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Pismo Beach's hold on issuing short-term rental permits to new applicants received a longer shelf life and more scathing criticism from community members.
At its Aug. 2 meeting, City Council members unanimously voted to extend the moratorium issued in June by more than 10 months. City staff recommended the move in order to buy more time to research additional penalty methods against an increasing number of noncompliant short-term rental owners.
But not everyone was pleased with the length of the moratorium. Councilmember Sheila Blake wondered why it would take so long to figure out stricter rules.
"I think probably we were very naïve in assuming that we would pass an ordinance and people would actually follow the rules. Part of the thing that we had to put this into action is that people were abusing the vacation rentals and all the other classifications we've made with people wanting to rent out their bedroom, garage," Blake said at the meeting. "What are the stages in compliance when people flout all the rules and are saying, 'Nah I'm not gonna pay anything, just pay me, and we are in business?' How do we regulate these things properly?"
City Community Development Director Matt Downing informed her that staff needed more time because they were busy working on Pismo Beach's General Plan/Local Coastal Plan update. City Attorney David Fleishman added that regulations could be enforced through simple fines, revoking permits, and moving noncompliant cases to civil court.
"The ultimate is a criminal violation; we could ask the court to put someone in jail for six months for a $1,000 fine under a criminal statute," Fleishman said at the meeting. "It's a matter of last resort; I rarely turn to that in these types of cases."
Councilmember Marcia Guthrie also expressed her frustration, demanding more robust enforcement that's in line with what's been approved by other coastal cities and the California Coastal Commission.
"This short-term rental has contributed to the housing crisis because we have good rentals that are now a cash cow for people that wanna use them as vacation rentals," Guthrie said. "For me, I would like more strict stringent rules in place. We have a downtown core, which we have accepted that's where most of our vacation rentals are going to be."
Much like when the city first issued the moratorium this summer, Pismo Beach residents from short-term rental owners to their neighbors criticized the handling of the situation. Previously, the city received roughly a dozen letters complaining about a noncompliant rental on N. Silver Shoals Drive. By August, a new set of correspondence arrived, pointing fingers at a property on Karen Way.
"We were never made aware that this property would be a STVR [short-term vacation rental], neither by the homeowner nor by the city. This is in direct violation of the city's policies," one of the letters stated. "To our knowledge, the homeowner has not lived on the property for the required 183 of 365 days. Instead, there has been a steady stream of visitors, often with more cars than could be accommodated in the three-car driveway and two-car garage."
One short-term rental permit holder was offended by Guthrie's statement. Susan Mistretta, an Airbnb owner, wrote a letter to the city asking the City Council for a public apology. She told New Times that she's worried the city will completely remove rentals like hers from residential neighborhoods in favor of the downtown district.
"She [Guthrie] called us all 'cash cows,' Mistretta told New Times via email. "We follow all the rules, pay our taxes, and pay the city of Pismo Beach our yearly dues and they get 14.5 percent of our monthly income. We have never had one complaint, and we live there six months out of the year. We don't feel we're taking anything away from the rental market. We are doing what the Coastal Commission and the city of Pismo Beach has given us permission to do. We bring nice families to an already resort town. Why do the 18 Airbnbs that Pismo Beach have to be publicly humiliated by a City Council woman who sells real estate." Δ