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HomeMy WebLinkAboutAB0586 - Shepsele Realty Capital PacketADMINISTRATIVE APPEALS BOARD STAFF REPORT DATE: October 25, 2023 SUBJECT: APPEAL OF THE ADMINISTRATIVE DECISION THAT SHEPSELE LLC, C/O DANIEL KERBAL & ABRAHAM KAJOMOVITZ 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 2857 N. LOS FELICES RD., #213, PALM SPRINGS, CALIFORNIA BY: DEPARTMENT OF SPECIAL PROGRAM COMPLIANCE SUMMARY Shepsele Realty Capital, LLC 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 2857 N. Los Felices Rd., #213, 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 SHEPSELE REALTY CAPITAL, LLC, FOR THE PROPERTY LOCATED AT 2857 N. LOS FELICES RD., #213, PALM SPRINGS, CALIFORNIA REGARDING ADMINISTRATIVE CITATION AB0586 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 7 - Page 1 Administrative Appeals Board Staff Report October 25, 2023 Vacation Rental Appeal – 2857 N. Los Felices Rd., #213, Palm Springs STAFF ANALYSIS: The owner for the property located at 2857 N. Los Felices Rd., #213, Palm Springs did not hold a Vacation Rental Registration Certificate by the City of Palm Springs as of the date of violation on September 3, 2023. Staff has determined that the owner has, without a Registration Certificate, advertised and operated the property at 2857 N. Los Felices Rd., #213, as a Vacation Rental from elements as follows in violation of Palm Springs Municipal Code 5.25.040 (a): 1. Advertisement Airbnb.com/rooms/827193145557627283 listed as “New Cozy 1 BR downtown condo with view (Sleeps 2-4)” ATTACHMENT 5 2. Advertisement Airbnb.com/rooms/827193145557627283 lists 1 review in April 2023. ATTACHMENT 5 3. Advertisement Airbnb.com/rooms/827193145557627283 lists “City of Palm Springs License: Pending” ATTACHMENT 5 4. Advertisement Airbnb.com/rooms/827193145557627283 lists “Minimum Stay 2-nights” ATTACHMENT 5 5. A Code Compliance Officer submitted an online booking inquiry to stay during the dates September 29, 2023, to October 2, 2023 (3-nights); ATTACHMENT 6 6. A response was received by the Code Compliance Officer confirming availability for the dates September 29, 2023, to October 2, 2023 (3-nights); ATTACHMENT 6 Staff finds that the advertisement found on Airbnb.com/rooms/827193145557627283 and inquiry affirmation for the dates September 29, 2023, to October 2, 2023 (3-nights) for stay at property 2857 N. Los Felices Rd., #213, is in violation of §5.25.040(a) and proceeded to issue Administrative Citation AB0586, in the amount of $5,000, to Shepsele LLC, c/o Daniel Kerbal & Abraham Kajomovitz 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: Item 7 - Page 2 Administrative Appeals Board Staff Report October 25, 2023 Vacation Rental Appeal – 2857 N. Los Felices Rd., #213, Palm Springs 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: (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 7 - Page 3 Administrative Appeals Board Staff Report October 25, 2023 Vacation Rental Appeal – 2857 N. Los Felices Rd., #213, Palm Springs Patrick Clifford Assistant Director Department of Special Program Compliance Attachments: AB0586 Resolution no. _____ 1 Notice of Appeal Hearing 2 Administrative citation Appeal Letter 3 Administrative citation AB0586 & citation letter 4 Copy of the Airbnb.com/rooms/827193145557627283 advertisement 5 Copy of Code Compliance Inquiry 6 Copy of the title report 7 THIS PORTION OF PAGE BLANK Item 7 - Page 4                     ATTACHMENT 1  Item 7 - Page 5 RESOLUTION NO. ____ A RESOLUTION OF THE ADMINISTRATIVE APPEALS BOARD OF THE CITY OF PALM SPRINGS, CALIFORNIA, ON THE APPEAL OF SHEPSELE REALTY CAPITAL, LLC, FOR THE PROPERTY LOCATED AT 2857 N. LOS FELICES RD., #213, PALM SPRINGS, CALIFORNIA REGARDING ADMINISTRATIVE CITATION AB0586 ISSUED IN THE AMOUNT OF $5,000 AND THE PERMANENT INELIGIBILITY TO OPERATE A VACATION RENTAL IN THE CITY OF 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 Shepsele LLC, c/o Daniel Kerbal & Abraham Kajomovitz did not obtain a Short-Term Vacation Rental Registration Certificate for the property located at 2857 N. Los Felices Rd., #213, Palm Springs, 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. AB0586, operating a Vacation Rental without a Vacation Rental Registration Certificate, was issued on September 5, 2023 to Shepsele LLC, c/o Daniel Kerbal & Abraham Kajomovitz for the property located at 2857 N. Los Felices Rd., #213, Palm Springs; and WHEREAS, Shepsele Realty Capital, LLC, filed an administrative appeal of