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HomeMy WebLinkAbout2018-08-22 e-packet@6:31Wednesday, August 22, 2018 6:31 PM City of South San Francisco P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA Municipal Services Building, Council Chambers 33 Arroyo Drive, South San Francisco, CA Special City Council Special Meeting Agenda August 22, 2018Special City Council Special Meeting Agenda NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of California, the City Council of the City of South San Francisco will hold a Special Meeting on Wednesday, August 22, 2018, at 6:31 p.m., in the City Council Chambers, Municipal Services Building, 33 Arroyo Drive, South San Francisco, California. Purpose of the meeting: Call to Order. Roll Call. Agenda Review. Public Comments - comments are limited to items on the Special Meeting Agenda. ADMINISTRATIVE BUSINESS Study Session on Short-Term Vacation Rental Uses (Tony Rozzi, Principal Planner)1. Adjournment. Page 2 City of South San Francisco Printed on 8/31/2018 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:18-762 Agenda Date:8/22/2018 Version:1 Item #:1. Study Session on Short-Term Vacation Rental Uses (Tony Rozzi, Principal Planner) RECOMMENDATION Staff recommends that the City Council review options regarding regulation of short-term vacation rental uses, and provide staff with comments and/or direction regarding next steps. BACKGROUND Overview Short-term vacation rentals allow hosts to make a spare room or an entire dwelling unit available to potential renters.These transactions are usually made through residential hosting platform websites such as AirBnB, VRBO, Homeaway, or others, generally for 30 days or less. This type of lodging has gained popularity in recent years,providing more transient lodging options for travelers,as opposed to traditional hotels and bed-and-breakfasts.According to AirBnB,as of December 31, 2017,there were 100 active AirBnB hosts located within the city of South San Francisco,providing an estimated 11,500 guest stays per year.Many travelers use short-term vacation rentals while on business trips, for vacation,or while their home is under construction.This increase in popularity has occurred along with the rise of the “sharing economy”in which people rent cars,homes,beds,or other goods directly from other individuals, generally through internet hosting sites. Short-term vacation rentals include both hosted rentals,in which the resident,or host,is present and rents out a bedroom or a portion of the dwelling unit;and non-hosted rentals,where the renters occupy the full dwelling unit and the resident does not remain on-site.Short-term vacation rentals can also include properties that are not traditional homes.For example,AirBnB.com includes listings for houseboats and recreational vehicles that are semi-permanently attached to a set location for the duration of a reservation. Since short-term vacation rentals are a relatively recent phenomenon,the City’s current municipal code does not specifically address this type of use.As a result,current local regulations do not adequately address some of the unique issues facing this relatively new use.Issues related to short-term vacation rentals include the compatibility of a commercial use in a residential area,including concerns from neighbors about noise,parking, and public safety due to the frequent turnover of visitors.Another potential concern is that short-term vacation rentals could remove housing stock that could otherwise be available for long-term rental or for sale, exacerbating the existing housing shortage in the Bay Area.Defining the short term vacation rental use,and simultaneously establishing regulations for short-term vacation rentals would ensure that there are specific performance standards in place to provide clear direction to potential hosts and renters,and ensure that these uses are compatible with the neighborhoods where they are located. City of South San Francisco Printed on 8/17/2018Page 1 of 6 powered by Legistar™ File #:18-762 Agenda Date:8/22/2018 Version:1 Item #:1. In addition,specifically regulating these uses would establish a mechanism to require the payment of applicable taxes.Consistent with other lodging uses,taxes on short-term vacation rentals would include the Transient Occupancy Tax (TOT)of 10%of the gross rent paid by hotel guests,and the Conference Center Tax (CCT) which is $2.50 per occupied room per night,if short-term vacation rentals are specifically defined and regulated as a permitted use. State Law Senate Bill (SB)761,which took effect on January 1,2016,establishes some regulations for short term vacation rentals.SB 761 requires a hosting platform to provide a specific notice to an occupant listing a residence on the site that states,among other things,that,if the occupant is a tenant,listing the room,home, condominium,or apartment may violate the lease or contract and could result in legal action by the landlord, including possible eviction. Planning Commission On September 3,2015,the Planning Commission held a public hearing to consider amending the Zoning Code to establish regulations related to short-term vacation rental uses.At that meeting,the Planning Commission voted 4 to 1 in favor of recommending establishing regulations for short-term vacation rental uses in order to give the City the ability to review and regulate these uses.Several comments and concerns that the Planning Commission raised include the following: •Ensure that the host provides local health and safety information for renters; •Concern that the permitting process is overly restrictive; •Ensure that the process and regulations are well-publicized to the public; •Include 6-month and 12-month reviews for the proposed regulations and permitting process,to allow a period to analyze the level of compliance with a short-term vacation rental permit process,better understand issues related with this type of land use,and develop metrics for permit review and processing time. The item was brought to City Council for discussion on September 23,2015,with the Council ultimately directing staff to take no action on this issue and come back to Council at a later date. DISCUSSION There are several primary topic areas regarding the definition and regulation of short-term vacation rental uses outlined in the discussion below: •Establishing a definition for short-term vacation rentals; •Options for regulation of short-term vacation rentals; •Creating performance standards to ensure that,if these uses are permitted,they are compatible with the neighborhoods in which they will be located and that the City has a mechanism to collect any applicable taxes and fees; and •Enforcement of regulations. City of South San Francisco Printed on 8/17/2018Page 2 of 6 powered by Legistar™ File #:18-762 Agenda Date:8/22/2018 Version:1 Item #:1. Definition Short-term vacation rental uses are currently not specifically defined by the Zoning Code.Planning Staff has reviewed the existing land use classifications and has determined that the most similar type of use to a short- term vacation rental is a “Bed and Breakfast”use,which is a sub-classification of the “Lodging”commercial use classification (South San Francisco Municipal Code Section 20.620.004).A “Lodging”is defined as an establishment providing overnight accommodations to transient patrons for payment for periods of 30 consecutive calendar days or less.A “Bed and Breakfast”is defined as a residential structure that is in residential use with one or more bedrooms rented for overnight lodging and where meals may be provided. While similar,a “Bed and Breakfast”is different from a short-term vacation rental because it is a residential structure of which a portion (i.e.a bedroom that is available for rent)is dedicated to a commercial use of lodging.In contrast,a short-term vacation rental use typically reverts to a traditional residential use when the dwelling unit, or a portion of it, is not occupied by transient renters. Staff has examined the City’s current zoning regulations for substantially similar uses,and other jurisdictions’ regulations pertaining to short-term vacation rentals in order to recommend appropriate zoning revisions to regulate this emerging type of use.Creating a new definition for a “Short-term Vacation Rental”as a lodging use would be necessary in order to regulate,review,or establish performance standards for this type of use. Without a definition, the City is unable to effectively address or regulate this type of use. Regulatory Options Staff has reviewed the regulations enacted by other jurisdictions throughout the Bay Area and the state,and has determined that there are several different options for regulating short-term vacation rentals, discussed below: 1.Allow the use by right.One approach would be to consider these uses permitted by right and subject to performance standards (discussed in the section below),but not require a permit.This is the simplest approach for the hosts,because it requires the least amount of action on their part.A downside of this approach is that it is difficult to enforce performance standards because it is difficult to assess if hosts are meeting the required standards without a permitting process to formally review proposed uses. The cities of San Jose and San Diego currently utilize this approach. 2.Establish a permit process.Another option is to require City approval to ensure compliance,such as through a permit process.When permits are issued for a use at a property,staff review is required to ensure adherence to performance standards.A permit process provides the City with tools to enforce the use,including a record of which short-term vacation rentals are in use,their location,and contact information for a local manager for the short-term rental use. If the City wishes to establish a permit process,staff would create a new application form specific to this permit type and would update the planning permit fee schedule.Staff recommends a permit fee that is reasonable to ensure maximum participation from short-term rental hosts (suggested fee of $150).If a permit process is established,staff recommends that a permit be effective for one year from the date of issuance,and an annual City of South San Francisco Printed on 8/17/2018Page 3 of 6 powered by Legistar™ File #:18-762 Agenda Date:8/22/2018 Version:1 Item #:1. renewal should be required (suggested renewal fee of $50). 3.Specifically prohibit.This option would include amending the Zoning Code to explicitly prohibit short- term vacation rentals.This would be the most effective approach if the City’s intent is to definitively not permit short-term vacation rental uses.Several cities that staff reviewed prohibit short-term vacation rental uses,including the cities of Brisbane,Monterey,Berkeley,and Palo Alto.Of this group, Berkeley and Palo Alto are currently studying approaches to permit these uses. If the City Council chooses to permit short-term vacation rentals,either by right or through a permit process,it will be important to provide publicity and education about this type of use.Many municipalities have developed user-friendly guides to publicize and clarify the requirements for operating a short-term vacation rental.Staff recommends developing a similar guide.Staff recommends publicizing short-term vacation rental requirements on the City’s website and social media and working with hosting websites (such as AirBnB)to publicize the program and requirements.Staff will also attempt to work with hosting websites to collect the applicable taxes of any permitted short-term vacation rental in the City. Performance Standards If the Zoning Code is amended to include short-term vacation rentals as a permitted use,including performance standards would be an effective mechanism to address potential issues that could arise from short-term vacation rentals and ensure that hosts and renters understand the regulations attached to this type of use.These standards would only be needed if the use is permitted and would not be necessary if the use is specifically prohibited. If short-term vacation rentals are included in the Zoning Ordinance as a permitted use,the following is a list of the types of performance standards that staff recommends,based on a review of existing or proposed municipal regulations and local issues in the City.All of these standards are policy decisions for the City Council’s consideration. A.Type of Residence.Short-term vacation rentals shall be located and operated in a single-unit dwelling, in order to avoid impacts that could occur in multi-family residential dwelling units. B.Number of Uses.Short-term vacation rental uses shall be permitted in no more than one single-unit dwelling per lot. C.Residency Requirements.Only permanent residents (owner or tenant)of the dwelling unit shall be eligible to operate a short-term vacation rental use. D.Occupancy Limits.The number of renters shall be limited to 2 persons per vacant bedroom,plus 1 additional person. E.Limit on Duration.The aggregate number of days for transient occupancy of a non-hosted short-term vacation rental shall be capped at 90 per year.There is no recommended annual cap for hosted short- City of South San Francisco Printed on 8/17/2018Page 4 of 6 powered by Legistar™ File #:18-762 Agenda Date:8/22/2018 Version:1 Item #:1. term vacation rentals. F.Local Contact Information.If a permit process is required,the permit holder shall be required to keep on file with the City the name,telephone number,and email address of a local contact person who shall be responsible for responding to questions or concerns regarding the operation of a short-term vacation rental.This information shall be posted in a conspicuous