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CC Resolution 14737 (Short-Term Rental Policy)1 RESOLUTION NO. 14737 RESOLUTION OF THE CITY OF SAN RAFAEL CITY COUNCIL ADOPTING POLICIES AND PROCEDURES FOR THE ADMINISTRATION OF THE “SHORT-TERM RENTAL PROGRAM” AS SET FORTH IN SAN RAFAEL MUNICIPAL CODE CHAPTER 10.110 WHEREAS, on June 10, 2016 the City of San Rafael began monitoring short-term rental activity and trends within the City; WHEREAS, as of December 2018, there were 286 active short-term rentals in the City of San Rafael, an increase from 150 active short-term rentals from when monitoring first began in 2016; WHEREAS, on August 20, 2018, staff presented the City Council with a comprehensive report on a broad range of housing topics and issues and the City Council directed staff to follow up on four specific housing issues and return to the City Council with an informational report on potential short-term rental policy options; WHEREAS, on February 19, 2019, staff presented the City Council with an informational report on short-term rental approaches, including analysis of active short-term rentals, best practices, and regulatory and enforcement options. The City Council requested that staff conduct expanded community outreach and additional analysis of the impacts of short-term rentals on the City’s housing stock and of short-term rental use of accessory structures; WHEREAS, on March 20, 2019, staff held a stakeholder meeting with the Federation of Neighborhoods and presented a summary of the short-term rental related activity to date in San Rafael including a summary of actions from the February 19, 2019 City Council Meeting. Attendees expressed no major concerns around short-term rental regulation; WHEREAS, on April 4, 2019, staff met with approximately 25 San Rafael short-term rental host using the Airbnb platform. Staff presented a summary of the short-term rental-related activity to date including a summary of actions from the February 19, 2019 City Council Meeting. Attendees expressed no major concerns around short-term rental regulation; WHEREAS, beginning on March 22, 2019 and concluding on April 22, 2019, staff conducted an online community survey of potential short-term rental regulations. 409 individuals responded to the survey during the month that it was made available, and survey results indicate support for the development of a short-term rental program; WHEREAS, on May 29 and May 30, 2019, staff held community meetings presented on the findings of the community survey and presented a “Straw-man” proposal’-- intended to generate discussion of disadvantages and to provoke the generation of new and better proposals for the creation of a Short-term Rental Program; 2 WHEREAS, on June 18, 2019, staff met with the San Rafael Chamber of Commerce Government Affairs Committee and presented the same presentation reviewing the results of the community survey used during the Community Meetings. Attendees expressed no major concerns around short-term rental regulation; and WHEREAS, on August 5, 2019, staff presented the City Council with additional analysis and overview of the community outreach associated with the development of a potential short- term rental program for the City of San Rafael, and draft program regulations, program costs and revenues, and a draft ordinance. The City Council directed staff to return with an ordinance and program regulations for City Council consideration that creates a short-term rental program; NOW, THEREFORE, BE IT RESOLVED, that the City Council hereby adopts the following Policies and Procedures for the administration of the “Short Term Rental Program” (“the Program”): SECTION 1 PURPOSE AND INTENT It is the purpose of this Program to benefit the general public by minimizing adverse impacts on the housing supply and on persons and households of all income levels resulting from the loss of residential units through their conversion to tourist and transient use. This is to be accomplished by regulating the conversion of residential units to tourist and transient use, and through appropriate administrative and judicial remedies. SECTION 2 APPLICABILITY The provisions of this Program shall apply to all Dwelling Units in the San Rafael city limits, including a single-family dwelling or unit in a multifamily or multipurpose dwelling, a unit in a condominium or cooperative housing project, or a unit in a structure that is being used for residential uses whether or not the residential use is a conforming use permitted under the San Rafael Municipal Code, which is hired, rented, or leased to a household within the meaning of California Civil Code Section 1940. SECTION 3 DEFINITIONS For the purpose of this Program, unless the context clearly requires different meaning, the words, terms, and phrases set forth in this section shall have the meanings given to them in this section: A. “Booking Service” - A Booking Service is any reservation and/or payment service provided by a person or entity that facilitates a short-term rental transaction between an Owner or Business Entity and a prospective tourist or transient user, and for which the person or entity collects or receives, directly or indirectly through an agent or intermediary, a fee in connection with the reservation and/or payment services provided for the short-term rental transaction. B. “Business Entity” means a corporation, partnership, or other legal entity that is not a natural person that owns or leases one or more residential units. 