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HomeMy WebLinkAbout3/7/2018 - STAFF REPORTS ;OQ P A`M Sp6 iy � a u a • ��ab�° °� • CITY COUNCIL STAFF REPORT cg41FOR DATE: March 7, 2018 NEW BUSINESS SUBJECT: DISCUSSION REGARDING THE DIRECT ARGUMENT AGAINST THE INITIATIVE ORDINANCE TO PROHIBIT VACATION RENTAL OF SINGLE FAMILY RESIDENCES IN THE CITY — UPDATE ON THE IMPACT ANALYSIS REPORT FROM: David H. Ready, City Manager BY: Office of the City Clerk SUMMARY City Council will discuss and provide direction to the Subcommittee on the argument against the measure to prohibit vacation rental of single-family residences in the City of Palm Springs. In addition, review and consider updated information relative to the Vacation Rental Ballot Measure Impact Analysis Report, previously submitted at the City Council Meeting of February 21, 2018. RECOMMENDATION: 1. Review and discuss updated information pertaining to the previously submitted Impact Analysis Report. 2. Review and provide direction regarding the argument against the measure. 3. Authorize each member of the City Council to execute all necessary documents for the submission of the argument against the measure. 4. Determine whether to authorize a City Council ad hoc Subcommittee to author the rebuttal argument against the measure or whether to authorize another person to sign the rebuttal argument. 5. Authorize each member of the City Council to execute all necessary documents for the submission of the rebuttal argument against the measure. ITEM NO. t City Council Staff Report March 7, 2018 -- Page 2 Argument and Rebuttal Arguments—Initiative Measure on Vacation Rentals BACKGROUND: A citizens' initiative petition to prohibit the vacation rental of single-family residences in the City of Palm Springs has qualified for placement on the ballot. On January 24, 2018, the City Council ordered a report analyzing the impacts of the initiative measure, pursuant to Elections Code (EC) 9212. On February 21, 2018, the City Council was presented with the initial draft of an Impact Analysis Report and provided direction regarding additional information desired. At the same meeting, the City Council authorized its members to author the argument against the measure and provided for the filing of rebuttal arguments. The Council selected Councilmember Kors and Mayor Pro Tern Roberts to draft the argument. The deadline to file the argument and City Attorney's Impartial Analysis is Thursday, March 8, 2018, by 6:00 p.m. Following the close of the argument deadline, the City Clerk will transmit the arguments to the opposing authors. The rebuttal arguments are due not more than 10 days after the direct arguments are due. However, the 10th day fall's on a weekend and therefore the deadline for rebuttal arguments will be the close of business day on Thursday, March 15, 2018. The City Council may authorize in writing any other person or persons to prepare, submit, or sign the rebuttal argument. If so desired, the City Council will need to identify who the authors will be and authorize itself to execute the necessary authorization form. If the City Council elects to author the rebuttal itself, it may select a Council ad hoc Subcommittee to write the rebuttal and provide for each member to be a signatory. However, unless the City Council calls a Special Meeting, other members of the City Council will not have an opportunity to provide feedback or modifications to the rebuttal. City Attomev Comments re Ballot Initiative Language The ballot measure proponents have included language in their proposed ordinance that is internally inconsistent. That inconsistency relates to the issue of whether the ballot measure would prohibit homesharing in R-1 zoned areas. The ballot measure contains a pair of findings that are incompatible. One says that homesharing is prohibited in single- family residences; the other says that it is legal. Despite the ballot measure purporting in some language to allow homesharing in R-1 zoned single family residences, the single word "them" causes the proponents' version of Palm Springs Municipal Code (PSMC) Section 5.25.020(a) to prohibit Vacation Rentals and Homesharing in those same residences. Then, by blending old language and new, the ballot measure proponents prohibit providing "any portion" of a single-family residence for rent for 28 consecutive days or less. Given the ordinance's definition of"homesharing," the prohibition of renting a portion of a single-family residence effectively prohibits homesharing in those residences. This prohibition is located in Section 5.25.075(a) of the proponents' proposed ordinance, which addresses "Specific Prohibitions." 