04/02/13

Page 1

CITY OF DANA POINT AGENDA REPORT

Item #8 Reviewed By: DH ___ X CM ___ X CA ___ X

DATE:

APRIL 2, 2013

TO:

CITY MANAGER/CITY COUNCIL

FROM:

MIKE KILLEBREW, ASSISTANT CITY MANAGER JOHN TILTON, ACTING COMMUNITY DEVELOPMENT DIRECTOR CHRISTY TEAGUE, INTERIM PLANNING MANAGER SEA SHELTON, SENIOR MANAGEMENT ANALYST

SUBJECT:

SECOND READING AND ADOPTION OF SHORT TERM RENTALS ORDINANCE

RECOMMENDED ACTION: That the City Council hold a second reading and adopt an Ordinance (Action Document A) entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DANA POINT, CALIFORNIA ADDING CHAPTER 5.38 RELATING TO SHORT TERM RENTAL PERMITS. BACKGROUND: On March 5, 2013, the City Council introduced Ordinance 13-01, which was approved with a minor change to the operating standards; specifically, to change the previously proposed 3-night minimum stay to a 2-night minimum stay. DISCUSSION: The City Council held the first reading of subject ordinance on March 5, 2013, which was approved with one minor change to the minimum stay from 3 nights to 2 nights. This is the proposed second and final reading. The ordinance shall become effective 30 days after the date of its passage and adoption (on or about May 2, 2013); however, it will not be implemented (i.e., enforced) until January 15, 2014, in order to allow the City time to process the required zoning code and local coastal program amendments, and to allow the owners of short term rentals sufficient time to comply with the requirements of the ordinance. New correspondence received after the agenda package was prepared for the City Council meeting on March 5, 2013 is attached as Supporting Document C. The remainder of the information provided is unchanged from the original staff report.

04/02/13

Page 2

Item #8

Short term rentals are residences which are rented for 30 consecutive days or less, typically for one-week intervals or weekend stays. Residences rented for one month or longer are not considered short term rentals. Many cities have established permit programs to regulate short term rental uses with minimum standards such as maximum occupancy, while allowing property owners the ability to rent out their homes for periods of 30 days or less. As directed, the ordinance includes only a minor revision to change the previously proposed 3-night stay minimum to a 2-night stay minimum. The proposed ordinance is attached to this report as Action Document A. Ordinance According to the ordinance, short term rentals will be permitted in all residential zones subject to a Short Term Rental Permit and compliance with the corresponding conditions of approval and the regulations set forth in the proposed business regulation ordinance. The City will have the ability to revoke a permit, subject to an appeal process, in cases where, after several notifications, the property owner continually fails to comply with the conditions of approval and/or the business regulations set forth in the ordinance. Upon issuance of a Short Term Rental Permit, the City will provide courtesy notices to adjacent property owners and occupants with property owner and/or property manager’s contact information and the applicable conditions of approval/performance standards for the short term rental. The approval of this ordinance will be followed by a Zone Text Amendment and, for Coastal Zone areas, a Local Coastal Plan Amendment to change the current zoning code which prohibits short term rentals in all zones. According to the ordinance, failure to comply with an application for a Short Term Rental Permit by January 15, 2014 would be a violation subject to penalties and fines. After Permit approval, failure to comply with Short Term Rental Permit conditions will be a violation subject to penalties, fines, and potential Permit revocation. Verbatim from the ordinance, the penalties are as follows: Penalties. The penalties for violations specified in subsection (A) shall be the responsibility of the owner as follows: 1. For the first violation within any twelve (12) month period, the penalty shall range from a notice of violation to a fine not to exceed two hundred and fifty dollars ($250.00); 2. For a second violation within any twelve (12) month period, the penalty shall range from a notice of violation to a fine not to exceed five hundred dollars ($500.00); 3. For a third violation within any twelve (12) month period, the penalty shall range from a notice of violation to a fine not to exceed one thousand dollars ($1,000.00); and

