The purpose of the vacation rental overlay district is to establish vacation rentals as a permitted use in the vacation rental overlay district, to specify that they are only allowed in the vacation rental overlay district, and to provide opportunity for owners of residential units to be used as vacation rentals, as defined by Section 14.08. The intent is to provide adequate transient occupancy uses in areas serving the beach and downtown and to ensure that such uses are appropriately integrated with residential and commercial needs of the community. The vacation rental overlay district will allow owners of residential units to obtain a license to operate a vacation rental.

(Ord. No. 708, § 3, 4-24-2017)

The requirements of the vacation rental overlay district, as set forth in this chapter, shall apply to those parcels designated in the vacation rental overlay district, as shown on the adopted zoning map.

(Ord. No. 708, § 3, 4-24-2017)

No person shall rent, offer to rent, or advertise for rent a residential unit to another person or group for a vacation rental without a license approved and issued in a manner provided for by this chapter. Only owners of a residential unit are eligible to apply for and receive a vacation rental license. Licenses for operation of a short-term rental will be issued pursuant to an administrative policy developed by the city manager and/or his designee.

(Ord. No. 708, § 3, 4-24-2017)

Uses permitted in the vacation rental overlay district are as follows:

a.

Vacation rentals;

b.

Uses, buildings and accessory structures customarily incidental to the above uses; and

c.

All other uses as defined in the underlying zoning district.

(Ord. No. 708, § 3, 4-24-2017)

The provisions of the vacation rental overlay district shall apply to any parcel(s) subject to the vacation rental overlay district, as shown on the city's official zoning maps.

(Ord. No. 708, § 3, 4-24-2017)

All of the standards of the underlying residential district shall also apply to the vacation rental overlay district.

(Ord. No. 708, § 3, 4-24-2017)

Prior to renting, offering to rent or advertising the rental of a residential unit for a vacation rental, the property owner shall make an application to the city on a form provided by the city. The application shall be filed by the owner and include the following information:

a.

The full true name under which the business will be conducted.

b.

The address and assessor parcel number where the vacation rental is to be conducted. Where multiple units are located on the same parcel, each unit's address shall be provided on a separate application.

c.

The owner's full, true name, mailing address, email address and telephone number.

d.

In the case that a separate management company or person shall assume responsibility of the vacation rental for the owner, the management company or contact person's name, phone number, mailing address and email address shall be provided in addition to the owner.

e.

A description of any other business to be operated on the same premises, or on adjoining premises, owned or controlled by the owner and/or applicant.

f.

Certificate of insurance evidencing that the residential unit being used as a vacation rental is covered by adequate and appropriate, including and not limited to fire, hazard and liability insurance.

g.

Vacation rentals proposed on parcels with no live-in, on-site manager, shall furnish the city with mailing labels of all neighboring owners and occupants addresses within one hundred feet (neighboring residents) of the parcel boundaries of the proposed vacation rental, in a format provided by the city. Upon issuance of a vacation rental license, the city will send a written notice to neighboring residents notifying them that the premises will be used as a vacation rental and will provide the name, address, and telephone number of both the owner and the person or property manager responsible for managing the vacation rental.

h.

An affidavit stating that the residential unit meets all applicable building, health and safety standards. The affidavit shall be on a form provided by the city and shall be signed by the owner of the residential unit.

(Ord. No. 708, § 3, 4-24-2017)

The following minimum requirements shall apply to the operation of all vacation rentals:

a.

The owner or property manager must live or work within thirty miles of the premises and be able to respond to tenant and/or public concerns about the vacation rental at all times during which a residential unit is being rented as such.

b.

All advertisements for the vacation rental shall list the city's vacation rental license number and the current transient occupancy tax rate which applies to the rental of the unit.

c.

The owner shall maintain adequate and appropriate, including and not limited to fire, hazard and liability insurance.

d.

The property shall be provided with adequate waste collection facilities at all times. Waste bins and refuse shall not be left within public view, except in proper containers for the purpose of collection on the scheduled collection day(s). The waste collection schedule and information about recycling and green waste separation and disposal shall be included in the rental agreement and posted conspicuously in the rental unit.

e.

The residential unit shall not be rented or used for events, e.g., weddings, commercial activities or sales events.

f.

Occupants of the vacation rental shall be prohibited from creating unreasonable noise or disturbances, engaging in disorderly conduct or violating provisions of federal, state or local law.

g.

At all times a unit is in use as a vacation rental, the owner's or property manager's contact information shall be posted on the outside wall near the entrance of the unit, in a format provided by the city.

h.

At all times a unit is in use as a vacation rental, a notice shall be posted on the interior of the front door of the vacation rental, in a form approved by the city, which notes the vacation rental license number, transient occupancy tax rate, property owner or property manager contact information, and any additional information as required by the city as a part of the vacation rental license.

i.

