HomeMy WebLinkAboutItem 5 - Osaze
ADMINISTRATIVE APPEALS BOARD STAFF REPORT
DATE: December 28, 2022
SUBJECT: APPEAL OF THE ADMINISTATIVE DECISION OF A SIX-MONTH
SUSPENSION OF THE VACATION RENTAL REGISTRATION
CERTIFICATE AND THE ADMINISTRATIVE FINE OF $2500.00 TO
WESLEY OSAZE FOR THE PROPERTY LOCATED AT 1585 MADRONA
DR., PALM SPRINGS.
BY: Office of Special Programs Compliance Department
SUMMARY
Wesley Osaze has requested an appeal of the 6-month suspension of the Vacation
Rental Registration Certificate and the administrative fine of $2500.00 for failure of
submitting a Contract Summary to the Enforcement Official for the property located at
1585 Madrona Dr., 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 WESLEY OSAZE FOR THE PROPERTY LOCATED AT 1585
MADRONA DR., PALM SPRINGS REGARDING ADMINISTRATIVE CITATION
AB0415 ISSUED IN THE AMOUNT OF $2,500 AND THE ADMINISTATIVE
DECISION OF A SIX-MONTH SUSPENSION OF THE VACATION RENTAL
REGISTRATION CERTIFICATE
THIS PORTION OF PAGE BLANK
Administrative Appeals Board Staff Report
December 28, 2022 - Page 2
Vacation Rental Appeal – 1585 Madrona Dr., Palm Springs
STAFF ANALYSIS:
The owner for the property located at 1585 Madrona Dr. was issued administrative citation
AB0415 for failure to file contract summaries to the Enforcement Official as required by
The Vacation Rental Ordinance 1918 for guests stays of 28 days or less at a Vacation
Rental.
The Vacation Rental Ordinance No. 1918 (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 determined after comparing Contract
Summary submissions to remitted Transient Occupancy Tax that Transient Occupancy
Tax was remitted to the City for the months July and August 2022 but there were no
Contract Summaries submitted for the respective short-term stays.
Staff finds that based on the information reviewed, that short-term vacation rental use at
the property 1585 Madrona Dr. 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 AB0415 in the amount of $2,500.00 to Wesley Osaze, the owner 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.
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
Administrative Appeals Board Staff Report
December 28, 2022 - Page 3
Vacation Rental Appeal – 1585 Madrona Dr., Palm Springs
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
($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
Administrative Appeals Board Staff Report
December 28, 2022 - Page 4
Vacation Rental Appeal – 1585 Madrona Dr., Palm Springs
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
Executive Program Administrator
Attachments:
Resolution no. _____ Decision of the Administrative Appeals Board 1
Notice of Appeal Hearing 2
Administrative Citation Appeal Letter 3
Administrative Citation AB0415 4
Suspension Letter 5
Contract Summary Review 6
Transient Occupancy Tax Review 7
ATTACHMENT 1
RESOLUTION NO. ___
A RESOLUTION OF THE ADMINISTRATIVE APPEALS
BOARD OF THE CITY OF PALM SPRINGS, CALIFORNIA,
ON THE APPEAL OF WESLEY OSAZE FOR THE
PROPERTY LOCATED AT 1585 MADRONA DR., PALM
SPRINGS REGARDING ADMINISTRATIVE CITATION
AB0415 ISSUED IN THE AMOUNT OF $2,500 AND THE
ADMINISTATIVE DECISION OF A SIX-MONTH
SUSPENSION OF THE VACATION RENTAL
REGISTRATION CERTIFICATE
Jurisdiction: This administrative hearing is conducted in accordance with Palm
Springs Municipal Code 2.50 which confers jurisdiction upon the Administrative Appeals
Board.
WHEREAS, Wesley Osaze 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 1585 Madrona Dr., hosted guests for a period of twenty-eight (28) consecutive
days or less; and
WHEREAS, Administrative Citation No. AB0415 failure to file a Contract
Summary was issued on October 27, 2022 to Wesley Osaze for the property located at
1585 Madrona Dr., Palm Springs; and
WHEREAS, Wesley Osaze filed an administrative appeal of the Administrative
Citation No. AB0415 for failure to file Contract Summaries prior to occupancies for the
property 1585 Madrona Dr., 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 28, 2022; and
Resolution ____
Page 2
WHEREAS, the Administrative Appeals Board was presented prima facie
evidence that Wesley Osaze 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 28,
2022; 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 Wesley Osaze for the property located at
1585 Madrona Dr., 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 Wesley Osaze for the property located at
1585 Madrona Dr., Palm Springs
THIS PORTION OF PAGE BLANK
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 2022.