02 City Council Staff Report March 7, 2018 -- Page 3 Argument and Rebuttal Arguments—Initiative Measure on Vacation Rentals The ballot measure's ordinance provisions referenced here are provided below. 5.25.020(a) — the finding that homeshares are prohibited "This Ordinance confirms Vacation Rentals and Homesharing as ancillary and secondary uses of for privately owned individual multi-family dwelling units, including without limitation Condominiums, and prohibits them for R-1 zoned Single Family and rental Apartment residential property in the City."(emphasis added in boldface) 5.25.075(a) — the prohibition of homeshares "No person or entity shall offer or provide a Single Family Residence or an a rental Apartment, or any portion thereof, for rent for 28 consecutive days or less to any person."(emphasis added in boldface) Despite language in the notice of intent to circulate petition, and a ballot measure"finding" that indicates homesharing in single-family residences remains legal, see PSMC Section 5.25.020(c), the ballot measure as a whole, inclusive of the prohibition language shown above, is internally inconsistent on this point. Impact Analysis Report— Updated Information As the proposed ballot measure could have the effect of disallowing homeshares as vacation rentals, an additional sixty-two (62) units, or 3.3% of the overall inventory, would be ineligible as vacation rental properties. With regard to condominiums, should the ballot measure pass, the total number of permitted condominiums allowed to continue with vacation rentals was estimated at 382 (as presented to City Council on February 21, 2018). As the City currently requires units that are part of a Home Owners Association (HOA) to obtain written approval from their HOA indicating that vacation rentals are allowed in their complex, it is anticipated there will be a reduction in condo permits in 2018 by 33% (128 permits) due to an inability to obtain such a HOA letter. Based on this information, the number of condominiums not anticipated to be affected by the proposed change in vacation rental regulations should be reduced to 254 units. Combined, the additional condominium, homeshare, and apartment units to be affected by the proposed ballot measure, or phased out, increases the percentage of units that would be removed from the inventory of available vacation rentals from 74% to 86.3% of the current inventory of vacation rental units (1,653 instead of 1,468 as previously presented). If homeshares are allowed as vacation rentals, the percentage of units to be removed from the inventory of available vacation rentals changes from 74%to 83.0% of the current inventory of vacation rental units (1,591 instead of 1,468). 03 City Council Staff Report March 7, 2018— Page 4 Argument and Rebuttal Arguments—Initiative Measure on Vacation Rentals Possible Effect on Palm Springs Residential Real Estate Market Staff has received a letter and data from Jim Franklin, Government Affairs Director of the Palm Springs Regional Association of Realtors in regard to impacts the proposed ballot measure may have on the residential real estate market in the City of Palm Springs (Attachment 1). Mr. Franklin raises the following concerns based on discussions with Realtors who sell properties for vacation rentals: • There are approximately 410 single family residential properties currently listed in the City of Palm Springs. That number could easily double within 6-9 months and cause prices to come down. There is not really a market for these properties as 30-day rentals, as the rental cost would be too high for most possible tenants. • Home prices would drop 10-15 percent over the first 6 to 9 months and could trigger a "race to the bottom"that possibly within a year brings us in line with other cities in the valley at 25% below the current median price. FISCAL IMPACT: At the City Council Meeting of February 21, 2018, the Vacation Rental Ballot Initiative Economic Impact Report was presented with information regarding