HomeMy WebLinkAboutItem 5 - Ad-Hoc Sub-Committee RecommendationsADMINISTRATIVE APPEALS BOARD STAFF REPORT
DATE: March 19, 2025
SUBJECT: VACATION RENTAL ORDINANCE UPDATES RECOMMENDED BY THE
ADMINISTRATIVE APPEALS ADHOC SUBCOMMITTEE.
FROM: AdHoc Subcommittee
BACKGROUND:
Recent cases where out of town owners of a vacation rental property had assigned
responsibility for licensing and management of their short-term vacation rental to a
property management company raised some issues, and this sub-committee was asked
to explore possible ordinance changes for board approval and subsequent presentation
to Council. This discussion also prompted a look at the entire administration process,
and we’d like to visit that first.
RECOMMENDATION:
1.Review and discuss the vacation rental ordinance updates presented by the
Administrative Appeals Board Ad Hoc Subcommittee; and,
2.Recommend that the City Council consider the approval of the vacation rental
ordinance updates recommended by the Administrative Appeals Board Ad Hoc
Subcommittee.
BOARD ANALYSIS:
ADMINISTRATIVE PROCESS
Over the previous two-year period, .05% of cases heard were overturned (2 of 35 cases).
While we’re not suggesting the cases upheld were not valid, it does prompt questions
about how well the community understands the ordinances and how they are
administered, especially considering the fee one pays to appeal a case. As a result, the
following process enhancements are put up for discussion for possible recommendation
to Council in order to ensure prospective appellants are more aware.
We recommend the following approaches:
1.Ask escrow & title companies to add a document to the buyers closing package
titled “WHAT TO DO IF YOU ARE PLANNING ON RENTING YOUR PROPERTY”
the document will list the two types of rentals; 1- long term 28 nights or more with
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Administrative Appeals Board Staff Report
March 19, 2025 -- Page 2
no certificate required, 2- short term less than 28 nights requires a short term rental
certificate – for more information and requirements on applying for a short term
certificate go to the city’s website at:
https://www.palmspringsca.gov/government/departments/special-program-
compliance/vacation-rentals/applying-for-a-vr-certificate . Also, the document will
recommend that the buyer check with their local HOA to see what type of rentals
are allowed: (Long or Short)
2. The city of Palm Springs will do an outreach program at the local Realtor’s MLS
meetings – titled “Short Term Rental Requirements” how to be a better agent to
your investors who are thinking of purchasing a property as a rental. There will be
mention of the two types of rentals and their requirements; long term 28 nights or
more no rental certificate required or short term less than 28 nights requiring a
short term vacation rental certificate for more click on the following link
https://www.palmspringsca.gov/government/departments/special-program-
compliance/vacation-rentals/applying-for-a-vr-certificate
3. Every quarter the city conducts a public announcement regarding “IS YOUR
SHORT-TERM RENTAL PROPERTY LEGAL”. Suggestions for handling
announcements:
i. Newspaper ads that explain how to register your property with the
city and the requirements for STRs, i.e., paying TOT taxes,
submitting a contract summary prior to any guest checking into the
property. Invite the reader to visit the city’s website
ii. TV Ad
iii. Seminars held at PS library or City Hall.
BENEFITS TO PROPERTY OWNERS WITH NO VIOLATIONS
We propose providing a benefit to homeowner’s who follow the rules and have not had a
violation.
In 2026, properties that have not had a citation in 2025 will remain at 36 maximum
contracts. The same would happen in each subsequent year.
RENTAL PLATFORMS & PROPERTY MANAGEMENT COMPANY
ENHANCEMENTS
In addition to property owners, we recommend establishing rules, standards and
guidelines for rental platform sites (AirBNB, VRBO, etc), and property management
companies (the “Company”).
The city of Palm Springs is currently working with the Attorney to have a “online
advertisement” ordinance so we can force the listing requirements of a permit ID for any
and all platforms, not just specific to vacation rentals. Other municipalities, such as
LaQuinta are currently holding the platform responsible to do this.
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For individual property management companies, we recommend:
1. Have property management company that manage units in Palm Springs register
with the City and agree to follow the City’s Short Term Vacation Rental Ordinance
(the “ordinance”). This would exclude internet companies who are only involved
in advertising and booking clients based upon the direction of the
Owner/Company.
2. When an Owner registers or renews the Unit’s license, any Company involved in
the rental must be identified and the type of management offered. The following
terms will define how rentals are being managed:
o Owner Management – Owner takes full responsibility for registering the Unit
with the City and for the managing and renting of the property.
o Agent Management – Owner assigns the responsibility for managing all or
part of the Unit to a Company.
For those Units designated as Agent Management category, the following processes
would apply:
1. Require any Company before placing advertisements for a short-term rental
ensure they obtain a copy of the short-term rental certificate from the property
owner.
2. If a Company advertises a Unit that is not licensed, or in full compliance, the
penalty is split between the Company and the Owner. The first violation would be
a $2,500 fine to the owner (in addition to lifetime suspension from operating a
short-term rental). The Company would also be fined $2,500. The second
violation on a property managed by the same Company will be $5,000 and the
third and each subsequent violation will be $10,000 each occurrence.
Attachments:
A. Chapter 5.25 – Vacation Rentals – Proposed Code Amendments
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ATTACHMENT A
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55575.18195\43409096.1
CHAPTER 5.25
VACATION RENTALS
§ 5.25.010. Title.
This chapter shall be referred to as the “Vacation Rental Ordinance.”
(Ord. 1748 § 1, 2008; Ord. 1848 § 2, 2014; Ord. 1918 § 1, 2017; Ord. 2075 § 1, 2022;)
§ 5.25.020. Findings.
