File #: ORD 24-027    Name: Vacation Rental Ordinance - 1st Reading
Type: Ordinance Status: Scheduled PM
File created: 8/16/2024 In control: Board of Supervisors
On agenda: 8/27/2024 Final action:
Title: Public Hearing to consider: a. Introducing, waiving reading, and setting September 10, 2024 at 10:30 a.m. as the date and time to consider adoption of an ordinance amending Section 7.02.060 of the Monterey County Code (MCC) and adding a new Chapter 7.120 to require a business license and a vacation rental operation license for any short-term vacation rental operations in the unincorporated Monterey County; b. Adopting a resolution of intent to adopt an ordinance that amends numerous definition and zoning district use sections of Title 20 (Coastal Zoning Ordinance) and adds Section 20.64.290 to the MCC to regulate the short-term vacation rental of residential property; c. Adopting an ordinance amending Title 21 (Non-coastal Zoning Ordinance) to amend numerous definition and zoning district use sections of Title 21, to repeal and replace Section 21.64.280 of the MCC, and adds Section 21.64.290 to regulate the short-term vacation rental of residential property; d. Amending Board of Superv...
Attachments: 1. Board Report, 2. Attachment A - Draft Resolution Certifying the FEIR for the Vacation Rental Ordinances Project, 3. Attachment A - Attachment A - Montrey County VRO Findings, 4. Attachment B - Draft Resolution Amending HCD's article in the Master Fee Resolution, 5. Attachment B - Attachment A - Fee Article IX-Land Use 2024.08.27_Revision RED LINE, 6. Attachment B - Attachment B - Fee Article IX-Land Use 2024.08.27_Revision CLEAN, 7. Attachment C - Draft Resolution of Intent to Adopt Title 20, 8. Attachment C - Attachment A - Title 20_Vacation Rental Ordinance_ (BoS draft).V.8.27, 9. Attachment D - Draft Resolution Amending Board Resolution 01-485, 10. Attachment D - Attachment A - Amending Procedure for Agricultural Preserves, 11. Attachment D - Attachment B - Amending Procedure for Farmland Security Zones, 12. Attachment E - Title 7_Vacation Rental Ordinance_ (BoS draft).V.8.27, 13. Attachment F - Title 21_Vacation Rental Ordinance_ (BoS draft).V.8.27, 14. Attachment G - Detailed Discussion, 15. Attachment H - Planning Commission Resolution - June 12, 2024, 16. Attachment I – Planning Commission Public Comments – June 12, 2024, 17. Attachment J - Financing, 18. Item No. 13 PP, 19. Completed Board Order Item No. 13, 20. Ordinance No. 5422, 21. Completed Resolution Item No. 13 - Resolution of Intent to Adopt Title 20, 22. Completed Resolution Item No. 13 - Amending HCD's artice in the Master Fee Resolution, 23. Completed Resolution Item No. 13 - Amending Board Resolution 01-485, 24. Completed Resolution Item No. 13 - Certifying the FEIR for the Vacation Rental Ordinances Project, 25. REVISED Ordinance No. 5422, 26. REVISED Completed Board Order Item No. 13

Title

Public Hearing to consider:

a. Introducing, waiving reading, and setting September 10, 2024 at 10:30 a.m. as the date and time to consider adoption of an ordinance amending Section 7.02.060 of the Monterey County Code (MCC) and adding a new Chapter 7.120 to require a business license and a vacation rental operation license for any short-term vacation rental operations in the unincorporated Monterey County;

b. Adopting a resolution of intent to adopt an ordinance that amends numerous definition and zoning district use sections of Title 20 (Coastal Zoning Ordinance) and adds Section 20.64.290 to the MCC to regulate the short-term vacation rental of residential property;

c. Adopting an ordinance amending Title 21 (Non-coastal Zoning Ordinance) to amend numerous definition and zoning district use sections of Title 21, to repeal and replace Section 21.64.280 of the MCC, and adds Section 21.64.290 to regulate the short-term vacation rental of residential property;

d. Amending Board of Supervisors Resolution No. 01-485 to add item 14 “to the list of compatible uses within Agricultural Preserves” and add item 15 “to the list of compatible uses within Farmland Security Zones,”; and

e. Adopting a resolution amending the Monterey County Fee Resolution to Fee Article IX - Land Use to add a new “Each” fee for a Vacation Rental Operation License, which will be established at $965.

