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HomeMy WebLinkAboutCD Short-Term Rental Ordinance and Policy Resolution____________________________________________________________________________________ FOR CITY CLERK ONLY Council Meeting: 11/04/2019 Disposition: Passed Ordinance 1976 to print x Resolution 14737 Agenda Item No: 6.a Meeting Date: November 4th, 2019 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Community Development Prepared by: Paul Jensen (EG), Community Development Director City Manager Approval: ______________ TOPIC: SHORT-TERM RENTAL ORDINANCE AND POLICY RESOLUTION SUBJECT: CONSIDERATION OF AN ORDINANCE OF THE CITY OF SAN RAFAEL CITY COUNCIL AMENDING SECTION 14.03.030 AND SECTION 3.20.020 OF THE SAN RAFAEL MUNICIPAL CODE, AND ADDING NEW CHAPTER 10.110 ENTITLED “SHORT-TERM RENTAL PROGRAM;” AND 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 RECOMMENDATION: 1. Conduct a public hearing introducing an ordinance amending San Rafael Municipal Code Section 14.03.030 and Section 3.20.020, and adding new Chapter 10.110 entitled “Short-Term Rental Program” and pass the ordinance to print. 2. Adopt a resolution establishing the policies and procedures for the Short-Term Rental Program. EXECUTIVE SUMMARY: As follow-up to an informational report presented to the San Rafael City Council on August 5, 2019, staff was directed to return to the City Council with a draft ordinance for City Council consideration that creates a Short-Term Rental program with the minimal and moderate enforcement recommendations included in the August 5, 2019 staff report. Staff has proposed two documents in this report for City Council consideration that are necessary to develop a Short-Term Rental Program: 1. Ordinance of the City of San Rafael City Council Amending Section 14.03.030 and Section 3.20.020 and Adding New Chapter 10.110 Entitled “Short-term Rental Program” - This proposed ordinance amends the municipal code and creates the Short-Term Rental Program (Attachment 1). 2. 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- This proposed resolution provides the policies and procedures outlining the program regulations for the Short-Term Rental Program (Attachment 2) The establishment of a Short-Term Rental Program through the proposed ordinance and resolution in this staff report will have a fiscal impact on the City. Staff estimates first-year program costs of SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 approximately $41,000 and ongoing program costs of approximately $33,000 annually. Staff estimates cost-recovering program fees of $170 per short-term rental for initial registrations and $135 per short- term rental for annual renewals. Staff estimates transient occupancy tax (TOT) revenue ranging from approximately $18,000 to $105,000 annually, with an average of approximately $39,000 annually. BACKGROUND: At present, the City of San Rafael does not prohibit, regulate, tax or enforce short-term rentals. In 2011, as part of the review of the Junior Dwelling Unit (JDU) ordinance, the City Council directed staff to monitor short-term rental activity. Currently, there are 270 active short-term rentals in San Rafael. On August 5, 2019, staff presented an informational report providing additional analysis and overview of the community outreach associated with the development of a potential Short-Term Rental (STR) ordinance for the City of San Rafael. This report also provided a summary of the Community Survey findings regarding support for STR regulations. Included within this report was a draft ordinance for STR regulation in San Rafael similar to the minimal regulation model administered in the City of Mill Valley. This minimal regulation model requires registration, fee payment, and TOT remittance only. The report provided additional policy elements utilized by other jurisdictions in which there is not clear direction existing in the San Rafael Municipal Code (SRMC). Following public feedback and City Council discussion, staff was directed to return with a draft ordinance for City Council consideration that creates a Short-Term Rental program with the minimal and moderate enforcement recommendations included in the August 5, 2019 staff report. The City Council also directed staff to consider the following additional elements to be included in the draft ordinance: • Potential regulations for STRs on properties with shared driveways • Regulations allowing travel trailers under certain specific conditions like those presented in the staff report • Regulations aimed at restricting “party houses” • Program guidelines outlining a three-strike system or other system to address so that problem locations could lose their right to act as a STR. Staff has prepared this report to provide further analysis of these additional elements as well as present for introduction a proposed ordinance and resolution creating a Short-Term Rental Program and outlining the program requirements and procedures. ANALYSIS: A. Properties with Shared Vehicle Access Based upon City Council direction at the August 5, 2019 meeting, staff considered potential regulations for short-term rentals on properties where vehicle access is shared with another