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  Agenda Item   20.    
City Council Meeting
Meeting Date: 08/21/2018  
FROM: Bill Gallardo

Subject:
A proposal to amend definitions related to wireless facilities, prohibit short-term rentals, and amend title 20 of the City of Brea Zoning Ordinance. These amendments will modify provisions for wireless communication facilities on property or buildings owned by the city or in city right-of-ways and prohibit short-term rentals of residential properties and the amendments are proposed for adoption as part of an omnibus ordinance.
RECOMMENDATION
Introduce Ordinance No. 1204 for first reading, approving Zoning Ordinance Amendment No. 18-01, a proposal to amend definitions related to wireless facilities, prohibit short-term rentals, and amend Title 20 of the City of Brea Zoning Ordinance. These amendments will modify provisions for wireless communication facilities on property or buildings owned by the City or in City right-of-ways and prohibit short-term rentals of residential properties.
BACKGROUND/DISCUSSION
Municipal Codes require periodic updates to; ensure consistency with City policies and State law, and to improve clarity and better serve the public. Staff has identified two provisions in Title 20 of the Brea Municipal Code requiring review and revisions. The goals for this omnibus amendment are to:

     • Provide clarity related to certain Zoning Code provisions;
     • Ensure internal consistency; and
     • Improve procedures.

The updates proposed below consist of revising definitions, updating standards and creating a new chapter in the Brea Zoning Code. If approved, the proposed amendments will be adopted as part of an “omnibus” ordinance. An omnibus ordinance is the packaging of a collection of amendments processed together. This Code amendment update request would be the City’s first omnibus amendment for 2018. 

Staff has identified updates needed to the Zoning Code due to changes in technology, land use activities and a need to clarify existing policy and practice.  As part of this review process, Staff worked with other departments and divisions and the City Attorney to review and consider the proposed changes. Additionally, Staff surveyed and analyzed codes and policies from other agencies as appropriate and applicable. The result of this effort is two amendments to Sections of the Brea Zoning Code. The following provides an overview of the current Code, the issue and the proposed amendment:
 
Code Amendment 1: Modification of requirements for Wireless Communication Facilities within the Public Right-of-Way
 
Overtime, wireless service technology and infrastructure has changed to include smaller antennas designed to enhance service for a localized area, fix coverage gaps or address special capacity needs. New wireless technology is designed to be compact and differs from the traditional monopole wireless communication facilities. It is common for wireless carriers to propose small single antennas mounted on existing City infrastructure in the public right-of-way (i.e. light poles, traffic signals) in various locations throughout the City.
 
Section 20.68.030 of Chapter 20.00 of the Brea Zoning Code provides for the definition of “Minor Wireless Communication Facility” and “Major Wireless Communication Facility”. The Brea Zoning Code defines facilities mounted in any manner on property or buildings owned by the City or in rights-of-way as Major Wireless Communication Facilities. Carriers seeking to locate wireless facilities on City-owned structures or in the public right-of-way must request and obtain approval of a Conditional Use Permit by the Planning Commission. The Brea Zoning Code does not provide a process for smaller antennas in several locations.  Most cities have responded to the change in industry application and change in technology by adopting a review and consideration process tailored to this new wireless facility. 
 
Staff Recommendation
 
To address this need, improve efficiency and respond to  wireless carriers seeking to locate on multiple sites on public property or in the public right-of-way and to ensure appropriate and quality design, maintenance, safety and compatibility, the definition of Major and Minor Wireless Communication Facility is proposed to be amended. The amended definition would classify such requests as a Minor Wireless Communication Facility.  These facilities would require the carrier to obtain a master agreement subject to City Council approval. The locations, design, size, number and other specifics would be reviewed pursuant to Section 20.408.040 of the Brea Zoning Code (Plan Review). The proposed amendment is a comprehensive approach to address this change in technology. The City of Brea would continue to review the specific details of the proposed antenna and the terms of use of public property or public right-of-way would be secured through the terms specified in the master agreement.
 
The definition of “Minor Wireless Facility” and “Major Wireless Facility” in Section 20.68.030 of Chapter 20.00 of the Brea Zoning Code is proposed to be amended as outlined in Attachment 2.
 
Code Amendment 2: Short-term Residential Rental (STR) Definition and Standards
 
Renting rooms or an entire home is allowed by the Zoning Code. The Municipal Code provides the limitations and expectations to allow for these types of rentals. Current policy and practice considers rentals to be 30 days or more. This is based on historical practice of residential rentals by lease or month-to-month contract to allow individuals to temporarily reside in a residential dwelling.  This practice has been maintained to ensure the residential character of neighborhoods not only in Brea but throughout the region. Any restrictions on renting rooms or homes have been in place to ensure potential impacts on quality of life and adjacent properties are reduced, addressed and avoided. 
 
Generally, Brea’s Code indicates occupancy of a structure by transients for dwelling, lodging, or sleeping purposes for a period of thirty (30) consecutive calendar days or less is considered a temporary use. Temporary lodging falls under this category considered transient, as defined in Chapter 3.16 of the Brea Municipal Code and Section 202 of the Building Code. This definition is intended to describe land uses such as hotels and motels designed for occupancy on a short-term basis. The current practice in Brea has been based on this information and has been applied to any rentals in residential neighborhoods for less than 30 days. In the Brea Zoning Code, short-term rentals are not addressed specifically to be expressly permitted or prohibited causing confusion and issues related to enforcement. 
 
