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ORD 501ORDINANCE NO. 501 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AMENDING PORTIONS OF CHAPTER 3.24 "TRANSIENT OCCUPANCY TAX;" AND ADDING CHAPTER 3.25 "SHORT-TERM VACATION RENTALS" TO TITLE 3 "REVENUE AND FINANCE" OF THE LA QUINTA MUNICIPAL CODE WHEREAS, the City of La Quinta ("City") has the authority under Article 11, Section 5 of the California Constitution and the City Charter to make and enforce all ordinances and regulations with respect to municipal affairs; and WHEREAS, the City has the authority to regulate businesses operating within the City; and WHEREAS, short-term vacation rentals of private residences within the City are subject to the City's transient occupancy tax; and WHEREAS, the City has a substantial interest in insuring that all required transient occupancy tax required to be collected and remitted is in fact collected and remitted on a fair and equitable basis as this tax is an integral part of the City's budget. Renters of private homes utilize the City's infrastructure and services and the failure to collect the required taxes from such renters unfairly shifts the burden of their use to the tax payers of City. The proposed regulations have been narrowly tailors to only address the issues of most concern and to provide a mechanism to insure that taxes are collected and remitted on a uniform basis; and WHEREAS, the City desires and intends to amend the La Quinta Municipal Code to ensure compliance with the City's transient occupancy tax to promote accurate collection; and WHEREAS, at said public hearing, said City Council heard and considered all testimony and arguments of all interested persons; and WHEREAS, the City Council of the City of La Quinta, California did on the 181h day of September, 2012, hold a duly noticed Public Hearing and considered the evidence, written and oral, presented at the hearing. NOW, THEREFORE, the City Council of the City of La Quinta does ordain as follows: - Ordinance No. 501 Amend/Add to Municipal Code Chapters 3.24 and 3.25 Short-term Vacation Rental Adopted: October 16, 2012 Page 2 SECTION 1. The above recitals are true and correct and are adopted as the findings of the City Council. SECTION 2. Title 3 Revenue and Finance of the La Quinta Municipal Code, is amended as identified on Exhibits "A", "B", and "C", attached hereto and incorporated herein by this reference. SECTION 3. EFFECTIVE DATE: This Ordinance shall be in full force and effect thirty (30) days after its adoption. SECTION 4. POSTING: The City Clerk shall, within 15 days after passage of this Ordinance, cause it to be posted in at least three public places designated by resolution of the City Council, shall certify to the adoption and posting of this Ordinance, and shall cause this Ordinance and its certification, together with proof of posting, to be entered into the Book of Ordinances of the City of La Quinta. PASSED, APPROVED and ADOPTED, at a regular meeting of the La Quinta City Council held this 16" day of October 2012, by the following vote: AYES: Councilmembers Evans, Franklin, Henderson, Osborne, Mayor Adolph NOES: None ABSENT: None ABSTAIN: None ATTEST: SUSAN MAY_SELS, City Jerk City of La Quirita, California (CITY SEAL) y4 l t. Q1+� A�� DON ADOL May City of La uinta, California Ordinance No. 501 Amend/Add to Municipal Code Chapters 3.24 and 3.25 Short-term Vacation Rental Adopted: October 16, 2012 Page 3 APPROVED AS TO FORM: , City Attorney City of La Quinta, Ordinance No. 501 Amend/Add to Municipal Code Chapters 3.24 and 3.25 Short-term Vacation Rental Adopted: October 16, 2012 Page 4 EXHIBIT A Chapter 3.24 Transient Occupancy Tax Section 3.24.020 Definitions "Hotel" means any structure, or any portion of any structure, which is occupied or intended or designed for use or,occupancy by transients, including but not limited to dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, time-share project or facility, dormitory, public or private club, rental space for recreation vehicles, mobile home or house trailer at a fixed location, or other similar structure or portion thereof, duplex, triplex, single-family dwelling units, including a "short-term vacation rental unit as defined in Chapter 3.25", except any private dwelling house or other individually owned single-family dwelling house unit rented only occasionally (infrequently) and incidentally to the normal occupancy by the owner or his family; provided, that the burden of establishing that the housing or facility is a hotel as defined in this subsection shall be upon the owner or operator thereof who shall file with the tax administrator such information as the tax administrator may require, to establish and maintain such status. Ordinance No. 501 Amend/Add to Municipal Code Chapters 3.24 and 3.25 Short-term Vacation Rental Adopted: October 16, 2012 Page 5 EXHIBIT B 3.24.060 Registration A. Except for short-term vacation rental units as defined in Chapter 3.25 and noted under item C below, every person desiring to engage in or conduct business as operator of a hotel renting to transients within the city shall file with the tax administrator an application for a transient occupancy registration permit for each place of business. Every application for such a permit shall be made upon a form prescribed by the tax administrator and shall set forth the name under which the applicant transacts or intends to transact