HomeMy WebLinkAbout2/21/2018 - STAFF REPORTS 9 PA M SA
A. Pi
a Z
c
U N
w w
• ti°.�q..r CITY COUNCIL STAFF REPORT
c441 FO RN,o-
DATE: February 21, 2018 NEW BUSINESS
SUBJECT: RECEIVE AND FILE AN IMPACT ANALYSIS REPORT AND PROVIDE
DIRECTION RELATING TO A CITIZENS' INITIATIVE FOR THE
PROHIBITION OF VACATION RENTAL OF SINGLE FAMILY
RESIDENCES IN THE CITY — UPDATE ON VACATION RENTAL
ORDINANCE ENFORCEMENT
FROM: David H. Ready, City Manager
BY: Office of the City Clerk
SUMMARY
This is a request for the City Council to receive and file an impact analysis report, update
on the enforcement of the City's vacation rental ordinance, and to determine whether it
desires to adopt a citizens' initiative ordinance, without alteration, or submit the question
relating to the prohibition of vacation rental of single family residences to the voters if
there is to be an election in this matter, it should either take place as a Special Municipal
Election to be consolidated with the Statewide Primary Election in June 2018, or at the
time of the next General Municipal Election, scheduled for November 2019.
RECOMMENDATION:
1. Receive and file an Impact Analysis Report(ATTACHMENT 1) relating to the Citizens'
Initiative for the prohibition of vacation rental of single family residences in the city,
pursuant to Elections Code (EC) Section 9212, and provide direction as appropriate.
2. Receive and file an update on the enforcement of the City's vacation rental ordinance
(ATTACHMENT 2) and provide direction as appropriate.
3. Determine whether to adopt the proposed ordinance entitled "AN ORDINANCE OF
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING
THE PALM SPRINGS MUNICIPAL CODE TO PROHIBIT THE VACATION RENTAL
OF SINGLE FAMILY RESIDENCES IN THE CITY." (ATTACHMENT 3)
If the City Council adopts the proposed ordinance, that action will conclude consideration
of this item. If not, the Council must either:
4. Adopt a Resolution entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PALM SPRINGS, CALIFORNIA, DECLARING ITS INTENT TO SUBMIT TO THE
VOTERS AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY,
NOVEMBER 5, 2019, A QUESTION RELATING TO THE PROHIBITION OF
VACATION RENTAL OF SINGLE FAMILY RESIDENCES IN THE CITY."
(ATTACHMENT 4)
OR rMM N0.__
City Council Staff Report
February 21, 2018 -- Page 2
Submission to the Voters— Initiative Measure on Vacation Rentals
ALL OF THE FOLLOWING
5a.Adopt a Resolution entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PALM SPRINGS, CALIFORNIA, CALLING AND GIVING NOTICE OF THE
HOLDING OF A SPECIAL MUNICIPAL ELECTION TO BE HELD ON JUNE 5, 2018,
FOR THE SUBMISSION TO THE VOTERS A QUESTION RELATING TO THE
PROHIBITION OF VACATION RENTAL OF SINGLE FAMILY RESIDENCES IN THE
CITY." (ATTACHMENT 5)
5b.Adopt a Resolution entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PALM SPRINGS, CALIFORNIA, REQUESTING THE BOARD OF
SUPERVISORS OF THE COUNTY OF RIVERSIDE TO CONSOLIDATE A SPECIAL
MUNICIPAL ELECTION TO BE HELD ON JUNE 5, 2018, WITH THE STATEWIDE
PRIMARY ELECTION TO BE HELD ON THE SAME DATE PURSUANT TO
SECTION 10403 OF THE ELECTIONS CODE." (ATTACHMENT 6)
5c.Adopt a Resolution entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PALM SPRINGS, CALIFORNIA, AUTHORIZING WRITTEN ARGUMENTS FOR
OR AGAINST THE PROPOSED ORDINANCE TO PROHIBIT THE VACATION
RENTAL OF SINGLE FAMILY RESIDENCES IN THE CITY; SETTING PRIORITIES
FOR FILING WRITTEN ARGUMENTS REGARDING THE MEASURE AND,
DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS."
(ATTACHMENT 7)
5d.Determine whether the City Council desires to designate any of its members to draft
a Direct Argument for the ballot measure and any Rebuttal Argument, if needed.
5e.Adopt a Resolution entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PALM SPRINGS, CALIFORNIA, PROVIDING FOR THE FILING OF REBUTTAL
ARGUMENTS FOR CITY MEASURES SUBMITTED AT MUNICIPAL ELECTIONS."
(ATTACHMENT 8)
5f. Adopt a Resolution entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR FISCAL YEAR
2017-18." (ATTACHMENT 9)
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.
02
City Council Staff Report
February 21, 2018-- Page 3
Submission to the Voters— Initiative Measure on Vacation Rentals
An Assessment of the Proposed Change in Vacation Rental Regulations
Tourism is a significant part of Palm Springs' economy. As vacation rentals have grown
in popularity, they have increased in number. There are currently 1,986 registered
vacation rental and "homeshare" properties in the City. This secondary use of these
residential properties, pursuant to a decision by their respective owners to secure a permit
and comply with the City's ordinances, generates approximately $7.6 million in Transient
Occupancy Tax (TOT) revenue. In addition, the use and enjoyment of these properties
by visitors to the City of Palm Springs has economic consequences. Evaluation of
potential impacts upon tourism in the City and the local economy will help ensure that the
likely results of this initiative becoming law are analyzed and understood by the City and
its residents and businesses.
Pursuant to state law, the Council ordered staff to secure a report analyzing the potential
economic impacts of the voter initiative proposing to prohibit short term vacation rentals
in single family residences, defined as single family units on property with any R-1
classification. The City contacted six (6) economic consulting firms with a request that
they submit proposals to conduct the analysis. The firms were CBRE Hotels, Pannell Kerr
Forster, TXP Economic and Public Consulting, Development Management Group, Dean
Runyan Associates, and Tourism Economics. Dean Runyan Associates and Tourism
Economics submitted proposals for $20,000 and $15,000 respectively. Tourism
Economics, which specializes in the economic dynamics of tourism, has over four (4)
decades of experience among its principal consultants, and provided the lowest
responsible bid, was selected. Tourism Economics also recently completed a similar
study on the economic impacts of vacation rental visitors for the Greater Palm Springs
Convention and Visitors Bureau (September 2016).
The analysis prepared by Tourism Economics evaluated how the prohibition of single
family residential vacation rental units impacts the likely volume of future visitors to the
City, Transient Occupancy Tax receipts, visitor spending, and associated employment,
payroll, and tax receipts. The analysis involved a review of current data pertaining to
vacation rentals, and a review of previous studies of tourism and vacation home impacts
for Palm Springs and the Coachella Valley. The consultant utilized an Input-Output model
(1-0) to measure the relationships among industries and consumers. Information
produced by this model was segmented by industry—including those industries which
benefit indirectly.
The employment of this methodology affords the City insight into how various industries
benefit from visitor activity. For example, the 1-0 model tracks a visitor's expenditures at
a restaurant, as well as the wages of the restaurant workers. It also tracks owner profits,
capital, taxes, and suppliers. In this way, the 1-0 model allows measurement of the direct
and indirect sales generated by a restaurant meal. The model also calculates the induced
impacts of tourism. These induced impacts represent benefits to the economy as
employees of tourism sectors spend their wages in the local economy, generating
additional output, jobs, taxes, and wages. The source of data used by the analysis is from
IMPLAN which is recognized as a standard in local level 1-0 models. Other types of input-
03
City Council Staff Report
February 21, 2018-- Page 4
Submission to the Voters— Initiative Measure on Vacation Rentals
output models include the U.S. Department of Commerce, Regional Input-Output
Modeling System (RIMS II), and Regional Economic Modeling, Inc. (REMI).
Key industries in Palm Springs that would be impacted by the decrease in visitors likely
to arise from adoption or passage of this initiation include Finance, Insurance and Real
Estate ($69.2 million loss); Retail Trade ($50.1 million loss); Recreation and
Entertainment ($17.4 million loss); and, Food and Beverage ($14.5 million loss). These
categories are each considered an "industry," and are related as parts of the tourism
"cluster." Industry clusters are geographically concentrated and inter-connected by the
flow of goods and services. These groups of industries drive wealth creation in a region,
primarily through export of goods and services.
The report concluded that total job losses, across several industries, would be
approximately 1,158 due to the loss of visitors and visitor spending. It also concluded that
a total of $35.9 million in income would be lost from the Palm Springs Economy on an
annual basis. Revenue losses to the City would be approximately$6.3 million in Transient
Occupancy Tax (TOT) revenues; $2.5 million in sales tax revenues; $3.3 million in
property tax revenues; and $900,000 in other taxes and fees for a total of$12.9 million.
Update on the City's Vacation Rental Compliance Enforcement Efforts
In December 2016, the City established a Vacation Rental Compliance Department which
is funded by vacation rental and homeshare annual registration certificate fees. The
Department is comprised of three (3) Account Clerks, three (3) Code Enforcement
Officers, and two (2) Compliance Officials.
In March 2017, the City Council adopted Ordinance No. 1918 overhauling the City's
vacation rental program. Now, operating a vacation rental without a Vacation Rental
Certificate carries a monetary fine of $5,000 and permanent ineligibility of the property
owner to operate a vacation rental in the City.
The Vacation Rental Compliance Department's efforts have resulted in:
• 50% increase in administrative citations issued.
• Issued over 165 citations for illegally operating Vacation Rentals/Homeshares.
• Eight (8) Vacation Rental Certificate suspensions and two (2) Vacation Rental
Certificate revocations.
• Owners of 55 properties deemed permanently ineligible to operate a vacation
rental.
• Fines associated with citations total $585,000.
• 39% decrease in complaints reported via the 24X7 Vacation Rental Hotline for
Registered Vacation Rental properties.
• Average response to resolution time has improved to 23 minutes for complaints
via Vacation Rental Hotline, during peak days (Thursday-Sunday).
• Increased positive feedback from residents, stakeholders, vacation rental owners,
and vacation rental agents.
• Police Department involvement in vacation rental matters has decreased by 90%.
04
City Council Staff Report
February 21, 2018 -- Page 5
Submission to the Voters— Initiative Measure on Vacation Rentals
Options Related to the Initiative Ordinance
Pursuant to EC Section 9215, the City Council must select one of the following:
Option 1: Adopt the proposed ordinance, without alteration.
Option 2: Pursuant to EC Section 1405(a), the election for a municipal initiative shall
be held at the jurisdiction's next regular election. In this case, the election
when this initiative measure will be submitted to the voters is
scheduled for November 5, 2019.
Option 3: Pursuant to EC Section 1405(b), the governing body may call a special
election for the purpose of submitting an initiative measure to the voters. In
this case, the election when this initiative measure will be submitted
to the voters is June 5, 2018.
FISCAL IMPACT:
It is estimated to cost$19,000-29,000 to add the initiative measure to the ballot, regardless
of whether the City Council decides to do so with respect to the scheduled November 2019
General Municipal Election, or the June 2018 Statewide Primary Election. An additional
$11,000 is estimated for the cost to translate and publish required public notices. There are
insufficient funds budgeted for a special election in the adopted Fiscal Year 2017-18
Budget. Should the City Council choose to submit the initiative measure to the voters at a
special election (June 2018 Statewide Primary Election), supplemental funding in the
amount of$40,000 from the undesignated fund balance i uired.
L
thon Edward Z. Kotkin
City Clerk/ City Attorney
e
David H. Ready, Esq., Ph.
City Manager
Attachments:
1. Assessment Report from Tourism Economics
2. Update on the City's Vacation Rental Compliance Efforts
3. Ordinance — Prohibiting Vacation Rental of Single Family Residences
4. Resolution — General Election November 2019
5. Resolution — Special Election June 2018
6. Resolution — Request for Consolidation with County
7. Resolution — Priorities for Arguments
8. Resolution — Rebuttal Arguments
9. Resolution — Budget Amendment
10.Correspondence 05
ATTACHMENT I
Impact Assessment Report
06
r
i
� v
VacationAn Assessment of the Proposed
Change in Rental
Regulations in Palm Springs, CA
y �
February •
CD
i
4
Prepared for: o� T O U R I S M
"P , �'p �,,�., c �1: t ECONOMIC S
AN OXFORD ECONOMICS COMPANY
O
a-=0
U
O
L.
