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HomeMy WebLinkAboutItem No. 30 - Lake Elsinore Municipal Code Amendments regarding Short-Term RentalsCity Council Agenda Report City of Lake Elsinore 130 South Main Street Lake Elsinore, CA 92530 www.lake-elsinore.org File Number: ID# 22-030 Agenda Date: 1/11/2022 Status: Approval FinalVersion: 2 File Type: Council Public Hearing In Control: City Council Agenda Number: 30) Lake Elsinore Municipal Code Amendments regarding Short-Term Rentals Introduce by title only and waive further reading of AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING TITLE 5 AND TITLE 17 OF THE LAKE ELSINORE MUNICIPAL CODE RELATED TO SHORT-TERM RENTALS Page 1 City of Lake Elsinore Printed on 1/6/2022 Page 1 of 4 REPORT TO CITY COUNCIL To: Honorable Mayor and Members of the City Council From: Jason Simpson, City Manager Prepared by: Richard J. MacHott, Planning Manager Date: January 11, 2022 Subject: Lake Elsinore Municipal Code Amendments regarding Short-Term Rentals Recommendation Introduce by title only and waive further reading of AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING TITLE 5 AND TITLE 17 OF THE LAKE ELSINORE MUNICIPAL CODE RELATED TO SHORT-TERM RENTALS Background Short-term residential rentals (commonly known by the brand names Airbnb, Vrbo, and HomeAway) are typically single-family homes, condominiums, or apartments where the owner offers overnight lodging for fewer than 30 days directly to the consumer through a third -party brokerage website. Rentals can vary from a single room in a unit occupied by the owner or a primary tenant, or the rental of a full unit or home occupied solely by the renters and their guests. Currently, short-term rentals are not expressly permitted in the City of Lake Elsinore, however, they do exist and the City has been collecting transient occupancy tax voluntarily from some of them. The collection of transient occupancy taxes from all short-term rentals requires the adoption of amendments to the Lake Elsinore Municipal Code making payment mandatory. Additionally, while the City welcomes visitors, valid concerns exist regarding the potential impacts of short-term rentals on the character of neighborhoods and the quality of life of nearby residents. These can include noise, parking not being contained on the rental property, responsible garbage collection/disposal, overcrowding of rentals, limited access (i.e., easements), and general lack of consideration to the neighboring residents by renters. As requested by the City Council, proposed amendments to Title 5 (Business Taxes, Licenses, and Regulation) of the Lake Elsinore Municipal Code (LEMC) have been prepared to recognize and appropriately regulate the use of short-term rentals within the City. Additionally, there are related proposed amendments to Title 17 (Zoning). On December 21, 2021, the Planning Commission took unanimous action to recommend approval of the proposed Municipal Code Amendments. Amendments of LEMC Title 5 and Title 17 RE: Short-term Rentals 1/11/2022 Page 2 of 4 Discussion The proposed amendments of Title 5 and Title 17 would allow short-term rentals in all residential and mixed-use zones subject to specific regulatory requirements that operators must abide by to minimize potential impacts on the surrounding residents. Summary of Draft Short-Term Rental Ordinance The proposed LEMC Chapter 5.86 regarding short-term rentals would allow both owner-occupied and non-owner-occupied short-term rentals. Below is an overview of each section of the draft ordinance. 1. Purpose. The purpose of proposed LEMC Chapter 5.86 is to establish regulations for the use of privately-owned residential dwellings as short-term rentals within the City of Lake Elsinore, to preserve the single-family character of neighborhoods, to prevent short-term rental activities from becoming a nuisance or a threat to public health, safety or welfare and to ensure the collection and payment of transient occupancy taxes. 2. Definitions. This section provides definitions for: “Authorized agent”, “Bedroom”, “City”, “Director”, “Good Neighbor Brochure”, “Guest”, “Local contact person”, “Occupancy”, “Owner”, “Short-term rental” and “Short-term rental unit” as those terms are used in the proposed ordinance. 3. Short-term rental business license required. Requires that the owner of any short-term rental obtain a business license from the City before renting or advertising the availability of a short-term rental unit. 4. Short-term rentals permitted. Allows short-term rentals in all residential units subject to the requirement subject to compliance with requirements to obtain and keep current a business license, comply with transient occupancy tax requirements, and obtain a Transient Occupancy Registration Certificate. Also prohibits the use of garages, tents, trailers, recreational vehicles, storage sheds or other exterior structures or spaces, and accessory dwelling units as short- term rentals. 5. Authorized agent or representative. Allows owner to authorize an agent or representative to act on their behalf with a notarized written document. 6. Application for a short-term rental business license. This section sets forth the minimum application requirements for a short-term business license. 7. Permit approval and issuance. This section establishes provisions related to the approval and issuance of short-term business licenses. It also states that the license is not transferable and requires new ownership of a short-term rental to obtain a new license. 8. Permit term and renewal. An approved short-term rental permit is valid until December 31 of the year it is issued, unless suspended or revoked by the Director. The permittee may renew the permit annually, by submitting a renewal application and fee before the expiration of the permit. Amendments of LEMC Title 5 and Title 17 RE: Short-term Rentals 1/11/2022 Page 3 of 4 9. Short-term rental operational requirements. Sets forth requirements about the operation of a license short-term rental including compliance with all fire, building and safety, health and safety, and other relevant laws and ordinances, and the requirement for a 24-hour emergency local contact person available to respond within 60 minutes to any issues at the rental. This section also reduces impacts to adjacent residences by establishing limits on occupancy, parking, trash and refuse, and noise. Requires the collection and transmittal of transient occupancy permits. 