Growth of online platforms including Air B&B and VRBO have made renting rooms or homes for short periods of time throughout the year a cottage industry throughout the world.  Short-term rentals are now accessible beyond the typical tourist destination cities and present opportunities and challenges for residential neighborhoods. The purpose of identifying uses allowed in residential neighborhoods is to protect the quality of life, character of the neighborhood and ensure compatibility with the nature of residential living.  It is common for cities to review activities and land use practices to ensure they are reflective of the values and goals for the community. 
 
Recently, the City of Brea has received numerous complaints from residents regarding impacts of STRs in residential neighborhoods. These impacts range from excessive noise, parking, accumulation of trash and property maintenance. The City Council directed Staff to conduct research on STR regulations, to identify potential changes to the Zoning Code to ensure neighborhood compatibility and preserve their residential character.

Orange County Short-term Rental Survey

Staff compiled information using a study conducted by the League of California Cities, where approximately 67 cities were surveyed. Staff supplemented this information with a survey specifically targeting cities in Orange County, see Attachment 4. The survey determined 27 of the 34 Orange County cities prohibit STRs through land use regulations, see Figure 1 – OC STR Survey Results. The City of Anaheim adopted an ordinance to prohibit STRs after initially allowing them through a permitting process.
 
Four Orange County cities regulate STRs using a fee-based, revocable permit system with strict conditions proactively enforced for compliance. These performance conditions set operating parameters for occupancy limits, noise controls, housekeeping/property maintenance restrictions, which are designed to mitigate impacts to the neighborhood. However, three of the four cities, including; the City of Laguna Beach, Dana Point and San Clemente, have recently modified their ordinance to include additional regulations and performance conditions in an effort to minimize the nuisance issues associated with STR properties and their impact on residential neighborhoods. The City of Newport Beach prohibits STRs in all single-family residential zones and allows STRs with regulations in mixed-use, multi-family and commercial zones.

The Planning Commission considered the proposed amendment at the July 24, 2018 public hearing. The Planning Commission unanimously recommended the City Council adopt the amendment to prohibit STRs as proposed. Additionally, the Planning Commission directed Staff to conduct research to address interest by property owners to maintain the STR concept in residential neighborhoods so long as property owners are present on site. 

Since the July 24, 2018 meeting staff has been reviewing information provided by cities throughout Orange County on the subject as well as any legal issues and enforcement challenges. There is well established case law providing cities with the authority to regulate STRs as a land use matter. The City has the authority to regulate the land use impacts associated with STRs including; noise, traffic, safety, and parking, but must ensure all regulations governing personal conduct apply equally to guests of STRs and neighborhood residents. 

Staff has found significant enforcement issues when trying to regulate between on-site and absentee owners. There are several cities in the County that have worked to find a potential solution to this request. Recently, the City of Fullerton was looking at alternative methods to regulate STRs in an effort to allow diversified lodging options for visitors, provide income opportunities for homeowners, and the ability to control land use impacts in existing neighborhoods. The City of Fullerton explored various options to balance the needs of their community; including, regulating operational standards to protect the neighborhood character, applying building and safety criteria to enhance safety measures, and increase enforcement, see Attachment 5. After an extensive fifteen month outreach effort with residents and stakeholders, the City of Fullerton was presented with similar challenges as identified by staff. Ultimately, the City of Fullerton decided not to proceed with the adoption of their proposed STR ordinance since there was no clear option to ensure the interests and needs of everyone in the community were heard and balanced.

Traditional home-shares allow homeowners the option to share or rent a portion of their home at a reduce cost in exchange for support or help in the home. This ordinance amendment will not preclude home-shares in a residence that have month to month tenancies and long-term tenants. Therefore, home-shares that exceed the 30-day occupancy requirement may continue to exist. Owner-occupied home-shares under the 30-days occupancy requirement are defined as a STR due to their transient use in a residential zone.
 
Staff Recommendation
 
Currently, STRs are not listed or defined in the Brea Zoning Code and the proposed update maintain the City’s current practice and clarify the Code by expressly prohibiting this specific use in residential zones. Staff is proposing adding a new chapter in the Brea Zoning Code outlining a specific prohibition of STRs in all residential zones. This proposed section would apply to all residential zones, planned communities and specific plans in the City of Brea. The intent of this Chapter is to maintain existing policy, strengthen the legal defensibility of the City’s Code, and centralize all pertinent language and make it easily accessible for the public.
 
The proposed Section of 20.71 of Chapter 20.00 is proposed to be included as outlined in Attachment 2.

ENVIRONMENTAL ASSESSMENT
The City of Brea has determined that the proposed project is categorically exempt from review under the California Environmental Quality Act (“CEQA”) (California Public Resources Code Section 21000, et seq.), pursuant to State CEQA Regulation 15061(b)(3) (14 Cal. Code Regs. § 15061(b)(3)) covering activities with no possibility of having a significant effect on the environment.
COMMISSION/COMMITTEE RECOMMENDATION
On July 24, 2018, the Planning Commission acted (5-0) to recommend approval of Zoning Ordinance Amendment No. ZOA 18-01 to the City Council.
FISCAL IMPACT/SUMMARY
The proposed Code Amendment has no fiscal impact anticipated.
RESPECTFULLY SUBMITTED:
William Gallardo, City Manager
Prepared by: Jessica Magaña, Associate Planner
Concurrence: Jennifer A. Lilley, AICP, City Planner
 
Attachments
ATTACHMENT 1 – Public Hearing Legal Notice
ATTACHMENT 2 – Draft Ordinance ZOA 18-01
ATTACHMENT 3 - Code Amendment Summary
ATTACHMENT 4 – Orange County Short-term Rental Survey Results
ATTACHMENT 5 – City of Fullerton Short-term Rental Documents

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