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HomeMy WebLinkAboutItem 5 - AB0732 - Munguia PacketADMINISTRATIVE APPEALS BOARD STAFF REPORT DATE: August 28,2024 SUBJECT: APPEAL OF THE ADMINISTATIVE DECISION OF A SIX-MONTH SUSPENSION OF THE VACATION RENTAL REGISTRATION CERTIFICATE AND THE ADMINISTRATIVE FINE OF $2,500 TO MIGUEL ANGEL ROMERO MUNGUIA FOR THE PROPERTY LOCATED AT 1388 S. FARRELL DR., PALM SPRINGS. BY: Office of Special Programs Compliance Department SUMMARY Miguel Angel Romero Munguia has requested an appeal of the 6-month suspension of the Vacation Rental Registration Certificate and the administrative fine of $2,500 for failure of submitting a Contract Summary to the Enforcement Official for the property located at 1388 S. Farrell 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 THE ADMINISTRATIVE CITATION AB0732 ISSUED IN THE AMOUNT OF $2,500 TO MIGUEL ANGEL ROMERO MUNGUIA AND THE ADMINISTRATIVE DECISION OF A SIX-MONTH SUSPENSION OF THE VACATION RENTAL REGISTRATION CERTIFICATE FOR THE PROPERTY LOCATED AT 1388 S. FARRELL DR., PALM SPRINGS. THIS PORTION OF PAGE BLANK Item 5 - Page 1 Administrative Appeals Board Staff Report August 28, 2024 - Page 2 Vacation Rental Appeal – 1388 S. Farrell, Palm Springs BACKGROUND: The property located at 1388 S. Farrell Dr., Palm Springs, is a registered Vacation Rental with the City of Palm Springs with a start date of June 20, 2024 STAFF ANALYSIS: The owner for the property located at 1388 S. Farrell Dr. was issued administrative citation AB0732 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”. Initial notification of the requirement to submit a contract summary is located in the online Vacation Rental Application Section D, line item 2, accompanied by a how-to-video. Item 5 - Page 2 Administrative Appeals Board Staff Report August 28, 2024 - Page 3 Vacation Rental Appeal – 1388 S. Farrell, Palm Springs A second notification was sent at the final approval of the Vacation Rental Registration Certificate. An email was sent by staff on June 20, 2024 at 11:36am with the below information. This email shows in the online system as being opened on 7/23/2024. The letter that was emailed to the email address on file as shown in Attachment 5. The City of Palm Springs Code Compliance determined after receiving a compliant for loud music at the Vacation Rental property located at 1388 S. Farrell Dr., that the owner had not submitted a Contract Summary for the short-term Vacation Rental stay occurring on the date of the event, July 6, 2024. A review below of the Contract Summary system confirmed zero submissions in the previous Contract Summary tool that the City used and four have been submitted as of August 21, 2024 in the City’ new Contract Summary system. This is also included in Attachment 6. Item 5 - Page 3 Administrative Appeals Board Staff Report August 28, 2024 - Page 4 Vacation Rental Appeal – 1388 S. Farrell, Palm Springs Staff finds that based on the information reviewed, that short-term vacation rental use at the property 1388 S. Farrell 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 AB0732 in the amount of $2,500.00 to Miguel Angel Romero Munguia, 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 was suspended for a period of six-months starting August 19, 2024. 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 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. Item 5 - Page 4 Administrative Appeals Board Staff Report August 28, 2024 - Page 5 Vacation Rental Appeal – 1388 S. Farrell, Palm Springs 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 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”. Item 5 - Page 5 Administrative Appeals Board Staff Report August 28, 2024 - Page 6 Vacation Rental Appeal – 1388 S. Farrell, Palm Springs 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 AB0732 4 Department Notification 5 Code Officer Findings 6 Suspension Letter 7 Item 5 - Page 6                     ATTACHMENT 1  Item 5 - 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 AB0732 ISSUED IN THE AMOUNT OF $2,500 TO MIGUEL ANGEL ROMERO MUNGUIA AND THE ADMINISTRATIVE DECISION OF A SIX-MONTH SUSPENSION OF THE VACATION RENTAL REGISTRATION CERTIFICATE FOR THE PROPERTY LOCATED AT 1388 S. FARRELL DR., 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, Miguel Angel Romero Munguia 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 1388 S. Farrell Dr., hosted guests for a period of twenty-eight (28) consecutive days or less; and WHEREAS, Administrative Citation No. AB0732 failure to file a Contract Summary was issued on July 11, 2024 to Miguel Angel Romero Munguia for the property located at 1388 S. Farrell Dr., Palm Springs; and WHEREAS, Miguel Angel Romero Munguia, filed an