business, the location of his place of business and such other information as the tax administrator may require. The application shall be signed by the owner if a natural person, by a member or partner, if an association or partnership, by an executive officer or some person specifically authorized by the corporation to sign the application in the case of a corporation. The transient occupancy registration permit must be in effect at all times while the business is in operation and shall be at all times posted in a conspicuous place on the premises. The permit shall, among other things, state the following: 1. Name of hotel; 2. Name of operator; 3. Hotel address; 4. The date upon which the permit was issued; 5. "This Transient Occupancy Registration Permit signifies that the person named on the face hereof has fulfilled the requirements of the Transient Occupancy Tax Chapter by registering with the Tax Administrator for the purpose of collecting from transients the Transient Occupancy Tax and remitting said tax to the Tax Administrator. This Permit does not authorize any person to conduct any unlawful business in any unlawful manner, nor operate a hotel without strictly complying with all applicable laws, including but not limited to those requiring a permit from any board, commission, department or office of this City. This Permit does not apply in lieu of such other permits which are otherwise required." B. At the time of making an application for a registration permit, the applicant shall pay a registration fee of five dollars for each permit issued. C. Transient Occupancy Tax Registration Permits issued for the operation of short-term vacation rentals prior to the date of this ordinance shall remain in effect until December 31, 2013. The registration of short-term vacation rentals shall be conducted in accordance with the provisions as set forth in Chapter 3.25. Ordinance No. 501 Amend/Add to Municipal Code Chapters 3.24 and 3.25 Short-term Vacation Rental Adopted: October 16, 2012 Page 6 EXHIBIT C Chapter 3.25 SHORT-TERM VACATION RENTALS 3.25.010 Title. This chapter shall be referred to as the "Short -Term Vacation Rental Regulations." 3.25.020 Purpose. A. The purpose of this chapter is to establish regulations for the use of privately owned residential dwellings as short-term vacation rentals that ensure the collection and payment of transient occupancy taxes as provided in Chapter 3.24, and minimize the negative secondary effects of such use on surrounding residential neighborhoods. B. This chapter is not intended to provide any owner of residential property with the right or privilege to violate any private conditions, covenants and restrictions applicable to the owner's, property that may prohibit the use of such owner's residential property for short-term vacation rental purposes as defined in this chapter. 3.25.030 Definitions. For purposes of this chapter, the following words and phrases shall have the meaning respectively ascribed to them by this section: "Applicable laws, rules and regulations" means any laws, rules, regulations and codes (whether local, state or federal) pertaining to the use and occupancy of a privately owned dwelling unit as a short-term vacation rental. "Applicant" means the owner of the short-term vacation rental unit or the owner's authorized agent or representative. "Authorized agent or representative" means the designated agency or representative who is responsible for compliance with this chapter with respect to the short-term vacation rental. "City manager" means that person acting in the capacity of the city manager of the city of La Quinta or designee. "Good neighbor brochure" means a document prepared by the city that summarizes the general rules of conduct, consideration, and respect, including without limitation provisions of the La Quinta Municipal Code and other applicable Ordinance No. 501 Amend/Add to Municipal Code Chapters 3.24 and 3.25 Short-term Vacation Rental Adopted: October 16, 2012 Page 7 laws, rules or regulations pertaining to the use and occupancy of short-term vacation rental units. "Local contact person" means the person designated by the owner or the owner's authorized agent or representative who shall be available twenty-four hours per day, seven days per week for the purpose of: (1) responding within forty- five minutes to complaints regarding the condition, operation, or conduct of occupants of the short-term vacation rental unit; and (2) taking remedial action to resolve any such complaints. "Owner" means the person(s) or entity(ies) that hold(s) legal and/or equitable title to the subject short-term vacation rental. "Property" means a residential legal lot of record on which a short-term vacation rental unit is located. "Responsible person" means an occupant of a short-term vacation rental unit who is at least eighteen years of age and who is legally responsible for ensuring that all occupants of the short-term vacation rental unit and/or their guests comply with all applicable laws, rules and regulations pertaining to the use and occupancy of the subject short-term vacation rental unit. "Short-term vacation rental permit" means a permit that permits the use of a privately owned residential dwelling as a short-term vacation rental unit pursuant to the provisions of this chapter, and which incorporates by consolidation a transient occupancy permit and a business license otherwise required by Section 