Title
Planning and Building Department, Tahoe Planning and Building Division, recommending the Board:
1) Approve the Introduction (First Reading) of Ordinance 5209 amending Title 5 - County Business Taxes, Licenses and Regulations of the El Dorado County Ordinance Code, amending Chapter 5.56 - Vacation Home Rentals, to add the recommendations of the Vacation Home Rental Advisory Committee and Board of Supervisors; and
2) Waive reading the full Ordinance, read by title only, and continue this matter to September 24, 2024, for Final Passage (Second Reading).
FUNDING: N/A
Body
DISCUSSION / BACKGROUND
On May 14, 2024 (File No. 24-0567), the Board directed staff to return to the Board with revised Ordinance language and program adjustments to add the suggested amendments from the Vacation Home Rental (VHR) Advisory Committee (AC). The suggested amendments included:
1. Modify the hosted rental requirements by requiring a permit;
2. Create a dedicated VHR Enforcement unit;
3. Develop a centrally managed complaint tracking and response system;
4. Enhance illegal rental enforcement;
5. Strengthen compliance standards, e.g. noise, occupancy, parking etc;
6. Require compliance with the County’s Vegetation Management Ordinance;
7. Increase fine amounts per Senate Bill 60;
8. Include additional permit suspension options; and
9. Modify Local Contact requirements.
To this end, staff has updated Ordinance Chapter 5.56 - Vacation Home Rentals to include these recommendations and add clarifying Ordinance language.
The VHR Program has been amended to include a dedicated VHR Enforcement unit. This unit includes a supervisor and three employees funded out of the County’s Discretionary Transient Occupancy Tax (DTOT) fund. Two employees and the supervisor are stationed full-time in the South Lake Tahoe Office and the other employee is stationed in the Placerville office and focuses on both ranch marketing and VHR enforcement. One of the Tahoe officers also focuses on traditional code enforcement cases.
The VHR Enforcement unit has implemented a new dedicated complaint hotline and email address. The hotline and email are monitored by staff and all calls/emails are responded to in a timely fashion. Site visits are conducted, and violations are posted on the property when appropriate. Since July 1, 2024 there have been almost 100 VHR related calls, 13 ranch marketing calls and over 60 VHR email complaints from the public to Code Enforcement. Staff has responded to all calls and emails.
Illegal vacation home rentals have been the focus of the VHR Enforcement unit County-wide. The unit has developed and implemented a physical posting for unpermitted sites. The posting, printed on red paper, notifies the renters of the unpermitted and uninspected status of the structure. To note, the first posting at an unpermitted rental house resulted in a call to the VHR Enforcement hotline within a half hour.
The changes proposed to the VHR Ordinance clarify the standards for owners operating VHRs, increase penalties on owners, and streamline the code enforcement process. Occupancy requirements have been revised to only allow two guests per bedroom, eliminating the plus-two allowance. The Noise definition has been clarified to be enforceable for any noise heard at the property line. The prohibition on events during a rental period has been clarified. New language has been added to the Ordinance to state that properties operating under the County’s Ranch Marketing Ordinance cannot obtain a VHR permit. On-site parking standards have been clarified to enable Code Enforcement officers to enforce on-site parking requirements. Finally, new snow removal requirements have been included to ensure residences maintain egress during snow events.
Staff has not included a change to the clustering requirement or the 900-permit cap. Staff did not adjust the cap from 900 to 600 per the AC recommendation because the Board of Supervisors did not provide clear direction on this issue at the May 14, 2024 meeting. During the time of that meeting, there were 805 active permits in the Tahoe Basin. As of August 27, 2024 there are 798 active permits. It is staffs’ opinion that the 500-foot anti-clustering provision within the Ordinance is working as intended to reduce active permits in the Tahoe Basin and to spread out VHRs. Because we are below the 900-permit cap, being on the waitlist for a permit is only required if a site is within a 500-foot buffer of an active permit. This is consistent county-wide.
Other changes proposed in this update include clarifying language related to safety, code enforcement actions, and signage. Proposed updates for safety include prohibiting the use of solid fuel (wood and briquettes) burning County-wide and requiring compliance with the County’s Vegetation Management Ordinance. Enforcement actions were updated to include increased fine amounts per Senate Bill 60. Signage requirements are updated to include a County-issued external sign, a County-issued permit with conditions (Attachment D) and a County-issued pamphlet entitled Visiting Guest Guidelines (Attachment E). Currently, external signs have continued to be hard to find, hard to read and hard to maintain. The County-issued signs will be of a consistent size and color and, where bear resistant garbage containers are required, magnets will be required to be on the container. Hosted rentals will also be required to post the County-issued exterior sign. The pamphlet must be located adjacent to the front door. The pamphlet includes emergency numbers and websites (911, the perimeter map website, and the Sheriffs website), guidelines for being a good visitor and tips for vacationing like a local.
Hosted Vacation Home Rentals are also now built into the VHR Ordinance. Historically, the Treasurer-Tax Collectors office has issued Business Licenses and Certificates of Transient Occupancy tax for hosted rentals. However, the Treasurer-Tax Collectors office and Code Enforcement unit have documented a high rate of noncompliance with hosted rentals. Most often these rentals are cited for failure to have a homeowner onsite during the rental period. Currently applicants must declare they are hosted but no other documentation is required. The new VHR Ordinance includes many of the same requirements that regular VHRs have. The biggest difference between the two is the host of the rental can be either a long-term renter or the owner and the host must be onsite at all times during the rental period. Staff will be confirming that the rental is the host’s primary residence. Only one hosted rental permit will be issued for each host.
The Department is requesting to add 1.0 FTE Code Enforcement Manager allocation and 1.0 FTE Code Enforcement Officer in the Code Enforcement Division with the Adopted Budget. Both allocations are necessary to provide adequate management and authority over the entire Code Enforcement Division and provide the required resources to expand staffing hours to include evenings, weekends, and holidays per Board direction. The Code Enforcement Officer allocation will be located in the South Lake Tahoe office and will focus on VHR enforcement.
PRIOR BOARD ACTION
See Discussion/Background above.
ALTERNATIVES
The Board could choose to retain the current ordinance, direct staff to bring alternate ordinance language back to the Board or make additional recommendations.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Treasurer-Tax Collector, Chief Administrative Office, County Counsel, Surveyor, Sheriff's Office, County Fire Departments
CAO RECOMMENDATION
Approve as recommended.
FINANCIAL IMPACT
No immediate financial impacts are associated with this item, and there is no change to the Net County Cost. If the Board approves the addition of the Code Enforcement Manager and Officer with the Adopted Budget, it will cost approximately $320,000 and will be offset by salary savings and increased Fine revenue. The Board has previously committed to contributing Transient Occupancy Tax (TOT) revenue to offset some staffing costs for the VHR Program. If additional staffing requirements or resource needs arise for the VHR Program in the future, staff will return to the Board with a request.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) Obtain the Chair’s signature on the Ordinance Summary and publish in the appropriate local newspaper(s) no less than 5 days prior to Final Passage (Second Reading).
2) Publish the Summary Ordinance to include the final Board vote within 15 days after Final Passage.
3) Obtain signatures on original copy of the Ordinance and send one (1) fully executed copy of the Ordinance to Planning and Building Department, Attn: Brendan Ferry.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Brendan Ferry, Deputy Director
Planning and Building Department