contiguous property. As part of this consideration, staff discussed shared access conditions with several parties that have filed complaints with the City or have been the subject of such complaints. Staff first reviewed regulations in other jurisdictions to identify potential best practices. Staff could not find regulations specifically regulating properties with shared vehicle access. Rather, most jurisdictions include requirements for adequate on-site parking and host-provided materials educating potential renters on vehicle access and parking locations. Staff next reviewed the main types of shared vehicle access on properties within San Rafael. Staff identified two main types of shared vehicle access: SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 1) Shared Entrance- Multiple properties share a main entrance way to the property, but the vehicle parking and maneuvering area is separate for each property. Within this shared access type, staff identified two main designs: Y-Shape (Figure 1.A) and a Comb-Shape (Figure 1.B) Figure 1.A- Y-Shape Shared Entrance Figure 1.B- Comb-Shape Shared Entrance 2) Shared Vehicle Maneuvering Area- Multiple properties share a main entrance way as well as shared vehicle maneuvering area. Within this shared access type, staff identified two main designs: Shared Driveway and Parking Area shared between two or more single-family lots (Figure 2.A) and Parking Lots for Multifamily properties (Figure 2.B) Figure 2.A- Shared Driveway and Parking Area Figure 2.B- Parking Lots for Multifamily Properties Next, staff reviewed the approximately 270 active short-term rental listings over the last year in San Rafael and identified listings with shared vehicle access. Of these 270 listings, staff identified 41 listings on properties with shared vehicle access. The vast majority of the listings, 29, were on multifamily properties with parking lots. Eight listings were on properties with a comb-shaped shared entrance. Properties with Y-Shaped shared entrances and Shared Driveway and Parking Areas each had two listings. As part of this review, staff also looked at existing agreements or easements in place for these properties. Staff found in nearly all cases there were existing recorded easements, approved maneuvering diagrams, or agreements to address use of these shared access areas. These existing agreements are often either attached to the property themselves as part of the deed or have been developed between neighbors. In the case of multifamily properties, often shared parking and maneuvering is inherent to the property. Parking and maneuvering conditions are often included as part of a lease agreement or a separate parking rental agreement. Discussion As described in previous reports to the City Council, the Community Development Department has received few complaints regarding short-term rentals. For complaints associated with shared vehicle SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4 access, often the concern is that additional guests will restrict parking and driveway access. However, in most instances, conditions surrounding parking and driveway access on these properties are already addressed through agreements and recorded easements described above. Staff has included in the proposed resolution outlining the program requirements restrictions on the number of vehicles permitted for short-term rental use. For properties with shared vehicle access, the designated off-street parking spaces would need to follow the agreements and variances attached to the property. Staff has also included as part of the program requirements the submittal of a Parking Plan for properties with shared vehicle access. This requirement is to ensure appropriate variances and/or agreements are in-place. The Parking Plan would require documentation showing the existence of agreements or variances as part of the registration process. Additionally, the Parking Plan would require instructions for guests of the proposed short-term rental outlining the location of designated off-street parking spaces and instructions for maintaining clear access to shared maneuvering areas. Finally, the program requirements explicitly state that blocked access of the shared maneuvering areas or guests parking outside of the design off-street spaces may be considered program violations subject to the three-strikes rules described in the Proposed Resolution- Program Policies and Procedures section of this report. B. Travel Trailers At the August 5 City Council meeting, staff was asked to consider potential program regulations allowing non-motorized travel trailers, including camp trailers and fifth-wheel trailers, to be used as short-term rentals. Currently, staff recommends not allowing non-motorized travel trailers to be eligible for short- term rental use. This recommendation is based off a review of existing state laws and regulations on manufactured homes. Currently, California laws and regulations establish minimum design and construction standards for manufactured homes.1 These laws and regulations are intended to ensure fire and life safety standards for permanent residence of these properties comparable to a permanent structure. These