SANTA BARBARA COUNTY PLANNING COMMISSION Staff Report Short-Term Rental Ordinance Case No. 16ORD and 16ORD

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1 SANTA BARBARA COUNTY PLANNING COMMISSION Case No. 16ORD and 16ORD Hearing Date: Date: July 27, 2015 Case No.: 16ORD and 16ORD Environmental Document: Notice of Exemption pursuant to CEQA Section 15061(b)(3). Interim Deputy Director: Mindy Fogg Division: Long Range Planning Staff Contact: Jessica Metzger Staff Phone No.: (805) REQUEST Hearing on the request of the Planning and Development Department that the County Planning Commission: 1. Adopt a recommendation to the Board of Supervisors that the Board of Supervisors adopt an ordinance (16ORD ) amending Section 35-1, the Santa Barbara County Land Use and Development Code, of Chapter 35, Zoning, of the County Code by amending Article 35.2, Zones and Allowable Land Uses, Article 35.3, Site Planning and Other Project Standards, Article 35.4, Standards for Specific Land Uses, and Article 35.11, Glossary, to implement new regulations regarding the land use of Short-Term Rentals and make other minor clarifications, corrections, and revisions as set forth in Attachment A, Exhibit 1; and 2. Adopt a recommendation to the Board of Supervisors that the Board of Supervisors adopt an ordinance (16ORD ) amending Article II, the Santa Barbara County Coastal Zoning Ordinance, of Chapter 35, Zoning, of the County Code by amending Division 2, Definitions, Division 4, Zoning Districts, Division 6, Parking Regulations, and Division 7 General Regulations, to implement new regulations regarding the land use of Short-Term Rentals and make other minor clarifications, corrections, and revisions as set forth in Attachment B, Exhibit 1. The Ordinances propose to implement new regulations and other revisions permitting the land use of Short-Term Rentals in Agricultural and Mixed-Use zoning districts, and permitting the use in certain Commercial zoning districts, where other transient lodging are also permitted, and adding text to prohibit the land use of Short-Term Rentals in Residential, Resource Protection, Industrial, and Special Purpose zoning districts in both the Land Use and Development Code (LUDC) and the Santa Barbara County Coastal Zoning Ordinance (Article II).

2 Page RECOMMENDATION AND PROCEDURES 2.1 Case No. 16ORD Follow the procedures outlined below by recommending that the Board of Supervisors approve Case No. 16ORD based upon the ability to make the appropriate findings, including CEQA findings. Your Commission's motion should include the following: 1. Make the findings for approval including CEQA findings, and recommend the Board make the findings for approval of the proposed ordinance amendment (Attachment C); 2. Recommend that the Board of Supervisors determine that the adoption of the proposed ordinance is exempt from the California Environmental Quality Act pursuant to Section 15061(b)(3) of the Guidelines for Implementation of CEQA (Attachment D); and 3. Adopt the Resolution recommending that the Board of Supervisors adopt Case No. 16ORD , an ordinance amending the Santa Barbara County Land Use and Development Code, of Chapter 35, Zoning, of the County Code, to implement new regulations regarding the land use of Short-Term Rentals and make other minor clarifications, corrections, and revisions (Attachment A). 2.2 Case No. 16ORD Follow the procedures outlined below and recommend that the Board of Supervisors approve Case No. 16ORD based upon the ability to make the appropriate findings. Your Commission's motion should include the following: 1. Make the findings for approval including CEQA findings, and recommend the Board make the findings for approval of the proposed ordinance amendment (Attachment E); 2. Recommend that the Board of Supervisors determine that the adoption of the proposed ordinance is exempt from the California Environmental Quality Act pursuant to Section 15061(b)(3) of the Guidelines for Implementation of CEQA (Attachment F); and 2. Adopt the Resolution recommending that the Board of Supervisors adopt Case No. 16ORD , ordinance amending Article II, the Santa Barbara County Coastal Zoning Ordinance, of Chapter 35, Zoning, of the County Code, to implement new regulations regarding the land use of Short-Term Rentals and make other minor clarifications, corrections, and revisions (Attachment B). Refer back to staff if the County Planning Commission takes any action other than the recommendation for appropriate findings and documentation.