10. Advertising shall include permit number. Requires all advertising to include City-issued permit number and the maximum allowed occupancy of the rental unit. 11. Records maintenance and production. Requires the rental operator to preserve all records for three years and establishes the right of the City to inspect those records. 12. Inspections. States that the city shall be permitted access to the subject premises, property, or dwelling to determine continued compliance with this chapter and/or any conditions of approvals outlined in the respective short-term rental business license. 13. Suspension and revocation. Describes the City’s ability to revoke or suspend a short-term rental business license and the procedures for doing so. 14. Violations/penalties. Establishes the penalties for violations of the short-term rental ordinance. 15. Appeals. Allows the appeal of any decision of the Director to suspend and/or revoke a short- term rental permit. 16. Service of notices. Describes when notices according to the ordinance are deemed delivered. 17. Requirements are not exclusive. States that compliance with all provisions of the Municipal Code is still required. 18. Amortization and amnesty period. Requires owners of short-term rentals to apply for a short-term rental business license and to obtain a Transient Occupancy Registration Certificate within 60 days of the effective date of the ordinance. Proposed Amendments to the Zoning Ordinance (LEMC Title 17) The proposed amendments to the Zoning Ordinance will add a cross-reference to the Chapter 5.86 definition of “Short-term rental” to Section 17.08.190 of the LEMC (S definitions) and a cross- reference to the Chapter 5.86 parking requirements to Section 17.148.030 of the LEMC (Number of parking spaces required). Additionally, Short-term rentals have been added as a permitted use in the Residential Mixed Use and Commercial Mixed Use zoning districts and the following language will be added to the list of accessory uses within each of the residential zoning districts: Amendments of LEMC Title 5 and Title 17 RE: Short-term Rentals 1/11/2022 Page 4 of 4 Short-term rentals; subject to the completion and approval of an application for a short-term rental issued by the Director of Administrative Services or their designee and compliance with the provisions of Chapter 5.86 LEMC. The amended zoning district sections are: LEMC Section Zoning District Section 17.60.040 R-M-R (Rural Mountainous) Section 17.64.040 R-R (Rural Residential) Section 17.68.040 R-E (Estate Single-Family Residential) Section 17.72.040 R-H (Hillside Single-Family Residential) Section 17.76.040 R-1 (Single-Family Residential) Section 17.80.040 R-2 (Medium Density Residential) Section 17.84.040 R-3 (High Density Residential) Section 17.86.020 RMU (Residential Mixed Use) Section 17.134.020 CMU (Commercial Mixed Use) Consistency with City’s Vision Plan The proposed LEMC amendments are consistent with the City of Lake Elsinore Dream Extreme 2040 Plan’s Anchors and with Aspiration 1 (“Be the destination for the actions sports industry in Southern California”) by broadening Lake Elsinore’s appeal as a tourist destination (Strategy 1.B). They do so by supporting visitors through the expansion of hospitality services, which can be measured by tracking transient-occupancy tax revenue. Environmental Determination The proposed amendments to the Lake Elsinore Municipal Code are exempt from the California Environmental Quality Act (Cal. Publ. Res. Code §§21000 et seq. “CEQA”) and the State CEQA Guidelines (14. Cal. Code Regs §§15000 et seq.), specifically according to Sections 15060(c)(2), 15060(c)(3), and 15061(b)(3) of the State CEQA Guidelines because it will not result in a direct or reasonably foreseeable indirect physical change in the environment, because there is no possibility that it may have a significant effect on the environment, and because it is not a “project” as that term is defined in Section 15378 of the State CEQA Guidelines. Exhibits: A - Short-Term Rentals – Ordinance B - Ordinance Exhibit A – Short-term Rental Ordinance C - Ordinance Exhibit B – Zoning Code Amendments D - Draft Good Neighbor Brochure ORDINANCE NO. 2022–____ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE ADOPTING AMENDMENTS TO TITLE 5 AND TITLE 17 OF THE LAKE ELSINORE MUNICIPAL CODE RELATED TO SHORT-TERM RENTALS. Whereas, the City welcomes visitors, valid concerns exist regarding the potential impacts of short-term rentals on the character of neighborhoods and the quality of life of nearby residents.; and Whereas, the City desires to amend the Lake Elsinore Municipal Code (“LEMC”) to regulate short-term rentals in order to promote the health, safety, and general welfare of the residents and businesses within the City; and Whereas, proposed amendments to Title 5 (Business Taxes, Licenses and Regulation) and Title 17 (Zoning) of the Lake Elsinore Municipal Code (LEMC) have been prepared to recognize and appropriately regulate the use of short-term rentals within the City; and Whereas, the Planning Commission has been delegated with the responsibility of making recommendations to the City Council regarding zoning ordinance text amendments; and Whereas, on December 21, 2021, at a duly noticed public hearing the Planning Commission considered evidence presented by the Community Development Department and other interested parties with respect to this item and took unanimous action to recommend approval to the City Council; and Whereas, on January 11, 2022, at a duly noticed public hearing, the City Council has considered the recommendation of the Planning Commission, as well as evidence presented by the Community Development Department and other interested parties with respect to this item. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES ORDAIN AS FOLLOWS: Section 1: The City Council has reviewed and analyzed the proposed amendments to the Lake Elsinore Municipal Code and finds and determines that the ordinance is in compliance with the goals and policies of the City of Lake Elsinore General Plan, that the ordinance will not be detrimental to the public interest, health, safety, convenience, or general welfare of the city; and that it is internally consistent with other applicable provisions of the Lake Elsinore Municipal Code. Section 2: The City Council hereby finds and determines that the proposed amendments to the Lake Elsinore Municipal Code are exempt from the California Environmental Quality Act (Cal. Publ. Res. Code §§21000 et seq. “CEQA”) and the State CEQA Guidelines (14. Cal. Code Regs §§15000 et seq.), specifically pursuant to pursuant to Sections 15060(c)(2), 15060(c)(3), and 15061(b)(3) of the State CEQA Guidelines because it will not result in a direct or reasonably foreseeable indirect physical change in the environment, because there is no possibility that it may have a significant effect on the environment, and because it is not a “project” as that term is defined in Section 15378 of the State CEQA Guidelines. Section 3: In accordance with Government Code Section 65855, the City Council sets Ord. No. 2022–_____ Page 2 of 3 forth the following findings for its action to amend Title 5 and Title 17 of the Lake Elsinore Municipal Code: 1. The proposed municipal code amendments will not be: a) detrimental to the health, safety, comfort or general welfare of the persons residing or working within the City, or b) injurious to the property or improvements within the City. The proposed municipal code amendments have been analyzed relative to their potential to have detrimental effects and it has been determined that the amendments have no impact upon the public’s health, safety, comfort and general welfare because the proposed municipal code revisions establish regulations for the use of privately-owned residential dwellings as short-term rentals within the City of Lake Elsinore, to preserve the single- family character of neighborhoods, to prevent short-term rental activities from becoming a nuisance or a threat to public health, safety or welfare and to ensure the collection and payment of transient occupancy taxes. 2. The proposed municipal code amendments are consistent with the Goals, Policies and Implementation Programs of the General Plan and the development standards established with the LEMC. The proposed municipal code amendments do not create new zoning districts, remove existing zoning districts or rezone property. The proposed municipal code amendments will not interfere with the implementation of the goals, policies, and implementation programs of the General Plan. 3. The proposed municipal code amendments are consistent with and implement the City of Lake Elsinore Dream Extreme 2040 Plan. The proposed LEMC amendments are consistent with the City of Lake Elsinore Dream Extreme 2040 Plan’s Anchors and with Aspiration 1 (“Be the destination for the actions sports industry in Southern California”) by broadening Lake Elsinore’s appeal as a tourist destination (Strategy 1.B). They do so by supporting visitors through the expansion of hospitality services, which can be measured by tracking transient-occupancy tax revenue. Section 4: Based upon the evidence presented, both written and testimonial, and the above findings, the City Council approves the amendment of Title 5 and Title 17 of the Lake Elsinore Municipal Code attached hereto as Exhibit “A” and Exhibit “B”. Section 5: Severability. If any provision of this Ordinance or its application is held invalid by a court of competent jurisdiction, such invalidity shall not affect other provisions, sections, or applications of the Ordinance which can be given effect without the invalid provision or application, and to this end each phrase, section, sentence, or word is declared to be severable. Section 6: Effective Date. This Ordinance shall become effective at 12:01 a.m. on the thirty-first (31st) day af ter the date of adoption. Section 7: Certification. The City Clerk shall certify to the passage of this Ordinance and shall cause a synopsis of the same to be published according to law. Ord. No. 2022–_____ Page 3 of 3 PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, on this ____ day of _____________ 2022. Timothy J. Sheridan Mayor Attest: Candice Alvarez, MMC City Clerk STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Ordinance No. 2021-_____ was introduced by the City Council of the City of Lake Elsinore, California, at the Regular meeting of __________ ___, 20___ and adopted at the Regular meeting of __________ ___, 20___ and that the same was adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: Candice Alvarez, MMC City Clerk Exhibit A Page 1 of 10 Chapter 5.86 SHORT-TERM RENTALS Sections: 5.86.010 Purpose. 5.86.020 Definitions. 5.86.030 Short-term rental business license required. 5.86.040 Short-term rentals permitted. 5.86.050 Authorized agent or representative. 5.86.060 Application for a short-term rental business license. 5.86.070 Permit approval and issuance. 5.86.080 Permit term and renewal. 5.86.090 Short-term rental operational requirements. 5.86.100 Advertising shall include permit number. 5.86.110 Records maintenance and production. 5.86.120 Inspections. 5.86.130 Suspension and revocation. 5.86.140 Violations/penalties. 5.86.150 Appeals. 5.86.160 Service of notices. 5.86.170 Requirements are not exclusive. 5.86.180 Amortization and amnesty period. 5.86.010 Purpose. The purpose of this chapter is to establish regulations for the use of privately-owned residential dwellings as short-term rentals within the City of Lake Elsinore, to preserve the single-family character of neighborhoods, to prevent short-term rental activities from becoming a nuisance or a threat to public health, safety or welfare and to ensure the collection and payment of transient occupancy taxes. 