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Home My WebLink AboutItem 4 - AB0664 - Borba PacketADMINISTRATIVE APPEALS BOARD STAFF REPORT DATE: May 22, 2024 SUBJECT: APPEAL OF THE ADMINISTRATIVE DECISION THAT JACE BORBA 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 HOMESHARE PROPERTY LOCATED AT 4018 E. PASEO LUISA, PALM SPRINGS, CALIFORNIA BY: DEPARTMENT OF SPECIAL PROGRAM COMPLIANCE SUMMARY Jace Borba 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 Homeshare property located at 4018 E. Paseo Luisa, 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 JACE BORBA, FOR THE PROPERTY LOCATED AT 4018 E. PASEO LUISA, PALM SPRINGS, CALIFORNIA REGARDING ADMINISTRATIVE CITATION AB0664 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 4 - Page 1 Administrative Appeals Board Staff Report May 22, 2024 Vacation Rental Appeal – 4018 E. Paseo Luisa, Palm Springs STAFF ANALYSIS: The owner for the property located at 4018 E. Paseo Luisa, Palm Springs did not hold a Vacation Rental Registration Certificate by the City of Palm Springs as of the date of violation on January 29, 2024. Staff has determined that the owner has, without a Registration Certificate, advertised and operated the property at 4018 E. Paseo Luisa, as a Homeshare from elements as follows in violation of Palm Springs Municipal Code 5.25.040 (a): 1. Advertisement Airbnb.com/rooms/850759067077910814 listed as “Studio Available is Palm Springs” ATTACHMENT 5 2. Advertisement Airbnb.com/rooms/850759067077910814 lists 11 reviews. ATTACHMENT 5 3. A Code Compliance Officer submitted an online booking inquiry to stay during the dates February 4, 2024, through February 10, 2024 (6-nights); ATTACHMENT 6 4. A response was received by the Code Compliance Officer confirming availability for the dates February 4, 2024, through February 10, 2024 (6- nights); ATTACHMENT 6 Staff finds that the advertisement found on Airbnb.com/rooms/850759067077910814 and inquiry affirmation for the dates February 4, 2024, through February 10, 2024 (6-nights) for stay at property 4018 E. Paseo Luisa, is in violation of §5.25.040(a) and proceeded to issue Administrative Citation AB0664, in the amount of $5,000, to Jace Borba, the owner as listed on title, for operating a Homeshare 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. Item 4 - Page 2 Administrative Appeals Board Staff Report May 22, 2024 Vacation Rental Appeal – 4018 E. Paseo Luisa, Palm Springs 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.” Administrative Regulation “Operation of a Homeshare Interest in Violation of PSMC Chapter 5.25, including without a Registration Certificate” dated 10/2023 reads as follows: “The operation of a Homeshare Interest in violation of Chapter 5.25, including, without limitation, operating a Homeshare Interest without a Registration Certificate, shall be subject to the same penalties as a person who operates a Vacation Rental in violation of Chapter 5.25, including operating without a Vacation Rental Registration Certificate. This includes the criminal, civil, administrative fines, suspension, and ineligibility penalties set forth in Section 5.25.090”. Item 4 - Page 3 Administrative Appeals Board Staff Report May 22, 2024 Vacation Rental Appeal – 4018 E. Paseo Luisa, Palm Springs Patrick Clifford Assistant Director Department of Special Program Compliance Attachments: AB0664 Resolution no. _____ 1 Notice of Appeal Hearing 2 Administrative citation Appeal Letter 3 Administrative citation AB0664 & citation letter 4 Copy of the Airbnb.com/rooms/850759067077910814 advertisement 5 Copy of Code Compliance Inquiry 6 Copy of the title report 7 THIS PORTION OF PAGE BLANK Item 4 - Page 4 ATTACHMENT 1 Item 4 - Page 5 RESOLUTION NO. ____ A RESOLUTION OF THE ADMINISTRATIVE APPEALS BOARD OF THE CITY OF PALM SPRINGS, CALIFORNIA, ON THE APPEAL OF JACE BORBA FOR THE PROPERTY LOCATED AT 4018 E. PASEO LUISA, PALM SPRINGS, CALIFORNIA REGARDING ADMINISTRATIVE CITATION AB0664 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 Jace Borba did not obtain a Short-Term Vacation Rental Registration Certificate for the property located at 4018 E. Paseo Luisa, Palm Springs, pursuant to Palm Springs Municipal Code Chapter 5.25; and WHEREAS, any person who operates a Homeshare 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, "Homesharing" means an activity whereby the owner hosts visitors in the owner's home, for compensation, for periods of 28 consecutive days or less, while the owner lives on site and in the home, throughout the visitor's stay. WHEREAS, Administrative Citation No. AB0664, operating a Homeshare without a Vacation Rental Registration Certificate, was issued on February 2, 2024, to Jace Borba for the property located at 4018 E. Paseo Luisa, Palm Springs; and WHEREAS, Jace Borba filed an administrative appeal of the Administrative Citation No. AB0664 operating a Homeshare without a Vacation Rental Registration Certificate issued in the amount of $5,000 for the property located at 4018 E. Paseo Luisa, Palm Springs with the City Clerk; and WHEREAS, the Administrative Appeals Board opened and conducted a duly noticed Administrative Appeal Hearing on May 22, 2024; and Item 4 - Page 6 Resolution No. Page 2 WHEREAS, the Administrative Appeals Board was presented evidence that Jace Borba violated Section 5.25.040(a) of the Palm Springs Municipal Code by an advertisement listed on Airbnb.com/rooms/850759067077910814 for the property located at 4018 E. Paseo Luisa, Palm Springs; and WHEREAS, the Administrative Appeals Board was presented evidence that Jace Borba is in violation of Section 5.25.040(a) of the Palm Springs Municipal Code by a response to an inquiry to book the property located at 4018 E. Paseo Luisa, Palm Springs and confirmation of a period less than twenty-eight (28) days; February 4, 2024, through February 10, 2024 (6-nights); and WHEREAS, the Administrative Appeals Board has carefully reviewed and considered all the evidence presented in connection with said appeal on May 22, 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 5.25.040(a). The Administrative Appeals Board upholds the administrative decision that Jace Borba is permanently ineligible to operate a Vacation Rental in the City of Palm Springs, including the property located at 4018 E. Paseo Luisa, 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 Jace Borba is permanently ineligible to operate a Vacation Rental in the City of Palm Springs, including the property located at 4018 E. Paseo Luisa, Palm Springs and the fine of $5,000. Item 4 - 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 2024. 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 4 - Page 8 ATTACHMENT 2 Item 4 - Page 9 Item 4 - Page 10 ATTACHMENT 3 Item 4 - Page 11 Item 4 - Page 12 Item 4 - Page 13 City of Palm Springs FINANCE DEPARTMENT PO Box 2743 Palm Springs, CA 92263-2743 +1 (760) 323-8299 Like No Place Else! 03/14/2024 11:28AM Shahriar 002432-0002 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 1500 -------------- Change due $0.00 Paid by: JACE BORBA | AB0663 - APPEAL FORM FEE Thank you for your payment CUSTOMER COPY Item 4 - Page 14 ATTACHMENT 4 Item 4 - Page 15 Item 4 - Page 16 Item 4 - Page 17 Item 4 - Page 18 Item 4 - Page 19 ATTACHMENT 5 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 ATTACHMENT 6 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 ATTACHMENT 7 Item 4 - Page 44 Item 4 - Page 45