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HomeMy WebLinkAboutAB0462 - Dannels PacketADMINISTRATIVE APPEALS BOARD STAFF REPORT DATE: May 24, 2023 SUBJECT: APPEAL OF THE ADMINISTRATIVE DECISION THAT WILLIAM R. DANNELS IS PERMANENTLY INELIGIBLE TO OPERATE A VACATION RENTAL IN THE CITY OF PALM SPRINGS AND THE ADMINISTRATIVE FINE OF $5,000 FOR OPERATING AN UNREGISTERED VACATION RENTAL PROPERTY LOCATED AT 1351 E. GEM CIRCLE, PALM SPRINGS, CALIFORNIA BY: DEPARTMENT OF SPECIAL PROGRAM COMPLIANCE SUMMARY William R. Dannels has requested an appeal of the permanent ineligibility to operate a Vacation Rental in the City of Palm Springs and administrative fine of $5,000.00 for operating an unregistered Vacation Rental property located at 1351 E. Gem Circle, 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 WILLIAM R. DANNELS FOR THE PROPERTY LOCATED AT 1351 E. GEM CIRCLE, PALM SPRINGS, CALIFORNIA REGARDING ADMINISTRATIVE CITATION AB0462 ISSUED IN THE AMOUNT OF $5,000 AND THE PERMANENT INELIGIBILITY TO OPERATE A VACATION RENTAL IN THE CITY OF PALM SPRINGS THIS PORTION OF PAGE BLANK Item 6 - Page 1 Administrative Appeals Board Staff Report May 24, 2023 Vacation Rental Appeal – 1351 E. Gem Circle, Palm Springs BACKGROUND On November 17, 2022, the Department of Special Program Compliance received an application for a Vacation Rental Registration Certificate for the property located at 1351 E. Gem Circle. Section C – Signatures and Dates of the application states: The application is included as ATTACHMENT 5. On December 19, 2022, a safety inspection was conducted at 1351 E. Gem Circle. The inspection passed. Additional information is communicated by the Code Compliance Officer who conducted the inspection along with the inspection result. Item 6 - Page 2 Administrative Appeals Board Staff Report May 24, 2023 Vacation Rental Appeal – 1351 E. Gem Circle, Palm Springs STAFF ANALYSIS: The owner for the property located at 1351 E. Gem Circle, Palm Springs did not hold a Vacation Rental Registration Certificate by the City of Palm Springs as of the date of violation on January 22, 2023. Staff has determined that the owner has, without a Registration Certificate, advertised and operated the property at 1351 E. Gem Circle, as a Vacation Rental from elements as follows in violation of Palm Springs Municipal Code 5.25.040 (a): 1. Advertisement Airbnb.com/rooms/784012526403655985 listed as “Palm Springs Gem Circle” ATTACHMENT 6 2. Advertisement Airbnb.com/rooms/784012526403655985 lists Minimum Stay 3 Nights ATTACHMENT 6 3. A Code Compliance Officer submitted an online booking inquiry to stay during the dates March 13, 2023, to March 18, 2023 (5-nights); ATTACHMENT 7 4. A response was received by the Code Compliance Officer confirming availability for the dates March 13, 2023, to March 18, 2023 (5-nights); ATTACHMENT 7 Staff finds that the advertisement found on Airbnb.com/rooms/784012526403655985 and inquiry affirmation for the dates March 13, 2023, to March 18, 2023 (5-nights) for stay at property 1351 E. Gem Circle, is in violation of §5.25.040(a) and proceeded to issue Administrative Citation AB0462, in the amount of $5,000, to William R. Dannels, the owner on title, for operating a Vacation Rental without a Vacation Rental Registration Certificate. The Administrative Citation was mailed by the Department of Special Program Compliance staff to the mailing address on title. The following Palm Springs Municipal Codes sections and Regulations 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 §5.25.040(a) reads as follows: The operation of a Vacation Rental or a Homeshare Interest without a Vacation Rental Registration Certificate is prohibited. Palm Springs Municipal Code §5.25.090(c) reads as follows regarding the administrative fine: Item 6 - Page 3 Administrative Appeals Board Staff Report May 24, 2023 Vacation Rental Appeal – 1351 E. Gem Circle, Palm Springs (c) Any person who operates a Vacation Rental without a Vacation Registration Certificate, shall be liable to the City for the payment of transient occupancy tax pursuant to the provisions of the Palm Springs Municipal Code Chapter 3.24, including without limitation penalties and interest, payment of an administrative fine in the amount of Five Thousand Dollars ($5,000.00), and permanent ineligibility to operate a Vacation Rental in the City…” Administrative Regulation “Operation of a Vacation Rental” dated 07/2017 defining “Operation” of a Vacation Rental to include the following: 1. “Advertisement” of the property means on any web-based advertising, hosting platform, print media, bulletin, signage, radio, and television or on any other medium for the purposes of promoting interest in, testing the market for, or soliciting the occupancy of a property for a period of twenty-eight (28) consecutive days or less. 2. An owner, agent or other representative of the owner has an interest in rental, exchange, trade, gift, or grant of a guest stay at a property of less than twenty-eight (28) consecutive days or less. 3. An owner, agent or any other representative of the owner interacts with another party whether directly or indirectly through personal or digital/electronic contact with the intent to provide availability of the property for occupancy of 28 days or less, or to complete a rental and/or reservation of the property for future occupancy of 28 days or less.” Administrative Regulation “Authority for the Issuance of Administrative Citations” dated 08/2014 reads as follows: “Vacation Rental Enforcement Officials are hereby authorized to issue, an Administrative Citation for the violation of the provision of Chapter 5.25 of the Palm Springs Municipal Code without first complying with the pre-citation or courtesy notice requirements contained in PSMC Section 1.06.030.” Item 6 - Page 4 Administrative Appeals Board Staff Report May 24, 2023 Vacation Rental Appeal – 1351 E. Gem Circle, Palm Springs Patrick Clifford Executive Program Administrator Department of Special Program Compliance Attachments: AB0462 Resolution no. _____ 1 Notice of Appeal Hearing 2 Administrative citation Appeal Letter 3 Administrative citation AB0462 & citation letter 4 Copy of Application 5 Copy of the Airbnb.com/rooms/784012526403655985 advertisement 6 Copy of Code Compliance Inquiry 7 Copy of the title report 8 THIS PORTION OF PAGE BLANK Item 6 - Page 5                     ATTACHMENT 1  Item 6 - Page 6 RESOLUTION NO. ____ Adopt Resolution No. ______, A RESOLUTION OF THE ADMINISTRATIVE APPEALS BOARD OF THE CITY OF PALM SPRINGS, CALIFORNIA, ON THE APPEAL OF THE ADMINISTRATIVE DECISION THAT WILLIAM R. DANNELS IS PERMANENTLY INELIGIBLE TO OPERATE A VACATION RENTAL IN THE CITY OF PALM SPRINGS AND THE ADMINISTRATIVE FINE OF $5,000 FOR OPERATING AN UNREGISTERED VACATION RENTAL PROPERTY LOCATED AT 1351 E. GEM CIRCLE, PALM SPRINGS, CALIFORNIA Jurisdiction: This administrative hearing is conducted in accordance with Palm Springs Municipal Code 2.50 which confers jurisdiction upon the Administrative Appeals Board. WHEREAS William R. Dannels did not obtain a Short-Term Vacation Rental Registration Certificate for the property located at 1351 E. Gem Circle, pursuant to Palm Springs Municipal Code Chapter 5.25; and WHEREAS, any person who operates a Vacation Rental without a Vacation Registration Certificate, shall be liable to the City an administrative fine in the amount of Five Thousand Dollars ($5,000.00), and permanent ineligibility to operate a Vacation Rental in the City, Palm Springs Municipal Code 5.25.090 (c); and WHEREAS, “Operation” of a Vacation Rental as used in Palm Springs Municipal Code Section 5.25 includes “Advertisement” of the property on any web-based advertising, hosting platform, print media, bulletin, signage, radio and television or any other medium for the purposes of promoting interest in, testing the market for, or soliciting the occupancy of a property for a period of twenty-eight (28) consecutive days or less; and WHEREAS, Administrative Citation No. AB0462, operating a Vacation Rental without a Vacation Rental Registration Certificate, was issued on February 1, 2023, to William R. Dannels for the property located at 1351 E. Gem Circle; and WHEREAS, William R. Dannels, filed an administrative appeal of the Administrative Citation No. AB0462 operating a Vacation Rental without a Vacation Rental Registration Certificate issued in the amount of $5,000 for the property located at 1351 E. Gem Circle, Palm Springs with the City Clerk; and WHEREAS, the Administrative Appeals Board opened