 

Project Title: REF 100042 & REF 130043 - Vacation Rental Ordinances

Proposed Location: Countywide

Proposed California Environmental Quality Act (CEQA) action:

a. Finding the Vacation Rental Ordinances consistent with the Final Environmental Impact Report (Final EIR) and certify the Final EIR for the amendments to the MCC (SCH # 2022080643); and

b. Finding the establishment of a license fee statutorily exempt from CEQA pursuant to Section 15273 of the CEQA Guidelines.

Report

RECOMMENDATION:

It is recommended that the Board of Supervisors:

a. Find the Vacation Rental Ordinances consistent with the Final Environmental Impact Report (Final EIR) and certify the Final EIR for the amendments to the Monterey County Code (MCC) and that the Final EIR was prepared in compliance with the California Environmental Quality Act (CEQA);

b. Find that establishment of license fees is statutorily exempt from CEQA pursuant to Section 15273 of the CEQA Guidelines as the establishment of the Vacation Rental Operation License fee will assist County of Monterey Housing and Community Development in meeting operation expenses;

c. Introduce, waive first reading, and set September 10, 2024 at 10:30 a.m. as the date and time to consider adoption of an ordinance amending Section 7.02.060 of the MCC and adding a new Chapter 7.120 to require a business license and a vacation rental operation license for any short-term vacation rental operations in the unincorporated Monterey County;

d. Adopt a resolution of intent to adopt an ordinance that amends numerous definition and zoning district use sections of Title 20 (Coastal Zoning Ordinance) and adds Section 20.64.290 to the MCC to regulate the short-term vacation rental of residential property;

e. Adopt an ordinance amending Title 21 (Non-coastal Zoning Ordinance) to amend numerous definition and zoning district use sections of Title 21, to repeal and replace Section 21.64.280 of the MCC, and adds Section 21.64.290 to regulate the short-term vacation rental of residential property;

f. Amend Board of Supervisors Resolution No. 01-485 to add item 14 “to the list of compatible uses within Agricultural Preserves” and add item 15 “to the list of compatible uses within Farmland Security Zones,”; and

g. Adopt a resolution amending the Monterey County Fee Resolution to Fee Article IX - Land Use to add a new “Each” fee for a Vacation Rental Operation License, which will be established at $965.

 

SUMMARY:

Today, staff presents for Board consideration, the Final EIR for the Vacation Rental Ordinances Project (available at: <https://acrobat.adobe.com/id/urn:aaid:sc:VA6C2:15004135-cce5-4ddd-a19e-1ba63272be56>), draft ordinances establishing regulations for vacation rentals in the unincorporated areas of the County, a draft resolution certifying the FEIR (Attachment A), a draft resolution (Attachment B) creating a new fee for the Vacation Rental Operation License, and a draft resolution of intent (Attachment C) adopting Title 20.

 

The draft ordinances would amend Monterey County Code (MCC) to establish updated regulations applicable to vacation rentals (or “short-term rentals”) in the unincorporated areas of Monterey County. Updated regulations include a new chapter that requires all vacation rental operators obtain a Vacation Rental Operation License annually, and establish criteria for review of such licenses (Attachment E); updating regulations to require that all Vacation Rentals and all existing hotel operators obtain a business license from the County of Monterey Treasurer-Tax Collector (Attachment E); adding zoning regulations applicable to vacation rentals in the coastal unincorporated areas of Monterey County (Attachment C - Attachment A), and amending zoning regulations applicable to vacation rentals in the inland unincorporated areas of Monterey County (Attachment F). It is proposed that the Board adopt a “resolution of intent” to adopt the coastal zoning regulations because this ordinance is subject to review and certification by the California Coastal Commission (CCC) (Attachment C). The Board will need to take a formal action to adopt the coastal zoning regulations following action by the CCC.