location within the rental dwelling.The local contact person should be available 24 hours a day to accept telephone calls and respond physically to the short-term vacation rental within one hour when the unit is occupied. G.Noise.The short-term vacation rental use must comply with the adopted noise standards for the district in accordance with section 8.32.030 of the Municipal Code. H.Conduct.The short-term vacation rental host must ensure that transient occupants of the short-term vacation rental do not engage in disorderly conduct,or violate provisions of the Municipal Code or state law. I.Safety.All short-term vacation rentals must comply with all applicable building laws,including,but not limited to,providing functional smoke detectors,carbon monoxide detectors,heating,and otherwise satisfy all applicable requirements of the California Building Standards Code (California Code of Regulations,Title 24).An inspection shall not be required for a short-term vacation rental use,but the host shall be responsible for compliance,and complaints will be handled pursuant to the applicable provisions of the Municipal Code. J.Health and Safety Information.Hosts shall provide local health and safety information to renters, including locations of local hospitals and clinics, as well as non-emergency police contact information. K.Commercial Activities.Any commercial use beyond a permitted short-term vacation rental is prohibited. No Special Event as defined by Section 6.48.010 (“Notification of Event Required”)of the Municipal Code can be conducted as part of a short-term vacation rental. L.Advertising.If the City establishes a permit process for short-term vacation rental uses,all advertising (print or digital)for a short-term vacation rental shall include the number of the permit granted for the use. M.Business License.The short-term vacation rental host shall obtain a City business license in accordance with Chapter 6.12 (“Licensing Procedures”) of the Municipal Code. N.Applicable Taxes.The short-term vacation rental host shall collect and remit all applicable City taxes, including but not limited to Transient Occupancy taxes and Conference Center taxes in accordance with Chapter 4.20 (“Transient Occupancy Tax” of the Municipal Code, as required. O.Consistency with Other Agreements.A short-term vacation rental use must be permitted by applicable City of South San Francisco Printed on 8/17/2018Page 5 of 6 powered by Legistar™ File #:18-762 Agenda Date:8/22/2018 Version:1 Item #:1. O.Consistency with Other Agreements.A short-term vacation rental use must be permitted by applicable Homeowners Association (HOA)bylaws;Covenants,Conditions,and Restrictions (CC&Rs);and rental agreements. Enforcement Short-term vacation rentals may present enforcement challenges.Enforcement could be addressed through an inspection process or could occur on a complaint basis.If the City Council chooses to regulate short-term vacation rental uses,staff would work to publicize the requirements and/or permitting process for this type of use.Staff would also attempt to work with online platforms to publicize the City’s requirements in order to gain compliance. NEXT STEPS / RECOMMENDATION City staff recommends that the City Council review the options presented regarding short-term vacation rentals and provide staff with any comments and/or direction. Attachments 1.September 3, 2015 Planning Commission Hearing Staff Report 2.September 23, 2015 City Council Hearing Staff Report City of South San Francisco Printed on 8/17/2018Page 6 of 6 powered by Legistar™ Planning Commission Staff Report DATE: September 3, 2015 TO: Planning Commission SUBJECT: Zoning Text Amendments to establish regulations related to Short-Term Vacation Rental uses, in accordance with South San Francisco Municipal Code Chapter 20.550 ("Amendments to Zoning Ordinance and Map"). Case Nos.: P07-0136: ZA15-0006 RECOMMENDATION That the Planning Commission make findings and adopt a resolution recommending that the City Council adopt an Ordinance amending the Zoning Code establishing regulations related to Short-Term Vacation Rental uses. BACKGROUND/OVERVIEW Short-term vacation rentals, in which hosts can make a spare room or an entire dwelling unit available to potential renters, are becoming increasingly popular. These transactions are usually made through residential hosting platform websites such as Airbnb, VRBO, Homeaway, Flipkey, or others, generally for 30 days or less. This type of vacation rental lodging has become more popular, supplementing traditional transient lodging options such as hotels and bed-and-breakfasts. Many travelers use short-term vacation rentals while on business trips, for vacation, or while their home is under construction. This increase in popularity has occurred with the rise of the “sharing economy” in which people rent cars, homes, beds, or other goods directly from other individuals, generally through internet hosting sites. Short-term vacation rentals include both hosted rentals, in which the resident is present and rents out a bedroom or a portion of the dwelling unit; and non-hosted rentals, where the renters occupy the full dwelling unit and the resident does not remain on-site. While South San Francisco does not currently have the volume and interest in short-term vacation rentals that other cities have experienced recently, a cursory review indicates that there are several listings for properties within the City on Airbnb.com, and it is anticipated that the popularity of short-term vacation rentals will increase, as the region prepares for Super Bowl 50, which will be held on Sunday, February 7, 2016 at Levi’s Stadium in Santa Clara, as well as other large-scale conventions such as Oracle World and Dreamforce. Since short-term vacation rentals, and the sharing economy in general, are relatively recent phenomena, South San Francisco does not currently regulate this type of use. Concerns about short-term vacation rentals include the compatibility of a commercial use in a residential area, and concerns from neighbors about noise, parking and public safety due to the frequent turnover of visitors. Residents have also expressed concern that short-term vacation rentals located in multi-family residential buildings could have added impacts due to common spaces (parking, lobbies, hallways) and shared walls. Another concern is Staff Report Subject: Zoning Code Amendments – Short-Term Vacation Rental Uses Date: September 3, 2015 Page 2 of 12 that short-term vacation rentals could remove housing stock that could otherwise be available for long-term rental or for sale, adding to the existing housing shortage in the Bay Area. Defining and establishing regulations for short-term vacation rentals would ensure that there are specific performance standards in place to provide clear direction to potential hosts and renters, and ensure that these uses are compatible with the neighborhoods where they are located. Additionally, specifically regulating these uses would establish a mechanism to require the payment of applicable taxes. Consistent with other lodging uses, taxes on short-term vacation rentals would include the Transient Occupancy Tax (TOT) of 10% of the gross rent paid by hotel guests, and the Conference Center Tax (CCT) which is $2.50 per occupied room per night. State Law Currently, there is no state law in effect that addresses short-term vacation rentals; however, the state legislature was considering two bills. SB 761 pertains to short term vacation rentals, and has been enacted and is awaiting Governor Brown’s signature. If signed into law, it will be effective January 1, 2016 and would require a hosting platform to provide a specific notice to an occupant listing a residence on the site that states, among other things, that, if the occupant is a tenant, listing the room, home, condominium, or apartment may violate the lease or contract and could result in legal action by the landlord, including possible eviction. SB 593, which has been postponed until the next legislative session, would have established reporting requirements for residential hosting platform websites (such as Airbnb); prohibit hosting platforms from offering properties that are prohibited by local law; and, require the hosting platform to collect and remit required taxes if requested by a local jurisdiction. DISCUSSION Current Regulations Short-term vacation rental uses are currently not addressed by the current Zoning Code. Staff has reviewed the existing land use classifications, and has determined that the most similar type of use to a short-term vacation rental is a “Bed and Breakfast” use, which is a sub-classification of the “Lodging” commercial use classification, defined as a residential structure that is in residential use with one or more bedrooms rented for overnight lodging and where meals may be provided (SSFMC Section 20.620.004). While similar, a “Bed and Breakfast” is differentiated from a short-term vacation rental because it is a residential structure of which a portion (i.e. a bedroom that is available for rent) is a dedicated commercial use. In contrast, a short-term vacation rental use reverts to a traditional residential use when the dwelling unit, or a portion of it, is not occupied by transient renters. Proposed Revisions Staff has examined the City’s current zoning regulations for substantially similar uses, and other jurisdictions’ regulations pertaining to short-term vacation rentals in order to recommend appropriate zoning revisions to regulate this emerging type of use. The proposed zoning amendment before the Planning Commission would create a new definition for a “Short-Term Vacation Rental” as a lodging use, create performance standards for this new use, and revise the zoning districts where Short-Term Vacation Rental uses will be permitted, subject to the approval of a Short-Term Vacation Rental permit. Staff Report Subject: Zoning Code Amendments – Short-Term Vacation Rental Uses Date: September 3, 2015 Page 3 of 12 Short-Term Vacation Rental Permit Process The proposed review and permitting process for a Short-Term Vacation Rental is intended to balance the need to have regulatory oversight for this type of use, while also provide a simple and relatively streamlined review process, to encourage members of the public to apply for a permit prior to advertising their home as a short-term vacation rental. Staff will be able to review the application in an expedited manner, rather than requiring a Minor Use Permit process, which would take approximately four to six weeks. The Chief Planner will provide approval for Short-Term Vacation Rental permits. The process for a Short-Term Vacation Rental permit will be similar to that for a Type “A” Sign Permit, in terms of application requirements, review process, and fees. Staff is recommending the fee for a Short-Term Vacation Rental permit of $150.00. For comparison, the fee for a Minor Use Permit for a residential use is $350.00. The recommended fee is intended to ensure maximum participation from short-term rental hosts in the City. As opposed to other planning permits, the approval for a Short-Term Vacation Rental will be issued to a specific person at a specific address; it will not be attached to the property. The Short-Term Vacation Rental permit would be valid for the term of one year, and would need to be renewed after this term if the host wishes to continue operating a short-term vacation rental use, with a renewal fee of $50.00. If the Short-Term Vacation Rental regulations are adopted, staff would create a new application form specific to this permit type and would update the planning permit fee schedule. A sample Short-Term Vacation Rental permit application is attached for reference. Many municipalities have developed user- friendly guides to publicize and clarify the requirements for operating a short-term vacation rental. Staff recommends developing a similar guide as part of the permit application packet. Pilot Program Based on feedback from the Joint Housing Subcommittee, staff is proposing a one-year pilot program to permit Short-Term Vacation Rentals, subject to application for and approval of a Short-Term Vacation Rental permit. Establishing a pilot program will enable proactive regulation and review of Short-Term Vacation Rental uses. It will also provide an opportunity to evaluate the interest in and the volume of permit applications, and analyze the costs to implement compared to revenue collected. It is anticipated that there may be a spike in interest in hosting short-term vacation rentals due to the Super Bowl in February, 2016, when there will be an influx of tourists and visitors to the Bay Area. Staff recommends publicizing the Short-Term Vacation Rental permit program via the City’s website and social media, and also working with hosting websites to publicize the program and requirements. Text of Proposed Zoning Ordinance Revisions The primary change with the proposed zoning amendments would be to introduce a new definition that captures the characteristics of short-term vacation rental uses as a sub-classification of the Lodging Commercial Use Classification. In addition, minor changes to the “Bed and Breakfast” sub-classification of the Lodging Commercial Use Classification are proposed, in order to clarify the differences between Short- Term Vacation Rental uses and Bed and Breakfast uses. The proposed revisions are included below in red with deletions in strikethrough and additions in double underline, with a summary of the changes. Staff Report Subject: Zoning Code Amendments – Short-Term Vacation Rental Uses Date: September 3, 2015 Page 4 of 12 1. Revise Chapter 20.620.004 “Lodging” definitions (Commercial Use Classifications) as follows: Lodging. Bed and Breakfast. A residential structure that is in residential use with one or more bedrooms dedicated for rental rented for overnight lodging and where meals may be provided. This use type specifically excludes Short-Term Vacation Rental, as defined by this section. Short-Term Vacation Rental. A residential structure that is rented to a transient occupant for a period of less than 30 days. The full residential structure, or a portion of it, can be rented to a transient occupant in a short-term vacation rental use. This classification includes both hosted rentals (the Host, or primary resident, is present in the dwelling unit that is being used as a short- term rental) and non-hosted rentals (the host is not present in the dwelling unit that is being used as a short-term rental). These zoning amendments would establish a new use classification under “Lodging” named “Short-Term Vacation Rental”. By introducing the definition and use into the land use tables, the City would have the ability to regulate these uses, and establish a pilot program for Short-Term Vacation Rental permits. 2. Revise Section 20.350, Standards and Requirements for Specific Uses and Activities, to add a section to include performance standards for Short-Term Vacation Rentals, as follows: 20.350.035.05 Short-Term Vacation Rentals Short-term vacation rental uses shall be located, developed, and operated in compliance with the following standards: A. Type of Residence. Must be located and operated in a single-unit dwelling. B. Number of Uses. Short-term vacation rental uses shall be permitted in no more than one single-unit dwelling per lot. C. Permit Required; Duration of Permit. Any Short-Term Vacation Rental must apply for a Short- Term Vacation Rental Permit on a form approved by the Chief Planner. The Short-Term Vacation Rental Permit for a short-term vacation rental is valid for one year from date of issuance. D. Residency Requirements. Only permanent residents (owner or tenant) of the dwelling unit are eligible to operate a short-term vacation rental use. E. Transient Occupancy Limits. a. Hosted Rentals: If the host is onsite, the number of transient occupants must be limited to 2 or fewer. b. Non-hosted Rentals: If the host is offsite, the number of transient occupants must be limited to 2 persons/bedroom, plus 2 additional persons. Staff Report Subject: Zoning Code Amendments – Short-Term Vacation Rental Uses Date: September 3, 2015 Page 5 of 12 F. Limit on Duration. The aggregate number of days for transient occupancy of a non-hosted short-term vacation rental is capped at 90 per term of the permit. There is no annual cap for hosted short-term vacation rentals. a. Local Contact Information. The permit holder shall keep on file with the City the name, telephone number, and email address of a local contact person who shall be responsible for responding to questions or concerns regarding the operation of a short-term vacation rental. This information shall be posted in a conspicuous location within the rental dwelling. The local contact person shall be available 24 hours a day to accept telephone calls and respond physically to the short-term vacation rental within one hour when the unit is occupied. b. Noise. The short-term vacation rental use must comply with the adopted noise standards for the district in accordance with section 8.32.030 of this code. G. Conduct. The permit holder must ensure that transient occupants of the short-term vacation rental do not engage in disorderly conduct, or violate code provisions or state law. H. Safety. All short-term vacation rentals must comply with all applicable building laws, including, but not limited to, providing working smoke detectors, carbon monoxide detectors, contain working heating, and otherwise satisfy all applicable requirements of the California Building Standards Code. I. Commercial Activities. Any commercial use beyond a permitted short-term vacation rental is prohibited. No Special Event as defined by section 6.48 of this code can be conducted as part of a Short-Term Vacation Rental. J. Advertising. All advertising (print or digital) for a short-term vacation rental shall include the number of the permit granted for the use. K. Business License. The permit holder shall obtain a city business license in accordance with Chapter 6.16 of this code. L. Applicable Taxes. The permit holder shall collect and remit all applicable City Taxes, including but not limited to Transient Occupancy Taxes and Conference Center Taxes in accordance with Chapter 4.20 of this code, as required. M. Consistency with Other Agreements. A short-term vacation rental use must be permitted by applicable HOA bylaws; Covenants, Conditions and Restrictions (CC+Rs); and rental agreements. N. Transferability. Short-term vacation rental permits are personal to the Host and shall not run with the land. The permission to operate a short-term vacation rental use shall be limited to the property owner / resident to whom the City issued the permit. Staff Report Subject: Zoning Code Amendments – Short-Term Vacation Rental Uses Date: September 3, 2015 Page 6 of 12 3. Update Table 20.080.002 – Land Use Regulations, Residential Districts, as indicated below: Table 20.080.002: Land Use Regulations—Residential Districts Use Classification RL-1.3 RL-5,6, and 8 RM-10, 15, and 17.5 RH-30 and 35 Additional Regulations COMMERCIAL USE TYPES Lodging See sub-classifications below Bed and Breakfast MUP MUP MUP MUP See Section 20.350.010 Bed and Breakfast Lodging Short-Term Vacation Rental P (7) P (7) P (7) P (7) See Section 20.350.035.05 Short Term Vacation Rental Limitations: 1. Only in single-unit detached structures. 2. Limited to facilities serving a maximum of 10 victims and may not be located within 300 feet of any other domestic violence shelter. 3. Subject to state licensing requirements. 4. Only on parcels with access from arterial streets. 5. Minor Use Permit required when located within an existing building. Conditional Use Permit required for new construction. 6. Limited to sites with a maximum gross site area of 6,500 square feet and located on an arterial street. 7. Short-Term Vacation Rental Permit required (see section 20.350.035.05, Short-Term Vacation Rental). For property in Residential Zoning Districts, “Short-Term Vacation Rentals” would be a new use listed in the tables, and would be a permitted use, subject to the submittal and approval of a Short-Term Vacation Rental Permit application, and the performance standards proposed in Section 20.350.035.05. 4. Update Table 20.100.002 - Land Use Regulations—Downtown Districts, as indicated below: Use Classification DMX DRL DRM DRH Additional Regulations Commercial Uses Lodging See sub-classifications below Bed and Breakfast MUP MUP MUP MUP See Section 20.350.010 Bed and Breakfast Lodging Hotels and Motels C - - - Short-Term Vacation Rentals P (11) P (11) P (11) P (11) See Section 20.350.035.05 Short Term Vacation Rental Staff Report Subject: Zoning Code Amendments – Short-Term Vacation Rental Uses Date: September 3, 2015 Page 7 of 12 Use Classification DMX DRL DRM DRH Additional Regulations Limitations: 1. Permitted if existing. New units not allowed. 2. Limited to sites with a maximum gross site area of 4,000 square feet. 3. Prohibited on the ground floor except residential uses located south of Baden Avenue, banks, and walk-in offices which are subject to approval of a Use Permit. 4. Permitted if retail, restaurants, personal services, or other active pedestrian-oriented use is located on the ground floor, otherwise Minor Use Permit is required. Minor Use Permit may only be approved if the Review Authority first finds that, based on information in the record, it is infeasible to locate retail, restaurants, personal services, or other active pedestrian-oriented use on the ground floor. 5. Limited to facilities serving a maximum of 10 victims and may not be located within 300 feet of any other domestic violence shelter. 6. Subject to state licensing requirements. 7. Clinic uses may not occupy the ground floor, except along Grand Avenue, west of Maple Avenue, which are subject to the approval of a conditional use permit. 8. Living space may not occupy ground floor. 9. Limited to upper stories unless at least 50 percent of ground floor street frontage is occupied by food service use. 10. Limited to single-family detached units. 11. Short-Term Vacation Rental Permit required (see section 20.350.035.05, Short-Term Vacation Rental). 5. Update Section 20.240.03 – Land Use Permitted, as indicated below: The following uses are permitted subject to the regulations contained in this chapter, the Terrabay specific plans and applicable sections of the South San Francisco Municipal Code and subject to further approvals as required. A. Terrabay Residential District (Residential Parcels). 1. Public and private open space areas. 2. Habitat conservation areas. 3. Public and private parks, playgrounds, tot lots, recreation/community buildings, and fire stations. 4. Schools. 5. Day care centers. 6. Public and private utilities, and facilities. Staff Report Subject: Zoning Code Amendments – Short-Term Vacation Rental Uses Date: September 3, 2015 Page 8 of 12 7. Single-unit detached dwellings consisting of 125 units in the Park and 135 units in Woods East and Woods West (collectively) neighborhoods only. 8. Townhomes consisting of 175 units in the Village neighborhood in two, three and four unit clusters only. 9. One condominium/apartment tower consisting of 112 one, two and three bedroom units in the Peninsula Mandalay Tower only. 10. Single- unit paired residential units consisting of 70 single-family units attached in 35 structures, paired in two side-by-side attached units (i.e., side by side duplex design) in the Mandalay Point neighborhood only. 11. Home occupations. 12. Accessory buildings and uses. 13. Short-term vacation rental, subject to the approval a Short-Term Vacation Rental Permit and per the requirements of Section 20.350.035.05, Short-Term Vacation Rental. The proposed change to the Terrabay Residential District permitted uses is required in order to allow short- term vacation rentals in eligible single-unit dwellings within this district. 6. Update Table 20.250.003 – Land Use Regulations for Transit Village Sub-districts, as indicated below: TABLE 20.250.003: Land Use Regulations for Transit Village Sub-districts Uses Permitted TV-C TV-R TV-RM TV-RH Additional Regulations RESIDENTIAL USE CLASSIFICATIONS Single-Unit Dwelling See sub-classifications below Single-Unit Attached - - P P Multi-Unit Residential P(1) P(1) P P COMMERCIAL USE CLASSIFICATIONS Lodging See sub-classifications below Hotels and Motels C - - - Short-Term Vacation Rental - - P (4) P (4) See Section 20.350.035.05 Short-Term Vacation Rental Staff Report Subject: Zoning Code Amendments – Short-Term Vacation Rental Uses Date: September 3, 2015 Page 9 of 12 TABLE 20.250.003: Land Use Regulations for Transit Village Sub-districts Uses Permitted TV-C TV-R TV-RM TV-RH Additional Regulations Specific Limitations: 1. Not permitted as a principal ground floor use on a street where retail storefronts occupy 50 percent of more of the building frontage. 2. Customer service offices are permitted on the ground level, and other offices are permitted on the second floor or when conducted as an accessory use with a permitted use on the site, occupying no more than 25 percent of the floor area. Additional office space may be allowed with a Use Permit, upon finding that such use will not conflict with adjacent street level retail uses. 3. Permitted as a secondary use on the second floor, occupying no more than 25 percent of the total building area. 4. Short-Term Vacation Rental Permit required (see section 20.350.035.05, Short-Term Vacation Rental). For property in Transit Village Residential Zoning Districts, “Short-Term Vacation Rentals” would be a new use listed in the tables, and would be a permitted use, subject to the submittal and approval of a Short- Term Vacation Rental Permit application, and the performance standards proposed in Section 20.350.035.05. 7. Update Table 20.280.003 Land Use Regulations Downtown Station Area Specific Plan Sub- Districts, as indicated below: Uses Permitted DTC GAC DRC TO/RD LCC LNC Additional Regulations Lodging See sub-classifications below Bed and Breakfast - MUP (5) C - MUP MUP See Section 20.350.010 Bed and Breakfast Lodging Short-Term Vacation Rental P (8) P (8) P (8) P (8) P (8) P (8) See Section 20.350.035.05 Short-Term Vacation Rental Staff Report Subject: Zoning Code Amendments – Short-Term Vacation Rental Uses Date: September 3, 2015 Page 10 of 12 Uses Permitted DTC GAC DRC TO/RD LCC LNC Additional Regulations Limitations: 1. Permitted if existing. New units not allowed. 2. Limited to facilities serving a maximum of 10 victims and may not be located within 300 feet of any other domestic violence shelter. 3. Prohibited on the ground floor except residential uses located south of Baden Avenue, banks and walk-in offices which are subject to approval of a Use Permit. 4. Subject to licensing requirements. 5. Limited to upper stories unless at least 50 percent of the ground floor street frontage is occupied by food service uses. 6. Must be located at least 1,000 feet from any other social service facility. 7. Clinic uses may not occupy the ground floor along Grand Avenue, except on properties located west of Maple Avenue, which are subject to the approval of a conditional use permit. 8. Short-Term Vacation Rental Permit required (see section 20.350.035.05, Short-Term Vacation Rental.) While the Downtown Station Area Specific Plan envisions higher densities and intensities in these districts, there are existing single-unit dwellings within several of the DSASP sub-districts. These proposed changes are would permit short-term vacation rentals within these existing single-unit dwellings, subject to the submittal and approval of a Short-Term Vacation Rental Permit application, and the performance standards proposed in Section 20.350.035.05. 8. Update Table 20.330.004: Required On-Site Parking Spaces, as indicated below: Table 20.330.004: Required On-Site Parking Spaces Land Use Classification Required Parking Spaces COMMERCIAL USE CLASSIFICATIONS Lodging Bed and Breakfast 1 per room for rent in addition to parking required for residential use. Hotels and Motels 1 per each sleeping unit, plus 2 spaces adjacent to registration office. Additional parking required for ancillary uses, such as restaurants, according to the parking requirements for the ancillary use. See Subsection 20.330.006(C) Airport-Oriented Hotels and Motels. Short-Term Vacation Rental At least one off-street parking space required for use by the short-term vacation rental transient occupants. The required parking for the existing residential use may be used to provide this parking space. Table 20.330.004 will be updated to include a parking requirement for Short-Term Vacation Rental Uses. Staff Report Subject: Zoning Code Amendments – Short-Term Vacation Rental Uses Date: September 3, 2015 Page 11 of 12 Benefits to the Proposed Zoning Amendments Adding a definition of “Short-Term Vacation Rentals” and including performance standards for this type of use offers the City the ability to review and regulate these uses, since the Zoning Ordinance does not currently include a definition that addresses these uses. In order to minimize impacts to residential neighborhoods and preserve neighborhood character, robust performance standards would limit these uses to single-family residential dwelling units, require on-site parking, limit the number of days that a dwelling unit may be used as a short-term vacation rental, limit the number of guests at one time, and require local property management. Additionally, the regulations for short-term vacation rentals will require payment of taxes, consistent with other lodging uses within the City. Finally, regulation of these types of uses will help to ensure that potential for-sale or long-term rental units are not being removed from the market to be offered as short-term vacation rentals, and thus not contribute to the Bay Area’s housing shortage. GENERAL PLAN CONSISTENCY Any change to the Zoning Ordinance must be consistent with the General Plan and any applicable specific plans. In this case, the proposed Zoning Amendment is consistent with the adopted General Plan because the Zoning Amendment will reinforce the General Plan policies, is consistent with the relevant specific plans, and is consistent with the City’s overall vision for community development, economic vitality, and preservation of residential neighborhood character. None of the new or revised use definitions, performance standards, and modifications to allowable land uses will conflict with or impede achievement of any of the goals, policies, or land use designations established in the General Plan. ENVIRONMENTAL DETERMINATION The revisions and corrections set forth in this Zoning Amendment, as they relate to “Short-Term Vacation Rental” uses Citywide, are minor in nature, the adoption of which would not result in any new significant environmental effects or a substantial increase in the severity of any previously identified effects beyond those disclosed and analyzed in the IS/ND prepared and circulated for the Zoning Ordinance adoption, nor do the refinements, clarifications, and/or corrections constitute a change in the project or change in circumstances that would require additional environmental review. Accordingly, no further CEQA review is required to approve the amendments. CONCLUSION Staff is recommending that the Planning Commission adopt a Resolution with findings to recommend approval of the proposed Zoning Ordinance text amendments to the City Council. The proposed changes should protect neighborhood character and encourage short-term vacation rental hosts to obtain permits. The new definition and performance standards will help to create clear requirements for short-term vacation rentals. Staff Report Subject: Zoning Code Amendments – Short-Term Vacation Rental Uses Date: September 3, 2015 Page 12 of 12 Adena Friedman Senior Planner ATTACHMENTS: 1. Draft Zoning Text Amendment Resolution a. Exhibit A – Draft Ordinance Revision 2. Sample Short-Term Vacation Rental Application RESOLUTION NO._________ PLANNING COMMISSION, CITY OF SOUTH SAN FRANCISCO STATE OF CALIFORNIA A RESOLUTION RECOMMENDING MODIFICATIONS TO THE SOUTH SAN FRANCISCO ZONING CODE, RELATED TO SHORT-TERM VACATION RENTAL USES CITYWIDE WHEREAS, in July of 2010, the City Council for the City of South San Francisco adopted a comprehensive update to the City’s zoning ordinance, which repealed the then-existing Title 20 of the South San Francisco Municipal Code (“Zoning Ordinance”), and replaced it with an entirely new Title 20 that, among other actions, established new zoning districts, revised and reformatted many then-existing zoning provisions, eliminated inconsistent and outdated provisions, and codified entirely new zoning provisions, including new land use regulations and development standards; and, WHEREAS, short-term vacation rental uses have grown in popularity with the rise of the sharing economy; and, WHEREAS, the City has identified the need to regulate short-term vacation rental uses in order to minimize impacts to residential neighborhoods and preserve neighborhood character, while balancing tourism; and, WHEREAS, staff recommends defining a short-term vacation rental as a lodging use that is subject to Transient Occupancy Tax and Conference Center Tax requirements; and, WHEREAS, City staff prepared the attached Zoning Code text amendment (“Zoning Amendment”) to include a definition of short-term vacation rentals as a new lodging sub- classification and establish performance standards for these use; and, WHEREAS, the Zoning Ordinance was adopted after preparation, circulation, consideration, and adoption of an Initial Study/Negative Declaration (“IS/ND”) in accordance with the California Environmental Quality Act, Public Resources Code Sections 21000, et seq. (“CEQA”), which IS/ND analyzed the environmental impacts of adopting the Zoning Ordinance and concluded that adoption of the Zoning Ordinance could not have a significant effect on the environment because none of the impacts required to be analyzed under CEQA would exceed established thresholds of significance; and, WHEREAS, the refinements, clarifications, and/or corrections set forth in this Zoning Amendment, as they relate to Short-Term Vacation Rental uses Citywide, are minor in nature, the adoption of which would not result in any new significant environmental effects or a substantial increase in the severity of any previously identified effects beyond those disclosed and analyzed in the IS/ND prepared and circulated for the Zoning Ordinance, nor do the refinements, clarifications, and/or corrections constitute a change in the project or change in circumstances that would require additional environmental review. WHEREAS, on September 3, 2015 the Planning Commission for the City of South San Francisco held a lawfully noticed public hearing to solicit public comment and consider the proposed amendments, take public testimony, and make a recommendation to the City Council on the project. NOW, THEREFORE, BE IT RESOLVED that based on the entirety of the record before it, which includes without limitation, the California Environmental Quality Act, Public Resources Code §21000, et seq. (“CEQA”) and the CEQA Guidelines, 14 California Code of Regulations §15000, et seq.; the South San Francisco General Plan and General Plan EIR; the South San Francisco Municipal Code; the Zoning Ordinance Text Amendments; and all reports, minutes, and public testimony submitted as part of the Planning Commission’s duly noticed September 3, 2015 meeting; and any other evidence (within the meaning of Public Resources Code §21080(e) and §21082.2), the Planning Commission of the City of South San Francisco hereby finds as follows: SECTION I FINDINGS A. General Findings. 1. The foregoing recitals are true and correct and made a part of this Resolution. 2. Exhibit A attached to this Resolution, is incorporated by reference and made a part of this Resolution, as if set forth fully herein. 3. The documents and other material constituting the record for these proceedings are located at the Planning Division for the City of South San Francisco, 315 Maple Avenue, South San Francisco, CA 94080, and in the custody of Chief Planner, Sailesh Mehra. B. Zoning Amendment Findings 1. The proposed Zoning Amendment is consistent with the adopted General Plan because the Zoning Amendment will reinforce the General Plan policies, is consistent with the relevant specific plans, and is consistent with the City’s overall vision for community development, economic vitality, and preservation of residential neighborhood character. None of the new or revised use definitions and modifications to allowable land uses will conflict with or impede achievement of any of the goals, policies, or land use designations established in the General Plan. 2. The Zoning Amendment to include the Short-Term Vacation Rental definition and performance standards for these uses would protect future land uses in the applicable zoning districts but would not affect any particular subject property. The zoning districts where Short- Term Vacation Rental uses would be permitted or conditionally permitted are generally suitable in terms of access, size of parcel, relationship to similar or related uses, and other considerations as deemed relevant by the Planning Commission and City Council because the proposed uses are consistent with General Plan policies, specifically those policies related to maintaining a balanced land use program with appropriate performance standards to ensure that Short-Term Vacation Rental uses do not negatively impact residential neighborhoods. 3. The proposed change in permitted or conditionally permitted uses in certain zoning districts will not be detrimental to the use of land in any adjacent zone because the proposed Zoning Amendment will include performance standards for Short-Term Vacation Rental Uses that pertain to parking, safety, and occupancy limits. SECTION II RECOMMENDATION NOW, THEREFORE, BE IT FURTHER RESOLVED that the Planning Commission of the City of South San Francisco hereby makes the findings contained in this Resolution, and recommends that the City Council adopt an ordinance amending the Zoning Code, as attached hereto as Exhibit A. BE IT FURTHER RESOLVED that this Resolution shall become effective immediately upon its passage and adoption. * * * * * * * I hereby certify that the foregoing resolution was adopted by the Planning Commission of the City of South San Francisco at the regular meeting held on the 3rd day of September, 2015 by the following vote: AYES:________________________________________________________________ NOES:________________________________________________________________ ABSTENTIONS:________________________________________________________ ABSENT:______________________________________________________________ Attest:__________________________________ Sailesh Mehra Secretary to the Planning Commission Exhibit A Zoning Ordinance Text Amendments to Establish Regulations Related to Short-Term Vacation Rental Uses ORDINANCE NO. ________ CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO STATE OF CALIFORNIA AN ORDINANCE MAKING MODIFICATIONS TO THE SOUTH SAN FRANCISCO ZONING CODE, RELATED TO SHORT-TERM VACATION RENTAL USES CITYWIDE WHEREAS, in July of 2010, the City Council for the City of South San Francisco adopted a comprehensive update to the City’s zoning ordinance, which repealed the then-existing Title 20 of the South San Francisco Municipal Code (“Zoning Ordinance”), and replaced it with an entirely new Title that, among other actions, established new zoning districts, revised and reformatted many then-existing zoning provisions, eliminated inconsistent and outdated provisions, and codified entirely new zoning provisions, including new land use regulations and development standards; and, WHEREAS, short-term vacation rental uses have grown in popularity with the rise of the sharing economy; and, WHEREAS, the City of South San Francisco (“City”) has identified the need to regulate short-term vacation rental uses in order to minimize impacts to neighborhoods and preserve neighborhood character, while balancing the desire to accommodate tourism; and, WHEREAS, staff recommends defining a short-term vacation rental as a lodging use that is subject to Transient Occupancy Tax and Conference Center Tax requirements; and, WHEREAS, City staff prepared the attached Zoning Code text amendment (“Zoning Amendment”) to include a definition of short-term vacation rentals as a new lodging sub- classification and establish performance standards for these uses; and, WHEREAS, the Zoning Ordinance was adopted after preparation, circulation, consideration, and adoption of an Initial Study/Negative Declaration (“IS/ND”) in accordance with the California Environmental Quality Act, Public Resources Code Sections 21000, et seq. (“CEQA”), which IS/ND analyzed the environmental impacts of adopting the Zoning Ordinance and concluded that adoption of the Zoning Ordinance could not have a significant effect on the environment because none of the impacts required to be analyzed under CEQA would exceed established thresholds of significance; and, WHEREAS, the refinements, clarifications, and/or corrections set forth in this Zoning Amendment, as they relate to Short-Term Vacation Rental uses Citywide, are minor in nature, the adoption of which would not result in any new significant environmental effects or a substantial increase in the severity of any previously identified effects beyond those disclosed and analyzed in the IS/ND prepared and circulated for the Zoning Ordinance, nor do the refinements, clarifications, and/or corrections constitute a change in the project or change in circumstances that would require additional environmental review. NOW, THEREFORE, BE IT ORDAINED that based on the entirety of the Record before it, as described below, the City Council of the City of South San Francisco does hereby ORDAIN as follows: SECTION I. FINDINGS. Based on the entirety of the record as described above, the City Council for the City of South San Francisco hereby makes the following findings: A. General Findings. 1. The foregoing recitals are true and correct and made a part of this Ordinance. 2. The Record for these proceedings, and upon which this Ordinance is based, includes without limitation, Federal and State law; the California Environmental Quality Act (Public Resources Code §§ 21000, et seq. (“CEQA”)) and the CEQA Guidelines (14 California Code of Regulations § 15000, et seq.); the South San Francisco 1999 General Plan and General Plan Environmental Impact Report, including the 2001 updates to the General Plan and 2001 Supplemental Environmental Impact Report; the South San Francisco Municipal Code; the Initial Study and Negative Declaration prepared for the Zoning Ordinance Update, including all written comments received; all reports, minutes, and public testimony submitted as part of the Planning Commission's duly noticed meeting on September 3, 2015; all reports, minutes, and public testimony submitted as part of the City Council's duly noticed meeting on ________, 2015; and any other evidence (within the meaning of Public Resources Code §21080(e) and §21082.2). 3. The documents and other material constituting the record for these proceedings are located at the Planning Division for the City of South San Francisco, 315 Maple Avenue, South San Francisco, CA 94080, and in the custody of Chief Planner, Sailesh Mehra. B. Zoning Amendment Findings 1. The proposed Zoning Amendment is consistent with the adopted General Plan because the Zoning Amendment will reinforce the General Plan policies, is consistent with the relevant specific plans, and is consistent with the City’s overall vision for community development, economic vitality, and preservation of residential neighborhood character. None of the new or revised use definitions and modifications to allowable land uses will conflict with or impede achievement of any of the goals, policies, or land use designations established in the General Plan. 2. The Zoning Amendment to include the Short-Term Vacation Rental definition and performance standards for these uses would protect future land uses in the applicable zoning districts but would not affect any particular subject property. The zoning districts where Short- Term Vacation Rental uses would be permitted or conditionally permitted are generally suitable in terms of access, size of parcel, relationship to similar or related uses, and other considerations as deemed relevant by the Planning Commission and City Council because the proposed uses are consistent with General Plan policies, specifically those policies related to maintaining a balanced land use program with appropriate performance standards to ensure that Short-Term Vacation Rental uses do not negatively impact residential neighborhoods. 3. The proposed change in permitted or conditionally permitted uses in certain zoning districts will not be detrimental to the use of land in any adjacent zone because the proposed Zoning Amendment will include performance standards for Short-Term Vacation Rental Uses that pertain to parking, safety, and occupancy limits. SECTION II. AMENDMENTS. The City Council hereby amends the following sections of the South San Francisco Municipal Code to read as follows (with text in strikeout indicating deletion and double underline indicating addition). Sections and subsections that are not amended by this Ordinance are not included below, and shall remain in full force and effect. A. Revise Chapter 20.620.004 “Lodging” definitions (Commercial Use Classifications) as follows: 20.620.004 Commercial Use Classifications Lodging. Bed and Breakfast. A residential structure that is in residential use with one or more bedrooms dedicated for rental rented for overnight lodging and where meals may be provided. This use type specifically excludes Short-Term Vacation Rental, as defined by this section. Short-Term Vacation Rental. A residential structure that is rented to a transient occupant for a period of less than 30 days. The full residential structure, or a portion of it, can be rented to a transient occupant in a short-term vacation rental use. This classification includes both hosted rentals (the primary resident, or host, is present in the dwelling unit that is being used as a short- term rental) and non-hosted rentals (the host is not present in the dwelling unit that is being used as a short-term rental). B. Revise Section 20.350, Standards and Requirements for Specific Uses and Activities, to add a section to include performance standards for Short-Term Vacation Rentals, as follows: 20.350.035.05 Short-Term Vacation Rentals Short-term vacation rental uses shall be located, developed, and operated in compliance with the following standards: A. Type of Residence. Must be located and operated in a single-unit dwelling. B. Number of Uses. Short-term vacation rental uses shall be permitted in no more than one single-unit dwelling per lot. C. Permit Required; Duration of Permit. Any Short-Term Vacation Rental must apply for a Short-Term Vacation Rental Permit on a form approved by the Chief Planner. The Short-Term Vacation Rental Permit for a short-term vacation rental is valid for one year from date of issuance. D. Residency Requirements. Only permanent residents (owner or tenant) of the dwelling unit are eligible to operate a short-term vacation rental use. E. Transient Occupancy Limits. a. Hosted Rentals: If the host is onsite, the number of transient occupants must be limited to 2 or fewer. b. Non-hosted Rentals: If the host is offsite, the number of transient occupants must be limited to 2 persons/bedroom, plus 2 additional persons. F. Limit on Duration. The aggregate number of days for transient occupancy of a non- hosted short-term vacation rental is capped at 90 per term of the permit. There is no annual cap for hosted short-term vacation rentals. G. Local Contact Information. The permit holder shall keep on file with the City the name, telephone number, and email address of a local contact person who shall be responsible for responding to questions or concerns regarding the operation of a short-term vacation rental. This information shall be posted in a conspicuous location within the rental dwelling. The local contact person shall be available 24 hours a day to accept telephone calls and respond physically to the short-term vacation rental within one hour when the unit is occupied. H. Noise. The short-term vacation rental use must comply with the adopted noise standards for the district in accordance with section 8.32.030 of this code. I. Conduct. The permit holder must ensure that transient occupants of the short-term vacation rental do not engage in disorderly conduct, or violate code provisions or state law. J. Safety. All short-term vacation rentals must comply with all applicable building laws, including, but not limited to, providing working smoke detectors, carbon monoxide detectors, contain working heating, and otherwise satisfy all applicable requirements of the California Building Standards Code. K. Commercial Activities. Any commercial use beyond a permitted short-term vacation rental is prohibited. No Special Event as defined by section 6.48 of this code can be conducted as part of a Short-Term Vacation Rental. L. Advertising. All advertising (print or digital) for a short-term vacation rental shall include the number of the permit granted for the use. M. Business License. The permit holder shall obtain a city business license in accordance with Chapter 6.16 of this code. N. Applicable Taxes. The permit holder shall collect and remit all applicable City Taxes, including but not limited to Transient Occupancy Taxes and Conference Center Taxes in accordance with Chapter 4.20 of this code, as required. O. Consistency with Other Agreements. A short-term vacation rental use must be permitted by applicable HOA bylaws; Covenants, Conditions and Restrictions (CC+Rs); and rental agreements. P. Transferability. Short-term vacation rental permits are personal to the Host and shall not run with the land. The permission to operate a short-term vacation rental use shall be limited to the property owner / resident to whom the city issued the permit. C. Update Table 20.080.002 – Land Use Regulations, Residential Districts, as indicated below: TABLE 20.080.002: LAND USE REGULATIONS—RESIDENTIAL DISTRICTS Use Classification RL-1.3 RL-5,6, and 8 RM-10, 15, and 17.5 RH-30 and 35 Additional Regulations Commercial Use Types Lodging See sub-classifications below Bed and Breakfast MUP MUP MUP MUP See Section 20.350.010 Bed and Breakfast Lodging Short-Term Vacation Rental P (7) P (7) P (7) P (7) See Section 20.350.035.05 Short Term Vacation Rental Limitations: 1. Only in single-unit detached structures. 2. Limited to facilities serving a maximum of 10 victims and may not be located within 300 feet of any other domestic violence shelter. 3. Subject to state licensing requirements. 4. Only on parcels with access from arterial streets. 5. Minor Use Permit required when located within an existing building. Conditional Use Permit required for new construction. 6. Limited to sites with a maximum gross site area of 6,500 square feet and located on an arterial street. 7. Short-Term Vacation Rental Permit required (see section 20.350.035.05, Short-Term Vacation Rental). D. Update Table 20.100.002 - Land Use Regulations—Downtown Districts, as indicated below: Use Classification DMX DRL DRM DRH Additional Regulations Commercial Uses Lodging See sub-classifications below Bed and Breakfast MUP MUP MUP MUP See Section 20.350.010 Bed and Breakfast Lodging Hotels and Motels C - - - Short-Term Vacation Rentals P (11) P (11) P (11) P (11) See Section 20.350.035.05 Short Term Vacation Rental Limitations: 1. Permitted if existing. New units not allowed. 2. Limited to sites with a maximum gross site area of 4,000 square feet. 3. Prohibited on the ground floor except residential uses located south of Baden Avenue, banks, and walk-in offices which are subject to approval of a Use Permit. 4. Permitted if retail, restaurants, personal services, or other active pedestrian-oriented use is located on the ground floor, otherwise Minor Use Permit is required. Minor Use Permit may only be approved if the Review Authority first finds that, based on information in the record, it is infeasible to locate retail, restaurants, personal services, or other active pedestrian-oriented use on the ground floor. 5. Limited to facilities serving a maximum of 10 victims and may not be located within 300 feet of any other domestic violence shelter. 6. Subject to state licensing requirements. 7. Clinic uses may not occupy the ground floor, except along Grand Avenue, west of Maple Avenue, which are subject to the approval of a conditional use permit. 8. Living space may not occupy ground floor. 9. Limited to upper stories unless at least 50 percent of ground floor street frontage is occupied by food service use. 10. Limited to single-family detached units. 11. Short-Term Vacation Rental Permit required (see section 20.350.035.05, Short-Term Vacation Rental). E. Update Section 20.240.03 – Land Use Permitted, as indicated below: The following uses are permitted subject to the regulations contained in this chapter, the Terrabay specific plans and applicable sections of the South San Francisco Municipal Code and subject to further approvals as required. A. Terrabay Residential District (Residential Parcels). 1. Public and private open space areas. 2. Habitat conservation areas. 3. Public and private parks, playgrounds, tot lots, recreation/community buildings, and fire stations. 4. Schools. 5. Day care centers. 6. Public and private utilities, and facilities. 7. Single-unit detached dwellings consisting of 125 units in the Park and 135 units in Woods East and Woods West (collectively) neighborhoods only. 8. Townhomes consisting of 175 units in the Village neighborhood in two, three and four unit clusters only. 9. One condominium/apartment tower consisting of 112 one, two and three bedroom units in the Peninsula Mandalay Tower only. 10. Single- unit paired residential units consisting of 70 single-family units attached in 35 structures, paired in two side-by-side attached units (i.e., side by side duplex design) in the Mandalay Point neighborhood only. 11. Home occupations. 12. Accessory buildings and uses. 13. Short-term vacation rental, subject to the approval a Short-Term Vacation Rental Permit and per the requirements of Section 20.350.035.05, Short-Term Vacation Rental. F. Update Table 20.250.003 – Land Use Regulations for Transit Village Sub-districts, as indicated below: TABLE 20.250.003: LAND USE REGULATIONS FOR TRANSIT VILLAGE SUB-DISTRICTS Uses Permitted TV-C TV-R TV-RM TV-RH Additional Regulations RESIDENTIAL USE CLASSIFICATIONS Single-Unit Dwelling See sub-classifications below Single-Unit Attached - - P P Multi-Unit Residential P(1) P(1) P P COMMERCIAL USE CLASSIFICATIONS Lodging See sub-classifications below Hotels and Motels C - - - Short-Term Vacation Rental - - P (4) P (4) See Section 20.350.035.05 Short-Term Vacation Rental TABLE 20.250.003: LAND USE REGULATIONS FOR TRANSIT VILLAGE SUB-DISTRICTS Uses Permitted TV-C TV-R TV-RM TV-RH Additional Regulations Specific Limitations: 1. Not permitted as a principal ground floor use on a street where retail storefronts occupy 50 percent of more of the building frontage. 2. Customer service offices are permitted on the ground level, and other offices are permitted on the second floor or when conducted as an accessory use with a permitted use on the site, occupying no more than 25 percent of the floor area. Additional office space may be allowed with a Use Permit, upon finding that such use will not conflict with adjacent street level retail uses. 3. Permitted as a secondary use on the second floor, occupying no more than 25 percent of the total building area. 4. Short-Term Vacation Rental Permit required (see section 20.350.035.05, Short-Term Vacation Rental). G. Update Table 20.280.003 Land Use Regulations Downtown Station Area Specific Plan Sub-Districts, as indicated below: Uses Permitted DTC GAC DRC TO/RD LCC LNC Additional Regulations Lodging See sub-classifications below Bed and Breakfast - MUP (5) C - MUP MUP See Section 20.350.010 Bed and Breakfast Lodging Short-Term Vacation Rental P (8) P (8) P (8) P (8) P (8) P (8) See Section 20.350.035.05 Short- Term Vacation Rental Limitations: 1. Permitted if existing. New units not allowed. 2. Limited to facilities serving a maximum of 10 victims and may not be located within 300 feet of any other domestic violence shelter. 3. Prohibited on the ground floor except residential uses located south of Baden Avenue, banks and walk-in offices which are subject to approval of a Use Permit. 4. Subject to licensing requirements. 5. Limited to upper stories unless at least 50 percent of the ground floor street frontage is occupied by food service uses. 6. Must be located at least 1,000 feet from any other social service facility. 7. Clinic uses may not occupy the ground floor along Grand Avenue, except on properties located west of Maple Avenue, which are subject to the approval of a conditional use permit. 8. Short-Term Vacation Rental Permit required (see section 20.350.035.05, Short-Term Vacation Rental.) 8. Update Table 20.330.004: Required On-Site Parking Spaces, as indicated below: TABLE 20.330.004: REQUIRED ON-SITE PARKING SPACES Land Use Classification Required Parking Spaces Commercial Use Classifications Lodging Bed and Breakfast 1 per room for rent in addition to parking required for residential use. Hotels and Motels 1 per each sleeping unit, plus 2 spaces adjacent to registration office. Additional parking required for ancillary uses, such as restaurants, according to the parking requirements for the ancillary use. See Subsection 20.330.006(C) Airport-Oriented Hotels and Motels. Short-Term Vacation Rental At least one off-street parking space required for use by the short- term vacation rental transient occupants. The required parking for the existing residential use may be used to provide this parking space. SECTION III. SEVERABILITY. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid or unconstitutional, the remainder of this Ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this Ordinance are severable. The City Council of the City of South San Francisco hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable. SECTION IV. PUBLICATION AND EFFECTIVE DATE. Pursuant to the provisions of Government Code Section 36933, a summary of this Ordinance shall be prepared by the City Attorney. At least five (5) days prior to the Council meeting at which this Ordinance is scheduled to be adopted, the City Clerk shall (1) publish the Summary, and (2) post in the City Clerk’s Office a certified copy of this Ordinance. Within fifteen (15) days after the adoption of this Ordinance, the City Clerk shall (1) publish the summary, and (2) post in the City Clerk ’s Office a certified copy of the full text of this Ordinance along with the names of those City Council members voting for and against this Ordinance or otherwise voting. This Ordinance shall become effective thirty (30) days from and after its adoption. * * * * * * * Introduced at a regular meeting of the City Council of the City of South San Francisco, held the _____ day of _____________, 2015. Adopted as an Ordinance of the City of South San Francisco at a regular meeting of the City Council held the _____ day of _____________, 2015 by the following vote: AYES:_______________________________________________________________________ NOES:_______________________________________________________________________ ABSTENTIONS:_______________________________________________________________ ABSENT:_____________________________________________________________________ Attest:__________________________________ Krista Martinelli, City Clerk As Mayor of the City of South San Francisco, I do hereby approve the foregoing Ordinance this _____ day of _____________, 2015. Mayor 2512508.1 SHORT-TERM VACATION RENTAL REGULATIONS [SAMPLE] On _________, 2015, the South San Francisco City Council adopted a Zoning Ordinance amendment requiring a Short-Term Vacation Rental Permit for rental of a residential dwelling unit for fewer than 30 consecutive days. Am I Eligible for a Permit? You are eligible to receive a permit if: • You are the permanent resident of the proposed short-term vacation rental. • Your proposed short-term vacation rental use is for an existing single-family dwelling unit (multi-family units are not eligible). • You are applying for only one short-term vacation rental permit. • You can provide at least one off-street parking space for use by your short-term vacation renters. • You have a local contact person who will be available to respond within one hour to any issues that arise whenever the unit is rented and occupied. • You have a valid city business license. • Short-term vacation rentals are permitted by the terms of any applicable lease agreements, HOA bylaw, or CC+Rs. Planning Division staff members are available to answer your questions and help determine your availability for a short-term vacation rental permit. Please call the Planning Division at (650) 877-8535 to speak with a planner if you have any questions. How Do I Apply? You can submit an application with the Planning Division. The application form provides details on the materials and fee that must be submitted with the application. Once you have submitted a completed application, Planning Division staff will review your application. Review and processing will take approximately 1-2 weeks. You will receive a letter from the Planning Division indicating if your permit has been approved, conditionally approved, or disapproved by the Chief Planner. Remember to include your permit number on any print or digital advertisements or listings for your short-term vacation rental. SHORT-TERM VACATION RENTAL PERMIT APPLICATION [SAMPLE] South San Francisco Municipal Code Section 20.350.035.05 A short-term vacation rental is a residential structure that is rented to a transient occupant for a period of less than 30 days. The full residential structure, or a portion of it, can be rented to a transient occupant in a short-term vacation rental use. A short-term vacation rental includes both hosted rentals (the host is present in the dwelling unit that is being used as a short-term vacation rental) and non-hosted rentals (the host is not present in the dwelling unit that is being used as a short-term vacation rental). A complete short-term vacation rental permit application includes: 1. Filing Fee (Payable to the City of South San Francisco): $150 2. South San Francisco Business License 3. Application and Affidavit 4. Site Plan 5. Floor Plan 6. Proof of Residency SHORT-TERM VACATION RENTAL PERMIT APPLICATION INFORMATION FORM Property Owner / Applicant Information Name: ___________________________________________________ Address: ___________________________________________________ City, State, Zip Code: ___________________________________________________ Phone: ___________________________________________________ Email: ___________________________________________________ Property Information Address of the Proposed Short-Term Vacation Rental Unit: Is this a single-family dwelling unit?  Yes  No Is a short-term vacation rental use consistent with applicable lease agreements, HOA bylaws, and / or Covenants, Conditions + Restrictions (CC+Rs)?  Yes  No Number of bedrooms (indicate on floor plan): Number of on-site parking spaces available for short-term rental occupants (indicate on site plan): Local Contact Manager Information Name: Address: City: State: Zip Code: Phone: Email: Note: The local contact manager must be available 24-hours a day to accept telephone calls and respond physically to the short-term rental within one hour when the unit is rented and occupied. The local contact manager may be the property owner / primary resident of the short-term vacation rental, or be another designated individual. AFFIDAVIT I DECLARE THAT I AM (CHECK ONE):  THE OWNER,  LESSEE,  ATTORNEY OF THE OWNER, OR  A PERSON WITH THE POWER OF ATTORNEY FROM THE OWNER OF THE ABOVE PROPERTY INVOLVED IN THIS APPLICATION, AND THAT THE FOREGOING IS TRUE AND CORRECT. EXECUTED AT _______________________ CALIFORNIA, THE ________ DAY OF____________, 20_______. _____________________________________ SIGNATURE FOR OFFICIAL USE ONLY RECEIPT NO.: ______________________  APPROVED  DENIED FEE: ______________________________  CONDITIONALLY APPROVED APPLICATION REC’D: ________________ VALID THROUGH: ___________________ ____________________________________ OCCUPANCY LIMIT: __________________ CHIEF PLANNER DATE Staff Report DATE: September 23, 2015 TO: Mayor, Vice-Mayor, and Councilmembers FROM: Alex Greenwood, Director of Economic and Community Development SUBJECT: ZONING TEXT AMENDMENTS TO ESTABLISH REGULATIONS RELATED TO SHORT-TERM VACATION RENTAL USES, IN ACCORDANCE WITH SOUTH SAN FRANCISCO MUNICIPAL CODE CHAPTER 20.550 ("AMENDMENTS TO ZONING ORDINANCE AND MAP"). Case No.: P07-0136: ZA15-0006 RECOMMENDATION It is recommended that the City Council follow the recommendations of the Planning Commission and introduce an Ordinance amending the Zoning Code to establish regulations related to short-term vacation rental uses. BACKGROUND Short-term vacation rentals, in which hosts can make a spare room or an entire dwelling unit available to potential renters, are becoming increasingly popular. These transactions are usually made through residential hosting platform websites such as Airbnb, VRBO, Homeaway, Flipkey, or others, generally for 30 days or less. This type of lodging has become more popular, supplementing traditional transient lodging options such as hotels and bed-and-breakfasts. Many travelers use short-term vacation rentals while on business trips, for vacation, or while their home is under construction. This increase in popularity has occurred with the rise of the “sharing economy” in which people rent cars, homes, beds, or other goods directly from other individuals, generally through internet hosting sites. Short-term vacation rentals include both hosted rentals, in which the resident is present and rents out a bedroom or a portion of the dwelling unit; and non-hosted rentals, where the renters occupy the full dwelling unit and the resident does not remain on-site. While South San Francisco does not currently have the volume and interest in short-term vacation rentals that other cities have experienced recently, a cursory review indicates that there are several listings for properties within the City on Airbnb.com, and it is anticipated that the popularity of short-term vacation rentals will increase, as the region prepares for Super Bowl 50, which will be held on Sunday, February 7, 2016 at Levi’s Stadium in Santa Clara, as well as other large-scale conventions such as Oracle World and Dreamforce. Since short-term vacation rentals, and the sharing economy in general, are relatively recent phenomena, South San Francisco does not currently regulate this type of use. Issues related to short-term vacation rentals include the compatibility of a commercial use in a residential area, Staff Report Subject: SHORT-TERM VACATION RENTALS Date: September 23, 2015 Page 2 of 13 and concerns from neighbors about noise, parking, and public safety due to the frequent turnover of visitors. Another potential concern is that short-term vacation rentals could remove housing stock that could otherwise be available for long-term rental or for sale, adding to the existing housing shortage in the Bay Area. Defining and establishing regulations for short-term vacation rentals would ensure that there are specific performance standards in place to provide clear direction to potential hosts and renters, and ensure that these uses are compatible with the neighborhoods where they are located. Additionally, specifically regulating these uses would establish a mechanism to require the payment of applicable taxes. Consistent with other lodging uses, taxes on short-term vacation rentals would include the Transient Occupancy Tax (TOT) of 10% of the gross rent paid by hotel guests, and the Conference Center Tax (CCT) which is $2.50 per occupied room per night. State Law Currently, there is no state law in effect that addresses short-term vacation rentals; however, the state legislature was considering two bills. Senate Bill (SB) 761 pertains