The URL can be used to link to this page

Home My WebLink AboutItem 4 - Gedikian - Denial PacketADMINISTRATIVE APPEALS BOARD STAFF REPORT DATE: February 26, 2025 SUBJECT: APPEAL OF THE ADMINISTRATIVE DECISION TO DENY A VACATION RENTAL CERTIFICATE TO OPERATE A VACATION RENTAL FOR A PROPERTY LOCATED AT 1322 S. FARRELL DR., PALM SPRINGS, CALIFORNIA PURSUANT TO PALM SPRINGS MUNICIPAL CODE 5.25.090(b). BY: DEPARTMENT OF SPECIAL PROGRAM COMPLIANCE SUMMARY Alin and Steve Gedikian have requested an appeal of the administrative decision to deny a Vacation Rental Registration Certificate for the property located at 1322 S. Farrell Dr., pursuant to Palm Springs Municipal Code (PSMC) 5.25.090(b) related to suspension of the Vacation Rental Certificate. 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 ALIN AND STEVE GEDIKIAN FOR THE PROPERTY LOCATED AT 1322 S. FARRELL DR., PALM SPRINGS, CALIFORNIA REGARDING THE DENIAL OF A VACATION RENTAL REGISTRATION CERTIFICATE. THIS PORTION OF PAGE BLANK Item 4 - Page 1 Administrative Appeals Board Staff Report February 26, 2025 Vacation Rental Appeal – 1322 S. Farrell Dr., Palm Springs Ordinance Background On November 28, 2022, the City of Palm Springs City Council adopted Ordinance 2075 amending and restating Palm Springs Municipal Code 5.25 – Vacation Rentals. Palm Springs Municipal Code Chapter 5.25. defines Vacation Rental Registration Certificate as the annual permit and/or a registration for a vacation rental or a homeshare interest issued by the city pursuant to this chapter. Palm Springs Municipal Code Chapter 5.25.090(b) states “Upon the third violation in any twelve-month period, the city manager shall suspend the vacation registration certificate for two years”. Vacation Rental 1322 S. Farrell Dr. History The property located at 1322 S. Farrell Dr, was registered as a Vacation Rental with a start date of February 2, 2023. The property was self-managed by the owner until March 7, 2024, where the certificate was transferred to the agency Apek Rentals. The city has received seven complaints towards the property between the period October 14, 2023, to November 24, 2024. In this same time frame, one citation was issued. The breakdown is below: Date of the Event Street Address Type of a Complaint Reported: Please select occupant below Upon Arrival found the following: Oct 14, 2023 1322 S Ferrell Music coming from the property Owner NO Violation found upon arrival Nov 4, 2023 1322 S Farrell Dr Parking - Number of cars Owner NO Violation found upon arrival Apr 6, 2024 1322 S Farrell Dr Parking - Number of cars Friend or Family Parking violation - Number of cars exceed the limit Apr 28, 2024 1322 S Farrell Parking - Number of cars Owner NO Violation found upon arrival May 26, 2024 1322 S Farrell Dr Parking - Number of cars Guest NO Violation found upon arrival Jun 27, 2024 1322 S Farrell Dr Trash containers visible from the street view Other Trash visible from the street view Item 4 - Page 2 Administrative Appeals Board Staff Report February 26, 2025 Vacation Rental Appeal – 1322 S. Farrell Dr., Palm Springs Nov 2, 2024 1322 South Farrell Drive Parking - Number of cars Owner NO Violation found upon arrival Additionally, an event that led to the issuance of a second and third citation was related to a complaint to the neighboring property 1344 S. Farrell Dr. on May 12, 2024. It was found that the properties, 1344 S. Farrell Dr., and 1322 S. Farrell Dr., were operating as a compound in violation of Palm Springs Municipal Code 5.25.070(c) whereas advertising and/or renting one or more vacation rentals as part of a cluster or compound is prohibited. Additionally, for the guests that were staying at 1322 S. Farrell Dr., a Contract Summary as required by 5.25.070(h) was not submitted. The property owner for 1322 S. Farrell Dr., was issued a suspension letter pursuant 5.25.090(b) whereas upon the third violation in any twelve-month period, the city manager shall suspend the vacation registration certificate for two years. DATE OF VIOLATION CITATION NUMBER VIOLATION PSMC 4/6/24 A7855 Vehicles exceeding permitted limit 5.25.070(c) 5/13/24 A8261 Advertising/Renting one or more Vacation Rental properties as part of a compound 5.25.070(c); 5/13/24 AB0714 Failure to Submit Contract Summary 5.25.070(h) While the citations were issued when the Owner of the property had an exclusive listing agreement with an Agency pursuant to Palm Springs Municipal Code 5.25.050- Agency, whereas an owner may retain an agent with an exclusive listing arrangement or a representative to assist in the compliance with the requirements of this chapter, the failure of an agent to comply with this chapter shall not relieve the owner of the owner's obligations under the provisions of this chapter. Vacation Rental Application