Crowd expected as South Lake Tahoe City Council looks at vacation home rental ordinance

There are many sides to the South Lake Tahoe Vacation Home Rental (VHR) situation. On one side are the locals whose peaceful lives have been disturbed because they are the neighbors of vacation home rentals that are reportedly out of control with excess noise and trash that come from inconsiderate renters. On another side are the people wanting to enjoy South Lake Tahoe from the comfort of a private home. Yet another side are the second home owners who want to earn money from their vacation home. The City Council and law enforcement take up another side since they have to create and enforce the policies that will try and keep all sides happy.

Trying to satisfy all concerns will be the job of the South Lake Tahoe City Council on Tuesday, April 7, 2015 as they try to tackle the VHR ordinance.

During a March 24th VHR community workshop, passions ran high as those in attendance told City Manager Nancy Kerry what their concerns of the ordinance were. This meeting was a follow up of the February 17 council meeting where talk of an updated ordinance began.

There are five suggested changes that city staff is presenting to the Council on Tuesday:

(1) Waive First Reading (and Read by Title Only) of an Ordinance with recommended changes to Article VII - Vacation Home Rentals addressing enforcement of noise, occupancy, trash, compliance with health and safety regulations, direct creation and establishment of a Good Neighbor Policy and amending annual permit fees and fines for violations.

(2) Authorize the immediate recruitment for two temporary, full-time Enforcement Officers funded by available fund balance in the VHR program account and direct staff to include one permanent full-time Enforcement Officer in the FY 2015/16 budget.

(3) Authorize the immediate recruitment for full-time Code Compliance Auditor and upon hire, eliminate the current temporary, part-time Code Compliance Auditor position.

(4) Direct staff to amend the City’s VHR code dividing VHRs into two distinct categories: (a) Those operating in locations authorized for Tourist Accommodation Units (TAUs) and (b) those operating in community neighborhoods; new applications for VHRs operating in community neighborhoods will be required to notify neighbors and be evaluated for neighborhood impacts and address concerns of neighbors.

(5) Consider directing staff to return to the City Council with an ordinance to adopt a moratorium on the issuance of any new Vacation Home Rental permits in neighborhood residential areas where TAUs are currently not permitted. The moratorium would exclude locations where TAUs are permitted such as the Tourist Core Area, some lakefront and commercial areas. Options during the moratorium period include:
a. Consider including a grace-period provision prior to the enactment of the moratorium ordinance to allow VHRs currently operating illegally in neighborhoods without a permit, 90 days to submit a VHR application. Failure to submit an application during the grace period would subject illegal VHRs to a severe financial penalty at City Council’s discretion (eg: $5,000-$10,000) and prohibition of obtaining a VHR permit permanently. City Council could set the maximum period for collection of back taxes and penalties (eg: 90 days).
b. Consider including a provision if the moratorium is lifted, VHR applications in community neighborhoods will require notification of surrounding neighbors and evaluation of neighborhood impacts (if neighbors raise objections to the application of a VHR, a public hearing at the Planning Commission would be required to allow neighbors the opportunity to voice concerns); the Planning Commission would evaluate neighborhood impacts in the issuance of a permit.
c. Consider including a provision if the moratorium is lifted, that any substantial remodel or new construction in community neighborhoods be required to indicate on their building permit application if the home is intended as a Vacation Home Rental. If VHR intention is not indicated (which would require a public hearing under paragraph 4.b. above), the property would be prevented from applying for a VHR permit for a period of not less than three years.

Members of South Tahoe Association of Realtors (STAoR) are being asked to contact City Council members, send letters to the City Clerk as well as show up at Tuesday's meeting to show their concern about suggested changes to the ordinance. STAoR President Brooke Hernandez said in an email to members, "As we all know, this could be detrimental to our clients, private property rights, our businesses and the local economy."

Hernandez summarized the organization's stance with three main points: 1)Take Moratorium of new Vacation Rentals off the table. 2) Focus on enforcement. We are against adding more regulation. Enforce what is already on the books and see if the problems resolve. The City has the obligation to enforce its ordinances once they have been adopted and this has not been done. 3) Supportive of increases in permit fees if this helps to cover enforcement costs.

The City Council meeting starts at 9 a.m. at the Airport. It can also be viewed on line and on Charter Cable.