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2020-02-04 CC Agenda - Additional Information related to Item #C4 - Draft OrdinanceDRAFT ORDINANCE NO. AN ORDINANCE OF THE CITY OF EL SEGUNDO AMENDING TITLE 4 (BUSINSESS REGULATIONSAND LICENSING) OF THE EL SEGUNDO MUNICIPAL CODE BY ADDING A NEW CHAPTER ESTABLISHING REGULATIONS FOR SHORT TERM RENTALS, AND AMENDING TITLE 15 (ZONING REGULATIONS) OF THE EL SEGUNDO MUNICIPAL CODE ALLOWING THE OPERATION OF SHORT TERM RENTALS IN THE CITY'S RESIDENTIAL ZONES THROUGH A SHORT-TERM RENTAL UNIT PERMIT PROCESS. The City Council of the City of EI Segundo does ordain as follows: SECTION 1: The City Council finds and declares as follows: A. Due to the City's close proximity to the Los Angeles International airport, its close proximity to beaches and other Southern California attractions and tourist destinations, and it being home to a significant number of Fortune 500 companies, the City of EI Segundo has become a popular location for alternative short-term lodging; B. The rental of private homes on a short-term basis to visitors provides a community benefit by expanding the number and type of lodging facilities available and assists owners of homes by providing revenue which may be used for maintenance and upgrades to these units; C. The rental of private homes by owners for temporary occupancy has also been identified as a community concern, due to the potential for increased traffic, noise, and density in single family residential neighborhoods if these uses are not properly regulated; D. Problems with short-term lodgings are particularly acute in the Residential zones where the peace, safety and general welfare of the long term residents are threatened; E. An effective way to minimize the problems associated with short-term units is to allow short-term rentals through a permit process with restrictions and operational regulations; F. To allow the City to more accurately gauge the relative advantages and disadvantages of allowing short-term rentals in Residential zones without committing to their permanence, this Ordinance establishes a limited Pilot program that will automatically sunset on June 30, 2021; G. On June 27, 2019, the EI Segundo Planning Commission held a noticed public hearing to receive public testimony and other evidence regarding the proposed Page 1 ordinance, including information provided by city staff; and, adopted Resolution No. 2852 recommending that the City Council approve the proposed amendments; H. On November 19, 2019, the EI Segundo City Council held a public hearing and considered the information provided by City staff and public testimony regarding this Ordinance; I. On November 19, 2019, City Council directed Staff to amend the proposed Ordinance and return with additional information for consideration by City Council; J. On February 4, 2020, City Council continued its discussion on the proposed Ordinance and considered the information provided by City staff; and, K. This Ordinance and its findings are made based upon the entire administrative record including testimony and evidence presented to City Council at its November 19, 2019 and February 4, 2020 public hearings and the staff reports submitted by the Planning and Building Safety Department. SECTION 2: Environmental Assessment. Pursuant to the provisions of the California Environmental Quality Act, Public Resources Code Sections 21000 et. seq. ("CEQA"), the State's CEQA Guidelines, California Code of Regulation, Title 14, Section 15000 et. seq., Staff found no evidence that EA -1180 and ZTA 17-01 would have a significant effect on the environment and, therefore, the proposed Zone Text Amendment has been found to be categorically exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to 14 California Code of Regulations § 15308 (Class 8) since the amendment would "assure the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for the protection of the environment", and the Amendment consists of establishing regulations and procedures for renting existing residential units on a short term basis. The proposed Ordinance is an action that does not have the potential to cause significant effects on the environment, but rather will help reduce the impact of short term rentals in the City's Residential zones. Consequently, no further environmental review is required. SECTION 3: General Plan Findings. Considering all of its aspects, the ESMC amendments proposed by the Ordinance will further the goals, objectives and policies of the General Plan and not obstruct their attainment. More specifically: A. The amendment conforms to the Land Use Element Goals, Objectives and