5.86.020 Definitions. As used in this chapter, the following terms shall have the following meanings: “Authorized agent” means an agent designated by the owner to comply with the requirements of this chapter on behalf of the owner, as provided for in LEMC 5.86.050. “Bedroom” means a separate permanent room of at least one hundred square feet with four walls from floor to ceiling with an access door and a built-in clothes closet. “City” means the City of Lake Elsinore. “Director” means the Director of Administrative Services of the City of Lake Elsinore or their designee. “Good Neighbor Brochure” means a document prepared by the City, as may be revised from time to time that summarizes the general rules of conduct, consideration, and respect about the use and occupancy of short-term rental units. Exhibit A Page 2 of 10 “Guest” means the overnight occupants renting the short-term rental for a specified period and the daytime visitors of the overnight occupants. “Local contact person” means the person designated by the owner or the owner's authorized agent who shall be available twenty-four (24) hours per day, seven (7) days per week for: (i) being able to physically respond within sixty (60) minutes of notification of a complaint regarding the condition, operation or conduct of guests of the short-term rental, and (ii) taking remedial action to resolve any such complaints. “Occupancy” means the use or possession, or the right to use or possession, of any short-term rental for dwelling, lodging, or sleeping purposes. “Owner” means the person(s) or entity(ies) that hold(s) legal and/or equitable title to the subject short-term rental. “Owner” does not include a lessee of the dwelling. “Short-term rental” means a privately owned residential dwelling, such as but not limited to, a single-family detached or multifamily attached dwelling, apartment house, condominium, cooperative apartment, duplex, mobile home on permanent foundations, or a manufactured home on permanent foundations, or any portion of such dwellings, rented for occupancy for dwelling, lodging or sleeping purposes for any period less than thirty (30) consecutive days. A short-term rental is a “hotel” for purposes of Chapter 3.32. “Short-term rental unit” means a legally permitted dwelling unit, as that term is defined in LEMC 17.08.040, all or any portion of which is made available as a short-term residential rental. Each short-term rental residential unit shall have an assigned real property address. 5.86.030 Short-term rental business license required. It shall be unlawful to own, establish, operate, or permit the establishment of a short-term rental within the City, other than as permitted by this chapter. Before owning, establishing, operating, or permitting the establishment of a short-term rental within the City, the owner shall obtain a short-term rental business license from the City under the terms and conditions stated in this chapter. 5.86.040 Short-term rentals permitted. Short-term rentals are permitted in all residential zones, subject to compliance with the following requirements: A. The owner or owner’s authorized agent is required to obtain a business license pursuant to Chapter 5.08 LEMC before renting or advertising the availability of a short-term residential rental unit. A current and valid business license is required at all times while operating a short-term rental unit. B. Each person operating a short-term rental shall comply with the transient occupancy tax requirements stated in Chapter 3.32 LEMC and shall obtain a Transient Occupancy Registration Certificate in accordance with LEMC 3.32.060. Exhibit A Page 3 of 10 C. Only the habitable interior portions of the short-term rental unit shall be utilized as a short-term rental. D. No garages, tents, trailers, recreational vehicles, storage sheds, or other exterior structures or spaces shall be used as short-term rentals. E. In accordance with LEMC 17.415.110, no person may operate a short-term rental in any accessory dwelling unit. 5.86.050 Authorized agent or representative. A. An owner may authorize an agent or a representative to comply with the requirements of this chapter on behalf of the owner. The authorization shall be in writing and shall be signed by the property owner(s), whose signature(s) shall be notarized. B. Notwithstanding paragraph A, the owner shall not be relieved from any personal responsibility and personal liability for non-compliance with any applicable law, rule, or regulation pertaining to the use and occupancy of the subject short-term residential rental unit, regardless of whether such non-compliance was committed by the owner, the owner’s authorized agent or representative, the guests of the owner’s short-term residential rental unit or the invited or uninvited guests of the owner. 5.86.060 Application for a short-term rental business license. A. Application. The owner shall file an application with the City upon a form provided by the City for a short-term rental business license to the Director. The application for a short-term rental business license shall include at least the following information: 1. The name, address, and telephone number of the owner of the short-term rental for which the permit is to be issued. 2. The name, address, and telephone number of the authorized agent, if any, of the owner of the short-term rental. 3. The name, address, and telephone number of a 24-hour emergency local contact person who will be available twenty-four (24) hours a day, 7 days a week, to accept telephone calls and to respond physically to the short-term rental within sixty (60) minutes when the short-term rental is rented and occupied. If the name, address, or telephone number of the 24-hour emergency local contact person is changed at any time, the owner shall submit such updated information to the Director. 4. The number of bedrooms and the applicable overnight and daytime occupancy limit of the proposed short-term rental. 5. Acknowledgement of receipt and inspection of a copy of the Good Neighbor Brochure. 6. Evidence of a valid Transient Occupancy Registration Certificate issued by the City for the short-term rental in accordance with Chapter 3.32 LEMC. Exhibit A Page 4 of 10 7. Acknowledgement of receipt and inspection of a copy of all regulations of the operation of a short-term rental within the City, including, but not limited to, this chapter. 8. A statement affirming that the owner is permitted to use the owner’s property as a short- term rental per applicable private governing documents, including, without limitation, conditions, covenants, and restrictions (“CC&Rs”) that are valid and enforceable in accordance with the Davis-Stirling Common Interest Development Act, as stated in California Civil Code Section 4000 et seq., of the use and occupancy of owner’s privately owned single-family residential dwelling or condominium as a short-term rental. 