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HomeMy WebLinkAboutItem 6 - AB0618 Saleem Staff PacketADMINISTRATIVE APPEALS BOARD STAFF REPORT DATE: January 24, 2024 SUBJECT: APPEAL OF THE ADMINISTATIVE DECISION OF A SIX-MONTH SUSPENSION OF THE VACATION RENTAL REGISTRATION CERTIFICATE AND THE ADMINISTRATIVE FINE OF $2,500.00 TO SALEEM SALEEM AND RUKHSANA SALEEM FOR THE PROPERTY LOCATED AT 3770 MESQUITE AVE., PALM SPRINGS. BY: Office of Special Programs Compliance Department SUMMARY Saleem Saleem and Rukhsana Saleem have requested an appeal of the 6-month suspension of the Vacation Rental Registration Certificate and the administrative fine of $2,500.00 for failure of submitting a Contract Summary to the Enforcement Official for the property located at 3770 Mesquite Ave., Palm Springs. RECOMMENDATION: 1)Open the Appeal Hearing and accept public testimony. 2) Adopt Resolution No. ______, A RESOLUTION OF THE ADMINISTRATIVE APPEALS BOARD OF THE CITY OF PALM SPRINGS, CALIFORNIA, ON THE APPEAL OF THE ADMINISTRATIVE CITATION AB0618 ISSUED IN THE AMOUNT OF $2,500 TO SALEEM SALEEM AND RUKHSANA SALEEM AND THE ADMINISTRATIVE DECISION OF A SIX-MONTH SUSPENSION OF THE VACATION RENTAL REGISTRATION CERTIFICATE FOR THE PROPERTY LOCATED AT 3770 MESQUITE AVE., PALM SPRINGS. THIS PORTION OF PAGE BLANK Item 6 - Page 1 Administrative Appeals Board Staff Report January 24, 2024 - Page 2 Vacation Rental Appeal – 3770 Mesquite Ave, Palm Springs BACKGROUND: The property located at 3770 Mesquite Ave., Palm Springs is a registered Vacation Rental with the City of Palm Springs with a start date of October 7, 2021. STAFF ANALYSIS: The owners for the property located at 3770 Mesquite Ave. were issued administrative citation AB0618 for failure to file contract summaries to the Enforcement Official as required by The Vacation Rental Ordinance 2075 for guests stays of 28 days or less at a Vacation Rental. The Vacation Rental Ordinance No. 2075 (Palm Springs Municipal Code 5.25) requires the submittal of a Contract Summary prior to each separate guest stay of 28 days or less at a Vacation Rental. This Contract Summary allows the Office of Special Program Compliance Department to verify the contract limitations outlined in Palm Springs Municipal Code Section 5.25.070(b). Palm Springs Municipal Code (PSMC) 5.25.070(b) states “A Contract includes any occupancy of a property subject to a Vacation Rental registration certificate by persons other than the Owner when the Owner is not present during such occupancy, regardless of whether compensation is paid for such occupancy or whether occupancy is evidenced in an agreement or document”. The Department of Special Program Compliance administration staff communicated the requirement to submit contract stays prior to arrival. Attachment 5 The City of Palm Springs Code Compliance determined after receiving internal communication from administration staff with The Department of Special Program Compliance that the property located at 3770 Mesquite Ave., had not submitted a Contract Summary for a short-term Vacation Rental stay since the issuance of the Vacation Rental Registration Certificate. A Code Compliance Officer investigated the property and found that the property had 22 short-term rental stays between December 1, 2022 through October 9, 2023, and zero contract summaries were submitted. Attachment 6. A review below of the Contract Summary system confirmed zero submissions and is also included in Attachment 6. Item 6 - Page 2 Administrative Appeals Board Staff Report January 24, 2024 - Page 3 Vacation Rental Appeal – 3770 Mesquite Ave, Palm Springs Staff finds that based on the information reviewed, that short-term vacation rental use at the property 3770 Mesquite Ave., occurred and Contract Summaries were not submitted as required prior to a guest stay of 28-days or less and proceeded to issue administrative citation number AB0618 in the amount of $2,500.00 to Saleem Saleem and Rukhsana Saleem, the owners on title, for failure to file a contract summary to the Enforcement Official prior to occupancy of the Vacation