Policies. Specifically, the amendment is consistent with Goal LU 1, Objective LU 1- 1, Goal LU3, in that the amendment ensures the preservation, protection and extension of existing residential uses; and promotes the health, safety, and wellbeing of the people of EI Segundo by adopting standards for the proper balance, relationship, and distribution of the residential land uses at all times in accordance with applicable law. B. The proposed text amendment to the Permitted Uses section in each of the City's Residential Zones conforms to the General Plan. The proposed changes do not Page 2 modify or increase the maximum density of dwelling units per acre currently allowed in the Residential Land Use designation. As a result, the proposed Zone Text Amendment conforms to the Land Use Element of the General Plan. C. The text amendment complies with Objective LU 1-5.6 in that the changes to the existing language will allow short-term rentals through a short-term rental unit permit requirement. D. The text amendment is consistent with the Residential Land Use designation in that the proposed changes do not modify or increase the maximum density of dwelling units per acre currently allowed by the Residential zoning designations. SECTION 4: Zone Text Amendment Findings. In accordance with ESMC § 15-26-4 the City Council finds as follows: A. The proposed project is consistent with the purpose of the ESMC, which is to serve the public health, safety, and general welfare and to provide the economic and social advantages resulting from an orderly planned use of land resources. B. The proposed project is necessary to minimize the problems associated with short- term units by requiring a short-term rental unit permit, with restrictions and operational regulations. Further, the ordinance and all short-term rental permits will automatically sunset on June 30, 2021, after which short-term rentals will no longer be a permitted use. C. The proposed project is necessary to minimize the likelihood that this activity goes underground, at which point the city would not have an account of the number of short-term rentals, their locations, or a funding mechanism to offset any increase in demand for City services resulting from the short-term rental unit. SECTION 5: The following definitions are added to section 15-1-6 of the EI Segundo Municipal Code to read as follows - "SHORT -TERM RENTAL: The rental of any structure or any portion of any structure for occupancy, dwelling, lodging or sleeping purposes for a period of 30 consecutive calendar days or less." "SHORT-TERM RENTAL UNIT: A dwelling unit, or portion thereof, that is made available for short-term rental. A "short-term rental unit" has historically been, and continues to be, included in the definition of "hotel" for purposes of Title 3, Chapter 4 of this Code." SECTION 6: Section 15-4A-2 ("Permitted Uses") of the EI Segundo Municipal Code is amended to read as follows: Page 3 "15-4A-2: PERMITTED USES: Only the following uses and developments may be conducted or constructed in the R-1 Zone: A. Single-family dwellings; provided, that where a dwelling containing 700 square feet or less exists on the rear portion of the lot and was placed thereon prior to, or for which a building permit was issued prior to December 26, 1947, in conformance to the requirements of ordinance 293 of the city, a second one -family dwelling may be erected on the front portion of the lot, whereupon the dwelling on the rear portion of the lot shall assume the status of a nonconforming use as defined herein, but may be expanded to a maximum of 700 square feet. B. Parks, playgrounds, recreational areas (publicly owned and operated) but excluding ballparks, bleachers, swimming pools or other types of facilities where racing or contests are conducted or public amusement devices are for hire. C. The keeping of animals and pets in accordance with title 6, chapter 2 of this code. D. A state authorized, certified or licensed family care home, foster family home, or group home serving six (6) or fewer children. E. A state authorized, certified or licensed residential facility, residential care facility, residential care facility for the elderly, intermediate care facility, developmentally disabled habilitative or nursing, or congregate living health facility, serving six {6) or fewer persons. F. Home occupations. G. Small family daycare homes. H. Large family daycare homes pursuant to section 15-4A-4 of this article. I. One mobile or manufactured home subject to the following: 1. The mobile or manufactured home has been certified pursuant to the national manufactured housing construction and safety standards act of 