City of South Lake Tab

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1 City of South Lake Tab maklnr a positil'<! difference ' PUBLIC HEARING b STAFF REPORT CITY COUNCIL MEETING OF JUNE 2, 2015 TO: FROM: RE: Nancy Kerry, City Manager Shawna Brekke-Read, Director of Development Services Waive First Reading (and Read by Title Only) of an Ordinance of the City Council of the City of South Lake Tahoe Amending Title 6 Development Services: Chapter 6.15 Building Regulations Article VIII. Single Room Occupancy (SRO) Program RECOMMENDATION: Hear staff report; Receive public comment; Receive Council comments; Waive First Reading (and Read by Title Only); and Refer to Second Reading and Adoption at the June 16, 2015 Council Meeting. BACKGROUND: The City Council considered a draft Single Room Occupancy (SRO) Ordinance at its March 3, 2015 meeting. The SRO Subcommittee and staff drafted the SRO ordinance to address the currently unregulated, long-term use (>30 days) of about 1,300 hotel/motel rooms in the City. Many of these hotels/motels suffer from blight due to deferred maintenance, contain numerous substandard conditions, and do not meet basic health and safety requirements for the residents. ISSUE AND DISCUSSION: Following Council's discussion, staff conducted comprehensive outreach to solicit input from the public and the various stakeholders, including owners, tenants, government agencies and local business groups. The community was invited to a public workshop on April 22, 2015 where SRO Subcommittee members and staff explained provisions of the proposed SRO ordinance, answered questions and received valuable feedback from those in attendance. In addition, staff answered phone calls and s with various questions pertaining to the proposed SRO program. Some members of the public questioned whether long-term hotels and motels needed regulating; others indicated unsanitary conditions exist at many properties; and others stated the City was proposing the ordinance to increase its revenues. Comments regarding the ordinance's specifics included concerns about necessity of kitchens, laundry facilities, trash enclosures, and parking; responsibility of communal kitchen cleanliness; necessity of regulating long-term hotels/motels; success of multi-family residential inspection program; condition of units for tenants; and ADA compliance.

2 Single Room Occupancy Ordinance City Council Meeting: June 2, 2015 Page 2 of 3 Following the public workshop, the SRO Subcommittee met on May 12, 2015 and discussed and analyzed all comments received. Based upon this feedback, the subcommittee formulated several changes to the proposed SRO ordinance, as follows: 1. Kitchen requirement. Developed a reduced kitchen standard (kitchenette) for units containing in-room cooking facilities allowing: a. Microwave oven to take the place of a cooktop; and. b. Bar sink in place of a full-sized kitchen sink. 2. Trash enclosure. Revised dumpster enclosure requirements to allow for the installation of a lighter duty screening enclosure. 3. Parking. Removed parking standards. 4. Laundry. Removed laundry facility requirements. 5. Kitchen maintenance. Added language to require sanitation and maintenance of common kitchens. 6. ADA. Required ADA compliance. The SRO subcommittee concluded the above changes, removing some design standards and relaxing others, would achieve health and safety objectives for the residents while costing property owners less to implement. The SRO Subcommittee recommends the City Council adopt the attached revised SRO ordinance. CITY COUNCIL WORK PLAN: The Council included adopting a Single Room Occupancy ordinance to address long-term hotel/motel use in its Work Plan. Requiring inspections and placing health and safety requirements on hotels/motels would address four of the City Council Strategic Plan initiatives: improving the built environment, economic development, fiscal sustainability, and building public trust and accountability. GENERAL PLAN CONSISTENCY: The Housing Element of the City General Plan recogniz~s the need to address health and safety issues related to the long term use of hotel/motel rooms as residences. The Housing Element contains the following policy direction: Policy 3-6 The City shall consider implementation of an inspection program, similar to the Multi-Family Dwelling inspection program, for motels providing long term (30 days or longer) occupancies. The purpose of this program would be to identify blighted and deteriorated units, fulfilling housing needs and to provide for the rehabilitation of units that do not meet minimum building, housing, property maintenance code standards, and city-wide design standards, or is not safe to occupy. The proposed SRO Ordinance implements this policy. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA): The proposed SRO Ordinance is categorically exempt from CEQA under Sections and of the California Code of Regulations Title 14, Division 6, Chapter 3 (CEQA