3 Page JURISDICTION 3.1 Case No. 16ORD This project is being considered by the County Planning Commission based upon Sections to 65857, inclusive, of the California Government Code and Chapter of the LUDC. The Government Code and the LUDC require that the County Planning Commission, as the designated planning agency for the unincorporated area of the County located outside of the Montecito Community Plan Area, review and consider proposed amendments to the LUDC and provide a recommendation to the Board of Supervisors. 3.2 Case No. 16ORD This project is being considered by the County Planning Commission in compliance with Section of Chapter 2 of the Santa Barbara County Code that provides that the County Planning Commission makes recommendations to the Board of Supervisors on text amendments to Article II of Chapter 35, Zoning, of the County Code. 4.0 BACKGROUND 4.1 Project Initiation. During the review of the 2015/2016 Annual Work Program for the Long Range Planning Division, both the County Planning Commission and the Montecito Planning Commission recommended adding the review of STRs to the list of projects to be started in the 2015/2016 fiscal year. The Board of Supervisors considered the Planning Commissions recommendation during the Board s budget workshop and directed staff to review and clarify provisions in the County zoning ordinances concerning the use of STRs within the unincorporated areas of the County as part of the 2015/2016 Long Range Planning Annual Work Program. 4.2 Public Outreach. Staff gathered public input on the use of Short-Term Rentals (STRs) in the County through a variety of outlets since the project began in July Public outreach was initiated by holding four public meetings. Staff has received over 250 s and letters from the public on the topic. These correspondences have all been transmitted to the County Planning Commission at previous hearings or with this report. County staff continues to see an emergent interest in the issue and public involvement and engagement has grown through the course of the project. 4.3 Agricultural Preserve Advisory Committee (APAC) On February 5, 2016, the APAC reviewed and considered the use of STRs on lands in agricultural preserve contracts and submitted a letter to the County Planning Commission outlining their recommendation on February 8, 2016 (Attachment G). The APAC unanimously voted that STRs are not a compatible use on contracted lands according to the Uniform Rules. The APAC is concerned that a commercial, non-agricultural use such as STRs can result in temporary increases in population and agricultural/urban conflicts could impact on-site and adjacent agricultural operations. The APAC is also concerned about potential impacts of allowing STRs on non-contracted agricultural lands since the potential economic return could be an incentive for landowners to non-renew their agricultural preserve contracts to pursue this use. The APAC recommends that the Planning

4 Page 4 Commission consider new agritourism lodging uses on agricultural land as part of the Gaviota Coast Plan and the Agricultural Permit Streamlining projects instead of in isolation as part of the STR ordinance. If the Planning Commission determines to allow the use on agricultural preserve lands, through a Land Development Permit or Coastal Development Permit, the permit application would still be reviewed by the APAC for a recommendation of use compatibility with the Uniform Rules. 4.4 County Planning Commission. At the November 4, 2015 hearing, the County Planning Commission considered the land use of STRs and received testimony from the public. The item was continued to the December 9, 2015 meeting. The Commission directed staff to draft an ordinance prohibiting STRs in Residential zoning districts at the December 9, 2015 meeting. The Commission continued the hearing to February 24, 2016 and directed staff to return with further information on a regulatory approach for permitting STRs on Agricultural zoned lands. At the February 24, 2016 meeting, the Commission directed staff to develop regulations to permit STRs in Agricultural zoning districts. 4.4 Montecito Planning Commission. The Montecito Planning Commission met on November 18, 2015 and received staff s briefing and public testimony on the land use of STRs. The Commission directed staff to develop specific zoning ordinance amendments to the Montecito Land Use Development Code and the portion of Article II in the Montecito Community Plan to prohibit STRs in zoning districts that do not currently permit traditional transient lodging uses. Staff plans to return to the Montecito Planning Commission in September. 5.0 ISSUE SUMMARY 5.1 County Regulatory Authority The County has the authority to establish a long-range land use plan and to implement these policies through regulations. The County has adopted a Comprehensive Plan and zoning regulations that direct the location and extent of land uses, as well as provide standards and regulations that serve to differentiate appropriate land uses within each zone district and create regulations for orderly development. The land use of STRs has not previously been specifically defined in the LUDC or Article II. The proposed amendments conditionally allow STRs in agriculturally zoned areas, allow STRs through a land use permit in commercial and mixed use zoning districts, and prohibit the use of STRs in residential zoning districts. These amendments are within the County s authority to ensure orderly growth and development through zoning. 5.2 Ordinance Development Rationale As stated above, the Planning Commissions have directed staff to develop ordinance language that prohibits STRs in residential zoning districts. In the Planning Commission discussions and public comment, there was a variety of reasons stated about STRs being inappropriate in residential zoning districts. One of the main reasons was the nuisance issues that STRs have caused long-term neighbors. In addition to noise and parking concerns, there was also much