the Administrative Citation No. AB0586 operating a Vacation Rental without a Vacation Rental Registration Certificate issued in the amount of $5,000 for the property located at 2857 N. Los Felices Rd., #213, Palm Springs with the City Clerk; and WHEREAS, the Administrative Appeals Board opened and conducted a duly noticed Administrative Appeal Hearing on October 25, 2023; and Item 7 - Page 6 Resolution No. Page 2 WHEREAS, the Administrative Appeals Board was presented evidence that Shepsele LLC, c/o Daniel Kerbal & Abraham Kajomovitz violated Section 5.25.040(a) of the Palm Springs Municipal Code by an advertisement on Airbnb.com/rooms/827193145557627283 for the property located at 2857 N. Los Felices Rd., #213, Palm Springs; and WHEREAS, the Administrative Appeals Board was presented evidence Shepsele LLC, c/o Daniel Kerbal & Abraham Kajomovitz violated Section 5.25.040(a) of the Palm Springs Municipal Code by responding to an inquiry to book the property located at 2857 N. Los Felices Rd., #213, Palm Springs and confirmed a period less than twenty- eight (28) days; September 29, 2023, to October 2, 2023 (3-nights); and WHEREAS, the Administrative Appeals Board has carefully reviewed and considered all the evidence presented in connection with said appeal on October 25, 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 Shepsele LLC, c/o Daniel Kerbal & Abraham Kajomovitz is permanently ineligible to operate a Vacation Rental in the City of Palm Springs, including the property located at 2857 N. Los Felices Rd., #213, Palm Springs 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 Shepsele LLC, c/o Daniel Kerbal & Abraham Kajomovitz is permanently ineligible to operate a Vacation Rental in the City of Palm Springs, including the property located at 2857 N. Los Felices Rd., #213, Palm Springs and the fine of $5,000. Item 7 - Page 7 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. Wayne Sinclair 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 7 - Page 8                     ATTACHMENT 2  Item 7 - Page 9 Item 7 - Page 10                     ATTACHMENT 3  Item 7 - Page 11 Item 7 - Page 12 Item 7 - Page 13        City of Palm Springs, CA             FINANCE DEPARTMENT               PO Box 2743       Palm Springs, CA 92263-2743            +1 (760) 323-8299 09/27/2023 04:01PM Shahriar  001782-0002 MISCELLANEOUS   OTHER CHARGE CURRENT   SVC (OTHCHG)   2024    Item: OTHCHG    1 @ 911.00   Balance unpaid: -911.00     OTHER CHARGE CURRENT     SVC (OTHCHG)                 911.00                           --------------                                   911.00  Subtotal                         911.00  Total                            911.00  CHECK                            911.00    Check Number 1046                          --------------  Change due                         0.00  Paid by: SHEPSELE, LLC |  APPEAL#AB-0586 AT CITY CLERK'S OFFICE 09/27/2023        Thank you for your payment              CUSTOMER COPY Item 7 - Page 14                     ATTACHMENT 4  Item 7 - Page 15 Item 7 - Page 16 Item 7 - Page 17 Item 7 - Page 18 Item 7 - Page 19                     ATTACHMENT 5  Item 7 - Page 20 Item 7 - Page 21 Item 7 - Page 22 Item 7 - Page 23 Item 7 - Page 24 Item 7 - Page 25 Item 7 - Page 26 Item 7 - Page 27 Item 7 - Page 28 Item 7 - Page 29 Item 7 - Page 30 Item 7 - Page 31 Item 7 - Page 32 Item 7 - Page 33 Item 7 - Page 34 Item 7 - Page 35 Item 7 - Page 36 Item 7 - Page 37 Item 7 - Page 38 Item 7 - Page 39 Item 7 - Page 40 Item 7 - Page 41 Item 7 - Page 42 Item 7 - Page 43 Item 7 - Page 44 Item 7 - Page 45 Item 7 - Page 46 Item 7 - Page 47 Item 7 - Page 48 Item 7 - Page 49                     ATTACHMENT 6  Item 7 - Page 50 Item 7 - Page 51 Item 7 - Page 52 Item 7 - Page 53 Item 7 - Page 54 Item 7 - Page 55 Item 7 - Page 56 Item 7 - Page 57                     ATTACHMENT 7  Item 7 - Page 58 Item 7 - Page 59 Item 7 - Page 60 Item 7 - Page 61 Item 7 - Page 62 Item 7 - Page 63 Item 7 - Page 64 Item 7 - Page 65 Item 7 - Page 66 Item 7 - Page 67 Item 7 - Page 68 Item 7 - Page 69 Item 7 - Page 70 Item 7 - Page 71 Item 7 - Page 72 Item 7 - Page 73 Item 7 - Page 74 Item 7 - Page 75 Item 7 - Page 76 Item 7 - Page 77 Item 7 - Page 78 Item 7 - Page 79 Item 7 - Page 80 Item 7 - Page 81 Item 7 - Page 82 Item 7 - Page 83 Item 7 - Page 84 Item 7 - Page 85 Item 7 - Page 86 Item 7 - Page 87 Item 7 - Page 88 Item 7 - Page 89 Item 7 - Page 90 Item 7 - Page 91 Item 7 - Page 92 Item 7 - Page 93 Item 7 - Page 94 Item 7 - Page 95