04/02/13

Page 3

Item #8

4. For a fourth violation within any (12) month period, the penalty shall range from a notice of violation to a fine not to exceed one thousand dollars ($1,000.00), to revocation of the permit within the provisions of Section 5.38.100. Implementation The costs to implement a proposed Short Term Rental Permit process are anticipated to be offset by costs of a registration permit fee and collection of Transient Occupancy Tax (“TOT” or “bed tax”). Upon approval of a Short Term Rental Permit, transient renters will be required to pay the same TOT as hotel guests as specified in the City’s existing TOT Ordinance and Revenue Code. The January 15, 2014 implementation date allows time for property owners to inform new guests of the requirement to pay TOT, but will not affect contracts for previously-scheduled guests before that date. TOT is paid by visitors at the time of room payment. TOT is paid by the visitor to the property owner or to the property owner’s agent, and remitted to the City. In Dana Point, the TOT rate is 10% of the total rental costs. TOT is required to be paid at the times specified in the existing TOT Ordinance. Estimates indicate collection of TOT on short term rentals in Dana Point could annually total approximately $400,000 for the approximately 250 short term rentals in Dana Point. Collection of TOT from short term rentals will also eliminate the current unfair business advantage the rentals have over the hotel industry, as TOT is not currently collected from the illegally operating rentals, although it is collected from hotels and motels in the City. The short-term rental program for Dana Point is estimated to require a part time Senior Code Enforcement Technician (30 hours per week or 0.75 FTE). The ordinance establishes a January 15, 2014 deadline by which the Short Term Rental Permits must be obtained. This timeline will allow staff to set up the program, including collection of data, outreach and education for the properties currently operating as short term rentals. It is expected that there will be additional temporary demands placed on existing Code Enforcement, Planning and Finance staff in order to establish the program. The estimated start-up costs for the necessary part-time employee are estimated to be $76,886 for the first year and $54,480 for the second year and beyond. A proposed fee resolution to establish the Short Term Rental Permit Filing Fee described in section 5.38.070 will be noticed and brought forth as part of the annual City budget adoption process later this Spring. Such a fee, by law, cannot exceed the City’s fullyloaded cost to administer the Short Term Vacation Rental Permit program. Simply using the annual direct cost for the part time Senior Code Enforcement Technician, mentioned above at $54,480, along with the estimated 250 Short Term Vacation Rental units believed to be operating in town, the annual permit fee could be set as high as $224 per unit to help off-set the cost to administer the program. The estimated cost to implement a short term rental program in Dana Point will be covered by a nominal cost of a registration permit fee, relative to income generated by short term rental use, and will be offset by TOT remittances.

04/02/13

Page 4

Item #8

Next Steps Upon second reading and adoption of the ordinance, the following steps would follow for City Council approval: 1. Amendment of Municipal Code Section 3.25.070 for reporting or remitting transient occupancy tax payments to allow quarterly payments for short term rentals. 2. Fee resolution to adopt a Short Term Rental Permit fee. 3. Zone Text Amendment ordinance to change zoning to permit short term rentals in zones as designated by Council (requires Planning Commission and Council action). 4. Local Coastal Program Amendment approval through California Coastal Commission, which applies to any Zone Text Amendment to allow short term rental use in the Coastal Zone. This will not apply to zoning districts where the short term rental use is permitted that are not in Coastal Zone. Status of Existing Short-Term Rentals As the Council is aware, it is estimated that over 250 short term rentals are operating in the City. Per the Council’s direction pending the review of this issue, staff has not expended resources taking action against persons operating such uses, even though they are currently prohibited by the City’s zoning code. Understand, that to legally operate, all regulations must be complied with, and in the regulatory process proposed, this means a short term use must be in a zone approved by the proposed Zone Text Amendment and must comply with the proposed operating regulations ordinance. Knowing there will be a need for existing operations to have time to come into compliance with the proposed regulations, and also knowing there may be some (perhaps significant) delay in obtaining Coastal Commission approval, the current proposal is structured so that all existing operators will be expected to obtain a Short Term Rental Permit by January 15, 2014. This will give them time to come into compliance with the operating regulations ordinance. In addition, by that time the Zone Text Amendment ordinance for areas outside the Coastal Zone will presumably be effective. The Coastal Commission’s approval of the Zone Text Amendment ordinance within the Coastal Zone is outside the control of the Council, and will likely not occur (if at all) until well after January 15, 2014. Persons operating short term rentals in the Coastal Zone will be expected to comply with the operating regulations ordinance by January 15, 2014. However, in the event that the Coastal Commission does not approve the Local Coastal Plan Amendment associated with the proposed Zone Text Amendment, short term rental uses in the Coastal Zone will remain illegal (and presumably action to preclude them will follow). Importantly, compliance with the operating regulations ordinance, including obtaining a Short Term Rental Permit, will not be deemed sufficient to

