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HomeMy WebLinkAboutOrdinance 416, Prohibiting Short-Term Rentals ORDINANCE NO. 416 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SARATOGA ADOPTING ARTICLE 15-42 PROHIBITING SHORT-TERM RENTALS The City Council of the City of Saratoga finds that: 1. Short-term rentals of residential property are not a use allowed by the City Code. Residents and visitors to the City will better understand this prohibition if it is stated explicitly in the City Code. 2. Maintaining the prohibition on short-term rentals of residential property will help ensure the health and safety of residents throughout Saratoga by protecting neighbors from nuisance situations, maintaining the City's residential housing stock, ensuring compliance with state laws prohibiting short-term rentals of accessory dwelling units, and protecting neighborhood character. Enforcing the prohibition will advance all these goals and will protect the health and safety of persons renting short-term rentals. 3. The City Council referred an earlier version of this ordinance to the Planning Commission, and the Planning Commission held a duly noticed public hearing on the ordinance on December 10, 2025. Following consideration of all testimony and written materials, recommended that the City Council revise that ordinance to prohibit short-term rentals, provide clear enforcement procedures,assess significant fines for violators, and implement the Short-Term Rental Facilitator Act of 2025. This ordinance reflects these recommendations. 4. The City Council of the City of Saratoga held a duly noticed public hearing on January 21, 2026,and after considering all testimony and written materials provided in connection with that hearing, introduced this ordinance and waived the reading thereof. Therefore, the City Council of the City of Saratoga hereby ordains as follows: Section 1. Adoption. The Saratoga City Code is hereby amended as set forth in Exhibit A. Section 2. Severance Clause. The City Council declares that each section, sub-section, paragraph, sub-paragraph, sentence, clause and phrase of this ordinance is severable and independent of every other section, sub- section, paragraph, sub-paragraph, sentence, clause and phrase of this ordinance. If any section, sub-section,paragraph, sub-paragraph, sentence, clause or phrase of this ordinance is held invalid, the City Council declares that it would have adopted the remaining provisions of this ordinance irrespective of the portion held invalid, and further declares its express intent that the remaining portions of this ordinance should remain in effect after the invalid portion has been eliminated. Ordinance 416 Page 2 Section 3. California Environmental Quality Act This legislation is categorically exempt from CEQA pursuant to Public Resources Code Sections 15061(b)(3). CEQA applies only to projects that have the potential of having a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment,the activity is not subject to CEQA. In these circumstances,the minor amendments are clarifying only and would have a de minimum impact on the environment. Section 4. Publication. A summary of this ordinance shall be published in a newspaper of general circulation of the City of Saratoga within fifteen days after its adoption. Following a duly noticed public hearing, the foregoing ordinance was introduced at the regular meeting of the City Council of the City of Saratoga held on January 21, 2026, and was adopted by the following vote on February 4, 2026. AYES: COUNCIL MEMBERS FITZSIMMONS,ZHAO, VICE MAYOR WALIA NOES: COUNCIL MEMBER AFTAB, MAYOR PAGE ABSENT: NONE ABSTAIN: NONE 14, L' Chuck Page, Mayor ATTEST: Britt Avrit, MMC, City Clerk APPROVED AS TO FORM: DATE: j Z l Richard Taylor CITY ATTORNEY Ordinance 416 Page 3 Exhibit A—Adoption of Article 15-42—Short-Term Rentals The Saratoga Municipal Code is hereby amended to include the following new Article 15-42 prohibiting Short-Term Rentals. Article 15-42 - SHORT-TERM RENTALS Sec. 15-42.010. Short-Term Rentals (a) No person shall rent any residential dwelling, or any portion of a residential dwelling, to any other person for 30 consecutive days or less, whether in exchange for monetary consideration or any form of any non-monetary consideration, including trade, fee, swap or other consideration in lieu of payment. For purposes of this section, "residential dwelling" means a private structure that is designed and available, pursuant to applicable law, for use and occupancy by one or more individuals. "Residential dwelling" does not include a commercially operated hotel, motel, or bed and breakfast inn. (b) No property owner or tenant, or any agent or representative thereof, shall (i) arrange for or otherwise facilitate or(ii)post, publish, circulate, broadcast or maintain any advertisement of, a rental prohibited by the provisions of this section. Each rental arranged or facilitated and each day that an advertisement is posted, published, circulated, broadcast or maintained by such person in violation of this section is a separate offense. (c) Nothing in this section shall be deemed to excuse the non-payment of any business license fee that may be due pursuant to Article 4-06 of this Code or transient occupancy tax that may be due pursuant to Article 5-25 of this Code, nor shall payment of such transient occupancy tax or the collection thereof by the City be deemed to authorize any activity otherwise prohibited by this section. (d) The Short-Term Rental Facilitator Act of 2025 set forth in Government Code Title 5, Division 1, Part 1, Chapter 4.6 (sections 50990 et seq.) applies within the boundaries of the City of Saratoga. All terms used in this section shall have the meaning set forth in the Act unless otherwise specified. Upon request by the City Manager or the Manager's designee each short-term rental facilitator shall report, in the form and manner prescribed in the request, the physical address, including nine-digit ZIP Code, of each short-term rental during the reporting period and shall provide additional information requested if the information provided is not sufficient to identify a specific short-term rental at the provided address. Sec. 15-42.020. Enforcement. (a) Violations of this Article shall be an infraction subject to the following fines: (1) A fine not exceeding one thousand five hundred dollars ($1,500) for a first violation. (2) A fine not exceeding three thousand dollars ($3,000) for a second violation of the same ordinance within one year. Ordinance 416 Page 4 (3) A fine not exceeding five thousand dollars ($5,000) for each additional violation of the same ordinance within one year of the first violation. (b) These fines shall not apply to a first-time offense of failure to pay a business license fee. 2008724.3