9. A certification by the applicant that to his or her knowledge and belief, the information contained on the application is true. 10. Payment for any applicable fees. 11. Such other information as the Director deems reasonably necessary to administer this chapter. 5.86.070 Permit approval and Issuance. A. Issuance of a short-term business license constitutes a revocable privilege and shall not create or establish any vested rights for the development or use of a property. B. Upon receipt of a completed application and payment of the application fees, the Director shall investigate the information contained in the application to determine whether the owner shall be issued the requested short-term rental business license based upon compliance with this chapter. C. The Director shall grant the application for a short-term rental business license (subject to paragraphs D and E of this section) upon findings that the application meets the requirements of this chapter unless the Director finds any of the following: 1. The owner has made one or more false or misleading statements or omissions, either on the written application or during the application process. 2. The owner has not satisfied every requirement of this chapter and the LEMC. 3. The owner is not in compliance with applicable state law. 4. The owner has not paid the required fees established by the resolution of the City Council. D. Based upon the information stated in the application and the Director's review, the Director may impose additional reasonable terms and conditions on the use of the short-term rental permit in addition to those specified in this chapter to ensure the safe operation of the short-term rental, and to ensure the health, safety, and welfare of the residents and visitors of the City of Lake Elsinore. E. The owner shall comply with all operational requirements for short-term rentals, as provided further in LEMC 5.86.090. Exhibit A Page 5 of 10 F. If there is a deed restriction on a property that prohibits the use of a residential dwelling as a short-term rental, then that deed restriction shall control. The City shall not enforce said deed restriction. G. Short-term rental business license is not transferrable and any new owner of a short-term rental shall require the new owner to obtain a short-term business license from the City. 5.86.080 Permit term and renewal. An approved short-term rental permit is valid until December 31 of the year it is issued, unless suspended or revoked by the Director. The permittee may renew the permit annually, by submitting a renewal application and fee before the expiration of the permit. 5.86.090 Short-term rental operational requirements. All short-term rentals shall comply with the following operational requirements: A. The owner shall ensure that the short-term rental complies with all applicable codes regarding fire, building and safety, health and safety, and all other relevant laws and ordinances. B. A short-term rental shall not change the residential character of the outside appearance of the residence including color, material, lighting, or any advertising mechanism. C. The City may conduct inspections of the short-term rental unit before issuing a new permit, and before issuing any renewal permit. D. Guests shall not be permitted to stay at the short-term rental unit for longer than thirty (30) consecutive days. E. The owner shall provide to the guests a 24-hour emergency local contact person located within sixty (60) minutes of the short-term rental that will be available to respond to issues at the short- term rental. F. The short-term rental must have a visible house number easily seen from the street, day or night. G. The short-term rental is prohibited from having publicly visible advertisements or signs at the physical location of the dwelling. H. The short-term rental shall be used only for overnight lodging accommodations, and shall not be used for weddings, receptions, parties, bachelor/bachelorette parties, commercial functions, conferences, or other similar assemblies that are separate from the sole purpose of lodging. I. The primary guest of the short-term rental must be an adult 21 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. J. Guest log required. Exhibit A Page 6 of 10 1, The owner shall maintain a guest log, which log shall include the name, address and driver's license number, copy of the passport, or copy of other valid government identification of the primary adult guest of the short-term rental. This log shall be maintained for three years. 2. The owner shall require that same adult guest to sign a formal acknowledgment that he or she is legally responsible for compliance by guests of the short-term rental with all applicable laws, rules, and regulations of the use and occupancy of the short term rental; and. 3. The guest log, including any documentation attached thereto, shall be readily available for review upon request of any law enforcement officer or employee of the City authorized to enforce this chapter or State law. K. The owner shall require all guests to agree to a minimum stay of one night. L. Occupancy Limits. 1. The owner shall limit the occupancy of a short-term rental to a specific number of guests. The following table sets forth the maximum number of guests for all short-term rentals: Number of Bedrooms Total Guests 0-Studio 2 1 4 2 6 3 8 4 10 5 12 2. For any dwelling having more than five (5) bedrooms, the maximum number of guests shall not exceed twelve (12) persons. If the short-term rental permit limits the occupancy to a number less than that shown on the table, the limit in the permit shall govern. 