to short term vacation rentals, and has been enacted and is awaiting Governor Brown’s signature. If signed into law, it will be effective January 1, 2016 and would require a hosting platform to provide a specific notice to an occupant listing a residence on the site that states, among other things, that, if the occupant is a tenant, listing the room, home, condominium, or apartment may violate the lease or contract and could result in legal action by the landlord, including possible eviction. SB 593, which has been postponed until the next legislative session, would have established reporting requirements for residential hosting platform websites (such as Airbnb); prohibit hosting platforms from offering properties that are prohibited by local law; and, require the hosting platform to collect and remit required taxes if requested by a local jurisdiction. Planning Commission On September 3, 2015, the Planning Commission held a public hearing to consider amending the Zoning Code to establish regulations related to short-term vacation rental uses. At that meeting, the Planning Commission voted 4-1 in favor of recommending establishing regulations for short- term vacation rental uses in order to give the City the ability to review and regulate these uses. The Commission also recommended 6-month and 12-month reviews for these proposed regulations and process, to allow a period to analyze level of interest in obtaining this type of permit, better understand issues related with this type of new land use, and develop metrics for permit review and processing time. Staff will provide reports at both the 6- and 12-month review periods for Planning Commission and City Council review, to determine if changes would be needed to the proposed regulations and process. The Planning Commission resolution is attached to this staff report. Public Input At the September 3 Planning Commission hearing, one member of the public spoke against these proposed regulations. The concern that was raised was the permitting process is unnecessary, and that there are people who operate short-term vacation rental uses as a means of addressing high housing costs. Staff Report Subject: SHORT-TERM VACATION RENTALS Date: September 23, 2015 Page 3 of 13 Staff has received several letters from members of the public commenting on proposed regulations for short-term vacation rentals, which are attached to this staff report. Comments received include both support for and opposition to the proposed short-term vacation rental regulations. Residents in support of these regulations have also expressed concern that short-term vacation rentals should not be located in multi-family residential buildings, where neighbors may experience greater impacts due to shared common spaces (parking, lobbies, hallways) and shared walls. The proposed performance standards for short-term vacation rental uses permit these uses in single-family dwelling units only, in order to address the potential impacts that could result due to shared common spaces and walls in multi-family buildings. Performance standards also include requirements for on-site parking, local management, as well as conduct, safety, and noise standards in order to minimize impacts to residential neighborhoods. Residents opposed to these regulations have expressed that the permitting process and fees place an unfair burden on senior citizens wishing to supplement their retirement income by operating a short-term vacation rental use. The proposed process is attempting to balance regulating these uses, while providing a relatively simple and inexpensive permitting process, to encourage residents to obtain a permit to operate a short-term vacation rental. DISCUSSION Current Regulations Short-term vacation rental uses are currently not addressed by the current Zoning Code. Staff has reviewed the existing land use classifications, and has determined that the most similar type of use to a short-term vacation rental is a “bed and breakfast” use, which is a sub-classification of the “Lodging” commercial use classification, defined as a residential structure that is in residential use with one or more bedrooms rented for overnight lodging and where meals may be provided (SSFMC Section 20.620.004). While similar, a “bed and breakfast” is differentiated from a short-term vacation rental because it is a residential structure of which a portion (i.e. a bedroom that is available for rent) is a dedicated commercial use. In contrast, a short-term vacation rental use reverts to a traditional residential use when the dwelling unit, or a portion of it, is not occupied by transient renters. Proposed Revisions Staff has examined the City’s current zoning regulations for substantially similar uses, and other jurisdictions’ regulations pertaining to short-term vacation rentals in order to recommend appropriate zoning revisions to regulate this emerging type of use. The proposed zoning amendment before the Planning Commission would create a new definition for a “short-term vacation rental” as a lodging use, create performance standards for this new use in order to ensure compatibility with surrounding neighborhoods, and revise the zoning districts where short-term vacation rental uses will be permitted, subject to the approval of a short-term vacation rental permit. Staff Report Subject: SHORT-TERM VACATION RENTALS Date: September 23, 2015 Page 4 of 13 Short-Term Vacation Rental Permit Process The proposed review and permitting process for a short-term vacation rental is intended to balance the need to have regulatory oversight for this type of use, while also provide a simple and relatively streamlined review process, to encourage members of the public to apply for a permit prior to advertising their home as a short-term vacation rental. Staff will be able to review the application in an expedited manner, rather than requiring a Minor Use Permit process, which would take approximately four to six weeks. The Chief Planner will provide approval for short- term vacation rental permits. Staff is recommending the fee for a short-term vacation rental permit of $150.00. For comparison, the fee for a Minor Use Permit for a residential use is $350.00. The recommended fee is intended to ensure maximum participation from short-term rental hosts in the City. As opposed to other planning permits, the approval for a short-term vacation rental will be issued to a specific person at a specific address; it will not be attached to the property. The short-term vacation rental permit would be valid for the term of one year from the date of issuance, and would need to be renewed after this term if the host wishes to continue operating a short-term vacation rental use, with a renewal fee of $50.00. If the short-term vacation rental regulations are adopted, staff would create a new application form specific to this permit type and would update the planning permit fee schedule. A sample short-term vacation rental permit application is attached for reference. Many municipalities have developed user-friendly guides to publicize and clarify the requirements for operating a short- term vacation rental. Staff recommends developing a similar guide as part of the permit application packet. Staff recommends publicizing the short-term vacation rental permit program via the City’s website and social media, and also working with hosting websites (such as Airbnb) to publicize the program and requirements. Staff will also attempt to work with hosting websites to collect the applicable taxes of any permitted host in the City. Text of Proposed Zoning Ordinance Revisions The primary change with the proposed zoning amendments would be to introduce a new definition that captures the characteristics of short-term vacation rental uses as a sub- classification of the Lodging Commercial Use Classification. In addition, minor changes to the “bed and breakfast” sub-classification of the Lodging Commercial Use Classification are proposed, in order to clarify the differences between short-term vacation rental uses and bed and breakfast uses. The proposed revisions are included below in red with deletions in strikethrough and additions in double underline, with a summary of the changes. 1. Revise Chapter 20.620.004 “Lodging” definitions (Commercial Use Classifications) as follows: Lodging. Bed and Breakfast. A residential structure that is in residential use with one or more bedrooms dedicated for rental rented for overnight lodging and where meals may be provided. This use type specifically excludes short-term vacation rental, as defined by this section. Staff Report Subject: SHORT-TERM VACATION RENTALS Date: September 23, 2015 Page 5 of 13 Short-Term Vacation Rental. A residential structure that is rented to a transient occupant for a period of less than 30 days. The full residential structure, or a portion of it, can be rented to a transient occupant in a short-term vacation rental use. This classification includes both hosted rentals (the Host, or primary resident, is present in the dwelling unit that is being used as a short-term rental) and non-hosted rentals (the host is not present in the dwelling unit that is being used as a short-term rental). These zoning amendments would establish a new use classification under “Lodging” named “short-term vacation rental”. By introducing the definition and use into the land use tables, the City would have the ability to regulate these uses, and establish a pilot program for short-term vacation rental permits. 2. Revise Section 20.350, Standards and Requirements for Specific Uses and Activities, to add a section to include performance standards for short-term vacation rentals, as follows: 20.350.035.05 Short-Term Vacation Rentals Short-term vacation rental uses shall be located, developed, and operated in compliance with the following standards: A. Type of Residence. Must be located and operated in a single-unit dwelling. B. Number of Uses. Short-term vacation rental uses shall be permitted in no more than one single-unit dwelling per lot. C. Permit Required; Duration of Permit. Any short-term vacation rental must apply for a short-term vacation rental permit on a form approved by the Chief Planner. The short- term vacation rental permit for a short-term vacation rental is valid for one year from date of issuance. D. Residency Requirements. Only permanent residents (owner or tenant) of the dwelling unit are eligible to operate a short-term vacation rental use. E. Transient Occupancy Limits. a. Hosted Rentals: If the host is onsite, the number of transient occupants must be limited to 2 or fewer. b. Non-hosted Rentals: If the host is offsite, the number of transient occupants must be limited to 2 persons/bedroom, plus 2 additional persons. F. Limit on Duration. The aggregate number of days for transient occupancy of a non- hosted short-term vacation rental is capped at 90 per term of the permit. There is no annual cap for hosted short-term vacation rentals. G. Local Contact Information. The permit holder shall keep on file with the City the name, telephone number, and email address of a local contact person who shall be responsible for responding to questions or concerns regarding the operation of a short-term vacation rental. This information shall be posted in a conspicuous location within the rental Staff Report Subject: SHORT-TERM VACATION RENTALS Date: September 23, 2015 Page 6 of 13 dwelling. The local contact person shall be available 24 hours a day to accept telephone calls and respond physically to the short-term vacation rental within one hour when the unit is occupied. H. Noise. The short-term vacation rental use must comply with the adopted noise standards for the district in accordance with section 8.32.030 of this code. I. Conduct. The permit holder must ensure that transient occupants of the short-term vacation rental do not engage in disorderly conduct, or violate code provisions or state law. J. Safety. All short-term vacation rentals must comply with all applicable building laws, including, but not limited to, providing working smoke detectors, carbon monoxide detectors, contain working heating, and otherwise satisfy all applicable requirements of the California Building Standards Code. K. Health and Safety Information. Hosts shall provide local health and safety information to renters, including locations of local hospitals and clinics, and non-emergency police contact information. L. Commercial Activities. Any commercial use beyond a permitted short-term vacation rental is prohibited. No Special Event as defined by section 6.48 of this code can be conducted as part of a short-term vacation rental. M. Advertising. All advertising (print or digital) for a short-term vacation rental shall include the number of the permit granted for the use. N. Business License. The permit holder shall obtain a City business license in accordance with Chapter 6.16 of this code. O. Applicable Taxes. The permit holder shall collect and remit all applicable City Taxes, including but not limited to Transient Occupancy Taxes and Conference Center Taxes in accordance with Chapter 4.20 of this code, as required. P. Consistency with Other Agreements. A short-term vacation rental use must be permitted by applicable HOA bylaws; Covenants, Conditions and Restrictions (CC+Rs); and rental agreements. Staff Report Subject: SHORT-TERM VACATION RENTALS Date: September 23, 2015 Page 7 of 13 3. Update Table 20.080.002 – Land Use Regulations, Residential Districts, as indicated below: Table 20.080.002: Land Use Regulations—Residential Districts Use Classification RL-1.3 RL-5,6, and 8 RM-10, 15, and 17.5 RH-30 and 35 Additional Regulations COMMERCIAL USE TYPES Lodging See sub-classifications below Bed and Breakfast MUP MUP MUP MUP See Section 20.350.010 Bed and Breakfast Lodging Short-Term Vacation Rental P (7) P (7) P (7) P (7) See Section 20.350.035.05 Short Term Vacation Rental Limitations: 1. Only in single-unit detached structures. 