C
a �
Introduction and definitions How visitor spending drives employment
and income in the local economy.
This study examines the proposed change to regulations Reduced visitor spending would flow through the Palm
governing vacation rentals in the City of Palm Springs,California. Springs regional economy and generate indirect impacts
through supply chain and income effects.
Current regulations allow the short-term vacation rental of single family
dwellings in the City.The proposed change to City regulations would prohibit
short-term vacation rentals in single family dwellings located on property with
any R-1 zoning. The prohibition would go into effect 24 months after the Sector Impact Effect
adoption of the regulation change.
The City has a total of 1,986 units registered as vacation rentals and Transportation Production
homeshares that hosted an estimated 467,000 visitors in 2017. In order to
assess the potential impacts of the proposed change, this analysis estimates Entertainment
the number of units that would be affected by the rental prohibition,the visitor
volume and direct spending associated with those units,the total economic Jobs
impacts,and the impact on tax revenues generated. Recreation Direct
Annual impacts are measured in terms of lost business sales and reduced Indirect
employment, income, and tax revenues associated with fewer visitors.Total Retail induced W8BS
economic impacts include lower levels of direct visitor spending, and lost 9
indirect and induced impacts.Direct visitor spending creates economic
value in specific visitor-related sectors such as lodging, recreation, and Food & Beverage
transportation.This supports a relative proportion of jobs, wages, taxes, and
GDP within each sector. Indirect benefits accrue to those sectors that Taxes
provide goods and services as inputs into production,such as food Accommodations
wholesalers, utilities,and financial or legal services. Induced benefits are
generated when employees whose incomes are driven directly or indirectly by
visitors,spend a portion of that income in the local regional economy.Without
the direct visitor spending, none of the indirect and induced benefits would be
realized in the local economy.
Tourism Economics 3
A
c�
C/)
mo
LL
N
10
Summary findings The prohibition of vacation rentals in single
family units zoned R-1 would reduce visitor
spending and all the associated benefits.
The proposed change to vacation rental regulations would
prohibit rentals in single family units with any R-1 zoning,
which would affect nearly three-quarters of the vacation
rental market.
The prohibition would likely reduce visitor volume to Palm
Springs and result in lower levels of direct visitor
spending.
The visitor volume associated with the units that would be
affected by the policy change amounts to more than
349,000 visitors to Palm Springs, after accounting for `
visitors likely to shift over to hotels. The loss of these
visitors would lead to a reduction in visitor spending
estimated to be $154.1 million.
Lower levels of visitor spending would lead to negative
indirect and induced impacts in the regional economy, and
the total economic impact would be a loss of$199 million
annually.
Lower levels of sales would correspond to 1,158 fewer jobs
and $35.9 million in lost annual income.
Annual local revenues lost would amount to $12.9 million. i T
F.. I Tourism Economics
F-+
3. Vacation rental trends
Vacation rental registrants are Vacation rental registrants have doubled
on the rise since 2009.
In 2009,just under 1,000 units Vacation Rental Registrants
were registered as vacation
rentals, with individual registrants 2,500
accounting for approximately one Individual
quarter of all registrants. =Agency
2,000 ----
During 2017, total registrant —Total registrants
exceeded 2,000 units, and 1,500
-------------------------------------
finished the year with 1,861
registrants. This rate of growth in
registrants is nearly 10% per year 1,000 ----------------------------- -------
since 2009, a doubling in eight
years.
500
0
09 10 11 12 13 14 15 16 17
Source: City of Palm Springs Finance and Treasury
►-+ I Tourism Economics 7
Individual registrants account Individual registrants account for more than
for an increasing share half of the total, up from about 25% in
2009.
In 2009, individual registrants Share of Individuals Registrants is Increasing
amounted to roughly 250, about a Share of total, %
quarter of the total. 60
Total registrants grew rapidly, 50
and individual registrants grew
even faster. In 2017, individual 40
registrants totaled over 1,000 and
accounted for more than half of
the total. 30
20
10
0
09 10 11 12 13 14 15 16 17
Source: City of Palm Springs Finance and Treasury
f r I Tourism Economics g
.t].
Vacation rentals generate Vacation rentals generated $7.6 million in
significant TOT revenues Transient Occupancy Tax revenues in fiscal
year 2017.
In fiscal 2009, the City collected Transient Occupancy Tax Revenues
just under$15 million in Transient By fiscal year, $ millions
Occupancy Tax (TOT) revenues.
The vacation rental segment of 30 =Vacation rentals
the market accounted for 11.1% Other TOT
of total TOT, bringing in $1.6 25 0
—VR share of total, /o
million.
20
Since fiscal 2008, total TOT .
revenues expanded 8.2% per 15 .
year on average,while TOT
revenue driven by vacation 10
rentals grew 18.9% per year.
5 In fiscal 2017, vacation rentals
accounted for$7.6 million in TOT 0
revenues, or 25.8%of the total, 08 09 10 11 12 13 14 15 16 17
more than doubling its share
since fiscal 2008. Source: City of Palm Springs Finance and Treasury
I Tourism Economics g
Cdl
5 . The proposed change
The proposed change would The prohibition would reduce the inventory
prohibit vacation rentals in most of available vacation rental units by about
single family units 74%.
According to the proposed initiative, the term "vacation In order to assess the economic impact of the regulation change,
rental' is defined as "occupancy for dwelling, lodging, or visitor volume associated with the single family units that would
sleeping purposes without the presence of the owner for a be prohibited was estimated along with their annual spending in
period of twenty-eight consecutive days or less." the Palm Springs local economy.
The 1,468 single family units are estimated to have hosted 387,982 visitors to
Current city regulations prohibit the vacation rental of apartments after the City in 2017. These visitors engaged in spending across various sectors
1/1/2019, neither prohibit nor allow vacation rental of condo units as of the local economy,such as food and beverage, retail shopping, recreation,
such, and allow the vacation rental of single family dwellings. The and local transportation.
proposed change would maintain the prohibition on the vacation rental
of apartments after 1/1/2019, allow the vacation rental of condo units, It is assumed that there is likely overlap between the vacation rental market
and prohibit the vacation rental of single family dwellings on property and the hotel market, and absent a vacation rental option some visitors would
zoned R-1. seek lodging in hotels. For purposes of this analysis it is assumed 10%of
vacation rental visitors would shift over to hotels, and as a result their
spending would not be lost from the local economy.Therefore, the estimates
Palm Springs currently has a total of 1,986 vacation rental registrants of visitors and visitor spending actually lost from the local economy amount to
as of the end of 2017, including 1,521 single family units, accounting 349,183 and $154.1 million,or 90%of the total volume and spending
for 76.6% of the total. Other registered units are condos, home shares, associated with the affected single family units.There is upside and downside
or multifamily units. According to City staff, approximately 96.5% of risk to this assumption and actual losses to the regional economy would
single family vacation rental registrants are zoned as R-1, meaning depend on the extent of overlap between the vacation rental and hotel
that nearly all would be affected by the prohibition. markets:more overlap would translate to less losses, and less overlap
between the markets would mean greater losses to the local economy.
This would mean that an estimated 1,468 single family units on Not incorporated into the analysis is any reduction of condo units that could
property zoned as R-1 would be prohibited from registering as be taken out of the vacation rental market due to home owners association
vacation rental units. This accounts for 73.9% of the current inventory rule changes that may come about as a result of the proposed regulation
of vacation rentals. change, if it were to be adopted.
Economic impacts are reported on an annual basis and a long-term
summation of potential ten-year impacts are also presented.
H
-.i I Tourism Economics 11
Lost visitor spending Taking most vacation rental units offline
would likely result in significantly lower
visitor spending.
Vacation rental visitors spend across Vacation Rental Visitor Spending per Trip
various sectors in the local economy. Transport
Lodging and food and beverage (local)
account for more than half of direct
visitor spending,followed by retail,
recreation, and local transportation.
Recreation
Total direct visitor spending likely to Lodging
be lost from the economy would
include:
$54.4 million in lodging Per Gerson
$33.1 million on food $424
$25.9 million retail
$21.0 million on recreation
$13.8 million on local transport
Retail
These visitors also spend on air
transportation,a portion of which,
$6.0 million,stays in the local Food
economy and generates jobs.
Sources: DK Shifflet, CIS, Tourism Economics
Total visitor spending lost from the
local economy would amount to
$154.1 million per year.
h-+ 1 Tourism Economics 1
Co 2
Ke metrics : affected share o y f
the vacation rental market
AnnualVacation Annual Visitor
Rental Units • - Spending
Vacation
11986 467,094 $206.2 million
Rental mkt
Affected SF,
17468 387,982 $171 .2 million
R-1 units
Lost from
-- 3499183 $154.1 million
Economy
Sources: CIS, D.K. Shiff let, Tourism Economics
U
cu
Q
E
U
.E
O
C
O
U
W
L6
20
Total lost business sales A total of $154. 1 million per year in direct
visitor spending would be taken out of the
local economy.
Gross • ,
Fewer visitors to Palm Springs
would correspond to a loss of Million)
$154.1 million in direct visitor D
spending, primarily in finance, Agriculture, Fishing, Mining - 0.1 0.1 0.2
insurance, and real estate, retail, Construction and Utilities - 2.8 0.8 3.6
and recreation. Manufacturing - 0.4 0.2 0.6
Wholesale Trade - 0.5 0.6 1.1
Adding direct, indirect, and Air Transport(local) 6.0 0.1 0.1 6.2
induced impacts together, the Other Transport 2.2 0.6 0.2 3.0
total loss to the economy would Retail Trade 47.5 0.2 2.4 50.1
be $199.3 million in lost business Gasoline Stations 10.4 0.0 0.2 10.6
sales annually. Communications - 1.5 0.4 2.0
Finance, Insurance and Real Estate 55.6 6.6 6.9 69.2
Business Services - 5.8 1.3 7.1
Education and Health Care - 0.0 4.5 4.5
Recreation and Entertainment 16.3 0.7 0.5 17.4
Lodging - 0.2 0.2 0.4
Food& Beverage 11.5 1.1 1.9 14.5
Personal Services 4.7 1.0 1.3 7.0
Government - 1.3 0.6 1.9
TOTAL 154.1 1 22.9 1 22.3 199.3
Direct sales include cost of goods sold for retail sectors
Tourism Economics „
Lost sales by industry Indirect impacts would come primarily in
finance, real estate, and insurance, and
business services.
Lost Gross Output F Food and Beverage
FIRE:Finance, Insurance,Real Estate
$ million Bus. Services:Business Services
Gas:Gasoline Stations
80 Other Transp:Other Transportation
Manu.: Manufacturing
70 Personal Serv.: Personal Services
Comm:Communication
60 Significant indirect
50 losses
■ Induced
40 Indirect
30 ■ Direct
20
10
0 -- _
fD (n (6 r- C C Q
O od O O O O ( E
cp U U) O -p v C)m F— `. w C (1)
L O -C
m Q U O
N Tourism Economics 16
N
Employment impacts Lower levels of sales would correspond to
1 , 158 fewer jobs in Palm Springs.
Lower levels of visitors spending Employment Impact
would sustain the equivalent of Direct Indirect InducedTotal
808 fewer direct jobs. There is Agriculture, Fishing,Mining - 1 1 2
likely variation surrounding the Construction and Utilities - 9 2 11
jobs impact since employers Manufacturing - 2 1 3
could adjust payrolls and Wholesale Trade - 3 3 6
maintain staffing levels in some Air Transport(local) 20 - - 20
cases. While all of these jobs
may not actually be lost in the Other Transport 11 5 2 18
economy, the estimate provides Retail Trade 250 2 31 283
an order of magnitude impact on Gasoline Stations 10 - 1 11
jobs proportionate to the reduced Communications - 8 2 10
level of business sales. Finance,Insurance and Real Estate 120 30 19 169
Business Services - 62 14 76
Direct impacts would come Education and Health Care - - 46 46
primarily in retail, recreation, and Recreation and Entertainment 196 10 6 212
food and beverage. Lodging - 2 2 4
Food& Beverage 150 17 30 197
Including indirect and induced Personal Services 51 10 18 79
jobs, the total jobs impact in Palm IGDvernment - 8 3 1 11
Springs would be 1,158jobs ITOTAL 808 1 169 1 181 1 1,158
potentially lost after prohibiting
vacation rentals in single family
R-1 units.