04/02/13

Page 5

Item #8

allow a short term rental use to continue in the event the Coastal Commission denies the Zone Text Amendment in Coastal Zone districts. Hence, any person desiring to operate a short term rental prior to all zoning changes becoming effective will be doing so at their own risk, knowing they are violating current City regulations which may not be changed if the Coastal Commission does not grant its approval.

CONCLUSION: A Short Term Rental Permit process will serve as a compromise position to a ban on short term rentals to safeguard the peace, safety, and general welfare of the residents of Dana Point and their visitors by requiring minimum conditions of approval and operation. This will benefit property owners who desire to rent their homes for less than 30 days to do so legally, and will also serve as a minimum standard of protection to surrounding property owners and neighborhoods. It is recommended that the City Council receive an update on the Short Term Rental Permit process after one year of implementation. STRATEGIC PLAN IMPLEMENTATION: Strategic Plan Initiative II. states: “Protect the health, safety and welfare of our residents, businesses and visitors.” Strategic Plan Initiative VIII. states: “Achieve total excellence in municipal services and City administration/planning with excellent customer service and cost-effectiveness,” including the specific goal to “Ensure integrity of financial operations.” The recommended actions are consistent with these Strategic Plan Initiatives. FISCAL IMPACT: If the ordinance is adopted and allows short term rentals, a new permit process would increase demands of existing Administration, Planning and Code Enforcement staff and is expected to result in the need to add one position to implement new procedures and enforce conditions of approval. ACTION DOCUMENT:

Page No.

A. Short Term Rentals Ordinance No.13-01 ............................................................. 6 SUPPORTING DOCUMENTS: B. Copy of City Council Agenda Report and Memorandum dated March 5, 2013 .. 15 C. Public Correspondence ....................................................................................... 23

04/02/13

Page 6

Item #8

04/02/13

Page 7

Item #8

ACTION DOCUMENT A

SHORT TERM RENTALS ORDINANCE NO. 13-01 ORDINANCE NO. 13-01 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DANA POINT, CALIFORNIA, ADDING CHAPTER 5.38 RELATING TO SHORT-TERM RENTAL PERMITS WHEREAS, an increasing number of tourists renting residential dwellings on a short-term basis and an increasing number of residential property owners renting units for business purposes has escalated the demand for City services and, in some circumstances, created adverse impacts in zoning districts where residential uses are permitted throughout the City; and WHEREAS, several hundred dwellings within the City’s residential zones are rented for less than thirty (30) days, often seven (7) days or less, with the majority of those rentals occurring during the peak seasons when the demand for parking and City services is greatest; and WHEREAS, the City has received an extensive number of communications, including many complaints regarding excessive noise, disorderly conduct, vandalism, overcrowding, traffic congestion, illegal vehicle parking and accumulation of refuse which are directly related to shortterm rentals; and WHEREAS, short-term rentals are often operated by agents and/or absentee owners who are not on-site and who exercise little or no supervision or control of occupants, unlike hotel staff that are capable of responding to complaints immediately upon receipt from neighboring rooms; and WHEREAS, the impacts associated with short-term rentals are particularly acute in residential districts where the peace, safety, and general welfare of the long-term residents and neighborhoods are threatened; and WHEREAS, the permitting, notification, and related requirements set forth in this Chapter are necessary to prevent the burden on City services and the adverse impacts on residential neighborhoods posed by short-term rentals; and WHEREAS, short term rentals are not currently listed as a permitted or conditionally permitted use in any zoning district in the City; and WHEREAS, because short term rentals are not listed as a permitted or conditionally permitted use, they are currently prohibited in the City; and WHEREAS, the City Council intends to adopt a zoning ordinance and local coastal program amendment permitting short term rentals in zoning districts where residential uses are allowed, subject to the regulations contained in Chapter 5.38; and

