On August 13, 2019 staff presented a draft short term rental ordinance, which was modeled after the City of Roseville’s short term rental ordinance to provide regional consistency, for City Council consideration. The City Council provided feedback which was incorporated and on October 8, 2019, the City Council approved an Ordinance adding Chapter 5.22 to the Rocklin Municipal Code regarding Short Term Rentals. Following the adoption of the Short Term Rental Ordinance, staff created an on-line registration form and used the City’s website and social media outlets to make operators of short term rentals aware of the need to register their short term rental with the City’s Community Development Department; however, there was little success gaining voluntary compliance.

In July of 2020, the City Council received a letter from a citizen expressing concerns about issues that have been created as a result of a short term rental that was operating adjacent to their home. At the July 14, 2020 City Council meeting there were seven citizens, including the aforementioned letter author, who spoke during the Citizens Addressing the City Council portion of the agenda noting concerns with the City’s short term rental Ordinance and describing issues stemming from a short-term rental in the Rustic Hills neighborhood. This short-term rental was not registered with the City per the Ordinance requirements.

Following those complaints, staff from the Community Development Department, the City Attorney’s and the Police Department revisited the Ordinance to determine if it contained adequate performance standards and enforcement mechanisms should the City encounter other problematic short term rentals. The review concluded that the City’s Ordinance provides adequate performance standards and opportunities to revoke, suspend or modify a permit, as well as escalate to a citation if determined to be necessary, and there were no recommended changes. It is also staff’s belief that had the short term rental in the Rustic Hills neighborhood been correctly registered with the City, many of the concerns noted by the neighbors could not have legally happened. In the event that violations had continued, the City could have moved forward with due process disciplinary action against the property owner in a timely manner as allowed by the Ordinance.

For the City Council’s consideration, the City’s Ordinance contains the following performance standards and enforcement mechanisms:

Performance Standards (RMC 5.22.080)

A.   No permittee shall, for compensation, provide lodging for more than six people, or two people per number of bedrooms, whichever is greater, at any time in a short-term rental. Permittee shall not allow guests at the short term rental in excess of this limit after 10:00 p.m.

B.   No permittee shall rent the short-term rental to a person under the age of twenty-one, or rent to a person who is not also lodging at the short-term rental.

C.   No permittee may rent both a dwelling unit and an accessory dwelling unit on the same parcel. It is the intent of this section that only one dwelling is rented on a short-term basis per parcel.

D.   No permittee may rent a property for more than ninety days per year as a short-term rental.

E.   The permittee or designated secondary contact must be able to be onsite and respond to any complaints within thirty minutes of notification, regardless of time of day.

F.   All parking associated with the operation of the short-term rental shall be onsite or on the street located in front of the subject parcel if on-street parking is permitted, and in compliance with all provisions of the city Code.

G.   A permittee shall post a copy of the short-term rental permit in a conspicuous place inside the short-term rental.

H.   All persons operating a short-term rental shall identify the city short-term rental permit number in any advertisement for that rental.

I.    No permittee shall allow any special event that would otherwise require a city permit.

J.   No permittee shall post on the exterior of the short-term rental or the parcel where the short-term rental exists, any sign or writing visible from the exterior of the short-term rental indicating that the dwelling is available for rent.

K.   All short-term rentals shall comply with any and all federal, state, and/or local laws, including, without limitation, all zoning requirements and the California Building Standards Code and Fire Code, as adopted by the city of Rocklin.

Suspending, Revoking, or Conditioning a Short Term Rental Permit (RMC 5.22.090)

A.   The director of community development may suspend, revoke, or add conditions to any short-term rental permit if the permittee has violated any provision of this chapter, or other local, state or federal laws statutes, rules or regulations.

B.   Additionally, upon issuance of any permit, the director of community development may limit the permit by any condition reasonably necessary to preserve the intent and purpose of this chapter.

C.   The conditions that the director of community development may impose on the short-term rental permit include, but are not limited to:

1. Requiring the permittee to remain at the short-term rental during certain hours while guests are present;

2. Reducing the number of guests that are allowed to lodge at the short-term rental;

3. Reducing the number of days in a year that the permittee is allowed to provide lodging;

4. Limiting the number of vehicles that may park at the short-term rental.

Grounds for Denying a Short Term Rental Permit (RMC 5.22.100)

The director of community development may deny an application for a short-term rental permit for any of the following reasons:

A.   The application is incomplete;

B.   The application contains a false or misleading statement or omission of a material fact;

C.  The short-term rental or permittee is currently or has been found to be in violation of, or under investigation for violation of, any local, state or federal laws, statutes, rules or regulations;

D.  The property owner or occupants of the short-term rental have been found to be in violation of any applicable local, state or federal laws, statutes, rules or regulations;

E.  The permittee or the property owner is delinquent on any payment to the city of any fees, penalties, taxes, or any other monies related to the short-term rental property including, but not limited to, transient occupancy taxes;

F.  If a short-term rental permit for the dwelling, property owner, or permittee was ever revoked or suspended;

G. The operation of a short-term rental is a threat to the public health, safety, or welfare; or

H. Any required application fee or renewal fee has not been paid.

Violations (RMC 5.22.130)

A.   Violation of any provision of this chapter may be charged as an administrative citation, misdemeanor, or infraction. It is unlawful for any person to operate a short-term rental without complying with the provisions of this chapter.

B.   Violations of this chapter are hereby declared to be a public nuisance. Additionally, a public nuisance may be deemed to exist if operation of the short-term rental results in:

1.   An excessive number of responses to the parcel, property, and/or short-term rental, from law enforcement officers during the term of the permit;

2.   Disruption to the free passage of persons or vehicles in the immediate neighborhood;

3.   Any other impacts on the neighborhood or public generally which are disruptive of normal activity in the area.

C.   The remedies and penalties provided herein are cumulative, alternative and non-exclusive. The use of one does not prevent the use of any other criminal, civil, or administrative remedy or penalty authorized by, or set forth in, the Rocklin Municipal Code. None of the penalties or remedies authorized by, or set forth in, the Rocklin Municipal Code shall prevent the city from using any other penalty or remedy under state statute which may be available to enforce this chapter or to abate a public nuisance.

As a means to encourage the registration effort and to ensure compliance with the City’s Ordinance and allow the City to collect Transient Occupancy Tax (TOT) from short term rentals, the City’s contracted with HdL to help determine what properties in Rocklin were being used as short term rentals. Between HdL and City staff, an initial list of potential short term rentals was established at 34 properties. The City’s Finance Department and Code Enforcement Division have reached out to those property owners to make them aware of the City’s short term rental registration requirements and the need to pay TOT if they are operating a short term rental. As of the writing of this staff report, 11 properties are now registered, and one is pending registration with the Community Development Department as short term rentals, and the TOT status of the 34 properties are noted in the table below.

It should also be noted that as a result of information provided prior to the receipt of the July 2020 letter from the citizen expressing concerns about issues that have been created as a result of the short term rental that was operating adjacent to them, Code Enforcement staff made contact with the property owner and requested that they cease and desist operation of the short term rental, which they did. Code Enforcement staff also informed the property owner and property manager of the City’s requirements to register with the City and advised them of the City’s short term rental performance standards. The property owner ultimately decided to no longer operate the short term rental and the property has since sold and is no longer being operated as a short term rental.

A short term rental permit fee will be recommended for City Council consideration in the future, to off-set expenses associated with administering the program.