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HomeMy WebLinkAboutItem 4 - AB0754 - Kirakosyan PacketADMINISTRATIVE APPEALS BOARD STAFF REPORT DATE: March 19, 2025 SUBJECT: APPEAL OF THE ADMINISTRATIVE DECISION THAT ARMINE KIRAKOSYAN IS PERMANENTLY INELIGIBLE TO OPERATE A VACATION RENTAL IN THE CITY OF PALM SPRINGS AND THE ADMINISTRATIVE FINE OF $10,000 FOR OPERATING AN UNREGISTERED VACATION RENTAL PROPERTY LOCATED AT 3149 E. VENTURA RD., PALM SPRINGS, CALIFORNIA BY: DEPARTMENT OF SPECIAL PROGRAM COMPLIANCE SUMMARY Armine Kirakosyan 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 3149 E. Ventura Rd., 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 ARMINE KIRAKOSYAN, FOR THE PROPERTY LOCATED AT 3149 E. VENTURA RD., PALM SPRINGS, CALIFORNIA REGARDING ADMINISTRATIVE CITATION AB0754 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 4 - Page 1 Administrative Appeals Board Staff Report March 19, 2025 Vacation Rental Appeal – 3149 E. Ventura Rd., Palm Springs BACKGROUND The property located at 3149 E. Ventura Rd., was previously a registered Vacation Rental with the Registration Certificate #4048. The Registration Certificate was suspended for a period of two-years effective February 20, 2023, and ending February 20, 2025. ATTACHMENT 4 On March 23, 2023, The City of Palm Springs Code Compliance issued citation AB0500 for operating a Vacation Rental without a Registration Certificate (ATTACHMENT 5) pursuant to Palm Springs Municipal Code 5.25.040(a) and 5.25.090(c). No appeal was received, and payment has not been made towards the citation. On August 17, 2023, The Department of Special Program Compliance received a closure form requesting the closure of the Transient Occupancy Tax Permit #7127 and Vacation Rental Registration Certificate #4048. ATTACHMENT 6 On January 29, 2025, The City of Palm Springs Code Compliance issued citation AB0754 for operating a Vacation Rental without a Registration Certificate pursuant to Palm Springs Municipal Code 5.25.040(a) and 5.25.090(c). ATTACHMENT 7 STAFF ANALYSIS: The owner for the property located at 3149 E. Ventura Rd., Palm Springs did not hold a Vacation Rental Registration Certificate by the City of Palm Springs as of the date of violation on January 26, 2025. Staff has determined that the owner has, without a Registration Certificate, advertised and operated the property at 3149 E. Ventura 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/27665473 listed as “Four Bedroom Palm Springs Pool/Jacuzzi Home with No Occupancy Tax” ATTACHMENT 8 2. Advertisement Airbnb.com/rooms/27665473 lists minimum stay of 13-nights ATTACHMENT 8 3. A Code Compliance Officer submitted an online booking inquiry to stay during the dates April 23, 2025, through May 6, 2025 (13-nights); ATTACHMENT 9 4. A response was received by the Code Compliance Officer confirming availability for the dates April 23, 2025, through May 6, 2025 (13-nights); ATTACHMENT 9 Staff finds that the advertisement found on Airbnb.com/rooms/27665473 and inquiry affirmation for the dates April 23, 2025, through May 6, 2025 (13-nights) for stay at property 3149 E. Ventura Rd., is in violation of §5.25.040(a) and proceeded to issue Administrative Citation AB0754, in the amount of $10,000, to Armine Kirakosyan, the owner on title, for operating a Vacation Rental without a Vacation Rental Registration Item 4 - Page 2 Administrative Appeals Board Staff Report March 19, 2025 Vacation Rental Appeal – 3149 E. Ventura Rd., Palm Springs 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. 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.” Item 4 - Page 3 Administrative Appeals Board Staff Report March 19, 2025 Vacation Rental Appeal – 3149 E. Ventura Rd., Palm Springs 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.” Patrick Clifford Assistant Director Department of Special Program Compliance Attachments: AB0754 Resolution no. _____ 1 Notice of Appeal Hearing 2 Administrative citation Appeal Letter 3 Suspension Letter Dated 2/2/23 4 Administrative citation AB0500 5 Request to closure form 6 Administrative citation AB0754 & citation letter 7 Copy of the Airbnb.com/rooms/27665473 advertisement 8 Copy of Code Compliance Inquiry 9 Copy of the title report 10 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 ARMINE KIRAKOSYAN, FOR THE PROPERTY LOCATED AT 3149 E. VENTURA RD., PALM SPRINGS, CALIFORNIA REGARDING ADMINISTRATIVE CITATION AB0754 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 Armine Kirakosyan did not obtain or was not issued a Short-Term Vacation Rental Registration Certificate for the property located at 3149 E. Ventura Rd., Palm Springs, as of the violation date of February 2, 2025, 