A. The city shall provide a system for citizen complaints about short-term rentals to be submitted for review by the city manager or designee. Any such complaint must be accompanied by evidentiary material, such as time stamped photos, recordings, or statements. All citizen complaints will be verified by the city manager or designee.

B. Denial, Suspension, or Revocation. In addition to any other remedy provided by this chapter or by any other provision of the city code or other law, the city manager or designee may deny a short-term rental certificate, and if already issued, may suspend or revoke the same, subject to the right to appeal to the city council as provided in this section.

C. Grounds. The city manager or designee may deny, suspend, or revoke a short-term rental certificate when there is substantial evidence to support any of the following grounds:

1. If complaint(s) to the city of violation(s) of this chapter have been verified and deemed reasonable by the city manager or designee (see subsection A of this section);

2. If a material misrepresentation or false or misleading information was included on the application for the short-term rental certificate;

3. If the short-term rental unit or the use thereof for short-term rentals is in violation of any state or local law, rule, or regulation, including but not limited to any zoning, building, health, sanitation, safety, or occupancy law, rule, or regulation;

4. If the owner, broker, or agent has violated any provision of this chapter, any other applicable provision of the city code, or any other state or local law, rule, or regulation in the rental, offer for rental, or use of the short-term rental unit; or

5. If the owner, broker, or agent is delinquent in the payment of any outstanding fees, assessments, or taxes owed to the city related to the short-term rental unit or the property on which the unit is located.

D. Suspension or Revocation. The city manager or designee shall consider the nature and severity of the violation, whether the violation was intentional or inadvertent, the impacts of the violation, whether the violation is a first or repeated offense, and any other factor deemed relevant by the city manager or designee in determining whether a temporary suspension of the short-term rental certificate is appropriate or whether the certificate should be revoked.

E. Procedure. Prior to denying, suspending, or revoking a short-term rental certificate, the city manager or designee shall provide the applicant or certificate holder with at least 10 calendar days’ advance written notice of the city manager’s or designee’s intent to consider denial, suspension, or revocation, together with the date, time, and location of a meeting at which the applicant or certificate holder will be given a reasonable opportunity to present reasons to the city manager or designee why the certificate should not be denied, suspended, or revoked. The meeting may be rescheduled with the mutual consent of the city manager or designee and the applicant or certificate holder. Upon completion of the meeting if the meeting is held, or upon the failure of the applicant or certificate holder to attend the meeting, the city manager or designee shall make a final decision on denial, suspension, or revocation, and shall issue such decision in writing, with a copy mailed to the applicant or certificate holder. The denial, suspension, or revocation shall not become final, and any certificate that has been issued shall remain valid, until the city manager or designee makes a final decision as provided in this subsection and the appeal period provided in subsection F of this section has elapsed.

F. Appeal of Decision. The decision of the city manager or designee to deny, suspend, or revoke a short-term rental certificate is appealable to the city council. All appeals must be filed in writing with the city clerk within 20 calendar days of the issuance of the decision of the city manager or designee and must be accompanied by a nonrefundable appeal fee in an amount established by city council resolution. The decision of the city manager or designee shall be stayed by the filing of the appeal and any certificate that has been issued shall remain valid until the appeal is decided by the city council. The city council shall fix a date to hear the appeal and shall provide notice of the hearing to the appellant at least 10 calendar days in advance of the hearing date. The city council shall uphold the decision of the city manager or designee unless the decision is not supported by substantial evidence or is clearly erroneous. The city council shall issue a written decision. The decision of the city council shall be final, subject only to a writ of certiorari being filed with the Kitsap County superior court within 14 calendar days following the date the written decision is issued.

G. Public Notice of Suspension or Revocation. If a short-term rental certificate is suspended or revoked as provided in this section, notification of the suspension or revocation shall be provided by the city to all residents or property owners within 300 feet of the short-term rental. Notice may be provided by mailing or by any other means deemed appropriate by the city, such as but not limited to posting the notice on the city’s webpage.

H. Prohibited Operations. If a short-term rental certificate is suspended or revoked, the owner and agent shall immediately cease renting or offering to rent the short-term rental unit as a short-term rental. Brokers shall also immediately cease offering, listing, advertising, accepting reservations for, and/or collecting whole or partial payment of rents for the short-term rental unit. If the certificate is suspended, operation of the short-term rental and the related activities of the owner, agent, and broker may resume only upon the lifting of the suspension. If the certificate is revoked, such operation and activities shall not resume until a new certificate is applied for and issued. A new certificate may not be applied for until a period of 12 months has passed from the date of the revocation decision. (Ord. 2024-02 § 1, 2024)