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HomeMy WebLinkAboutAB0611 - Beknazarian PacketADMINISTRATIVE APPEALS BOARD STAFF REPORT DATE: December 27, 2023 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 ALISA & ROBERT BEKNAZARIAN FOR THE PROPERTY LOCATED AT 1105 VIA SAN MICHAEL RD., PALM SPRINGS. BY: Office of Special Programs Compliance Department SUMMARY Robert Beknazarian has 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 1105 Via San Michael Rd., 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 AB0611 ISSUED IN THE AMOUNT OF $2,500 TO ALISA & ROBERT BEKNAZARIAN AND THE ADMINISTRATIVE DECISION OF A SIX-MONTH SUSPENSION OF THE VACATION RENTAL REGISTRATION CERTIFICATE FOR THE PROPERTY LOCATED AT 1105 VIA SAN MICHAEL RD., PALM SPRINGS. THIS PORTION OF PAGE BLANK Item 4 - Page 1 Administrative Appeals Board Staff Report December 27, 2023 - Page 2 Vacation Rental Appeal – 1105 Via San Michael Rd., Palm Springs BACKGROUND: The property located at 1105 Via San Michael Rd., Palm Springs is a registered Vacation Rental with the City of Palm Springs with a start date of September 1, 2022. STAFF ANALYSIS: The owners for the property located at 1105 Via San Michael Rd. were issued administrative citation AB0611 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 1105 Via San Michael Rd., 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 has 25 short-term rental stays between January 14, 2023, through October 9, 2023 and zero contract summaries were submitted. Attachment 6. A review below of the Contract Summary system confirmed zero submissions before September 15, 2023 and is also included in Attachment 6. Item 4 - Page 2 Administrative Appeals Board Staff Report December 27, 2023 - Page 3 Vacation Rental Appeal – 1105 Via San Michael Rd., Palm Springs Staff finds that based on the information reviewed, that short-term vacation rental use at the property 1105 Via San Michael Rd., 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 AB0611 in the amount of $2,500.00 to Alisa & Robert Beknazarian, 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 January 14, 2024. Attachment 7. Additional Information During the drafting of the Staff Report, staff noticed that screen printouts of the Contract Summary tool were provided by the appellant. These screen printouts have date stamps. Concerned that these screen printouts may have been doctored, in response to the audit requested, staff reviewed the revisions and history made to the City’s Contract Summary Tool. Staff found that on February 27, 2023, an edit was made to the Contract Summary tool removing the following specific language “Owners/Owner's Family and Friends occupancies, whom are listed on the Friends and Family list submitted to the compliance department, do not require a Contract Summary”. Anyone accessing the Contract Summary tool before February 27, 2023 would see older language including the removed language stated above. A further confirmation was reviewed with a revision made on September 1, 2022, confirming that the older language was live and no other revisions were made until after September 7, 2022. Staff finds that the screen printouts provided with the appeal do not support the live version of the Contract Summary tool at that time listed on the screen printouts. February 27, 2023 Item 4 - Page 3 Administrative Appeals Board Staff Report December 27, 2023 - Page 4 Vacation Rental Appeal – 1105 Via San Michael Rd., Palm Springs February 9, 2023 September 1, 2022 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: Item 4 - Page 4 Administrative Appeals Board Staff Report December 27, 2023 - Page 5 Vacation Rental Appeal – 1105 Via San Michael Rd., Palm Springs 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 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 Item 4 - Page 5 Administrative Appeals Board Staff Report December 27, 2023 - Page 6 Vacation Rental Appeal – 1105 Via San Michael Rd., Palm Springs ($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”. Patrick Clifford Assistant Director Attachments: Resolution no. _____ Decision of the Administrative Appeals Board 1 Notice of Appeal Hearing 2 Administrative Citation Appeal Letter 3 Administrative Citation AB0611 4 Department Notification 5 Code Officer Report 6 Suspension