3. The Director may, when unusual size, interior layout, parking , or other physical characteristics are shown, approve a greater maximum number of overnight guests as part of a short-term rental business license application or renewal. M. All vehicles of guests of a short-term rental single-family house or condominium shall be parked only in an approved driveway or garage on the short-term rental single-family house or condominium. The maximum number of vehicles allowed for a short-term rental single-family house or condominium shall be limited to the number of available off-street parking spaces; however, any short-term rental must have a minimum of two (2) off-street parking spaces. The owner shall provide access to the garage of the short-term rental if that area has been included in the determination of the number of available off-street parking spaces in accordance with this subsection. In no event shall off-street parking include the use of landscaped areas, any private or public sidewalk, parkway, walkway, or alley (or any portion thereof) located on, at, or adjacent to the short-term rental or the blocking of the driveway or street in front of the short-term rental. The term "sidewalk" shall include that portion of a driveway that is delineated for pedestrian travel or is in the public right-of-way. Exhibit A Page 7 of 10 N. Trash and refuse shall not be left stored within public view, except in proper containers for collection by the responsible trash hauler and between the hours of 9:00 p.m. the day before and 8:00 a.m. the day after the scheduled trash collection days. The owner of the short-term rental shall provide sufficient trash collection containers and service to meet the demand of guests. The short-term rental shall be free of debris both on-site and in the adjacent portion of the street. O. 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: 1. The maximum number of guests that are permitted and notification that failure to conform to the maximum occupancy is a violation of this chapter. 2. The number of parking spaces provided and, if not adjacent to the short-term rental, the location of assigned parking, and the maximum number of vehicles that are permitted. 3. The trash pick-up day(s) and applicable rules and regulations about leaving or storing trash on the exterior of the property. 4. Notification that the guest may be cited or fined by the City and/or immediately evicted by the owner for violating any applicable laws. 5. The name of the managing agency, authorized 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. 6. A copy of the good neighbor brochure. P. Guests shall not engage in outdoor activities on a short-term rental between the hours of 10:00 p.m. and 9:00 a.m. All activities at a short-term rental between 10:00 p.m. and 9:00 a.m. shall be conducted inside of a short-term rental so that no outdoor activity will disturb the peace of the neighborhood adjacent to a short-term rental or cause discomfort or annoyance to any reasonable person of normal sensitivity residing in the area. Q. No musical instrument, phonograph, loudspeaker, amplified or reproduced sound, or any machine or device for the production or reproduction of any sound shall be used outside or be audible from the outside of a short-term rental between the hours of 10:00 p.m. and 9:00 a.m. R. The owner or the local contact person shall ensure that the guests of a short-term rental do not create unreasonable noise or disturbances, engage in disorderly conduct, or violate provisions of this code or any State law on noise, disorderly conduct, overcrowding, the consumption of alcohol, or the use of illegal drugs. Owner or local contact person is expected to take all measures necessary to abate disturbances, including, but not limited to, directing the guests of a short-term rental to cease the disturbing conduct, calling for law enforcement services or enforcement officers, removing the guest(s), or taking any other action necessary to immediately abate the disturbance S. The owner or local contact person shall, upon notification that guests of his or her short-term rental have created unreasonable noise or disturbances, engaged in disorderly conduct, or committed violations of the LEMC or state law on, but not limited to, noise, disorderly conduct, or Exhibit A Page 8 of 10 overcrowding, take action to prevent a recurrence of such conduct by those guests or guests within sixty (60) minutes. T. The owner shall collect and remit transient occupancy taxes as required by Chapter 3.32 LEMC, and shall make such arrangements with the City's Finance Department as may be required to facilitate the remittance of such collected taxes to the City. U. The owner shall indemnify, defend and hold harmless the City, its elected officials, employees, agents, officers, and representatives, and each and all of them individually, from all liability or harm arising from or in connection with all claims, damages, attorney's fees, costs and allegations arising from or in any way related to the operation of the short-term rental; and, reimburse the City for any costs and attorney's fees that the City may be required to pay as a result of such action. The City may, at its sole discretion, participate at its own expense in the defense of any such action. 5.86.100 Advertising shall include permit number. A. All advertising appearing in any written publication or on any website that promotes the availability or existence of a short-term rental shall include the City-issued permit number as part of the rental offering. No person shall advertise the use of a dwelling as a short-term rental unless the City has approved a short-term rental permit in accordance with this chapter. B. Any person advertising or causing the advertisement of a short-term vacation rental that contains information regarding the maximum occupancy of the short-term vacation rental, shall advertise only the Maximum Occupancy Limit as stated in the permit issued in accordance with this chapter. 5.86.110 Records maintenance and production. The operator shall maintain for three years, records in such form as the tax administrator (as defined in, and required by, Chapter 3.32) may require to determine the amount of Transient Occupancy Tax owed to the City. The tax administrator shall have the right to inspect such records at all reasonable times. Such records shall be maintained at the owner or operator’s premises or shall be available for delivery to the tax administrator within one week after request. 5.86.120 Inspections. A. Every applicant applying for a short-term rental business license shall provide the city access to any premises, property, or dwelling which is the subject of the application, and the city shall be permitted to make any inspections as the city may determine is necessary from time to time throughout the application process. If a short-term rental business license is issued, the city shall be permitted access to the subject premises, property, or dwelling to determine continued compliance with this chapter and/or any conditions of approvals stated in the respective short- term rental business license. B. The owner shall pay to the city the actual costs of any inspections conducted in accordance with this chapter. 