I Tourism Economics 17
r.l
W
Employment impacts by Indirect and induced impacts would occur
industry across sectors.
Employment Impacts
300
250 , ■ Induced
200 hiliv-
Indirect
150 ■ Direct
100
50
0
Q� c U
o Z a) o M CO o is O
f0 +. LL N U O N U C� C
L
U) cn LLl Q O
}' U
LL m L
H
L
Tourism Economics 18
Income impacts A total of $35.9 million in income would be
lost from the Palm Springs economy on an
annual basis.
Labor
Lower levels of visitor spending (US$ Million)
would drive fewer jobs and less
income earned. induced Total
Agriculture,Fishing,Mining - 0.0 0.0 0.1
Direct income earned would be Construction and Utilities - 0.7 0.2 0.9
$21.9 million lower annually. This Manufacturing - 0.1 0.0 0.1
includes income earned at Wholesale Trade - 0.2 0.2 0.4
restaurants, retail shops, and Air Transport(local) 1.1 0.0 0.0 1.1
other businesses where vacation Other Transport 0.8 0.3 0.1 1.2
rentals visitors spend. Retail Trade 6.7 0.1 1.0 7.8
Gasoline Stations 0.5 0.0 0.1 0.6
Indirect impacts would include a Communications - 0.3 0.1 0.4
loss of$6.9 million in indirect Finance,Insurance and Real Estate 2A 0.9 0.5 3.8
income, and $7.2 million in Business Services - 2.3 0.5 2.9
induced income benefits that Education and Health Care - 0.0 2.5 2.5
would not be realized. Recreation and Entertainment 4.8 0.2 0.1 5.2
Lodging - 0.1 0.1 0.1
The total impact on income Food& Beverage 3.3 0.4 0.7 4.5
earned in Palm Springs would be Personal Services 2.2 0.5 0.6 3.4
a loss of$35.9 million per year. Government - 1 0.7 0.2 1 0.9
TOTAL 21.9 1 6.9 7.2 1 35.9
Tourism Economics 19
Impact on tax revenues A total of $12.9 million in local tax a fee
revenues would be lost per year.
Vacation rental visitors and their
spending generate significant tax
revenues.A total of$12.9 million
in local revenues would be lost if single family vacation rentals Annual Tax
Revenues '
st
were prohibited.
Local tax revenues lost would $ millions
include$2.5 million in sales tax,
$6.3 million in Transient
Occupancy Tax (TOT) revenues, Local taxes
$3.3 million in property tax, and
$0.9 million in other taxes and Sales tax 2.5
fees such as permitting and Lodging (TOT) 6.3
licensing. Property 3.3
Property tax impacts are Other excise and fees 0.9
calculated proportional to the ITotal local revenues 12.9
reduction in sales in the
economy. While these taxes may
still be paid in the near-term,
property owners would have to
make up for lost sales in order to
do so.
iV I Tourism Economics 20
Long-term impacts If the prohibition of vacation rentals is on-
going the long-term losses to the economy
would accumulate.
Assuming just 3% growth per
year, the 10-year cumulative
losses to the Palm Springs
economy would be significant.
A total of$1.8 billion in direct • • Impacts
visitor spending would be taken
out of the economy, more than
$2.3 billion in total business sales Cumulative
lost, more than $411.9 million in Impact
lost income, and more than Opp"
$148.2 million in lost local Direct spending (mils) $ 1,766.8
revenues. Total business sales (mils) $ 2,285.3
Income (mils) $ 411.9
Local tax (mils) $ 148.2
Note: Assumes 3% growth per year
N I Tourism Economics 21
5 . Data Sources and Methods
r�
Methods and data sources
Estimates of the economic impact of vacation rental visitors to Palm These previous analyses provide context for this assessment of
Springs, and the losses likely to be incurred if the proposed vacation rentals in the City of Palm Springs and many of the estimates
regulations change is adopted,were based on several sources: in this report were generated by sharing down from totals for the
■ Visitor profile data and spending estimates produced by the broader Greater Palm Springs Region, which includes nine cities.
Greater Palm Springs CVB.
■ Volume and segmentation data from DK Shifflet and Associates, a
consumer research firm. An IMPLAN input-output(1-0) model was constructed for Riverside
■ Smith Travel Research (STR) data on the hotel sector, including County. The model traces the flow of visitor-related expenditures
supply, demand, revenues, average rates, and occupancy rates. through the local economy and their effects on employment,wages,
■ Data on Transient Occupancy Tax (TOT)for Palm Springs were and taxes. IMPLAN also quantifies the indirect(supplier) and induced
available from the City and from Visit California. (income) impacts of tourism. Tourism Economics then cross-checked
these findings with employment and wage data for each sector to
Key metrics incorporated into the analysis based on survey data ensure the findings are within reasonable ranges. Adjustments were
include an average length of stay of 5.1 days and average party size made to model output to ensure the capture of indirect economic
of 5.4, based on data rental contracts data maintained by City staff in impacts in the city only, and not a wider geographic area.
the Vacation Rentals department.
The IMPLAN model uses industry averages for grows output, value
A total effective local sales tax rate of 2.5%was used and includes added, and income, based on data from various government sources,
Measure J and Measure D rates, and a TOT rate of 11.5%was such as the Bureau of Economic Analysis and the Bureau of Labor
incorporated. Property tax and other revenues were estimated in Statistics. The 1-0 model accounts for inter-industry relationships and
proportion to total sales. captures how much additional demand in supplier industries results
from additional final demand in a directly affected industry.
This analysis is based on previous work completed on behalf of the
Palm Springs CVB, including overall economic impact analyses of the
broader tourism industry in the Greater Palm Springs region, and an
analysis of the vacation rentals segment of the market, also for the
Greater Palm Springs region. In these studies, total visitor volume and
spending were estimated based on survey work completed by DK
Shifflet and Associates, and the survey firm CIS, along with additional
data sources such as city level TOT, data covering the city hotel
markets in Greater Palm Springs including metrics on room demand
and supply, room revenues, occupancy rates, and average room
rates.
tV I Tourism Economics 23
W
About Tourism Economics
Tourism Economics is an Oxford Economics company with a singular
objective:combine an understanding of tourism dynamics with
rigorous economics in order to answer the most important questions
facing destinations, developers, and strategic planners. By combining
quantitative methods with industry knowledge, Tourism Economics
designs custom market strategies, destination recovery plans, tourism
forecasting models, tourism policy analysis, and economic impact
studies.
With over four decades of experience of our principal consultants, it is
our passion to work as partners with our clients to achieve a
destination's full potential.
Oxford Economics is one of the world's leading providers of economic
analysis, forecasts and consulting advice. Founded in 1981 as a joint
venture with Oxford University's business college, Oxford Economics
enjoys a reputation for high quality, quantitative analysis and
evidence-based advice. For this, its draws on its own staff of 30
highly-experienced professional economists; a dedicated data analysis
team; global modeling tools, and a range of partner institutions in
Europe, the US and in the United Nations Project Link. Oxford
Economics has offices in London, Oxford, Dubai, Philadelphia, and
Belfast.
TOURISM
ECONOMICS
AN OXFORD ECONOMICS COMPANY
OW I Tourism Economics 24
ATTACHMENT 2
Vacation Rental Compliance Enforcement Update
31
DEPARTMENT OF VACATION
RENTAL COMPLIANCE
February 21, 2018
V
J
e�
DEPARTMENT OF VACATION RENTAL
COMPLIANCE TEAM
2 Compliance Officials -
,:. Ww a� .
,r
3 Office Team Members
❖ Application processing
❖ Citation management
3 Field Code Officers
❖ First Responders to 24/7 Hotline calls
❖ Response time to complaints cut in half during peak hours
❖ Reduced police involvement at Vacation Rentals by 90%
❖ Investigation of illegal Vacation Rentals/Homeshares
w
C.J
COMPLIANCE EFFORTS
Since April 16, 2017:
Implemented Ordinance No.1918 and its comprehensive requirements
Continually educated community, real estate professionals, Vacation
Rental/Homeshare owners and agents
Hosted collaborative monthly stakeholder meetings
Developed user friendly website as a valuable resource
Maintained and published weekly Hotline Reports and quarterly statistics for
transparency
CJ
ENFORCEMENT EFFECTIVENESS
April 16, 2017 — December 31, 2017:
❖ Suspended 8 Vacation Rental Registration Certificates for 2 years
❖ Owners of 55 Properties deemed permanently ineligible to operate a VR
❖ Permanently revoked 2 Vacation Rental Registration Certificates
'' ❖ Issued over 165 citations for illegally operating Vacation Rentals/Homeshares
a ❖ Issued over 330 total citations (180 citations issued in same period of 2016)
❖ Fines associated with citations total $585,000
❖ Volume of Hotline Calls on Registered Vacation Rentals decreased by 39%
OTHER DATA
❖ December 2016 - total 1,967 Registered Vacation Rentals/Homeshares
❖ December 2017 - total 1,986 Registered Vacation Rentals/Homeshares
❖ Vacation Rental TOT - Fiscal Year 2016 to 2017 - $7.58 Million
w
ATTACHMENT 3
Ordinance — Initiative Measure
js
Attachment 3
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, AMENDING THE PALM
SPRINGS MUNICIPAL CODE TO PROHIBIT THE
VACATION RENTAL OF SINGLE FAMILY RESIDENCES IN
THE CITY
CITY ATTORNEY'S SUMMARY
Under Chapter 5.25 of the Palm Springs Municipal Code, the term "vacation
rental"is generally defined as occupancy for dwelling, lodging, or sleeping
purposes without the presence of the Owner for a period of twenty-eight
(28) consecutive days or less. Chapter 5.25 of the Code (i) prohibit s the
vacation rental of apartments, in the City, effective January 1, 2019, (ii)
neither prohibits nor allows the vacation rental of condominiums as a
separate category of residence, (iii) allows the vacation rental of single
family dwellings, subject to certain limitations. This Initiative Measure
modifies the definition of "apartment," and creates new definitions of the
terms "condominiums" and "single family residences." The Initiative
Measure maintains the prohibition on the vacation rental of apartments in
the City, effective January 1, 2019, permits the vacation rental of
condominiums, but amends Chapter 5.25 of the Code to prohibit the
vacation rental of single family residences (defined as single family dwelling
units located on property zoned R-1-B, R-1-A, R-1-C, R-1-D, R-1-AH, or
any other R-1 classification) in the City. This new prohibition against
vacation rental of all single family residences shall be effective twenty-four
(24) months after the Initiative Measure's effective date.
In the event the Initiative Measure is adopted by the voters, the provisions
of Chapter 5.25 expressly amended by the Initiative Measure can only be
amended or repealed by a vote of the City at a special or general election.
WHEREAS, pursuant to Article 1, of Chapter 3, of Division 9, of the California
Elections Code, on November 20, 2017, an initiative petition was received proposing
amendments to the Palm Springs Municipal Code to prohibit the vacation rental of single
family residences in the City; and
WHEREAS, the Charter of the City of Palms Springs, Section 501(g), designates
the City Clerk as the election official for the City of Palm Springs; and
WHEREAS, the City Clerk examined and/or caused the counting and examination
by means of a 100% verification process of the signatures on said petition; and
WHEREAS, the number of valid signatures required to qualify said petition is
3,786, and the number of valid signatures on said petition was 4,601; and
Page 1 37
WHEREAS, California Election Code Section 9215 requires that when a petition
has been filed with the City, signed by more than ten percent (10%) of the number of
registered voters of the City, it must be enacted by the legislative body of the City or
submitted to a vote of the people; and
WHEREAS, pursuant Election Code § 9215(a) the City Council of the City of Palm
Springs has determined to enact said initiative petition; and
WHEREAS, Election Code § 9215(a) states "Adopt the ordinance, without
alteration, at the regular meeting at which the certification of the petition is presented, or
within 10 days after it is presented;" therefore, this ordinance language has been adopted
without alteration and exactly as shown in the initiative petition; and
WHEREAS, these foregoing recitals are not incorporated into this ordinance and
serve only for reference purposes.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS ORDAINS:
SECTION 1: Business Regulations Code Amendment. Sections 5.25.020, 5.25.030
and 5.25.075 of Chapter 5.25 of the Palm Springs Municipal Code are hereby amended
to read in their entirety as set forth below with changes shown in strikeou and underline:
A. Section 5.25.020 of Chapter 5.25 of the Palm Springs Municipal Code is hereby
amended in its entirety to read as follows:
"5.25.020 Findings.