Background On December 12, 2024, The Department of Special Program Compliance received an application request form for the property located at 1322 S. Farrell Dr., via the online request form available on Vacation Rental Website from new owners of the property. On January 7, 2024, at 11:54am, the Department of Special Program Compliance responded with information on how to register an account with the online permitting system for Vacation Rentals. This same day at 2:27pm the department received communication that the registration form was completed. At 2:38pm, staff responded that Item 4 - Page 3 Administrative Appeals Board Staff Report February 26, 2025 Vacation Rental Appeal – 1322 S. Farrell Dr., Palm Springs the application request has been placed on hold due to a suspension on the property ending June 6, 2026. The new owners began conversation with staff with on the next steps on a possible resolution. Staff advised that since the application was denied, pursuant to 5.25.060(c) whereas a vacation rental registration certificate shall be denied if a registration certificate for the same unit and issued to the same owner has previously been revoked pursuant to Section 5.25.090. The denial of a registration certificate for any reason may be appealed in accordance with the provisions of Chapter 2.50 of the Municipal Code. An appeal of the denial was received January 23, 2025. Staff Analysis Effective June 6, 2024, The City Manager pursuant to Palm Springs Municipal Code 5.25.090(b) suspended the Vacation Rental Certificate for the property located 1322 S. Farrell Dr., for a period of two years, ending June 6, 2026. Staff has found that the subject property was sold with effective date of December 3, 2024. Pursuant to 5.25.060 (d) upon change of property ownership, the registration certificate shall expire and the property shall not be used as a vacation rental until the new or successor owner is issued a vacation registration certificate for the property. The purpose of the Vacation Rental chapter is to establish a regulatory program for Vacation Rental and Homesharing lodging, with appropriate standards that regulate Vacation Rental of residential property, minimize adverse effects of Vacation Rental uses on surrounding residential neighborhoods, ensure that Vacation Rentals and Homesharing are ancillary and secondary uses of residential property consistent with the provisions of the city's zoning ordinance, preserve the character of neighborhoods i The Vacation Rental chapter provides a permitting process and imposes operational requirements consistent with the ancillary and secondary status of Vacation Rentals and Homesharing, for the purpose of minimizing the potential adverse impacts of transient uses on residential neighborhoods. As a process, staff will not issue a Vacation Rental Registration Certificate for a property that has been suspended due to violations where a new owner has taken possession of the property and desires to apply for a Vacation Rental Registration Certificate due to the previous impacts on the residential neighborhood. While two of the citations issued were operational in nature, meaning not guest related such as music, noise etc., Palm Springs Municipal Code 5.25.090(b) does not distinguish between violations; a violation is a violation. Item 4 - Page 4 Administrative Appeals Board Staff Report February 26, 2025 Vacation Rental Appeal – 1322 S. Farrell Dr., Palm Springs In conclusion, staff recommends upholding the staff decision denying the application request to the new owners of 1322 S. Farrell Dr., for a Vacation Rental Certificate due to the suspension issued to the previous property owner. The following Palm Springs Municipal Codes 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,…” The Palm Springs Municipal Code §5.25.060, reads as follows: (c) A vacation rental registration certificate shall be denied if a registration certificate for the same unit and issued to the same owner has previously been revoked pursuant to Section 5.25.090. The denial of a registration certificate for any reason may be appealed in accordance with the provisions of Chapter 2.50 of the Municipal Code The Palm Springs Municipal Code §5.25.090, reads as follows (b) Upon the third violation in any twelve month period, the city manager shall suspend the vacation registration certificate for two years. Notwithstanding the preceding sentence, failure by any person who is responsible to remit to the city the city's transient occupancy tax pursuant to Chapter 3.24 following written notice to do so, shall result in a suspension for 12 months of that person's vacation registration certificate for the applicable property. THIS PORTION OF PAGE BLANK Item 4 - Page 5 Administrative Appeals Board Staff Report