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 any successive violations shall be subject to fines provided in an escalation formula established by the city council by resolution; 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. AB0754, operating a Vacation Rental without a Vacation Rental Registration Certificate, was issued on January 29, 2025, to Armine Kirakosyan for the property located at 3149 E. Ventura Rd., Palm Springs; and WHEREAS, Armine Kirakosyan filed an administrative appeal of the Administrative Citation No. AB0754 operating a Vacation Rental without a Vacation Rental Registration Certificate issued in the amount of $10,000 for the property located at 3149 E. Ventura Rd., Palm Springs with the City Clerk; and Item 4 - Page 6 Resolution No. Page 2 WHEREAS, the Administrative Appeals Board opened and conducted a duly noticed Administrative Appeal Hearing on March 19, 2025, and WHEREAS, the Administrative Appeals Board was presented evidence that Armine Kirakosyan violated Section 5.25.040(a) of the Palm Springs Municipal Code by an advertisement listed on Advertisement Airbnb.com/rooms/27665473 for the property located at 3149 E. Ventura Rd., Palm Springs; and WHEREAS, the Administrative Appeals Board was presented evidence that Armine Kirakosyan 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 3149 E. Ventura Rd., Palm Springs and confirmation of a period less than twenty-eight (28) days; April 23, 2025, through May 6, 2025 (13-nights); and WHEREAS, the Administrative Appeals Board has carefully reviewed and considered all the evidence presented in connection with said appeal on March 19, 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 5.25.040(a). The Administrative Appeals Board upholds the administrative decision that Armine Kirakosyan is permanently ineligible to operate a Vacation Rental in the City of Palm Springs, including the property located at 3149 E. Ventura Rd., Palm Springs and the fine of $10,000. The Appellant is not in violation of Palm Springs Municipal Code 5.25.040(a). The Administrative Appeals Board overturns the administrative decision that Armine Kirakosyan is permanently ineligible to operate a Vacation Rental in the City of Palm Springs, including the property located at 3149 E. Ventura Rd., Palm Springs and the fine of $10,000. 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 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 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                     ATTACHMENT 4  Item 4 - Page 14 Item 4 - Page 15 Item 4 - Page 16                     ATTACHMENT 5  Item 4 - Page 17 Item 4 - Page 18 Item 4 - Page 19 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                     ATTACHMENT 6  Item 4 - Page 32 Item 4 - Page 33                     ATTACHMENT 7  Item 4 - Page 34 Item 4 - Page 35 Item 4 - Page 36 Item 4 - Page 37 Item 4 - Page 38 ATTACHMENT 8  Item 4 - Page 39 Item 4 - Page 40 Item 4 - Page 41 Item 4 - Page 42 Item 4 - Page 43 Item 4 - Page 44 Item 4 - Page 45 Item 4 - Page 46 Item 4 - Page 47 Item 4 - Page 48 Item 4 - Page 49 Item 4 - Page 50 Item 4 - Page 51 Item 4 - Page 52 Item 4 - Page 53 Item 4 - Page 54 Item 4 - Page 55 Item 4 - Page 56 Item 4 - Page 57 Item 4 - Page 58 Item 4 - Page 59 Item 4 - Page 60 Item 4 - Page 61 Item 4 - Page 62 Item 4 - Page 63 ATTACHMENT 9  Item 4 - Page 64 Item 4 - Page 65 Item 4 - Page 66 Item 4 - Page 67 Item 4 - Page 68 Item 4 - Page 69 Item 4 - Page 70 Jan 25 1:59 PM Read by Renee Renee2:39 PM Jan 26 Feb 5 Renee1:37 PM Your inquiry for 5 guests on Apr 23 – May 6 has been sent. Show listing Hi Renee, my hubby and I are trying to plan a group vacation on the dates of 4/23/25- 5/6/25. Im looking into golf in the area and how far your place is from the airport. Do these dates work for you? Thanks so much! Marie Hello Marie, thank you for your interest in my house. Thank you for letting me know about your trip it’s 2.9 miles away from the Palm Springs airport. About 8min away. Yes these dates are available. Please let me know if you have any other questions. Thank you Renee Renee invited you to book for 5 guests on Apr 23 – May 6. Complete booking Invitation to book expired Thank you for your interest in my house. But it looks like my house manager approved this reservation by mistake this. Property is a minimum 28 day rental. Please let me know if that’s something you would be interested in.Sorry for the inconvenience but we won’t be able to accept this request for those many days. Typical response time: 20 minutes 3/13/25, 1:16 PM Messages • Airbnb https://www.airbnb.com/guest/messages/2054127757 1/1Item 4 - Page 71 ATTACHMENT 10  Item 4 - Page 72 Item 4 - Page 73