Sand City Municipal Code Ch. 5.20 Standards, Procedures, and Fees for Short Term Rentals

This chapter authorizes short-term rental use of a dwelling unit for remuneration for less than 30 consecutive days and establishes short-term rental permit requirements and limitations. This chapter also sets regulations to enforce these requirements and limitations and collection and payment of fees and transient occupancy tax ("TOT"). For purposes of this chapter, a short-term rental is intended to meet the definition of "hotel" found in Section 3.24.020 of the Sand City Municipal Code.

(Ord. 22-02 §1)

The transient use or short-term rental of residential property by any owner, representative, responsible tenant, person acting as an agent, real estate broker, real estate sales agent, property manager, reservation service, or anyone who otherwise uses, arranges, or negotiates for the use of residential property for remuneration is prohibited, except as otherwise expressly permitted by this chapter, and for which a short-term license is issued under this chapter. The short-term rental of residential property without a license is a violation of this chapter and enforced under Chapter 1.18 of the Sand City Municipal Code.

(Ord. 22-02 §1)

"Advertising"

means signs, circulars, cards, telephone books, newspapers, magazines, posters, email, mobile applications, television, radio, internet websites, social media, or any other representation implying or stating that a property is available for short-term rental use.

"Affordable housing unit"

means any property qualifying for affordable housing cost under Health and Safety Code Section 50052.5.

"City Manager"

means the City Manager of the City of Sand City or designee.

"Host"

means an owner or entity that rents out a hosted rental to third parties for short-term rental use.

"Hosted rental"

means a home-sharing activity whereby a portion of a primary residence is rented.

"Hosting platform"

means a marketplace in whatever form or format that facilitates the short-term rental activity through advertising, match-making, or any other means, using any medium of facilitation, and from which the operator of the hosting platform derives revenues, including booking fees or advertising revenues, from providing or maintaining the marketplace.

"Occupant"

means any person who is on or in a short-term rental property other than service providers or the owner, whether or not the person stays overnight.

"Owner"

means the person(s) or entity(ies) that hold legal or equitable title to a dwelling.

"Short-term rental" or "STR"

means a privately owned residential dwelling, such as but not limited to a single-family detached or multiple family attached dwelling, apartment house, condominium, cooperative apartment, duplex, mobile home on permanent foundation, or a manufactured home on permanent foundation, or any portion of such dwellings, rented for occupancy for dwelling, lodging or sleeping purposes for any period of 30 consecutive days or less. Short-term rentals include hosted and unhosted rentals.

"Short-term rental use" or "short-term occupancy"

means the use, by any person, of residential property for transient lodging where the term of occupancy, possession, or tenancy of the property by the person entitled to such occupancy, possession, or tenancy is less than 30 consecutive calendar days.

"Short-term rental permit" or "STR permit"

shall authorize the short-term rental use of an entire dwelling unit.

"Short-term rental permit cap" or "cap"

means the maximum number of short-term rental permits allowed to be issued under this chapter.

"Short-term rental permit waitlist" or "waitlist"

means the list on which applications will be placed by the Planning Department when the number of permits issued by the City exceeds the cap, and which will be used when permits for issuance become available.

"Short-term rental site manager" or "site manager"

means the representative of the person or entity that owns a short-term rental.

"Unhosted rental"

means a home-sharing activity whereby the host remains off-site during the occupant's stay.

(Ord. 22-02 §1)

A. Short-term rentals shall not adversely affect the residential character of the neighborhood, nor shall the use generate noise, vibration, glare, odors, excessive foot traffic, excessive or illegal parking, or other effects that unreasonably interfere with any person's reasonable enjoyment of his or her residence.

B. It shall be unlawful for any person to advertise, undertake, maintain, authorize, book, or facilitate any renting to a transient occupant on a hosting platform or otherwise, without first procuring and remaining in compliance with all conditions of a valid STR permit and any other requirement of this chapter.

C. No person shall advertise or rent any STR without a City issued STR permit number depicted in a visible location on the advertisement, including any listing on a hosting platform. No advertising of the STR is permitted on site.

D. STRs shall not be occupied by more than two occupants per bedroom plus a total of two additional occupants at one time. Except as otherwise prohibited by law, the maximum occupancy set forth in this section may be reduced in order to provide sufficient paved parking for occupants. Sufficient paved parking means that there shall be one paved parking space available at the property for every two occupants 16 years of age or older.

E. All STRs shall have bathroom facilities accessible to occupants.

F. Events, parties, or group gatherings in excess of the occupancy limit set in subsection D of this section, including, but not limited to, weddings, banquets, and corporate events, are prohibited as part of any short-term rental use.

G. No signs shall be posted on the exterior of the dwelling or on the property advertising the short-term rental use.

H. No person shall offer or engage in a short-term rental in any part of the property not approved for residential use, including, but not limited to, a vehicle parked on the property, a storage shed, shipping container, trailer, mobile home, garage, or temporary structure such as a tent or yurt.

I. Affordable housing units and/or workforce housing units shall not be eligible for a STR permit.

J. Each host must either act as or appoint a short-term rental site manager who shall be on call 24/7, including holidays, when an occupant is renting the short-term rental unit, to manage the short-term rental unit and who shall respond to reported issues, contact the tenants regarding complaints received, and/or be physically present at the short-term rental unit to address reported concerns.

K. Each host or STR site manager shall respond within 30 minutes from the time of notification of any issue to address concerns or complaints pertaining to, but not limited to: unreasonable use of the STR property, unreasonable noise or disturbance, disorderly or unlawful conduct, overcrowding of the STR unit, or any other requirement or limit in this chapter or in the City's administrative policies and procedures.

L. Each host or STR site manager must inform at least one responsible short-term rental occupant regarding occupancy, parking, noise, trash collection schedules, and any other requirements or limits in this chapter or in the City's administrative policies and procedures.

M. Each host shall post a City-issued placard in a location visible at the front entrance. The placard shall prominently display the site manager's contact information, the STR permit number, and occupancy limits. It shall be the responsibility of the host to immediately notify the City and obtain an updated placard whenever there is a change in contact information or a change in any material fact upon which the STR permit was issued.

N. Each host shall maintain a valid STR permit at all times and shall agree to collect and remit TOT (as described by Chapter 3.24 of the Sand City Municipal Code) on all gross receipts from short-term rental use of the property.

O. Each host shall sign an indemnification and hold harmless agreement in a form approved by the City Attorney, agreeing to indemnify, save, protect, hold harmless, and defend the City of Sand City, the City Council of City of Sand City, individually and collectively, and the City of Sand City representatives, officers, officials, employees, agents, and volunteers from any claims, demands, damages, fines, obligations, suits, judgments, penalties, causes of action, losses, liabilities, or costs received, incurred, or accrued as a result of, or arising out of the host's or site manager's actions or inaction in the operation, occupancy, use, and/or maintenance of the STR.

P. Transient occupancy tax (TOT) shall be assessed for short-term rentals under Chapter 3.24 of the Sand City Municipal Code.

(Ord. 22-02 §1)

To obtain a STR permit, the STR owner shall apply on forms provided by the City. Short-term rental permit applications shall comply with all the terms, conditions, and requirements of this chapter, including:

A. A STR permit application shall be in the name of the owner of the real property proposed to be rented under this chapter.

B. A STR shall be non-transferable, shall not run with the land, and shall be valid only at the site described in the application.

C. Each STR permit application shall be signed by the owner and include the following information:

1. Address of the short-term rental unit.

2. Name, address, phone, and email contact information of the owner of the short-term rental unit.

3. Name and phone number of the site manager whose contact information is to be placed on a placard to be posted within the short-term rental under Section 5.20.040(M) of this chapter.

4. A floor plan and site plan which shows the proposed use of each room in each building and structure.

5. Maximum occupancy of the short-term rental unit.

6. Number of paved parking spaces on the property.

7. A declaration that any applicable covenants, conditions, and restrictions are consistent with and would not prohibit issuance of a short-term rental permit for the proposed property.

8. Proof that the City has verified smoke and carbon monoxide alarms are installed and fire extinguishers and inaccessible locations.

D. Every application for a STR permit shall be accompanied by the STR permit application fee and inspection fee in the amounts established by resolution of the City Council.

E. The Director of the Planning Department, or designee, shall inspect all properties in all STR permit applications, including renewal applications before issuing a permit. STR permit applicants may have to make improvements or changes to the proposed STR property to ensure that the proposed STR property conforms with all plan area statements and building code standards that were in effect at the time of construction of the STR property and that no health and safety violations are present at the STR property.

F. The City Manager may deny an application for a STR permit for any of the following reasons:

1. The application is incomplete or the full application fee has not been paid;

2. The application contains a false or misleading statement or omission of material fact;

3. The dwelling is subject to an enforcement action under any provision of the Sand City Municipal Code;

4. The applicant is delinquent on any payment to the City of any fees, penalties, taxes, or any other monies related to the property;

5. Within 24 months of application, the applicant had a short-term rental permit revoked at the property subject to the application or any other property in the City;

6. The operation of a short-term rental at the dwelling is a threat to the public health, safety, or welfare;

7. The number of short-term rental permits issued by the City has reached the cap; and/or

8. Inspection of the short-term rental property has shown that the proposed short-term rental property does not conform with all plan area statements and building code standards that were in effect at time of construction of the short-term rental property or that health and safety violations are present at the short-term rental property that threaten the wellbeing of occupants, neighbors or the community.

(Ord. 22-02 §1)

A. The cap shall be set and amended by resolution of the City Council.

B. All persons or entities interested in operating a STR may pay the application fee and apply for a STR permit.

C. The filing date of the short-term rental permit application shall be the date when the Director of Planning officially received the last submission of information, payment, or materials required by subsections C and D of Section 5.20.050 of the Sand City Municipal Code. If the Director of the Planning Department, or designee, determines an application submittal is incomplete, a short-term rental permit applicant shall be notified of such incompleteness within 30 calendar days of receipt of the short-term rental permit application by the Planning Department. If the Director of the Planning Department does not receive a complete application within an additional 30 days after notification, the application shall be deemed abandoned and shall not be reviewed, and the applicant will not be placed on the short-term rental permit waitlist.

D. All short-term rental permit applications, which have been deemed complete by the Director of the Planning Department, shall be placed on the short-term rental waitlist in the order of the application's filing date. Short-term rental permit applications shall only be reviewed by the Development Services Director in the order of ranking as established by the short-term rental waitlist.

E. Upon the effective date of the ordinance codified in this section, any person or entity operating a short-term rental within one year of and before March 1, 2022, shall have 60 days from the effective date of the ordinance to submit a short-term rental permit application in conformance with Section 5.20.050 of the Sand City Municipal Code to establish priority on the short-term rental waitlist. Short-term rental permit applications submitted within 60 days of the effective date of the ordinance shall be deemed incomplete unless accompanied by all TOT required to be remitted to the City by the applicant from the six months prior to the date the application is received by the City. For 60 days from the effective date of the ordinance, only short-term rental permit applications from persons or entities operating a short-term rental within one year of and before March 1, 2022, will be accepted. Upon the expiration of this 60 day period, all other persons or entities may submit a short-term rental permit application.

F. The Director of the Planning Department shall review short-term rental permit applications and inspect short-term rental properties in the order received until all applications on the short-term rental permit waitlist have been reviewed or until the City determines the cap has been reached.

(Ord. 22-02 §1)

A. A STR permit shall expire one year from issuance.

B. STR permits must be renewed annually before expiration by filing a renewal application accompanied by the renewal fee (as established by resolution of the City Council) and the Inspection fee with the Director of the Planning Department.

C. If a timely renewal application is filed, the STR permit shall not expire until the date that the Director of the Planning Department approves or denies the renewal application. If a timely renewal application is not filed, the STR permit shall expire and shall be considered null and void.

D. A STR may not be renewed if the STR host does not meet the renewal requirements, including:

1. The timely filing of a renewal application;

2. Payment of the renewal fee;

3. Payment of the inspection fee;

4. Payment of the business license tax as described more fully in Chapter 5.04 of the Sand City Municipal Code;

5. The host is deemed to have substantially conformed with this chapter for the preceding year;

6. The host documents and provides any changes that have occurred to the information in the current STR permit or application;

7. Completion of a rental inspection as described in this chapter; and

8. Remittance of TOTs due from the STR use of the property.

(Ord. 22-02 §1)

A. A STR permit issued under the terms of this chapter may be revoked by the Director of the Planning Department at any time if he or she concludes any of the following:

1. The host or property owner is not current on TOTs and has not paid all said taxes to the City in full by the date upon which said taxes became due.

2. There have been two or more upheld citations for violations of the City Municipal Code which citations were issued during two separate events and/or calls for service for violations of the City Municipal Code at the short-term rental unit, on two different dates within any 24 month period. For purposes of this section, upheld citations means citations, which were neither overturned on appeal nor dismissed.

3. Any event occurs at a short-term rental property in which charges for criminal activity are filed by the Monterey County District Attorney against an occupant of the short-term rental property.

4. The host submitted a short-term rental permit application containing a material misrepresentation or omission of a material fact.

5. There has been a transfer or attempt to transfer a STR permit to another person, entity, or property.

6. A change occurs in any material fact upon which the STR permit was issued where the change was not reported to the City within 14 days.

7. The host failed to timely respond to two complaints pertaining to any of the following: unreasonable use of the short-term rental property, unreasonable noise or disturbance, disorderly or unlawful conduct, overcrowding of the short-term rental unit, or any other requirement or limit in this chapter.

8. The host fails to post and maintain a City-issued placard in a location visible at the front entrance displaying the short-term rental host's contact information, the short-term rental permit number, and occupancy limits or advertises the short-term rental without identifying the STR permit number.

(Ord. 22-02 §1)

A. Any use or condition caused or permitted to exist in violation of this article shall be and is declared a public nuisance and may be summarily abated by the City under Code of Civil Procedure Section 731, Sand City Municipal Code Section 1.16.010, or any other remedy available to the City.

B. Any use or condition caused or permitted to exist in violation of any provision of this chapter shall be charged as a misdemeanor pursuant to Section 1.16.020 of the Sand City Municipal Code.

C. Where a short-term rental host or site manager of the short-term rental alone reports a violation of any provision of this article, which violation was caused or permitted to exist by the short-term rental occupants, the City shall not issue a citation to said short-term rental host or site manager and shall only issue a citation, where warranted, to the occupants.

D. Owners or their agents found operating a short-term rental without a permit after December 15, 2022 shall be fined according to a schedule established by resolution of the City Council.

(Ord. 22-02 §1)

A. Any person denied a short-term rental permit, or any person whose short-term rental permit has been revoked may request a hearing from the City Attorney. The request for a hearing must be in writing and must be made within 10 calendar days from the decision denying or revoking the short-term rental permit. Upon receiving a written request for a hearing, the City Attorney or delegate shall set the matter for a hearing within 21 days thereafter and shall set forth in writing and send to the applicant or permittee by registered mail, certified mail, or hand delivery, notice of the date, time, and place of the hearing at least five days before the hearing date. The hearing shall be conducted to determine the existence of any facts which constitute grounds for the denial or revocation of a short-term rental permit. The hearing shall be conducted by a hearing officer, appointed by the City Attorney. The applicant or permittee may have the assistance of counsel or may appear by counsel and may present evidence. If the applicant or permittee fails to appear at the hearing, the evidence or the existence of facts which constitute grounds for denial or revocation of the license or permit shall be considered unrebutted. A copy of the decision of the hearing officer specifying findings of fact and the reasons for the decision shall be furnished to the applicant or licensee. The hearing officer shall inform the party against whom the decision is rendered of his or her right of appeal under subsection C of this section.

B. The effect of a decision by the hearing officer shall be stayed while an appeal to the City Council is pending or until the time for filing such appeal has expired. If an appeal is not timely filed, the decision of the hearing officer shall be final.

C. Within 10 days after receipt of the decision of the hearing officer, any party affected by the decision may file with the City Clerk a written request for a public hearing before the City Council. Upon filing such a request, the City Clerk shall within 21 days thereafter set the matter for a hearing and shall notify the applicant of the date, time, and place of such hearing at least five days before the hearing date. At the hearing, any person may present evidence opposing, or in support of, appellant's case. At the conclusion of the hearing, the City Council shall either grant or deny the appeal. The decision of the City Council shall be final.

(Ord. 22-02 §1)

Short-term rental permits shall not be construed as providing property rights or vested interests and entitlements in continued operation of a short-term rental. Short-term rental permits are revocable licenses, which expire annually.

(Ord. 22-02 §1)

The City Council may establish and set by resolution all fees and charges as may be necessary to effectuate the purpose of this chapter.

(Ord. 22-02 §1)

The City Manager, or designee, shall have the authority to establish administrative rules and regulations consistent with this chapter for interpreting, clarifying, carrying out, furthering, and enforcing the requirements and provisions of this chapter.

(Ord. 22-02 §1)

If any provision or clause of this chapter or the application thereof to any person or circumstances is held to be unconstitutional or to be otherwise invalid by any court of competent jurisdiction, such invalidity shall not affect other section provisions or clauses or applications, and to this end, the provisions, sections, and clauses of the ordinance codified in this chapter are declared to be severable.

(Ord. 22-02 §1)