04/02/13

Page 8

Item #8

WHEREAS, short-term rentals continue to be prohibited in all zoning districts within the City until the zone text amendment and local coastal program amendment described herein are fully and finally approved; and WHEREAS, in order to allow time to process the zone text and local coastal program amendments, and to allow the owners of short-term rentals sufficient time to comply with the requirements contained in Chapter 5.38, the City Council hereby directs that while this Ordinance shall become effective thirty (30) days after its passage and adoption, staff shall not implement its provisions until January 15, 2014. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DANA POINT HEREBY ORDAINS AS FOLLOWS: SECTION 1. Chapter 5.38 of the Dana Point Municipal Code entitled “Short Term Rental Permits” is hereby added to read in its entirety as follows: Chapter 5.38 SHORT-TERM RENTAL PERMITS 5.38.010

Purpose.

The purpose of this Chapter is to require the owner or owners of a residential dwelling unit that is used as a short-term rental, as defined herein, to apply for and secure a permit authorizing such use in the manner provided for by this Chapter in order to safeguard the peace, safety and general welfare of the residents of Dana Point and their visitors and guests by eliminating excessive noise, disorderly conduct, vandalism, overcrowding, traffic congestion, illegal vehicle parking, and the accumulation of refuse which are directly related to short-term rentals. . 5.38.020

Definitions.

For the purpose of this Chapter, the following definitions shall apply: A.

“Agent” shall mean the representative, if any, designated by the Owner in accordance with Section 5.38.040.

B.

"City Manager" shall mean the City Manager of the City of Dana Point or his or her designee.

C.

"Community Development Director" shall mean the Community Development Director of the City of Dana Point or his or her designee.

D.

"Owner" shall mean the person(s) or entity(ies) that hold(s) legal and/or equitable title to the short-term rental.

E.

“Short-term rental” is defined as the rental of any structure or any portion of any structure for occupancy, dwelling, lodging or sleeping purposes for at least three (3) consecutive nights, but no more than thirty (30), consecutive calendar days in duration in a zoning district where residential uses are allowed, including, but not limited to, detached singlefamily dwellings, condominiums, duplexes, triplexes, townhomes and multiple-family

04/02/13

Page 9

Item #8

dwellings. “Short-term rental” historically and continues to be included in the definition of “hotel” for purposes of collecting transient occupancy tax pursuant to Chapter 3.25 of this Code. F.

“Transient” means any person who occupies or is entitled to occupy 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 is a transient until the period of thirty (30) 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, an uninterrupted period of time extending both prior and subsequent to the effective date of this Chapter may be considered.

5.38.030

Permit Required.

No owner of a short-term rental located within a zoning district where residential uses are allowed shall rent, offer to rent, or advertise for rent the short-term rental to another person without a valid short-term rental permit approved and issued in the manner provided for by this Chapter. 5.38.040

Agents.

An Owner may retain an Agent or a representative to comply with the requirements of this Chapter, including, without limitation, the filing of an application for a permit that has been signed and notarized by the Owner, the management of the short-term rental, and the compliance with the conditions to the permit. The permit shall be issued only to the Owner of the short-term rental. The Owner of the short-term rental is responsible for compliance with the provisions of this Chapter and the failure of an Agent to comply with this Chapter shall be deemed non-compliance by the Owner. 5.38.050

Application for Permit.

The Owner or Owners shall submit an application for a short-term rental permit to the Director of Community Development. The application for a short-term rental permit shall be upon forms provided by the City and shall contain the following information: A.

The name, address and telephone number of the Owner of the short-term rental for which the permit is to be issued.

B.

The name, address and telephone number of the Agent, if any, of the Owner of the shortterm rental.

C.

Evidence of a valid transient occupancy tax registration certificate issued by the City for the short-term rental.

D.

Proof of general liability insurance in the amount of one million dollars combined single limit and an executed agreement to indemnify, defend, and save the City harmless from any and all claims and liabilities of any kind whatsoever resulting from or arising out of the short-term rental.

04/02/13

Page 10

Item #8

E.

Acknowledgement of receipt and inspection of a copy of all regulations pertaining to the operation of a short-term rental within the City.

F.

Such other information as the Director of Community Development deems reasonably necessary to administer this Chapter.