The city council finds and determines as follows:
(a) The primary use of single-family and multifamily dwelling units in the city of Palm Springs
is the provision of permanent housing for full time and part time residents of the city who
live and/or work in the city. Vacation rentals and homesharing are not uses specifically
recognized in the city’s zoning ordinance, nor are these uses expressly identified as uses
permitted in single-family or multifamily zones. Vacation rentals and homesharing are
similar in character and use as hotels and other commercial short term uses and can only
be permitted in single-family or multifamily zones if such uses are ancillary and secondary
to the residential use of property. This chapter confirms vacation rentals and homesharing
are only allowed as ancillary and secondary uses of residential property in the city.
(b) The purpose of this 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 in which vacation rental and homesharing uses
occur, and provide an administrative procedure to preserve existing visitor serving
opportunities and increase and enhance public access to areas of the city and other visitor
destinations.
(c) Limiting vacation rental and homesharing lodging to single-family dwelling units subject
to the regulations provided in this chapter and prohibiting vacation rental and homesharing
lodging in apartments will safeguard, preserve, and protect residential housing stock in the
city.
(d) The adoption of a comprehensive code to regulate issuance of, and attach conditions to,
registration certificates for vacation rental and homesharing lodging within single-family
residential neighborhoods and the related use of residential property preserves the public
health, safety, and welfare. This 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. A vacation rental registration certificate is a
privilege, not a right. Furthermore, vacation rental registration certificates may be revoked
or not renewed based on non-compliance with the requirements of this chapter.
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(e) This chapter is not intended to regulate hotels, motels, inns, time-share units, or non-
vacation type rental arrangements including, but not limited to, lodging houses, rooming
houses, convalescent homes, rest homes, halfway homes, or rehabilitation homes.
(Ord. 1748 § 1, 2008; Ord. 1848 § 2, 2014; Ord. 1891 § 1, 2016; Ord. 1902 § 1, 2016; Ord. 1918
§ 1, 2017; Ord. 2075 § 1, 2022)
§ 5.25.030. Definitions.
For purposes of this chapter, the following words and phrases shall have the meaning respectively
ascribed to them by this section:
“Apartment” means: (a) a residential unit in a multifamily development of two dwelling units
where both dwelling units are rented or leased for occupancy as a residence for individual families,
and (b) a residential unit in a multifamily development of three or more dwelling units.
“Applicant” means the owner.
“Bedroom” means an area of a vacation rental normally occupied and being heated or cooled by
any equipment for human habitation, which is 120 square feet and greater in size, consists of four
walls to the ceiling, at least one of which is located along an exterior wall with a window, and
contains a built-in closet.
“Business entity” means a corporation, partnership, or other legal entity that is not a natural person
or a personal or family trust. In addition, the following shall not be considered a “business entity”
under this chapter: any partnership, limited liability partnership, or limited liability company
consisting solely of natural persons, the number of whom does not exceed four.
“Change of property ownership” means the transfer of title from one person to another.
“Cluster or compound” means any two or more vacation rentals that operate on a unified or shared
basis where residents of such vacation rentals have exclusive access to more than one vacation
rental and/or the facilities of such vacation rentals, including by way of example, a swimming
pool, tennis court, or cooking facilities.
“Contract” means an agreement or evidence of any tenancy that allows or provides for the vacation
rental of property.
“Daytime occupancy” means the hours between 10:00 a.m. and 10:00 p.m.
“Daytime occupants” mean the guests who may occupy a vacation rental during a daytime
occupancy.
“Enforcement official” means the city manager, the police chief, the fire marshal, the building
official, or one or more of their respective designees.
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“Existing permittee” means a property for which a vacation rental registration certificate has been
issued, or for which a complete application has been filed with the city, on or before October 17,
2022.
“Exclusive listing arrangement” means a written agreement between an owner and an agent or
representative where the agent or representative has the sole and exclusive right to rent or lease a
vacation rental unit to any person and the owner is prohibited from renting or leasing the vacation
rental unit except through the owner’s agent or representative.
“Estate home” means a single-family dwelling with five or more bedrooms.
“Good cause” for the purposes of denial, suspension, revocation, imposition of conditions,
renewal, and reinstatement of a vacation rental registration certificate, means: (1) the applicant,
owner, the owner’s agent, or the local contact person has failed to comply with any of the terms,
conditions, or provisions of this chapter or any relevant provision of this code, state law, or any
rule or regulation promulgated thereunder; (2) the applicant, owner, owner’s agent, or local contact
person has failed to comply with any special conditions that were placed upon the vacation rental
registration certificate by the enforcement official; or (3) the vacation rental has been operated in
a manner that adversely affects the public health or welfare or the safety of the immediate
neighborhood in which the vacation rental is located.
“Good neighbor brochure” means a document prepared by the enforcement official that
summarizes general rules of conduct, consideration, and respect, including without limitation
provisions of the Palm Springs Municipal Code applicable to or expected of guests to the city.
“Homeshare interest” means a portion of an owner’s home that is subject to homesharing as
provided in this chapter.
“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.
“Hotline” means the telephonic service operated by or for the city for the purpose of receiving
complaints regarding the operation of any vacation rental and the forwarding of such complaints
to the appropriate city enforcement officials or, if applicable, the local contact person. For the
purposes of this chapter, the term “hotline” also includes any contact in person or by telephone,
email, and digital or electronic communication, or correspondence of any kind to and/or from any
enforcement official.
“Junior vacation rental registration certificate” means a vacation rental certificate authorizing
fewer annual contracts and for which a lower registration fee shall be charged.
