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HomeMy WebLinkAboutItem 6 - AB0583; AB0679 - Li PacketADMINISTRATIVE APPEALS BOARD STAFF REPORT DATE: May 22, 2024 SUBJECT: APPEAL OF THE ADMINISTRATIVE DECISION THAT OLIVER GUAN LI, IS PERMANENTLY INELIGIBLE TO OPERATE A VACATION RENTAL IN THE CITY OF PALM SPRINGS AND THE ADMINISTRATIVE FINES OF $5,000 AND $10,000 FOR OPERATING AN UNREGISTERED VACATION RENTAL PROPERTY LOCATED AT 2240 N. SAN GORGONIO RD., PALM SPRINGS, CALIFORNIA BY: DEPARTMENT OF SPECIAL PROGRAM COMPLIANCE SUMMARY Oliver Guan Li has requested an appeal of the permanent ineligibility to operate a Vacation Rental in the City of Palm Springs and administrative fine of $10,000.00 for operating an unregistered Vacation Rental property located at 2240 N. San Gorgonio Rd., Palm Springs. The appeal did not reference the first citation issued in the amount of $5,000. 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 OLIVER GUAN LI, FOR THE PROPERTY LOCATED AT 2240 N. SAN GORGONIO RD., PALM SPRINGS, CALIFORNIA REGARDING ADMINISTRATIVE CITATION AB0583 ISSUED IN THE AMOUNT OF $5,000, ADMINITSTRATIVE CITATION AB0679 ISSUED IN THE AMOUNT OF $10,000 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 22, 2024 Vacation Rental Appeal – 2240 N. San Gorgonio Rd., Palm Springs STAFF ANALYSIS: Citation AB0583 The owner for the property located at 2240 N. San Gorgonio Rd., Palm Springs did not hold a Vacation Rental Registration Certificate by the City of Palm Springs as of the date of violation on August 30, 2023. Staff has determined that the owner has, without a Registration Certificate, advertised and operated the property at 2240 N. San Gorgonio Rd., as a Vacation Rental from elements as follows in violation of Palm Springs Municipal Code 5.25.040 (a): 1. Advertisement Airbnb.com/rooms/888739542961136482 listed as “Palm Springs Poolside Retreat” ATTACHMENT 5 2. Advertisement Airbnb.com/rooms/888739542961136482 lists minimum stay 3- nights. ATTACHMENT 5 3. A Code Compliance Officer submitted an online booking inquiry to stay during the dates September 15, 2023, through September 23, 2023 (8-nights); ATTACHMENT 6 4. A response was received by the Code Compliance Officer confirming availability for the dates September 15, 2023, through September 23, 2023 (8- nights); ATTACHMENT 6 Staff finds that the advertisement found on Airbnb.com/rooms/888739542961136482 and inquiry affirmation for the dates September 15, 2023, through September 23, 2023 (8- nights) for stay at property 2240 N. San Gorgonio Rd., is in violation of §5.25.040(a) and proceeded to issue Administrative Citation AB0583, in the amount of $5,000, to Oliver Guan Li, the owner as listed 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. Citation AB0679 The owner for the property located at 2240 N. San Gorgonio Rd., Palm Springs did not hold a Vacation Rental Registration Certificate by the City of Palm Springs as of the date of violation on February 16, 2024 Staff has determined that the owner has, without a Registration Certificate, advertised and operated the property at 2240 N. San Gorgonio Rd., as a Vacation Rental from elements as follows in violation of Palm Springs Municipal Code 5.25.040 (a): 1. Advertisement Airbnb.com/rooms/888739542961136482 listed as “Palm Springs Poolside Retreat” ATTACHMENT 8 2. Advertisement Airbnb.com/rooms/888739542961136482 lists minimum stay 3- nights. ATTACHMENT 8 Item 6 - Page 2 Administrative Appeals Board Staff Report May 22, 2024 Vacation Rental Appeal – 2240 N. San Gorgonio Rd., Palm Springs 3. A Code Compliance Officer submitted an online booking inquiry to stay during the dates April 19, 2024, through