistent with the city's vision and the Council's desire for 'best practices' policymaking on this issue 8. To identify gaps, challenges and areas requiring additional information/ investigation for further research and refinement 9. To adopt any key areas of consensus from session discussions and identify areas for further action and tangible outcomes for Council and staff implementation 10.To conduct the session in an open, transparent, truthful, collaborative and collegial manner that ensures full participation of the public and Council in a dialogue that: a) honors the views, values and perspectives of the participants, b) achieves ownership by the Council of the session outcomes, and c) facilitates energy, enthusiasm, commitment and momentum from the session Agenda: 1. Welcome / Introductions I Opening Remarks 2. Review Session Overview and Objectives / Adopt Ground Rules, Facilitation Guidelines, Roles and Process / Housekeeping 3. Presentations by Legal and Economic Consultant and City Staff 4. Facilitate Public Input on Key Questions a. Review Questions b. Review Collaborative Problem-solving Model 5. Identify Key Issues and Areas of Consensus 6. Facilitate Council Dialogue and Identify Areas of Consensus (If Applicable) 7. Identify Assignments to Staff (If Applicable) 8. Confirm Assignments / Evaluation / Community Session Lessons Learned 9. Closing Comments ADJOURNMENT: 9:00 p.m. or upon conclusion of business
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C.
Key Questions to Guide Public Input and Dialoque
Key Questions What are the key elements we want to address in the workshop to ensure the city has a full understanding of the community's concerns and desires? 2.
What are the criteria that would define a successful outcome from this workshop?
3.
What 'quality of life' values define our city that could be helped or hindered by the actions we take?
4.
Are there obvious changes that can be made that would help with this issue while balancing the diverse perspectives on it?
5.
What issue(s) do you believe is/are an area(s) where some compromise can be reached?
6.
What have you heard tonight that you believe is an area that can be worked on and be part of a solution on this issue?
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D.
Frequently Asked Questions (FAQs1
City of Ojai Transient Residential Rentals Frequently Asked Questions (FAQ) There has recently been a lot of discussion about the growing number of transient rentals in the residential areas of the City. Many cities throughout California have recognized this issue and have recently adopted new ordinances regulating transient rentals. A community workshop has been scheduled at 6pm on July 2, 2015, at the Boyd Center, 510 Park Road, Ojai, CA, to: a) learn about this issue, b) understand community perspectives on transient rentals in residential zones, and c) help the City Council develop thoughtful policies for regulation of this use. Q: What is a transient rental? A: Any rental of all or a portion of a property for occupancy for a period of thirty days or less. Q: Is home-sharing considered to be a transient rental? A: Yes. Home-sharing is the practice of renting sleeping space in a house that is otherwise occupied by the long-term residents. Rental of rooms or sleeping space for a period of thirty days or less constitutes a transient rental. Q: Are transient rentals permitted in residential zones? A: Generally no. There are one or two exceptions where the Planning Commission issued a conditional use permit in the past. Currently, there is a moratorium on the issuance of new conditional use permits for transient rentals in residential zones. Common practice in cities allowing transient rentals is to issue business licenses for those meeting listed requirements in the regulations. Q: What will happen to someone who engages in transient rental of residential property without a permit? A: Transient rentals in residential zones without a permit are a violation of the Ojai Municipal Code. Violators can be charged with an infraction or misdemeanor, issued administrative citations, and/or prosecuted in court. The City Council has directed that enforcement actions not be undertaken prior to the community workshop on July 2, 2015. Unpermitted transient rentals that occur after that date may be subject to enforcement action. Q: What options will be considered by the City Council on July 2nd.
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A: The City Council has not limited the options that will be considered. There are a wide range of approaches that have been adopted in other cities, and those approaches will be discussed at the workshop and described in a staff report that will be posted on the City website one week prior to the workshop. Q: How can I voice my concerns so that future regulations do not impact me negatively? A: Those who attend the workshop will be asked to share their concerns and interest as it relates to a series of questions about transient rentals in residential zones. Q: Will the City Council make a final determination on how transient rentals will be regulated at the July 2, 2015 workshop? A: No. The purpose of the workshop is to share information, exchange ideas among community members with differing perspectives, and to identify matters which should be researched further before final decisions are made. It is an important step in developing thoughtful policies.
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