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HomeMy WebLinkAbout1/24/2018 - STAFF REPORTS - 4.B. *O�P A LM sp4 iy � a V N • M • , •rto ,% • CITY COUNCIL STAFF REPORT Cq</FOR�,P DATE: January 24, 2018 NEW BUSINESS SUBJECT: CITIZENS' INITIATIVE FOR THE PROHIBITION OF VACATION RENTAL OF SINGLE FAMILY RESIDENCES IN THE CITY — SUFFICIENCY OF PETITIONS 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 the Certificate of Sufficiency of Initiative Petition for the prohibition of vacation rental of single family residences within the City. Due to the unknown impacts of the proposed ordinance, staff is recommending that the City Council direct staff to prepare a report on the impacts of the ordinance and to present the report within 30 days, as provided under California Elections Code (EC) Section 9212. Furthermore, staff is seeking direction from the City Council as to whether the City Council desires for staff to bring forward resolutions calling for a standalone Special Election (either all-mail ballot or polling places) or for the consolidation with the Statewide Primary Election to be held on June 5, 2018. RECOMMENDATION: 1. Receive, file, and accept the Certificate of Sufficiency of Initiative Petition for the prohibition of vacation rental of single family residences in the City. 2. Order a report on the initiative measure pursuant to California Elections Code Section 9212 to be presented to the City Council no later than February 23, 2018. 3. Provide direction to staff as to whether to bring forward resolutions calling for a standalone Special Municipal Election or for the consolidation with the Statewide Primary Election. BACKGROUND: On May 17, 2017, Stephen M. Rose and Walter"Hugh"Vance (Proponents)filed a "Notice of Intent to Circulate Petition"for the purpose pf prohibiting vacation rental of single family residences in the City (Attachment 1). In accordance with EC Section 9203, the City Attorney prepared a Ballot Title and Summary (Attachment 2). On June 12, 2017, the Proponents filed proof of publication of a "Notice of Intent to Circulate Petition" with the City Clerk's Office. The Proponents had 180 days from receipt of the Ballot Title and Summary to circulate the petition and obtain the requisite amount of signatures. ITEM NO.� - 5 % City Council Staff Report January 24, 2018-- Page 2 Certificate of Sufficiency— Initiative Measure on Vacation Rentals Pursuant to EC Section 9215, to qualify the petition for the next regular municipal election, the Proponents needed to obtain a minimum of 10% (2,524) of the voters' signatures of the City. Pursuant to EC Section 9214, to qualify the petition for a special municipal election, the Proponents needed to obtain a minimum of 15% (3,786) of the voters' signatures of the City. On November 20, 2017, the Proponents submitted their petitions and the City Clerk's Office conducted a prima facie review of submitted petitions. In accordance with EC Section 9210(b), it was determined that said petition contained 5,320 signatures; therefore, said petition was accepted. Pursuant to EC Section 9114, the City Clerk has 30 days; excluding Saturdays, Sundays, and holidays, in which to verify signatures on the initiative petition. The signatures on said petition are to be verified and/or rejected as to whether or not the signers are registered voters within city limits based on Affidavits of Registration on file with the County of Riverside Registrar of Voters (ROV). On November 21, 2017, the City Clerk's Office transmitted the petitions to the ROV to verify the signatures on the initiative petition. On January 3, 2018, the ROV advised that a sufficient number of signatures were submitted to qualify the initiative petition for a special election (Attachment 3). Pursuant to EC Section 9214, upon certification of sufficiency of signatures, the City Council must either: Option 1: 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. Option 2: Pursuant to EC Section 1405(a), submit the initiative measure, without alteration, to the voters at a standalone or all-mail ballot Special Municipal Election to be held on a Tuesday during April 22-May 7, 2018; and direct the City Clerk to cause publication of the entire text of the proposed ordinance in the sample ballot. Option 3: Pursuant to EC Section 1405(a)(1), submit the initiative measure, without alteration, to the voters at the Statewide Primary Election to be held on June 5, 2018, and direct the City Clerk to cause publication of the entire text of the proposed ordinance in the sample ballot. Option 4: Pursuant to EC Section 9212, order a report analyzing the impact of the initiative measure. Staff must present the report no later than 30 days after it is ordered by the City Council. When the report is presented to the City Council, the City Council shall either adopt the ordinance within 10 days or submit the initiative measure to the voters. Q L City Council Staff Report January 24, 2018 -- Page 3 Certificate of Sufficiency— Initiative Measure on Vacation Rentals FISCAL IMPACT: Should the City Council choose to submit the initiative measure to the voters at the Statewide Primary Election and consolidate said election with the County of Riverside it is estimated to cost $19,000429,000 to add the initiative measure to the ballot. Should the City Council desire to submit the initiative measure to the voters at a standalone Special Municipal Election, it is estimated to cost $68,000-$78,000 for an all-mail ballot election or $99,000-$109,000 for a polling place election. There are insufficient funds budgeted for a special election in the adopted Fiscal Year 2017-18 Budget. At the time of calling the election, the City Council will be requested to provide supplemental funding. K� I 4Z6 k_AfithonyJ. M jia, Edward Kotkin City Clerk City Attorney David H. Ready, Esq., Ph.D City Manager Attachments: 1. Notice of Intent to Circulate Petition 2. Ballot Title and Summary Prepared by the City Attorney 3. Certificate of Sufficiency of Initiative Petition 03 This page is intentionally blank 04 ATTACHMENT I Notice of Intent to Circulate Petition 05 1 Attachment 1 NOTICE OF INTENT TO CIRCULATE PETITION Notice is hereby given by the persons whose names appear hereon of their intention to circulate a petition within the City of Palm Springs forthe purpose of submitting an initiative measure to a vote of the people. A statement of the reasons of the proposed action as contemplated in the petition is as follows: This initiative is intended to stop the proliferation of commercial short-term vacation rentals in R-1 single family residential neighborhoods in the City of Palm Springs. Single-family residential neighborhoods are the heart and soul of any city. Our General Plan and our Municipal Code explicitly require our city officials to protect R- 1 neighborhoods from the encroachment of commercial uses. The permanent residents of a city are the stabilizing force that keeps a city going in good times