3 Single Room Occupancy Ordinance City Council Meeting: June 2, 2015 Page 3 of 3 Guidelines). Section exempts minor alteration of existing facilities. Section exempts inspections to check for health and safety performance. FINANCIAL AND/OR POLICY IMPLICATIONS: The proposed ordinance would increase the workload for the Development Services Department. The City's fee schedule will ensure recurring inspection fees and an initial SRO permit fee covers the cost of the program from property owners. Hotels/motels operating as long term housing will have the choice between adapting a long-term hotel/motel unit to a SRO unit and the costs associated with that use or reverting to shortterm hotel/motel use and resuming payment of Transient Occupancy Tax. If the Council approves the first reading, staff will prepare a separate resolution to adopt fees at the second reading of the SRO ordinance. SIGNATURES: By: Attachment -SRO ordinance

4 South Lake Tahoe City Code Title 6 DEVELOPMENT SERVICES Chapter 6.15 BUILDING REGULATIONS ARTICLE VIII. SINGLE ROOM OCCUPANCY (SRO) PROGRAM Purpose. The purpose of this chapter is to address the shortage of decent, safe, sanitary and affordable rental housing options for low-income persons in the City. Hotels have historically provided affordable rental options of last resort for low-income persons. This ordinance enables hotels to rehabilitate units that do not meet minimum building, housing and property maintenance code standards so as to provide safe, habitable rental units for low-income persons. This ordinance establishes development, design and maintenance standards so as to preserve and enhance the quality of life for residents of the City living within such units Definitions. "Habitable floor area" includes living rooms, bedrooms, entryways and other common areas, but does not include bathrooms, kitchens, storage spaces or mechanical/electrical areas. "Lodging Property" includes hotels, motels, bed and breakfasts, lodging houses, lodging facilities, or similar properties. "Single Room Occupancy Property" or "SRO Property" means any building with one or more rooms which are (1) intended or designed to be used, or which are used, rented, or hired out, to be occupied, or which are occupied, for sleeping purposes by tenants, which is or may be the primary residence of such tenants, or (2) intended or designed to be used, or which are used, rented, or hired out, to be occupied, or which are occupied for periods greater than 29 days. "SRO Unit" means any room, rooms, or units of a lodging property used for SRO property purposes. "Transient lodging" is the use of a lodging property by guests of such lodging property who stay, sleep and/or occupy any rooms within said lodging property for 29 days or less Application. This ordinance applies to lodging properties with at least one SRO unit and does not apply to lodging properties used entirely for transient lodging purposes. Pursuant to this ordinance, all lodging properties are either required to obtain a South Lake Tahoe SRO Permit or pay the South Lake Tahoe Transient Occupancy Tax ("TOT") based upon all gross receipts and monies collected for the letting of rooms within said lodging property Transient Occupancy Tax SRO units shall be exempt from TOT except that SRO units subject to this ordinance

5 but in use as transient lodging are subject to South Lake Tahoe TOT and shall comply with all TOT reporting requirements as set forth in the South Lake Tahoe City Code SRO Permits. A. All lodging properties with SRO units shall obtain from the City of South Lake Tahoe Development Services Department, a South Lake Tahoe SRO Permit (SRO Permit). B. SRO Permits shall be obtained prior to use of any room, rooms or units of lodging properties for SRO purposes. C. Lodging properties with SRO units existing upon the effective date of this ordinance shall have until thirty (30) days after the effective date of this ordinance to submit a completed SRO Permit application. Lodging properties without existing SRO units upon the effective date of this ordinance may apply for an SRO permit at any time, but no less than thirty (30) days prior to letting SRO Units. D. Permit applications shall include the following properly completed forms and materials: 1. South Lake Tahoe SRO Permit Application which shall include a development design and maintenance plan. 2. Proof that lodging property is in compliance with its business and professions tax and TOT obligations. E. SRO Permits shall provide a twelve (12) month period within which permitees may complete all development, design and maintenance standards required by this ordinance. The Building Official or his or her designee (referred to herein as the Building Official) may grant extensions to this twelve (12) month period where he/she deems such extensions appropriate Fees A. SRO Permit Fee. A one-time fee in an amount set forth by separate resolution of the City Council shall be required for the submission of all SRO Permit Applications. B. SRO Annual Service Fee. An annual fee in an amount set forth by separate resolution of the City Council shall be assessed for all SRO rooms. This annual service fee shall cover the operational costs of the periodic SRO health and safety inspections as set forth more fully in section herein. The annual service fee shall be collected at the same time as payment of the lodging property's business and professions tax. Should the lodging property fail to timely pay its annual service fee, the City shall be permitted to recover it, plus accrued interest and penalties utilizing any and all remedies provided by law including but not limited to nuisance abatement and municipal tax lien. Failure to pay the annual service fee shall be deemed a violation of this ordinance. C. Re-Inspection Fee. Upon any inspection of a lodging property subject to this ordinance, the Building Official may instruct the owner of the lodging property to

