Short-term rental of property (or the advertisement, offer, or facilitation, of such rental), is prohibited unless conducted in strict compliance with the requirements of this chapter by an owner who possesses a valid short-term rental permit. No person or entity shall offer, advertise or facilitate the short-term rental of property in the city unless the owner possesses a valid short-term rental permit for its rental. Any offer or advertisement for the short-term rental of property in the city that does not contain a valid short-term rental permit number, or which the city identifies as illegal, shall be immediately removed.

A separate short-term rental permit is required for every legal lot or condominium unit (if a condominium unit is to be rented).

Application Contents. In addition to any other information prescribed by the city manager, an application for a short-term rental permit shall include the following information:

Review and Approval. Short-term rental permits shall be subject to the approval of the city manager or designee.

Duration. Short-term rental permits shall be issued for one year and must be renewed annually.

Duty to Amend. If there are any material changes to the information submitted on a short-term rental permit application, the owner shall submit an amended application on a form to be provided by the city and signed by the owner under penalty of perjury within 30 days of any such changes, or immediately for any change in the owner's agent contact information. For the purposes of this section, any change to the information required to be included in a short-term rental permit application by subsection C of this section shall constitute a material change. A permittee may not cure a violation of this chapter by seeking to amend a short-term rental permit after a violation occurs; short-term rental of a property may only be conducted as specifically authorized by an active short-term rental permit.

Fees. The amount of any fees to be collected pursuant to the provisions of this chapter shall be established by resolution of the city council from time to time.

Nothing in this chapter shall limit the ability of a property owner, CC&Rs, or homeowners association or similar association from prohibiting or further limiting the short-term rental of property; such limitation shall be allowed.

Nothing in this chapter shall prohibit the operation of a hotel, motel or bed and breakfast inn where such use is permitted.

The city manager or designee may promulgate regulations to facilitate the purposes of this chapter.

The following requirements shall be strictly adhered to by those conducting the short-term rental of property:

No person shall offer, facilitate an offer, or allow short-term rental of property in any location not specifically identified and approved on a short-term rental permit or in a location not approved for use as a dwelling unit, including, but not limited to, any vehicle, trailer, tent, storage shed or garage.

As of January 1, 2023, short-term rental of property is prohibited on any property unless the owner of the property: (1) has obtained a valid OWTS operating permit for the property pursuant to Chapter 15.44; or (2) has entered a compliance agreement with the city excusing such compliance, and is in compliance with the compliance agreement and not in default or breach. In addition to all other remedies, a violation of this requirement shall provide grounds for denial or revocation of a short-term rental permit, or the renewal of such permit.

Grounds for Denial or Revocation. The city manager or designee shall not approve an application for a short-term rental permit (or renewal of such permit), or may revoke such permit, if any of the following findings are made:

Renewal Application Deadlines. An application to renew a short-term rental permit must be received by the city clerk not less than 30 days prior to the expiration of the short-term rental permit. Applications received after the deadline but before expiration of the permit may be accepted at the discretion of the city manager or designee.

Applications for renewal shall be in a form required by the city manager and include updates of all information required or submitted for the permit.

No permit shall be renewed unless all city fees and taxes owed by the applicant are paid in full, including the renewal fee.

If an application for a short-term rental permit (or an application for renewal of such permit) is denied, the city manager or designee shall not approve a new application for that applicant nor for that location for a 12 month period after the denial unless the city manager or designee determines that the reason for the denial has been cured and no longer exists. If the reason for denial is due to: (1) the applicant knowingly making any false, misleading or fraudulent statement of material fact in the application, or in any report or statement required to be filed that is related to the application; (2) violation of Section 17.55.030(A)(10); or (3) two or more citation for violation of the city's noise ordinance in a period of 12 consecutive months, a new application shall not be approved for a period of at least 12 months from the date of the last violation or short-term rental of the property, whichever is later.