standards do not apply to Recreational Vehicles (RVs), including non-motorized camp trailers and fifth-wheel trailers, as these structures are designed to accommodate the temporary use. As such, these structures are not manufactured to the same egress, electrical, or sewage standards necessary for permanent use. Staff is concerned that these differing standards would make it difficult to ensure the ongoing life and fire safety of RVs, given their relatively transient functionality. Additionally, San Rafael Municipal Code (SRMC) Chapter 8.30- Vehicles Use for Human Habitation maintains that trailers, campers or RVs may be used for sleeping purposes only (no use of cooking or sanitary facilities) for up to three successive nights in a 90-day period, providing it is parked to the rear of the house and at least 5 feet from the property line or 10 feet to any building. Staff is concerned that allowing Travel Trailers to be used as short-term rentals would set a precedent that would conflict with the SRMC. C. Party Houses As discussed during August 5 City Council Meeting, as part of the ongoing development of a potential STR program, staff has developed communication channels with Airbnb to promptly report and address potential STR listings being operated as “Party Houses.” 1 http://www.hcd.ca.gov/building-standards/manufactured-modular-factory-built/manufactured-home-laws- regulatioins.shtml SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5 In addition to the proposed STR program enforcement procedures outlined in the Short-Term Rental Program Ordinance and Resolution section, representatives from Airbnb have also confirmed they can be contacted directly or through their “Airbnb Neighbor Tool” to file any additional complaints. This process would be in addition to complaints filed through the 24/7 Complaint Hotline provided by Host Compliance and could be utilized from problems requiring more immediate remedy. D. Short-Term Rental Program Ordinance and Resolution Staff has proposed two documents in this report for City Council consideration that are necessary to develop a Short-Term Rental Program: 1. Ordinance of the City of San Rafael City Council Amending Section 14.03.030 and Section 3.20.020 of the San Rafael Municipal Code and adding new Chapter 10.110 entitled “Short-term Rental Program” (Attachment A) 2. Resolution of the 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 (Attachment B) 1. Proposed Ordinance As presented in the August 5 staff report, the proposed ordinance in this report includes the following amendments to (SRMC Section 14.03.030) of the City’s the Zoning Code and to the Transient Occupancy Tax (“TOT”) provisions set forth in SRMC Chapter 3.20: • Add definition for “Short-Term Rentals” to SRMC Section 14.03.030: “Short-term rental” means the rental of all or a portion of a dwelling unit for less than 30 days consecutive tenancy. • Amend definition for “Hotel” by removing “multiple guest rooms” in SRMC Section 14.03.030: "Hotel" means any building or portion thereof containing multiple guest rooms designed for compensation, primarily for the accommodation of transient travelers, with eating, drinking, banquet and recreational facilities related to the hotel use, but not including those facilities defined as residential care facilities. • Amend definition of “Home Occupation” to explicitly not apply to short-term rentals in SRMC Section 14.03.030: "Home occupation" means an accessory use of a dwelling unit, conducted entirely within the dwelling unit, carried on by one (1) or more persons, all of whom reside within the dwelling unit, as further defined in Section 14.16.220, Home occupations, but not including those facilities defined as short-term rentals in Section 14.03.030. • Amend definition of “Hotel” in Section 3.20.020 to include “Short-Term Rental” "“’Hotel’ means any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, short-term rental or other similar structure or portion thereof.” SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 6 In additional to these changes to existing SRMC sections, the proposed ordinance creates a new chapter, Chapter 10.110- Short-Term Rental Program. While this chapter establishes the Short-Term Rental Program, the program policies and procedures are included in the proposed resolution discussed in the following section. Staff has reviewed this ordinance and finds that its adoption would be exempt from the California Environmental Quality Act (CEQA) pursuant to section 15301 of the State CEQA Guidelines for projects for the operation, repair, maintenance, or minor alteration of existing structures or facilities. 