February 26, 2025 Vacation Rental Appeal – 1322 S. Farrell Dr., Palm Springs Patrick Clifford Assistant Director Department of Special Program Compliance Attachments: Resolution no. _____ 1 Notice of Appeal Hearing 2 Administrative Appeal Letter 3 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 ALIN AND STEVE GEDIKIAN FOR THE PROPERTY LOCATED AT 1322 S. FARRELL DR., PALM SPRINGS, CALIFORNIA REGARDING THE DENIAL OF A 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 On November 28, 2022, the City of Palm Springs City Council adopted Ordinance 2075 amending and restating Palm Springs Municipal Code 5.25 – Vacation Rentals; and WHEREAS, Vacation rentals and homesharing are only allowed as ancillary and secondary uses of residential property in the city; and WHEREAS, The Vacation Rental Ordinance provides a permitting process and imposes operational requirements consistent with the ancillary and secondary status of vacation rentals and homesharing, for the purpose of minimizing the potential adverse impacts of transient uses on residential neighborhoods; and WHEREAS, Pursuant to Palm Springs Municipal Code 5.25.090(b) Upon the third violation in any twelve-month period, the city manager shall suspend the vacation registration certificate for two years; and WHEREAS, The Registration Certificate issued to owner on record for the property located at 1322 S. Farrell Dr., was suspended for a period of two-years pursuant to Palm Springs Municipal Code 5.25.090(b) effective June 6,2024; and WHEREAS, Property records for 1322 S. Farrell Dr., show that the property was sold to new owners effective December 3, 2024; and WHEREAS, Pursuant to Palm Springs Municipal Code 5.25.060 (d) upon change of property ownership, the registration certificate shall expire, and the property shall not be used as a vacation rental until the new or successor owner is issued a vacation registration certificate for the property and WHEREAS, On December 12, 2024, The Department of Special Program Compliance received an application request form for the property located at 1322 S. Farrell Dr.; and Item 4 - Page 8 Resolution No. Page 2 WHEREAS, On January 7, 2024, the Department of Special Program Compliance, staff responded that the application request for a Vacation rental Certificate was denied due to a suspension on the property ending June 6, 2026. WHEREAS, The Department of Special Program Compliance denied the application request for a Vacation Rental Certificate for the purpose of minimizing the potential adverse impacts of transient uses on residential neighborhoods; and WHEREAS, Pursuant to Palm Springs Municipal Code 5.25.060(c) the denial of a registration certificate for any reason may be appealed in accordance with the provisions of Chapter 2.50 of the Municipal Code. WHEREAS, Alin and Steve Gedikian, owners for the property located at 1322 S. Farrell Dr., filed an administrative appeal of the denial of Vacation Rental Registration Certificate for the property located at 1322 S. Farrell Dr., Palm Springs with the City Clerk; and WHEREAS, the Administrative Appeals Board opened and conducted a duly noticed Administrative Appeal Hearing on February 26, 2025; and WHEREAS, the Administrative Appeals Board was presented evidence of the denial of the Vacation Rental Certificate pursuant to Section 5.25.090(b) 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 February 26, 2025; 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 5.25.090(b). The Administrative Appeals Board upholds the administrative decision denying a Vacation Rental Certificate to operate a vacation rental for a property located at 1322 S. Farrell Dr., Palm Springs, California The Appellant is in violation of Palm Springs Municipal Code 5.25.090(b). The Administrative Appeals Board overturns the administrative decision denying a Vacation Rental Certificate to operate a vacation rental for a property located at 1322 S. Farrell Dr., Palm Springs, California Item 4 - Page 9 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 2025. 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: 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 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 City of Palm Springs FINANCE DEPARTMENT PO Box 2743 Palm Springs, CA 92263-2743 +1 (760) 323-8299 Like No Place Else! 01/23/2025 03:12PM Christine 003857-0010 MISCELLANEOUS OTHER CHARGE CURRENT SVC (OTHCHG) 2025 Item: OTHCHG 1 @ $911.0000 Balance unpaid: -$911.00 OTHER CHARGE CURRENT SVC (OTHCHG) $911.00 -------------- $911.00 Subtotal $911.00 Total $911.00 EERP TYLER PAYMENTS CC $911.00 Visa ************9177 Ref=f47569f3-00ad-4f49-9ef9-ece319b2785d Auth=06826I -------------- Change due $0.00 Thank you for your payment City of Palm Springs COPY DUPLICATE RECEIPT Item 4 - Page 16