5 Page 5 discussion on the behavior of short-term renters who do not live in and are not invested in the neighborhood. By allowing a constant stream of short-term renters coming through a neighborhood, the intent of the residential zoning district is threatened. The general intent states: Residential zones are zones that protect residential character, promote public health, safety, and welfare, ensure compatibility, provide housing opportunities, preserve the character of an area, and minimize the services needed. Another key point that was used to determine the direction to prohibit the use in residential zoning districts was the current vacancy rate in the Santa Barbara County area. Growth in the STR market is exacerbating the availability of housing, including affordable and rental housing, in a market where housing is already constricted. This determinately affects the cost of housing for both affordable housing and workforce housing. The Planning Commission also directed staff to develop ordinance language to provide a path for permitting STRs in Agriculturally zoned areas of the County. This recognizes that agricultural parcels are normally larger in size than the traditional residentially zoned parcels. The larger lot area would allow for parking to be on-site, alleviating that nuisance issue. It would also generally provide a greater buffer between long-term neighbors and the STR use, so noise would not have the same impacts as it would in residential areas. The allowance of the STRs on agricultural lands would require the approval of a land use permit or coastal development permit, which could include specific conditions, along with yearly renewal. This process would allow staff to monitor the use and allow neighbors recourse through the renewal consideration process. 5.3 Ordinance Effective Date Adoption of this project will affect a number of existing STRs in residential zoning districts where the land use would no longer be allowed. During the public process, it was often stated, STRs are booked out far in advance. Staff recommends that the ordinance prohibiting the use in residential zoning districts include a grace period of nine months (270 days) from the adoption date of the new zoning ordinances for owners and operators to respond to the new regulations. The grace period will also give staff time to create educational materials about the changes and develop and fund an enforcement plan. Adoption of this project will affect a number of existing STRs both in zoning districts where the land use would no longer be allowed and for zoning districts were a permit is now required for the use. Staff recommends that the ordinance prohibiting the use in residential zoning districts include a grace period of nine months (270 days) from the adoption date of the new zoning ordinances for owners and operators to respond to the new regulations. Staff also recommends the same grace period of nine months (270 days) for owners and operators in zoning districts where the use is allowed to obtain a permit for the land use of a STR. The grace period will also give staff time to create educational materials about the changes and develop and fund an enforcement plan.

6 Page DISCUSSION AND STAFF RECOMMENDATIONS 6.1 Proposed Amendments The amendments for the use of STRs are proposed in the LUDC and Article II. The amendments to the LUDC will take effect nine months (270 days) following the adoption of the ordinance by the Board of Supervisors. The amendments to Article II constitute an amendment to the County s certified Local Coastal Program, therefore the amendments will take effect following final certification of the amendments by the California Coastal Commission, but no sooner than nine months (270 days) after the adoption of the ordinance. The complete texts of the ordinance amendments are contained in Attachment A, Exhibit 1 for the LUDC and Attachment B, Exhibit 1 for Article II. Proposed deletions are shown by striking through the text and proposed additions are underlined in red. 6.2 The Allowance of STRs in AG-I and AG-II Zoning Districts in the LUDC and Article II (outside of the Montecito Community Plan). The proposed amendments will conditionally permit the land use of STRs in Agricultural zoning districts. The conditions have been developed after extensive research staff completed on the effectiveness of the standards and the enforceability seen in other jurisdiction, along with considering issues heard through the public process. Compliance with fire, building, and health codes Compliance with fire, building, and health codes is in place to protect the safety and welfare of the renter of the property. This regulation will allow permit staff to review a site plan and make sure each room is equipped with carbon monoxide and smoke alarms. It also allows for additional requirements to be implemented when codes change in the future. Prohibited structures In staff review of STR hosting sites, it quickly became apparent that many rented spaces were not up to code as a habitable dwelling. This standard sets in place that the rented unit must be a legally established dwelling unit and shall not be an agricultural accessory structure, tent, trailer, vehicle, yurt or any other space that may not be legally used as a dwelling. It also calls out that structures built to be occupied on a temporary basis, such as guest houses and cabañas, are not be used at a STR. Finally, dwellings subject to agreements or covenants like affordable housing unit or farm worker housing are not allowed to be used as a STR. Limit on number of STRs allowed per lot There are instances where investors buy multiple units on one lot and turn them all into STRs. Residential second units have been allowed in the County to combat the lack of housing and provide additional options for long-term housing. It is not the intent of this ordinance to allow multiple STRs on single lots; staff has proposed a standard that only allows one STR per lot. Limitation on the number of guests and parking restrictions Through the public process, staff and the Planning Commissions heard about nuisance issues, including excessive noise and constricted on-street parking due to over-crowding in STRs. To address these issues, staff recommends a maximum occupancy of two adults per bedroom and a