1974, and has not been altered in violation of applicable codes; and 2. The mobile or manufactured home must be installed on a permanent foundation in compliance with all applicable building regulations and division 13, part 2 (commencing with section 18000) of the California Health and Safety Code. 1. T�sn m"wfivw &,f -&-t -­&fo than two (2) reerns to net mero than four (4) peFGGRG pe Page 4 J. On compliant parcels onlv. one short-term rental unit Der parcel of a permitted sinale-familv dwellina unit. or Dortion thereof. when conducted in accordance with a valid short-term rental Dermit issued pursuant to Title 4. Chanter 15 of the EI Seaundo Municipal Code. This subsection will automatically sunset on June 30- 2021. Thereafter. short-term rentals will no lonaer be a permitted use in the R-1 Zone and must be immediatelv discontinued. 1. For Durposes of this section. a "comDliant Darcel" is one that provides off-street Darkina on the Darcel at a ratio of not less than one Darkina space Der bedroom in the main residence/unit on the Darcel. Parkina spaces may include aaraae or drivewav spaces. Tandem Darkina spaces are acceptable provided each tandem space measures at least 9 feet by 20 feet and does not extend into anv_ sidewalk or other Dublic riaht-of-way. 2. A short-term rental unit is not a permitted use in the absence of a valid short- term rental permit. 3. An accessory dwellina unit may not be used for short-term rental. K. Other similar uses approved by the Director, as provided by chapter 22 of this title." SECTION 7: Section 15-413-2 ("Permitted Uses") of the EI Segundo Municipal Code is amended to read as follows: "15-4113-2: PERMITTED USES: The following uses are permitted in the R-2 zone: A. Any use permitted in the R-1 zone. B. A two-family dwelling, duplex, or two (2) one -family dwellings. C. On comDliant Darcels only. the short-term rental of a sinale-familv dwellina. two- family dwellina or duDlex. or Dortion thereof. when conducted in accordance with a valid short-term rental Dermit issued pursuant to Title 4. Chapter 15 of the EI Seaundo Municipal Code. This subsection will automatically sunset on June 30- 2021. Thereafter. short-term rentals will no lona_er be a permitted use in the R-2 Zone and must be immediatelv discontinued. 1. For purposes of this section. a "comDliant Darcel" is one that provides off-street Darkina on the Darcel at a ratio of not less than one Darkina space Der bedroom for all dwellina units on the Darcel. Parkina spaces may include aaraae or drivewav spaces. Tandem Darkina spaces are acceptable provided each tandem sDace measures at least 9 feet by 20 feet and does not extend into anv sidewalk or other Dublic riaht-of-way. Page 5 2. A short-term rental unit is not a Dermitted use in the absence of a valid short- term rental Dermit. 3. An accessory dwellina unit may not be used for short-term rental. D. Other similar uses approved by the director of planning and building safety, as provided by chapter 22 of this title. " SECTION 8: EI Segundo Municipal Code (ESMC) §15-4C-2 "Permitted Uses" is amended to read as follows: "15-4C-2: PERMITTED USES: The following uses are permitted in the R-3 Zone: A. Any use permitted in the R-2 Zone. B. Condominiums and stock cooperatives converted from multiple -family dwellings subject to the requirements of the Subdivision Map Act. C. Daycare centers. D. Large family daycare homes pursuant to section 15-4A-4 of this chapter. E. Lodging houses. F. Multiple -family dwellings. G. On compliant Darcels only, the short-term rental of a sinale-familv dwellina. two- family dwellina or duDlex. or Dortion thereof. when conducted in accordance with a valid short-term rental Dermit issued Dursuant to Title 4. Chanter 15 of the EI Seaundo Municipal Code. This subsection will automatically sunset on June 30- 2021. Thereafter, short-term rentals will no lonaer be a Dermitted use in the R-3 Zone and must be immediatelv discontinued. 1. For Durposes of this section. a " comDliant Darcel" is one that Drovides off-street Darkina on the Darcel at a ratio of not less than one Darkina space Der bedroom for all dwellina units on the Darcel. Parkina spaces may include aaraae or drivewav sDaces. Tandem Darkina sDaces are acceptable Drovided each tandem space measures at least 9 feet by 20 feet and does not extend into anv sidewalk or other Dublic riaht-of-way. 2. A short-term rental unit is not a Dermitted use in the absence of a valid short- term rental Dermit. 