5.38.055

Renewal of Permit

The Owner or Owners shall apply for and renew annually at permit issuance anniversary date with any changes to the information or requirements set forth in Section 5.38.050 above and shall provide a current proof of general liability insurance pursuant to 5.38.050(D). 5.38.060

Denial of Permit.

No application for an original permit or a subsequent renewal shall be denied if it meets the conditions of permit issuance pursuant to 5.38.080 unless a permit for the same short-term rental has been revoked or is in the process of being revoked pursuant to Section 5.38.100 of this Chapter. 5.38.070

Filing Fee.

An application for a short-term rental permit shall be accompanied by a fee established by resolution of the City Council, provided, however, the fee shall be no greater than necessary to defer the cost incurred by the City in administering the provisions of this Chapter. 5.38.080 A.

Conditions of Permit Issuance And Renewal.

All permits and renewals issued pursuant to this Chapter are subject to the following standard conditions: 1. The Owner shall ensure that the short-term rental complies with all applicable codes regarding fire, building and safety, and all other relevant laws and ordinances. 2. The Owner shall provide proof that short-term rentals are not prohibited by its Homeowners Association Conditions, Covenants and Restrictions (“CC&Rs”) or any other community standards/guidelines, applicable to the proposed short-term rental. 3. The short-term rental unit in which a permit is being requested must pass an initial inspection by the City prior to permit issuance. The City may conduct additional inspections as deemed necessary or prudent prior to subsequent renewals. 4. The Owner shall provide a twenty-four (24) hour emergency contact located within a 25 mile radius of the short-term rental that will be available to respond to issues at the short-term rental. 5. The short-term rental must have a minimum of two (2) off-street parking spaces.

04/02/13

Page 11

Item #8

6. The short term rental must have a visible house number easily seen from the street, day or night. 7.

Short-term rentals shall be used only for overnight lodging accommodations. They may not be used for weddings, parties, bachelor/bachelorette parties, conferences or similar events.

8.

All advertising for the short-term rental shall include the City issued permit number.

9.

The primary overnight and daytime occupant of the short-term rental must be an adult eighteen (18) years of age or older. This adult must provide a telephone number to the Owner and shall be accessible to the Owner by telephone at all times.

10.

Prior to occupancy, the Owner shall obtain the name, address and driver’s license number or a copy of the passport of the primary adult occupant of the short-term rental. The Owner shall require that same adult to sign a formal acknowledgment that he or she is legally responsible for compliance by all occupants and guests of the short-term rental with the provisions of this Chapter. This information shall be readily available upon request of any police officer or employee of the City authorized to enforce this Chapter or State Law.

11.

The Owner shall require all occupants to agree to a minimum stay of two (2) consecutive nights.

12.

The maximum overnight occupancy of the short term rental shall be limited to two (2) persons per bedroom plus two (2) additional persons within the short-term rental. The Director of Community Development may, when unusual size, interior layout, parking or other physical characteristics are shown, approve a greater maximum number of overnight occupants as part of a permit application or renewal.

13.

The maximum number of vehicles allowed at the short term rental shall be limited to one (1) vehicle per one (1) bedroom unit or two (2) vehicles maximum with two (2) or more bedrooms within the short term rental. The Director of Community Development may, when unusual size, parking or other physical characteristics are shown, approve a greater maximum number of vehicles as part of a permit application or renewal. The Owner must make a sufficient number of parking spaces accessible to tenants to accommodate the maximum number of vehicles allowed.

14.

No on-site exterior signs are to be posted advertising a short-term rental.

15.

Trash and refuse shall not be left stored within public view, except in proper containers for the purpose of collection by the responsible trash hauler and between the hours of 5:00 p.m. the day before and 8:00 a.m. the day after the scheduled trash collection days, as provided in Chapter 6.10. The owner of the short-term

04/02/13

Page 12

Item #8

rental shall provide sufficient trash collection containers and service to meet the demand of the occupants. 16.

Each lease or rental agreement for a short-term rental shall include the following terms, notifications and disclosures, which shall also be posted in a conspicuous location inside the short-term rental: a.

The maximum number of occupants that are permitted and notification that failure to conform to the maximum occupancy is a violation of this Chapter.

b.