3 C. “Complaint” means a complaint submitted to the Department alleging a violation of SRMC Chapter 10.110 and/or this Program and that includes the Residential Unit's address, including unit number, date(s) and nature of alleged violation(s), and any available contact information for the Owner and/or resident of the Residential Unit at issue. D. “Conversion or Convert” means a change of use from Residential Use to Tourist or Transient Use, including, but not limited to, renting a Residential Unit as a Tourist or Transient Use. E. “Department” means the Community Development Department. F. “Director” means the Director of the Community Development Department, or his or her designee. G. "Dwelling unit" for purposes of this Program means one or more rooms designed, occupied or intended for occupancy as separate living quarters, with a kitchen, sleeping facilities, and sanitary facilities for the exclusive use of one household, but not including any such unit occupied in whole or in part by the property owner or the property owner’s family members, including parents, children, brothers, sisters, aunts, uncles, nieces, and/or nephews. H. “Good Standing” - To maintain good standing on the Registry, the Permanent Resident shall be in compliance with all program requirements set forth in this Program. I. “Host” means a person or Business Entity that participates in the short-term rental business by providing a short-term rental. J. “Hosting Platform” A person or Business entity that participates in the short-term rental business by providing and collecting or receiving a fee for Booking Services through which a Host may offer a Residential Unit for Tourist or Transient Use. Hosting Platforms usually, though not necessarily, provide Booking Services through an online platform that allows a Host to advertise the Residential Unit through a website provided by the Hosting Platform and the Hosting Platform conducts a transaction by which potential tourist or transient users arrange Tourist or Transient Use and payment, whether the tourist or transient pays rent directly to the Host or to the Hosting Platform. K. “Interested Party” means a Resident of the building in which the Tourist or Transient Use is alleged to occur, any homeowner association associated with the Residential Unit in which the Tourist or Transient Use is alleged to occur, the Owner of the Residential Unit or Business Entity property in which the Tourist or Transient Use is alleged to occur, a Resident or Owner of a property within 100 feet of the property containing the Residential Unit in which the Tourist or Transient Use is alleged to occur, the City of San Rafael, or any non-profit organization exempt from taxation pursuant to Title 26, Section 501 of the United States Code, which has the preservation or improvement of housing as a stated purpose in its articles of incorporation or bylaws. L. “Owner” - Owner includes any person who is the owner of record of the real property. As used in this Program, the term "Owner" includes a lessee where the lessee is offering a Residential Unit for Tourist or Transient use. 4 M. “Permanent Resident” means a person who occupies a Residential Unit for at least 60 consecutive days with intent to establish that unit as his or her primary residence. A Permanent Resident may be an owner or a lessee. N. “Primary Residence” means the Permanent Resident's usual place of return for housing as documented by at least three of the following: motor vehicle registration; driver's license; voter registration; tax documents showing the Residential Unit as the Permanent Resident's residence for the purposes of a home owner's tax exemption; or a utility bill. A person may have only one Primary Residence. O. “Recreational Vehicle” means a motorhome, housecar, travel trailer, truck camper, or camp trailer; with or without motive power; designed for human habitation or other occupancy. P. “Residential Unit” means a room or rooms, including a condominium or a room or dwelling unit that forms part of a tenancy-in-common arrangement, in any building, or portion thereof, which is designed, built, rented, leased, let or hired out to be occupied for Residential Use as defined in the San Rafael Municipal Code. Q. “Residential Use” means any use for occupancy of a Residential Unit. R. “Short-Term Rental” means any rental of all or a portion of a dwelling unit for less than 30 days consecutive tenancy. S. “Short-Term Rental Registry” or “Registry” means a database of information maintained by the Department that includes a unique registration number for each Short-Term Rental and information regarding Hosts who are permitted to offer Residential Units for Short-Term Rental. The Registry shall be available for public review to the extent required by law, except that, to the extent permitted by law, the Department shall redact any Host names and street and unit numbers from the records available for public review. T. “SRMC” means the San Rafael Municipal Code. U. “Transient" means any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement for a period of thirty (30) consecutive calendar days or less, counting portions of calendar days as full days. Any such person so occupying space in a hotel shall be deemed to be a transient until the period of thirty days has expired unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy. In determining whether a person is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of the ordinance codified in this chapter may be considered. V. “Travel Trailer” means a vehicle designed for recreational purposes to carry persons or property on its own structure and constructed to be drawn by a motor vehicle, as defined in California Vehicle Code § 242 or California Vehicle Code § 324. W. “Tourist or Transient Use” means any use of a Residential Unit for occupancy for less than a 30-day term of tenancy, or occupancy for less than 30 days of a Residential Unit leased or owned by a Business Entity, whether on a short-term or long-term basis, including any occupancy by employees or guests of a Business Entity for less than 30 days where payment for the Residential Unit is contracted for or paid by the Business Entity. 