Letter 7 Item 4 - Page 6                     ATTACHMENT 1  Item 4 - Page 7 RESOLUTION NO. ___ A RESOLUTION OF THE ADMINISTRATIVE APPEALS BOARD OF THE CITY OF PALM SPRINGS, CALIFORNIA, ON THE APPEAL OF THE ADMINISTRATIVE CITATION AB0611 ISSUED IN THE AMOUNT OF $2,500 TO ALISA & ROBERT BEKNAZARIAN AND THE ADMINISTRATIVE DECISION OF A SIX-MONTH SUSPENSION OF THE VACATION RENTAL REGISTRATION CERTIFICATE FOR THE PROPERTY LOCATED AT 1105 VIA SAN MICHAEL RD., 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, Alisa & Robert Beknazarian 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 1105 Via San Michael Rd., hosted guests for a period of twenty-eight (28) consecutive days or less; and WHEREAS, Administrative Citation No. AB0611 failure to file a Contract Summary was issued on October 13, 2023 to Alisa & Robert Beknazarian for the property located at 1105 Via San Michael Rd., Palm Springs; and WHEREAS, Alisa & Robert Beknazarian, filed an administrative appeal of the Administrative Citation No. AB0611 for failure to file a Contract Summary prior to an occupancy for the property 1105 Via San Michael Rd., 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 December 27, 2023; and Item 4 - Page 8 Resolution ____ Page 2 WHEREAS, the Administrative Appeals Board was presented prima facie evidence that Alisa & Robert Beknazarian 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 December 27, 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 5.25.070(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 Alisa & Robert Beknazarian for the property located at 1105 Via San Michael Rd., 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 Alisa & Robert Beknazarian for the property located at 1105 Via San Michael Rd., Palm Springs THIS PORTION OF PAGE BLANK Item 4 - Page 9 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 2023. 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 4 - Page 10                     ATTACHMENT 2  Item 4 - Page 11 Item 4 - Page 12                     ATTACHMENT 3  Item 4 - Page 13 Item 4 - Page 14 Item 4 - Page 15 Item 4 - Page 16 Item 4 - Page 17 Item 4 - Page 18 Item 4 - Page 19 Item 4 - Page 20 Item 4 - Page 21 Item 4 - Page 22 Item 4 - Page 23 Item 4 - Page 24 Item 4 - Page 25 Item 4 - Page 26 Item 4 - Page 27 Item 4 - Page 28 Item 4 - Page 29 Item 4 - Page 30 Item 4 - Page 31 Item 4 - Page 32 Item 4 - Page 33 Item 4 - Page 34 Item 4 - Page 35 Item 4 - Page 36 Item 4 - Page 37 Item 4 - Page 38 Item 4 - Page 39 Item 4 - Page 40 Item 4 - Page 41 Item 4 - Page 42 Item 4 - Page 43 Item 4 - Page 44 Item 4 - Page 45 Item 4 - Page 46 Item 4 - Page 47 Item 4 - Page 48 Item 4 - Page 49 Item 4 - Page 50 Item 4 - Page 51 Item 4 - Page 52 Item 4 - Page 53 Item 4 - Page 54 Item 4 - Page 55 Item 4 - Page 56 Item 4 - Page 57 Item 4 - Page 58 Item 4 - Page 59 Item 4 - Page 60 Item 4 - Page 61 Item 4 - Page 62 Item 4 - Page 63 Item 4 - Page 64 Item 4 - Page 65 Item 4 - Page 66 Item 4 - Page 67 Item 4 - Page 68 Item 4 - Page 69 Item 4 - Page 70 Item 4 - Page 71 Item 4 - Page 72 Item 4 - Page 73 Item 4 - Page 74 Item 4 - Page 75 Item 4 - Page 76 Item 4 - Page 77 Item 4 - Page 78 Item 4 - Page 79 Item 4 - Page 80 Item 4 - Page 81 Item 4 - Page 82 Item 4 - Page 83 Item 4 - Page 84 Item 4 - Page 85 Item 4 - Page 86 Item 4 - Page 87 Item 4 - Page 88 Item 4 - Page 89 Item 4 - Page 90 Item 4 - Page 91 Item 4 - Page 92 Item 4 - Page 93 Item 4 - Page 94 Item 4 - Page 95 Item 4 - Page 96 Item 4 - Page 97 Item 4 - Page 98 Item 4 - Page 99 Item 4 - Page 100 Item 4 - Page 101 Item 4 - Page 102 Item 4 - Page 103 Item 4 - Page 104 Item 4 - Page 105 Item 4 - Page 106 Item 4 - Page 107 Item 4 - Page 108 Item 4 - Page 109 Item 4 - Page 110 Item 4 - Page 111 Item 4 - Page 112 Item 4 - Page 113 Item 4 - Page 114 Item 4 - Page 115 Item 4 - Page 116 Item 4 - Page 117 Item 4 - Page 118 Item 4 - Page 119 Item 4 - Page 120 Item 4 - Page 121 Item 4 - Page 122 Item 4 - Page 123 Item 4 - Page 124 Item 4 - Page 125 Item 4 - Page 126 Item 4 - Page 127 Item 4 - Page 128                     ATTACHMENT 4  Item 4 - Page 129 Item 4 - Page 130 Item 4 - Page 131 Item 4 - Page 132 Item 4 - Page 133                     ATTACHMENT 5  Item 4 - Page 134 John Stamback-Sawyer From: John Stamback-Sawyer Sent: Monday, August 29, 2022 9:09 AM To: Alisa Bokhchalian; 