The City Council finds and determines as follows:
(a) The primary use of single-family and multi-family 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 Rental 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
multi-family zones if such uses are ancillary and secondary to the multi-family
residential use of property. 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.
(b) The purpose of this Chapter is to establish a regulatory program for short term
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
Page 2 38
vaeat4en Fenn l Vacation Rentals and Homesharing are ancillary and secondary
uses of privately owned multi-family residential dwelling units, including without
limitation Condominium units, 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 F privately
owned multi-family dwelling units, including without limitation Condominium units
subject to the regulations provided in this Chapter and prohibiting Vacation
Rental in rental Apartments and but allowing Homesharing lodging in R-1 Single
Family residences 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 Home Sharing
lodging in privately owned multi-family residential dwelling units and to
Registration Certificates for Homesharing lodging within Single Family residential
neighborhoods and for rental Apartments 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 in RR=1
Single Family residential neighborhoods.
(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."
B. Section 5.25.030 of Chapter 5.25 of the Palm Springs Municipal Code is hereby
amended in its entirety to read as follows:
"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 subject to rent or lease by the owner of 44 a
multi-family development structure of two (2) dwelling units where both dwelling units
are rented or leased for occupancy as a residence for individual families, and (b) a
residential unit subject to rent or lease by the owner of in-a multi-family develepFAer;t
structure of three (3) or more dwelling units. A privately owned individual dwelling unit
in a Condominium project or other multi-family development shall not constitute an
"Apartment."
"Applicant" means the Owner.
Page 3 39
"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 or a limited liability company consisting
solely of natural persons.
"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.
"Condominium unit" means an individual dwelling unit in a multi-family structure that
is individually owned, where each owner receives a recordable deed to each
individual unit purchased, including the right to sell or mortgage each unit and sharing
in joint ownership of any common grounds and passageways.
"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 am and 10:00 pm.
"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 Marshall,
the Building Official, or one or more of their respective designees.
"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 located
on property zoned R 1 Q R 1 n D 1 nu e G-R-5."
Page 4 40
"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 twenty-eight (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.
"Local contact person" means the Owner, a local property manager, or agent of the
Owner, who is available twenty-four hours per day, seven days per week for the
purpose of responding in-person within thirty (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.
"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 a limited liability company and the
members of such company, insofar as the disclosure requirements pursuant to
Section 5.25.085 are satisfied. The term "Owner" does not include a Business Entity.
Page 5 41
"Property" means a privately owned multi-family residential legal lot of record,
including without limitation Condominiums, on which a Vacation Rental is located.
"Rental Term" means the period of time a Responsible Person rents or leases a
Vacation Rental.
"Responsible Person" means an occupant of a Vacation Rental who is at least
twenty-five (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.
"Single Family Residence" means a Single Family dwelling unit located on property
zoned R-1-B. R1-A R-1-13 R-1-C R-1-D or R-1-AH or any other R-1 classification."
"Third Quarter" means the entire months of July, August, and September in one
calendar year.
"Vacation Rental" means an Single Family individually rented unit in a multi-family
structure, including without limitation Condominium units, or any portion thereof,
utilized for occupancy for dwelling, lodging, or sleeping purposes without the Owner
being present for a period of twenty-eight (28) consecutive days or less, 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."
C. Section 5.25.075 pf Chapter 5.25 of the Palm Springs Municipal Code is hereby
amended in its entirety to read as follows:
"5.25.075 Specific Prohibitions.
(a) 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.
(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, the owner of a Single Family Residence
or the owner of a rental Apartment structure, as a rental Apartment manager, or
a representative of the rental Apartment owner or manager, shall evict any tenant
or otherwise terminate a lease for the purpose of converting an a rental
Apartment to a Vacation Rental or in anticipation of converting aR a rental
Page 6 42
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
owner of a Single Family Residence or an owner of a4:►-a rental Apartment
structure, rental Apartment manager, or representative to recover possession of
the unit. Any attempt to recover possession of a unit in violation of this Ordinance
shall render the rental Apartment structure owner, rental 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 ar} a rental Apartment or portion thereof
pursuant to a valid aVacation 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 rental Apartments and which may not have
been recouped during the period of Vacation Rental use of the rental 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.
(f) The provisions of Subsection (a) of this Section shall not apply to or be enforced
against any person or entity who rents a Single Family Residence or portion
thereof pursuant to a valid Vacation Registration Certificate issued prior to the
effective date of this ordinance for a period of twenty-four months. 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 the effective date
of this ordinance to be afforded a reasonable opportunity to recoup costs
reasonably invested for Vacation Rental use of Single Family residences and
which may not have been recouped during the period of Vacation Rental use of
the Single Family residence and which cannot be recouped once the Vacation
Rental use is terminated.
Page 7 43
(g) The provisions of Subsection (a) of this Section, Subsection 5.25.040(b) [limits
on number of unitsl, shall also not apply for a period of twenty-four months after
the effective date of this ordinance to any Single Family Residence that meets
all requirements of an R-1 occupancy under the City's building and fire code and
for which such Single Family Residence has a valid Vacation Rental Registration
Certificate issued prior to the effective date of this ordinance.
SECTION 2. Severability
A. In interpreting this initiative measure or resolving any ambiguity thereof, the City
Council and all other City entities charged with implementing or enforcing this initiative
measure or any part of it, as well as any reviewing court, shall interpret this initiative
measure in the manner which most vigorously and effectively accomplishes its
purposes and operative provisions.
B. If any portion of this initiative measure is hereafter determined to be invalid by a court
of competent jurisdiction, all remaining portions of this initiative measure shall remain
in full force and effect. Each section, subsection, sentence, phrase, part or portion of
this initiative measure would have been adopted and passed irrespective of the fact
that any one or more sections, subsections, sentences, phrases, parts or portions be
declared invalid or unconstitutional.
Section 3. Implementation
A. On the effective date of this initiative measure as provided by California law (the
"Effective Date"), all provisions this initiative measure are inserted into and become
part of the City of Palm Springs Code.
B. No provision of the City of Palm Springs Code that is inconsistent with this initiative
measure shall be enforced after the Effective Date.
C. Adoption of this initiative measure is essential to the preservation of the quality of life,
property values and the health, safety and general welfare interests of residents and
property owners within the City.
Section 4. Amendment and Repeal
This initiative measure and all of its provisions may be amended or repealed only by a
majority vote of the electorate.
Page 8 44
ROBERT MOON, MAYOR
ATTEST:
ANTHONY J. MEJIA, MMC
CITY CLERK
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, hereby certify that
Ordinance No. is a full, true, and correct copy, and was adopted at a regular
meeting of the City Council held on the 21 st day of February, 2018, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
ANTHONY J. MEJIA, MMC
CITY CLERK
Page 9 45
ATTACHMENT 4
Resolution — General Municipal Election
45
Attachment 4
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, DECLARING ITS INTENT
TO SUBMIT TO THE VOTERS AT THE GENERAL
MUNICIPAL ELECTION SCHEDULED TO BE HELD ON
TUESDAY, NOVEMBER 5, 2019, A QUESTION RELATING
TO THE PROHIBITION OF VACATION RENTAL OF
SINGLE FAMILY RESIDENCES IN THE CITY
WHEREAS, pursuant to authority provided by statute a petition has been filled
with the legislative body of the City of Palm Springs, signed by at least ten (10%)
percent of the voters of the City, according to the last report of registration by the county
elections official to the Secretary of State, to submit a proposed ordinance amending
the Palm Springs Municipal Code to prohibit the vacation rental of single family
residences in the city; and
WHEREAS, the City Clerk's Office, with assistance from the Riverside County
Registrar of Voters examined the records of registration and ascertained that pursuant
to California Elections Code (EC) Section 9215 the petitions are signed by the requisite
number of voters, and has so certified; and
WHEREAS, on January 24, 2018, the City Council accepted, received, and filed
the Certificate of Sufficiency of Initiative Petition for the prohibition of vacation rental of
single family residences in the City and ordered a report on the initiative measure
pursuant to Election Code Section 9212; and
WHEREAS, the City Council has not voted in favor of the adoption of the
foregoing ordinance; and
WHEREAS, the City Council's usual practice is not to place a matter on the
November ballot for a General Municipal Election until it actually calls the election in
June of the applicable year.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,
CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS
FOLLOWS:
SECTION 1. The City Council intends to submit the proposed ordinance to the
voters at the General Municipal Election, scheduled to be held on November 5, 2019, in
accordance with Election Code Section 1405(a).
SECTION 2. The City Clerk is instructed and directed to return to the City Council
at the appropriate time for the purpose of calling and giving notice of a General
Municipal Election, scheduled to be held on November 5, 2019, and to place the
initiative measure on said ballot.
47
Resolution No.
Page 2
SECTION 3. The text of the proposed ordinance to be submitted to the voters is
attached hereto as Exhibit "A."
SECTION 4. The City Clerk of the City of Palm Springs shall certify to the
passage and adoption of this resolution and its approval by the City Council and shall
cause the same to be listed in the records of the City.
DAVID H. READY, CITY MANAGER
ATTEST:
ANTHONY J. MEJIA, CITY CLERK
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on the 21st day of February,
2018, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ANTHONY J. MEJIA, CITY CLERK
48
Attachment 4, Exhibit A
ORDINANCE NO.
AN INITIATIVE MEASURE TO BE SUBMITTED DIRECTLY TO THE VOTERS
In accord with applicable California law and Section 803 of the Charter of the City of Palm
Springs, the People of the City of Palm Springs hereby ordain as follows:
SECTION 1: Business Regulations Code Amendment. Sections 5.25.020, 5.25.030
and 5.25.075 of Chapter 5.25 of the Palm Springs Municipal Code are hereby amended
to read in their entirety as set forth below with changes shown in S*�ut and underline:
A. Section 5.25.020 of Chapter 5.25 of the Palm Springs Municipal Code is hereby
amended in its entirety to read as follows:
"5.25.020 Findings.
The City Council finds and determines as follows:
(a) The primary use of single-family and multi-family 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 Rental and Homesharing are similar in character and use as hotels and
other commercial short term uses and can only be permitted in Single Comer
multi-family zones if such uses are ancillary and secondary to the multi-family
residential use of property. 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.
(b) The purpose of this Chapter is to establish a regulatory program for short term
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
YaGatmen rental Vacation Rentals and Homesharing are ancillary and secondary
uses of privately owned multi-family residential dwelling units, including without
limitation Condominium units, 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.
Page 1 49
(c) Limiting Vacation Rental and Homesharing lodging to Single Family privately
owned multi-family dwelling units, including without limitation Condominium units
subject to the regulations provided in this Chapter and prohibiting Vacation
Rental in rental Apartments and but allowing Homesharing lodging in R-1 Single
Family residences 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 Home Sharing
lodging in privately owned multi-family residential dwelling units and to
Registration Certificates for Homesharing lodging within Single Family residential
neighborhoods and for rental Apartments 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 in RR-1
Single Family residential neighborhoods.
(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."
B. Section 5.25.030 of Chapter 5.25 of the Palm Springs Municipal Code is hereby
amended in its entirety to read as follows:
"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 subject to rent or lease by the owner of in a
multi-family development structure of two (2) dwelling units where both dwelling units
are rented or leased for occupancy as a residence for individual families, and (b) a
residential unit subject to rent or lease by the owner of in-a multi-family develepnaert
structure of three (3) or more dwelling units. A privately owned individual dwelling unit
in a Condominium project or other multi-family development shall not constitute an
"Apartment."
"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.
Page 2 50
"Business Entity" means a corporation, partnership, or other legal entity that is not a
natural person or a personal or family trust or a limited liability company consisting
solely of natural persons.
"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.
Condominium unit means an individual dwelling unit in a multi-family structure that
is individually owned where each owner receives a recordable deed to each
individual unit purchased including the right to sell or mortgage each unit and sharing
in joint ownership of any common grounds and passageways.
"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 am and 10:00 pm.
"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 Marshall,
the Building Official, or one or more of their respective designees.
"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 located
on property zoned R 1 a R 1 n R 1 AH, e G-R-5."