5 SECTION 4 Property Eligibility A. Eligible Properties. Only properties where all of the following conditions are met are eligible to register for the Short-Term Rental Program: 1) the Residential Unit is offered for Tourist or Transient Use by the Permanent Resident of the Residential Unit; 2) the Residential Unit is the Primary Residence of the Permanent Resident; 3) the Permanent Resident is a natural person; 4) the Permanent Resident has registered the Residential Unit and maintains good standing with the City of San Rafael; B. Ineligible Properties. The following property types are never eligible to be considered a Short-Term Rental and cannot register for the Short-Term Rental Program: 1) Income-restricted affordable housing, including Below-Market-Rate (BMR) units and public housing; 2) Student housing, dormitories and Single-Room-Occupancy (SRO) buildings; 3) Commercial or industrial zoned lots; 4) Non-residential areas within buildings, such as living/sleeping quarters added in garages 5) Motorized Recreation Vehicles (RVs), including non-motorized travel trailers; 6) Boats/House Boats; 7) Teepees, Yurts, Tents, and Treehouses; 8) Sleeping Quarters in Vans or Cars. C. Properties with Multiple Residential Units. Properties with multiple residential units on a parcel can be offered as Short-Term Rentals under one of the following conditions: 1) Where a lot a contains a single-family Dwelling Unit and any combination of the following habitable spaces: an additional dwelling unit, an Accessory Dwelling Unit, or a habitable detached accessory structure as defined in SRMC Chapter 14.03, this lot may not offer as a Short-Term Rental an entire Single-Family Home and the additional habitable space concurrently. Rooms in a single-family Dwelling Unit may be offered as a Short-Term Rental concurrently with habitable space only if the Permanent Resident is present throughout the duration of the rental. 2) Where a lot a contains a Multi-Family Residential Structure, a Residential Unit can only be offered as a Short-Term Rental by the Primary Resident. If the lot also contains an additional separate Dwelling Unit or a habitable detached accessory structure as defined in SRMC Chapter 14.03, multiple Residential Units may not be offered by the Primary Resident concurrently. 6 SECTION 5 Program Requirements A. Occupancy Limitations. Occupancy for any Short-Term Rental is limited to two (2) occupants per bedroom, as defined in the California Building Code. An additional two (2) occupants are allowed in Short-Term Rentals that provide a separate living space. In no instance can a Short-Term Rental provide a total occupancy that is greater than the capacity of the number of vehicles which can be accommodated by the off-street parking requirements of Section 5.B. For the purposes of the Program, vehicle capacity is considered as four (4) individuals per vehicle. B. Off-Street Parking Requirements. Properties offered as Short-Term Rentals must provide sufficient designated and easily identified off-street parking spaces to meet the occupancy level offered by the Short-Term Rental. If multiple Short-Term Rentals are offered concurrently on the same property, separate designated off-street parking spaces must be provided for each Short-Term Rental offered. In no instance can the total occupancy of a Short-Term Rental exceed the vehicle capacity of the designated off-street parking available. For the purposes of the Program, vehicle capacity is considered as four (4) individuals per vehicle. 1) Properties with Privately Maintained Shared Vehicle Access. For Short-Term Rentals where vehicle access to the property is shared with multiple owners and is privately maintained, a “Parking Plan” shall be submitted. The “Parking Plan” documents the methods in which the presence of a Short-Term Rental will avoid encumbering parking. These methods may include: (a) Existing variances; (b) Shared maneuvering diagrams or conditions; (c) Signage identifying designated off-street parking spaces; (d) Agreements indicating designated off-street parking spaces. Additionally, the “Parking Plan” shall include instructions to be provided to guests of the Short-Term Rental outlining the location of designated off-street parking spaces and instructions for maintaining clear access to shared maneuvering areas. The City will consider blocked access to shared maneuvering areas or guest parking outside of designated off-street parking spaces to be Program violations. C. Property Registration. The following information shall be documented as part of the Program registration for any Short-Term Rental. The Department shall determine, in its sole discretion, the completeness of this information and request