“Local contact person” means the owner, a local property manager, or agent of the owner, who is
available 24 hours per day, seven days per week for the purpose of responding in-person within
30 minutes to complaints regarding the condition, operation, or conduct of occupants of the
vacation rental, or any agent of the owner authorized by the owner to take remedial action and who
responds to any violation of this code.
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“Neighborhood” means a city-recognized neighborhood, as set forth in Palm Springs Municipal
Code Chapter 2.55 (Office of Neighborhoods). For those areas within the city that are not located
within a city-recognized neighborhood, the city council may, by ordinance or resolution, determine
that, for purposes of this chapter only, such area is contained in a particular city- recognized
neighborhood, or the city council may recognize, for purposes of this chapter only, a new
neighborhood.
“New permittee” means a property for which a complete application for a vacation rental
registration certificate was filed with the city after October 17, 2022.
“Owner” means the natural person or persons who is/are the owner of record of the property. The
term “owner” also includes a personal or family trust consisting solely of natural persons and the
trustees of such trust or the members of any partnership, limited liability partnership, or limited
liability company consisting solely of natural persons, the number of whom does not exceed four,
so long as the disclosure requirements pursuant to Section 5.25.085 are satisfied. The term “owner”
does not include a business entity.
“Property” means a residential legal lot of record on which a vacation rental is located. “Rental
term” means the period of time a responsible person rents or leases a vacation rental.
“Property rental planning document” means the document, sent by either the escrow and title
company or by the City, to the new or successor owner upon change of property ownership, entitled
“What to Do If You Are Planning on Renting Your Property.” This document does the following:
(a) defines the two types of rentals as follows:
(1) “Vacation rental” (as defined in this section) 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 28 consecutive days or less, other than ongoing month-to-month tenancy
granted to the same renter for the same unit, occupancy of a time-share
basis, or a condominium hotel as defined in Section 91.00.10 of this code.
The term “vacation rental” is synonymous with “short term rental” and
“transient use” and does not include homesharing; and
(2) long term rentals of twenty-eight (28) nights or more, with no vacation
rental registration certificate required for such long-term rentals.
(b) provides a link to a City website to access more information and requirements on
applying for a vacation rental registration certificate; and
(c) recommends that the new or successor owner check with their local HOA regarding
what types of rentals are allowed.
“Responsible person” means an occupant of a vacation rental who is at least 25 years of age and
who shall be legally responsible for compliance of all occupants of the unit and/or their guests
with all provisions of this chapter and/or this code.
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“Third quarter” means the entire months of July, August, and September in one calendar year.
“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 28
consecutive days or less, other than ongoing month-to-month tenancy granted to the same renter
for the same unit, occupancy of a time-share basis, or a condominium hotel as defined in Section
91.00.10 of this code. The term “vacation rental” is synonymous with “short term rental” and
“transient use” and does not include homesharing.
“Vacation rental registration certificate” or “registration certificate” means the annual permit and/
or a registration for a vacation rental or a homeshare interest issued by the city pursuant to this
chapter.
“VR neighborhood percentage” means a percentage derived by dividing the total number of
residential dwelling units within a neighborhood that have been issued a vacation rental
registration certificate (not counting any junior vacation rental registration certificates) by the total
number of residential dwelling units within that neighborhood and multiplying that quotient by
100.
“VR neighborhood percentage cap” means the maximum VR Neighborhood percentage allowed
by the city council in each neighborhood. The VR Neighborhood Percentage Cap is set at 20%.
This VR Neighborhood Percentage Cap may be adjusted by the city council by ordinance or
resolution.
(Ord. 1748 § 1, 2008; Ord. 1848 § 2, 2014; Ord. 1891 § 2, 2016; Ord. 1902 § 2, 2016; Ord. 1918
§ 1, 2017; Ord. 1926 § 1, 2017; Ord. 2075 § 1, 2022)
§ 5.25.040. Registration Certificate Required.
(a) The operation of a vacation rental or a homeshare interest without a vacation rental
registration certificate is prohibited.
(b) A vacation rental registration certificate shall not be issued to any business entity. A natural
person, partnership, limited liability partnership, or limited liability company that does not
qualify as a “business entity”, or personal or family trust shall not maintain any financial
interest in more than one vacation rental. For this purpose, financial interest includes both
legal and beneficial ownership as well as any arrangement that provides for receipt of any
portion of the revenues generated by the vacation rental. For purposes of this section, a
person shall be deemed to have a financial interest in any vacation rental that is owned by
his or her spouse or registered domestic partner, regardless of the terms of any contractual
arrangement, such as any transmutation (i.e., pre or postnuptial) agreement. An owner shall
only be issued, and can only maintain, one vacation rental registration certificate at any
time.
(c) The provisions of subsection (b) of this section shall not apply to or be enforced against
any owner who operates a vacation rental pursuant to a valid vacation rental registration
certificate issued prior to January 10, 2017 and shall only apply to each specific vacation
rental owned by such owner as of January 10, 2017 and only so long as such owner for
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each vacation rental complies with the provisions of this code. The purpose of this
exception is to afford current owners of vacation rental property a reasonable opportunity
to recoup costs reasonably invested for vacation rental use and which may not have been
recouped during the period of vacation rental use and which cannot be recouped once the
vacation rental use is terminated.
(d) Each owner of a vacation rental who rents, exchanges, trades, gifts, or grants such vacation
rental for a period of 28 consecutive days or less shall fully comply with all provisions of
this chapter related to the use and occupancy of a vacation rental, and the operational
requirements, provided in this chapter. Each rental, exchange, trade, gift, and grant of a
stay of less than 28 days shall count as one contract.
