Agenda Item Wording:
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Ordinance Adoption - A Public Hearing and Introduction of the first reading of Ordinance No. 2024-12 for Zoning Text Amendment No. 2024-04: A request by the City of Visalia to amend Visalia Municipal Code Title 17 (Zoning Ordinance), Chapter 17.32.166 Short-Term Rentals, Citywide.
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Deadline for Action: 1/21/2025
Submitting Department: Community Development
Contact Name and Phone Number:
Josh Dan, Senior Planner, josh.dan@visalia.city <mailto:josh.dan@visalia.city>, (559) 713-4003
Paul Bernal, Community Development Director, paul.bernal@visalia.city <mailto:paul.bernal@visalia.city>, (559) 713-4025
Department Recommendation:
Staff recommends that the City Council hold a public hearing and introduce the first reading of Ordinance No. 2024-12, amending Title 17 (Zoning Ordinance), Chapter 17.32.166 Short-Term Rentals to include fines for non-compliance, Citywide.
Summary:
During the second reading of Ordinance No. 2024-12, staff requested the City Council refer the item back to staff. This request was due to staff’s conclusion that revisions to the updated provisions to the ordinance could be made that will help eliminate redundances in City processing requirements and the annual renewal fee for STR applications. Staff has revised Ordinance No. 2024-12 eliminating the language that required property owners/operators that an annual renewal permit is required for all STR’s operating in Visalia.
Background Discussion:
The City Council, in response to several inquiries regarding Short-term rentals, directed staff to explore potential options regarding the ability to regulate this use in residential zones. On October 16, 2023, the City Council introduced the first reading of a Zoning Text Amendment (i.e., ZTA No. 2023-01) that established codified performance standards regulating short-term rentals occurring in all residential zones (i.e., R-1 and R-M zones). In addition, the City Council directed staff to return in 60 to 90 days after the STR ordinance took effect for further discussion on potential revisions to the ordinance.
On February 20, 2024, staff presented an update on the STR ordinance and included additional information that could be further considered to help in getting STR owners/operators legally permitted. During the discussion of this work session item, a majority of City Council concluded that due to the limited data provided on STR application submittals, staff should return in six months to update the Council on the Ordinance’s implementation and to determine if additional measures would be merited to get STR owners/operators legally permitted.
On September 3, 2024, staff returned to the City Council with an update on the STR Ordinance “roll out” thus far. Based on information received during the September 3rd meeting, Council directed staff to amend the STR Ordinance (Chapter 17.32.166) to address compliance fee assessment and incorporate annual permitting requirements, thus, Zoning Text Amendment (ZTA) No. 2024-04 was the city-initiated request to address revisions as directed by the City Council.
Updated Revisions to VMC Section 17.32.166 Short-Term Rentals:
Compliance Fee Assessment
Section 17.32.166.E has been added to the STR Ordinance. This new section, in coordination with the Finance Department, identifies the need to include enforcement language that explicitly identifies the penalty fee to be assessed for owners/operators who fail to comply with the STR ordinance and/or fail to apply for all the necessary applications / permits.
Similar to the Solid Waste provisions of the municipal code, revisions to Section 17.32.166 Short-term rental permits will now explicitly list the penalty fines if a property owner/operator fails to comply with the STR ordinance. The penalty amounts noted in the STR Ordinance for noncompliance, after first notice, are $100, $200, and $500.
Section 17.32.166 will be revised as follows:
E. Enforcement:
The City, in its sole discretion, may take enforcement action pursuant to the administrative code procedure described in Chapters 1.12 <https://codelibrary.amlegal.com/codes/visalia/latest/visalia_ca/0-0-0-22524> and 1.13 <https://codelibrary.amlegal.com/codes/visalia/latest/visalia_ca/0-0-0-22540> of the Visalia Municipal Code.
Any person convicted of any infraction of this chapter shall be punished by:
1. A fine not exceeding one hundred dollars ($100.00) for a first violation;
2. A fine not exceeding two hundred dollars ($200.00) for the second violation of this chapter within one year; and
3. A fine not exceeding five hundred dollars ($500.00) for each additional violation of this chapter within one year. Each day a violation continues shall be regarded as a new and separate offense.