The owner shall maintain an active business license, transient occupancy tax certificate and any other applicable licenses and permits, in addition to the vacation rental license, pursuant to this code, at all times that the residential unit is used or advertised as a vacation rental. A copy of the business license shall be posted on the interior of the front door of the residential unit.

j.

The maximum occupancy of a vacation rental shall be determined by the city and not exceed two occupants per unit, plus two occupants per bedroom. A bedroom is a room that is designed to be used as a sleeping room and for no other primary purpose and must meet the requirements of this code for such. The vacation rental license shall specify the maximum number of occupants allowed at the vacation rental.

k.

The owner shall by written agreement, limit the number of vehicles of occupants to the number designated in the vacation rental license issued by the city; the number of vehicles shall be determined by the city at the time of application, taking into consideration the number of available parking spaces on the site.

l.

A home occupation may not be conducted in any residential unit for which a license has been issued to use the residential unit as a vacation rental.

m.

The owner shall ensure that the vacation rental complies with all applicable codes regarding fire, building and safety, and all other relevant federal, state and local laws and ordinances.

n.

Availability of the rental unit to the public shall not be advertised on the premises.

o.

The city manager shall have the authority to impose additional operating standards, applicable to all vacation rentals, as necessary, to achieve the objectives of this title. A list of all additional standards shall be maintained and on file in the office of the city clerk and such offices as the city manager designates.

p.

Upon reasonable notice, each owner and agent or representative of any owner shall provide access to each vacation rental and any records related to the use and occupancy of the vacation rental to the city manager at any time during normal business hours, for the purpose of inspection or audit to determine that the objectives and conditions of this chapter are being fulfilled.

(Ord. No. 708, § 3, 4-24-2017)

The city shall consider the information included in a complete application in order to determine whether the issuance of the license for the vacation rental is consistent with the provisions of this chapter. Upon determination by the city that the following criteria have been met, the city shall approve the license:

a.

The number of licensed vacation rentals within the vacation rental overlay district do not to exceed the following area limits:

i.

Area A, as identified on the vacation rental overlay district map adopted as part of Ordinance 708 on April 25, 2016: fifty-five vacation rentals;

ii.

Area B, as identified on the vacation rental overlay district map adopted as part of Ordinance 708 on April 25, 2016: one hundred fifteen vacation rentals;

iii.

Area C, as identified on the vacation rental overlay district map adopted as part of Ordinance 708 on April 25, 2016: thirty vacation rentals;

iv.

Area D, as identified on the vacation rental overlay district map adopted as part of Ordinance 708 on April 25, 2016: eighteen vacation rentals.

b.

A license for a vacation rental use for the residential unit has not been revoked in the prior twenty-four month period;

c.

The premises or residential unit is not currently the subject of an active compliance order or administrative citation for a violation of this code;

d.

An administrative citation has not been issued, regarding a violation on the site, in the past twelve months;

e.

The property owner has demonstrated, through an application filed to the city, the ability to meet the requirements outlined in this chapter.

(Ord. No. 708, § 3, 4-24-2017)

All licenses for vacation rental uses shall be made on forms furnished by the community development department and shall be issued for one year. Licenses shall be issued for the period of time beginning on July 1st of each year and concluding on June 30th of the following year. Applications made during the year shall be issued for a prorated period to conclude on June 30th.

(Ord. No. 708, § 3, 4-24-2017)

The vacation rental license issued under this chapter shall be issued to the owner of record of the residential unit and no license may be assigned, transferred or loaned to any other person, entity, location or establishment.

(Ord. No. 708, § 3, 4-24-2017)

The vacation rental license shall be personal to the applicant/owner and shall automatically expire upon sale or transfer of the premises or residential unit, or if not renewed pursuant to Section 14.47.130. The license may be revoked for failure to comply with adopted standards, subject to the administrative and revocation procedures outlined in Section 14.47.150, unless otherwise specified by this chapter.

(Ord. No. 708, § 3, 4-24-2017)

The vacation rental license shall automatically renew upon payment of the business license tax renewal fee and all required transient occupancy tax remittance documents associated with the vacation rental license. Nonrenewal prior to the expiration date will result in expiration of the vacation rental license and will require that a new application be made subject to Sections 14.47.070 and 14.47.090 and all other requirements of this code.

(Ord. No. 708, § 3, 4-24-2017)

a.

Where the owner of a premises or residential unit used and occupied as a vacation rental pursuant to a vacation rental license approved and issued in the manner provided by this chapter, fails to remit transient occupancy tax for a period of twenty-four consecutive months or greater as determined by the city, the vacation rental license shall be deemed to have automatically expired and shall be forfeited.

b.