(e) No owner of residential property in the city shall rent any homeshare interest for a period
of 28 consecutive days or less without a valid rental registration certificate for homesharing
pursuant to this chapter for such homesharing interest.
(f) A copy of the current registration certificate as issued by the city and the maximum number
of guests allowed on the premises shall be displayed in a clear and legible manner in a
conspicuous and easily accessible location in the unit and on all advertising related to each
vacation rental or homesharing interest, including without limitation, web-based
advertising, hosting platform, print media, and television.
(g) The issuance and or renewal of a registration certificate shall be deemed evidence that the
holder of such registration certificate has registered a vacation rental property with the city
and that the holder acknowledges the holder’s obligation to comply with all provisions of
this chapter and the code. The issuance of a registration certificate shall not be construed
as bestowing or granting any vested right or entitlement.
(Ord. 1748 § 1, 2008; Ord. 1848 § 2, 2014; Ord. 1918 § 1, 2017; Ord. 2075 § 1, 2022)
§ 5.25.045. Caps on Certificates based on Neighborhood.
The city shall not issue any new vacation rental registration certificate, other than junior vacation
rental registration certificates, in any neighborhood in which the VR Neighborhood Percentage
Cap has been exceeded or would, with the issuance of any such certificate, be exceeded. In the
event the VR Neighborhood Percentage Cap has been exceeded for a particular neighborhood, and
additional complete applications are on file with the city for vacation rental registration certificates
within that neighborhood, if and when the VR Neighborhood Percentage falls below the applicable
VR Neighborhood Percentage Cap for that neighborhood, any additional certificates for that
neighborhood shall be issued in order of the date on which complete applications were filed with
the city (i.e., on a “first in time, first in right” basis).
(Ord. 2075 § 1, 2022)
§ 5.25.050. Agency.
(a) 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, including, without limitation,
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the filing of a complete vacation rental registration the management of the vacation rental
unit or units, and compliance with the requirements of this chapter including the collection
and payment to the city of all transient occupancy taxes due and payable on the vacation
rental unit. The owner and any such agent or representative of owner must have the
authority to evict any tenant, resident, or guest permitted to reside at the vacation rental for
violation of any provision of this chapter or regulation thereof. Except as provided in
subsection (b) of this section and notwithstanding any agency relationships between an
owner and an agent or representative, the owner of the vacation rental unit or units shall
execute all applications and documentary requirements as provided in this chapter and shall
remain responsible for compliance with the provisions 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.
(b) In the event an owner enters into an exclusive listing arrangement, the vacation rental
registration certificate may be secured, and the transient occupancy registration certificate
requirements provided in this chapter may be performed, by the agent or representative and
not by the owner; however, the agent or representative shall separately account all revenues
and costs on a per property basis, including without limitation transient occupancy taxes
and the gross rent amounts used to calculate such taxes.
(Ord. 1748 § 1, 2008; Ord. 1848 § 2, 2014; Ord. 1918 § 1, 2017; Ord. 2075 § 1, 2022)
§ 5.25.060. Vacation Rental Registration Requirements.
(a) Prior to use of a property as a vacation rental, and annually thereafter, the applicant shall
register the property as a vacation rental with the city on a registration form furnished by
or acceptable to the enforcement official and signed by the applicant under penalty of
perjury. Each application shall contain the following information:
(1) The name, address, and telephone number of the owner of the unit for which the
vacation rental registration certificate is to be issued. The name, address and
telephone numbers of any other natural persons, limited liability companies or
personal or family trusts that hold any financial interests in the vacation rental as
well as copies of legal documents creating such financial interests.
(2) The name, address, and telephone number of the exclusive listing agent, if any, of
the owner of the unit.
(3) The name, address, and 24-hour telephone number of the local contact person and
verification that the local contact person can respond in-person to the site of the
vacation rental within 30 minutes. The local contact person may only use the
address of the vacation rental if the local contact person will be present at the unit
for the duration of each contract.
(4) The address of the residential property proposed to be used as a vacation rental.
(5) The number of bedrooms and the applicable overnight and daytime occupancy limit
of the unit consistent with the provisions of Section 5.25.070(c).
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(6) Evidence of a valid transient occupancy registration certificate issued by the city
for the vacation rental unit.
(7) Acknowledgement of receipt and inspection of a copy of all regulations pertaining
to the operation of a vacation rental.
(8) Executed indemnification and hold harmless agreement in a form approved by the
city attorney, agreeing to indemnify, save, protect, hold harmless, and defend the
city of Palm Springs, the city council of the city of Palm Springs, individually and
collectively, and the city of Palm Springs representatives, officers, officials,
employees, agents, and volunteers from any and all claims, demands, damages,
fines, obligations, suits, judgments, penalties, causes of action, losses, liabilities, or
costs at any time received, incurred, or accrued as a result of, or arising out of
owner’s actions or inaction in the operation, occupancy, use, and/or maintenance
of the property.
(9) Evidence of insurance coverage as required under Section 5.25.070(v) of this
chapter.
(10) Completion of building, fire, and safety inspection and completion of any
corrections identified by an enforcement official. Such inspections shall include a
review of the premises for compliance with the operational requirements of this
chapter, including without limitation determining the total number of qualified
bedrooms.
(11) Written acknowledgement in a form approved by the enforcement official that there
are no covenants or other deed restrictions on the property that prohibit or limit the
use of the property as a vacation rental. The enforcement official may accept a
written consent from the governing board of a homeowners’ association with
jurisdiction over the property in satisfaction of this requirement.
(12) Such other information as the enforcement official deems reasonably necessary to
administer this chapter.