and conducted a duly noticed Administrative Appeal Hearing on May 24, 2023; and WHEREAS, the Administrative Appeals Board was presented evidence that William R. Dannels violated Section 5.25.040(a) of the Palm Springs Municipal Code by Item 6 - Page 7 Resolution No. Page 2 an advertisement on Airbnb.com/rooms/784012526403655985 for the property located at 1351 E. Gem Circle; and WHEREAS, the Administrative Appeals Board was presented evidence William R. Dannels violated Section 5.25.040(a) of the Palm Springs Municipal Code by responding to an inquiry to book the property located at 1351 E. Gem Circle and confirmed a period less than twenty-eight (28) days; March 13, 2023, to March 18, 2023 (5-nights); and WHEREAS, the Administrative Appeals Board has carefully reviewed and considered all the evidence presented in connection with said appeal on May 24, 2023; 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 5.25.040(a). The Administrative Appeals Board upholds the administrative decision that William R. Dannels is permanently ineligible to operate a Vacation Rental in the City of Palm Springs, including the property located at 1351 E. Gem Circle and the fine of $5,000. The Appellant is not in violation of Palm Springs Municipal Code 5.25.040(a). The Administrative Appeals Board overturns the administrative decision that William R. Dannels is permanently ineligible to operate a Vacation Rental in the City of Palm Springs, including the property located at 1351 E. Gem Circle and the fine of $5,000. Item 6 - Page 8 Resolution No. 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 2023. Michael Paonessa Chair ATTEST: Brenda Pree, MMC, CERA 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: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this day of . Brenda Pree, MMC, CERA City Clerk Item 6 - Page 9 ATTACHMENT 2  Item 6 - Page 10 Item 6 - Page 11 Item 6 - Page 12 ATTACHMENT 3  Item 6 - Page 13 Item 6 - Page 14 Item 6 - Page 15 Item 6 - Page 16 Item 6 - Page 17        City of Palm Springs, CA             FINANCE DEPARTMENT               PO Box 2743       Palm Springs, CA 92263-2743            +1 (760) 323-8299 02/27/2023 04:45PM Shahriar  000990-0038 MISCELLANEOUS   OTHER CHARGE CURRENT   SVC (OTHCHG)   2023    Item: OTHCHG    1.00 @ 857.00   Balance unpaid: -857.00     OTHER CHARGE CURRENT     SVC (OTHCHG)                 857.00                           --------------                                   857.00  Subtotal                         857.00  Total                            857.00  CHECK                            857.00    Check Number 5403                          --------------  Change due                         0.00  Paid by: BILL DANNELS | ADMIN APPEAL #AB0462        Thank you for your payment      City of Palm Springs, CA  COPY            DUPLICATE RECEIPT Item 6 - Page 18 ATTACHMENT 4  Item 6 - Page 19 Item 6 - Page 20 Item 6 - Page 21 Item 6 - Page 22 ATTACHMENT 5  Item 6 - Page 23 Section A-PROPERTY OWNER_iNFOR'MATlON·. t . _-. , , , · . - · 1-:che~k Onc:JQ_lnqividu~I ___ Multiple lndividuals ___ LLC ___ Family or Personal Trust (if other than Individual is checked,. must complete Vacation Renfal Ownership Form. A partnership or corporation m'!Y not apply for a Vacation Renta!Registration Certificate.) 2-Owner Na·me: · . 3-Owner 4-Owner Physical Address (Residence if different than above Owner MailingAddress): 5-Phone #: __,;Alternate Phone#: --""'------ 6-Email: 7-Has Owner ever previously held a City of Palm SpringsTOT Permit? __ Yes oRls:_No 8-Does Owner have a financial or beneficial interest in any other Vacation Rental or Homesharing property in the City of Palm Springs currently? __ Yes_&_No SECTION B -VACATION RENTAL PROPERTY INFORMATION (no more than one Vacation Rental property is allowed.) · l I ! I 1-Vacation Rental Property Address: /3 5"' I E, GE-rl? 2-What is the type of property you are vacation renting: ~Single Famiiy Home __ Condo res1aency) ___ Casita __ Duplex (Owner must reside on•site in a unit; must present proof of 3-Total Number of Bedrooms: $ (Regardless of how many you will rent. If you have 5 or 6 bedrooms, you must complete the Estate Home Addendum. DSPC will verify number against County records; if discrepancies, DSPCwi/1 schedule an on-site bedroom count.) 