5.86.130 Suspension and revocation. Exhibit A Page 9 of 10 (a) The Director is authorized to suspend and/or revoke a short-term rental business license issued in accordance with this chapter upon the determination by the Code Enforcement Department of the City through written findings of a failure to comply with any provision of this chapter, any permit condition, or any agreement or covenant as required in accordance with this chapter. (b) The Director may suspend or revoke a short-term rental business license if any of the following occur: (1) The Director determines that the short-term rental has failed to comply with any aspect of this chapter, any permit condition, or any agreement or covenant as required in accordance with this chapter; or (2) Ownership is changed without securing a new short-term rental business license; or (3) The short-term rental fails to maintain required guest logs and records in accordance with LEMC 5.86.090(J); or (4) The short-term rental fails to allow inspection of the guest logs and records in accordance with LEMC 5.86.090(J). (c) The Director shall notify the owner of any suspension or revocation at the last known address for the owner. Such notice shall be provided at least 30 days before the effective date of any suspension or revocation; however, such suspension or revocation shall not affect the stay of any guest that was booked before the date of the suspension or revocation of the short-term rental. Sec. 5.86.140. - Violations/penalties. A. Any violation of any provisions of this chapter, at the discretion of the City Attorney or City Prosecutor, is punishable as a misdemeanor or an infraction in accordance with Chapter 1.16 LEMC, or is subject to administrative citation, at the discretion of the City, in accordance with Chapter 1.20 LEMC. Notwithstanding Chapter 1.16 LEMC, a violation of this chapter that is an infraction, and which poses a threat to public health and safety, is punishable by the following: 1. A fine not exceeding one thousand five hundred dollars ($1,500) for a first violation. 2. A fine not exceeding three thousand dollars ($3,000) for a second violation within one year. 3. A fine not exceeding five thousand dollars ($5,000) for each additional violation within one year of the first violation B. Public nuisance abatement. 1. Any short-term rental that is conducted in violation of any provisions of this chapter is hereby declared to constitute a public nuisance and, as such, may be abated or enjoined from further operation, under the applicable procedures stated in Chapter 8.18 LEMC or any other manner provided by law for the abatement of public nuisances. Exhibit A Page 10 of 10 2. All costs to abate such public nuisance, including attorneys' fees and court costs, shall be paid by the person causing the nuisance, including the short-term rental licensee and the property owner where the nuisance is occurring. C. The remedies described in this section are not mutually exclusive. Pursuit of any one remedy shall not preclude City from availing itself of any or all available administrative, civil, or criminal remedies, at law or equity. D. Any violation of the provisions of this chapter shall constitute a separate offense for every day during which such violation is committed or continued. 5.86.150 Appeals. The decision of the Director to suspend and/or revoke a short-term rental permit shall be final unless a written appeal of the action is filed in accordance with the provisions stated in LEMC 5.08.300. (Appeal) 5.86.160 Service of notices. All notices required by this chapter are deemed issued and served upon the date they are either deposited in the United States mail, postage prepaid, addressed to the applicant, short-term rental, or appellant at the mailing address identified in the application, the last updated address on file with the Director's office, or the mailing address on the appeal form; or, the date upon which personal service of the notice is provided to a responsible party. 5.86.170 Requirements are not exclusive. The requirements of this chapter shall be in addition to any license, permit, or fee required under any other provision of the LEMC. The issuance of any permit in accordance with this chapter shall not relieve any person or entity of any obligation to comply with all other provisions of the Municipal Code. 5.86.180 Amortization and amnesty period. Owners of short-term rentals shall apply for a short-term rental business license in accordance with this chapter within sixty (60) days after the effective date of this chapter. Owners of short- term rentals who, before the effective date of the chapter, failed to obtain a Transient Occupancy Registration Certificate in accordance with Chapter 3.32 LEMC, may do so without penalty notwithstanding the provisions of Chapter 3.32 LEMC if an application for the certificate is filed no later than sixty (60) days after the effective date of the chapter. Exhibit “B” Page 1 of 6 Section 1. Section 17.08.190 of the LEMC is hereby amended to add a new definition to read as follows: “Short-term rental” means a rental unit as defined in Chapter 5.86 LEMC. Section 2. Paragraph A of Section 17.60.040 of the LEMC is hereby amended to add a new paragraph 4 to read as follows: 4. Short-term rentals; subject to the completion and approval of an application for a short-term rental issued by the Director of Administrative Services or their designee and compliance with the provisions of Chapter 5.86 LEMC. Section 3. Paragraph A of Section 17.64.040 of the LEMC is hereby amended to add a new paragraph 5 to read as follows: 5. Short-term rentals; subject to the completion and approval of an application for a short -term rental issued by the Director of Administrative Services or their designee and compliance with the provisions of Chapter 5.86 LEMC. Section 4. Paragraph A of Section 17.68.040 of the LEMC is hereby amended to add a new paragraph 4 to read as follows: 7. Short-term rentals; subject to the completion and approval of an application for a short -term rental issued by the Director of Administrative Services