(b) The registration of a vacation rental shall be accompanied by a fee established by resolution
of the city council; provided, however, the fee shall be no greater than necessary to defer
the cost incurred by the city in administering the provisions of this chapter.
(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
5.25.100. 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.
(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 provisions of Section 5.25.040(b)
shall be applicable to any such new or successor owner. In the event of a change in agent
or the occurrence of any other material fact set forth in the annual registration, a new
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registration for a vacation rental shall be required to continue operation of the vacation
rental and within seven days of said change the owner or his or her exclusive listing agent
shall submit the required registration and fee.
(e) The owner or his or her exclusive listing agent shall cancel the vacation rental registration
certificate within seven days of the date the vacation rental is sold or otherwise disposed
of or after an event that results in the unit no longer in use as a vacation rental.
(f) Each applicant for a registration certificate, including, without limitation, the owner and
the owner’s agent and/or representative, shall annually attend and/or participate in an
educational program devised and administered by the city manager for the purpose of
training applicants for vacation rental registration certificates, or renewals thereof, on their
respective roles and responsibilities in the successful administration and compliance with
the city’s vacation rental program. Each applicant shall annually take a test prepared and
administered by the city manager regarding each applicant’s role and responsibilities in the
vacation rental program and registration certificates will not be issued or renewed until the
applicant has successfully passed such test.
(Ord. 1748 § 1, 2008; Ord. 1848 § 2, 2014; Ord. 1918 § 1, 2017; Ord. 2075 § 1, 2022)
§ 5.25.070. Operational Requirements and Standard Conditions.
(a) The owner shall use reasonably prudent property ownership/management practices to
ensure that the vacation rental unit complies with all applicable codes regarding fire,
building and safety, health and safety, and all other relevant laws.
(b) For new permittees, on and after the effective date of this ordinance, no more than 26
contracts for vacation rental use of a property shall be allowed or provided in any calendar
year. For existing permittees, no more than 32 contracts for vacation rental use of a property
shall be allowed or provided in any calendar year; however, up to four 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, subject to reduction in such
numbers on and after January 1, 2026. 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.
For any property for which a junior vacation rental registration certificate. has been issued,
no more than six contracts for vacation rental use of that property shall be allowed or
provided in any calendar year.
(1) [Intentionally left blank].
(2) [Intentionally left blank].
(3) For Existing Permittees, the 32 + four contract limitation above shall be reduced to
26, on January 1, 2026; provided, however, that no such reduction shall be applied
against existing permittees that have not been subject to any violation within the
previous twelve (12) months. For new permittees, on and after the effective date of
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this ordinance, no more than 26 contracts for vacation rental use of a property shall
be allowed or provided in any calendar year.
(4) Notwithstanding the restrictions imposed by this subparagraph, the owner at the
time an application or renewal is submitted can designate and file with the
enforcement official the names of up to five persons who may occupy the vacation
rental unit at no cost and without requiring the presence of the owner on the
premises of the vacation rental. Each such occupancy shall fully comply with all
other provisions of this chapter, including, without limitation, the requirement to
submit a contract summary prior to each applicable occupancy, as set forth in
Section 5.25.070(h).
(c) The owner shall limit overnight occupancy of the vacation rental unit to a specific number
of occupants, with the maximum number of occupants as no more than two persons per
bedroom within each vacation rental unit and a maximum of no more than eight persons
total within the vacation rental unit, except that owner may allow up to two minor children,
age 12 or under, to occupy the vacation rental in addition to the maximum number of
occupants otherwise provided in this subsection. The number of bedrooms in a vacation
rental shall be verified by the enforcement official using county assessor and/or city
building records and/ or a physical inspection of the premises, prior to the issuance of a
registration certificate. The owner may also allow up to four daytime occupants in addition
to the total number of guests allowed for overnight occupancy pursuant to this subsection.
No more than one automobile per bedroom shall be allowed for each vacation rental.
Advertising and/or renting one or more vacation rentals as part of a cluster or compound is
prohibited.
(d) The owner of an estate home shall be exempt from the limitations of subsection (c) of this
section for up to two additional bedrooms for housing to accommodate no more than two
persons for each additional bedroom approved pursuant to the exemption up to a maximum
of 12 guests and up to two minors aged 12 and under.
(e) During the rental term each vacation rental unit is rented, the owner, his or her agent, and/or
the local contact person designated by the owner, after being contacted by the enforcement
official, shall be available 24 hours per day, seven days per week, for the purpose of: (1)
responding by telephone within 15 minutes of complaints from or through the hotline; and
(2) responding in-person within 30 minutes to any additional or successive complaints
regarding the condition, operation, or conduct of occupants of the vacation rental.
(f) The owner shall use reasonably prudent property ownership/management practices to
ensure that the occupants and/or guests of the vacation rental unit do not create
unreasonable noise disturbances, engage in disorderly conduct, or violate provisions of the
municipal code or any state law.
(g) Notwithstanding the provisions of Section 11.74.043, any radio receiver, musical
instrument, phonograph, loudspeaker, sound amplifier, or any machine or device for the
producing or reproducing of any sound shall be conducted within a fully enclosed vacation
rental unit and shall not be audible at the property line of the vacation rental.
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(h) 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 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 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 each applicable 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.
(i) The enforcement official shall be the first responder and have primary responsibility for
the enforcement of this chapter. In the event the enforcement official notifies the owner, or
his or her agent, the owner, or his or her agent, that the responsible person, including any
occupant and/or guest of the vacation rental unit, has created unreasonable noise or
disturbances, engaged in disorderly conduct, or committed violations of provisions of the
municipal code or any state law, shall promptly respond in a timely and appropriate manner
to prevent a recurrence of such conduct by those occupants or guests, and evict one or more
of the guests when requested by the enforcement official. For the purpose of this subsection
and subsection (j) below, the phrase “in a timely and appropriate manner” shall mean in
person contact within 30 minutes for any call from the enforcement official.
(j) Failure of the owner or his or her agent to respond to calls or complaints regarding the
condition, operation, or conduct of occupants of the vacation rental in a timely and
appropriate manner shall be grounds for imposition of penalties as set forth in this chapter.
It is not intended that an owner, agent, or local contact person act as a peace officer or place
himself or herself in an at-risk situation.
(k) Trash and refuse shall not be left stored within public view, except in proper containers for
the purpose of collection by the collectors and between the hours of five a.m. and eight
p.m. on scheduled trash collection days. The owner of the vacation rental unit shall use
reasonably prudent property ownership/management practices to ensure compliance with
all the provisions of Chapter 6.04 of the Municipal Code (Waste Disposal and Diversion)
and shall provide “walk-in service” or as may otherwise be approved by the enforcement
official.
(l) All home repairs (external and internal), garden and yard maintenance, and pool cleaning
and maintenance shall not be performed between the hours of 5:00 p.m. on Friday through
8:00a.m. on Monday, except in the case of an emergency or the occurrence of an
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unexpected event that reasonably warrants a timely or immediate response. Repairs and
maintenance shall not be scheduled in advance to occur during the days and time specified
in this subsection.
(m) The owner or the owner’s agent or representative shall meet the responsible party in person
at the vacation rental or the owner’s or owner’s agent’s office prior to, or within 24 hours
of, the commencement of the occupancy and verbally explain and describe all rules and
regulations applicable to the use of the property as a vacation rental and the responsibilities
of the responsible party to the neighbors and the City as well as the owner. The owner shall
secure the signature of the responsible party and all adult guests to a statement of rules and
regulations prepared by the city manager prior to or within 24 hours of the arrival of the
guest at the vacation rental.
(n) The owner of the vacation rental unit shall post a copy of the registration certificate, and a
copy of the conditions set forth in this section, including all rules and regulations applicable
to the use of the property as a vacation rental, on the inside of the front door and the primary
door to the backyard or in a conspicuous location near each such door.
(o) The owner shall provide each occupant of a vacation rental with the following information
prior to occupancy of the unit and/or post such information in a conspicuous place within
the unit:
(1) The name of the managing agency, agent, rental manager, local contact person, or
owner of the unit, and a telephone number at which that party may be reached on a
twenty- four-hour basis;
(2) The maximum number of occupants permitted to stay in the unit;
(3) The trash pick-up day and applicable rules and regulations pertaining to leaving or
storing trash or refuse on the exterior of the property;
(4) Notification that any radio receiver, musical instrument, phonograph, loudspeaker,
sound amplifier, or any machine or device for the producing or reproducing of any
sound shall only be operated within a fully enclosed vacation rental unit and shall
not be audible at the property line of the vacation rental;
(5) Notification that the occupant may be cited or fined by the city and/or immediately
evicted by the owner pursuant to state law, in addition to any other remedies
available at law, for creating a disturbance or for violating any provision of this
chapter;
(6) Notification that failure to conform to the occupancy requirements of the vacation
rental unit is a violation of this chapter;
(7) A copy of this chapter of the Palm Springs Municipal Code, as may be amended
from time to time.
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(p) The use of a vacation rental unit shall not violate any applicable conditions, covenants, or
other restrictions on real property.
(q) The owner shall comply with all provisions of Chapter 3.24 of the Municipal Code
concerning transient occupancy taxes, including, but not limited to, submission of a
monthly return for each vacation rental in accordance with Section 3.24.080. The monthly
return shall be filed each month regardless of whether the vacation rental unit was rented
or not during each such month.
(r) The city manager shall have the authority to impose additional standard conditions,
applicable to all vacation rental units or identifiable classes of vacation rentals, as
necessary, to achieve the objectives of this chapter. A list of all such additional standard
conditions shall be maintained and on file in the office of the city clerk and such offices as
the city manager designates.
(s) Notwithstanding the provisions of subsection (p) above, upon a determination of good
cause, the city manager may impose additional or special standards or requirements for
placement or imposition of special conditions or performance standards for owners,
owner’s agents, local contact persons, and their affected vacation rentals. The standard
conditions may be modified by the enforcement official upon request of the owner or his
or her agent based on site-specific circumstances for the purpose of allowing reasonable
accommodation of a vacation rental. All requests must be in writing and shall identify how
the strict application of the standard conditions creates an unreasonable hardship to a
property such that, if the requirement is not modified, reasonable use of the property for a
vacation rental would not be allowed. Any hardships identified must relate to physical
constraints to the subject site and shall not be self-induced or economic. Any modifications
of to the standard conditions shall not further exacerbate an already existing problem.
(t) The city manager shall have the authority to establish administrative rules and regulations,
which may include, but are not limited to, registration conditions, reporting requirements,
inspection frequencies, enforcement procedures, advertising restrictions, disclosure
requirements, or insurance requirements, consistent with the provisions of this chapter, for
the purpose of implementing, interpreting, clarifying, carrying out, furthering, and
enforcing the requirements and the provisions of this chapter. No person shall fail to
comply with any such regulation. A copy of such administrative rules and regulations shall
be on file in the office of the city clerk.
(u) Owner shall procure, maintain, and pay premiums for commercial insurance policies that
cover short term rental of property for each vacation rental with minimum limits as may be
established by the city manager from time to time.
(v) Owner shall annually secure a building and fire and safety inspection prior to renewal of
the vacation registration certificate.
(w) For any vacation rental, including any junior vacation rental, that is also used as an event
house, as that term is used in Palm Springs Municipal Code Chapter 5.75, each event shall
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be counted as a Contract, for purposes of Section 5.25.070’s annual caps on the number of
contracts, for such property.
(Ord. 1748 § 1, 2008; Ord. 1848 § 2, 2014; Ord. 1918 § 1, 2017; Ord. 2075 § 1, 2022)
§ 5.25.075. Specific Prohibitions.
(a) No person or entity shall offer or provide an apartment, or any portion thereof, for rent for
28 consecutive days or less to any person.
(b) No person or entity shall maintain any advertisement of a vacation rental that is in violation
of any provision of this chapter.
(c) No person, including, without limitation, an apartment owner, an apartment manager, or a
representative of the apartment owner or manager, shall evict any tenant or otherwise
terminate a lease for the purpose of converting an apartment to a vacation rental or in
anticipation of converting an apartment to a vacation rental. In addition to any other remedy
provided under the Palm Springs Municipal Code, failure to comply with this provision
may be asserted as an affirmative defense in an action brought by or on behalf of the
apartment owner, apartment manager, or representative to recover possession of the unit.
Any attempt to recover possession of a unit in violation of this chapter shall render the
apartment owner, apartment manager, or representative liable to the tenant for actual or
punitive damages, including damages for emotional distress, in a civil action for wrongful
eviction. The tenant may seek injunctive relief and money damages for wrongful eviction
and the prevailing party in an action for wrongful eviction shall recover costs and
reasonable attorneys’ fees.
(d) The provisions of subsection (a) of this section shall not apply to or be enforced against
any person or entity who rents an apartment or portion thereof pursuant to a valid vacation
registration certificate issued prior to April 15, 2016, for the period of time between April
15, 2016 through January 1, 2019. The purpose of this deferral of the enforcement of the
provisions of this section is for persons or entities issued valid vacation registration
certificates prior to April 15, 2016 to be afforded a reasonable opportunity to recoup costs
reasonably invested for vacation rental use of apartments and which may not have been
recouped during the period of vacation rental use of the apartment and which cannot be
recouped once the vacation rental use is terminated.
(e) The provisions of subsection (a) of this section, subsection 5.25.040(b) [limits on number
of units], and subsection 5.25.070(b) [limits on number of contracts] shall also not apply
to any building in which an apartment is located that meets all requirements of an R-1
occupancy under the city’s building and fire code and for which such apartment has a valid
vacation rental registration certificate issued prior to April 15, 2016.
Ed. Note. Subsection (d) of Section 5.25.075 shall be deemed repealed and no longer in
effect as of 12:01 a.m. on January 1, 2019 and all persons and entities shall fully comply
with the provisions of Subsection (a) of Section 5.25.075 of this Code. See § 4 of Ord. 1902
(2016).
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(Ord. 1891 § 3, 2016; Ord. 1902 § 3, 2016; Ord. 1918 § 1, 2017; Ord. 2075 § 1, 2022)
§ 5.25.078. Homesharing Authorization.
(a) Notwithstanding any provision of this chapter to the contrary, homesharing shall be
authorized in the city, provided that the owner complies with each of the following
requirements:
(1) Obtains and maintains at all times a vacation rental registration certificate for
homesharing;
(2) Operates the homesharing interest in compliance with all vacation registration
certificate for homesharing conditions, which may be imposed by the Enforcement
Official to effectuate the purpose of this chapter;
(3) Collects and remits transient occupancy tax to the city and complies with all city
transient occupancy tax requirements as set forth in this code;
(4) Takes responsibility for and actively prevents any nuisance activities that may take
place as a result of homesharing activities;
(5) Complies with all applicable laws, including all health, safety, building, and fire
protections laws;
(6) Complies with the regulations promulgated pursuant to this chapter.
(b) In the event the owner of a homeshare interest does not live on-site, in the home, and is not
able to respond within 30 minutes to complaints regarding the condition, operation, or
conduct of occupants of the homesharing interest, the property shall be deemed a vacation
rental and owner shall be required to fully comply with the provisions of this chapter
relating to vacation rentals, including without limitation, securing a vacation rental
registration certificat.
(Ord. 1918 § 1, 2017; Ord. 2075 § 1, 2022)
§ 5.25.080. Audit.
Each owner and agent or representative of any owner shall provide the enforcement official with
access to each vacation rental and the books, records, documents, papers, tax returns, and bank
accounts at any time during normal business hours as the enforcement official may determine are
necessary or convenient for the purpose of inspection or audit to determine that the objectives and
conditions of this chapter are being fulfilled.
(Ord. 1748 § 1, 2008; Ord. 1848 § 2, 2014; Ord. 1918 § 1, 2017; Ord. 2075 § 1, 2022)
§ 5.25.085. Disclosure of Business Entities, Limited Liability Companies, and Personal or
Family Trusts.
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On or before June 1, 2017, all business entities, limited liability companies, and personal or family
trusts owning one or more vacation rentals shall disclose to the enforcement official the names,
relevant contact information, and any such other information as may be requested by the
enforcement official of each natural person holding the legal, equitable, and/or beneficial interest
of each such business entity, limited liability company, or personal or family trust and the address
of each vacation rental owned by each such business entity, limited liability company, or personal
or family trust. Each business entity that complies with the provisions of this section prior to June
1, 2017, shall, prior to June 1, 2018 transfer each vacation rental to a natural person who can
otherwise comply with the provisions of this chapter or cease operating any vacation rental
properties owned by the business entity as vacation rentals. Any business entity that fails to comply
with the disclosure requirements provided in this subsection, shall cease operating all vacation
rental properties owned by the business entity as vacation rentals no later than June 1, 2017.
(Ord. 1918 § 1, 2017; Ord. 2075 § 1, 2022)
§ 5.25.090. Individual Property Management Companies
Every individual property management company that manages vacation rental unit(s) in the City
shall be subject to the following requirements:
(a) The company must register with the City and acknowledge and agree to abide by the terms
of this Chapter.
(b) When a vacation rental property owner registers or renews the unit’s license, the owner
must identify any property management company(ies) involved in the rental, as well as the
type of management for the rental unit. For purposes of this Chapter, the following terms
shall apply: (1) “Owner Management” means the property owner takes full responsibility
for registering the unit with the City and for the managing and renting of the unit; and (2)
“Agent Management” means the property owner assigns the responsibility for managing
all or part of the unit to a property management company.
(c) Units designated as subject to “Agent Management” are subject to the following additional
requirements:
(1) The property owner must provide an affidavit executed by the property
management company that affirms the company’s management of the rental unit and the
company’s awareness of the requirements of this Chapter.
(2) Prior to placing any advertisement(s) for a vacation rental, the property
management company managing the rental must ensure that it obtains a copy of the valid
and current short term vacation rental certificate for the unit from the property owner.
(3) If a company advertises a unit that is not licensed or is not otherwise operated in
full compliance with the requirements of this Chapter, the company shall be subject to the
fine(s) and penalty(ies) set forth in subsection (c)(2) of Section 5.25.100 of this Chapter.
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(d) Nothing in this section shall be construed as relieving a property owner from compliance
with any requirement of this Chapter or from any fine or penalty associated with a
violation of any requirement applicable to the property owner under this Chapter.
§ 5.25.100. Violations.
(a) Any person who violates a provision of this chapter is subject to criminal sanctions and
administrative penalties pursuant to Chapters 1.01 and 1.06 of this code and the specific
penalties as provided in this chapter. Any person who uses, or allows the use of, residential
property in violation of the provisions in this chapter is guilty of a misdemeanor for each
day in which such residential property is used, or allowed to be used, in violation of this
chapter. An administrative citation issued pursuant to Chapter 1.06 for a first violation shall
be $500.00 and each subsequent violation shall be $1,000.00. Each administrative citation
for a violation of any provision of this chapter shall be levied or assessed against the owner.
(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.
(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 $5,000.00, and permanent
ineligibility to operate a vacation rental in the city. 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.
(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 prior
to each applicable occupancy, or without timely tendering full monthly payments of
transient occupancy tax, shall pay a fine in the amount of $2,500.00 and the owner’s
vacation registration certificate shall be suspended for six months for a first offense and
shall pay a fine in the amount of $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.
(e) Any property management company that manages a vacation rental that has been operated
or advertised without a valid, current vacation registration certificate while under the
company’s management shall be liable to the city for the payment of an administrative fine
in the amount of $2,500.00 for a first violation, $5,000.00 for a second violation, and
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$10,000.00 for any and every subsequent violation. These fines shall be in addition to the
fine(s) and penalty(ies) imposed pursuant to subsection (c) of this section.
(f) The failure of an owner or the owner’s agent or representative to comply with an order of
any police officer shall result in the revocation of the vacation registration certificate.
(g) The appeal and hearing provisions of Chapter 2.50 shall apply to any revocation or
suspension of a registration certificate.
(h) Any person who fails to pay any fee or charge provided in this chapter within the time
required, shall pay a penalty in the amounts established by the city council by resolution.
Such penalty may also include interest from the date on which the fee or charge became
due and payable to the city until the date of payment.
(i) The filing of knowingly false claims against a vacation rental or the guests staying in a
vacation rental is prohibited and shall be punishable by administrative fines as provided in
Chapter 1.06 of this code.
(j) In addition to, and not in lieu of, any other remedy allowed by law, all remedies prescribed
under this chapter are cumulative and the election of one or more remedies does not bar
the city from the pursuit of any other remedy, criminal, civil, or administrative which may
be pursued by the city to enforce this chapter and/or address any violation of this code or
to remedy any other public nuisance.
(Ord. 1748 § 1, 2008; Ord. 1848 § 2, 2014; Ord. 1918 § 1, 2017; Ord. 2075 § 1, 2022)
§ 5.25.110. City Obligations
(a) The City shall develop and conduct an outreach program at the local Realtor’s Multiple
Listing Service (“MLS”) meetings. This program shall include, but not be limited to,
guidance on (a) the definition, description, and requirements of the two types of rental
management under Section 5.25.090 of this Chapter, and (b) the application process for a
vacation rental registration certificate. This program shall be conducted annually.
(b) The City shall conduct a public announcement regarding the legal requirements for
vacation rental properties and compliance with such requirements. This announcement
shall be conducted quarterly. This announcement may be conducted in any format that the
City Manager, or his or her designee, finds reasonable, including, but not limited to,
newspaper advertisements, television advertisements, and seminars held at Palm Springs
Public Library or City Hall.
§ 5.25.120. Requirements Not Exclusive.
The requirements of this chapter shall be in addition to any license, permit, or fee required under
any other provision of this code. The issuance of any permit pursuant to this chapter shall not
relieve any person of the obligation to comply with all other provisions of this code pertaining to
the use and occupancy of vacation rental or the property on which it is located.
(Ord. 1748 § 1, 2008; Ord. 1848 § 2, 2014; Ord. 1918 § 1, 2017; Ord. 2075 § 1, 2022)
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