"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
Page 3 5
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 twenty-eight (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.
"Local contact person" means the Owner, a local property manager, or agent of the
Owner, who is available twenty-four hours per day, seven days per week for the
purpose of responding in-person within thirty (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.
"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 a limited liability company and the
members of such company, insofar as the disclosure requirements pursuant to
Section 5.25.085 are satisfied. The term "Owner" does not include a Business Entity.
"Property" means a privately owned multi-family residential legal lot of record,
including without limitation Condominiums, on which a Vacation Rental is located.
"Rental Term" means the period of time a Responsible Person rents or leases a
Vacation Rental.
"Responsible Person" means an occupant of a Vacation Rental who is at least
twenty-five (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.
Page 4 52
"Single Family Residence" means a Single Family dwelling unit located on property
zoned R-1-13. R1-A, R-1-13, R-1-C, R-1-D or R-1-AH or any other R-1 classification."
"Third Quarter" means the entire months of July, August, and September in one
calendar year.
"Vacation Rental" means an Songle-Family individually rented unit in a multi-family
structure, including without limitation Condominium units, or any portion thereof,
utilized for occupancy for dwelling, lodging, or sleeping purposes without the Owner
being present for a period of twenty-eight (28) consecutive days or less, 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."
C. Section 5.25.075 pf Chapter 5.25 of the Palm Springs Municipal Code is hereby
amended in its entirety to read as follows:
"5.25.075 Specific Prohibitions.
(a) No person or entity shall offer or provide a Single Family Residence or ara-a rental
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, the owner of a Single Family Residence
or the owner of a rental Apartment structure, ae a rental Apartment manager, or
a representative of the rental Apartment owner or manager, shall evict any tenant
or otherwise terminate a lease for the purpose of converting an a rental
Apartment to a Vacation Rental or in anticipation of converting an a rental
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
owner of a Single Family Residence or an owner of an-a rental Apartment
structure, rental Apartment manager, or representative to recover possession of
the unit. Any attempt to recover possession of a unit in violation of this Ordinance
shall render the rental Apartment structure owner, rental 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
Page 5 53
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 a-n a rental Apartment or portion thereof
pursuant to a valid Wacation 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 rental Apartments and which may not have
been recouped during the period of Vacation Rental use of the rental 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 April15, 2016.
(f) The provisions of Subsection (a) of this Section shall not apply to or be enforced
against any person or entity who rents a Single Family Residence or portion
thereof pursuant to a valid Vacation Registration Certificate issued prior to the
effective date of this ordinance for a period of twenty-four months. 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 the effective date
of this ordinance to be afforded a reasonable opportunity to recoup costs
reasonably invested for Vacation Rental use of Single Family residences and
which may not have been recouped during the period of Vacation Rental use of
the Single Family residence and which cannot be recouped once the Vacation
Rental use is terminated.
(g) The provisions of Subsection (a) of this Section, Subsection 5.25.040(b) [limits
on number of unitsl, shall also not apply for a period of twenty-four months after
the effective date of this ordinance to any Single Family Residence that meets
all requirements of an R-1 occupancy under the City's building and fire code and
for which such Single Family Residence has a valid Vacation Rental Registration
Certificate issued prior to the effective date of this ordinance.
Page 6 5
SECTION 2. Severability
A. In interpreting this initiative measure or resolving any ambiguity thereof, the City
Council and all other City entities charged with implementing or enforcing this initiative
measure or any part of it, as well as any reviewing court, shall interpret this initiative
measure in the manner which most vigorously and effectively accomplishes its
purposes and operative provisions.
B. If any portion of this initiative measure is hereafter determined to be invalid by a court
of competent jurisdiction, all remaining portions of this initiative measure shall remain
in full force and effect. Each section, subsection, sentence, phrase, part or portion of
this initiative measure would have been adopted and passed irrespective of the fact
that any one or more sections, subsections, sentences, phrases, parts or portions be
declared invalid or unconstitutional.
Section 3. Implementation
A. On the effective date of this initiative measure as provided by California law (the
"Effective Date"), all provisions this initiative measure are inserted into and become
part of the City of Palm Springs Code.
B. No provision of the City of Palm Springs Code that is inconsistent with this initiative
measure shall be enforced after the Effective Date.
C. Adoption of this initiative measure is essential to the preservation of the quality of life,
property values and the health, safety and general welfare interests of residents and
property owners within the City.
Section 4. Amendment and Repeal
This initiative measure and all of its provisions may be amended or repealed only by a
majority vote of the electorate.
Page 7 J
ATTACHMENT 5
Resolution — Special Municipal Election
56
Attachment 5
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, CALLING AND GIVING
NOTICE OF THE HOLDING OF A SPECIAL MUNICIPAL
ELECTION TO BE HELD ON JUNE 5, 2018, FOR THE
SUBMISSION TO THE VOTERS A QUESTION RELATING
TO THE PROHIBITION OF VACATION RENTAL OF
SINGLE FAMILY RESIDENCES IN THE CITY
WHEREAS, pursuant to authority provided by statute a petition has been filled
with the legislative body of the City of Palm Springs, signed by at least ten (10%)
percent of the voters of the City, according to the last report of registration by the county
elections official to the Secretary of State, to submit a proposed ordinance amending
the Palm Springs Municipal Code to prohibit the vacation rental of single family
residences in the city; and
WHEREAS, the City Clerk's Office, with assistance from the Riverside County
Registrar of Voters examined the records of registration and ascertained that pursuant
to California Elections Code (EC) Section 9215 the petitions are signed by the requisite
number of voters, and has so certified; and
WHEREAS, on January 24, 2018, the City Council accepted, received, and filed
the Certificate of Sufficiency of Initiative Petition for the prohibition of vacation rental of
single family residences in the City and ordered a report on the initiative measure
pursuant to Election Code Section 9212; and
WHEREAS, the City Council has not voted in favor of the adoption of the
foregoing ordinance; and
WHEREAS, the City Council is authorized and directed by statute to submit the
proposed ordinance to the voters.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,
CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS
FOLLOWS:
SECTION 1. That pursuant to the requirements of the laws of the State of
California relating to charter cities, there is called and ordered to be held in the City of
Palm Springs, California, on Tuesday, June 5, 2018, a Special Election for the purpose
of submitting the following proposed question:
57
Resolution No.
Page 2
MEASURE _: PROHIBITION OF VACATION RENTAL OF SINGLE FAMILY
RESIDENCES IN THE CITY OF PALM SPRINGS
Shall the ordinance, prohibiting the vacation rental of Yes
single family residences in the city, be adopted? No
SECTION 2. That the proposed complete text of the ordinance submitted to the
voters is attached hereto as Exhibit A.
SECTION 3. That the vote requirement for the measure to pass is a majority
(50% + 1) of the total number of valid ballots cast and counted.
SECTION 4. The ballots to be used at the election shall be in form and content
as required by law.
SECTION 5. The City Clerk is authorized, instructed and directed to coordinate
with the County of Riverside Registrar of Voters to procure and furnish any and all
official ballots, notices, printed matter and all supplies, equipment and paraphernalia
that may be necessary in order to properly and lawfully conduct the election.
SECTION 6. The polls for the election shall be open at seven o'clock a.m. of the
day of the election and shall remain open continuously from that time until eight o'clock
p.m. of the same day when the polls shall be closed, pursuant to EC Section 10242,
except as provided in EC Section 14401.
SECTION 7. That in all particulars not recited in this Resolution, the election shall
be held and conducted as provided by law for holding municipal elections.
SECTION 8. That notice of the time and place holding the election is given and
the City Clerk is authorized, instructed and directed to give further or additional notice of
the election, in time, form and manner as required by law.
SECTION 9. The City Council authorizes the City Clerk to administer said
election and all reasonable and actual election expenses shall be paid by the City upon
presentation of a properly submitted bill.
SECTION 10. The City Clerk of the City of Palm Springs shall certify to the
and adoption of this resolution and its approval b the City Council and shall
passage P pp Y Y
cause the same to be listed in the records of the City.
58
Resolution No.
Page 3
DAVID H. READY, CITY MANAGER
ATTEST:
ANTHONY J. MEJIA, CITY CLERK
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on the 21st day of February,
2018, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ANTHONY J. MEJIA, CITY CLERK
59
Attachment 5, Exhibit A
ORDINANCE NO.
AN INITIATIVE MEASURE TO BE SUBMITTED DIRECTLY TO THE VOTERS
In accord with applicable California law and Section 803 of the Charter of the City of Palm
Springs, the People of the City of Palm Springs hereby ordain as follows:
SECTION 1: Business Regulations Code Amendment. Sections 5.25.020, 5.25.030
and 5.25.075 of Chapter 5.25 of the Palm Springs Municipal Code are hereby amended
to read in their entirety as set forth below with changes shown in stfikeeu and underline:
A. Section 5.25.020 of Chapter 5.25 of the Palm Springs Municipal Code is hereby
amended in its entirety to read as follows:
"5.25.020 Findings.
The City Council finds and determines as follows:
(a) The primary use of single-family and multi-family 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 Rental and Homesharing are similar in character and use as hotels and
other commercial short term uses and can only be permitted in Single Facer or
multi-family zones if such uses are ancillary and secondary to the multi-family
residential use of property. 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.
(b) The purpose of this Chapter is to establish a regulatory program for short term
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
vaeatmen Fe;tal Vacation Rentals and Homesharing are ancillary and secondary
uses of privately owned multi-family residential dwelling units, including without
limitation Condominium units, 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.
Page 1 60
(c) Limiting Vacation Rental and Homesharing lodging to Single Family privatel
owned multi-family dwelling units, including without limitation Condominium units
subject to the regulations provided in this Chapter and prohibiting Vacation
Rental in rental Apartments and but allowing Homesharing lodging in R-1 Single
Family residences 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 Home Sharing
lodging in privately owned multi-family residential dwelling units and to
Registration Certificates for Homesharing lodging within Single Family residential
neighborhoods and for rental Apartments 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 in RR=1
Single Family residential neighborhoods.
(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."
B. Section 5.25.030 of Chapter 5.25 of the Palm Springs Municipal Code is hereby
amended in its entirety to read as follows:
"5.25.030 Definitions. For purposes ur of this Chapter, the following words and phrases
P P p 9
shall have the meaning respectively ascribed to them by this Section:
"Apartment" means (a) a residential unit subject to rent or lease by the owner of in a
multi-family development structure of two (2) dwelling units where both dwelling units
are rented or leased for occupancy as a residence for individual families, and (b) a
residential unit subject to rent or lease by the owner of in-a multi-family development
structure of three (3) or more dwelling units. A privately owned individual dwelling unit
in a Condominium project or other multi-family development shall not constitute an
"Apartment."
"Applicant" means the Owner.
" Vacation Rental normal) occupied and being heated
Bedroom means an area of a acat y p g
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.
Page 2 S
"Business Entity" means a corporation, partnership, or other legal entity that is not a
natural person or a personal or family trust or a limited liability company consisting
solely of natural persons.
"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.
"Condominium unit" means an individual dwelling unit in a multi-family structure that
is individually owned, where each owner receives a recordable deed to each
individual unit purchased, including the right to sell or mortgage each unit and sharing
in joint ownership of any common grounds and passageways.
"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 am and 10:00 pm.
"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 Marshall,
the Building Official, or one or more of their respective designees.
"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 located
on property zoned R 1 Q R 1 n R 4 nu a G-R-5."
"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
Page 3 62
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 Owners 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 twenty-eight (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.
"Local contact person" means the Owner, a local property manager, or agent of the
Owner, who is available twenty-four hours per day, seven days per week for the
purpose of responding in-person within thirty (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.
"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 a limited liability company and the
members of such company, insofar as the disclosure requirements pursuant to
Section 5.25.085 are satisfied. The term "Owner" does not include a Business Entity.
"Property" means a privately owned multi-family residential legal lot of record,
including without limitation Condominiums, on which a Vacation Rental is located.
"Rental Term" means the period of time a Responsible Person rents or leases a
Vacation Rental.
"Responsible Person" means an occupant of a Vacation Rental who is at least
twenty-five (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.
Page 4
63
"Single Family Residence" means a Single Family dwelling unit located on property
zoned R-1-B. R1-A, R-1-13, R-1-C, R-1-D or R-1-AH or any other R-1 classification."
"Third Quarter" means the entire months of July, August, and September in one
calendar year.
