Dune City council upholds occupancy citations for 5175 Russell Drive

The Dune City Council, sitting as the board of appeals on Aug. 5, voted unanimously to uphold two short-term rental occupancy citations for the property at 5175 Russell Drive.

Attorney Sarah Chinsky, representing property owners Vicky and Andrew (Laguna Beach Trust), argued the city’s recent changes to its maximum-occupancy calculation could not be applied retroactively. She told the council that the owners cancelled “well over $20,000” in preexisting reservations to comply with the most recent occupancy limits and asked the board to dismiss the violations. The appellants contend applying the new limit to reservations made before the change impairs existing contracts under state and federal protections.

City staff and code enforcement presented a timeline showing the permitted occupancy for the property was reduced from 12 to 10 and then to 9 after a March 2 sanitation authorization from Lane County Environmental Health (DEQ), which limited occupancy based on septic flow. Staff said two citations were issued for excess occupants on June 15 and June 22, 2026, and that multiple notices and contacts with the property manager and owner were documented in the city’s files.

Councilors pressed staff on the dates and records of the notices; staff indicated the documentation exists and would be posted with the agenda packet and provided to the appellant. One councilor noted that applicants must secure required county permits before operating a rental. The council ultimately sustained the two citations on a roll-call vote; the chair announced the result as unanimous. The board closed the hearing at 7:31 p.m.

Because the board of appeals’ decision is final under the procedures read into the record, the council’s action sustained the citations rather than issuing a revocation at this meeting. Staff said the record and supporting documents will be posted on the city website.