2. Proposed Resolution- Program Policies and Procedures The proposed resolution in this report provides the policies and procedures for the Short-Term Rental Program established in the proposed ordinance, becoming effective January 1st, 2020. These regulations include: i. Property Eligibility a. Eligible Properties- A property must meet the following four criteria to be eligible for short- term rental use: 1) All or a portion of 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 2 4) the Permanent Resident has registered the Residential Unit and maintains good standing with the City of San Rafael These restrictions are intended to prevent commercial short-term rental use, or incentives individuals from renting second homes or investment properties for short-term use. These four criteria in effect restrict short-term rentals to properties where the host is a real person and they can prove the property is their primary residence. As proof of primary residency, the host will need to provide 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. b. Ineligible Properties- The program regulations restrict the following from being used as a short-term rental: 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 storage areas, and 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- The proposed program regulations allow for short-term rentals in Multi-family properties as well as on lots with single family homes and 2 A natural person refers to the legal definition of a person that is an individual human being as opposed to a private business entity or public organization. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 7 an accessory structure, second unit, or junior second unit. These units must still meet the primary residency requirements. Additionally, the proposed regulations restrict the ability of the permanent resident from offering as a short-term rental an entire single home or residential unit and the accessory structure at the same time. The permanent resident would have to choose between renting the accessory structures or the main home. However, if the permanent resident chose to rent out a portion or a room in the main house—rather than the entire main home—they would be allowed to rent out the accessory structure. ii. Program Requirements a. Occupancy Limits- The proposed program regulations limit the occupancy of any short- term rental to two individuals per bedroom plus two additional individuals if the rental provides additional living space. For instance, a studio could accommodate two individuals and a one-bedroom apartment could accommodate four individuals. In addition, occupancy would also be limited to number of people who could be accommodated by the availability of designated off-street parking on the property. In no instance could a short-term rental’s occupancy be greater than the number of vehicles the property could accommodate through the designated off-street parking requirements described below. b. Off-Street Parking Requirements- The proposed program regulations require short-term rentals to provide sufficient designated off -street parking to accommodate their occupants. The proposed program regulations stipulate that one designated off-street parking space must be provided for every four guests. In addition to the Parking Plan described above, for properties with multiple residential units used as short-term rentals, each rental listing must have its own designated off-street parking. c. Registration- The proposed program regulations require short-term rentals to be registered with the City and the registration renewed annually. As part of the registration and renewal, the permanent resident will need to provide the following: 1) Property Information including documentation of the above requirements, property details, and a 24-hour local contact 2) Proof of a self-certified property inspection, and from properties in a Wildland-Urban Interface, the registration must also include a vegetation inspection 3) Documentation of interior signage providing local contact information, parking and occupancy requirements, garbage disposal and Noise Ordinance requirements, and Emergency Information d. Fee- As described in the Fiscal Impact section, registrants will be charged an initial fee of $170 and a renewal fee of $135. e. TOT Collection & Remittance- The program regulations require Hosts to collect and remit Transient Occupancy Taxes. As described in the August 5 staff report, staff will be working with Airbnb to execute a Voluntary Compliance Agreement to automate the collection and remittance process through the Airbnb platform for rentals using Airbnb. For other platforms, Staff will reach out to those companies about setting up similar agreements. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 8 f. Reporting- To maintain good standing, a host will be required to submit a quarterly report to the Community Development Department beginning on January 1, April 1, July 1, and October 1 of each year, regarding the number of days listings have been rented. g. Audit- The program regulations include an annual audit of five percent of registrations for program compliance. This audit will include a registration review, property inspection, and TOT payment review. iii. Enforcement a. Violations & Appeals- The program regulations will utilize the existing administrative enforcement procedures in the SRMC for handling complaints, violations, and appeals. Note, as part of the proposed expanded contract with Host Compliance, a 24/7 Complaint Hotline will be available to the public to aide in handling complaints. b. Revocation of Registration- The program regulations allow for the Community Development Director to revoke a program registration at any time for the