or their designee and compliance with the provisions of Chapter 5.86 LEMC. Section 5. Paragraph A of Section 17.72.040 of the LEMC is hereby amended to add a new paragraph 4 to read as follows: 4. Short-term rentals; subject to the completion and approval of an application for a short -term rental issued by the Director of Administrative Services or their designee and compliance with the provisions of Chapter 5.86 LEMC. Section 6. Paragraph A of Section 17.76.040 of the LEMC is hereby amended to add a new paragraph 4 to read as follows: 4. Short-term rentals; subject to the completion and approval of an application for a short -term rental issued by the Director of Administrative Services or their designee and compliance with the provisions of Chapter 5.86 LEMC. Section 7 Paragraph A of Section 17.80.040 of the LEMC is hereby amended to add a new paragraph 4 to read as follows: 4. Short-term rentals; subject to the completion and approval of an application for a short-term rental issued by the Director of Administrative Services or their designee and compliance with the provisions of Chapter 5.86 LEMC. Section 8 Paragraph A of Section 17.84.040 of the LEMC is hereby amended to add a new paragraph 4 to read as follows: Exhibit “B” Page 2 of 6 4. Short-term rentals; subject to the completion and approval of an application for a short -term rental issued by the Director of Administrative Services or their designee and compliance with the provisions of Chapter 5.86 LEMC. Section 9: The Table of Mixed Use Land Uses in Section 17.86.020 of the LEMC is hereby amended to read as follows (new text underlined): P = Permitted use. C = Use subject to a conditional use permit. T = Temporary use permitted with a temporary use permit. █ = Prohibited use in the zone. P = Permitted C = Permitted with a CUP T = Temporary, permitted by TUP █ = Prohibited Use RMU CMU Additional Regulations Animal hospital C C Assembly use C C Automotive repair or service █ █ Bar, pub, cocktail lounge C C Bed and breakfast P P Botanical garden P P Cardroom █ C Caretaker quarters P P Car wash █ C Catering service C C Check cashing service █ P Cigar lounge/hookah bar C C Community center P P Day care facility C C Drive-through for bank, food, pharmacy █ C Financial institution P P Food establishment P P LEMC 17.86.035 Fortunetelling C C Government building P P Gun and ammunition sales █ C Exhibit “B” Page 3 of 6 P = Permitted C = Permitted with a CUP T = Temporary, permitted by TUP █ = Prohibited Use RMU CMU Additional Regulations Health, fitness or exercise club C P Home occupation P P Hotel █ C Housing, permanent: Apartment unit P P Boardinghouse P P Condominium C C Duplex, triplex, fourplex P P Row house/townhouse P P Kiosk for retail sales █ P LEMC 17.134.037 Library P P Live/work unit P P Massage establishment C C Medical marijuana dispensary █ █ Chapter 17.156 LEMC Medical office P P Mortuary █ C Museum C P Nightclub █ █ Open air market T T Personal service P P Professional office P P Park/playground P P Parking facility P P Pawn shop █ P/C CUP for gun sales Pet shop █ P Recreation facility C C Residential care facility C C Retail sale P P Short-term rental P P Chapter 5.86 LEMC Sidewalk vendors P P Chapter 5.31 LEMC Exhibit “B” Page 4 of 6 P = Permitted C = Permitted with a CUP T = Temporary, permitted by TUP █ = Prohibited Use RMU CMU Additional Regulations Studio/workshop P P Supportive housing P P Swap meet, indoor █ C Swap meet, outdoor █ █ Tattoo █ C Theater █ C Thrift store P P Transitional housing P P Other uses that the Director of Community Development finds to be in accord with the purpose of this chapter and having characteristics similar to those uses listed in this table P, C, T or █ P, C, T or █ Section 10: The Table of Mixed Use Land Uses in Section 17.134.020 of the LEMC is hereby amended to read as follows (new text underlined and deletions in strikethrough): P = Permitted use. C = Use subject to a conditional use permit. T = Temporary use permitted with a temporary use permit. █ = Prohibited use in the zone. P = Permitted C = Permitted with a CUP T = Temporary, permitted by TUP █ = Prohibited Use RMU CMU Additional Regulations Animal hospital C C Assembly use C C Automotive repair or service █ █ Bar, pub, cocktail lounge C C Bed and breakfast P P Botanical garden P P Cardroom █ C Exhibit “B” Page 5 of 6 P = Permitted C = Permitted with a CUP T = Temporary, permitted by TUP █ = Prohibited Use RMU CMU Additional Regulations Caretaker quarters P P Car wash █ C Catering service C C Check cashing service █ P Cigar lounge/hookah bar C C Community center P P Day care facility C C Drive-through for bank, food, pharmacy █ C Financial institution P P Food establishment P P LEMC 17.86.035 Fortunetelling C C Government building P P Gun and ammunition sales █ C Health, fitness or exercise club C P Home occupation P P Hotel █ C Housing, permanent: Apartment unit P P Boardinghouse P P Condominium C C Duplex, triplex, fourplex P P Row house/townhouse P P Kiosk for retail sales █ P LEMC 17.134.037 Library P P Live/work unit P P Massage establishment C C Medical marijuana dispensary █ █ Chapter 17.156 LEMC Medical office P P Mortuary █ C Museum C P Exhibit “B” Page 6 of 6 P = Permitted C = Permitted with a CUP T = Temporary, permitted by TUP █ = Prohibited Use RMU CMU Additional Regulations Nightclub █ █ Open air market T T Personal service P P Professional office P P Park/playground P P Parking facility P P Pawn shop █ P/C CUP for gun sales Pet shop █ P Recreation facility C C Residential care facility C C Retail sale P P Short-term rental P P Chapter 5.86 LEMC Sidewalk vendors P P Chapter 5.31 LEMC Studio/workshop P P Supportive housing P P Swap meet, indoor █ C Swap meet, outdoor █ █ Tattoo █ C Theater █ C Thrift store P P Transitional housing P P Other uses that the Director of Community Development finds to be in accord with the purpose of this chapter and having characteristics similar to those uses listed in this table P, C, T or █ P, C, T or █ Section 11 Section 17.148.030.E. of the LEMC is hereby amended to add a new paragraph 17 to read as follows: 17. Short-term rentals: Parking for short-term rentals shall comply with the parking requirements set forth in Chapter 5.86 LEMC. City of Lake Elsinore ♦ 130 S. Main Street ♦ 951.674.3124 www.lake-elsinore.org