Annual Renewal Requirement (Removed)
The annual STR application renewal requirement language, as initially proposed per Ordinance No. 2024-12, has been removed. Staff concludes this requirement, if enacted, results in a redundancy on determining if an STR is operational due to the fact that all STRs are already subject to bi-annual Business Tax fee assessment and reporting requirements that demonstrate if a business is still active in the City of Visalia. The removal of this proposed section also results in eliminating an additional fee that the Planning Division would have assessed on all renewal STR applications thereby reducing additional requirements that can be viewed as a burden on STR owners/operators that are otherwise not applied to other commercial business establishments, including traditional residential rentals.
Fiscal Impact: None.
Prior Council Action:
• September 3, 2024: Staff presented an update on the outreach and permit implementation thus far, and presented additional measures by which staff could get STR operators into compliance as Council had directed six-months prior. At the conclusion of the meeting, Council had approved the recommendation of staff to amend the STR Ordinance (Chapter 17.32.166) to address compliance fee assessment and incorporate annual permitting requirements, as well as approve staff to solicit software services that may help in capturing STRs that have not applied for the appropriate City permits and licenses.
• February 20, 2024: Staff presented an update on the STR ordinance and included additional information that could be further considered to help in getting STR owners/operators legally permitted. During the discussion of this work session item, a majority of City Council concluded that due to the limited data provided on STR application submittals, staff should return in six months to update the Council on the Ordinance’s implementation and to determine if additional measures would be merited to get STR owners/operators legally permitted.
• November 6, 2023: The City Council, on a 4-1 vote, approved the second reading of Ordinance No. 2023-11 was held and served as the final action the City Council took in order for Zoning Text Amendment No. 2023-01 to take effect 30 days following adoption of the second reading.
• October 16, 2023: The City Council, on a 3-2 vote, approved the first reading of Zoning Text Amendment No. 2023-01 (Ordinance No. 2023-11), proposing to provide the framework for staff to implement a registration and permitting process for all short-term rentals occurring in all residential zones (i.e., R-1 and R-M zones) within the city.
• May 1, 2023, City Council Work Session: The City Council, on a 5-0 vote, directed staff to analyze potential operational standards for short-term rentals, and begin a Zoning Text Amendment.
Planning Commission Public Hearings:
• November 12, 2024: The Planning Commission voted 5-0 to recommend approval of Zoning Text Amendment No. 2024-04, to the City Council.
• September 25, 2023: The Planning Commission voted 5-0 to recommend approval of Zoning Text Amendment No. 2023-01, to the City Council.
• August 28, 2023: The Planning Commission received a presentation and informative report regarding short-term rentals which included a synopsis of staff’s previous presentation to the City Council and explanation of directives received. The Planning Commission expressed agreement with Council’s directives.
Alternatives:
The City Council may, in lieu of the recommended motion, consider any of the following alternatives:
1. Refer all parts of the ordinance back to the Planning Commission for further review; or
2. Direct staff to not process any amendments to Visalia Municipal Code Section 17.32; or
3. Continue the matter of a future City Council hearing for additional information.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to introduce the first reading of Ordinance No. 2024-12 for Zone Text Amendment No. 2024-04.
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Environmental Assessment Status:
The project is Categorically Exempt from the California Environmental Quality Act (CEQA) pursuant to the Code of Regulations Section 15061(b)(3).
CEQA Review:
The requested action is considered exempt under Section 15061(b)(3), Per Section 15061(b)(3) of the State Guidelines for the California Environmental Quality Act (CEQA). A Notice of Exemption has been prepared for the project because Section 15061 (b) (3) states that the project is exempted from CEQA if the activity is covered by the commonsense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The proposed text amendment to establish performance standards for smoke shops will not have a significant effect on the environment.
Attachments:
Attachment 1 - Ordinance No. 2024-12