2. Limited to facilities serving a maximum of 10 victims and may not be located within 300 feet of any other domestic violence shelter. 3. Subject to state licensing requirements. 4. Only on parcels with access from arterial streets. 5. Minor Use Permit required when located within an existing building. Conditional Use Permit required for new construction. 6. Limited to sites with a maximum gross site area of 6,500 square feet and located on an arterial street. 7. Short-term vacation rental permit required (see section 20.350.035.05, Short-Term Vacation Rental). For property in Residential Zoning Districts, “short-term vacation rentals” would be a new use listed in the tables, and would be a permitted use, subject to the submittal and approval of a short-term vacation rental permit application, and the performance standards proposed in Section 20.350.035.05. 4. Update Table 20.100.002 - Land Use Regulations—Downtown Districts, as indicated below: Use Classification DMX DRL DRM DRH Additional Regulations Commercial Uses Lodging See sub-classifications below Bed and Breakfast MUP MUP MUP MUP See Section 20.350.010 Bed and Breakfast Lodging Hotels and Motels C - - - Staff Report Subject: SHORT-TERM VACATION RENTALS Date: September 23, 2015 Page 8 of 13 Use Classification DMX DRL DRM DRH Additional Regulations Short-Term Vacation Rentals P (11) P (11) P (11) P (11) See Section 20.350.035.05 Short Term Vacation Rental Limitations: 1. Permitted if existing. New units not allowed. 2. Limited to sites with a maximum gross site area of 4,000 square feet. 3. Prohibited on the ground floor except residential uses located south of Baden Avenue, banks, and walk-in offices which are subject to approval of a Use Permit. 4. Permitted if retail, restaurants, personal services, or other active pedestrian-oriented use is located on the ground floor, otherwise Minor Use Permit is required. Minor Use Permit may only be approved if the Review Authority first finds that, based on information in the record, it is infeasible to locate retail, restaurants, personal services, or other active pedestrian-oriented use on the ground floor. 5. Limited to facilities serving a maximum of 10 victims and may not be located within 300 feet of any other domestic violence shelter. 6. Subject to state licensing requirements. 7. Clinic uses may not occupy the ground floor, except along Grand Avenue, west of Maple Avenue, which are subject to the approval of a conditional use permit. 8. Living space may not occupy ground floor. 9. Limited to upper stories unless at least 50 percent of ground floor street frontage is occupied by food service use. 10. Limited to single-family detached units. 11. Short-term vacation rental permit required (see section 20.350.035.05, Short-Term Vacation Rental). 5. Update Section 20.240.03 – Land Use Permitted, as indicated below: The following uses are permitted subject to the regulations contained in this chapter, the Terrabay specific plans and applicable sections of the South San Francisco Municipal Code and subject to further approvals as required. A. Terrabay Residential District (Residential Parcels). 1. Public and private open space areas. 2. Habitat conservation areas. 3. Public and private parks, playgrounds, tot lots, recreation/community buildings, and fire stations. 4. Schools. Staff Report Subject: SHORT-TERM VACATION RENTALS Date: September 23, 2015 Page 9 of 13 5. Day care centers. 6. Public and private utilities, and facilities. 7. Single-unit detached dwellings consisting of 125 units in the Park and 135 units in Woods East and Woods West (collectively) neighborhoods only. 8. Townhomes consisting of 175 units in the Village neighborhood in two, three and four unit clusters only. 9. One condominium/apartment tower consisting of 112 one, two and three bedroom units in the Peninsula Mandalay Tower only. 10. Single- unit paired residential units consisting of 70 single-family units attached in 35 structures, paired in two side-by-side attached units (i.e., side by side duplex design) in the Mandalay Point neighborhood only. 11. Home occupations. 12. Accessory buildings and uses. 13. Short-term vacation rental, subject to the approval a short-term vacation rental permit and per the requirements of Section 20.350.035.05, Short-Term Vacation Rental. The proposed change to the Terrabay Residential District permitted uses is required in order to allow short-term vacation rentals in eligible single-unit dwellings within this district. 6. Update Table 20.250.003 – Land Use Regulations for Transit Village Sub-districts, as indicated below: TABLE 20.250.003: Land Use Regulations for Transit Village Sub-districts Uses Permitted TV-C TV-R TV-RM TV-RH Additional Regulations RESIDENTIAL USE CLASSIFICATIONS Single-Unit Dwelling See sub-classifications below Single-Unit Attached - - P P Multi-Unit Residential P(1) P(1) P P COMMERCIAL USE CLASSIFICATIONS Lodging See sub-classifications below Hotels and Motels C - - - Short-Term Vacation Rental - - P (4) P (4) See Section 20.350.035.05 Short-Term Vacation Rental Staff Report Subject: SHORT-TERM VACATION RENTALS Date: September 23, 2015 Page 10 of 13 TABLE 20.250.003: Land Use Regulations for Transit Village Sub-districts Uses Permitted TV-C TV-R TV-RM TV-RH Additional Regulations Specific Limitations: 1. Not permitted as a principal ground floor use on a street where retail storefronts occupy 50 percent of more of the building frontage. 2. Customer service offices are permitted on the ground level, and other offices are permitted on the second floor or when conducted as an accessory use with a permitted use on the site, occupying no more than 25 percent of the floor area. Additional office space may be allowed with a Use Permit, upon finding that such use will not conflict with adjacent street level retail uses. 3. Permitted as a secondary use on the second floor, occupying no more than 25 percent of the total building area. 4. Short-term vacation rental permit required (see section 20.350.035.05, Short-Term Vacation Rental). For property in Transit Village Residential Zoning Districts, “short-term vacation rentals” would be a new use listed in the tables, and would be a permitted use, subject to the submittal and approval of a short-term vacation rental permit application, and the performance standards proposed in Section 20.350.035.05. 7. Update Table 20.280.003 Land Use Regulations Downtown Station Area Specific Plan Sub-Districts, as indicated below: Uses Permitted DTC GAC DRC TO/RD LCC LNC Additional Regulations Lodging See sub-classifications below Bed and Breakfast - MUP (5) C - MUP MUP See Section 20.350.010 Bed and Breakfast Lodging Short-Term Vacation Rental P (8) P (8) P (8) P (8) P (8) P (8) See Section 20.350.035.05 Short- Term Vacation Rental Staff Report Subject: SHORT-TERM VACATION RENTALS Date: September 23, 2015 Page 11 of 13 Uses Permitted DTC GAC DRC TO/RD LCC LNC Additional Regulations Limitations: 1. Permitted if existing. New units not allowed. 2. Limited to facilities serving a maximum of 10 victims and may not be located within 300 feet of any other domestic violence shelter. 3. Prohibited on the ground floor except residential uses located south of Baden Avenue, banks and walk-in offices which are subject to approval of a Use Permit. 4. Subject to licensing requirements. 5. Limited to upper stories unless at least 50 percent of the ground floor street frontage is occupied by food service uses. 6. Must be located at least 1,000 feet from any other social service facility. 7. Clinic uses may not occupy the ground floor along Grand Avenue, except on properties located west of Maple Avenue, which are subject to the approval of a conditional use permit. 8. Short-term vacation rental permit required (see section 20.350.035.05, Short-Term Vacation Rental.) While the Downtown Station Area Specific Plan (DSASP) envisions higher densities and intensities in these districts, there are existing single-unit dwellings within several of the DSASP sub-districts. These proposed changes are would permit short-term vacation rentals within these existing single-unit dwellings, subject to the submittal and approval of a short-term vacation rental permit application, and the performance standards proposed in Section 20.350.035.05. 8. Update Table 20.330.004: Required On-Site Parking Spaces, as indicated below: Table 20.330.004: Required On-Site Parking Spaces Land Use Classification Required Parking Spaces COMMERCIAL USE CLASSIFICATIONS Lodging Bed and Breakfast 1 per room for rent in addition to parking required for residential use. Hotels and Motels 1 per each sleeping unit, plus 2 spaces adjacent to registration office. Additional parking required for ancillary uses, such as restaurants, according to the parking requirements for the ancillary use. See Subsection 20.330.006(C) Airport-Oriented Hotels and Motels. Short-Term Vacation Rental At least one off-street parking space required for use by the short- term vacation rental transient occupants. The required parking for the existing residential use may be used to provide this parking space. Table 20.330.004 will be updated to include a parking requirement for short-term vacation rental uses. Staff Report Subject: SHORT-TERM VACATION RENTALS Date: September 23, 2015 Page 12 of 13 Benefits to the Proposed Zoning Amendments Adding a definition of “short-term vacation rentals” and including performance standards for this type of use offers the City the ability to review and regulate these uses, since the Zoning Ordinance does not currently include a definition that addresses these uses. In order to minimize impacts to residential neighborhoods and preserve neighborhood character, robust performance standards would limit these uses to single-family residential dwelling units, require on-site parking, limit the number of days that a dwelling unit may be used as a short-term vacation rental, limit the number of guests at one time, and require local property management. Additionally, the regulations for short-term vacation rentals will require payment of taxes, consistent with other lodging uses within the City. Finally, regulation of these types of uses will help to ensure that potential for-sale or long-term rental units are not being removed from the market to be offered as short-term vacation rentals, and thus not contribute to the Bay Area’s housing shortage. GENERAL PLAN CONSISTENCY Any change to the Zoning Ordinance must be consistent with the General Plan and any applicable specific plans. In this case, the proposed Zoning Amendment is consistent with the adopted General Plan because the Zoning Amendment will reinforce the General Plan policies, is consistent with the relevant specific plans, and is consistent with the City’s overall vision for community development, economic vitality, and preservation of residential neighborhood character. None of the new or revised use definitions, performance standards, and modifications to allowable land uses will conflict with or impede achievement of any of the goals, policies, or land use designations established in the General Plan. ENVIRONMENTAL DETERMINATION The revisions and corrections set forth in this Zoning Amendment, as they relate to “Short-Term Vacation Rental” uses Citywide, are minor in nature, the adoption of which would not result in any new significant environmental effects or a substantial increase in the severity of any previously identified effects beyond those disclosed and analyzed in the Initial Study / Negative Declaration (IS/ND) prepared and circulated for the Zoning Ordinance adoption, nor do the refinements, clarifications, and/or corrections constitute a change in the project or change in circumstances that would require additional environmental review. Accordingly, no further California Environmental Quality Act (CEQA) review is required to approve the amendments. Staff Report Subject: SHORT-TERM VACATION RENTALS Date: September 23, 2015 Page 13 of 13 CONCLUSION It is recommended that the City Council follow the recommendation of the Planning Commission and take the following action: 1. Introduce an Ordinance approving Zoning Amendment ZA15-0006, amending the Zoning Code to establish regulations related to short-term vacation rental uses and waive further reading. By: Approved: Alex Greenwood Director of Economic and Community Development Mike Futrell City Manager Attachments: 1. Draft Zoning Amendment Ordinance p. 1 2. Planning Commission Zoning Text Amendment Resolution 2777-2015 p. 14 3. Communication Received p. 30 4. Sample Short-Term Vacation Rental Permit Application p. 33 5. PowerPoint Presentation p. 38 City Council Hearing August 22, 2018 1 Short-term vacation rental is a relatively new use Rise of the sharing economy ◦Can rent cars, beds, boats or other goods from other people, generally through the internet Zoning Ordinance currently does not currently define or regulate this type of use 2 Land use compatibility ◦Commercial use in a residential neighborhood Noise Parking Public safety, due to frequent visitor turnover Local management Potential for removing permanent housing units, adding to housing shortage 3 1.Allow by-right, subject to performance standards ◦Simplest approach ◦Difficult to assess performance standards 2.City review through a permit process 3.Prohibit short-term vacation rentals 4 It is recommended that the City Council take the following actions: ◦Provide staff with comments and directions regarding regulating short-term vacation rentals 5