April 23, 2024 (4-nights); ATTACHMENT 9 4. A response was received by the Code Compliance Officer confirming availability for the dates April 19, 2024, through April 23, 2024 (4-nights); ATTACHMENT 9 5. A short-term rental agreement for the dates April 19, 2024, through April 23, 2024 (4-nights) ATTACHMENT 9 Staff finds that the advertisement found on Airbnb.com/rooms/888739542961136482, inquiry affirmation and short-term rental agreement for the dates April 19, 2024, through April 23, 2024 (4-nights) for stay at property 2240 N. San Gorgonio Rd., is in violation of §5.25.040(a) and proceeded to issue Administrative Citation AB0679, in the amount of $10,000, to Oliver Guan Li, the owner as listed 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. Additional Information Two administrative citations for operating a Vacation Rental have been issued to the owner on title, with an escalating fine amount. Each citation however has the penalty of permanent ineligibility to operate a Vacation Rental in the City of Palm Springs, including the address located at 2240 N. San Gorgonio. While the appeal mentions only the second citation, staff finds that including the first citation is vital due to the permanent ineligibility penalty applied. 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: (c) Any person who operates a Vacation Rental without a Vacation Registration Certificate, shall be liable to the City for the payment of transient Item 6 - Page 3 Administrative Appeals Board Staff Report May 22, 2024 Vacation Rental Appeal – 2240 N. San Gorgonio Rd., Palm Springs 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.” THIS PORTION OF PAGE BLANK Item 6 - Page 4 Administrative Appeals Board Staff Report May 22, 2024 Vacation Rental Appeal – 2240 N. San Gorgonio Rd., Palm Springs Patrick Clifford Assistant Director Department of Special Program Compliance Attachments: Resolution no. _____ 1 Notice of Appeal Hearing 2 Administrative citation Appeal Letter 3 Administrative citation AB0583 & citation letter 4 AB0583 Copy of the Airbnb.com/rooms/888739542961136482 advertisement 5 AB0583 Copy of Code Compliance Inquiry 6 Administrative citation AB0679 & citation letter 7 AB0679 Copy of the Airbnb.com/rooms/888739542961136482 advertisement 8 AB0679 Copy of Code Compliance Inquiry 9 Copy of the title report and Residential Lease 10 THIS PORTION OF PAGE BLANK Item 6 - Page 5                     ATTACHMENT 1  Item 6 - Page 6 RESOLUTION NO. ____ A RESOLUTION OF THE ADMINISTRATIVE APPEALS BOARD OF THE CITY OF PALM SPRINGS, CALIFORNIA, ON THE APPEAL OF OLIVER GUAN LI, FOR THE PROPERTY LOCATED AT 2240 N. SAN GORGONIO RD., PALM SPRINGS, CALIFORNIA REGARDING ADMINISTRATIVE CITATION AB0583 ISSUED IN THE AMOUNT OF $5,000, ADMINITSTRATIVE CITATION AB0679 ISSUED IN THE AMOUNT OF $10,000 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 Oliver Guan Li. did not obtain a Short-Term Vacation Rental Registration Certificate for the property located at 2240 N. San Gorgonio Rd., 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, In the event the person continues to operate a vacation rental without a vacation registration certificate, the person shall be liable for an administrative fine in the amount of $10,000.00, 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. AB0583, operating a Vacation Rental without a Vacation Rental Registration Certificate, was issued on September 9, 2023, to Oliver Guan Li. for the property located at 2240 N. San Gorgonio Rd., Palm Springs; and WHEREAS, Administrative Citation No. AB0679, operating a Vacation Rental without a Vacation Rental Registration Certificate, was issued on February 21, 