 

The proposed regulations define a Vacation Rental as the use 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 for a period of 30 consecutive calendar days or fewer, counting portions of calendar days as full days.

 

The proposed regulations define three different types of Vacation Rentals; Commercial Vacation Rentals, Limited Vacation Rentals, and Homestays. Commercial Vacation Rentals are those Vacation Rentals that are not hosted and rented more than three times in a twelve-month period. Limited Vacation Rentals are those Vacation Rentals that are not hosted and are rented three or fewer times per twelve-month period. Homestays are those Vacation Rentals in which the Owner or principal resident occupies at least one Bedroom in the Vacation Rental while it is being rented and it is the Owner’s Primary Residence. The zoning regulations would require discretionary permitting of Commercial Vacation Rentals. Limited Vacation Rentals and Homestays would be a use allowed. All three types of vacation rentals would require an annual Vacation Rental Operator License.

 

The draft zoning ordinances (coastal and inland) reflect the recommendation of the Planning Commission. On June 12, 2024, the Planning Commission passed a motion by a vote of 10 in favor and 0 against to adopt a resolution recommending the Board approve the proposed ordinances (Attachment H).

 

Housing and Community Development (HCD) proposes a new fee of $965 that will be collected for each new Vacation Rental Operation License application in accordance with the requirements of Chapter 7.120 (Attachment E). A draft resolution for the adoption of the new fee can be found in Attachment B to this report. This newly established fee will be required for Homestays, Limited Vacation Rentals, and Commercial Vacation Rentals. This fee is based on the estimated staff time to process and perform administrative enforcement of the newly established Vacation Rental Operation License and meet the requirements established in Chapter 7.120. The proposed fee articles in redline (Attachment B - Attachment A) and clean (Attachment B - Attachment B) are included.

 

An Environmental Impact Report (EIR) has been prepared for this project pursuant to the requirements of the California Environmental Quality Act (CEQA). A Draft EIR was circulated for public comment from December 11, 2023, to January 29, 2024. Comments received on the Draft EIR were reviewed and responses to the comments are contained in the Final EIR. The Draft EIR, together with the Final EIR, constitute the EIR for this project, and the Board is asked to certify the EIR before taking action on the ordinances and resolutions. The resolution certifying the EIR is included as Attachment A. The EIR identifies that the Project would not have a significant effect on the environment. The link to the Final EIR is <https://acrobat.adobe.com/id/urn:aaid:sc:VA6C2:15004135-cce5-4ddd-a19e-1ba63272be56>. Consideration of the adoption of fees for the permits required by the project was not part of the EIR. Adoption of fees for permitting is statutorily exempt from CEQA review.

 

The action today also includes a proposed amendment to allow Vacation Rentals on properties under Williamson Act contracts. This requires a resolution amending Board Resolution No. 01-485 (Attachment D), which adds Vacation Rentals to the list of Williamson Act Compatible Uses list. The proposed Compatible Uses language would allow Vacation Rentals within single family dwellings on Williamson Act lands subject to their being an active agricultural operation, the property manager, owner, or operator concurrently residing on the property during the rental period, and the rental period is for fewer than 30 days.

 

Additionally, staff presents the final draft ordinances to the Board for final adoption, inclusive of the Commission's recommendations, proposed policy options, and input provided to staff. The draft ordinances are inclusive of the Commission’s recommendations (Attachment C - Attachment A, Attachments E and F). The adopted Commission resolution memorializes the Commission’s recommendation (Attachment H).