the loss of revenue to the City from several funding sources such as "hotel occupancy taxes," "sales taxes," "property taxes," etc. As indicated above, the updated information will cause the fiscal impact to be effected as well. Staff will submit the information to the consultant who prepared the initial impact report for modifications as appropriate. The updated report will be presented to City Council at the following meeting on March 21, 2018. C_ 77 -� - - Ant on J. eji C Edward Z. Kotkin Cle City Attorney David H. Ready, Esq., P City Manager Attachments: 1. Palm Springs Regional Association of Realtors Letter 04 A44148010�r"0000 March 1, 2018 2018 officers Mayor Moon George Rider Councilmember Kors President Councilmember Roberts Renee Edly President-Elect Councilmember Middleton Ben u Treasurer Councilmember Cilb Holsteg e Tre Heather Ozur After discussions with a number of Realtors who have sold properties for Secretary vacation rental the general consensus is that should the ban go into effect that prices would drop 10-15 percent over the first 6 to 9 months and could trigger 2018 Board of Directors a "race to the bottom" that possibly within a year bring us in line with other cities in the valley at 25% below the current median price. I have contacted our California Association of Realtors and our National Association of Realtors to see if they have any studies that show an "artificial" market, such Stephen Burchard as our market in Palm Springs,that in part is being influenced by the option o Director vacation rentals or other issues and what happened when that influence was David Cantwell taken away. Director Our predictions are that some owners would continue to do vacation rentals John Cyr anyhow, especially without enforcement.The owners that were buying the Director Y P Y Y g properties to eventually live in would probably just continue on that path and Adree Rojas then there would be the owners who would put their property on the market Director that would increase inventory. We have about 410 SFR listings as of today, Meda Thompson that could easily double within 6-9 months and that would cause prices to Director come down.There is not really a market for these properties as 30 day rentals Tonyvaccaro as the rental cost would be too high for most possible tenants. Director I have attached 2 charts,the desert housing report,just the first page is the Jim Webb main one that shows the median detached home prices for the valley. I am Director working on getting a break down for Palm Springs and the chart that shows James Ronald Whitney home sales in Palm Springs since 2004. Director Lucio Bernal As far as values and affordability the average home owner could lose as mutt Past President as 25% of the value of their property and it still would not be "affordable" compared to other cities in the valley. Association staff Sincerely, - t Ann Ritchie CEO Jim Franklin Government Affairs Director 05 4n45 F Raman Road_ Palm Snrinas. CA 92294 The Desert Housing Report January 2018 REALTORS' The Trusted Source for Real Esfate In the Desert communRies Coachella Valley Median Detached Home Price Median Price Jan 2002 - Jan 2018 $4507000 $4009000 " $380,000 $3507000 $300,000 $339,000 $250,000 - —' $200,000 $150,000 OtK Oo OHO O� O� O� ;�� ;�� ;�1' ;�� ;��` ;�� �rO ;�� N1b ---*-CV Detached Median Price —4% growth curve Summary The median Valley price for detached homes in January was $380,000 up 12% over January of 2017. This represents a strong start for the New Year. The median price of Valley attached homes in January was $255,000,which is 8.6% above January of last year.We think this is a positive sign for the attached market price wise, which has been lagging the detached market by trending sideways for the last four years. Year over year changes in detached median home prices of the nine cities remains remarkably strong. Only La Quinta has a lower median price than a year ago. The other eight cities are all higher. Coachella is higher by 3.3% and Desert Hot Springs continues to lead in month over month price changes, being up 21.6% over a year ago.The average of twelve month sales takes out all seasonality and allows comparing year over year sales at any month.January shows an increase of 14% in attached sales compared to 2016, a 12% increase in detached sales and a 12.7% increase in total sales over a year ago. Inventory rose 330 units in the month of January for a reading of 4,083 units listed on February 1st. As the graph clearly shows, for the last five years every January has shown an increase in inventory, some larger than others. d Produced for Valley agents through the sponsorship and cooperation of PSRAR and CDAR by Market Watch LLC ©2018 CDAR & PSRAR. All rights reserved. Use and distribution by members only. I The Desert Housing Report !? 