following reasons: 1) The property has not collected or remitted their TOT 2) The property has received three verified violations over a two-year period, also known as a three-strikes policy 3) The property registration included misrepresented or omitted information 4) The registration was transferred or attempted to be transferred to another individual COMMUNITY OUTREACH: A public notice of this meeting was mailed to stakeholders, agencies and special interest groups 15 days prior to this meeting (Attachment C). Those noticed included, among others, all neighborhood associations, the Federation of San Rafael Neighborhoods, housing advocacy groups, and the San Rafael Chamber of Commerce. Extensive community outreach has been conducted since the City Council first considered a potential Short-Term Rental program. This outreach is described in the February 19 and August 5 staff reports. FISCAL IMPACT: The establishment of a Short-Term Rental Program through the proposed ordinance and resolution in this staff report will have a fiscal impact on the City (Table 1). Staff estimates first-year program costs of approximately $41,000 and ongoing program costs of approximately $33,000 annually. Staff proposes cost-recovering program fees of $170 per short-term rental for initial registrations and $135 per short- term rental for annual renewals. Staff estimates additional TOT revenue ranging from approximately $18,000 to $105,000 annually, with an average of approximately $39,000 annually. Table 1. Estimated Annual Short-Term Rental Program Balance Year 1- Fees Ongoing- Fees TOT Year 1 Ongoing Year 1 Ongoing Low-End $40,807 $32,745 $18,051 $40,807 $32,745 $18,051 $18,051 Mean $40,807 $32,745 $39,738 $40,807 $32,745 $39,738 $39,738 High-End $40,807 $32,745 $105,183 $40,807 $32,745 $105,183 $105,183 Annual Balance * Program fees are calculated as cost-recovering for program expenses. If fees are collected, Year 1 and Ongoing program balances would be the same as they reflect the TOT Revenue collected that year. Projection Revenue Expenditures SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 9 A. Program Costs 1. Technology Requirements Currently, the City has a contract with Host Compliance to perform STR address identification and monitoring. This compliance monitoring software is a highly cost-effective tool for enforcement of any STR policy as it provides a wide range of services at a cost significantly less to a jurisdiction than developing and maintaining the services internally. These services include the following: • STR Address Identification- an online dashboard with address and rental information for all identifiable STRs; • Compliance Monitoring- outreach and monitoring of STR listings for compliance with a jurisdictions zoning and regulations; • Permitting and Registration- online and mobile registration or permitting including collection of payments, signatures, and required documents; • Rental Activity Monitoring and Tax Collection- monitoring of STR listing rental activity and support for TOT collection; • Complaint Hotline- 24/7 staffed hotline for neighbors to report non-emergency STR problems. The City’s current contract is $2,829 until January 9, 2019 for STR address identification and monitoring. This amount reflects an annual rate of $8,487 prorated for four months. An expanded Host Compliance contract to include all the services listed above would cost $23,949 annually for a two-year contract. If the City decided to enter into a three-year contract, the contract amount would be reduced by ten (10) percent to $21,554 annually. 2. Staffing Requirements Staff estimates first-year costs for implementation of the Short-Term Rental program at approximately $41,000. These staffing costs include first-year program management, permit processing and technology development. Additionally, these costs include staff time for conducting an STR workshop and for the City Attorney to develop a Voluntary Compliance Agreement with STR platforms to collect and remit TOT through the platform on behalf of hosts. Staff estimates on-going costs of approximately $33,000 (Table 2). These costs would cover expanding STR Compliance Monitoring Services as well as on-going staffing costs. Staff will be able to limit hours needed for administrative tasks by utilizing the Host Compliance software. The increase in hours associated with a new program is anticipated to be covered by existing staffing levels. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 10 Table 2. Estimated Short-Term Rental Program Costs 3. Program Fees Based upon the estimated costs associated with Compliance Monitoring Software and Staffing, staff estimates a registration fee, paid at the time of initial registration, of $170 for the Short-Term Rental Program. Staff estimates renewal fee, paid every year after initial registration, of $135 based upon an average of 240 units active in the last 12 months. These fee amounts would be set to be cost-recovering of program costs including Host Compliance services and direct staffing costs. By resolution, the City Council would be able to adjust these fee amounts annually based upon program costs and changes to number of active short-term rentals in San Rafael. 