The number of parking spaces provided and, if not adjacent to the short-term rental, the location of assigned parking and maximum number of vehicles that are permitted.

c.

The trash pick-up day(s) and applicable rules and regulations pertaining to leaving or storing trash on the exterior of the property.

d.

Notification that the occupant may be cited or fined by the City and/or immediately evicted by the owner for violating any and all applicable laws.

e.

The name of the managing agency, agent, rental manager, local contact person or owner of the unit, and a telephone number at which that party may be reached at all times and 9-1-1 Emergency information.

f.

Summary of applicable Homeowners Association Conditions, Covenants and Restrictions (CC&R’s) and bylaws, including pool location and hours.

17.

The Owner shall ensure that the occupants of the short-term rental do not create unreasonable noise or disturbances, engage in disorderly conduct, or violate provisions of the Municipal Code or any State Law pertaining to noise, disorderly conduct, overcrowding, the consumption of alcohol, or the use of illegal drugs. Owners are expected to take any measures necessary to abate disturbances, including, but not limited to, directing the tenant, calling for law enforcement services, or City code enforcement officers, evicting the tenant, or any other action necessary to immediately abate the disturbance.

18.

The Owner shall, upon notification that occupants or tenants of his or her shortterm rental have created unreasonable noise or disturbances, engaged in disorderly conduct, or committed violations of the Municipal Code or State Law pertaining to, but not limited to, noise, disorderly conduct, overcrowding to take action to prevent a recurrence of such conduct by those occupants or guests within twenty-four (24) hours.

04/02/13

Page 13

Item #8

B.

The Director of Community Development shall have the authority at any time to impose additional standard conditions, applicable to all short-term rentals, as necessary to achieve the objectives of this Chapter.

C.

The Director of Community Development shall have the authority to impose additional conditions on any permit in the event of any violation of the conditions to the permit or the provisions of this Chapter subject to compliance with the procedures specified in Section 5.38.100.

D.

The owner must maintain a valid transient occupancy tax registration certificate issued by the City for the short-term rental; the owner must collect and remit transient occupancy tax as required by Chapter 3.25 of the Municipal Code.

5.38.090 A.

B.

Violations/Penalties.

Violations. Except as described in Section 5.38.080 subsection (C), the following conduct shall constitute a violation for which the penalties specified in Section 5.38.090 subsection (B) may be imposed, or the permit revoked: 1.

The Owner and/or Agent has failed to comply with the standard conditions specified in Section 5.38.080(A);

2.

The Owner and/or Agent has failed to comply with conditions imposed by the Director of Community Development pursuant to the provisions of Section 5.38.080(B) or (C);

3.

The Owner and/or Agent has willfully violated the provisions of this Chapter;

4.

The Owner and/or Agent has failed to comply and pay any fines imposed pursuant to Section 5.38.090(B) within thirty (30) days of the date of notification; or

5.

The Owner and/or Agent has failed to comply and pay the transient occupancy tax or submit a report as required by Chapter 3.25 of this Code within the required time limit.

Penalties. The penalties for violations specified in subsection (A) shall be the responsibility of the owner as follows: 1.

For the first violation within any twelve (12) month period, the penalty shall range from a notice of violation to a fine not to exceed two hundred and fifty dollars ($250.00);

2.

For a second violation within any twelve (12) month period, the penalty shall range from a notice of violation to a fine not to exceed five hundred dollars ($500.00);

3.

For a third violation within any twelve (12) month period, the penalty shall range from a notice of violation to a fine not to exceed one thousand dollars ($1,000.00);

04/02/13

4.

5.38.100

Page 14

Item #8

For a fourth violation within any twelve (12) month period, the penalty shall range from a notice of violation to a fine not to exceed one thousand dollars ($1,000.00), to revocation of the permit within the provisions of Section 5.38.100. Procedure for Imposition of Penalties/Revocation.