"Vacation Rental" means an Single Family individually rented unit in a multi-family
structure, including without limitation Condominium units, or any portion thereof,
utilized for occupancy for dwelling, lodging, or sleeping purposes without the Owner
being present for a period of twenty-eight (28) consecutive days or less, 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."
C. Section 5.25.075 pf Chapter 5.25 of the Palm Springs Municipal Code is hereby
amended in its entirety to read as follows:
"5.25.075 Specific Prohibitions.
(a) No person or entity shall offer or provide a Single Family Residence or aa-a rental
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, the owner of a Single Family Residence
or the owner of a rental Apartment structure, a-n a rental Apartment manager, or
a representative of the rental Apartment owner or manager, shall evict any tenant
or otherwise terminate a lease for the purpose of converting as a rental
Apartment to a Vacation Rental or in anticipation of converting am a rental
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
owner of a Single Family Residence or an owner of an-a rental Apartment
structure, rental Apartment manager, or representative to recover possession of
the unit. Any attempt to recover possession of a unit in violation of this Ordinance
shall render the rental Apartment structure owner, rental 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
Page 5 64
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 as a rental Apartment or portion thereof
pursuant to a valid vVacation 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 rental Apartments and which may not have
been recouped during the period of Vacation Rental use of the rental 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.
(f) The provisions of Subsection (a) of this Section shall not apply to or be enforced
against any person or entity who rents a Single Family Residence or portion
thereof pursuant to a valid Vacation Registration Certificate issued prior to the
effective date of this ordinance for a period of twenty-four months. 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 the effective date
of this ordinance to be afforded a reasonable opportunity to recoup costs
reasonably invested for Vacation Rental use of Single Family residences and
which may not have been recouped during the period of Vacation Rental use of
the Single Family residence and which cannot be recouped once the Vacation
Rental use is terminated.
(g) The provisions of Subsection (a) of this Section, Subsection 5.25.040(b) [limits
on number of unitsl, shall also not apply for a period of twenty-four months after
the effective date of this ordinance to any Single Family Residence that meets
all requirements of an R-1 occupancy under the City's building and fire code and
for which such Single Family Residence has a valid Vacation Rental Registration
Certificate issued prior to the effective date of this ordinance.
Page 6 65
SECTION 2. Severability
A. In interpreting this initiative measure or resolving any ambiguity thereof, the City
Council and all other City entities charged with implementing or enforcing this initiative
measure or any part of it, as well as any reviewing court, shall interpret this initiative
measure in the manner which most vigorously and effectively accomplishes its
purposes and operative provisions.
B. If any portion of this initiative measure is hereafter determined to be invalid by a court
of competent jurisdiction, all remaining portions of this initiative measure shall remain
in full force and effect. Each section, subsection, sentence, phrase, part or portion of
this initiative measure would have been adopted and passed irrespective of the fact
that any one or more sections, subsections, sentences, phrases, parts or portions be
declared invalid or unconstitutional.
Section 3. Implementation
A. On the effective date of this initiative measure as provided by California law (the
"Effective Date"), all provisions this initiative measure are inserted into and become
part of the City of Palm Springs Code.
B. No provision of the City of Palm Springs Code that is inconsistent with this initiative
measure shall be enforced after the Effective Date.
C. Adoption of this initiative measure is essential to the preservation of the quality of life,
property values and the health, safety and general welfare interests of residents and
property owners within the City.
Section 4. Amendment and Repeal
This initiative measure and all of its provisions may be amended or repealed only by a
majority vote of the electorate.
Page 7 66
ATTACHMENT 6
Resolution — Request to Consolidate with County
67
Attachment 6
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, REQUESTING THE
BOARD OF SUPERVISORS OF THE COUNTY OF
RIVERSIDE TO CONSOLIDATE A SPECIAL MUNICIPAL
ELECTION TO BE HELD ON JUNE 5, 2018, WITH THE
STATEWIDE PRIMARY ELECTION TO BE HELD ON THE
SAME DATE PURSUANT TO SECTION 10403 OF THE
ELECTIONS CODE
WHEREAS, the City Council of the City of Palm Springs called a Special
Municipal Election to be held on June 5, 2018, for the purpose of submitting to the
voters the question relating to the prohibition of vacation rental of single family
residences in the city; and
WHEREAS, it is desirable that the Special Municipal Election be consolidated
with the Statewide Primary Election to be held on the same date and that within the city
the precincts, polling places and election officers of the two elections be the same, and
that the County Election Department of the County of Riverside canvass the returns of
the Special Municipal Election and that the election be held in all respects as if there
were only one election.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,
CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS
FOLLOWS:
SECTION 1. That pursuant to the requirements of California Elections Code (EC)
Section 10403, the Board of Supervisors of the County of Riverside is hereby requested
to consent and agree to order the consolidation of the Special Municipal Election with
the Statewide Primary Election to be held on Tuesday, June 5, 2018 for the purpose of
submitting to the voters a question relating to the prohibition of vacation rental of single
family residences in the city.
SECTION 2. That a measure is to appear on the ballot as follows:
MEASURE _: PROHIBITION OF VACATION RENTAL OF SINGLE FAMILY
RESIDENCES IN THE CITY OF PALM SPRINGS
Shall the ordinance, prohibiting the vacation rental of Yes
single family residences in the city, be adopted? No
68
Resolution No.
Page 2
SECTION 3. That the proposed complete text of the ordinance submitted to the
voters is attached as Exhibit A.
SECTION 4. That the vote requirement for the measure to pass is a majority
(50%+1) of the total number of valid ballots cast and counted.
SECTION 5. That the County Election Department is authorized to canvass the
returns of the Special Municipal Election. The election shall be held in all respects as if
there were only one election, and only one form of the ballot shall be used. The election
will be held and conducted in accordance with the provisions of law regulating statewide
or special election.
SECTION 6. That the Board of Supervisors is requested to issue instructions to
the County Elections Department to take any and all steps necessary for the holding of
the consolidated election.
SECTION 7. That the City of Palm Springs recognizes that additional costs will
be incurred by the County by reason of this consolidation and agrees to reimburse the
County any costs.
Y
SECTION 8. The City Clerk is hereby directed to file a certified copy of this
resolution with the Board of Supervisors and the County Election Department of the
County of Riverside.
SECTION 9. The City Clerk of the City of Palm Springs shall certify to the
passage and adoption of this resolution and its approval by the City Council and shall
cause the same to be listed in the records of the City.
DAVID H. READY, CITY MANAGER
ATTEST:
ANTHONY J. MEJIA, CITY CLERK
69
Resolution No.
Page 3
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on the 21st day of February,
2018, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ANTHONY J. MEJIA, CITY CLERK
70
Attachment 6, Exhibit A
ORDINANCE NO.
AN INITIATIVE MEASURE TO BE SUBMITTED DIRECTLY TO THE VOTERS
In accord with applicable California law and Section 803 of the Charter of the City of Palm
Springs, the People of the City of Palm Springs hereby ordain as follows:
SECTION 1: Business Regulations Code Amendment. Sections 5.25.020, 5.25.030
and 5.25.075 of Chapter 5.25 of the Palm Springs Municipal Code are hereby amended
to read in their entirety as set forth below with changes shown in stfikeeu and underline:
A. Section 5.25.020 of Chapter 5.25 of the Palm Springs Municipal Code is hereby
amended in its entirety to read as follows:
"5.25.020 Findings.
The City Council finds and determines as follows:
(a) The primary use of single-family and multi-family 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 Rental and Homesharing are similar in character and use as hotels and
other commercial short term uses and can only be permitted in Single Family er
multi-family zones if such uses are ancillary and secondary to the multi-family
residential use of property. 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.
(b) The purpose of this Chapter is to establish a regulatory program for short term
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 rental Vacation Rentals and Homesharing are ancillary and secondary
uses of privately owned multi-family residential dwelling units, including without
limitation Condominium units, 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.
Page 1 71
(c) Limiting Vacation Rental and Homesharing lodging to Single ily privately
owned multi-family dwelling units, including without limitation Condominium units
subject to the regulations provided in this Chapter and prohibiting Vacation
Rental in rental Apartments and but allowing Homesharing lodging in R-1 Single
Family residences 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 Home Sharing
lodging in privately owned multi-family residential dwelling units and to
Registration Certificates for Homesharing lodging within Single Family residential
neighborhoods and for rental Apartments 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 in RR=1
Single Family residential neighborhoods.
(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."
B. Section 5.25.030 of Chapter 5.25 of the Palm Springs Municipal Code is hereby
amended in its entirety to read as follows:
"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 subject to rent or lease by the owner of in a
multi-family development structure of two (2) dwelling units where both dwelling units
are rented or leased for occupancy as a residence for individual families, and (b) a
residential unit subject to rent or lease by the owner of in-a multi-family development
structure of three (3) or more dwelling units. A privately owned individual dwelling unit
in a Condominium project or other multi-family development shall not constitute an
"Apartment."
"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.
Page 2 72
"Business Entity" means a corporation, partnership, or other legal entity that is not a
natural person or a personal or family trust or a limited liability company consisting
solely of natural persons.
"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.
"Condominium unit" means an individual dwellinq unit in a multi-family structure that
is individually owned where each owner receives a recordable deed to each
individual unit purchased including the right to sell or mortgage each unit and sharing
in joint ownership of any common grounds and passageways.
"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 am and 10:00 pm.
"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 Marshall,
the Building Official, or one or more of their respective designees.
"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 located
on property zoned R 1 Q R 1 e R 1 AH, e G-R-5."
"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
Page 3 73
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 twenty-eight (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.
"Local contact person" means the Owner, a local property manager, or agent of the
Owner, who is available twenty-four hours per day, seven days per week for the
purpose of responding in-person within thirty (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.
"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 a limited liability company and the
members of such company, insofar as the disclosure requirements pursuant to
Section 5.25.085 are satisfied. The term "Owner" does not include a Business Entity.
"Property" means a privately owned multi-family residential legal lot of record,
including without limitation Condominiums, on which a Vacation Rental is located.
"Rental Term" means the period of time a Responsible Person rents or leases a
Vacation Rental.
"Responsible Person" means an occupant of a Vacation Rental who is at least
twenty-five (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.
Page 4 74
"Single Family Residence" means a Single Family dwelling unit located on property
zoned R-1-13. R1-A, R-1-13, R-1-C, R-1-D or R-1-AH or any other R-1 classification."
"Third Quarter" means the entire months of July, August, and September in one
calendar year.
"Vacation Rental" means an Ci^gle Family individually rented unit in a multi-family
structure, including without limitation Condominium units, or any portion thereof,
utilized for occupancy for dwelling, lodging, or sleeping purposes without the Owner
being present for a period of twenty-eight (28) consecutive days or less, 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."
C. Section 5.25.075 pf Chapter 5.25 of the Palm Springs Municipal Code is hereby
amended in its entirety to read as follows:
"5.25.075 Specific Prohibitions.
(a) 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.
(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, the owner of a Single Family Residence
or the owner of a rental Apartment structure, an a rental Apartment manager, or
a representative of the rental Apartment owner or manager, shall evict any tenant
or otherwise terminate a lease for the purpose of converting an a rental
Apartment to a Vacation Rental or in anticipation of converting an a rental
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
owner of a Single Family Residence or an owner of an-a rental Apartment
structure, rental Apartment manager, or representative to recover possession of
the unit. Any attempt to recover possession of a unit in violation of this Ordinance
shall render the rental Apartment structure owner, rental 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
Page 5 75
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 a-n a rental Apartment or portion thereof
pursuant to a valid Wacation 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 rental Apartments and which may not have
been recouped during the period of Vacation Rental use of the rental 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.
(f) The provisions of Subsection (a) of this Section shall not apply to or be enforced
against any person or entity who rents a Single Family Residence or portion
thereof pursuant to a valid Vacation Registration Certificate issued prior to the
effective date of this ordinance for a period of twenty-four months. 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 the effective date
of this ordinance to be afforded a reasonable opportunity to recoup costs
reasonably invested for Vacation Rental use of Single Family residences and
which may not have been recouped during the period of Vacation Rental use of
the Single Family residence and which cannot be recouped once the Vacation
Rental use is terminated.