 

DISCUSSION:

To read the full background for the policy, please refer to the Detailed Discussion included as Attachment G.

 

The County of Monterey began policy outreach and the process of drafting ordinances pursuant to Vacation Rentals (also known as short-term rentals for overnight accommodations) in 2014. This process resulted in significant public input as well as comments and direction from the Board, the Commission, the LUACs, and AAC. The draft ordinances amending Title 7 (Vacation Rental Operation License and Business License), Title 20 (Coastal Zoning), and Title 21 (Inland Zoning) reflect these comments and input.

 

Vacation Rental Ordinances Procedural Process

Due to the Vacation Rental Ordinances amending various Titles in the MCC, including Titles 7, 20, and 21, as well as establishing a new fee and submitting a resolution of intent to the Coastal Commission staff has outlined below, the procedural timeline for each of the Vacation Rental Ordinances.

 

Title 7:

o                     August 27, 2024 - Introduce, waive the first reading, and set September 10, 2024 at 10:30 a.m., as the date to adopt the ordinance amending Title 7.

o                     September 10, 2024 - Consideration of adoption on consent of the ordinance amending Title 7.

o                     October 11, 2024 - Effective Date - Thirty-first day following adoption.

o                     October 14, 2024 - Operative Date - The date the ordinance amending Title 7 of the MCC goes into effect. Amendments to Title 7 and Title 21 become operative on the same date.

 

Title 20:

o                     August 27, 2024 - Adopt a resolution of intent to adopt an ordinance amending Title 20.

o                     Subsequent to August 27, 2024:

§                     August 30, 2024 - County of Monterey - Submit ordinance amending Title 20 to the Coastal Commission;

§                     TBD - Coastal Commission takes action, may certify, and may suggest modifications;

§                     TBD - Board of Supervisors formal adoption at a duly noticed public hearing;

§                     TBD - Coastal Commission final certification; and

§                     TBD - Effective Date - Thirty-first day following adoption.

 

Title 21:

o                     August 27, 2024 - Adopt an ordinance amending Title 21.

o                     September 27, 2024 - Effective Date - Thirty-first day following adoption.

o                     October 14, 2024 - Operative Date - The date the ordinance amending Title 21 goes into effect. Amendments to Title 7 and Title 21 become operative on the same day.

 

Unpermitted Vacation Rentals:

Inland Area:

April 25, 2025 - Must make an application for all required licenses, permits, certifications, or other entitlements to the HCD. All operations that would not be allowed pursuant to Title 7 and Title 21 amendments must cease operating. Previously permitted operations must cease operating at the time of the expiration of their permit or entitlement or within seven years of the Operative Date (Title 21).

 

Coastal Zone:

Within two months of the Effective Date - Must make an application for all required licenses, permits, certifications, or other entitlements to the HCD. All operations that would not be allowed pursuant to the amendments to Title 7 and Title 20 must cease operating, excluding previously permitted operations. Previously permitted operations must cease operating at the time of the expiration of their permit or entitlement or within seven years of the Effective Date (Title 20).

 

Draft Ordinances

The key features of the draft ordinances are included below:

                     Definition of Non-hosted: is a Vacation Rental where the operator does not occupy the Vacation Rental while it is being rented.

 

                     Three types of Vacation Rentals:

o                     Commercial Vacation Rentals:

§                     Definition: Rented as a Non-hosted Vacation Rental for more than three times per 12-month period.

§                     Limitation on the number of Commercial Vacation Rentals per Planning Area.

§                     Required Licenses and Permits:

                     Use Permit or Coastal Development Permit issued by HCD (Section 21.64.290 or 20.64.290), which may be renewed every seven years;

                     Vacation Rental Operation License issued ministerially by HCD (Chapter 7.120), which may be renewed every year;

                     Transient Occupancy Tax Certificate issued by the Treasurer-Tax Collector (Chapter 5.40); and

                     Business License issued by the Treasurer-Tax Collector (Section 7.02.060.C), which may be renewed every year.