1 January 2018 REACTORS' The Trusted Source for Reel Estate -- 1n the Desert Oommunldes Detached Homes 12 Month Gain off % from Jan-18 Year Ago Change 2011 Low 2011 Low 2006 High High Desert Hot Springs $225,000 $185,000 21.6% $85,000 164.70/ 295,00 -23.7% Palm Desert $409,000 $360,000 13.6% $287,000 42.5% $543,000 -24.7% Palm Springs $635,000 $559,000 13.6% $335,000 89.6% $600,000 5.8% Indio $310,000 $285,000 8.8% $158,500 95.6% $380,500 -18.5% Cathedral City $314,000 $289,000 8.7% $139,000 125.9% $395,000 -20.5% Indian Wells $832,500 $796,250 4.6% $540,000 54.2% $1,205,000 -30.9% Rancho Mirage $642.500 $620,000 3.6% $423,000 51.9% $950,000 -32.4% City of Coachella $253.000 $245,000 3.3% $121,950 107.5% $335,000 -24.5% La Quinta $405,000 $473,000 1,4% $245,000 65.3% $682,020 -40.6% Attached Homes 12 Month Gain off % from Jan-18 Year Ago Change 2011 Low 2011 Low 2006 High High Rancho Mirage $321,500 $265,000 21.3% $260,000 23.7">_, $510,000 -37.0% Indio $169,000 $147,500 14.6% $75,000 125.3% $279,000 -39.4% La Quinta $327,489 $305,000 7.4% $265,000 23.6% $532,500 -38.5% Palm Desert $267,500 $255,000 4.9% $175,000 52.9% $410,000 -34.8% Palm Springs $225,000 $218,500 3.0% $150,000 50.0% $350,000 -35.7% Cathedral City $153,000 $152,500 0.3% $107.500 42.3% $270,500 -43.4% Indian Wells $380,000 $428,500 -11.3% $321,500 18.2% $557,500 -31.8% Desert Hot Springs $70,000 $95,000 -26.3% $86,000 -18.6% $303,000 -76.9% City of Coachella N/A NIA N/A N/A NIA NIA N/A 12 Month Change in City Median Prices Year over year changes in detached median home prices of the nine major cities remain remarkably strong. Only La Quinta has a lower median price than a year ago. The other eight cities are all higher. Coachella is higher by 3.3% and Desert Hot Springs continues to lead in month over month price changes, being up 21.6%. The attached market continues to show marginal price increases. The two largest condo cities=Palm Desert and Palm Springs -show increases of 4.9% and 3.0% respectively. -J Produced for Valley agents through the sponsorship and cooperation of PSRAR and CDAR by Market Watch LLC ©2018 CDAR& PSRAR. All rights reserved. Use and distribution by members only. I F'S RAR �,,�..1 s, ���,y��E<,�,R March 6, 2018 2018 Officers George Rider City of Palm Springs President Renee Edly Mayor and City Council President-Elect Ben Leaskou City Hall Treasurer 3200 E.Tahquitz Canyon Way Heather Ozur Secretary Palm Springs,CA 92262 2018 Board of Directors Honorable Mayor Robert Moon and Members of the City Council: Stephen Burchard Director The Palm Springs Regional Association of Realtors ("PSRAR") submits this letter in David Cantwell Director response to the March 7, 2018 staff report from City Manager David H. Ready to the City Council regarding the "Direct Argument Against the Initiative Ordinance to Prohibit John Cyr Director Vacation Rental of Single Family Residences in the City — Update on the Impact Analysis Report" (the "Staff Report"). PSRAR agrees with comments made by the City Attorney at Adree Rojas Director pages 2-3 of the Staff Report that the text amendments proposed by the Vacation Rental Initiative are "internally inconsistent' as to whether not homesharing would be allowed in Meda Thompson Director single-family residences located in a R-1 zoning district. However, PSRAR believes that the Vacation Rental Initiative is not just internally inconsistent with regard to homesharing, To aro Directorector but is subject to a pre-election challenge on the ground that it fails to satisfy the requirements of Section 9203 of the Elections Code and is materially misleading. Jim Webb Director James Ronald Whitney Director In particular, PSRAR believes that both the Notice of Intent to Circulate Petition, dated Ludo Bernal May 17, 2017 (the "Notice of Intent') and the ballot title and summary prepared by the Past President