4.05.040   PERMIT REQUIRED; PROCESSING OF PENDING APPLICATIONS AND RENEWALS OF PERMITS.
   .010   The requirements of this chapter shall be met before a short-term rental permit is issued in response to a pending application that is approved by the Planning Director and before a short-term rental permit is renewed. No person shall undertake, maintain, facilitate, advertise for rent, list or rent a dwelling unit as a short-term rental within the city that does not comply with the requirements of this chapter.
   .020   The Planning Director is authorized to issue short-term rental permits pursuant to this chapter.
   .030   Except for Pre-Moratorium Short-Term Rentals, short-term rentals shall not be allowed as an allowable use on any property within Single-Family Residential Zones (as defined in Section 18.04.020 of this code), Multiple-Family Residential Zones (as defined in Section 18.06.020 of this code), or any other zoning district in the city, including all underlying or base zones, overlay zones and adopted specific plans, in which residential uses are a permitted or conditionally permitted use. Further excepted are those short-term rentals within the C-G General Commercial Zone that have been authorized pursuant to a conditional use permit approved in accordance with the provisions of this code prior to the adoption of the moratorium on September 15, 2015, which short-term rentals may obtain new permits, for which the application and processing shall be in accordance with such information as the Planning Director deems reasonably necessary for the purposes of this chapter, and such permits shall be subject to the operational requirements, provisions for enforcement, violations and penalties, and other requirements of this chapter. It is unlawful for any person or entity to rent, offer to rent, or advertise for rent a dwelling or dwellings to a person or group of persons as a short-term rental without a short-term rental permit approved in accordance with the provisions of this chapter.
   .040   The short-term rental of a dwelling is subject to the city's business license requirements (Chapter 3.04 of this code) and the transient occupancy tax requirements (Chapter 2.12 of this code).
   .050   It is a violation of the chapter for an owner of a dwelling to establish or operate a short-term rental without first obtaining and maintaining both a valid business license for each property to be used as a short-term rental pursuant to Chapter 3.04 of this code and a short-term rental permit for each property to be used as a short-term rental.
   .060   It is a violation of this chapter for any person to establish or operate a short-term rental in any zoning district in the city unless: (1) an owner has been issued a short-term rental permit and, after the term of the permit expires, the owner timely applies for and obtains a renewal thereof and thereafter continues to hold a current short-term rental permit pursuant to this chapter; or (2) an applicant of a pending application is issued a short-term rental permit and, after the term of the permit expires, said applicant timely applies for and obtains a renewal thereof, and thereafter continues to hold a current short-term rental permit pursuant to this chapter; or (3) the short-term rental is within the C-G General Commercial Zone and has been authorized pursuant to a conditional use permit approved in accordance with the provisions of this code prior to the adoption of the moratorium on September 15, 2015.
   .070   Following August 11, 2016, a pending application will continue to be processed by the Planning Director subject to the procedures, terms, conditions and requirements of this chapter in effect as of August 11, 2016, as the same may be amended from time to time, and subject, further, to the following additional terms and conditions:
   .0701   The Planning Director shall notify in writing each applicant of a pending application whether and what supplemental information or documentation will be needed in order to enable the Planning Director to determine that such application is complete and complies with the application requirements of this chapter in effect as of August 11, 2016, as the same may be amended from time to time. The Planning Director may request an additional fee, as set by resolution of the City Council, to defray the costs of continuing to process a pending application with the supplemental information and documentation required by the Planning Director. The applicant shall have thirty (30) calendar days in which to submit needed supplemental information or documentation and such additional fee as required by the Planning Director.
   .0702   Upon receipt of the supplemental information and documentation requested by the Planning Director pursuant to the immediately preceding paragraph and a determination by the Planning Director that a pending application remains incomplete or fails to provide the information and documentation required by this chapter, the Planning Director shall notify the applicant in writing, and the applicant shall have ten (10) calendar days (or longer as authorized by the Planning Director) in which to submit needed supplemental information or documentation as specified by the Planning Director.