3. An accessory dwellina unit may not be used for short-term rental. Page 6 H. Other similar uses approved by the director of planning and building safety, as provided by chapter 22 of this title." SECTION 9: Title 4 of the EI Segundo Municipal Code (ESMC) is amended to add thereto a new Chapter 15 "Short -Term Rental Permits" to read as follows: "Chapter 15 SHORT-TERM RENTAL PERMITS 4-15-1: PURPOSE 4-15-2: DEFINITIONS 4-15-3: PERMIT REQUIRED 4-15-4: AGENTS 4-15-5: APPLICATION FOR PERMIT; FEE 4-15-6: PERMIT EXPIRATION; RENEWAL 4-15-7: DENIAL OF PERMIT 4-15-8: CONDITIONS OF PERMIT ISSUANCE AND RENEWAL 4-15-9: REGISTRY 4-15-10: HOSTING PLATFORM RESPONSIBILITIES 4-15-11: PROHIBITIONS 4-15-12: ENFORCEMENT; PENALTIES 4-15-13: REMEDIES NOT EXCLUSIVE 4-15-14: SUNSET PROVISION 4-15-1: PURPOSE The purpose of this Chapter is to require the owner of a residential dwelling unit that is used as a short-term rental to apply for and secure a permit authorizing such use in the manner provided for in this Chapter. 4-15-2: DEFINITIONS For the purpose of this chapter, the following definitions shall apply: ADMINISTRATIVE GUIDELINES: Requlations promulgated by the Director and approved by the Citv Council that may include, without limitation, application requirements, interpretations, conditions, reporting requirements, hostinq platform safe harbor requirements, enforcement procedures, and disclosure requirements to implement the provisions of this Chapter. BOOKING: A reservation for a short-term rental. BOOKING TRANSACTION: Any reservation or payment service provided by a person who facilitates a short-term rental transaction between a prospective transient user and a host. Page 7 HOST: Any person who is an owner, lessee, or sub -lessee of a residential dwelling unit offered for use as a short-term rental. Host also includes any person who offers, facilitates, or provides services to facilitate, the short-term rental of a residential dwelling unit, including, but not limited to, insurance, concierge services, catering, restaurant bookings, tours, guide services, entertainment, cleaning, property management, or maintenance of the residential property or unit regardless of whether the person is an owner, lessee, or sub -lessee of a residential dwelling unit offered for use as a short-term rental. Any person, other than an owner, lessee, or sub -lessee, who operates a short- term rental unit exclusively on the Internet shall not be considered a host. HOSTING PLATFORM: A person who participates in the business of the short-term rental of a residential dwelling unit by collecting or receiving a fee or other financial benefit, directly or indirectly through an agent or intermediary, for conducting a booking transaction using any medium of facilitation. OWNER: The person(s) or entity(ies) that hold(s) legal and/or equitable title to the short- term rental unit. PERSON: Any natural person, joint venture, joint stock company, partnership, association, club, company, corporation, business trust, or organization of any kind. SHORT-TERM RENTAL: The rental of any structure or any portion of any structure for occupancy, dwelling, lodging or sleeping purposes for a period of 30 consecutive calendar days or less. SHORT-TERM RENTAL UNIT: A dwelling unit, or portion thereof, that is made available for short-term rental. A "short-term rental unit" has historically been, and continues to be, included in the definition of "hotel" for purposes of Title 3, Chapter 4 of this Code. 4-15-3: PERMIT REQUIRED No owner of a dwelling unit located within a zoning district where short-term rental units are permissible may rent, offer to rent, or advertise for rent the short-term rental to another person without a valid short-term rental permit approved and issued in the manner provided for in this Chapter. 4-15-4: AGENTS An owner may retain an agent or a representative to comply with the requirements of this Chapter, including, without limitation, the filing of an application for a permit that has been signed and notarized by the owner, the management of the short-term rental unit, and the compliance with the conditions of the permit. The permit shall be issued only to the owner of the short-term rental unit. The owner of the short-term rental unit is responsible for compliance with the provisions of this Chapter and the failure of an agent to comply with this Chapter shall be deemed non-compliance by the owner. 