4. Transient Occupant Tax Staff analyzed annual balances for all options given the low, mean, and high estimate for TOT revenue collection as presented in the February 19 Staff Report. Staff estimates that the City could collect between approximately $18,000 and 105,000 in TOT in a given year. On average, TOT collection could be approximately $39,000 annually. When combined with cost-recovering fees, the estimated program balance would be the same as the TOT collected, ranging between a net positive balance of $18,000 and $105,000 with an average of $39,000 annually. One Time New Existing New Host Compliance Services Address Identification $8,487 Mobile Registration $5,000 Compliance Monitoring $3,339 Rental Activity Monitoring $4,452 24/7 Dedicated Hotline $2,671 Host Compliance Sub-total Implementation Staffing (One-Time) Program Management $48.32 80 $3,866 City Attorney $114.84 10 $1,148 STR Workshop $67.76 8 $542 Technology development $67.76 20 $1,355 Permit Processing $57.56 20 $1,151 Community Development Staffing (On-going) Program Management $48.32 80 $3,866 Code Enforcement $48.32 20 $966 Annual Audit $48.32 20 $966 Finance Staffing (On-going) Business License & TOT Processing $60.24 20 $1,205 $1,205 Business License & TOT Review $89.63 20 $1,793 $1,793 One-Time Staffing Subtotal $8,062 On-Going Staffing Subtotal Year One Total $40,807 On-GoingTotal Est. Annual Hours On-GoingEst. Hourly Rate $23,949 $8,796 $32,745 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 11 OPTIONS: The City Council has the following options to consider on the matter: • Introduce and pass the ordinance to print and adopt the resolution creating a “Short-Term Rental Program”. • Introduce and pass to print as amended an ordinance and/or resolution and direct staff to return with the amended ordinance and/or resolution at a date certain for vote. • Direct staff to return with more information. • Take no action. RECOMMENDED ACTION: 1. Conduct a public hearing introducing an ordinance amending San Rafael Municipal Code Section 14.03.030 and Section 3.20.020, and adding new Chapter 10.110 entitled “Short-Term Rental Program” and pass the ordinance to print. 2. Adopt a resolution creating a “Short-Term Rental Program”. ATTACHMENTS: 1. Ordinance 2. Resolution ORDINANCE NO. 1976 AN ORDINANCE OF THE CITY OF SAN RAFAEL CITY COUNCIL AMENDING SECTION 14.03.030 AND SECTION 3.20.020 OF THE SAN RAFAEL MUNICIPAL CODE, AND ADDING NEW CHAPTER 10.110 ENTITLED “SHORT-TERM RENTAL PROGRAM” THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS: DIVISION 1. FINDINGS. 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 on the impacts of short-term rentals on the City’s housing stock, and of the use of accessory structures as short-term rentals; 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 hosts 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 to present 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; WHEREAS, on June 18, 2019, staff met with the San Rafael Chamber of Commerce Government Affairs Committee and made 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, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS: DIVISION 2. AMENDMENTS TO MUNICIPAL CODE. A. Section 14.03.030 of the San Rafael Municipal Code is hereby amended by amending the definitions of “Hotel” and “Home Occupation” and adding a definition of “short-term rental” as follows (strike-outs indicate deletions, double-underlining indicates additions): "Hotel" means any building or portion thereof containing multiple guest rooms designed for compensation, primarily for the accommodation of transient travelers, with eating, drinking, banquet and recreational facilities related to the hotel use, but not including those facilities defined as residential care facilities. "Home occupation" means an accessory use of a dwelling unit, conducted entirely within the dwelling unit, carried on by one (1) or more persons, all of whom reside within the dwelling unit, as further defined in Section 14.16.220, Home occupations, but not including those facilities defined as short-term rentals in Section 14.03.030 of this Code. “Short-term rental” means the rental of all or a portion of a dwelling unit for less than 30 days consecutive tenancy. B. Section 3.20.020 of the San Rafael Municipal Code is hereby amended to amend the definition of “Hotel” as follows (strike-outs indicate deletions, double-underlining indicates additions): "“’Hotel’ means any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, short-term rental or other similar structure or portion thereof.” C. Title 10 of the San Rafael Municipal Code, entitled “Businesses, Professions, Occupations, Industries and Trades” is hereby amended by adding new Chapter 10.110, entitled “Short-Term Rental Program” to read in its entirety as follows: 10.110.010 Purpose and intent Notwithstanding any other provision of this Title, all Short-Term Rentals as defined in Section 14.03.030 of this Code, as may be amended or superseded, are subject to the policies and procedures specified in the San Rafael City Council’s “Policies and Procedures for the Administration of the ‘Short Term Rental Program’ as set forth in San Rafael Municipal Code Chapter 10.110” (“Program”), as adopted and amended from time to time by City Council resolution, and all Short-Term Rentals shall comply with such Policy. 