3.24.060 of Chapter 3.24 and Section 3.28.020 of Chapter 3.28. "Short-term vacation rental unit" means a privately owned residential dwelling, such as, but not limited to, a single-family detached or multiple -family attached unit, apartment house, condominium, cooperative apartment, duplex, or any portion of such dwellings, rented for occupancy for dwelling, lodging, or sleeping purposes for a period of thirty consecutive calendar days or less, counting portions of calendar days as full days; except any private dwelling house or other individually owned single-family dwelling house unit rented only once in a calendar year. "Transient" for purposes of this chapter means any person who seeks to rent or who does rent a short-term vacation rental unit. 3.25.040 Authorized agent or representative. A. An owner may authorize an agent or a representative to comply with the requirements of this chapter on behalf of the owner. Ordinance No. 501 Amend/Add to Municipal Code Chapters 3.24 and 3.25 Short-term Vacation Rental Adopted: October 16, 2O12 Page 8 B. Notwithstanding subsection A, the owner shall not be relieved from any personal responsibility and personal liability for noncompliance with any applicable law, rule or regulation pertaining to the use and occupancy of the subject short- term vacation rental unit, regardless of whether such noncompliance was committed by the owner's authorized agent or representative or the occupants of the owner's short-term vacation rental unit or their guests. 3.25.050 Short-term Vacation rental permit —Required. A. The owner or the owner's authorized agent or representative is required to obtain a short-term vacation rental permit and a business license from the city before renting or advertising the availability of a short-term vacation rental unit. B. A short-term vacation rental permit shall be required to be renewed on an annual basis in order to remain valid. 3.25.060 Short-term vacation rental permit —Application. A. The owner or the owner's authorized agent or representative must submit the following information on a short-term vacation rental permit application form provided by the city: 1. The name, address, and telephone number, and address of the owner of the subject short-term vacation rental unit; 2. The name, address, and telephone number of the owner's authorized agent or representative, if any; 3. The name, address, and twenty-four hour telephone number of the local contact person; 4. The address of the proposed short-term vacation rental unit, internet listing site and listing number; 5. Contact name and phone number of the homeowner's association, if applicable; 6. The number of bedrooms and the applicable overnight and daytime occupancy limit of the proposed short-term vacation rental unit; 7. Acknowledgement of receipt and inspection of a copy of the good neighbor brochure; S. Such other information as the city manager or designee deems reasonably necessary to administer this chapter. B. The short-term vacation rental permit application shall be accompanied by an application fee of $25. Ordinance No. 501 Amend/Add to Municipal Code Chapters 3.24 and 3.25 Short-term Vacation Rental Adopted: October 16, 2012 Page 9 C. A short-term vacation rental permit application may be denied if the applicant has had a prior short-term vacation rental permit for the same unit revoked within the past twelve calendar months. D. Within fourteen days of a change of property ownership, change of owner's agent or representative, or any other change in material facts pertaining to the information contained in the vacation rental permit application, the owner or owner's authorized agent or representative shall submit an application and requisite application fee for a new short-term vacation rental permit, which must be obtained prior to continuing to rent the subject unit as a short-term vacation rental. E. Transient Occupancy Registration Permits issued for the operation of short- term vacation rentals prior to the effective date of this ordinance shall remain in effect until December 31, 2013. All short-term vacation rentals shall be registered annually thereafter in accordance with Section 3.25.050. 3.25.070 Operational requirements and standard conditions. A. The owner and/or owner's authorized agent or representative shall use reasonably prudent business practices to ensure that the short-term vacation rental unit is used in a manner that complies with all applicable laws, rules and regulations pertaining to the use and occupancy of the subject short-term vacation rental unit. B. The number of occupants allowed to occupy any given short-term vacation rental unit shall be limited as follows: Total Daytime** Number of Total of Overnight* Occupants (Including Number Bedrooms Occupants of Overnight Occupants) 0 - Studio 2 8 1 4 8 2 6 8 3 8 12 4 10 16 5 12 18 6 14 20 7 14 20 Ordinance No. 501 Amend/Add to Municipal Code Chapters 3.24 and 3.25 Short-term Vacation Rental Adopted: October, 16, 2012 Page 10 ,r Overnight (10:01 P.M. - 6:59 a.m.) "Daytime (7:00 a.m. - 10:00 p.m.) C. While a short-term vacation rental unit is rented, the owner, the owner's authorized agent or representative and/or the owner's designated local contact person shall be available twenty-four hours per day, seven days per week for the purpose of responding within forty-five minutes to complaints regarding the condition, operation, or conduct of occupants of the short-term