4-15-5: APPLICATION FOR PERMIT; FEE Page 8 An application for a short-term rental permit, or for renewal of a short-term rental permit, must be made on a form approved by the Director and must contain the following information: A. The name, address and telephone number of the owner of the unit for which the permit is to be issued. B The name, address and telephone number of the agent, if any, for owner of the unit, and a signed affidavit from the property owner allowing agent to file an application on the property owner's behalf. C. Evidence that a City business license has been applied for or obtained for the separate business of operating a short-term rental. D. Evidence of valid transient occupancy registration certificate issued by the City for the short-term rental unit. E. Proof of general liability insurance in the amount of one million dollars combined single limit and an executed agreement to indemnify, defend, and save the City harmless from any and all claims and liabilities of any kind whatsoever resulting from or arising out of the short-term rental. F. An acknowledgment that the use of the property for a short-term rental unit is subject to a sunset provision and that owner will acquire no vested right to the continued use of any dwelling unit as a short-term rental unit after the sunset period has expired. G. An affidavit signed by the property owner attesting that the dwelling unit sought to be used as a short-term rental unit is his/her principal residence as defined in Section 4-15-8(A)(1). H. Such other information as the Director deems reasonably necessary to administer this Chapter. I. The short-term rental permit application must be signed by the property owner and notarized. J. An application for a short-term rental permit must be accompanied by a fee established by resolution of the City Council. 4-15-6: PERMIT EXPIRATION; RENEWAL A. Applications for short-term rental permits will be accepted for a pilot period commencing on February 1, 2020, through June 29, 2021. All short-term rental permits issued pursuant to applications received during the pilot period will automatically expire on June 30, 2021. Page 9 B. All short-term rental permits issued after July 1, 2021 will automatically expire on December 31 of each calendar year. Short-term rental permits may be renewed on an annual basis provided the permit holder and the property are in full compliance with this Chapter and all transient occupancy taxes due and owing pursuant to Title 3, Chapter 4 have been paid. C. Upon change of property ownership, the short-term rental permit will automatically expire. For purposes of this Chapter, a "change of ownership" has the definition set forth in Revenue and Taxation Code § 60 et seq. D. No short-term rental permit will automatically renew. It shall be the responsibility of the owner to renew each permit annually. To renew a short-term rental permit, the owner must submit an application in accordance with Section 4-15-5. E. A short-term rental permit may not be renewed if any required transient occupancy tax payment is past due. 4-15-7: DENIAL OF PERMIT No application for an original permit or a subsequent renewal shall be denied if it meets the conditions of permit issuance pursuant to 4-15-8. An application for a short-term rental permit must be denied if any information submitted by the applicant in connection with the application is materially false. Further, an original permit or a subsequent renewal may not be issued for any dwelling that is delinquent in the payment for its associated water service. 4-15-8: CONDITIONS OF PERMIT ISSUANCE AND RENEWAL A. All short-term rental permits and renewals are subject to the following standard conditions: 1. The short-term rental unit must be the principal residence of the owner. For purposes of this section, "principal residence" means the place where the owner resides for more than half of the year. No short-term rental permit may be issued for a dwelling unit that does not serve as the owner's principal residence. If the owner of the dwelling unit is not a natural person or a trust, the person who claims the dwelling unit as his/her principal residence must be a shareholder, member, or partner of the corporation, limited liability company, partnership, or joint venture that owns the dwelling unit. 2. Parking must be provided on-site at a ratio of not less than one parking space per bedroom in the main residence/unit on the parcel and must be available for use by the short term rental guest(s). Parking spaces may include garage or driveway spaces. Tandem parking spaces are acceptable provided each tandem space measures at least 9 feet by 20 feet and does not extend into any sidewalk or other public right-of-way. If any of the required parking is Page 10 provided in a garage, each garage space must be kept clear of debris and able to accommodate a vehicle at all times. 