Where the owner of a premises or residential unit used and occupied as a vacation rental pursuant to a vacation rental license approved and issued in the manner provided by this chapter intends to cease such use and abandon the vacation rental license for the residential unit, the owner shall promptly cause a notice of cessation to be filed with the city. The vacation rental license for the unit shall expire immediately upon receipt by the city of the notice of cessation.

(Ord. No. 708, § 3, 4-24-2017)

A vacation rental license issued under the provisions of this chapter may be revoked by the city manager or his/her designee after notice and hearing, as provided in Section 14.47.160 below, for any of the following reasons:

a.

Fraud, misrepresentation or false statement contained in the application;

b.

Fraud, misrepresentation or false statement made in the course of carrying on a vacation rental as regulated by this chapter;

c.

Any violation of any of the provisions of this chapter or of any other provision of this code; or

d.

Any violation of any provision of federal, state or local laws.

(Ord. No. 708, § 3, 4-24-2017)

Before revoking a vacation rental license, the city manager or his/her designee shall give the owner reasonable notice in writing of the proposed revocation and of the grounds thereunder, and also of the time and place at which the holder of the vacation rental license will be given a reasonable opportunity to show cause why the vacation rental license should not be revoked. The notice may be served personally upon the owner or may be mailed, postage prepaid, to the owner, at the last known address or at any address shown upon the application, at least ten days prior to the date of the hearing. Upon conclusion of the hearing, the city manager or his/her designee may, for any of the grounds set forth in Section 14.47.150, revoke the license.

(Ord. No. 708, § 3, 4-24-2017)

Any person whose application has been denied by the city manager or his/her designee or any person who has had a vacation rental license revoked by the city manager or his/her designee shall have the right to an administrative appeal before the city manager or his/her designee. Any unfavorable decision by the city manager may be appealed in writing, in a form provided by the city, stating the grounds therefor, within ten days of the decision, to the planning commission. The planning commission shall hold a hearing thereon within a reasonable time and the decision of the planning commission shall be final. Appeals shall be filed as outlined in Section 14.78.

(Ord. No. 708, § 3, 4-24-2017)

No application shall be processed and no vacation rental license shall be issued under the provisions of this chapter unless the applicant has paid, unless exempted, the fees as set forth in the schedule of fees established by resolution of the city council.

(Ord. No. 708, § 3, 4-24-2017)

A nonconforming vacation rental is a vacation rental licensed by the city that is located outside of the vacation rental overlay district and was lawfully established in the PRD planned residential zone district prior to the effective date of this chapter. Notwithstanding any other law or provision of this code, nonconforming vacation rentals shall terminate automatically within five years of the effective date of this chapter. A nonconforming vacation rental shall be subject to and shall follow the licensing provisions of this chapter with the exception of Section 14.47.090(a).

To qualify as a nonconforming vacation rental, all of the following shall be satisfied:

a.

The owner demonstrates, with financial evidence acceptable to the city, that the residential unit has been used regularly and continually as a vacation rental in the twenty-four months prior to October 26, 2015;

b.

The owner demonstrates, with financial evidence acceptable to the city, that s/he has successfully transmitted all transient occupancy taxes and business license fees to the city in the twenty-four months prior to October 26, 2015; and

c.

The property had been continually licensed with the city as a vacation rental over the twenty-four months prior to October 26, 2015.

(Ord. No. 708, § 3, 4-24-2017)

All violations of this chapter may be filed as either a misdemeanor or infraction, as determined by the city attorney, pursuant to Section 1.08.010.

(Ord. No. 708, § 3, 4-24-2017)

Violations of this chapter shall be punishable as provided under Chapter 1.08 of this code.

(Ord. No. 708, § 3, 4-24-2017)

The requirements of this chapter shall be in addition to any license, permit, or fee required under any other provision of this code. The issuance of any license, permit, or fee pursuant to this chapter shall not relieve any person of the obligation to comply with all other provisions of this code pertaining to the use and occupancy of the vacation rental unit or the property on which it is located.

(Ord. No. 708, § 3, 4-24-2017)

Any person who has suffered, or alleges to have suffered, damage to person or property because of a violation of this chapter may bring an action for money damages and any other appropriate relief in a court of competent jurisdiction against the party alleged to have violated this chapter. Nothing herein shall be deemed or construed to create any right of action against the city or any of its officers, employees, or agents. The sole purpose and intent of this section is to create a right of action between private parties, entities and interests, which are or may be impacted or affected by various aspects of vacation home rentals within the city.

(Ord. No. 708, § 3, 4-24-2017)

The city manager or his/her designee, shall have the authority to develop administrative policies to implement the intent of this chapter. The city council may, from time to time, consider modifications to the administrative policies.

(Ord. No. 708, § 3, 4-24-2017)