City in connection with the Vacation Rental Initiative (the "Title and Summary") contain serious defects that provide a basis for invalidating the Vacation Rental Initiative. Association Staff Ann Ritchie CEO As explained below,the Notice of Intent correctly states that the Vacation Rental Initiative would prohibit vacation rentals in the R-1 zones, but incorrectly states that it would continue to allow homesharing in all residential zones. The Title and Summary likewise correctly states that the Vacation Rental Initiative would prohibit the vacation rental of 4045 E Ramon Road, Palm Springs,CA 92264 113 760-320-6885 1 760-308-6211 fax REALIOV qA{ PSRAR March 6, 2018 2018 Officers George Rider City of Palm Springs President Renee Edly Mayor and City Council President-Elect Ben Leaskou City Hall Treasurer 3200 E.Tahquitz Canyon Way Heather Ozur Secretary Palm Springs,CA 92262 2018 Board of Directors Honorable Mayor Robert Moon and Members of the City Council: Stephen Burchard Director The Palm Springs Regional Association of Realtors® ("PSRAR") submits this letter in David swell Director response to the March 7, 2018 staff report from City Manager David H. Ready to the City tor Council regarding the "Direct Argument Against the Initiative Ordinance to Prohibit John Cyr Director Vacation Rental of Single Family Residences in the City — Update on the Impact Analysis Report' (the "Staff Report"). PSRAR agrees with comments made by the City Attorney at Adree Rojas Director pages 2-3 of the Staff Report that the text amendments proposed by the Vacation Rental Initiative are "internally inconsistent' as to whether not homesharing would be allowed in Me Thompson Directorector single-family residences located in a R-1 zoning district. However, PSRAR believes that the Vacation Rental Initiative is not just internally inconsistent with regard to homesharing, Direectorctor To aro but is subject to a pre-election challenge on the ground that it fails to satisfy the requirements of Section 9203 of the Elections Code and is materially misleading. Jim Webb Director James Ronald Whitney Director In particular, PSRAR believes that both the Notice of Intent to Circulate Petition, dated Lucio Bernal May 17, 2017 (the "Notice of Intent') and the ballot title and summary prepared by the Past President City in connection with the Vacation Rental Initiative (the "Title and Summary') contain serious defects that provide a basis for invalidating the Vacation Rental Initiative. Association Staff Ann Ritchie CEO As explained below, the Notice of Intent correctly states that the Vacation Rental Initiative would prohibit vacation rentals in the R-1 zones, but incorrectly states that it would continue to allow homesharing in all residential zones. The Title and Summary likewise correctly states that the Vacation Rental Initiative would prohibit the vacation rental of 4045 E Ramon Road, Palm Springs,CA 92264 113 760-320-6885 1 760-308-6211 fax R EA LTOI �} &mkt 31-1/,% PSRAR r,,,O^'�= single-family residences in R-1 zoning districts, but fails to state that it would also prohibit ,l I uev homesharing in R-1 zoning districts. This letter explains PSRAR's conclusion that, because the Notice of Intent contains a false and misleading statement regarding the effect of the 2018 officers Vacation Rental Initiative on homesharing in R-1 zoned areas, and because the Title and Summary is materially misleading or inadequate with regard to the effect that the George Rider President Vacation Rental Initiative would have on homesharing in the R-1 zoned areas,the Vacation Rental Initiative is fatally defective and subject to pre-election challenge. Renee Edly President-Elect Ben Leaskou Treasurer The Notice of Intent is Materially Misleading Because it Incorrectly States that the Heather Ozur Vacation Rental Initiative Would Continue to Allow Homesharine in R-1 Zoned Areas Secretary 2018 Board of Directors The Notice of Intent signed by proponents Stephen M. Rose and Walter "Hugh" Vance states, in relevant part: Stephen Burchard Director "This initiative repeals City codes that allow short term vacation rentals in R-1 David Cantwell zones. It continues to allow home sharing in all residential zones and home Director sharing and short-term vacation rentals in multi-family zones." (Emphasis added.) John Cyr Director Adree Rojas Director The statement that the Vacation Rental Initiative "continues to allow home sharing in all Meda Thompson residential zones" is contradicted by the plain language of the Vacation Rental Initiative Director which would amend Section 5.25.075(a)of the Municipal Code read as follows: "No person Tony Vaccaro or entity shall offer or provide a Single Family Residence or a rental Apartment, or any Director portion thereof,for rent for 28 consecutive days or less to any person." By prohibiting the Jim Webb rental of any single family residence or any portion thereof, proposed Section 5.25.075(a) Director expressly prohibits homesharing,which is defined as "an activity whereby the Owner hosts James Ronald Whitney visitors in the Owner's home, for compensation, for periods of twenty-eight (28) Director consecutive days or less, while the owner lives on-site and in the home, throughout the Lucid Bernal visitor's stay." Past President Association Staff Put simply, if the owner of a single-family residence cannot rent out all or any portion of Ann Ritchie their home for 28 consecutive days or less, then both vacation rentals and homesharing CEO are prohibited by the Section 5.25.075(a). The Title and Summary is Defective Because it Fails to State that 113 4045 E Ramon Road, Palm Springs,CA 92264 760-320-6885 j 760-308-6211 fax REALTOW F' Y PSRAR \1 the Vacation Rental Initiative Would Prohibit Homesharin¢in R-1 Zoned Areas 2018Officers Section 9203(a) of the California Elections Code requires that, within 15 days after a George Rider proposed measure is filed with a city, the city attorney must "provide and return to the President city elections official a ballot title for and summary of the proposed measure." Section Renee Edly 9203(a) requires that "the city attorney shall give a true and impartial statement of the President-Elect purpose of the proposed measure in such language that the ballot title shall neither be an Ben Leaskou argument, nor be likely to create prejudice, for or against the proposed measure." Treasurer (Emphasis added.) Section 9203(b) requires that the elections official give the ballot title Heather Ozur and summary to the proponents of the measure, and that the proponents "place upon Secretary each section of the petition, above the text of the proposed measure and across the top of each page of the petition on which signatures are to appear, in roman boldface type not 2018 Board of Directors smaller than 12 point,the ballot title prepared by the city attorney." Stephen Burchard As explained by the Supreme Court of California, the purposes served by the ballot title Director and summary requirements are: David Cantwell Director John Cyr (1) to reduce the risk that voters were misled when signing the petition; (2) to Director allow verification that the signers had a neutral explanation of the proposed Adree Rojas ordinance available to them when they signed; and (3) to prevent signatures from Director being submitted in support of a different measure than that for which they were Meda Thompson procured.' Director Tony Vaccaro Director Jim Webb In this case,the Title and Summary fails to completely and accurately describe the purpose Director and effect of the Vacation Rental Initiative and therefore fails to serve these purposes. The Title and Summary correctly states that Vacation Rental Initiative "amends Chapter James Ronald Whitney 5.25 of the Code to prohibit the vacation rental of single family residences defined as Director p g y ( Lucid Bernal single family dwelling units located on property zoned R-1-13, R-1-A, R-1-C, R-1-D, R-1-AH, Past President or any other R-1 classification) in the City." However, the Title and Summary contains no mention of the fact that the Vacation Rental Initiative would also prohibit the homesharing Association Staff of single family residences located in an R-1 zoning district. Because it does not explain that the Vacation Rental Initiative would also prohibit the homesharing of single family Ann Ritchie residences located in an R-1 zoning district, the Title and Summary fails to meet the CEO g ry Costa v. Superior Court,37 Cal.4th 986, 1021 (2006)(quoting MHC Financing Limited Partnership Two v. City of Santee, 125 Cal.App.4th 1372, 1389(2005)). 