Michael Paonessa
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
ATTACHMENT 2
ATTACHMENT 3
ATTACHMENT 4
ATTACHMENT 5
November 21, 2022
Wesley Osaze
City of Palm Springs
Department of Special Program Compliance
4 25 North C ivic Drive • Palm Springs, Ca li fo rnia 92 262
Te l: 76 0 .322-8382 • Fax : 760 .3 22.83 17 • TD D 76 0 .864 .95 27 • www.pa lm springs ca .gov
Re: Suspension of Short-Term Vacation Rental Registration Certificate for 1585 Madrona Dr., Palm Springs, CA
92264
Upon review of the recent activity at your sho rt -term rental property located at 1585 Madrona Dr., 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 12, 2022, and will end on June 12,
2023 . 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 s ix (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 quest ions .
Should you choose to appeal this suspension , your suspension does go into effect on December 12, 2022, in
accordance with this lette r, 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).
Pos t Office Box 2743 • Pa l m Springs , C aliforni a 92263-2743
To exercise your option to appeal , your completed Written Notice of Appeal Form with the non -refundable
appeal fee of $857 must be received by the City Clerk 's office no later than December 12, 2022, and should be
addressed to :
Respectfully,
Teresa Gallavan
Interim City Manager
Cc: File
City of Palm Springs
Office of the City Clerk
3200 E. Tahquitz Canyon Way, Palm Springs, CA 92263
ATTACHMENT 6
Contract Year: 2022Row Labels Count of Contract Summary ID Number5001 15002 105003 155004 15005 355007 15009 15013 25015 45016 105017 85019 65023 225025 165030 65032 165033 35039 25040 25042 55043 205046 175062 85063 35069 245073 25074 85075 15086 115087 95089 35090 85091 105093 85095 85097 1Grand Total 307
ATTACHMENT 7
From:City of Palm Springs
To:TOTonlinepayments
Subject:Payment Submitted-City of Palm Springs: 28135
Date:Monday, August 22, 2022 4:12:48 PM
NOTICE: This message originated outside of The City of Palm Springs -- DO NOT CLICK on links or open attachments unless
you are sure the content is safe.
Confirmation #: 28135
Date:08/22/2022
Time:04:12 pm PST
Status: Payment Submitted
Billing Address (Credit
Card Statement
Address):
Sheila Monroe
Bottom Line Investments
Item Description Amount
TaxPayment Transient Occupancy Tax (TOT)
Property/Owner Name: Wesley Osaze
Permit Number: 7524
Reporting Month: July 2022
Affirmation: Yes
Completed By: Wesley Osaze
Revenue of
Property Type: VR Rental
Tax Rate(%): 11.5
TBID Add in(%): 1
Revenue:
Resort Fees:
Total Taxable:
11.5% Tax on
1% TBID Fee on
Subtotal:
Fee/Discount Cost:
Total Charged to Credit Card ************3607:
Thank you for submitting your Transient Occupancy Tax Return online. The City will
review your submission for compliance with all regulations before this Tax Return is
considered accepted as filed.
Important: If you have more than 5 exemptions or have taken any adjustments
to your entry, you must also complete the following online forms for your
submission to be complete:
For Exemptions: Exemption Form
For Adjustments:Adjustment Form
Both forms are available on the TOT tax payment page at: Palm Springs Transient-
Occupancy-tax-tot
Please email your Exemption Form to totdesk@palmspringsca.gov
If you have any questions regarding Transient Occupancy Tax, please contact us by
email at TOTdesk@palmspringsca.gov.
From:City of Palm Springs
To:TOTonlinepayments
Subject:Payment Submitted-City of Palm Springs: 28806
Date:Wednesday, September 7, 2022 6:53:03 PM
NOTICE: This message originated outside of The City of Palm Springs -- DO NOT CLICK on links or open attachments unless
you are sure the content is safe.
Confirmation #: 28806
Date:09/07/2022
Time:06:52 pm PST
Status: Payment Submitted
Billing Address (Credit
Card Statement
Address):
Sheila Monroe
Bottom Line Investments
Item Description Amount
TaxPayment Transient Occupancy Tax (TOT)
Property/Owner Name: Wesley Osaze
Permit Number: 7524
Reporting Month: August 2022
Affirmation: Yes
Completed By: Wesley Osaze
Revenue of $
Property Type: VR Rental
Tax Rate(%): 11.5
TBID Add in(%): 1
Revenue:
Resort Fees: 0.00
Total Taxable:
11.5% Tax on
1% TBID Fee on
Subtotal:
Fee/Discount Cost:
Total Charged to Credit Card ************3607:
Thank you for submitting your Transient Occupancy Tax Return online. The City will
review your submission for compliance with all regulations before this Tax Return is
considered accepted as filed.
Important: If you have more than 5 exemptions or have taken any adjustments
to your entry, you must also complete the following online forms for your
submission to be complete:
For Exemptions: Exemption Form
For Adjustments:Adjustment Form
Both forms are available on the TOT tax payment page at: Palm Springs Transient-
Occupancy-tax-tot
Please email your Exemption Form to totdesk@palmspringsca.gov
If you have any questions regarding Transient Occupancy Tax, please contact us by
email at TOTdesk@palmspringsca.gov.