If a short-term rental permit is revoked the short-term rental of the property must cease immediately and shall not be permitted for a period of 12 months from the date of revocation and after a new short-term rental permit is issued.

The short-term rental of property (or advertisement, offer, or facilitation, of such rental) after denial or revocation of a short-term rental permit shall (in addition to any other penalty) result in the property and applicant being ineligible to conduct the short-term rental of property (or apply for a short-term rental permit) for an additional six month period for each such rental; such period is in addition to the prohibitions listed in subsections A and B above.

No fee refunds shall be issued to any permittee whose short-term rental permit is revoked.

The denial of an application for a short-term rental permit, the renewal of such permit, or the revocation of such permit may be appealed by submitting a written appeal form detailing the basis for the appeal and any additional documentation the appellant would like to be considered.

The completed appeal form must be delivered to the city clerk within 30 calendar days from the date of the letter denying the application (for short-term rental permit or renewal thereof) or revoking the short-term rental permit was sent.

Failure to deliver the completed appeal form as required by subsection B above the denial or revocation shall be deemed final.

While the appeals process is pending, the appellant is prohibited from the short-term rental of property and the short-term rental permit at issue shall not be valid.

Once a timely and complete appeal form has been received by the city clerk a hearing on the matter shall be scheduled before the planning commission in accordance with the procedure detailed in Section 17.04.220 of this code. The decision of the planning commission shall be appealable to the city council in accordance with the procedure detailed in Section 17.04.220 of this code.

Hosting platforms shall be responsible for collecting all applicable transient occupancy tax and remitting the same to the city. The hosting platform shall be considered an agent of the owner for purposes of transient occupancy tax collections and remittance responsibilities as set forth in Chapter 3.24 of this code. Should a hosting platform fail to fulfill its responsibilities under this section the owner shall remain responsible for collection and remittance of the transient occupancy tax the hosting platform failed to collect and/or remit to the city.

Subject to applicable laws, hosting platforms shall disclose to the city on a regular basis each short-term rental listing located in the city, the names of the owner for each such listing, the address of each such listing, the length of stay for each such listing and the price paid for each stay.

Hosting platforms shall not complete any booking transaction for any residential property or unit unless it is listed on the city's registry of properties with valid short-term rental permits at the time the hosting platform receives a fee for the booking transaction.

Hosting platforms shall not collect or receive a fee, directly or indirectly through an agent or intermediary, for facilitating or providing services ancillary to an unpermitted short-term rental, including, but not limited to, insurance, concierge services, catering, restaurant bookings, tours, guide services, entertainment, cleaning, property management, or maintenance of the residential property or unit.

Safe Harbor. A hosting platform operating exclusively on the Internet, which operates incompliance with subsections A, B, C and D above, shall be presumed to be incompliance with this chapter. If technical issues pose a substantial obstacle to compliance with this section, a hosting platform may also satisfy these obligations pursuant to a compliance agreement with the city that prevents booking transactions for unpermitted short-term rentals, collects all transient occupancy tax due, and complies with the disclosure requirements of this section.

The provisions of this section shall be interpreted in accordance with otherwise applicable state and federal law(s) and will not apply if determined by the city to be in violation of, or preempted by, any such law(s).

In addition to the other penalties and remedies available to the city, violations of this chapter shall be subject to the administrative citation provisions of Chapter 1.10, except that any violation of Section 17.55.010(A) shall be subject to a fine of $1,000 per day or violation, or twice the advertised short-term rental's daily rental rate per day or violation, whichever is higher, and for all other violations an owner shall be subject to a fine of $500 per day or violation, or the short-term rental's advertised daily rate per day or violation, whichever is higher.

The short-term rental permit holder shall be held responsible for violations of the municipal code committed by guests at the property.

Any violation of this chapter shall constitute a separate offense for each and every day the violation occurs or persists.

These penalties and remedies are cumulative and in addition to any other penalties and remedies available to the city.