4045 E Ramon Road,Palm Springs,CA 92264 113 760-320-6885)760-308-6211 fax REALTOR j'�RAR statutory requirement that it must provide a true and impartial statement of the purpose"of the Vacation Rental Initiative. 2018 Officers George Rider The Vacation Rental Initiative is Subject to Pre-Election Challenge on the Ground that President the Notice of Intent and the Title and Summary are Defective and Materially Misleading Renee Edly President-Elect Ben Leaskou Treasurer In Costa v. Superior Court, the Supreme Court of California explained that, although "it is Heather Ozur usually more appropriate to review constitutional and other challenges to ... initiative Secretary measures after an election rather than to disrupt the electoral process by preventing the exercise of the people's franchise," procedural challenges may be brought and resolved 2018 Board of Directors prior to an election.2 In fact, all four of the cases cited by the court in explaining the types of challenges that can be brought prior to an election involved allegations that the petition or the title and summary were defective. The cases cited by the court are: Stephen Burchard Director David Cantwell 17 Assembly v. Deukmejian, 30 Cal. 3d 638, 646-654 (1982) (pre-election decision Director concerning the effect of a variety of alleged defects in a referendum petition. Jahn Cyr including a claim that the text of the measure printed in the petition varied from Director text of the enacted measure that was the subject of the referendum); Adree Rojas Director Meda Thompson p Epperson v. Jordan, 12 Cal. 2d 61 (1938) (pre-election decision involving a Director challenge to an initiative measure contesting the completeness and accuracy of Tony Vaccaro the Attorney General's summary of the measure set forth in the circulated Director petition); Jim Webb Director James Ronald Whitney Director © Clark v. Jordon, 7 Cal. 2d 248 (1936) (pre-election decision sustaining a challenge to a proposed initiative measure on the ground that "short title" set forth in LucPastPre id circulated petitions violated statutory requirement that such title accurately Past President describe the subject to which the petition relates, and finding it unnecessary to Association Staff decide an additional claim that the petition was not supported by the required number of signatures); and Ann Ritchie CEO 2 Costa v. Superior Court,37 Cal.4th at 1005-06(citations omitted). 113 4045 E Ramon Road,Palm Springs, CA 92264 760-320-6885 1 760-308-6211 fax REALTOrt PSRAR IN Boyd v. Jordon, 1 Cal. 2d 468 (1934) (pre-election decision sustaining a challenge to a proposed initiative based on misleading short title). 2018 Officers George Rider The Vacation Rental Initiative suffers from the same types defects that were subjected to President pre-election review in the above cases and resulted in the initiatives being invalidated in Renee Edly Clark v.Jordan and in Boyd v.Jordon. As explained above,the Notice of Intent is defective President-Elect and materially misleading because it incorrectly states that the Vacation Rental Initiative Ben Leaskou "continues to allow home sharing in all residential zones." The Title and Summary is Treasurer likewise defective because it fails to state that the Vacation Rental Initiative would prohibit Heather Ozur homesharing in R-1 zoned areas. As the Supreme Court of California observed in Costa v. Secretary Superior Court, the fact that both the Notice of Intent and the Title and Summary are not just defective, but are materially misleading provides a basis for invalidation of an initiative 2018 Board of Directors through a pre-election challenge: Stephen Burchard [A)ll of our past cases emphasize the utmost importance of ensuring the integrity Director of the electoral process and of interpreting and applying the applicable David Cantwell constitutional and statutory provisions in a manner that closely safeguards the Director integrity of that process. In instances in which a departure from a statutory John Cyr requirement has been found to pose a realistic threat to the accuracy and integrity Director of the process—for example, by misleading the potential signers of an initiative Adree Rojas petition regarding a significant feature of the proposed measure through the use of Director a confusing or incomplete title-courts have not been tolerant of such departures Meda Thompson from procedural safeguards