additional documentation as necessary: 1) Property Information. (a) Primary Resident Name and Contact Information (b) Documentation of Primary Residency (c) 24-Hour Local Emergency Contact (d) Property Address (e) Type of Short-Term Rental 7 (f) Occupancy (g) Number of Bedrooms (h) Number of Bathrooms (i) Number of Designated Off-Street Parking Spaces (j) Parking Plan, where necessary per Section 5.B.1 2) Property Inspection. As part of the registration process, an inspection must be conducted of the Short-Term Rental, in a form prescribed by the Program. This inspection may be conducted and certified by the Primary Resident, and shall include (but is not limited to): (a) Egress (b) CO2 and Smoke Detectors (c) Interior Signage (d) Designated Off-Street Parking For Short-Term Rentals located within a Wildland-Urban Interface as defined in SRMC Chapter 4.12, the registrant must pass a vegetation inspection, in a form prescribed by the Program, proof of which must be completed and submitted as part of the Program Registration. 3) Interior Signage. Properties offered as Short-Term Rentals shall have a clearly visible and legible notice posted on or directly adjacent to the inside of the front door, containing the following information: (a) 24-Hour Local Emergency Contact Person (b) Maximum number of occupants (c) Maximum number of vehicles (d) Off-street Parking Requirements (e) Garbage Disposal Instructions (f) Information regarding Fire Safety and Fire Access Roads (g) Emergency and Wildfire Evacuation Procedures (h) Information on signing up for emergency alerts (i) Information on San Rafael Noise Ordinance D. Application. Registration shall be for a one-year term, which may be renewed by the Host by filing a completed renewal application. Initial and renewal applications shall be in a form prescribed by the Department. The Department shall determine, in its sole discretion, the completeness of an application. Upon receipt of a complete initial application, the Department shall send mailed notice to the owner of record of the Residential Unit, informing the owner that an application to the Registry for the unit has been received. In addition to the information set forth here, the Department may require any other additional information necessary to show compliance with this Program. Upon the Department's 8 determination that an application is complete, the unit shall be entered into the Short-Term Rental Registry and assigned an individual registration number. E. Fee. The fee for the initial application shall be $170 and for each renewal shall be $135, payable to the Department. Fees set forth in this Section may be adjusted by resolution of the City Council. The City shall, if necessary, adjust the fees upward or downward for the upcoming fiscal year as appropriate to ensure that the program recovers the costs of operation without producing revenue that is significantly more than such costs. The adjusted rates shall become operative at the start of the City’s fiscal year. F. Reporting Requirement. To maintain good standing on the Registry, the Host shall submit a quarterly report to the Department beginning on January 1, April 1, July 1, and October 1 of each year, regarding the number of days the Residential Unit or any portion thereof has been rented as a Short-Term Rental since either initial registration or the last report, whichever is more recent, and any additional information the Department may require to demonstrate compliance with this Program. G. Annual Audit. Each calendar year, the Program will select five percent (5%) of registrations to be audited for Program compliance. This audit will be performed by the Program staff and include: 1) Registration review; 2) Property Inspection; 3) Transient Occupancy Tax payment review. If a Short-Term Rental is deemed non-compliant, the Department shall follow the Administrative Enforcement Procedures outlined in Section 7. SECTION 6 Requirements for Hosting Platforms A. All Hosting Platforms shall provide the following information in a notice to any user listing a Residential Unit located within the City of San Rafael through the Hosting Platform's service. The notice shall be provided prior to the user listing the Residential Unit and shall include the following information: that SRMC Chapter 10.110 and this Program regulate Short-Term Rental of Residential Units; the requirements for registration of the unit with the Department; and the transient occupancy tax obligations to the City. B. A Hosting Platform shall comply with the requirements of SRMC Chapter 10.04 entitled “Business License Tax” and SRMC Chapter 3.20 entitled “Uniform Transient Occupancy Tax”, among any other applicable requirements, collecting and remitting all required Transient Occupancy Taxes, and this provision shall not relieve a Hosting Platform of liability related to an occupant's, resident's, Business Entity's, or Owner's failure to comply with the requirements of Chapter 10.04 and Chapter 3.20. A Hosting Platform shall maintain a record demonstrating that the taxes have been remitted to the City. C. A Hosting Platform may provide, and collect a fee for, Booking Services in connection with Short-Term Rentals for Residential Units located in the City only when the Hosting Platform exercises reasonable care to confirm that those Residential Units are lawfully registered on the Short-Term Rental Registry at the time the Residential Unit is rented for short-term rental. Whenever a