3. The owner must provide a 24-hour contact phone number and must be personally available by telephone on a 24-hour basis to respond to calls regarding the condition and/or operation of the short-term rental unit. The owner's contact information will be provided to the EI Segundo Police Department and all City departments. The owner must respond to an initial call within two hours and must commence action within 24 hours of the initial call to address any violation of this Chapter. 4. The short-term rental unit must at all times provide operable basic health and safety features, including fire extinguishers, smoke detectors, and carbon monoxide detectors. 5. The property of the short-term rental unit shall be maintained in a clean and sanitary condition. Trash and refuse shall not be left outdoors and shall not be left stored within public view, except in proper containers for the purpose of collection by the trash collectors. The owner must contract with the City's exclusive residential solid waste service provider for weekly solid waste services. If the owner or the owner's agent is not present on the site on the designated collection day, the owner must contract for roll out service (and pay the applicable cost thereof) to ensure that all receptacles are timely removed from the right-of-way after collection. 6. No signs or displays advertising the short-term rental unit are allowed on the subject property. 7. The short-term rental unit must have a clearly visible and legible notice in a conspicuous place inside the unit containing the information described below together with any additional information required by the Director. The notice required by this paragraph shall be in the form prescribed by the City. a. The name of the owner, agent, managing agency, or property manager and a telephone number at which that party may be reached; b. The maximum number of vehicles allowed to be parked on the property and their locations. C. Rules of conduct applicable to short-term renters and their guests. 8. The owner must maintain a transient occupancy registration certificate and must ensure the timely remittance of all transient occupancy taxes due in accordance with Title 3, Chapter 4 of this Code. 9. A short-term rental unit is for overnight lodging accommodations only and Page 11 may not be used for, or advertised for use for weddings, parties, bachelor/bachelorette parties, conferences, or similar events. The owner is responsible for the content of all advertising with respect to the short-term rental unit. 10. The occupancy of each short-term rental unit may not exceed two adults for each bedroom contained within the unit. If the short-term rental unit consists of a single bedroom or studio, no more than two adult occupants may be allowed. The applicable maximum occupancy must be included in every advertisement, posting, and listing for a short-term rental unit. 11. The short-term rental permit number must be included in every advertisement, posting, and listing for a short-term rental unit. 12. The short-term rental of space within any dwelling unit or garage for the purpose of storing personal property for compensation is prohibited in all residential zones. 13. An accessory dwelling unit may not be used for short-term rental. B. Special rules for short-term rentals in the R-2 Zone: 1. If all dwelling units on the parcel are under common ownership, only one of the dwelling units may be permitted for short-term rental. 2. If the dwelling units on the parcel are under separate ownership, each of the dwelling units may be permitted for short-term rental. C. Special rules for short-term rentals in the R-3 Zone: 1. If all dwelling units on the parcel are under common ownership, only one of the dwelling units may be permitted for short-term rental. D. A short-term rental permit may not be issued if a short-term rental permit for the unit has been revoked pursuant to section 4-15-12(C) or (D) within the last 12 months. E. The City Manager and/or Director shall have the authority to impose additional standard conditions, applicable to all short-term rental units, as necessary to achieve the objectives of this Chapter. F. The City Manager and/or Director shall have the authority to impose additional conditions on any permit in the event of any violation of the conditions of the permit or the provisions of this Chapter. Page 12 G. The Director may direct a hosting platform to remove a listing for any unpermitted short-term rental unit or for any short-term rental unit that has had its permit revoked or suspended pursuant to this chapter. 4-15-9: REGISTRY All owners and their respective properties permitted for use as short-term rental units pursuant to this Chapter will be listed on a registry created by the City and updated periodically by the City. The City shall make a copy of the registry available electronically to any person upon request. 