7 Page 7 requirement that all parking be located on site. Parking is required to be one space per bedroom. Provision of required parking will be verified by staff during the application review process. Nuisance response plan Staff proposes development and implementation of a nuisance response plan that requires the STR operator to maintain a 24-hour contact within 30 miles of the property for neighbors to contact if issues arise with the STR. Failure to respond to calls in a timely and appropriate manner may result in revocation of the permit. Responding in a timely and appropriate manner means that an initial call shall be responded to within one hour of the time the initial call was made, and a corrective action shall occur within two hours of the initial call. Posted notice within unit In addition, the regulations would require the operator to post a set of rules in the unit so the renter can clearly understand what is expected of them. These rules reiterate occupancy, parking, and noise standards for the unit. Noise Noise standards are called out specifically for the use of STRs. Quiet hours are proposed between 10 p.m. to 10 a.m. Internet listing The proposed regulations would also require the operator to disclose all internet hosting site listing numbers at the issuance of the LUP. This would allow enforcement staff to distinguish those STRs on hosting sites that have permits from those operating without required planning permits. Renewal of permit The regulations would require the permit to be renewed on a yearly basis. This would allow staff to review the past year for compliance and enforcement issues before considering renewal of a new permit. Revocation standards The final subsection is in regards to the revocation of the permit in the instance of noncompliance with any of the above standards and/or complaints against the STR. 6.3 The Allowance of STRs in MU, CM-LA, C-1, C-2, C-3, CH, and C-V Zoning Districts in the LUDC and in C-1, C-2, and C-V in Article II Zoning Districts. The proposed amendments will permit the land use in certain commercial zoning districts where other traditional transient lodging uses (e.g. hotels) are permitted. Because the use would be surrounded by other commercial uses, staff does not recommend the application of the additional development requirements developed for agricultural zoning districts. 6.4 The Prohibition of STRs in Residential Zoning Districts As stated above, in section 5.2 of this staff report, it is the Planning Commission s direction that STRs are not a compatible use in residential zoning districts. This proposed ordinance does not contemplate allowing the use in any residential zoned area.

8 Page Ordinance Effective Date As stated in section 5.3 above, adoption of this ordinance will affect a number of STRs in Residential zoning districts where the land use would no longer be allowed. In review of STR platforms, staff found that a renter could reserve a rental unit up to 3 years into the future. STRs are often booked for a guest to stay in the area for special occasions (e.g. weddings, anniversaries, reunions). Although the planning of these events can vary, most wedding venues are booked at least 9 months in advance. Due to these factors, staff is recommending that a grace period be given for the prohibition of STRs in residential zones of nine months (270 days). This will allow the owner of the property to transition it out of the bookings to a permitted residential use. 6.7 Supplemental Application Staff is proposing to permit STR with a LUP or CDP. Staff has developed a supplemental application for STR to provide additional information regarding STR proposals (See Attachment H). The supplemental application includes: Copy of the owner/operators standard rental contract; Transient Occupancy Tax number; Floor plan; Neighbor Notification containing the following information: The name and phone number of the local contact available on a 24-hour basis The maximum number of occupants allowed to stay overnight in the unit The maximum number of vehicles allowed to be parked on the property; Complain call and response log. 6.8 Economic Analysis The County of Santa Barbara Treasurer-Tax Collector s office, through the Taxation portion of the County Code (Chapter 32), requires Transient Occupancy Tax (TOT) to be collected for STRs. The TOT certificate is for tax collection purposes and does not constitute land entitlement under the LUDC or Article II. If the Ordinances are approved as proposed, the Treasurer-Tax Collector would only collect TOT for those permitted STRs in Agriculture, Mixed Use, or Commercial zoning districts. This will represent a reduction in TOT collected for STRs of approximately 75 percent. The Planning Commission received an economic report on STRs generated by a company called TXP from a STR operator as a public comment. This report was not broken up by incorporated and unincorporated areas of the County but did show that STRs brought in $129.8 million to the County as a whole in direct lodging spending. Staff research found that this company produces many reports for STRs across the County. All of these reports have the same message of large economic gains due to STRs. Staff requested that the University of California, Santa Barbara Economic Forecast department assess the information and the assumptions presented in this report. The view of this outside expert is that the study is upward biased. It appears to be assuming that all of the people staying at STRs are additional guests to the County and would not have stayed

