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HomeMy WebLinkAbout9/5/2018 - STAFF REPORTS - 1.D.CITY COUNCIL STAFF REPORT DATE: July 18, 2018 SUBJECT: DECISIONS OF THE ADMINISTRATIVE APPEALS BOARD FOR HEARINGS HELD ON JULY 18 , 2018 REGARDING PERMANENT INELIGIBILITY TO OPERATE A VACATION RENTAL IN THE CITY OF PALM SPRINGS INCLUDING ADMINISTRATIVE FINES FOR OPERATING AN UNREGISTERED VACATION RENTAL PROPERTY; AND A TWO-YEAR SUSPENSION OF THE VACATION RENTAL REGISTRATION CERTIFICATE INCLUDING THE ASSOCIATED THIRD ADMINISTRATIVE CITATION FROM: David H. Ready , City Manager BY: Vacation Rental Compliance Department SUMMARY In accordance with Palm Springs Municipal Code, Chapter 5.25 , Vacation Rentals, the Vacation Rental Compliance Department issues Administrative Citations to the owner(s) on title for Operating a Vacation Rental without a Vacation Rental Registration Certificate. Individuals Operating a Vacation Rental without Vacation Rental Registration Certificate are subject to permanent ineligibility to operate a Vacation Rental in the City of Palm Springs, and Administrative Fine of $5 ,000.00 on the first violation of the PSMC § 5.25.090(c). Further, in accordance with PSMC, Chapter 5 .25 .090(b), upon the third violation in any twelve-month period, the City Manager shall suspend the Vacation Rental Registration Certificate for two (2) years. Pursuant to Vacation Rental Administrative Regulations , Subject: Violation Count for Purposes of Suspending a Vacation Rental Certificate dated 8/2017 , appeal of the third (or more) administrative citation will be heard by the Administrative Appeals Board along with the suspension appeal according to PSMC Chapter 2.50. Two appeal hearings were scheduled on July 18 , 2018. Three of the five members comprising the Administrative Appeals Board were present. Two out of the three votes were needed for appellants to win their appeals. One of the two appeal hearings resulted in upholding the actions of Vacation Rental Compliance Department with the appeal being denied . The second appeal hearing resulted in overturning the actions of the Vacation Rental Compliance Department with the appeal being accepted. Additional hearing details are provided in th e chart on page two . nEM NO. ~ · l:> · 2 Administ ra tive Appeals Board Staff Report Jul y 18 , 2018 --Page 2 ADMINISTRATIVE APPEALS BOARD SUMMARY OPERATING WITHOUT A VACATION RENTAL REGISTRATION CERTIFICATE APPELLANTS PROPERTY UPHOLD UPHOLD $5000 ADDITIONAL NAME ADDRESS PERMANENT FINE NOTES INELIGIBILITY George Patrick 3 Ayes , 0 Noes-Moltrup & Caitlin 3 Ayes, 0 Noes Appeal denied Ann Litzinger 1481 N Fiesta Rd $5 ,000 VACATION RENTAL REGISTRATION CERTIFICATE TWO YEAR SUSPENSION APPELLANTS PROPERTY UPHOLD THIRD UPHOLD 2-YEAR ADDITIONAL NAME ADDRESS CITATION SUSPENSION NOTES Si x Star Vacation 1220 S . San Mateo Dr 0 Ayes , 3 Noes 0 Ayes , 3 Noes Appea l upheld Homes LLC B&fit Vacatio n Rental Compliance Official Suzan ~veri n Vacation Rental Compliance Official Attachment: 1. Draft AAB Meeting Minutes of July 18, 2018 3 CALL TO ORDER Tuesday, July 18, 2018 Minutes of the Special Meeting of the Administrative Appeals Board A Special Meeting of the Palm Springs Administrative Appeals Board was called to order by Chair Reed on Wednesday, July 18, 2018, at 3:30p.m., in the Large Conference Room, City Hall, located at 3200 E. Tahquitz Canyon Way, Palm Springs, California. PLEDGE OF ALLEGIANCE Chair Reed led the Pledge to the Flag. ROLLCALL Present: Board Members Cleary, Vice Chair Howard, and Chair Reed Absent: Board Members Cronander and Kearns City Staff Present: Peter King, Assistant City Prosecutor; Suzanne Severin and Boris Stark, Vacation Rental Compliance Officers; and Anthony J. Mejia, City Clerk. ACCEPTANCE OF THE AGENDA MOTION BY BOARD MEMBER CLEARY, SECOND BY VICE CHAIR HOWARD, CARRIED 3-0, to accept the agenda. ELECTION OF AN ADMINISTRATIVE APPEALS BOARD CHAIRPERSON AND VICE CHAIRPERSON City Clerk Mejia noted that the City Council previously took action to extend the terms of Board Members and Commissioners whose terms were set to expire on June 30, 2018, for an additional six months; advised that the City Council will consider extending the time for the choice of officers serving on Boards and Commissions (Chair and Vice Chair) for an additional six months at its meeting on July 18, 20 18; recommended that the Board defer taking action of the election of the Chair and Vice Chair pending the City Council decision. The Board agreed to defer taking action on the election of a Chair and Vice Chair pending the City Council's action. City of Palm Springs Page 1 4 Special Meeting Minutes Administrative Appeals Board July 18. 2018 PUBLIC COMMENT None. APPEAL HEARINGS 1. APPEAL OF THE ADMINISTRATIVE DECISION THAT GEORGE PATRICK MOLTRUP AND CAITLIN ANN LITZINGER ARE PERMANENTLY INELIGIBLE TO OPERATE A VACATION RENTAL IN THE CITY OF PALM SPRINGS AND THE ADMINISTRATIVE FINE FOR OPERATING AN UNREGISTERED VACATION RENTAL PROPERTY LOCATED AT 1481 N FIESTA RD, PALM SPRINGS, CALIFORNIA (MOLTRUP/LITZINGER) Vacation Rental Compliance Officer Severin presented the staff report. David Williams. Vacation Rental Compliance Officer, advised that he received a community lead and begun an investigation on the subject property; noted that the rental listing identified a vacation rental registration number which had been cancelled in February 2018; summarized his investigatory methods and the issuance of the citation; noted that his offer was declined by AirBnB, noting that the property owner immediately replied that it was a system error and that the dates and offer were still open. In response to Board inquiry, Vacation Rental Compliance Officer Severin explained that a vacation rental registration permit had been issued for the subject property under the previous owner and that owner identified that the permit would be managed by an agent; advised that upon change of ownership, the managing agent cancelled the registration permit; stated that registration permits do not transfer upon change of ownership. Chair Reed opened the Appeal Hearing. Patrick Moltrup, Appellant, advised that he does not dispute the facts as presented by the City; advised that he was purchasing the subject property and a new restaurant at the same time and neglected to verify all of the regulations related to vacation rentals; stated that he communicated through his real estate agent to the former property owner regarding that status of the registration permit; advised that the former property owner indicated that the registration permit was paid for and valid through 20 18; stated that he was unaware that the managing agent cancelled the registration permit and that it did not transfer with the property. In response to Board inquiry, Mr. Moltrup requested that the Board consider issuing a reduced fine and a temporary suspension. There being no others desiring to speak on this item, Chair Reed closed the Appeal Hearing. Board Member Cleary questioned whether it is appropriate to hold Mr. Moltrup responsible for misinformation he received from the previous property owner, when the previous property owner likely did not fully-understand the regulations himself since he relied upon a managing agent. City of Palm Springs Page2 5 Special Meeting Minutes Administrative Appeals Board July 18. 2018 Vice Chair Howard pointed out whether there was a prior permit or not, Mr. Moltrup failed to educate himself regarding the regulations and the conduct of advertising without a valid registration permit is illegal. Board Member Cleary opined that the Board serves as a voice to ensure the appropriate application of the ordinance and opined that Mr. Moltrup has no ill intent to deceive the City; expressed support for a reduced fine and six month suspension. Vice Chair Howard opined that relying upon the advice of a real estate agent and previous property owner is not a legal protection. MOTION BY VICE CHAIR HOWARD, SECOND BY CHAIR REED, CARRIED 3-0, to: 1. Adopt Resolution No. 0085 entitled "A RESOLUTION OF THE ADMINISTRATIVE APPEALS BOARD OF THE CITY OF PALM SPRINGS, CALIFORNIA, UPHOLDING THE ADMINISTRATIVE DECISION THAT GEORGE PATRICK MOLTRUP AND CAITLIN ANN LITZINGER ARE PERMANENTLY INELIGIBLE TO OPERATE A VACATION RENTAL IN THE CITY OF PALM SPRINGS, INCLUDING THE PROPERTY LOCATED AT 1481 N FIESTA RD, PALM SPRINGS, CALIFORNIA." 2. Adopt Resolution No. 0086 entitled "A RESOLUTION OF THE ADMINISTRATIVE APPEALS BOARD OF THE CITY OF PALM SPRINGS, CALIFORNIA, UPHOLDING THE ADMINISTRATIVE FINE OF $5,000.00 ISSUED TO GEORGE PATRICK MOLTRUP AND CAITLIN ANN LITZINGER FOR OPERATING AN UNREGISTERED VACATION RENTAL PROPERTY LOCATED AT 1481 N FIESTA RD, PALM SPRINGS, CALIFORNIA." RECESS The Administrative Appeals Board recessed at 4:35p.m. and reconvened at 4:47p.m., with Board Member Cleary, Vice Chair Howard, and Chair Reed present. City Clerk Mejia left the dais and Chief Deputy City Clerk Berardi served as recording secretary. 2. APPEAL OF THE ADMINISTRATIVE CITATION A5537 AND APPEAL OF THE ADMINISTRATIVE DECISION OF A TWO-YEAR SUSPENSION OF THE VACATION RENTAL REGISTRATION CERTIFICATE FOR THE PROPERTY LOCATED AT 1220 S. SAN MATEO, PALM SPRINGS, CALIFORNIA (SIX STAR VACATION HOMES LLC/ORFLOFF/SMITH) Vacation Rental Compliance Officer Stark presented the staff report. Patrick Clifford. Vacation Rental Compliance Officer, advised that he received a complaint that the trash containers at the subject property were visible throughout the week; advised that he responded and observed two trash containers visible from the property line and issued the citation. In response to Board inquiry, Officer Clifford confirmed that the photos submitted by the City were his observations during the investigation; noted that the pictures depict trash containers being visible from the property line, but that no loose trash or refuse were observed; confirmed that the trash containers were located underneath the carport awning. City of Palm Springs Page 3 6 Special Meeting Minutes Administrative Appeals Board July 18,2018 Chris Cunningham, Palm Springs Disposal Service, advised that the subject property owner does subscribe to walk-up trash service since April2017; pointed out that the trash containers are supposed to be located up the driveway and behind a gate. In response to Board inquiry, Mr. Cunningham confirmed that it can only be inferred that the trash truck drivers complied with route instructions based on past patterns and that no notes were logged regarding lack of access to the back gate. Vacation Rental Compliance Officer Stark pointed out that trash service is on Tuesdays and that the complaint was received, and the citation was issued, on Friday, May 25, 2018. Chair Reed opened the Appeal Hearing. David Orloff, Appellant, advised that he has taken numerous corrective actions to ensure that guests do not move the trash containers and has instructed all service providers (cleaners, pool technicians, gardeners, etc.) to remedy anything they observe that may cause a violation; questioned whether his property is being adversely targeted by a particular neighbor; noted that the property had no guests from May 22nd (trash pick-up day) through the time in which the complaint was filed on May 25, 20 18; submitted affidavits from his service providers indicating that they did not relocate the trash containers from behind the back gate. In response to Board inquiry, Mr. Orloff agreed that he could lock the back gate and that Palm Springs Disposal Service would continue to provide walk-up trash service, pointing out that when he subscribed to the service he was instructed that an unlocked gate is preferred because a new or substitute driver may have difficulty accessing the trash containers and may leave them without emptying; noted that he has since installed a security camera in the event that a malicious person is causing his home to have code violations; explained that he submitted documents indicating that walk-up trash service has frequent complaints that trash containers were not always emptied or are sometimes placed in the wrong location; stated that no property owner, guest, or service provider under his control caused the trash containers to be in the public view. Vacation Rental Compliance Officer Stark reviewed the provisions of the Municipal Code and confirmed that the City's interpretation would apply to this citation. There being no others desiring to speak on this item, Chair Reed closed the Appeal Hearing. Chair Reed opined that the property owner has taken all reasonably prudent business practices to comply with the provisions of the Municipal Code to prevent a violation; noted that the strict reading of the ordinance does not imply that a trash container would cause a violation of Municipal Code Section 5.25.070(k) and that the City could have adopted Administrative Regulations to clear up any ambiguity. Assistant City Prosecutor King opined that Municipal Code Section 5.25.070(k) is not ambiguous if read in its entirety, noting that Municipal Code Chapter 6.04 further requires all property owners to remove trash containers from the public view. City of Palm Springs Page4 7 Special Meeting Minutes Administrative Appeals Board July 18. 2018 MOTION BY VICE CHAIR HOWARD, SECOND BY CHAIR REED, CARRIED 3-0, to: 1. Adopt Resolution No. 0087 entitled "A RESOLUTION OF THE ADMINISTRATIVE APPEALS BOARD OF THE CITY OF PALM SPRINGS, CALIFORNIA, OVERTURNING THE ADMINISTRATIVE CITATION A5537 ISSUED TO SIX STAR VACATION HOMES, LLC FOR THE PROPERTY LOCATED 1220 S. SAN MATEO, PALM SPRINGS CALIFORNIA." 2. Adopt Resolution No. 0088 entitled "A RESOLUTION OF THE ADMINISTRATIVE APPEAL BOARD OF THE CITY OF PALM SPRINGS, CALIFORNIA, OVERTURNING THE ADMINISTRATIVE DECISION OF A TWO-YEAR SUSPENSION OF THE SHORT TERM VACATION RENTAL REGISTRATION CERTIFICATE FOR THE PROPERTY LOCATED 1220 S. SAN MATEO, PALM SPRINGS CALIFORNIA." OTHER BUSINESS 3. APPROVAL OF MINUTES MOTION BY CHAIR REED, SECOND BY BOARD MEMBER CLEARY, CARRIED 3-0, to approve the Minutes of the April3 and May 15, 2018, Administrative Appeals Board Special Meetings. 5. BOARD MEMBER COMMENTS AND REQUESTS In response to Board inquiry, Vacation Rental Compliance Officer Severin advised that it is anticipated that the City will release draft revisions to the Vacation Rental Ordinance sometime in September or October and will make presentations to the community and stakeholders prior to presenting to the City Council. The Board requested that the City Attorney be prepared to address whether the membership of the Board will change to include alternate members and the rationale and authority for making such a change. 6. CITY PROSECUTOR'S REPORTS AND COMMENTS None. 7. CITY CLERK'S REPORTS AND FUTURE MEETING DATES None. ADJOURNMENT The Administrative Appeals Board meeting adjourned at 6:14 p.m. Respectfully submitted, Anthony J. Mejia, MMC City Clerk City of Palm Springs Page 5