Hosting Platform complies with administrative guidelines issued by the City to confirm that the Residential Unit is lawfully registered on the Short-Term Rental 9 Registry, the Hosting Platform shall be deemed to have exercised reasonable care for the purpose of this subsection. D. On the fifth day of every month, a Hosting Platform shall provide a signed affidavit to the City verifying that the Hosting Platform has complied with subsection 6.C in the immediately preceding month. E. For not less than three years following the end of the calendar year in which the Short-Term Rental transaction occurred, the Hosting Platform shall maintain and be able, in response to a lawful request, to provide to the City for each Short-Term Rental transaction for which a Hosting Platform has provided a Booking Service: 1) The name of the Owner or Business Entity who offered a Residential Unit for Tourist or Transient Use, 2) The address of the Residential Unit, 3) The dates for which the tourist or transient user procured use of the Residential Unit using the Booking Service provided by the Hosting Platform, and 4) The registration number for the Residential Unit. F. The Department shall designate a contact person for members of the public who wish to file Complaints under this Program or who otherwise seek information regarding this Program or Short-Term Rentals. This contact person shall also provide information to the public upon request regarding quality of life issues, including, for example, noise violations, vandalism, or illegal dumping, and shall direct the member of the public and/or forward any such Complaints to the appropriate City department. G. Notwithstanding any other provision of this Program, nothing in this Program shall relieve an individual, Business Entity, or Hosting Platform of the obligations imposed by any and all applicable provisions of state law and the San Rafael Municipal Code including but not limited to those obligations imposed by SRMC Chapter 10.04 entitled “Business License Tax” and SRMC Chapter 3.20 entitled “Uniform Transient Occupancy Tax”. Further, nothing in this Program shall be construed to limit any remedies available under any and all applicable provisions of state law and the San Rafael Municipal Code including but not limited to SRMC Chapter 10.04 entitled “Business License Tax” and SRMC Chapter 3.20 entitled “Uniform Transient Occupancy Tax”. SECTION 7 Administrative Enforcement Procedures A. Determination of Violation. Upon the filing of a written Complaint, the Director shall take reasonable steps necessary to determine the validity of the Complaint. To determine if there is a violation of this Program and/or SRMC Chapter 10.110, the Director may initiate an investigation. This investigation may include, but is not limited to, an inspection of the subject property and/or a request for any pertinent information from the Owner, Business Entity, or Hosting Platform, such as leases, business records, or other documents. The Director shall have discretion to determine whether there is a violation of this Program and/or SRMC Chapter 10.110. Notwithstanding any other provision of this Program, any alleged violation related to failure to comply with the requirements of SRMC Chapter 10.04 entitled “Business License Tax” or SRMC Chapter 3.20 entitled “Uniform Transient Occupancy Tax” shall be enforced under the provisions of those Chapters. 10 B. Administrative Citations and Noticing and Administrative Hearing Procedures. Administrative citations and Noticing and Administrative Hearing Procedures for violations of this Program and/or SRMC Chapter 10.110 shall be conducted in accordance with SRMC Chapter 1.44 and/or SRMC Chapter 1.46. C. Administrative Penalties for Violations and Enforcement Costs. Administrative Penalties and Enforcement Costs for violations of this Program and/or SRMC Chapter 10.110 shall be imposed in accordance with SRMC Chapter 1.44 and/or SRMC Chapter 1.46. D. Revocation of Registration. A Short-Term Rental registration issued under the terms of the Program shall be revoked by the Director at any time if they conclude any of the following: 1) The Short-Term Rental is not current on transient occupancy taxes and has not paid all such taxes to the City in full by the date upon which such taxes became due. 2) There have been three or more upheld citations for violations of the San Rafael Municipal Code at the Short-Term Rental property within a twenty-four (24) month period. For the purposes of this subsection, upheld citations means citations which were neither overturned after contest or appeal nor dismissed. 3) The Short-Term Rental applicant has submitted a Short-Term Rental application containing a material misrepresentation or omission of material facts. 4) There has been a transfer or an attempt to transfer a Short-Term Rental registration to another person, entity, or property. BE IT FURTHER RESOLVED that any and all amendments to the Policies and Procedures for the administration of the “Short Term Rental Program” herein, as deemed necessary from time- to-time, shall be adopted by resolution of the City Council. I, Lindsay Lara, Clerk of the City of San Rafael, hereby certify that the forgoing resolution was adopted at a regular meeting of the City Council held on the 4th day of November 2019: AYES: Councilmembers: Bushey, Colin, Gamblin, McCullough & Mayor Phillips NOES: Councilmembers: None ABSENT: Councilmembers None _______ LINDSAY LARA, City Clerk