vacation rental unit or their guests. D. The owner, the owner's authorized agent or representative and/or the owner's designated local contact person shall use reasonably prudent business practices to ensure that the occupants and/or guests of the short-term vacation rental unit do not create unreasonable noise or disturbances, engage in disorderly conduct, or violate any applicable law, rule or regulation pertaining to the use and occupancy of the subject short-term vacation rental unit. E. No radio receiver, musical instrument, phonograph, compact disk player, loudspeaker, karaoke machine, sound amplifier, or any machine, device or equipment that produces or reproduces any sound shall be used outside or be audible from the outside of any short-term vacation rental unit between the hours of ten p.m. and one p.m. F. Prior to occupancy of a short-term vacation rental unit, the owner or the owner's authorized agent or representative shall: (1) Obtain the contact information of the responsible person; (2) Provide a copy of the good neighbor brochure to the responsible person; and (3) Require such responsible person to execute a formal acknowledgement that he or she is legally responsible for compliance by all occupants of the short- term vacation rental unit and their guests with all applicable laws, rules and regulations pertaining to the use and occupancy of the short-term vacation rental unit. This information shall be maintained by the owner or the owner's authorized agent or representative for a period of three years and be made readily available upon request of any officer of the city responsible for the enforcement of any provision of the Municipal Code or any other applicable law, rule or regulation pertaining to the use and occupancy of the short-term vacation rental unit. G. The owner, the owner's authorized agent or representative and/or the owner's designated local contact person shall, upon notification that the responsible person and/or any occupant and/or guest of the short-term vacation rental unit has created unreasonable noise or disturbances, engaged in disorderly conduct, or committed violations of any applicable law, rule or regulation pertaining Ordinance No. 501 Amend/Add to Municipal Code Chapters 3.24 and 3.25 Short-term Vacation Rental Adopted: October 16, 2012 Page 11 to the use and occupancy of the subject short-term vacation unit, promptly respond in a timely and appropriate manner to immediately halt or prevent a recurrence of such conduct by the responsible person and/or any occupants and/or guests. Failure of the owner, the owner's authorized agent or representative and/or the owner's designated local contact person to respond to calls or complaints regarding the condition, operation, or conduct of occupants and/or guests of the short-term vacation rental in a timely and appropriate manner shall be subject to all administrative, legal and equitable remedies available to the city. H. The owner, the owner's authorized agent or representative and/or the owner's designated local contact person shall report to the city manager, or designee, the name, violation, date, and time of disturbance of each person involved in three or more disorderly conduct activities, disturbances or other violations of any applicable law, rule or regulation pertaining to the use and occupancy of the subject short-term vacation rental unit. I. Trash and refuse shall not be left stored within public view, except in proper containers for the purpose of collection by the city's authorized waste hauler on scheduled trash collection days. The owner, the owner's authorized agent or representative shall use reasonably prudent business practices to ensure compliance with all the provisions of Chapter 6.04 (Solid Waste Collection and Disposal) of the Municipal Code. J. No sign, as that term is defined in Section 9.160.130 of Chapter 9.160 (Signs), shall be posted on the premises to advertise the availability of the short- term vacation rental unit. Off -site directional signs are prohibited. K. On -site parking shall be allowed on an approved driveway, garage, and/or carport areas only. Recreational vehicles may be parked in accordance with the provisions set forth in Section 9.60.130 of Chapter 9.60. L. The owner, the owner's authorized agent or representative and/or the owner's designated local contact person shall post a copy of the short-term vacation rental permit and a copy of the good neighbor brochure in a conspicuous place within the short-term vacation rental unit, and a copy of the good neighbor brochure shall be provided to each occupant of the subject short-term vacation rental unit. M. Unless otherwise provided in this chapter, the owner and/or the owner's authorized agent or representative shall comply with all provisions of Chapter 3.24 of the Municipal Code concerning transient occupancy taxes, including, but not limited to, submission of a monthly return in accordance with Section 3.24.070 of Chapter 3.24 of the Municipal Code, which shall be filed monthly even if the short- term vacation rental unit was not rented during each such month. Ordinance No. 501 Amend/Add to Municipal Code Chapters 3.24 and 3.25 Short-term Vacation Rental Adopted: October 16, 2012 Page 12 N. The city manager, or designee, shall have the authority to impose additional conditions on the use of any given short-term vacation rental unit to ensure that any potential secondary