§                     Additional Regulatory Requirements for Commercial Vacation Rentals:

                     Compliance with Chapter 16.80 (Regulations Relating to Applications Involving Use of Private Roads).

                     Compliance with the parking requirements in Sub-Sections 20.58.040 and 21.58.040 (Regulations for Parking).

                     Verification that the septic system is in good working order and functioning properly and in compliance with Chapter 15.20 (Sewage Disposal).

                     Verification of adequate response time for fire and emergency services.

                     Limitation of one Commercial Vacation Rental per legal lot of record, excluding Commercial Zoning Districts.

 

o                     Limited Vacation Rentals:

§                     Definition: Rented as a Non-hosted Vacation Rental not more than three times per 12-month period.

§                     Required Licenses and Permits:

                     Vacation Rental Operation License issued ministerially by HCD (Chapter 7.120);

                     Transient Occupancy Tax Certificate issued by the Treasurer-Tax Collector (Chapter 5.40); and

                     Business License issued by the Treasurer-Tax Collector (Section 7.02.060.C).

o                     Homestay:

§                     Definition: Rented as a Vacation Rental while the Owner occupies at least one Bedroom within the Vacation Rental.

§                     The Vacation Rental must be the Owner’s Primary Residence. Owner’s Primary Residence requires the Owner to live in the Residential Property for at least 183 days per calendar year and provide the County with at least two of the following items of documentation, such as a motor vehicle registration, voter registration, homeowner’s exemption on their property taxes, or a utility bill as proof.

§                     Required Licenses and Permits:

                     Vacation Rental Operation License issued ministerially by HCD (Chapter 7.120);

                     Transient Occupancy Tax Certificate issued by the Treasurer-Tax Collector (Chapter 5.40); and

                     Business License issued by the Treasurer-Tax Collector (Section 7.02.060.C).

 

                     Regulations for All Vacation Rentals:

o                     Maximum overnight occupancy of two per bedroom plus one and not counting infants (0 - 12 months) and not-to-exceed ten total occupants;

o                     Maximum daytime occupancy of 1.5 times the overnight occupancy and not to exceed 15;

o                     Allowable in specific Zoning Districts;

o                     One rental contract at a time per Vacation Rental;

o                     Only allowed in single family dwellings;

o                     Not allowed in temporary structures;

o                     If the parcel has active agricultural operations, the property manager, operator, or owner is required to reside onsite;

o                     Property manager is available at all times of the day to arrive on site within 30 minutes to respond to complaints;

o                     Prohibition on outdoor fire areas;

o                     Informational letter to neighboring properties within a 300-foot radius;

o                     Provision to provide the following documents to the HCD:

§                     Operation plan;

§                     Site plan;

§                     Floor plan; and

§                     Home inspection by certified home inspector.

o                     Requirement to notify the Vacation Rental occupants of:

§                     Emergency response numbers;

§                     Quiet hours;

§                     Map of evacuation routes; and

§                     Contact information for the property manager or operator.

o                     Required to comply with MCC Chapters:

§                     8.36 (Nuisance and Nuisance Animals);

§                     10.41 (Solid Waste Collection and Disposal);

§                     10.60 (Noise Control); and

§                     15.04 (Domestic Water Systems).

o                     Enforcement requirements that include both fines and penalties;

o                     Enforcement that each violation will be a separate and unique violation that will incur separate penalties;

o                     Requirements for the hosting platforms (such as VRBO or Airbnb) to ensure that they are not listing unpermitted Vacation Rentals in the County and notification process that they must remove any listing that the County finds to be unpermitted; and

o                     A process and timeline for phasing out unpermitted operations and requiring existing permitted operations to comply with the new regulations.