9 Page 9 elsewhere. For example, a visitor could be coming to Santa Barbara County for a friend s graduation. This person finds a cheaper AirBnb than the hotel they were planning on staying. They book the AirBnB instead of the hotel. This would actually decrease revenue for the County. An increase in revenue for the County would have to come from someone who was not planning on ever coming here unless they could stay at a STR. Another question that is not answered in the study is in regards to those who come stay in a STR, who would not have stayed in a hotel. Do these people spend in the same magnitude and proportion on other services as the hotel visitors? Through the public hearing process, we heard that people in STRs cook for themselves and do not frequent restaurants every night like a hotel guest would. This may represent a decrease in additional revenue for the County as well. The 5,000 job creation number was not supported by much data and the methodology was not clearly stated to allow reviewers to determine if this number is also inflated. Based upon the outside review, the economic effects of limiting STRs are not clear. 6.9 Permitting and Enforcement The Department s current approach to enforcement is generally reactive, in response to reported complaints. The enforcement program is funded and staffed to support this approach. Enforcement of the proposed ordinance could take a variety of approaches: Complaint driven, as with the current program; Added public outreach and education; Some proactive enforcement, such as reviewing hosting platforms/spot checking compliance with the ordinance; and Actively enforcing the ordinance. Decisions about the approach to enforcement would be considered by the Board of Supervisors during the fiscal year budget process. 7.0 ENVIRONMENTAL REVIEW 7.1 Case No. 16ORD The proposed ordinance amendment to the LUDC is exempt from environmental review pursuant to 15061(b)(3) of CEQA. Section 15061(b)(3) states that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. As explained further in Attachment D (Notice of Exemption), no significant environmental impacts would occur due to the ordinance amendments. 7.2 Case No. 16ORD The proposed ordinance amendment to Article II is exempt from environmental review pursuant to Section 15061(b)(3) of the CEQA. Section 15061(b)(3) states that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. As explained further in Attachment F (Notice of Exemption), no significant environmental impacts would occur due to the ordinance amendments. 7.3 Case No. 16ORD The proposed ordinance amendment to the Article II Coastal Zoning Ordinance is exempt from environmental review pursuant Section of the

