Short-Term Rental Use Permit Required. Short-term rental uses shall be permitted subject to the requirements of this chapter, including compliance with the operational standards, registration, transient occupancy tax payments, business license and recordkeeping obligations required under the Code. A separate Short-Term Rental Use Permit shall be required and maintained in good standing for each parcel in which a short-term rental is located. Short-term Rental Use Permits shall be renewed every three years. The issuance of any permit pursuant to this chapter does not relieve the owner of the obligation to comply with the other provisions of this Code pertaining to the use and occupancy of the short-term rental or the property in which it is located.

Use Requirements. Each short-term rental parcel shall be used and maintained in a manner consistent with the character of the neighborhood in which it is located; shall not impair the desirability of investment or occupation of the surrounding neighborhood; and shall not have displayed thereon any sign that indicates the property is used or available for short-term rental purposes. The maximum number of occupants 18 or older in age authorized to stay overnight at any short-term rental parcel shall be limited to two persons per bedroom, plus two additional adults (minor children do not count towards allowed capacity).

Transient Occupancy Tax. All Short-Term Rental Use Permits shall be subject to the transient occupancy tax pursuant to Chapter 3.30 of the Code.

Business License Required. All short-term rental operators must obtain and maintain a business license pursuant to Chapter 5.02 of the Code.

Exemption. The provisions of this chapter shall not apply to the operation of any lawfully established bed and breakfast inn, motel, hotel, or timeshare development, subject to applicable provisions of this Code.

Application process. An application for a Short-Term Rental Use Permit shall be submitted by the Operator to the Planning Director. Each Short-Term Rental Use Permit application shall be accompanied by a nonrefundable Short-Term Rental Use Permit fee and other fees as set by resolution of the City Council. Permits and fees required by this chapter are in addition to any license, permit, certificate, or fee required by any other chapter of this Code. Each application shall at a minimum include the following:

Term and Scope of Short-Term Rental Use Permit. A Short-Term Rental use permit issued under this Chapter shall expire three years after the date of issuance, unless revoked or suspended earlier. Prior to the permit expiration date, an application for renewal of the Short-Term Rental Use Permit shall be submitted to the Planning Director, or his or her designee, containing information required by this chapter, and payment of the renewal fee, as set by resolution of the City Council.

Transferability. The Short-Term Rental Use Permit may be transferred to another operator provided that such third-party transferee meets the requirements of this section, subject to approval by the Planning Director.

Acceptance of Short-Term Rental Use Permit; No Vested Rights. Acceptance by an operator of a Short-Term Rental use permit shall constitute acknowledgment and acceptance of, and consent to: (1) the requirements and provisions of this chapter; and (2) the City's right to adopt or amend at any time any restrictions on the operation or use of short-term rentals, including without limitation a complete prohibition or moratorium on short-term rentals.

Total Number of Permits. No more than five percent of the total number of residential units within the City can be registered as a short-term rental.

Operator Responsibilities. Operator and any local contact person shall respond in a reasonable and timely manner, to ensure that every occupant of the short-term rental parcel does not create or contribute to unreasonable use of the property, cause unreasonable noise or disturbance, engage in disorderly or unlawful conduct, or overcrowd the parcel. The operator shall inform guests that they must not violate the standards of this chapter. The operator shall be responsible for taking any action necessary to ensure that guests abide by the terms of this chapter and other applicable provisions of this Code.

Local Contact Person. A local contact person shall be available by telephone when contacted by the City's employees or agents or the short-term rental's guest(s) on a 24 hour basis. A local contact person shall be physically present at the short-term rental within 20 minutes of contact. Upon receiving a call or complaint about physical conditions or circumstances that constitute an immediate threat to the public health and safety, the local contact person shall immediately contact the appropriate law enforcement, fire, or other authority. Upon receiving any call or complaint about the short-term rental, the local contact person shall cause the discontinuance of any violation of this Chapter as soon as practical.

Maximum Number of Occupants. The maximum number of overnight guests for a short-term rental shall not exceed two adults per bedroom, plus two additional adults. (Minor children are not counted towards capacity.) Additional guests allowed between 8:00 a.m. and 10:00 pm, total number of additional guests cannot exceed triple the allowed overnight guests.