and have rejected claims that those who signed the Director petition could have avoided confusion by relying upon the full text of the measure Tony Vaccaro included in the petition? Director Jim Webb Director In this case, both the Notice of Intent and the Title and Summary are materially misleading James Ronald Whitney and withheld vital information from the persons whose signatures were solicited, namely, Director the fact that the Vacation Rental Initiative would prohibit homesharing in single family Lucio Bernal residences located in R-1 zoned areas of the City. Past President Association Staff Based on the foregoing, PSRAR respectfully requests that the City Council direct the City Ann Ritchie CEO Attorney to provide it with an opinion regarding the viability of a Pre-election challenge to the Vacation Rental Initiative on the ground that both the Notice of Intent and the Title 3 Costa v. Superior Court,37 Cal.4th at 1012-13 (emphasis added)(citations omitted). 113 4045 E Ramon Road, Palm Springs, CA 92264 760-320-6885 1760-308-6211 fax RFALrOW z z .... z ('S RAR l�':1� ,P;\ 110 and Summary are defective, misleading, and withheld vital information from the persons whose signatures were solicited. 2018 Officers George Rider Palm Springs Regional Association of Realtors` President Renee Edly President-Elect Ben Leaskou Treasurer Jim Franklin Heather Ozur Government Affairs Director Secretary 2018 Board of Directors Copy to: David H. Ready, City Manager Stephen Burchard Director Edward Kotkin, City Attorney David Cantwell Director John Cyr Director Adree Rojas Director Made Thompson Director Tony Vaccaro Director Jim Webb Director James Ronald Whitney Director Lucio Bernal Past President Association Staff Ann Ritchie CEO ® 4045 E Ramon Road,Palm Springs,CA 92264 760-320-6885 760-308-6211 fax REALTOW Cindy Berardi From: Anthony Mejia Sent: Tuesday, March 6, 2018 4:43 PM To: Cindy Berardi Subject: FW: Homesharing and Ballot Measure C From: PS Neighbors4Neighborhoods [mailto:psn4nl@gmail.com] Sent:Tuesday, March 06, 2018 4:26 PM To: Robert Moon <Robert.Moon@paImspringsca.gov>; Lisa Middleton<Lisa.Middleton@ pa lmspringsca.gov>;JR Roberts <JR.Roberts@paImspringsca.gov>; Geoff Kors<Geoff.Kors@palmspringsca.gov> Cc: Edward Kotkin<Edward.Kotkin@palmspringsca.gov> Subject: Homesharing and Ballot Measure C To the City Council, Although there has been a question raised by the city attorney to this measure with regard to homesharing arrangements for R-1 properties, in fact the language of the ordinance makes it clear that homesharing is allowed on R-1 property and will be allowed to continue after adoption of the measure. In the event there is any question of that after enactment of the ordinance, it can be easily resolved by construing the ordinance in the manner mandated by the measure itself and simply severing any inconsistent language. The city attorney and council are aware of this provision and the mandate that the ordinance be construed to affect its stated goals. Good faith adherence to that provision is all that is required. The Notice of Intent is explicit with regard to the intent of the parties and should guide interpretation of the measure's provisions with regard to any perceived inconsistency. "This initiative repeals City codes that allow short term vacation rentals in R-1 zones. It continues to allow home sharing in all residential zones and home sharing and short term vacation rentals in multi family zones. " Stephen Rose voteYESonC.org i Palm Springs Housing Data 1990 - 2016 TOTAL # Vacant % Owner # Owner % Renter # Renter Housing Year % Vacant Units Occupied Occ Units Occupied Occ Units Units 1990 39% 11,895 36% 10,963 25% 7,659 30,517 2000 34% 10,703 40% 12,792 26% 8,126 31,621 2010 34% 12,262 39% 13,700 27% 9,484 35,446 2016 36% 13,588 38% 14,019 26% 9,844 37,451 100% - 90% 80% 70% 60% 50% ®% Renter Occupied 40% •%Owner Occupied 30% ■%Vacant 20% 10% 0% 1990 2000 2010 2016 Source: Year 1990: US Census via report: "City of Palm Springs, Analysis of Impediments to Fair Housing Choices, Nov. 2013". Year 2000 - 2016: US Census via www.factfinder.census.gov US Census Definition: Vacant: Includes all housing units not occupied full time, including 2nd homes, vacation and seasonal rentals, vacant properties, and homes for sale or rent. Ia�� ��roncct �A ><crc�4 o3- t>7- 2.DI$