Rental. The Administrative Citation was mailed by staff to the mailing address located on the title report. Pursuant to Palm Springs Municipal Code 5.25.090(d), the Vacation Rental Certificate 4384 will be suspended for a period of six months effective December 18, 2023. Attachment 7. The following Palm Springs Municipal Code Sections are applicable to this matter: The Palm Springs Municipal Code §5.25.030 Definitions, reads as follows: "Vacation Rental" means a single-family dwelling, or any portion thereof, utilized for occupancy for dwelling, lodging, or sleeping purposes without the Owner being present for a period of twenty-eight (28) consecutive days or less,…” Palm Springs Municipal Code §5.25.070(b) reads as follows: No more than thirty-two (32) Contracts for Vacation Rental use of a property shall be allowed or provided in any calendar year; however, up to four (4) additional Contracts shall be allowed or provided for the Third Quarter of a calendar year so long as the entire term of each such Contract occurs during such Third Quarter A Contract includes any occupancy of a property subject to a Vacation Rental registration certificate by persons other than the Owner when the Owner is not present during such occupancy, regardless of whether compensation is paid for Item 6 - Page 3 Administrative Appeals Board Staff Report January 24, 2024 - Page 4 Vacation Rental Appeal – 3770 Mesquite Ave, Palm Springs such occupancy or whether occupancy is evidenced in an agreement or document. Palm Springs Municipal Code §5.25.070(h) reads as follows: ”Prior to occupancy pursuant to each separate occasion of rental of a Vacation Rental, the Owner or the Owner’s agent or representative shall enter into a written Contract with a Responsible Person where (1) the Responsible Person will provide the Responsible Person’s name, age, address, and a copy of a government issued identification; (2) establishes and sets out the terms and conditions of the Contract, including without limitation occupancy limits, noise prohibitions, and vehicle parking requirements; (3) requires the Responsible Person to acknowledge and agree that he or she is legally responsible for compliance of all occupants of the Vacation Rental or their guests with all provisions of this Chapter and/or the Municipal Code; (4) the Owner or the Owner’s Agent provides a copy of the “Good Neighbor Brochure” to the Responsible Person; (5) the Responsible Person provides a list of all guests by name; and (6) the Responsible Person provides a list of all guests’ vehicles, including license plate numbers. Each Contract shall be maintained by the Owner or the Owner’s Agent for a minimum of four (4) years and shall be readily available for inspection upon request of the Enforcement Official. A summary or abstract of the written Contract, in a form approved by the Enforcement Official, shall be filed with the Enforcement Official prior to occupancy, in a manner approved by the Enforcement Official, and shall be posted in a conspicuous location on the Vacation Rental property and shall be made available on site at the request of an Enforcement Official”. Palm Springs Municipal Code §5.25.090(d) reads as follows regarding the administrative fines: “Any person who advertises a Vacation Rental without including the Vacation Registration Certificate in any advertising for such Vacation Rental, or operates a Vacation Rental without a contract, or without providing the City with a summary or abstract of such contract, or without timely tendering full monthly payments of transient occupancy tax, shall pay a fine in the amount of Two Thousand, Five Hundred Dollars ($2,500.00) and the Owner’s Vacation Registration Certificate shall be suspended for six (6) months for a first offense and shall pay a fine in the amount of Five Thousand Dollars ($5,000.00) and the Owner’s Vacation Registration Certificate shall be revoked for a second offense. Any subsequent violations will be subject to the provisions of Subsection (c) of this Section”. Item 6 - Page 4 Administrative Appeals Board Staff Report January 24, 2024 - Page 5 Vacation Rental Appeal – 3770 Mesquite Ave, Palm Springs Patrick Clifford Assistant Director Attachments: 1 2 3 4 5 6 Resolution no. _____ Decision of the Administrative Appeals Board Notice of Appeal Hearing Administrative Citation Appeal Letter Administrative Citation AB0618 Department Notification Code Officer Findings Suspension Letter 7 Item 6 - Page 5                     ATTACHMENT 1  Item 6 - Page 6 RESOLUTION NO. ___ A RESOLUTION OF THE ADMINISTRATIVE APPEALS BOARD OF THE CITY OF PALM SPRINGS, CALIFORNIA, ON THE APPEAL OF THE ADMINISTRATIVE CITATION AB0618 ISSUED IN THE AMOUNT OF $2,500 TO SALEEM SALEEM AND RUKHSANA SALEEM AND THE ADMINISTRATIVE DECISION OF A SIX-MONTH SUSPENSION OF THE VACATION RENTAL REGISTRATION CERTIFICATE FOR THE PROPERTY LOCATED AT 3770 MESQUITE AVE., PALM SPRINGS. Jurisdiction: This administrative hearing is conducted in accordance with Palm Springs Municipal Code 2.50 which confers jurisdiction upon the Administrative Appeals Board. WHEREAS, Saleem Saleem and Rukhsana Saleem did not file a Contract Summary for an occupancy 28 days or less; WHEREAS, any person who operates a Vacation Rental and fails to submit a contract summary to the Enforcement Official, shall be liable to the City an administrative fine in the amount of Two Thousand and Five Hundred Dollars ($2,500.00), and shall have the Vacation Rental Registration Certificate suspended for a period of six-months, Palm Springs Municipal Code 5.25.090 (d); and WHEREAS, “Vacation Rental” means a single-family dwelling, or any portion thereof, utilized for occupancy for dwelling, lodging, or sleeping purposes without the Owner being present for a period of twenty-eight (28) consecutive days or less; and WHEREAS, the City investigated and determined that the Vacation Rental Property 3770 Mesquite Ave., hosted guests for a period of twenty-eight (28) consecutive days or less; and WHEREAS, Administrative Citation No. AB0618 failure to file a Contract Summary was issued on November 15, 2023 to Saleem Saleem and Rukhsana Saleem for the property located at 3770 Mesquite Ave., Palm Springs; and WHEREAS, Saleem Saleem and Rukhsana Saleem, filed an administrative appeal of the Administrative Citation No. AB0618 for failure to file a Contract Summary prior to an occupancy for the property 3770 Mesquite Ave., Palm Springs to the Enforcement Official with the City Clerk and paid the appeal fee; and WHEREAS, the Administrative Appeals Board opened and conducted a duly noticed Administrative Appeal Hearing on January 24, 2024; and Item 6 - Page 7 Resolution ____ Page 2 WHEREAS, the Administrative Appeals Board was presented prima facie evidence that Saleem Saleem and Rukhsana Saleem violated Section 5.25.070 (h) of the Palm Springs Municipal Code; and WHEREAS, the Administrative Appeals Board has carefully reviewed and considered all the evidence presented in connection with said appeal on January 24, 2024; and THE ADMINISTRATIVE APPEALS BOARD HEREBY FINDS, after due consideration given to the relevancy, weight and credibility of testimony and evidence, and based upon a preponderance of the evidence in accordance with the Board’s procedures, as follows: SECTION 1. The Appellant is in violation of Palm Springs Municipal Code 5.25.070(h). The Administrative Appeals Board upholds the administrative decision of a six- month suspension of the Vacation Rental Registration Certificate and the Administrative Fine of $2500.00 to Saleem Saleem and Rukhsana Saleem for the property located at 3770 Mesquite Ave., Palm Springs The Appellant is not in violation of Palm Springs Municipal Code 5.25.070(h). The Administrative Appeals Board overturns the administrative decision of a six- month suspension of the Vacation Rental Registration Certificate and the Administrative Fine of $2500.00 to Saleem Saleem and Rukhsana Saleem for the property located at 3770 Mesquite Ave., Palm Springs THIS PORTION OF PAGE BLANK Item 6 - Page 8 Resolution ____ Page 3 SECTION 2. The Administrative Appeals Board directs the City Clerk to deliver a copy of this Resolution to each party and to file