(g) The provisions of Subsection (a) of this Section, Subsection 5.25.040(b) [limits
on number of unitsl, shall also not apply for a period of twenty-four months after
the effective date of this ordinance to any Single Family Residence that meets
all requirements of an R-1 occupancy under the City's building and fire code and
for which such Single Family Residence has a valid Vacation Rental Registration
Certificate issued prior to the effective date of this ordinance.
Page 6 76
SECTION 2. Severability
A. In interpreting this initiative measure or resolving any ambiguity thereof, the City
Council and all other City entities charged with implementing or enforcing this initiative
measure or any part of it, as well as any reviewing court, shall interpret this initiative
measure in the manner which most vigorously and effectively accomplishes its
purposes and operative provisions.
B. If any portion of this initiative measure is hereafter determined to be invalid by a court
of competent jurisdiction, all remaining portions of this initiative measure shall remain
in full force and effect. Each section, subsection, sentence, phrase, part or portion of
this initiative measure would have been adopted and passed irrespective of the fact
that any one or more sections, subsections, sentences, phrases, parts or portions be
declared invalid or unconstitutional.
Section 3. Implementation
A. On the effective date of this initiative measure as provided by California law (the
"Effective Date"), all provisions this initiative measure are inserted into and become
part of the City of Palm Springs Code.
B. No provision of the City of Palm Springs Code that is inconsistent with this initiative
measure shall be enforced after the Effective Date.
C. Adoption of this initiative measure is essential to the preservation of the quality of life,
property values and the health, safety and general welfare interests of residents and
property owners within the City.
Section 4. Amendment and Repeal
This initiative measure and all of its provisions may be amended or repealed only by a
majority vote of the electorate.
Page 7 77
ATTACHMENT 7
Resolution — Priority for Arguments and
Impartial Analysis
78
Attachment 7
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, AUTHORIZING WRITTEN
ARGUMENTS FOR OR AGAINST THE PROPOSED
ORDINANCE TO PROHIBIT THE VACATION RENTAL OF
SINGLE FAMILY RESIDENCES IN THE CITY; SETTING
PRIORITIES FOR FILING WRITTEN ARGUMENTS
REGARDING THE MEASURE AND, DIRECTING THE CITY
ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS
WHEREAS, a Special Municipal Election is to be held in the City of Palm
Springs, California, on June 5, 2018, at which time there will be submitted to the voters
the following proposed measure:
MEASURE _: PROHIBITION OF VACATION RENTAL OF SINGLE FAMILY
RESIDENCES IN THE CITY OF PALM SPRINGS
Shall the ordinance, prohibiting the vacation rental of Yes
single family residences in the city, be adopted? No
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,
CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS
FOLLOWS:
SECTION 1. That the City Council affirms for measures placed on the ballot by
petition, the persons filing an initiative petition, pursuant to California Elections Code
(EC) Section 9282(a) may file a written argument in favor of the ordinance, not
exceeding 300 words, and the legislative body may submit an argument against the
ordinance.
SECTION 2. That the City Council authorizes the following member(s) of its
body:
(Mayor Against)
(Mayor Pro Tern Against)
(Council Member Against)
(Council Member Against)
(Council Member Against)
to file a written argument Against Measure as specified above not exceeding 300 words,
accompanied by the printed name(s) and signature(s) of the author(s) submitting it, in
accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of
California. The arguments may be changed or withdrawn until and including March 5,
2018, 6:00 p.m., the date fixed by the City Clerk after which no arguments for or against
79
Resolution No.
Page 2
the measure may be submitted to the City Clerk. A primary argument may not be signed
by more than five (5) authors.
The arguments shall be filed with the City Clerk, signed, with the printed name(s)
and signature(s) of the author(s) submitting it, or if submitted on behalf of an
organization, the name of the organization, and the printed name and signature of at
least one of its principal officers who is the author of the argument. The arguments shall
be accompanied by the "Form of Statement to be Filed by Author(s) of Argument."
SECTION 3. That the City Council directs the City Clerk to transmit a copy of the
measure to the City Attorney, unless the organization or salaries of the Office of the City
Attorney are affected.
a. The City Attorney shall prepare an impartial analysis of the measure not
exceeding five hundred (500) words showing the effect of the measure on the
existing law and the operation of the measure. If the measure affects the
organization or salaries of the Office of the City Attorney, the City Clerk shall
prepare the impartial analysis.
b. The analysis shall include a statement indicating whether the measure was
placed on the ballot by a petition signed by the requisite number of voters or by
the governing body of the City.
c. In the event the entire text of the measure is not printed on the ballot, nor in
the voter information portion of the sample ballot, there shall be printed
immediately below the impartial analysis, in no less than 10-point type, the
following: "The above statement is an impartial analysis of Ordinance or
Measure _. If you desire a copy of the ordinance or measure, please call the
election official's office at (760) 323-8204 and a copy will be mailed at no cost
to you."
d. The impartial analysis shall be filed by March 5, 2018, 6:00 p.m., the date set
by the City Clerk for the filing of primary arguments
SECTION 4. The City Clerk of the City of Palm Springs shall certify to the
passage and adoption of this resolution and its approval by the City Council and shall
cause the same to be listed in the records of the City.
DAVID H. READY, CITY MANAGER
ATTEST:
ANTHONY J. MEJIA, CITY CLERK
80
Resolution No.
Page 3
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on the 21st day of February,
2018, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ANTHONY J. MEJIA, CITY CLERK
ATTACHMENT 8
Resolution — Rebuttal Arguments
82
Attachment 8
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, PROVIDING FOR THE
FILING OF REBUTTAL ARGUMENTS FOR CITY
MEASURES SUBMITTED AT MUNICIPAL ELECTIONS
WHEREAS, a Special Municipal Election is to be held in the City of Palm
Springs, California, on June 5, 2018, at which time there will be submitted to the voters
the following measure:
MEASURE _: PROHIBITION OF VACATION RENTAL OF SINGLE FAMILY
RESIDENCES IN THE CITY OF PALM SPRINGS
Shall the ordinance, prohibiting the vacation rental of Yes
single family residences in the city, be adopted? No
WHEREAS, Section 9285 of the Elections Code of the State of California
authorizes the City Council, by majority vote, to adopt provisions to provide for the filing
of rebuttal arguments for City measures submitted at municipal elections.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,
CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS
FOLLOWS:
SECTION 1. That pursuant to Sections 9285 of the Elections Code of the State
of California, when the Elections Official has selected the arguments for and against the
measure which will be printed and distributed to the voters, the Elections Official shall
send a copy of an argument in favor of the proposition to the authors of any argument
against the measure and a copy of an argument against the measure to the authors of
any argument in favor of the measure immediately upon receiving the arguments.
The author or a majority of the authors of an argument relating to a city measure
may prepare and submit a rebuttal argument not exceeding 250 words or may authorize
in writing any other person or persons to prepare, submit, or sign the rebuttal argument.
A rebuttal argument may not be signed by more than five authors.
The rebuttal arguments shall be filed with the City Clerk, signed, with the printed
name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an
organization, the name of the organization, and the printed name and signature of at
least one of its principal officers, not more than 10 days after the final date for filing
direct arguments. The rebuttal arguments shall be accompanied by a "Form of
Statement to be Filed by Author(s) of Argument."
83
Resolution No.
Page 2
Rebuttal arguments shall be printed in the same manner as the direct arguments.
Each rebuttal argument shall immediately follow the direct argument which it seeks to
rebut.
SECTION 2. That all previous resolutions providing for the filing of rebuttal
arguments for city measures are repealed.
SECTION 3. That the provisions of Section 1 shall apply only to the election to be
held on June 5, 2018, and shall then be repealed.
SECTION 4. The City Clerk of the City of Palm Springs shall certify to the
passage and adoption of this resolution and its approval by the City Council and shall
cause the same to be listed in the records of the City.
DAVID H. READY, CITY MANAGER
ATTEST:
ANTHONY J. MEJIA, CITY CLERK
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on the 21st day of February,
2018, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ANTHONY J. MEJIA, CITY CLERK
84
ATTACHMENT 9
Resolution — Budget Amendment
85
Attachment 9
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET
FOR FISCAL YEAR 2017-18.
WHEREAS, Resolution No. 24238 approving the Budget for the Fiscal Year
2017-2018 was adopted on June 7, 2017; and
WHEREAS the City Manager has recommended, and the City Council desires to
approve, certain amendments to said budget.
NOW THEREFORE THE CITY COUNCIL DETERMINES, RESOLVES AND
APPROVES AS FOLLOWS: that the Director of Finance is authorized to record
inter-fund cash transfers as required in accordance with this Resolution, and Resolution
No. 24238, adopting the Budget for Fiscal Year 2017-18 is hereby amended as follows:
SECTION 1. ADDITIONS
Fund ctivity Account Amount
001 1150 43860 $40,000
Purpose: Special Municipal Election consolidated with Statewide Primary Election of
June 5, 2018 for submission of a citizens' initiative relating to the prohibition of vacation
rental of single family residences in the city.
SECTION 2. SOURCE
Fund Activit Account Amount
001 Fund Balance 29301 $40,000
Reserve
DAVID H. READY, CITY MANAGER
ATTEST:
ANTHONY J. MEJIA, CITY CLERK
86
Resolution No.
Page 2
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on the 215t day of February,
2018, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ANTHONY J. MEJIA, CITY CLERK
87
ATTACHMENT 10
Correspondence
88
i
AGUA CALIENTE BAND OF CAHUILLA INDIW
PLANNING & DEVELOPMENT DEPARTMENT
CONSTRUCTION DIVISION • ECONOMIC DEVELOPMENT DIVISION
PLANNING & NATURAL RESOURCES DIVISION • TRIBAL HISTORIC PRESERVATION OFFICE
Attachment 10
February 6, 2018
HAND DELIVERED
David Ready, City Manager
CITY OF PALM SPRINGS
3200 Tahquitz Canyon Way
Palm Springs, California 92262
RE: Initiative to ban vacation rentals in the City of Palm Springs
Dear Mr. Ready,
The Tribal Council of the Agua Caliente Band of Cahuilla Indians reviewed the above
referenced Initiative at its meeting on February 6, 2018 and strongly objects to a
complete ban on vacation rentals, which includes Allotted Trust land.
The Tribe is concerned that this ban is an onerous and unnecessary restriction of the
use of Allotted Trust land that will further restrict allottees from achieving "highest and
best use" of their trust land. The complete prohibition of vacation rentals in R1 zones is
an extreme action that will likely only serve to drive this activity "underground".
Please contact me should you have any questions at 760-699-6960.
R actfly submitted,
Th as . Davis, AICP
Chi f Planning & Development Officer
AGUA CALIENTE BAND
OF CAHUILLA INDIANS
C: Tribal Council
John Plata
5401 DINAR SHORE DRIVE, PALM SPRINGS, CA 92264 P9
760/699/6800 • AGUACALIENTE-NSN.GOV ff
Cindy Berardi
From: Anthony Mejia
Sent: Tuesday, February 20, 2018 8:48 AM
To: Cindy Berardi
Subject: FW:Vacation Rentals Election UPDATED
From: Mr K. 'Buck'Catterlin [mailto:KennCatterlin@hotmail.com]
Sent:Sunday, February 18, 2018 4:34 PM
To:Anthony Mejia <Anthony.Melia@palmspringsca.gov>
Cc: Robert Moon<Robert.Moon @palmspringsca.gov>; Geoff Kors<Geoff.Kors@palmspringsca.gov>;JR Roberts
<JR.Roberts@ pal mspringsca.gov>; Christy Holstege<Christy.Holstege@palmspringsca.gov>; Lisa Middleton
<Lisa.Middleton @ palmspringsca.gov>
Subject: Re:Vacation Rentals Election UPDATED
February 18, 2018
Robert Moon, Mayor
J. R. Roberts, Mayor Pro Tern
Christy Gilbert Holstege, Councilmember
Geoff Kors, Councilmember
Lisa Middleton, Councilmember
Anthony J. Mejia, MMC, City Clerk
RE: FEBRUARY 21, 2018 PALM SPRINGS CITY COUNCIL REGULAR MEETING ITEM
5B:
RECEIVE AND FILE AN IMPACT ANALYSIS REPORT AND PROVIDE
DIRECTION RELATING TO A CITIZENS' INITIATIVE FOR THE PROHIBITION
OF VACATION RENTAL OF SINGLE FAMILY RESIDENCES IN THE CITY—
UPDATE ON VACATION RENTAL ORDINANCE ENFORCEMENT:
RECOMMENDATION:
I have learned that what election you have the option of placing the vote for this issue on the ballot is
not the two that I had though. However, my basic belief remains the same. Regardless of the timing
of the election, the one that is expected to draw the largest voter turnout should be the one that an
item of this importance must be placed on. Even if that means waiting until November 2019.
Sincerely,
Kenneth A Catterlin
From: Mr K. 'Buck' Catterlin <KennCatterlin@hotmail.com>
Sent:Saturday, February 17, 2018 1:11 PM
To: anthony.melia@palmspringsca.gov
Cc: Robert.Moon@palmspringsca.gov; Geoff.Kors@paImspringsca.gov;JR.Roberts@palmspringsca.gov;
Christy.Holstege@palmspringsca.gov; Lisa.Middleton@paImspringsca.gov
Subject:Vacation Rentals Election
February 17, 2o18
Robert Moon, Mayor
J. R. Roberts, Mayor Pro Tern
Christy Gilbert Holstege, Councilmember
Geoff Kors, Councilmember
Lisa Middleton, Councilmember
Anthony J. Mejia, MMC, City Clerk
RE: FEBRUARY 21, 2o18 PALM SPRINGS CITY COUNCIL REGULAR MEETING ITEM
5B:
RECEIVE AND FILE AN IMPACT ANALYSIS REPORT AND PROVIDE
DIRECTION RELATING TO A CITIZENS' INITIATIVE FOR THE PROHIBITION
OF VACATION RENTAL OF SINGLE FAMILY RESIDENCES IN THE CITY—
UPDATE ON VACATION RENTAL ORDINANCE ENFORCEMENT:
RECOMMENDATION:
I find it unfortunate that this issue has been taken out of the hands of our leaders, however since we
find ourselves facing the decision of either capitulating to the will of a minority of disgruntled
individuals whose proposal would reverse decades of Palm Springs history of hospitality for a diverse
range of visitor needs by eliminating one of those choices, or taking the question to the voters. Taking
the question to the voters is your only choice.
This leaves the question of when, at what election,you should bring the question forward. I strongly
believe that the election which will have the highest number of Palm Springs voters, the next General
Election is the best choice. The known fact of the significantly lower voter turnout for a Municipal
election vs a General Election requires a question of this importance to be placed in-front of the
largest possible turnout.
Again, it is unfortunate we are in this position,but since we are, let ALL the people decide in the next
General Election.
Sincerely,
Kenneth A Catterlin
2
nn It(5i
eigh 0of Ii d
10 Box 1192,palm Springs,CA 92263-1192
February 20, 2018
Office of City Clerk
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
CC: Mr. Edward Kotkin, City Attorney
Dear Anthony J. Mejia,
RE: February 21 City Council Staff Report (Titled: Receive and file an impact analysis report and provide direction
relating to a citizens' iniative for the prohibition of vacation rental of single fmaily residences in the city - Update on
vacation rental ordinance enforcement)
While reviewing the above report we have a concern related to the wording in Attachments 5-8 (Resolutions.)
Your reccomented wording for the ballot is:
MEASURE,_,,.: PROHIINTION OF VACATION RENTAL OF MNOLE FAMILY
RESIDENCES IN THE CITY OF PALM SP'RING9
S-iall to ordnance, prahlbN n9 she vacation rental of Yas
sinq`e family revidencws in the chy, be adopted? Nn
Our concern is that this wording may be confusing to the voter and not completly accurate because:
1. It leads the voter to think that the prohibition is thoughout the city and not just in R1 residential areas.
2. It does not specify that the prohibition is for rentals less than 28 days.
Could you please consider rewording this section to give a clearer picture to the voter? Perhaps someting more to the
line of:
"Shall the ordinance, prohibiting the vacation rental of any R-1 single family residence in the City for fewer than
28 consecutive days be adopted"
We believe that the City Attorney has up to 90 words that he can use to describe the issue being voted on. The additon
of the few words as stated above would make the measure wording clearer and more accurate.
Thank you in advance for your time and assistance in this matter.
Sincerely yours,
/ 61J7�tZ1lZ
Rob Grimm, PSN4N Campaign Manager - (760) 464-1724 or RobGrimm@psn4n.org
PAGE 1 OF 1
The Desert Housing Report ` . :21111h,
PS RAR �.�..�.�.. .�.�
REALTORV
The Trusted Source tar Res#Esum
In the Desert Communities
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% $85,000 164.7% $295,000 -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 -14.4% $245,000 65.3% $682,020 A0.6%
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%
0 Palm Springs $225,000 $218,500 3.0% $150,000 50.0% $350,000 -35.7% 3
Cathedral City $153,000 $152,500 0.3% $107,500 42.3% $270,500 A3.4% 3
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% -0 -
City of Coachella N/A N/A NIA NIA NIA N/A N/A co ? p
u) G0
En �
12 Month Change in City Median Prices o
e � 0 3 N chi
Year over year changes in detached median home prices of the nine major cities remain remarkably strong. Only La Quinta 3 N
CD
Q� 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 o :3No >
Springs continues to lead in month over month price changes, being up 21.6%. The attached market continues to show o >
(it 00
marginal price increases. The two largest condo cities- Palm Desert and Palm Springs -show increases of 4.9% and 3.0% �.
p respectively. CD
Produced for Valley agents through the sponsorship and cooperation of PSRAR and CDAR by Market Watch LLC a
02018 CDAR&PSRAR. All rights reserved. Use and distribution by members only.
Shari Wrona
From: Boris Stark
Sent: Wednesday, February 21, 2018 3:57 PM
To: David Ready
Cc: Shari Wrona; Cindy Cairns;Jay Virata; Suzanne Severin
Subject: Ballot Measure - Affected Properties
David per our conversation please see below. The highlighted properties would be affected by the ballot initiative,
which would result is ban of 86.3% registered properties. I ran this by Jay as well.
2018
SFR 1525 82.1%
CONDO 254 13.7% INCLUDES REDUCTION OF 33%
APT 17 0.9% PHASED OUT AT END OF 2018
HOMESHARE 62 3.3%
TOTAL 1858 100.0%
Total
Ban 86.3%
Warmest Regards,
Boris Stark Vacation Rental Compliance Official
yPP�h1 S��
Department of Vacation Rental Compliance I Office of the City Manager
e Email: boris.stark@palmspringsca.aov I Office: 760.322.8370 1 Fax: 760.322.8317
M 425 N. Civic Drive, Palm Springs, CA 92262
�1rro+�
Vacation Rental Compliance Department is open 8 am—6 pm Monday through Thursday, and closed on
Fridays
Cindy Berardi
From: Anthony Mejia
Sent: Tuesday, February 20, 2018 8:48 AM
To: Cindy Berardi
Subject: FW:Vacation Rentals Election UPDATED
From: Mr K. 'Buck' Catterlin [mailto:KennCatterlin@hotmail.comj
Sent:Sunday, February 18, 2018 4:34 PM
To:Anthony Mejia <Anthony.Melia@palmspringsca.gov>
Cc: Robert Moon <Robert.Moon@palmspringsca.gov>; Geoff Kars<Geoff.Kors@palmspringsca.gov>;JR Roberts
<JR.Roberts@palmspringsca.gov>; Christy Holstege<Christy.Holstege@palmspringsca.gov>; Lisa Middleton
<Lisa.Middleton @pa lmspringsca.gov>
Subject: Re: Vacation Rentals Election UPDATED
February 18, 2018
Robert Moon, Mayor
J. R. Roberts, Mayor Pro Tem
Christy Gilbert Holstege, Councilmember
Geoff Kors, Councilmember
Lisa Middleton, Councilmember
Anthony J. Mejia, MMC, City Clerk
RE: FEBRUARY 21, 2o18 PALM SPRINGS CITY COUNCIL REGULAR MEETING ITEM
5B:
RECEIVE AND FILE AN IMPACT ANALYSIS REPORT AND PROVIDE
DIRECTION RELATING TO A CITIZENS' INITIATIVE FOR THE PROHIBITION
OF VACATION RENTAL OF SINGLE FAMILY RESIDENCES IN THE CITY—
UPDATE ON VACATION RENTAL ORDINANCE ENFORCEMENT:
RECOMMENDATION:
I have learned that what election you have the option of placing the vote for this issue on the ballot is
not the two that I had though. However, my basic belief remains the same. Regardless of the timing
of the election, the one that is expected to draw the largest voter turnout should be the one that an
item of this importance must be placed on. Even if that means waiting until November 2019.
Sincerely,
Kenneth A Catterlin
From: Mr K. 'Buck'Catterlin<KennCatterlin@hotmail.com>
Sent:Saturday, February 17, 2018 1:11 PM
To: anthony.melia@palmspringsca.gov
Cc: Robert.Moon@palmspringsca.gov; Geoff.Kors@palmspringsca.gov;JR.Roberts@palmspringsca.gov;
Christy.Holstege@palmspringsca.gov; Lisa.Middleton @ pa lmspringsca.gov
Subject:Vacation Rentals Election
February 17, 2018
Robert Moon, Mayor
J. R. Roberts, Mayor Pro Tem
Christy Gilbert Holstege, Councilmember
Geoff Kors, Councilmember
Lisa Middleton, Councilmember
Anthony J. Mejia, MMC, City Clerk
RE: FEBRUARY 21, 2018 PALM SPRINGS CITY COUNCIL REGULAR MEETING ITEM
5B:
RECEIVE AND FILE AN IMPACT ANALYSIS REPORT AND PROVIDE
DIRECTION RELATING TO A CITIZENS'INITIATIVE FOR THE PROHIBITION
OF VACATION RENTAL OF SINGLE FAMILY RESIDENCES IN THE CITY—
UPDATE ON VACATION RENTAL ORDINANCE ENFORCEMENT:
RECOMMENDATION:
I find it unfortunate that this issue has been taken out of the hands of our leaders, however since we
find ourselves facing the decision of either capitulating to the will of a minority of disgruntled
individuals whose proposal would reverse decades of Palm Springs history of hospitality for a diverse
range of visitor needs by eliminating one of those choices, or taking the question to the voters. Taking
the question to the voters is your only choice.
This leaves the question of when, at what election, you should bring the question forward. I strongly
believe that the election which will have the highest number of Palm Springs voters, the next General
Election is the best choice. The known fact of the significantly lower voter turnout for a Municipal
election vs a General Election requires a question of this importance to be placed in-front of the
largest possible turnout.
Again, it is unfortunate we are in this position,but since we are, let ALL the people decide in the neat
General Election.
Sincerely,
Kenneth A Catterlin
2
nmingrr,naa
net or s4
neidHor ood,
PO Sox 1192,Mm Springs,CA 92263-1192
February 20, 2018
Office of City Clerk
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
CC: Mr. Edward Kotkin, City Attorney
Dear Anthony J. Mejia,
RE: February 21 City Council Staff Report (Titled: Receive and file an impact analysis report and provide direction
relating to a citizens' iniative for the prohibition of vacation rental of single fmaily residences in the city - Update on
vacation rental ordinance enforcement)
While reviewing the above report we have a concern related to the wording in Attachments 5-8 (Resolutions.)
Your reccomented wording for the ballot is:
MEASURE_: PROH181TION OF VACATION RENTAL OF SINGLE FAMILY
RESIDENCES IN THE CITY OF PALM SPRINGS
Saiall to ordnance,prohbd:rg Im vacation rental of Yes
single family residlenm in the cky, be adopted? Ni
Our concern is that this wording may be confusing to the voter and not completly accurate because:
1. It leads the voter to think that the prohibition is thoughout the city and not just in R1 residential areas.
2. It does not specify that the prohibition is for rentals less than 28 days.
Could you please consider rewording this section to give a clearer picture to the voter? Perhaps someting more to the
line of:
"Shall the ordinance, prohibiting the vacation rental of any R-1 single family residence in the City for fewer than
28 consecutive days be adopted"
We believe that the City Attorney has up to 90 words that he can use to describe the issue being voted on. The additon
of the few words as stated above would make the measure wording clearer and more accurate.
Thank you in advance for your time and assistance in this matter.
Sincerely yours,
2�C�7`IiiLhL '
Rob Grimm, PSN4N Campaign Manager- (760) 464-1724 or RobGrimm@psn4n.org
PAGE 1 OF 1