4-15-10: HOSTING PLATFORM RESPONSIBILITIES A. A hosting platform shall be responsible for collecting all transient occupancy taxes applicable to bookings completed through the hosting platform and for remitting the same to the City. The hosting platform shall be considered an agent of the owner for purposes of such transient occupancy tax collections and remittance responsibilities as set forth in Title 3, Chapter 4 of this Code. B. The hosting platform shall require the host to input the short-term rental unit's corresponding Short -Term Rental Permit Number, consistent with the City's alphanumeric format, before the listing can be displayed. Any short-term rental unit listing that predates this ordinance and that does not have a corresponding Short -Term Rental Permit Number shall be removed by the hosting platform within 30 days of the effective date of this ordinance. C. A hosting platform shall not complete any booking transaction for any residential property or unit unless it is listed on the City's registry created under Section 4-15- 9 at the time the hosting platform receives a fee for booking the transaction. Upon request from the Director made in a manner specified in the Administrative Guidelines, tThe hosting platform shall must remove any a short-term rental listing upon request from the Directoror take other action consistent with the Administrative Guidelines. D. On a quarterly basis, Athe hosting platform shall provide the following information to the city on a quarterly basis: The total number of short-term rental units in the city listed on the platform during the reporting period, and 2. Citv with a report detailing Tthe total number of nights all short-term rental units were rented through the platform during the applicable reporting period. 3. The report shall be provided in an electronic format determined by the Director and shall include the URL of each listing and the corresponding Short -Term Rental Permit Number of each reported listing. Page 13 E. A hosting platform shall not collect or receive a fee or other financial benefit, directly or indirectly through an agent or intermediary, for facilitating or providing services ancillary to an unregistered short-term rental unit, including, but not limited to, insurance, concierge services, catering, restaurant bookings, tours, guide services, entertainment, cleaning, property management, or maintenance of the residential property or unit. F. Safe Harbor. A hosting platform shall be presumed to be in compliance with this Chapter if it does either of the following: 1. operating exclusively on the Internet, which oOperates in compliance with subsections (A), (B), (C), (D), and (E) above, or shall be presumed to be in compliance with this Chapter. 2. Complies with the Administrative Guidelines issued by the Director and approved by the Citv Council that describe how the hosting platform must satisfy the hostinq platform responsibilities in this Chapter. G. The provisions of this Section shall be interpreted in accordance with otherwise applicable State and Federal law(s) and will not apply if determined by the City to be in violation of, or preempted by, any such law(s). 4-15-11: PROHIBITIONS It is unlawful for any host to offer, operate, maintain, authorize, aid, facilitate or advertise the short-term rental of any residential dwelling unit without a valid short-term rental permit. It is unlawful to operate or maintain a short-term rental unit in violation of Section 4-15-8. Only a qualifying residential dwelling unit or portion thereof may be made available for short-term rental subject to this chapter and Title 15. It is unlawful to offer, operate, maintain, authorize, aid, facilitate or advertise the short-term rental of anything other than a dwelling unit or portion thereof for purposes of overnight lodging (for example, a vehicle, recreational vehicle, trailer, tent, yurt, etc.) 4-15-12: ENFORCEMENT; PENALTIES A. Any host violating any provision of this Chapter, or hosting platform that violates its obligations under Section 4-15-10, is guilty of an infraction which shall be punishable by a fine not exceeding $2,500 for the first violation and $5,000 for each additional violation within a twelve-month period, or as a misdemeanor which shall be punishable by a fine not exceeding $500 or by imprisonment for not more than six months. B. Any host who violates any provision of this Chapter, or hosting platform that violates its obligations under Section 4-15-10, shall be subject to administrative citations and penalties pursuant to Title 1, Chapter 2A of this Code. Page 14 C. If, within any twelve-month period, the property upon which a short-term rental unit is located is the subject or the site of two violations of any of the provisions of this chapter, or of chapters 1, 2, or 13 of Title 7, or any combination thereof, the short- term rental permit for the unit shall be automatically revoked. In such a case, no new short-term rental permit may be issued for the subject dwelling unit for a period of twelve months from the date of revocation. For purposes of this section, the automatic revocation shall become effective as of the date the second citation within any twelve-month period becomes final (i.e., the time for administrative and/or judicial review has passed or final judgment of a court has been entered upholding the citation.) D. In addition to the penalties set forth herein, if the short-term rental unit or the dwelling unit that houses the short-term rental unit is the site of a loud or unruly gathering in violation of section 7-13-3 that results in the issuance of an administrative citation and/or criminal charge, the short-term rental permit shall be automatically revoked if and when the administrative citation becomes final (i.e., the time for administrative and/or judicial review has passed or final judgment of a court has been entered upholding the citation) or a criminal conviction is obtained. In such a case, no new short-term rental permit may be issued for the subject dwelling unit for a period of twelve months from the date of revocation. E. The remedies provided in this Section are not exclusive, and nothing in this Section shall preclude the use or application of any other remedies, penalties or procedures established by law. 4-15-13: REMEDIES NOT EXCLUSIVE The remedies listed in this chapter are not exclusive of any other remedies available to the city under any applicable federal, state or local law and it is within the discretion of the city to seek cumulative remedies. 4-15-14: SUNSET PROVISION This Chapter shall remain in effect only until June 30, 2021 and as of that date this Chapter is repealed. The sunset or repeal of any provision of this Chapter does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before effective date of the sunset or repeal of the Chapter. Any such repealed part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of the repeal." SECTION 10: CONSTRUCTION. This Ordinance must be broadly construed in order to achieve the purposes stated in this Ordinance. It is the City Council's intent that the provisions of this Ordinance be interpreted or implemented by the City and others in a manner that facilitates the purposes set forth in this Ordinance. SECTION 11: ENFORCEABILITY. Repeal of any provision of the ESMC does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition Page 15 of penalties for any violation occurring before this Ordinance's effective date. Any such repealed part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Ordinance. SECTION 12: VALIDITY OF PREVIOUS CODE SECTIONS. If this entire Ordinance or its application is deemed invalid by a court of competent jurisdiction, any repeal or amendment of the ESMC or other city ordinance by this Ordinance will be rendered void and cause such previous ESMC provision or other the city ordinance to remain in full force and effect for all purposes. SECTION 13: SEVERABILITY. If any part of this Ordinance or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Ordinance are severable. SECTION 14: The City Clerk is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the City of EI Segundo's book of original ordinances; make a note of the passage and adoption in the records of this meeting; and, within fifteen (15) days after the passage and adoption of this Ordinance, cause it to be published or posted in accordance with California law. SECTION 15: This Ordinance will take effect 30 days after its passage and adoption. PASSED AND ADOPTED this day of , 2020. Drew Boyles, Mayor APPROVED AS TO FORM: Mark D. Hensley, City Attorney /_VAaIQM9 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Tracy Weaver, City Clerk of the City of EI Segundo, California, do hereby certify that the whole number of members of the City Council of said City is five; that the foregoing Ordinance No. was duly introduced by said City Council at a regular meeting Page 16 held on the day of 2020, and was duly passed and adopted by said City Council, approved and signed by the Mayor, and attested to by the City Clerk, all at a regular meeting of said Council held on the day of 2020, and the same was so passed and adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: Tracy Weaver, City Clerk Page 17