Parking. On-site parking shall be provided for each short-term rental guest to the extent on-site parking is possible on the parcel in which a short-term rental is located. Off-site parking is allowed only on legal on-street parking spaces adjacent to the parcel.

Special Events. Any event exceeding the daytime occupancy limit must obtain a temporary use permit 45 days prior to the event.

Trash Collection. Except for trash properly deposited in trash collection receptacles, accumulation of trash and debris outside of a short-term rental at any time is prohibited. Each short-term rental shall obtain solid waste and recyclable collection and disposal service from the City's franchisee.

Smoke Alarms. Smoke alarms, in good working order, shall be installed at a minimum in each bedroom, and at least one alarm on every level of the short-term rental, including basements and habitable attics.

Carbon Monoxide Alarms. Carbon monoxide alarms, in good working order, shall be installed in accordance with current California Building Code requirements, and shall be installed in accordance with the manufacturer's installation instructions.

Fire Extinguisher and Ash Can. Each short-term rental shall be equipped with one five-pound fire extinguisher, type 3-A:40-B:C, installed at a readily available location near the kitchen. If the short-term rental has more than one level, an extinguisher must be mounted within each level. Fire extinguishers shall be inspected annually by a certified professional to ensure the extinguishers are in good working order. Each short-term rental with a wood-burning fireplace or woodstove shall be equipped with a metal container at least five gallons in size with a tight-fitting lid, which shall be clearly labeled for ash disposal.

Visible Address. Each short-term rental shall have an address identification. The address identification shall be legible and placed in a position that is visible from the street or road fronting the property. Whenever the address on the short-term rental unit will not be clearly visible from the street or access road fronting the property, the address shall also be placed at the public street or access road in a manner which is clearly visible from both directions of travel on the frontage road or street. Address identification characters shall contrast with their background and conform to the minimum size requirements of the California Fire Code, as amended from time to time, which currently requires numbers four inches tall with a minimum stroke thickness of 1/2 inch. A short-term rental in a condominium building that does not have an individual address may utilize the condominium building address and shall clearly identify each unit number.

Inspections. The operator of each short-term rental shall allow City staff to conduct an inspection prior to the issuance of Short-Term Rental Use Permit and any time thereafter upon request by the City.

It is a misdemeanor and a public nuisance to violate any of the provisions of this chapter. Violations of this chapter are subject to the administrative enforcements provisions set forth in Title 20 of this Code, provided that fines for violations of this chapter shall be as set forth in subsection E herein. Any person violating the provisions of this chapter, including, without limitation, guests, operators, and local contact persons may be subject to administrative or judicial remedies as set forth in this section. The owner and operator of a short-term rental shall be deemed responsible for all violations of this chapter occurring at the short-term rental or in connection with its operation, provided that this shall not preclude the City from issuing fines or citations to guests, or exercising other remedies against guests, if the guests are deemed to have committed the violation.

The City shall have the authority to suspend or revoke a short-term rental permit, or to maintain an action for injunctive relief for violations of this chapter.

Unless otherwise expressly provided, the remedies, procedures and penalties provided by this section are cumulative as to each other and to any others available under State law or this Code. In the event of any conflict between the penalties set forth in this chapter and any penalties set forth in State law, the maximum penalties allowable under State law shall govern.

In the event the City is required to bring legal action to enforce any provision of this chapter, the prevailing party shall be entitled to recover its reasonable attorney's fees, interest, court costs and other costs incurred in such action; provided that, such fees shall only be available in those actions or proceedings in which the City has provided notice at the commencement of such action or proceeding that the City intends to seek and recover attorney's fees.

Enforcement. An administrative penalty of up to $500 per day may be imposed for each violation of this chapter contained in a first administrative citation, and up to $1,000 per day for each violation contained in a second or subsequent administrative citation. A prior citation for purposes of this subsection shall be an earlier administrative citation for violation of this chapter on the same property that occurred less than one year prior to the current citation, provided that a previous citation issued to a guest shall not be deemed a prior citation for purposes of calculating the penalty for a subsequent citation issued to a different guest at the same property.

Denial, Suspension or Revocation of a Short-Term Rental Use Permit. The City may deny, suspend or revoke a Short-Term Rental Use Permit for any of the following reasons: