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Home My WebLink AboutItem 1RFrom:Bruce T. Bauer To:Ron deHarte; Naomi Soto; Jeffrey Bernstein; David Ready; Grace Garner Cc:City Clerk; Scott Stiles; Jeff Ballinger-C Subject:City Council Meeting June 25, 2025, Item 1R Second Reading of Co-owned Housing Ordinance Date:Wednesday, June 25, 2025 4:03:17 PM Attachments:image003.png Co-Owned Ordinance LTR June 25 2025.pdf Importance:High NOTICE: This message originated outside of The City of Palm Springs -- DO NOT CLICK on links or open attachments unless you are sure the content is safe. Dear Hon. Mayor, Mayor Pro Tem, Councilmembers, City Manager, City Attorney and Officials of the City of Palm Springs: Please find our correspondence concerning Item no. 1R on tonight’s City Council meeting agenda. Thank you. Bruce T. Bauer PALM SPRINGS COSTA MESA SAN DIEGO PRINCETON NEW YORK ____________________________________________ Bruce T. Bauer Of Counsel SLOVAK BARON EMPEY MURPHY & PINKNEY LLP 74774 Highway 111 Indian Wells, CA 92210 Phone (760) 322-2275 / Fax (760) 322-2107 https://sbemp.com/ CONFIDENTIALITY NOTICE: This e-mail message, together with any documents, files and/or other messages attached to it, is for the sole use of the intended recipients and may contain confidential and privileged information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please immediately notify the sender by telephone and destroy all copies of the original message. Thank you. CIRCULAR 230 DISCLOSURE: To ensure compliance with requirements imposed by the United States Treasury Department, you are hereby informed that any advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing. 06/25/2025 Public Comment Item 1R SLOVAK BARON EMPEY MURPHY & PINKNEY LLP Palm Springs, CA T (760) 322-2275 Indian Wells, CA T (760) 322- 9240 Costa Mesa, CA T (714) 435-9592 San Diego, CA T (619) 501-4540 Princeton, NJ T (609) 955-3393 New York, NY T (212) 829-4399 www.sbemp.com BRUCE T. BAUER, ESQ. Of Counsel ADMITTED IN CA REPLY TO: 74774 Highway 111 Indian Wells, CA 92210 T (760) 322-2275 • F (760) 322-2107 bauer@sbemp.com June 25, 2025 VIA EMAIL Ron deHarte, Mayor (Ron.deHarte@palmspringsca.gov) Naomi Soto, Mayor Pro Tem (Naomi.Soto@palmspringsca.gov) Jeffrey Bernstein, Councilmember (Jeffrey.Bernstein@palmspringsca.gov) David H. Ready, Councilmember (David.Ready@palmspringsca.gov) Grace Elena Garner, Councilmember (Grace.Garner@palmspringsca.gov) Scott Stiles, City Manager (Scott.Stiles@palmspringsca.gov) Jeff Ballinger, Esq., City Attorney (Jeff.Ballinger-C@palmspringsca.gov) Re: City Council Meeting June 25, 2025, Item 1R Second Reading of Co-owned Housing Ordinance Dear Hon. Mayor, Mayor Pro Tem, Councilmembers, City Manager, City Attorney and Officials of the City of Palm Springs: As you may know, our office has been retained to represent Pacaso in this matter. On June 11, 2025, the City Council for the City of Palm Springs (“City”), considered, deliberated and ultimately approved several modifications to the July 2024 managed co-owned housing ordinance an ordinance to regulate co-owned housing units in the City (the “Ordinance”). The second reading of those modifications is on the City Council agenda for tonight’s June 25, 2025 meeting, item no. 1R. During the discussions regarding the modifications to the Ordinance, the City Council approved a change to the Ordinance of particular note: Changed the discretionary language, authorizing the City Manager to revoke a managed co-owned housing permit after the third violation. Specifically, in section 5.92.050(a), the language was changed as follows: “Upon the issuance of a third administrative citation for any violation of this chapter, the city manager may shall suspend or revoke the co-owned managed housing permit.” This change, then removed the discretion on the part of the City Manager. The City Council wanted to remove this discretion and provide that the suspension of the permit would be automatic. The City Council made it clear that they wanted the Ordinance to mirror the penalty 06/25/2025 Public Comment Item 1R CITY OF PALM SPRINGS June 25, 2025 Page 2 provision of the City’s short-term rental ordinance (“STR Ordinance”). However, this requested change does not track the STR Ordinance on this topic in a significant way. The violation provisions of the rental ordinance are contained in Municipal Code Section 5.25.090. That code section provides at 5.25.090(b), 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. [Emphasis added.] The Ordinance does not provide this critical time limiting parameter that is contained in the STR Ordinance. If the City Council wants the Ordinance to track the City’s STR Ordinance then this time-limiting provision should also be contained in the Ordinance. We believe that is the intent of the City Council, i.e., for the Ordinance to mirror the STR Ordinance. Moreover, we reviewed the video from July 9, 2024, City Council meeting, where the Ordinance was originally adopted. The City Council made clear at that time that they did not want a change in provision of the revocation of the permit from “may” to “shall” to apply. Thus, it makes no sense for the City Council now to impose not only the “shall” provision of the STR Ordinance but to leave out its time limiting parameters. It is for that reason, then, that the City Council should include the time-limiting provision contained in the STR Ordinance (that the three (3) violations be made in any twelve month period) into the changes made to the Ordinance. Sincerely, SBEMP LLP Bruce T. Bauer, Esq. cc: cityclerk@palmspringsca.gov 06/25/2025 Public Comment Item 1R