administrative appeal of the Administrative Citation No. AB0732 for failure to file a Contract Summary prior to an occupancy for the property 1388 S. Farrell 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 August 28, 2024; and Item 5 - Page 8 Resolution ____ Page 2 WHEREAS, the Administrative Appeals Board was presented prima facie evidence that Miguel Angel Romero Munguia., 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 August 28, 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 5.25.070(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 Miguel Angel Romero Munguia., for the property located at 1388 S. Farrell 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 Miguel Angel Romero Munguia., for the property located at 1388 S. Farrell Dr., Palm Springs THIS PORTION OF PAGE BLANK Item 5 - 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 2024. Patrick Basile 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: BRENDA PREE. MMC, CERA City Clerk Item 5 - Page 10 ATTACHMENT 2  Item 5 - Page 11 Item 5 - Page 12 Item 5 - Page 13 ATTACHMENT 3  Item 5 - Page 14 Item 5 - Page 15 Item 5 - Page 16 Item 5 - Page 17 Item 5 - Page 18 Item 5 - Page 19 Item 5 - Page 20 Item 5 - Page 21 Item 5 - Page 22 Item 5 - Page 23 Item 5 - Page 24 Item 5 - Page 25 Item 5 - Page 26 Item 5 - Page 27                     ATTACHMENT 4  Item 5 - Page 28 Item 5 - Page 29 Item 5 - Page 30 Item 5 - Page 31 Item 5 - Page 32                     ATTACHMENT 5  Item 5 - Page 33 Item 5 - Page 34 June 20, 2024 Business Name: 1388 S Farrell Dr STR Registration Number: STR-046636 Property Address: 1388 S Farrell Dr Unit: Town: PALM SPRINGS Dear Registrant:MIGUEL ANGEL J ROMERO MUNGUIA Congratulations! Your application for a Vacation Rental in the City of Palm Springs has been approved. You can access your certificate in your business center under manage your account. Your City ID and TOT permit is your Account Number: 046636. Please make sure that the City ID# of 046636 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. You are required to begin submitting your Contract Summaries for each guest stay prior to arrival. Providing the contract itself is not necessary and will not be accepted as a Contract Summary. You can manage your Contract Summaries in your business center. You will see a button labeled "Manage Contract Summaries" towards the right side of the Business Center. Failure to submit a Contract Summary prior to arrival for each short-term guest stay can incur a $2500.00 citation and a six-month suspension of your Vacation Rental Certificate. You will be required to remit Transient Occupancy Tax monthly. Each month, you will be assigned a task in your business center to remit tax for the previous months tax period. Vacation Rental and Homeshare lodgings pay a 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: https://www.visitgreaterpalmsprings.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 Click here. Item 5 - Page 35                     ATTACHMENT 6  Item 5 - Page 36 Item 5 - Page 37 Item 5 - Page 38 Item 5 - Page 39 Item 5 - Page 40 Item 5 - Page 41 Item 5 - Page 42 Item 5 - Page 43 Item 5 - Page 44 Item 5 - Page 45 Item 5 - Page 46 Item 5 - Page 47 Item 5 - Page 48 Item 5 - Page 49 Item 5 - Page 50 Item 5 - Page 51 Item 5 - Page 52                     ATTACHMENT 7  Item 5 - Page 53 City of Palm Springs Department of Special Program Compliance 425 North Civic Drive • Palm Springs, California 92262 Tel: 760.322-8382 • Fax: 760.322.83 I 7 • TDD 760 .864.9527 • www.palmspringsca.go\' July 25, 2024 Miguel Angel Romero Munguia Re: Suspension of Short-Term Vacation Rental Registration Certificate #046636 for 1388 S. Farrell Dr .• Palm Springs, CA 92264 Upon review of the recent activity at your short-term rental property located at 1388 S. Farrell Dr., 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 August 19, 2024, and will end on February 19, 2025. 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 S.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. 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 questions. Should you choose to appeal this suspension, your suspension does go into effect on August 19. 2024, in accordance with this letter, 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). Post Office Box 2743 • Palm Springs, California 92263-2743 Item 5 - Page 54 To exercise your option to appeal, your completed Written Notice of Appeal Form with the non-refundable appeal fee of $911 must be received by the City Clerk's office no later than August 15, 2024, and should be addressed to: City of Palm Springs Office of the City Clerk 3200 E. Tahquitz Canyon Way, Palm Springs, CA 92263 Respectfully, �� City Manager Cc: File Item 5 - Page 55