'vacationhausrentals@gmail.com' Subject: 1105 Via San Michael Rd Attachments: Statement of Rules Regulations - Copy - Copy.pdf, PSDS Vacation Rental Letter.pdf; Good Neighbor Brochure.pdf; July 2022 VR Newsletter.pdf, Vacation Rental FAQs.pdf; TOT & TBID monthly return.110321.pdf, Calendar 2022 Delinquent Dates.pdf Hello, Please read this email in its entirety including the documents I have attached. Your vacation rental registration certificate has been fully processed and is effective 09/01/2022; your City ID # is 4384 and your TOT permit # is 9210. Please make sure that the City ID# of 4384 is posted on all advertising in accordance with PSMC 5.25.040 (f). Not posting the ID# on your advertising can incur a $2500.00 citation and a six-month suspension. Attached is the link to our Contract Summary tool httDs://www.iDalmsDringsca.2ov/government/dei)artments/special-Dropram-comDliance/vacation- rentals/submit-contract-summary; you are required to begin submitting your Contract Summaries using this tool for each guest stay prior to arrival. Providing the contract itself is not necessary and will not be accepted as a Contract Summary. You cannot submit Contract Summaries retroactively. Also, be aware your prorated contracts for the 2022 calendar year are sixteen (16) contracts, plus an additional four (4) contracts during the 3rd Qtr (July, August & September). These additional contracts are only for reservations where the guest arrives and departs during the 3rd Quarter months only. If you do not use the additional four (4) contracts, or portions thereof, by the end of the 3rd Qtr you will lose them. In addition, I have attached a blank TOT return and a calendar for your convenience. Please save this TOT return for future monthly filings. You may also go to https://www.12almsprin2sca.gov/government/departments/finance-treasury/transient-occupancy-tax-tot to pay online. Starting in September, it is your responsibility to submit Transient Occupancy monthly returns whether you had rental revenue or not. You may submit "zero' returns by emailing TOTdesk@palmspringsca.gov. If you have questions regarding the tax process, please contact the TOT Desk at 760.323.8226 or TOTdesk@palmspring.sca.gov. Starting July 1, 2021, Vacation Rental and Homeshare lodgings began 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: ht!ps://www.visitgreateEpalmsprings.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. For more information on the 1% TBID Click here. To sign up for our e-notification to keep informed of stakeholder meetings, newsletters and up to date information https://www.12almspringsca.gov/government/departments/special-program-compliance/vacation- rentals/e-notification-si n-up. Item 4 - Page 135                     ATTACHMENT 6  Item 4 - Page 136 Item 4 - Page 137 Item 4 - Page 138 Item 4 - Page 139 Item 4 - Page 140 Item 4 - Page 141 Item 4 - Page 142 Item 4 - Page 143 Item 4 - Page 144 Item 4 - Page 145 Item 4 - Page 146 Item 4 - Page 147 Item 4 - Page 148 Item 4 - Page 149 Item 4 - Page 150 Item 4 - Page 151 Item 4 - Page 152 Item 4 - Page 153 Item 4 - Page 154 Item 4 - Page 155 Item 4 - Page 156 Item 4 - Page 157 Item 4 - Page 158 Item 4 - Page 159 Item 4 - Page 160 Item 4 - Page 161 Item 4 - Page 162 Item 4 - Page 163 Item 4 - Page 164 Item 4 - Page 165 Item 4 - Page 166 Item 4 - Page 167 Item 4 - Page 168 Item 4 - Page 169 Item 4 - Page 170 Item 4 - Page 171 Item 4 - Page 172 Item 4 - Page 173 Item 4 - Page 174                     ATTACHMENT 7  Item 4 - Page 175 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 December 21, 2023    rt Beknazarian       Re:  Suspension of Short‐Term Vacation Rental Registration Certificate #4384 for 1105 Via San Michael Rd.,  Palm Springs, CA.    Upon review of the recent activity at your short‐term rental property located at 1105 Via San Michael Rd., Palm  Springs, 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 January 14, 2024, and will  end on July 14, 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.    Records show that an appeal has been scheduled for December 27, 2023. Subject to the resolution of the appeal,  your suspension will go into effect on January 14, 2024 in accordance with this letter.     Respectfully,      Scott Stiles  City Manager    Item 4 - Page 176