10.110.020 Violations a public nuisance; penalties, nuisance abatement, and other remedies Any Short-Term Rental operated, conducted, or maintained contrary to the provisions of this chapter and/or the Program shall be, and the same is hereby declared to be, unlawful and a public nuisance, and the City Attorney may, in addition to or in lieu of prosecuting a criminal action hereunder, commence an action or actions, proceeding or proceedings, for the abatement, removal and enjoinment thereof, in the manner provided by law. Such remedies shall be in addition to any other judicial and administrative penalties and remedies available to the City under Chapters 1.40, 1.42, 1.44, or 1.46 of this code, or under State law. DIVISION 3. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). The City Council finds that adoption of this Ordinance is exempt from the California Environmental Quality Act ("CEQA") pursuant to section 15301 of the State CEQA Guidelines for operation, repair, maintenance, or minor alteration of existing structures or facilities. DIVISION 4. SEVERABILITY. If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The Council hereby declares that it would have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid. DIVISION 5. EFFECTIVE DATE; PUBLICATION. This Ordinance shall be published once, in full or in summary form, before its final passage, in a newspaper of general circulation, published, and circulated in the City of San Rafael, and shall be in full force and effect January 1, 2020. If published in summary form, the summary shall also be published within fifteen (15) days after the adoption, together with the names of those Councilmembers voting for or against same, in a newspaper of general circulation published and circulated in the City of San Rafael, County of Marin, State of California. GARY O. PHILLIPS, Mayor ATTEST: LINDSAY LARA, City Clerk The foregoing Ordinance No. 1976 was introduced at a Regular Meeting of the City Council of the City of San Rafael, held on the 4th day of November 2019 and ordered passed to print by the following vote, to wit: AYES: Councilmembers: Bushey, Colin, Gamblin, McCullough & Mayor Phillips NOES: Councilmembers: None ABSENT: Councilmembers: None and will come up for adoption as an Ordinance of the City of San Rafael at a Regular Meeting of the Council to be held on the 18th day of November 2019. _______ LINDSAY LARA, City Clerk 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 Legal No. Marin Independent Journal 4000 Civic Center Drive, Suite 301 San Rafael, CA 94903 415-382-7335 legals@marinij.com I am a citizen of the United States and a resident of the County aforesaid: I am over the age of eighteen years, and not a party to or interested in the above matter. I am the principal clerk of the printer of the MARIN INDEPENDENT JOURNAL, a newspaper of general circulation, printed and published daily in the County of Marin, and which newspaper has been adjudged a newspaper of general circulation by the Superior Court of the County of Marin, State of California, under date of FEBRUARY 7, 1955, CASE NUMBER 25566; that the notice, of which the annexed is a printed copy (set in type not smaller than nonpareil), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit: 10/18/2019 I certify (or declare) under the penalty of perjury that the foregoing is true and correct. Dated this 18th day of October, 2019. PROOF OF PUBLICATION (2015.5 C.C.P.) STATE OF CALIFORNIA County of Marin Signature PROOF OF PUBLICATION 0006413147 2070419 CITY OF SAN RAFAEL CITY OF SAN RAFAEL CITY CLERK, ROOM 209 1400 FIFTH AVENUE, SAN RAFAEL, CA 94901 SAN RAFAEL, CA 94915-1560 r.BP7-11/10/16 1 CITY OF SAN RAFAEL NOTICE OF PUBLIC HEARING You are invited to attend the City Council hearing on the following project: PROJECT: SHORT-TERM RENTALS-ORDINANCE & POLICY RESOLUTION. As follow-up to an infor- mational report presented to the San Rafael City Council on August 5, 2019, a draft ordi- nance and policy resolution have been pre- pared addressing short-term rentals. Specifi- cally, the ordinance and policy resolution pro- pose to establish regulations for permitting, administering, enforcing, and taxing short- term rentals. A webpa~e has been created on the City's website, which includes two "white papers" on the topic of short-term rentals. This webpage can be accessed at: https:// www.cityofsanrafael.org/short-term-rentals/. City File No . P18-013 As required by state law, the project's poten- tial environmental impacts have been as- sessed. The Community Development Depart- ment staff recommends that this project will not have a significant effect on the environ- ment as it is covered by the general rule, pur- suant to CEQA Guidelines Section 15061(b)(3), and is not subject to environmental review. HEARING DATE: Monday, November 4, 2019 at 7:00 P.M. LOCATION: San Rafael City Hall - City Council Chambers 1400 Fifth Avenue San Rafael, California WHAT WILL HAPPEN: You can comment on the project. The City Council w ill consider all pub- lic testimony