South Lake Tahoe closer to new Vacation Rental Ordinance

SOUTH LAKE TAHOE, Calif. - Eight hours, and testimony from 29 people later, the City Council has crafted a new ordinance that attempts to strike a balance between locals and vacation home rentals (VHRs).

"While tourism is the lifeblood in our town, the residents are the heart and soul," said SLT City Councilman Jason Collin.

Passionate testimony from all sides was presented at Tuesday's meeting as has been the case for the 20+ meetings on the subject of VHRs.

The direction from the City Council to staff is to create an ordinance that will contain the following:

1. Set a cap to the permitted vacation homes at 1,400.
2. Density of approved vacation homes will be one per 150 feet.
3. Owners must comply to the rules of vacation homes when they have a permitted house except for an exception (keep reading).
4. Camping in yard and driveways at permitted vacation homes is banned. This includes tents and RVs.
5. Concerning the pending 110 permits: All applications will be processed through the Planning Department and Zoning Administrator hearings. Those not approved by the anticipated December 7 ordinance date will have to adhere by the new ordinance.
6. Bear boxes will be required as follows: Homes up to 2,500 sq. ft. will be required to have a two-can bear box, 2,501 to 3,500 sq. ft. a three-can box, 3,501 sq. ft and above must have a four-can bear box and they must contain all garbage, and if the bear boxes aren't enough, the homeowners must get with South Tahoe Refuse for additional pickups.
7. Occupancy will be two people per bedroom plus two. For example, eight people may stay in a three-bedroom home, six in a two-bedroom.
8. There will be an additional $300 annually added to the VHR permit to pay for an extra three staff members to be hired for enforcement.
9. There are no more warnings for owners. Three violations in 24-months will result in revoking of permit (three strikes and you're out).
10. HOAs may have exception for rules if their Covenants, Conditions & Restrictions (CC&Rs) state what they are. The Tahoe Keys HOA already bans bear boxes.

The rules would not be in place for VHRs located in the Tourist Core Area.

The Council said they tried to compromise on all aspects of the ordinance and take into consideration the needs of the public. The amount of Tourist Occupancy Tax (TOT) is needed for the City's budget as well as funding of the new SLT Recreation Center. But there was agreement that the makeup of neighborhoods has changed, prompting some to call for their ban.

Peggy Bourland of the Tahoe Neighborhoods Group said they wanted a density of one VHR per 250 feet. She said the problem is broken zoning laws, and the symptoms are noise and trash. She also said the group is ready to take the ordinance to the voters if they didn't get their 250 feet.

"The community is ready to take back neighborhoods," she said.

City staff determined the maximum number of VHRs in South Lake Tahoe would be 1,288 permitted vacation rentals if the buffer zone were set at one VHR per 150 feet and just 573 at 250 feet.

Councilwoman Brooke Laine, who grew up in South Lake Tahoe, said its always been clear that "we all had jobs based on tourism."

"At 250 feet we would bring the industry down," added Mayor Pro Tem Wendy David.

The needs of the tourist have changed and not all of them look for motels. Many want the family experience that a vacation home rental provides, from being a temporary local to a bonding vacation time for family.

Consensus from all sides is that bad behavior of renters shouldn't be tolerated, and the heightened enforcement is meant to eliminate them from the picture.

The City will also look into software such as Host Compliance which was demonstrated at a recent council meeting. Staff will look at other comparable companies and bring it back to council for purchase.

Owners who use their permitted VHR for events can apply for a permit if the home was used for purposes other than housing. The SLT Police Department would have a form they'd have to fill out 30 days or more prior to the event. They'd have to acknowledge the event would not be held in exchange for cash, preventing a practice of some owners to let people have weddings at their home. This process would alert neighbors of the time and date of the event.

Compromise with the public wasn't the only thing, but compromise between councilmembers was as well. They weren't all in agreement of each aspect but all acknowledged to give it a try for 18 months and see if anything needed to be adjusted.

Brooke Laine suggested baby steps and try one aspect of the ordinance at a time to better determine what works.

The new ordinance is to make everything clear and concise with no grey areas. The new code will also contain definitions as another way to have a "clear blue line" on the VHR ordinance.

City Staff will bring back an ordinance to City Council on October 17 for a first reading and vote. The second reading would be November 7 and the ordinance would take effect on December 8, 2017.