a disposition report with the Palm Springs City Council. PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS ADMINISTRATIVE APPEALS BOARD THIS DAY OF 2024. Wayne Sinclair Chair ATTEST: Brenda Pree City Clerk STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, Brenda Pree, City Clerk of the City of Palm Springs, do hereby certify that Resolution No. ____ is a full, true and correct copy, and was duly adopted at a meeting of the Administrative Appeals Board of the City of Palm Springs on the day of , by the following vote: AYES: NOES: ABSENT: ABSTAIN: RECUSE: BRENDA PREE City Clerk Item 6 - Page 9                     ATTACHMENT 2  Item 6 - Page 10 Item 6 - Page 11                     ATTACHMENT 3  Item 6 - Page 12 Item 6 - Page 13 Item 6 - Page 14 Item 6 - Page 15 Item 6 - Page 16 Item 6 - Page 17 Item 6 - Page 18 Item 6 - Page 19 Item 6 - Page 20 Item 6 - Page 21        City of Palm Springs, CA             FINANCE DEPARTMENT               PO Box 2743       Palm Springs, CA 92263-2743            +1 (760) 323-8299 12/07/2023 09:09AM Shahriar  002040-0002 MISCELLANEOUS   OTHER CHARGE CURRENT   SVC (OTHCHG)   2024    Item: OTHCHG    1 @ $911.0000   Balance unpaid: -$911.00     OTHER CHARGE CURRENT     SVC (OTHCHG)                $911.00                           --------------                                  $911.00  Subtotal                        $911.00  Total                           $911.00  CHECK                           $911.00    Check Number 1005                          --------------  Change due                        $0.00  Paid by: SALEEM SALEEM | ADMIN CITATION#AB0618 VACATION RENTAL APPEAL FEE- CITY CLERK'S OFFICE12/07/2023        Thank you for your payment              CUSTOMER COPY Item 6 - Page 22                     ATTACHMENT 4  Item 6 - Page 23 Item 6 - Page 24 Item 6 - Page 25 Item 6 - Page 26 Item 6 - Page 27                     ATTACHMENT 5  Item 6 - Page 28 John Stamback From: John Stamback Sent: Wednesday, October 20, 2021 8:19 AM To: Saleem' Subject: 3770 Mesquite Ave Attachments: TOT 7983.pdf, 3770 Mesquite Ave.pdf Attached is your Transient Occupancy Registration Permit # 7983 and annual Vacation Rental Registration Certificate. Two Vacation Rental Registration Certificates should be placed in the residence. Transient Occupancy Tax Information Transient Occupancy Tax is covered under Palm Springs Municipal Code Ch. 3.24. Blank TOT forms on the City of Palm Springs website. You may also submit and pay your monthly TOT return online b=s://www.12ahns rinp,sca.gov/izovemment/del2artments/finance-treasury/transient-occupancy-tax- tot . TOT returns are due on the first working business day of the month and considered delinquent if not received on or before 6:00 pm on the last working business day of the month following the close of each calendar month. EXAMPLE: March TOT is due April 1, 2021 and is considered delinquent if not paid by 6:00 pm April 29, 2021. The delinquency date is determined by the date the return is received in the TOT office, not the postmark. The TOT tax rate is 11.5% of total rental revenue. The TOT return must be sent in even if you have no activity for the month and/or no tax is due. Starting July 1, 2021, Vacation Rental and Homeshare lodgings will begin paying the 1% TBID (Tourism Business Improvement District) assessment on short term stays of 27 days or less. The Greater Palm Springs Convention & Visitors Bureau (CVB) has further information on their website: h!Ws://www.visitgreaterpalmsprines.com/2020-tbid/ Although the 1% TBID will be paid at the same time as your monthly TOT payments, TBID money is a separate item that will be directed to the CVB. All properties are subject to audit, be sure to maintain adequate TOT records. Ouestions regarding Transient Occupancy Tax should be directed to the TOT desk at (760) 323-8226 or totdeskApalmspringsca.gov. Vacation Rental Compliance Information Below is the link to our Contract Summary tool https://www. valmsi)rinesca.gov/governmentddepartments/suecial-i)ro2ram-compliance/vacation- rentals/submit-contract-summary; you are required to