4-ls the Vacation Rental property within an HOA and/or have CCR's associated with property (applies to condos, duplexes, .and single family homes)? i I YES ')CJ NO (If YES, have you attached the required letter from the HOA Board or Management cd,t:,pany stating that this specific Vacation Rental will not violate CC&Rs or other HOArules inc/uded? ____ YES) : ! . Name of the HOA: __________________________________ _ ii 5-ls your s·igned Electrician's Pool Certification attached with paid invoice or inspection report? 2G YES (It is I I app:licant's' sole responsibility to obtain this Certification from a licensed electrician; find form at www.psvacationrentalcompliance.com). Form not needed if there is a shared pool and/or spa maintained by the HOA, but must complete Sa below.) Sa-If the pool and/or spa is shared and not exclusive to your Vacation Rental property and is maintained by an HOA, you must initial here ____ _ 10/4/22 Item 6 - Page 24 6-ls your p~oof of liab-ility insurance in the amount of no less than $500,000. per occurrence included?~ YES . (The City of Palm Springs does not need to be additional named insured.) 7-Are you including a Family and Friends Form with this Application? . YES or _ c{? NO (If so, these_ guest stays are not included in the total annual contract count; owner may update this form ONLY at the time ofeach renewal.) 8-ls the property on Tribal leased land? ~ YES ___ NO 9-By signing this Application, you are agreeing to the indemnification/hold harmless agreementbelow: Owner, agrees to indemnify, save, protect, hold harmless, and defend the City of Palm Springs, the City Council of the City of Palm Springs, individually and collectively, and the City of Palm Springs representatives, officers, officials, employees, agents, and volunteers from any and all claims, demands, damages, fines, obligations, suits, judgments, penalties, causes of action, losses, liabilities, or costs at any time received, incurred, or accrued as a result of, or arising out of Owner's actions, or inaction in the operation, occupancy, use, and/or maintenance of the Property. 10-Local Contacts. You must include at least one local contact below that can respond to a DSPC Official 24 hours x 7 days a week; response must be physically at the Vacation Rental property within 30 minutes from the time of the cau. i: Lo.~al Contact Name:_.£;_A-_v._A_~_rr_,~---_JA_~ __ a_t?._'b--ft._~ ___ Phone#: _ Local Contact Address: Secondary Local Contact Name: Phone#: -------------------------- Local Contact Address: ___________________ City: __________ _ Signature of Local Contact: _______________ Phone #: __________ _ I i . ! 10/4/22 Item 6 - Page 25 SECTION (-SIGNATURES AND DATES · · . . . Please complete Sections A-D of this Application._ Thank you for your Application. PLEASE NOTE: DSPC current processing time is approximately 90 days from the day we receive your completed Application .. • YOu will be contacted by the DSPC who will conduct an annual Safety Inspection of the Vacation Rental property (view the form at www.psvacationrentalcompliance.com.) • You are not authorized to advertise or otherwise operate as a Vacation Rental until you receive specific written authorization from the DSPC; administrative fines and penalties will apply.* I dedare under penalty of perjury that the information on this Application is to the best of my knowledge, true, correct and complete. Any false statements will deem my Vacation Rental Registration Certificate void and will preclude any future vacation rental certificates and/or permits within the City of Palm Springs. DATE SIGNED: fl -10--01- 10/4/22 Item 6 - Page 26 SECTION D -VACATION RENTAL REGULATION'S . ·, . It is Owner's responsibility to understand and comply with Palm Springs Municipal Code Chapter 5.25, Vacation Rentals, AND Palm Spring Municipal Code Chapter 3.24, Transient Occupancy Tax Regulations. Below are key requirements but there are others. Owner, please read and initial below. Short Term Vacation Rental ~roperty shall oniy be rented 32 times in any calendar year. In 3 rd quarter of each year {Jul/Aug/Sep) 4 additional lontracts are allowed; for a total 'of 36 contrasts. For the.first year when a Vacation Rental Registration Cert_ificate is in effect, the. 32 