 

On June 12, 2024, the Planning Commission held a noticed public hearing on the draft ordinances and recommended that the Board certify the Final EIR and adopt the Vacation Rental Ordinances with recommended modifications and consideration of additional policy options to be researched by staff (Attachment H). The public comments submitted at the June 12, 2024 Commission have been included as Attachment I. The following is a summary of the Commission’s recommendations and requests and how staff has addressed them:

 

                     The Commission recommended that staff make the following revisions to the draft ordinances that are before the Board for consideration.

 

o                     Amendments throughout Title 7, 20, and 21 to include:

§                     Clarifying the allowability of renting guesthouses as part of a Vacation Rental.

§                     Supported adding regulations for Homestays as a separate Vacation Rental type.

§                     Supported updating maximum occupancy limitations to not count infants (0 - 12 months) and allow a plus one occupant per Vacation Rental while ensuring that the occupancy limitations do not violate building and safety code requirements and County of Monterey Health Department Environmental Health Bureau regulations.

 

o                     Amend Title 7 to include:

§                     Clarifying edit to the purpose of preserving a sense of neighborhood security and safety.

§                     Clarify the requirements to post the advertised rental rate.

 

o                     Amend Title 20 to include:

§                     A prohibition on Commercial Vacation Rentals in residential zoning districts in the Moss Landing Community Plan Area due to the small number of housing units in this area.

 

                     The Commission additionally requested that staff research and prepare options for Board consideration on the following topics:

o                     Allowing Vacation Rentals to post outdoor signs to allow visitors and neighbors to easily locate Vacation Rentals.

o                     Limiting the number of Commercial Vacation Rentals that a single Owner can have at any time.

o                     Prohibiting the operation of Vacation Rentals of investor-owned properties.

o                     Allowing the County to fine hosting platforms that do not comply with the draft ordinances.

o                     Increasing the maximum fines for violations.

o                     Reducing the date that previously operating Vacation Rentals would be required to come into compliance with the Title 20 (Coastal Zoning) Ordinance to account for additional time needed for Coastal Commission certification.

o                     Researching approaches to streamline the Homestay permit process and reduce fees. 

 

Code Enforcement and Compliance

The rollout of new regulations for Vacation Rentals will be accompanied by a proposed Enforcement Program that HCD has developed for Board consideration. This Enforcement Program will consist of multiple phases and will begin with HCD developing a Vacation Rental landing page posted before October 14, 2024 (Titles 7 and 21 operative dates). This landing page will be the central location for all information related to Vacation Rentals in the unincorporated Monterey County. HCD also plans to utilize a third-party compliance tools/services to assist HCD with enforcement. HCD will return to the Board at a future date with a contract for third-party compliance tools/services.

 

The Code Compliance program will be rolled out in three operational phases. Phase 1 will consist of an initial code compliance program focusing on outreach and education to Vacation Rental owners, operators, associations, and the general public. HCD will conduct this outreach to include the steps and timelines required to comply with the new regulations and phase out unpermitted operations. Phase 2 will begin once all unpermitted Vacation Rentals are required to make an application for the appropriate licenses and/or permits, which will be six months after October 14, 2024, in the Inland Area and two months after the effective date in the Coastal Zone. Applicants for the appropriate licenses and/or permits may continue to operate until the County takes action on the application. If the applicant does not diligently pursue all appropriate licenses and/or permits, the County can require the applicant terminate operation of their Vacation Rental. Phase 2 will have HCD pursue enforcement against the operators who continue to operate illegally. Finally, Phase 3 will begin once the initial unpermitted operations have ceased. Phase 3 will consist of ongoing monitoring and enforcement, which would entail code compliance staff continuing its enforcement actions on any new unpermitted operations and responding to nuisance complaints or operations occurring outside of the permit or license requirements. Additional details on the Code Enforcement and Compliance Program can be found in the Detailed Discussion - Attachment G

 