effects unique to the subject short-term vacation rental unit are avoided or adequately mitigated. O. The standard conditions set forth herein may be modified by the city manager, or designee, upon request of the owner or the owner's authorized agent or representative based on site -specific circumstances for the purpose of allowing reasonable accommodation of a short-term vacation rental. All requests must be in writing and shall identify how the strict application of the standard conditions creates an unreasonable hardship to a property such that, if the requirement is not modified, reasonable use of the property for a short-term vacation rental would not be allowed. Any hardships identified must relate to physical constraints to the subject site and shall not be self-induced or economic. Any modifications of the standard conditions shall not further exacerbate an already existing problem. P. The owner and/or the owner's authorized agent or representative shall post the current short-term vacation rental permit number on or in any advertisement appearing in any newspaper, magazine, brochure, television trade paper, Internet website, etc., that promotes the availability or existence of a short-term vacation rental unit in a place or location deemed acceptable by the city manager or designee. In the instance of audio -only advertising of the same, the short-term vacation rental permit number shall be read as part of the advertising. 3.25.080 Recordkeeping duties. The owner or the owner's authorized agent or representative shall maintain for a period of three years, records in such form as the tax administrator (as defined in Chapter 3.24) may require to determine the amount of transient occupancy tax owed to the city. The tax administrator shall have the right to inspect such records at all reasonable times, which may be subject to the subpoena by the tax administrator pursuant to Section 3.24.140 (Records) of Chapter 3.24 (Transient Occupancy Tax) of the Municipal Code. 3.25.090 Violations. A. Additional Conditions. A violation of any provision of this chapter by any of the occupants, responsible party, owner(s) or the owner's authorized agent or representative shall authorize the city manager, or designee, to impose additional conditions on the use of any given short-term vacation rental unit to ensure that any potential additional violations are avoided. Ordinance No. 501 Amend/Add to Municipal Code Chapters 3.24 and 3.25 Short-term Vacation Rental Adopted: October 16, 2012 Page 13 B. Permit Modification, Suspension and Revocation. A violation of any provision of this chapter by any of the occupants, responsible party, owner(s) or the owner's authorized agent or representative shall constitute grounds for modification, suspension and/or revocation of the short-term vacation rental permit and/or any affiliated licenses or permits pursuant to the provisions set forth in Section 2.04.100 (Appeals to Council) of Chapter 2.04. C. Notice of Violation. The City may issue a notice of violation to any occupant, responsible party, owner(s) or the owner's authorized agent or representative, pursuant to 1.01.300 (Notices —Service) of the Municipal Code, if there is any violation of this chapter committed, caused or maintained by the any of the above parties. D. Administration Citation. The City may issue an administrative citation to any occupant, responsible party, owner(s) or the owner's authorized agent or representative, pursuant to Chapter 1.09 (Administrative Citation) of the Municipal Code, if there is any violation of this chapter committed, caused or maintained by any of the above parties. Nothing in this section shall preclude the city from also issuing an infraction citation upon the occurrence of the same offense on a separate day. E. Misdemeanor Citation. The city may issue a misdemeanor citation to any occupant, responsible party, owner(s) or the owner's authorized agent or representative. Every violation of this chapter is a misdemeanor and punishable by a fine not exceeding five hundred dollars or imprisonment in the county jail for not more than six months or by both such fine and imprisonment. F. Public Nuisance. It shall be a public nuisance for any person to commit, cause or maintain a violation of this chapter, which shall be subject to the provisions of Section 1.01.250 (Violations public nuisances) of Chapter 1.01 (Code Adopted). Ordinance No. 501 Amend/Add to Municipal Code Chapters 3.24 and 3.25 Short-term Vacation Rental Adopted: October 16, 2012 Page 14 STATE OF CALIFORNIA 1 COUNTY OF RIVERSIDE ► ss. CITY OF LA QUINTA 1 I, SUSAN MAYSELS, City Clerk of the City of La Quinta, California, do hereby certify the foregoing to be a full, true, and correct copy of Ordinance No. 501 which was introduced at a regular meeting on the 2nd day of October, 2012, and was adopted at a regular meeting held on the 16`h day of October, 2012, not being less than 5 days after the date of introduction thereof. I further certify that the foregoing Ordinance was posted in three places within the City of La Quinta as specified in City Council Resolution No. 2006-1 15. SUSAN MAYSELS, City Jerk City of La Quinta, California r � DECLARATION OF POSTING I, SUSAN MAYSELS, City Clerk of the City of La Quinta, California, do hereby certify that the foregoing ordinance was posted on October, 2012 pursuant to Council Resolution. SUSAN MAYSELS, Cit Clerk City of La Quinta, California