contract limitation shall be prorated based on the number of months that have elapsed prior to the issuance of the Vacation Rental Registration Certificate. Prior t~ each occupancy, the Own~r o,r Agent shall e~ter into a written contract with a Responsible Person 25 years of age and. older; the contract shall include all requirements of the PSMC 5.25. bwner or Agent shall ensure that a summary of each such written contract is filed as required with the Department of Special Program Compliance prior to occupancy. . There is a 24/7 ~hort term vacation rental hotiirie set up for residents to call for any concerns in regards to vacation rental properties. The Vacation Rental Hotline number is 760-322-8383. Tha hotline will dispatch Department of Special Program Compliance officers to investigate hotline reported concerns and your Local Contact Person may !Je contacted to assist in all such cases. Your Local Contact Person must be a.vailable at property within 30 minutes of the call. NO outside amplified music is allowed while being rented. Indoor amplified music shall not be heard at thepropertyline. Initial Initial All home repairs inside and outside of the home including yard maintenance, pool service, general repairs and general maintenance are to occur between hours of 8:00am and 5:00pm Monday-Friday, except in _the cases of emergency repairs or events that reasonably warrant a timely response. Walk-in level of trash service or higher is.required. By submitting this Application, you authorize the City of Palm Springs to upgrade your trash service on your behalf. If you already have walk-in service you must provide a current Palm Springs Disposal Service billing showing the walk in level of service or higher at the time of the application. Good Neighbor Brochure and Statement of Rules and Regulations (available online in pdf format) must be provided to the Responsible Person, signed by all guests, and posted conspicuously in the Vacation Rental property at the front door and back door, for each occupancy. In addition, a copy ofthe Registration Certificate must be posted conspicuously at the front door. The Owner or Agent must meet the Responsible Person on the contract in person at the Vacation Rental property or the Owner's or Owner's Agent office prior to, or within 24 hours of commencement of occupancy. Annual training from the City's Department of Special Program Compliance is required for Owners and Agents and representatives that address the Vacation Rental rules and regulations. Owner and any Agent or representative of Owner that is in contact with guests has viewed the educational videos and tests on the City's website at www.psvacationrentalcompliance.com. 10.Transient Occupancy Tax (TOT) of 11.5% and TBID (Tourism Business Improvement District) Assessment of 1.0% must be collected on short term stays of 28 consecutive days or less. A TOT return must be filed monthly, _even if no tax is due. TOT returns must be physically received at the City Hall TOT desk by 6:00pm on the last working day of the month following the close of each calendar month. Delinquency is determined by the date received, not the postmark date. Occupancy and car limits are strictly enforced. Total Overnight Additional Number of Occupants {plus 2 Day Time Total Daytime Total Vehicles Bedrooms children 12 years of Occupants Occupancy Allowed age or under) Studio/1 2 4 6 1 2 4 4 8 2 3 6 4 10 3 : 4 8 4 12 4 , 5 Estate Only 10 4 14 5 ; 6 Estate Only 12 4 16 6 I d~clare under the penalty of perjury that I have reviewed the requirements of the City of Palm Springs' Transient / Occupancy Tax Regulations (PSMC Chapter 3.24) and Vacati_o.~_;1(ental Regulations (PSMC Chapter 5.25), and understand the procedures for remitting such tax and tax form/.~.the City of Palm Springs each month, whether I have rentals or not, and agree to comply with all requirements 1of the Palm Springs Municipal Code. Owner Name: _W~_lWi_· 1_1M __ ~_-__ N_b_-V_~_-__ _ Date: __ ,_l -_t_o_-_v._Z-__ Item 6 - Page 27 ATTACHMENT 6  Item 6 - Page 28 Item 6 - Page 29 Item 6 - Page 30 Item 6 - Page 31 Item 6 - Page 32 Item 6 - Page 33 Item 6 - Page 34 ATTACHMENT 7  Item 6 - Page 35 Item 6 - Page 36 Item 6 - Page 37 Item 6 - Page 38 ATTACHMENT 8  Item 6 - Page 39 Item 6 - Page 40