6 perform work, take action, or refrain from action to meet the development, design, and maintenance standards set forth in this ordinance and by other applicable laws. If the Building Official determines that such work, action, or inaction has not been accomplished, the lodging property shall be assessed a reinspection fee in an amount set forth by separate resolution of the City Council. Should the lodging property fail to timely pay said re-inspection fee, the City shall be permitted to recover it, plus accrued interest and penalties utilizing any and all remedies provided by law including but not limited to nuisance abatement and municipal tax lien. Failure to pay the re-inspection fee shall be deemed a violation of this ordinance Design and Development Standards. SRO properties shall meet the following design standards: A. SRO Units 1. Designation. SRO property owner shall designate specific rooms as SRO units. Said designation cannot change without an amendment to SRO property's SRO permit. 2. Bathroom. Shall contain a bathroom facility, with a door for privacy, a lavatory (sink), toilet and bathtub or shower. 3. Efficiency kitchen. Efficiency kitchen facilities shall exist in each SRO unit that does not have access to a common kitchen (as set forth in section (B)(1 ), herein). Kitchens shall contain : a) A refrigerator with freezer (less than 7 cubic feet). b) A two burner stove and/or cook top and/or microwave. c) A kitchen or bar sink. d) Countertop space of at least 30 inches. e) Sufficient electrical capacity to accommodate such facilities. 4. Habitable floor area. a) For a single (1) occupant a minimum habitable floor area of 120 square feet. b) For two (2) occupants a minimum habitable floor area of 170 square feet. c) For three (3) occupants a minimum habitable floor area of 220 square feet. d) For four (4) occupants a minimum habitable floor area of 270 square feet. e) The permissible number of room occupants shall be capped at no more than four (4) persons. 5. Exterior doors. Exterior doors of SRO units shall meet standards for exterior door rating. B. SRO Properties 1. Common kitchen facilities. Shared kitchen space shall exist to serve all SRO units that do not possess a kitchen. Common kitchens shall contain: a) A full size range with four stove burners and an oven. b) A full size refrigerator with freezer for every six (6) SRO units. c) A full size microwave oven. d) A full size kitchen sink with garbage disposal. e) At least 10 feet of countertop space for food preparation.

7 f) Lockable storage cabinets a minimum of 2x2x2 feet for each SRO unit that does not possess independent kitchen facilities. 2. Trash Enclosure: An SRO property shall provide a trash enclosure or solid screening of the dumpster from public view. 3. Sewage: All sewer units shall be verified and/or permitted by South Tahoe Public Utility District or the appropriate provider. 4. Electrical: All SRO properties shall meet electrical service requirements that comply with all applicable laws and are subject to approval of the Building Official. 5. ADA Compliance: All SRO properties that make alterations or additions shall comply with the CA Building Code, Section 11 B-202 Existing Building and Facilities and Section 11 B- 224 Transient Lodging and guestrooms. C. Signage. 1. Proof of SRO permit shall be placed in a conspicuous place in the lobby or other common area of the lodging property such as a laundry room. 2. All SRO units must have an exterior placard containing the following information: a) Statement that room or unit has been designated as an SRO unit b) Name of hotel/motel c) Address of hotel/motel d) Room number e) Approved number of occupants f) Contact information of City Building Department to which complaints may be directed. D. SROs shall meet all other building requirements for residential building units as set forth in the South Lake Tahoe City Code and all other applicable laws Maintenance standards. In order to avoid a substantial risk to health and safety, affected residential rental dwellings shall meet the following interior/exterior and site maintenance standards: A. All parking areas shall be well maintained, including striping and landscaping. B. All landscaped and non-landscaped areas shall be in compliance with standards set forth in the SL TCC or other applicable laws. C. Common kitchen areas shall be kept clean and well maintained Inspections. A. Inspections. The Building Official may inspect all permitted SRO properties and SRO units to determine whether such facilities and units comply with conditions of approval and all other applicable laws. Inspections may be

8 performed annually, or more frequently where the Building Official determines that the SRO property or SRO unit poses a substantial risk to health and safety or violations of this ordinance exist. B. Inspection Standards. When inspections are made, SRO properties and SRO units shall be required to be in conformance with the standards in effect at the time the facility or unit was permitted, as well as any additional standards mandated by law. C. Notification and Access. 1. A letter of intent to inspect an SRO property shall be mailed and ed when possible, to the owner of the SRO property stating the date and time of inspection and shall provide 14 days' notice of said inspection. An inspection checklist will be mailed with the letter. 2. It shall be the responsibility of the SRO property owner to notify the tenants, residents and inhabitants of the inspection. The City shall be ensured access to all SRO units and shared facilities throughout the inspection. 3. In the event an owner or tenant in possession of the property to be inspected refuses access to said property, the city attorney or district attorney is authorized to obtain from a court of competent jurisdiction any warrant necessary to cause the inspection to take place. D. Voluntary Inspections. Nothing herein shall prevent an owner of a lodging property or a tenant, resident or inhabitant from requesting an inspection at any time for the purpose of determining whether any and all parts of the lodging property comply with this ordinance. Voluntary inspections shall not be subject to the inspection fees set forth by section herein. Where violations of this ordinance are discovered during a voluntary inspection, fines shall not be assessed if said violations are corrected within three (3) months of the date of inspection. E. Reduced Inspections. Lodging properties with SRO unit(s) that have been permitted under this ordinance for a minimum of three (3) successive years and which have complied with all elements of this ordinance shall be eligible for reduced inspections and reduced SRO fees provided the lodging property meets the following standards and requirements set forth by the SL TCC or other agency standards: 1. Defensible space standards 2. Dumpster enclosures 3. Landscaping and drainage standards Violations. A. Any and all violations of this ordinance shall be subject to the City's Administrative Citation procedures as set forth in SL TCC Title 2. B. Any/all practices intended to evade compliance with this ordinance shall be deemed a violation thereof. C. Residents and inhabitants of SRO units shall not be moved to another unit so as to

9 deprive such residents, tenants and inhabitants of the rights conferred by this Ordinance. D. Relocation of tenants. If any SRO unit is found to be unsafe to occupy, due to imminent danger to health and safety of the resident(s), the costs and expenses of relocation of any tenant from that unit shall be the responsibility of the owner, pursuant to the provisions of Health and Safety Code Section et seq. E. The following constitute violations of this ordinance: 1. Verifiable complaints of noncompliance with the standards set forth in this ordinance. 2. Failure to obtain an SRO permit where a permit is required. 3. Failure to pay SRO fees, TOT, and/or business and professions tax upon such fees and taxes becoming due. 4. Permissible use of rooms and/or units in a lodging property for a period greater than 29 days without having obtained an SRO permit and without meeting the design, development and maintenance standards set forth by this ordinance. 5. Failure to accommodate inspections authorized by this ordinance Tourist Accommodation Units. All SRO units shall remain Tourist Accommodation Units (TAUs) as set forth by TRPA's Code of Ordinances, unless converted from a TAU by regulations or means other than this ordinance.