begin submitting your Contract Summaries using this tool for each guest stay prior to arrival. Homeshare's are exempt from Contract Summaries. Item 6 - Page 29                     ATTACHMENT 6  Item 6 - Page 30 Item 6 - Page 31 Item 6 - Page 32 Item 6 - Page 33 Item 6 - Page 34 Item 6 - Page 35 Item 6 - Page 36 Item 6 - Page 37 Item 6 - Page 38 Item 6 - Page 39 Item 6 - Page 40 Item 6 - Page 41 Item 6 - Page 42 Item 6 - Page 43 Item 6 - Page 44 Item 6 - Page 45 Item 6 - Page 46 Item 6 - Page 47                     ATTACHMENT 7  Item 6 - Page 48 Post Office Box 2743 • Palm Springs, California 92263-2743 City of Palm Springs Department of Special Program Compliance 425 North Civic Drive • Palm Springs, California 92262 Tel: 760.322-8382 • Fax: 760.322.8317 • TDD 760.864.9527 • www.palmspringsca.gov November 22, 2023    Saleem Saleem; Rukhsana Saleem              Re:  Suspension of Short‐Term Vacation Rental Registration Certificate #4823 for 3770 E. Mesquite Ave., Palm  Springs, CA.    Upon review of the recent activity at your short‐term rental property located at 3770 E. Mesquite Ave., Palm  Springs, CA, the City of Palm Springs is hereby suspending your Vacation Rental Registration Certificate for a  period of six (6) months.  In order to minimize the negative impact to any near‐term guests visiting our city who  may already be currently booked at your property, the suspension period will begin on December 18, 2023, and  will end on June 18, 2024.  All advertising of your property for short term rentals must cease immediately.    During the suspension period, your property may not be rented for short term stays (28 days or fewer) but you  may rent your property as a long‐term rental.  Transient Occupancy Tax returns and annual renewal fees will still  be due, unless you choose to complete and submit the enclosed Owner’s Request to Close TOT Permit and  Vacation Rental Certificate form.    This suspension is issued in accordance with the City of Palm Springs Municipal Code (PSMC) Section 5.25.090(d)  as follows:      “(d)     Any person who advertises a Vacation Rental without including the Vacation Registration Certificate in any  advertising for such Vacation Rental, or operates a Vacation Rental without a contract, or without providing the  City with a summary or abstract of such contract, or without timely tendering full monthly payments of transient  occupancy tax, shall pay a fine in the amount of Two Thousand, Five Hundred Dollars ($2,500.00) and the Owner’s  Vacation Registration Certificate shall be suspended for six (6) months for a first offense and shall pay a fine in  the amount of Five Thousand Dollars ($5,000.00) and the Owner’s Vacation Registration Certificate shall be  revoked for a second offense. Any subsequent violations will be subject to the provisions of Subsection (c) of this  Section.    You have the right to appeal this suspension pursuant to Palm Springs Municipal Code, Section 5.25.090(f).  Your appeal will be heard by the Administrative Appeals Board in accordance with Palm Springs Municipal  Code, Chapter 2.50. Please also see the attached Written Notice of Appeal Form and Filing Process information;  or feel free to contact the Department of Special Program Compliance at #760‐322‐8382 with questions.     Should you choose to appeal this suspension, your suspension does go into effect on December 18, 2023 in  accordance with this letter, and it remains in effect pending the outcome of the Administrative Appeals Board  hearing.  Advertising or operating as a vacation rental prior to the determination of the Administrative Appeals  Board is a violation of PSMC Section 5.25.090(c).   Item 6 - Page 49   To exercise your option to appeal, your completed Written Notice of Appeal Form with the non‐refundable  appeal fee of $911 must be received by the City Clerk’s office no later than December 14, 2023, and should be  addressed to:      City of Palm Springs  Office of the City Clerk  3200 E. Tahquitz Canyon Way, Palm Springs, CA 92263      Respectfully,        Scott Stiles  City Manager    Cc: File,  Item 6 - Page 50