Article IX - Land Use

The fees included in Article IX - Land Use of the County’s Master Fee Resolution relate to HCD-Planning Services. The update to Article IX consists of establishing a new fee, which is the Vacation Rental Operation License, which is an “Each” fee, meaning that each Vacation Rental Operation License will cost an applicant $965, not including other reviewing departments or other fees charged as a percentage of the overall application. This fee is based on the estimation that it will take five Planning staff hours and one Front Counter Processing hour to process the Vacation Rental Operation License. Staff will expect to return to the Board within a year to adjust the fee as necessary and potentially establish separate fee(s) for the yearly renewal of the Vacation Rental Operation License. Reviewing departments will assess additional fees to recover costs associated with staff review of the application materials. The EHB fee will be a Type 1 Compliance Review fee, set at $301, which will be added to the cost of the Vacation Rental Operation License fee of $965.

 

Fees for Commercial Vacation Rentals will also include Use Permit or Coastal Development Permit fees, which will not require an amendment to Article IX - Land Use. The existing fee for a Use Permit (Inland Area) is a Tier 4 fee set at $5,500, and Coastal Development Permit (Coastal Zone) is a Tier 6 fee set at $11,000. Adopted fees for Use Permit and Coastal Development Permit application will also be applicable for each reviewing department.

 

Staff’s research and detailed response is located in the Detailed Discussion - Attachment G.

 

CEQA

The County prepared an Environmental Impact Report (EIR) in conjunction with consideration of the Vacation Rental Ordinances (Project). Following Section 21000 et seq. of the Public Resources Code, the County determined that an EIR would be appropriate. The County prepared a NOP and IS to solicit public and agency comments on the scope of the EIR analysis. The County prepared a Draft EIR and a Final EIR, including responses to comments received on the Draft EIR. The Final EIR includes clarifications, corrections, and revisions in response to comments received on the Draft EIR. The EIR did not identify significant and unavoidable impacts, and in accordance with CEQA, the County has considered the effects of the Project on the environment. Following Public Resources Code sections 21081, 21081.5, and 21081.6 and in accordance with CEQA and CEQA guidelines, the County determined that no Findings of Fact is required because no impacts were identified with the implementation of the proposed regulations. Today, the Final EIR is before the Board for consideration and certification. Staff has included a resolution (Attachment A) for the Board to certify the adoption of the EIR. See the Final EIR at this link: <https://acrobat.adobe.com/id/urn:aaid:sc:VA6C2:3506b1aa-df4c-4f0b-af4d-df753d17f56b> as well as the discussion contained in Attachment G.

 

Additionally, the establishment of the Vacation Rental Operation License fee is statutorily exempt from CEQA pursuant to Section 15273 of the CEQA Guidelines as the establishment of the Vacation Rental Operation License fee will assist County of Monterey Housing and Community Development in meeting operation expenses.

 

OTHER AGENCY INVOLVEMENT

HCD staff worked in collaboration with the Treasurer-Tax Collector and Environmental Health Bureau to develop the proposed ordinances and with the Office of County Counsel to review as to form. For more detailed discussion and background related to other agency involvement, please refer to the Detailed Discussion included as Attachment G.

 

The Agricultural Advisory Committee (AAC) considered draft ordinances and recommended adding Vacation Rentals to the list of compatible uses on Williamson Act Contract land at its April 25, 2024 meeting. The AAC passed a motion of 6-2 recommending that staff bring an amended list of Compatible Uses as required under the Williamson Act to add Vacation Rentals within a single family dwelling to the Planning Commission. One AAC member expressed concern that the requirement that the Owner must live on the site if there is an active agricultural operation could limit Vacation Rentals on agricultural land. The majority of Committee members supported the aforementioned requirement.  

 

At a Planning Commission hearing on May 29, 2024 and June 12, 2024, the Commission considered the Vacation Rental Ordinances and unanimously recommended that the Board certify the Final EIR and approve the regulatory changes for vacation rentals. The Commission's recommendation included a request that staff modify the draft ordinances, including the Commission’s recommendations. Additionally, the Commission requested that staff research and propose various options for the Board’s consideration.