and decide whether to adopt the amendments to the Municipal Code and the policy resolution. IF YOU CANNOT ATTEND: You can send a letter to the City Clerk, City of San Rafael, 1400 5th ft~a~~J:1~tiilc1~~~~s~~r1~~~t:o%~~~~~~~~1so hand deliver a letter prior to the public hear- ing. FOR MORE INFORMATION: Contact Ethan Guy, Principal Analyst at (41S) 458-2392 or ethan.guy@cityofsanrafael.org. You can also view the staff report after 5:00 p.m. on the Friday before the meetin_g at http://www.cityofsanrafael.org/meetings. SAN RAFAEL CITY COUNCIL /s/ Lindsay Lara Lindsay Lara CITY CLERK At the above time and place, all letters re- ceived will be noted and all interested parties will be heard. If you challenge in court the matter described above, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered at, or prior to, the above referenced public hearing (Government Code Section 65009 (b) (2)). Judicial review of an administrative decision of the City Council must be filed with the Court not later than the 90th day following the date of the Council's decision. (Code of Civil Proce- dure Section 1094.6) No . 1326 Oct. 18, 2019 October 30, 2019 Mayor Gary Phillips Members of the San Rafael City Council 1400 Fifth Ave Room 203 San Rafael, CA 94901 RE: Short Term Rentals with shared driveways Dear Mayor Phillips and Members of the City Council : We would like to share with you a problem we are having at our personal residence which should be a concern for other homeowners, neighborhoods, and the City of San Rafael. We live at in the Montecito neighborhood and have owned our home for over 40 years. We share a driveway with our neighbor at -For over two years our neighbor has been operating two short term rental (STA) seven days a week and all year long. The private driveway we share is steep and narrow and at the top has very little room for parking and maneuvering. The driveway is difficult to negotiate and over the years car damage has resulted in replacing several retaining wall posts, tow trucks to remove cars that have gone over the edge and most recently damage to the edge causing over $3000.00 dollars in repairs. We no longer have any privacy in our own home. There are strange cars and people driving and walking up and down our driveway all hours of the day and night. Their headlights are directed at our front windows and we hear car horns, people talking loudly and dragging their suitcases. They use our trash cans and have damaged our driveway. We realize all STA are not the same and those with shared drive ways usually involve easements which can lead to complicated liability and legal issues. These guests are complete strangers and are not familiar with our driveway or the surrounding streets or neighborhood. As a home owner we have the right to personal enjoyment of our property which we no longer have. Our message for the City of San Rafael is to regulate STA, requiring permits, business licensing, payment of TOT ta,ces and penalties for violations. Because of our own personal experience and that of others with shared driveways, we also urge the Council to please ban STA on shared driveways with single family homes. Please help to protect other homeowners from the hardships we have had to endure. Thank you for your careful consideration . Linda Kruger & Charlie Comella Dear Mayor Phillips and Council Members: Regarding the ordinance to regulate short term rentals in San Rafael, please consider disallowing such rentals that are of, or within, single family homes on shared driveways. When one shares a driveway with a neighbor (or in my case, three neighbors), there is no buffer between the actions of one neighbor and the impact on another neighbor. The activities of one neighbor have profound effects on the lifestyles of the other neighbors. All the immediate concerns wrought by short term rentals--noise, parties, occupants who are unfamiliar with the environs, garbage and litter— are exacerbated when they occur on a shared driveway. In our case in particular, the driveway is very narrow and travels along the edge of a steep embankment. It is a fragile environment. Additionally, it is a tight squeeze with little room for turnaround at the end. One neighbor backs up the driveway to avoid this issue. It is difficult to see how someone doing it for the first time would be successful at it. I have had my house hit twice by vehicles, my fence and wall hit, and tree limbs shorn more than once! That is without the additional problems of egress by short term renters. There are issues with all short term rentals—affordable housing is taken off the market and converted into higher priced vacation rentals; the cost of all housing increases as owners seek to monetize their homes; commercial endeavors insinuate themselves into residential areas; an enforcement game of “cat and mouse” ensues. If, on balance, you believe that the good of short term rentals outweighs these issues (I have my doubts), then please at least protect those of us who are especially vulnerable to the additional, negative impacts of short term rentals, i.e., those of us who live in single family homes on shared driveways. Thank you for consideration of this matter, Daniel Sonnet -