   .0703   The failure of the applicant of a pending application to timely submit needed supplemental information or documentation may be cause for denial of the pending application.
   .0704   If a pending application is approved by the Planning Director, the Planning Director will issue a short-term rental permit, which will be valid from the date of its issuance up to and including July 31, 2017, at which time said short-term rental permit shall be of no further force, validity or effect, and use of the dwelling for a short-term rental that is the subject of said permit shall cease, unless an application for renewal has been timely filed and thereafter approved by the Planning Director in accordance with subsection .080 of this section. This paragraph recognizes that a final determination by the Planning Director on a pending application may not occur before August 11, 2016, but that the Planning Director will continue, nevertheless, to process a pending application in accordance with this subsection .070.
   .080   Any owner operating a short-term rental under the permission of a short-term rental permit duly issued prior to August 11, 2016 who desires to continue operation under the requirements of this chapter shall submit an application for renewal of a short-term rental permit to the Planning Director no later than sixty (60) days following August 11, 2016. If such a timely and complete application for renewal is submitted, the short-term rental permit duly issued, valid and in effect prior to its expiration date shall be extended until the date a determination is made by the Planning Director to approve or deny such application for renewal.
   .090   Any owner operating a short-term rental under the permission of a short-term rental permit duly issued under paragraph .0704 or renewed under subsection .080 of this section, who desires to continue operation under the requirements of this chapter after July 31, 2017, shall submit an application for renewal of a short-term rental permit to the Planning Director no later than July 31, 2017 and annually thereafter not later than the last business day in the month of July of each succeeding year, accompanied by the fee or fees established by resolution of the City Council. To be deemed complete, a renewal application shall either include (i) all of the information and documentation required by this chapter, or (ii) all of the information required on a shortened renewal application on a form to be provided by the city, or (iii) be otherwise deemed complete by the city. If such a timely and complete application for renewal is submitted, along with the applicable fee or fees, the short-term rental permit duly issued, valid and in effect prior to its expiration date shall be extended until the date a determination is made by the Planning Director to approve or deny such application for renewal.
   .100   All applications for the renewal of a short-term rental permit filed on or after August 11, 2016 will be processed by the Planning Director subject to the procedures, terms, conditions and requirements of this chapter in effect as of August 11, 2016, as the same may be amended from time to time.
   .110   Except as otherwise provided for pending applications in subsection .070 of this section, in the event that the Planning Director determines that an application for renewal of a short-term rental permit is incomplete or fails to provide the information and documentation required by this chapter, the Planning Director shall notify the applicant in writing, and the applicant shall have thirty (30) calendar days (or longer as authorized by the Planning Director) in which to submit needed supplemental information or documentation as specified by the Planning Director. The city reserves the right to request additional information and documentation from an applicant regarding an application for renewal of a short-term rental permit and to accept responses to requests for supplemental information or documentation. If a timely and complete application for renewal of a short-term rental permit is submitted, the short-term rental permit previously and duly issued, valid and in effect prior to its expiration date shall be automatically extended until the date a determination is made by the Planning Director to approve or deny such application for renewal.
   .120   No additions to or alterations of structures on a short-term rental property will be considered for the purpose of increasing the number of bedrooms or the square footage of a dwelling in connection with an application for renewal of a short-term rental permit in excess of the number of bedrooms and the square footage of the dwelling depicted in the floor plans that were approved for permits issued prior to the adoption of the moratorium on September 15, 2015, or that were approved for permits during the period of the moratorium, or that were set forth in pending applications, unless otherwise permitted pursuant to the short-term-rental process that was utilized by the city prior to the adoption of the moratorium on September 15, 2015. Remodels that do not add square footage or bedrooms are not barred by this subsection. (Ord. 6299 § 1 (part); May 13, 2014: Ord. 6374 § 1 (part); July 12, 2016: Ord. 6404 § 1 (part); April 4, 2017.)