10 Susan Alessi From: Sent: To: Cc: Subject: Susan Alessi Monday, May 04, : 18 PM 'JoAnn Conner'; Nancy Kerry RE : monthly motels Thank you for your input Duane. I have placed your in the June 2nd City Council meeting agenda folder as that item will first be introduced (1 51 Rdg of Ordinance) at that meeting. It will be included in the agenda packet for Council's information. Sincerely, Susan _Jl{essi,?rl?rf C City Clerk City of South Lake Tahoe 1901 Airport Road, Suite 206 South Lake Tahoe, CA Ph : (530) FAX: (530) salessi@cityofslt.us From: JoAnn Conner [mailto:jctahoewriter@hotmail.com] Sent: Friday, May 01, :22 AM To: Nancy Kerry; Susan Alessi Cc: duane_wallace@hotmail.com Subject: FW: monthly motels Hi Nancy and Susi, In a separate , Duane asked me to forward this to you. I have copied him so he will have your addresses in the future. His letter is dated March 28th, but I think he meant April 28th, judging by the time stamp in the . JoAnn From : duane wallace@hotmail.com To: jctahoewriter@hotmail.com 1

11 Subject: monthly motels Date: Wed, 29 Apr :46: March 28, 2015 To City Manager of South Lake Tahoe, City Council RE: motel housing Honorable City Manager and City Council, I am writing to you out of concern about the possible new ordinance regarding motel housing. In the past six years I have been involved with working for and advising various properties. The seven different properties opened my eyes to a separate part of our community that goes mostly unnoticed. This part of the permanent housing fills a need for very low cost housing. The renters can be single moms who for a variety of reasons are barely getting by. They can be elderly people who are on a small fixed income or who have health issues that take a large portion of their income. Unfortunately, some of the people who occupy these rooms are mired in drugs and alcohol habits that eat up their money. But many of these have children who need clothing, shoes and a decent meal. In any case these units are all these people can afford as they bounce in and out of homelessness. I can see why there is concern for the condition of the properties. There ought to be a minimum health and safety condition. There are human beings occupying these properties. As I have managed these properties or advised the owners I have actually seen little communities form as the occupants babysit each other's children or share cars. They often help each other ending up working for the same businesses. It is not the type of housing they want or the type of housing we would live in but it is what they can afford. It is all they can afford. As a substitute teacher and a former Boys & Girls Club Executive Director I have seen how many children are housed in these month to month motels. If it weren't for the Kiwanis, Christmas Cheer and other groups they wouldn't even have suitable coats for winter or shoes. My concern is that in the zeal to drastically raise the minimum standards that element of the housing mix will either be greatly reduced or completely eliminated. The residents are not an empowered group who will show up at a Council meeting to complain about the poor conditions. They may also not speak up as you possibly take away their only available place to live. They will simply become homeless. There certainly are motel owners who don't fix up their properties. And they certainly have health and safety issues. There is a feeling that they should be punished. However as the various agencies in our County add ordinance after ordinance the residents are getting punished rather than the owners. Jobs are bleeding away to other places. On a macro level, states like Texas are reducing fees and laws while we do the opposite. As an elected person myself, I am pushing for reduced connection fees even as our Utility is being forced by State mandates to do things that financially hurt businesses and residents. As a result of TRPA and strict building ordinances and high costs from the City and County who have followed suit, the motels here have become a literal museum of the 1960s. The only customer they are suitable for is for month to month housing. These agencies are dealing with market forces that it appears they do not understand. Until job creation and business advocacy becomes the primary objective there will be a need for the housing type that the old motels provide. Eliminating the motels won't eliminate the need for housing. Only increased opportunities for work will do that. A comprehensive economic development plan should be implemented first. Maybe it is time 2

12 for an economic summit that includes every aspect of our town. That of course includes tourism that is often reactive and creates secondary jobs but also retail, government and education as we jointly come up with a plan that creates primary jobs. We cannot legislate prosperity but if we are not careful we can legislate poverty. My request as a citizen is for the council to set reasonable standards but to also create graduated improvement schedules that do not hurt the very families you would like to protect. By making draconian regulations the motels will either become mini black holes or be fixed up to a level that leaves these lower income community members with no place to live. Sincerely, Duane Wallace Duane wallace@hotmail.com