10 Page 10 California Guidelines for Implementation of the California Environmental Quality Act (CEQA). Section 15265, the statutory exemption for the adoption of coastal plans and programs, including amendments thereto, provides that compliance with CEQA is the responsibility of the California Coastal Commission. 8.0 POLICY CONSISTENCY POLICY REQUIREMENT AGRICULTURAL RESOURCES Agricultural Element, Goal I: Santa Barbara County shall assure and enhance the continuation of agriculture as a major viable production industry in Santa Barbara County. Agriculture shall be encouraged. Where conditions allow (taking into account environmental impacts), expansion and intensification shall be supported. The Land Use Element, Land Use definition- Agriculture: The purpose of an agricultural designation is to preserve agricultural land for the cultivation of crops and the raising of animals In addition to such uses, agricultural lands may be utilized for a limited number of other uses, including related or incidental residential uses Santa Ynez Valley Community Plan Policy LUA- SYV-2 Santa Ynez Valley Community Plan Policy LUA- SYV-3 Santa Ynez Valley Community Plan Policy LUA- SYV-4 HOUSING ELEMENT Goal 3: Provide Fair and Safe Access to Housing. Goal 4: Preserve the Affordable Housing Stock and Cultivate Financial Resources for the Provision of Affordable Housing in Santa Barbara County. LOCAL COASTAL PLAN Coastal Act Policies Lower cost visitor and recreational facilities shall be protected, encouraged, and, where feasible, provided. Developments providing public recreational opportunities are preferred. Neither the commission nor any regional commission shall either: (1) require that overnight DISCUSSION Consistent: The ordinance would conditionally allow STRs on agricultural lands. STRs support agriculture as they provide an additional revenue stream, which may help to maintain agricultural operations. Therefore, adoption of the ordinances would be consistent with this goal. Consistent: The ordinance would conditionally allow STRs on agricultural lands. The use of STRs will most likely occur in existing dwellings that have been through the permitting process and have complied to development standards. The use is an incidental residential use and has the potential to bring additional revenue streams to the agricultural operation, consistent with this land use definition. Consistent: The ordinance would conditionally allow STRs on agricultural lands. STRs support agriculture as they provide an additional revenue stream, which may help to maintain agricultural operations. Therefore, adoption of the ordinances would be consistent with this goal. Consistent: The ordinance would prohibit the use of Short-Term Rentals on residentially zoned land. This maintains the housing stock for rental, affordable, market rate, and assisted housing. Therefore, adoption of the ordinances would be consistent with these policy. Consistent: STRs in Residential zoning districts in the coastal areas do not provide low cost accommodations for visitors to the County of Santa Barbara. Costs of STRs in the Coastal area of the County range from $300 a night for a one bedroom to over $1,000 per night for a three bedroom, and the majority of advertisements for STRs reviewed on hosting platforms required a threenight minimum stay. Further, STR would continue to be

11 Page 11 room rentals be fixed at an amount certain for any privately owned and operated hotel, motel, or other similar visitor-serving facility located on either public or private lands; or (2) establish or approve any method for the identification of low and moderate income persons for the purpose of determining eligibility for overnight room rentals in any such facilities. available in agricultural areas of the Coastal Zone. Therefore, adoption of the ordinances would be consistent with this policy. Land Use Element, Visual Resource Policy 2 Visual Resource Policy #4 Scenic Highway Element Santa Ynez Valley Community Plan Policy VIS- SYV-1 Santa Ynez Valley Community Plan Policy VIS- SYV-3 Conservation Element, Recommendation Santa Ynez Valley Community Plan Policy BIO- SYV-1 Land Use Element, Historical and Archaeological Sites Policy 1 Santa Ynez Valley Community Plan Policy HA- SYV-1.1 Santa Ynez Valley Community Plan Policy HA- SYV-2.1 Seismic Safety and Safety Element, Geologic and Seismic Goal 1 Land Use Element, Hillside and Watershed Protection Policy 1 Land Use Element, Hillside and Watershed Protection Policy 2 Santa Ynez Valley Community Plan Policy GEO- SYV-1.1 Seismic Safety and Safety Element, Goal 1 Seismic Safety & Safety Element, Flood Protection Goal 1 Seismic Safety & Safety Element, Flood Protection Objective 1 Land Use Element, Flood Hazard Area Policy 1 Santa Ynez Valley Community Plan Policy FLD- SYV-1 The Santa Barbara County Comprehensive Plan Santa Ynez Valley Community Plan Noise Element, Recommended Policy 1 Circulation Element Consistent: The use of STRs will mainly occur in existing dwellings. The existing dwellings would have complied with development criteria during the permit process. For those new STRs, they will be reviewed for consistency with applicable policies of the Comprehensive and Coastal Land Use Plans. Therefore, adoption of the ordinances would be consistent with these policies, goals, objectives and recommendations.