 

FINANCING:

Included as Attachment J.

 

BOARD OF SUPERVISORS STRATEGIC INITIATIVES:

The adoption of Vacation Rental Ordinances supports the Board of Supervisors’ Strategic Initiatives for Economic Development in that it strengthens the tourism industry of Monterey County by establishing a regulatory process for Vacation Rentals in unincorporated Monterey County. Adoption of the Vacation Rental Ordinances supports the Board of Supervisors’ Strategic Initiatives for Administration by promoting efficient and standardized processes for regulating and permitting Vacation Rentals. Adoption of the Vacation Rental Ordinances further supports the Board of Supervisors’ Strategic Initiatives for Administration by promoting fiscal responsibility and efficient, effective County operations while offering excellent customer service for the public with the adoption of the Vacation Rental Operation License fee. Adoption of the Vacation Rental Ordinances supports the Board of Supervisors’ Health and Human Services and Public Safety Strategic Initiatives by providing regulatory standards for the safe operation of Vacation Rentals and enforcement actions against Vacation Rentals that threaten public health and safety as well as violate the Vacation Rental Ordinances.

 

 X  Economic Development:

                     Through collaboration, strengthen economic development to ensure a diversified and healthy economy.

 X  Administration:

                     Promote an organization that practices efficient and effective resource management and is recognized for responsiveness, strong customer service, accountability and transparency.

 X  Health and Human Services:

                     Improve health and quality of life through County supported policies, programs, and services; promoting access to equitable opportunities for healthy choices and health environments in collaboration with communities.

___ Infrastructure:

                     Plan and develop a sustainable, physical infrastructure that improves the quality of life for County residents and supports economic development results.

 X  Public Safety:

                     Create a safe environment for people to achieve their potential, leading businesses and communities to thrive and grow by reducing violent crimes as well as crimes in general.

 

Prepared by: Taylor Price, Associate Planner, 831-784-5730

Reviewed by: Melanie Beretti, AICP, Acting Chief of Planning, 831-755-5285

Approved by: Craig Spencer, HCD Director 

 

The following attachments are on file with the Clerk of the Board:

Attachment A - Draft Resolution Certifying the FEIR for the Vacation Rental Ordinances Project

Attachment A - Attachment A - Monterey County VRO Findings of Fact Document

Attachment B - Draft Resolution Amending HCD’s article in the Master Fee Resolution

Attachment B - Attachment A - Proposed Fee Articles Red Line

Attachment B - Attachment B - Proposed Fee Articles Clean

Attachment C - Draft Resolution of Intent to Adopt Title 20

Attachment C - Attachment A - Draft Title 20 Ordinance with Redline Options

Amendment D - Draft Resolution Amending Board Resolution 01-485

Amendment D - Attachment A - Amending Procedures for Agricultural Preserves

Amendment D - Attachment B - Amending Procedures within Farmland Security Zones

Attachment E - Draft Title 7 Ordinance with Redline Options

Attachment F - Draft Title 21 Ordinance with Redline Options

Attachment G - Detailed Discussion

Attachment H - Planning Commission Resolution - June 12, 2024

Attachment I - Planning Commission Public Comments - June 12, 2024

Attachment J - Financing

 

cc: Front Counter Copy; Planning Commission; REF 100042 & REF 130043 Public Distribution List; County of Monterey Treasurer-Tax Collector; Monterey County Regional Fire; County of Monterey Health Department Environmental Health Bureau; Coastal Commission; Monterey County Land Watch; Keep Big Sur Wild; Liz Gonzales, Permit Center Manager; Anna Quenga, Principal Planner - Current Planning; Karen Riley-Olms, Management Analyst II; Josh Bowling, Chief of Building Services; Evan Nuckles, HCD Building Services Manager; Melanie Beretti, Acting Chief of Planning; Craig Spencer, HCD Director