Penalties, including a notice of violation, shall be imposed, and permits shall be revoked, only in the manner provided in this Section. The Director of Community Development, or his/her designee, shall conduct an investigation whenever he or she has reason to believe that an owner has committed a violation described in Section 5.38.090(A). Should the investigation reveal substantial evidence to support a finding that a violation occurred, the Director of Community Development shall issue written notice of intention to impose a penalty and/or revoke the permit. The written notice shall be served on the Owner, shall specify the facts which, in the opinion of the Director of Community Development, constitute substantial evidence to establish grounds for imposition of the penalties and/or revocation, and specify that the penalties will be imposed and/or the permit will be revoked within thirty (30) days from the date the notice is given unless the owner and/or operator files, with the City Clerk and before the penalties or revocation becomes effective, a request for hearing before the City Manager or his or her designee. 5.38.110

Permits and Fees Not Exclusive.

Permits and fees required by this Chapter shall be in addition to any license, permit or fee required under any other chapter of this Code. The issuance of any permit pursuant to this Chapter shall not relieve the owner of the obligation to comply with all other provisions of this Code pertaining to the use and occupancy of the short-term rental or the property on which it is located. 5.38.120

Amortization and Amnesty Period.

Owners of short-term rentals shall apply for a permit pursuant to this Chapter by no later than January 15, 2014. Owners of short-term rentals who, prior to the effective date of this ordinance, failed to obtain a transient occupancy registration certificate pursuant to Chapter 3.25 of this Code, may do so without penalty notwithstanding the provisions of Chapter 3.25, if an application for the certificate is filed by January 15, 2014. SECTION 2. Severability. If any section, subsection, subdivision, paragraph, sentence, clause, phrase or portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, subdivision, paragraph, sentence, clause, phrase and portion of this Ordinance, irrespective of the fact that one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, phrases or portions thereof may be declared invalid or unconstitutional. To this end, the provisions of this Ordinance are declared severable.

04/02/13

Page 15

Item #8

SECTION 3. Effective Date. This Ordinance shall become effective thirty (30) days after its passage and adoption. Within fifteen (15) days of the date of adoption of this Ordinance, the City Clerk shall post a copy of said Ordinance in places designated for such posting and shall certify to the same. The City Clerk shall certify the passage of this Ordinance and shall cause the same to be published as required by law.. PASSED, APPROVED and ADOPTED this _______ day of _______, 2013.

______________________________ STEVE WEINBERG, MAYOR ATTEST:

________________________________ KATHY M. WARD, CITY CLERK

STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF DANA POINT

) ) ss. )

I, _____________________, City Clerk of the City of Dana Point, do hereby certify that the foregoing Ordinance No. ________ was introduced at a regular meeting of the City Council of the City of Dana Point held on the ______ day of _________________, 2013 and was thereafter duly and regularly passed and adopted by the Council of the City of Dana Point at its regular meeting held on the ______ day of __________________, 2013, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Said Ordinance has been published or posted pursuant to law. Witness my hand and official seal of the City of Dana Point this _______ day of _______________, 2013. ________________________________ KATHY M. WARD, CITY CLERK

04/02/13

Page 16

Item #8

SUPPORTING DOCUMENT B

CITY COUNCIL AGENDA REPORT DATED MARCH 5, 2013

04/02/13

Page 17

Item #8

04/02/13

Page 18

Item #8

04/02/13

Page 19

Item #8

04/02/13

Page 20

Item #8

04/02/13

Page 21

Item #8

04/02/13

Page 22

Item #8

04/02/13

Page 23

Item #8

04/02/13

Page 24

Item #8

SUPPORTING DOCUMENT C

PUBLIC CORRESPONDENCE

04/02/13

Page 25

Item #8

04/02/13

Page 26

Item #8

04/02/13

Page 27

Item #8

04/02/13

Page 28

Item #8

04/02/13

Page 29

Item #8

04/02/13

Page 30

Item #8

04/02/13

Page 31

Item #8

04/02/13

Page 32

Item #8

04/02/13

Page 33

Item #8

04/02/13

Page 34

Item #8

04/02/13

Page 35

Item #8

04/02/13

Page 36

Item #8

04/02/13

Page 37

Item #8

04/02/13

Page 38

Item #8

04/02/13

Page 39

Item #8

04/02/13

Page 40

Item #8

04/02/13

Page 41

Item #8

04/02/13

Page 42

Item #8

04/02/13

Page 43

Item #8

04/02/13

Page 44

Item #8

04/02/13

Page 45

Item #8

04/02/13

Page 46

Item #8