12 Page 12 Santa Ynez Valley Community Plan Policy CIRC- SVY-1 Santa Ynez Valley Community Plan Policy CIRC- SVY ORDINANCE COMPLIANCE 9.1 Ordinance Compliance with Agriculture Zoning Districts. The proposed ordinances are consistent with the remaining portions of the LUDC or Article II that would not be revised by these ordinances. In order to approve a LUP or CDP based on these proposed amendments, it still must be determined that the project is consistent with the whole of the LUDC or Article II, as applicable. Furthermore, the ancillary use of STRs on Agriculturally zoned lands does not change the below intents as the use will primarily be in existing structures. Article II AG-I - Agricultural I The purpose of the Agricultural I zone is to designate and protect lands appropriate for long-term agricultural use within or adjacent to urbanized areas, and to preserve prime agricultural soils. AG-II - Agricultural II The purpose of the Agricultural II zone is to establish agricultural land use for large prime and non-prime agricultural lands in the rural areas of the County (minimum 40 to 320 acre lots) and to preserve prime and non-prime soils for long-term agricultural use. LUDC AG-I - Agricultural I The AG-I zone is applied to areas appropriate for agricultural use within Urban, Inner Rural, Rural (Coastal Zone only), and Existing Developed Rural Neighborhood areas, as designated on the Comprehensive Plan maps. The intent is to provide standards that will support agriculture as a viable land use and encourage maximum agricultural productivity. AG-II - Agricultural II The AG-II zone is applied to areas appropriate for agricultural land uses on prime and non-prime agricultural lands located within the Rural Area as shown on the Comprehensive Plan maps. The intent is to preserve these lands for long-term agricultural use.

13 Page 13 The use of STRs could supplement the income of the agricultural operations further supporting the use of agriculturally continuing through times of uncertainty. The existing structures with the use of STR will have been previously permitted to be located outside of prime soils and to minimize impacts to the agricultural operations. 9.2 Ordinance Compliance with Residential Zoning Districts. The prohibition of STRs in Residential zoning districts is also supported by the purpose and intent of residential zones. The LUDC and Article II describes thirteen residential zones, each unique in character. Main points from these purpose and intent section of the zoning codes are: to protect the residential characteristics of an area and to promote a suitable environment for family life. to ensure that development protects the residential character of the area and is consistent with sound standards that promote public health, safety, and welfare. (to) provide housing opportunities which meet the needs of the community, including housing for low, moderate, and middle income households, families with children, senior citizens, and other identified households in need. Prohibiting STRs in residential zoning districts will protect residential areas and maintain them for single-family and multi-family uses. The housing market will cycle in traditional ways allowing new homeowners to enter the market as others move up. Persons who need affordable housing will have more options due to the units not being in the STR market. Renters will also benefit from this prohibition, as more units will be in the long-term rental market and out of the transient markets. 9.3 Ordinance Compliance with Commercial and Mixed Use Zoning Districts. The ordinance proposes to allow the use of STRs through a LUP or CDP without any additional regulations in the zoning districts of MU, CM-LA, C-1, C-2, C-3, CH, and C-V Zoning Districts in the LUDC and in C-1, C-2 and C-V in Article II Zoning Districts. Main points from these purpose and intent section of the zoning codes are: zones appropriate for both retail and service commercial activities that serve the local community and in the Coastal Zone, the traveling public as well appropriate for retail business and commercial needs will be a vibrant mix of uses along Bell Street with retail on the ground floor fronting Bell Street and housing above and in buildings fronting secondary streets of the corridor zone is applied to areas of unique scenic and recreational value appropriate for tourist recreational development areas that are suited for mixed-use development (i.e., residential, commercial and/or industrial uses) because of their location in relation to existing or planned land uses of adjacent areas and infrastructure improvements Due to the commercial nature of the use of STRs, it is appropriate that they to be allowed in these zoning districts as STRs closely resemble the commercial and visitor serving operations common in the districts.

14 Page 14 The STR ordinance would be consistent with the remainder of the zoning ordinance provisions. Each LDP or CDP for a STR will be reviewed against the STR supplemental application and other regulations set forth in the zoning ordinances APPEALS PROCEDURE The recommendation of the Planning Commission will be automatically sent to the Board of Supervisors, therefore no appeal is required 12.0 ATTACHMENTS Attachment A Planning Commission Resolution Exhibit 1 Board of Supervisors Ordinance Amending the LUDC as set forth in Case No. 16ORD Attachment B Planning Commission Resolution Exhibit 1 Board of Supervisors Ordinance Amending Article II as set forth in Case No. 16ORD Attachment C Findings (Case No. 16ORD ) Attachment D CEQA Notice of Exemption (Case No. 16ORD ) Attachment E Findings (Case No. 16ORD ) Attachment F CEQA Notice of Exemption (Case No. 16ORD ) Attachment H Agricultural Preserve Advisory Committee Letter Attachment G Short-Term Rental Supplemental Application Example G:\GROUP\COMP\Ordinances\Short Term Rentals\Public Hearings\Planning Commissions\County Planning Commission\ \PC Staff report doc