2024 to Oliver Guan Li. for the property located at 2240 N. San Gorgonio Rd., Palm Springs; and WHEREAS, Oliver Guan Li. filed an administrative appeal of the Administrative Citation No. AB0679 operating a Vacation Rental without a Vacation Rental Registration Item 6 - Page 7 Resolution No. Page 2 Certificate issued in the amount of $10,000 for the property located at 2240 N. San Gorgonio Rd., 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 WHEREAS, the Administrative Appeals Board was presented evidence that Oliver Guan Li. violated Section 5.25.040(a) of the Palm Springs Municipal Code by an advertisement listed on Airbnb.com/rooms/888739542961136482 for the property located at 2240 N. San Gorgonio Rd., Palm Springs; and WHEREAS, the Administrative Appeals Board was presented evidence that Oliver Guan Li. 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 2240 N. San Gorgonio Rd., Palm Springs and confirmation of a period less than twenty-eight (28) days; September 15, 2023, through September 23, 2023 (8-nights) and April 19, 2024, through April 23, 2024 (4-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 Oliver Guan Li. is permanently ineligible to operate a Vacation Rental in the City of Palm Springs, including the property located at 2240 N. San Gorgonio Rd., 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 Oliver Guan Li. is permanently ineligible to operate a Vacation Rental in the City of Palm Springs, including the property located at 2240 N. San Gorgonio Rd., Palm Springs and the fine of $5,000. The Appellant is in violation of Palm Springs Municipal Code 5.25.040(a). The Administrative Appeals Board upholds the administrative decision that Oliver Guan Li. is permanently ineligible to operate a Vacation Rental in the City of Palm Springs, including the property located at 2240 N. San Gorgonio Rd., Palm Springs and the fine of $10,000. Item 6 - Page 8 Resolution No. Page 3 The Appellant is in violation of Palm Springs Municipal Code 5.25.040(a). The Administrative Appeals Board overturns the administrative decision that Oliver Guan Li. is permanently ineligible to operate a Vacation Rental in the City of Palm Springs, including the property located at 2240 N. San Gorgonio Rd., Palm Springs and the fine of $10,000. 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 6 - Page 9                     ATTACHMENT 2  Item 6 - Page 10 Item 6 - Page 11                     ATTACHMENT 3  Item 6 - Page 12 Item 6 - Page 13 Item 6 - Page 14                     ATTACHMENT 4  Item 6 - Page 15 Item 6 - Page 16 Item 6 - Page 17 Item 6 - Page 18 Item 6 - Page 19                     ATTACHMENT 5  Item 6 - Page 20 Item 6 - Page 21 Item 6 - Page 22 Item 6 - Page 23 Item 6 - Page 24 Item 6 - Page 25 Item 6 - Page 26 Item 6 - Page 27 Item 6 - Page 28 Item 6 - Page 29 Item 6 - Page 30                     ATTACHMENT 6  Item 6 - Page 31 Item 6 - Page 32 Item 6 - Page 33 Item 6 - Page 34 Item 6 - Page 35 Item 6 - Page 36 Item 6 - Page 37 Item 6 - Page 38                     ATTACHMENT 7  Item 6 - Page 39 Item 6 - Page 40 Item 6 - Page 41 Item 6 - Page 42 Item 6 - Page 43 ATTACHMENT 8  Item 6 - Page 44 Item 6 - Page 45 Item 6 - Page 46 Item 6 - Page 47 Item 6 - Page 48 Item 6 - Page 49 Item 6 - Page 50 Item 6 - Page 51 Item 6 - Page 52 Item 6 - Page 53 Item 6 - Page 54 Item 6 - Page 55 Item 6 - Page 56 Item 6 - Page 57 Item 6 - Page 58 Item 6 - Page 59 Item 6 - Page 60 Item 6 - Page 61 ATTACHMENT 9  Item 6 - Page 62 Item 6 - Page 63 Item 6 - Page 64 Item 6 - Page 65 Item 6 - Page 66 Item 6 - Page 67 Item 6 - Page 68 Item 6 - Page 69 Item 6 - Page 70 Item 6 - Page 71 ATTACHMENT 10  Item 6 - Page 72 Item 6 - Page 73