and bad times. Without stable, healthy residential neighborhoods, a city is doomed. Palm Springs is a year-round city with 45,000 full-time residents who live real lives of value. We cannot, by law, live in a storefront on Palm Canyon. We cannot set up a home in a warehouse in an industrial zone. Why should we be compelled to tolerate commercial hotel and resort uses in our own backyards? Quaint 'mom and pop' vacation rentals of 1971 bear little resemblance to the product with the same name in 2017. One or two residents occupy most homes in Palm Springs, regardless of the size of the home. Vacation rentals can inject groups of 12 or more partying tourists next door to family housing. That is an intolerable situation. A block that has been overrun with vacation rentals is no longer a neighborhood, it is a commercial enterprise zone consisting of unsupervised hotels. People come,drop their bags, vacation, pack and leave. A cleaning crew follows them and then the next client comes. Turnover is the watchword. Make no mistake - tourism is important industry in Palm Springs, and we cherish it The residents support their airport, convention center, and downtown, all designed to cater to this important industry. We support our hospitality industry indirectly through our taxes and directly by patronizing restaurants, hotels and spas. We roll out the red carpet for visitors throughout the city, but they do not have a right to our single-family neighborhoodsl The overheated, under-regulated state of the short-term vacation business has happened for many reasons, not the least of which is the explosive growth of the Intemet-based'sharing economy.' No city was able to anticipate the effect that this product would have on neighborhoods. But, while elected officials from many tourist-oriented towns acted decisively to protect their residents,our elected officials chose instead to coddle and capitulate to the vacation rental industry. We are the outliers; Palm Springs has more short-term vacation rentals in R1 neighborhoods per capita than any city in the United States. Profit and tax revenue have been placed before people in our city. This initiative repeals City codes that allow short term vacation rentals in R-1 zones. It continues to allow home sharing in all residential zones and home sharing and short term vacation rentals in multi-family zones. It gives the voters of Palm Springs a direct voice in the future of our neighborhoods. Let us end the madness and restore our historic single-family neighborhoods to their rightful and intended purpose. Proponents: �-- -wit ,' . ,ram Stephen M. Rose Walter'Hugh"Varlbe 1195 East Sunny Dunes Road 266 East Palo Verde Palm Springs, CA 92265 Palm Springs, CA 92264 Dated: May 17, 2017 Dated: May 17, 2017 fVWY1 rv%" JQM" 4 07 THE FULL TEXT OF THE INITIATIVE MEASURE IS SET FORTH BELOW (Amendments to provisions of the Palm Springs Municipal Code are shown in underline) 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, _J 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 strtkeeut and underline : A. Section 6.26.020 of Chapter 5.25 of the Palm Springs Municipal Code is hereby amended in its entirety to read as follows: 45.25.020 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 multi- family 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 Simla Family-ef 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 Famml City. y and rental Apartment residential property in the (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 vasaben Fental_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. 09M.a003/377ns.1 08 (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 wW 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 R-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- tructure 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 "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. om bomrmel 09 "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-fames 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-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 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, OM9.0003077M.1 10 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. "Single Family Residence" means a Single Family dwelling unit located on pro e�rty 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." oM OM77 za 1 11 "Third Quarter"means the entire months of July, August, and September in one calendar year. "Vacation Rental"means an Sip9le 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 5.25.076 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 are a rental Apartment to a Vacation rental or in anticipation of converting are 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 prevailing party in an action for wrongful eviction shall recover costs and reasonable attorneys' fees. 0 M.0003017MA 12 (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 renill 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. Cf) The provisions of Subsection ( of this Section shall_.not_app 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 fora Rgriod of twen four months The Eur op_se RWdaferral of the enforcement the provisions of this Section is for Q2rsorks or entities issued valid vacation registration certificates prior to the effective date of Rs ordinance to be afforded a reasonable opPortunkto 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 recou end 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 units], shall also,not apply for a period of twenty-four months afterthe effective date of this ordinance to any Single Family Residence that meets all regwirements 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. Severabillty 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. ; 3 OSM.OWM77 .�zs 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 ReLeal This initiative measure and all of its provisions may be amended or repealed only by a majority vote of the electorate. o .OWM7rM.1 14 ATTACHMENT 2 Ballot Title and Summary Prepared by the City Attorney .15 A Attachment 2 BALLOT TITLE AN INITIATIVE MEASURE PROHIBITING THE VACATION RENTAL OF SINGLE FAMILY RESIDENCES IN THE CITY BALLOT 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(1) prohibits the vacation rental of apartments,in the City,effective January 1, 2019, (11)neither prohibits nor allows the vacation rental of condominiums as a separate category of residence, (111) 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 "condominium" and "single family residence." 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-1-1), R-1AH, 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 voters of the City at a special or general election. CERTIFICATION This ballot title and summary are hereby submitted to the elections official in conformance with California Elections Code Section 9203. Dated: May 30,2017 Edward Katkin City Attorney Attest: Kathleen Hart Interim City Clerk ! 6 ATTACHMENT 3 Certificate of Sufficiency of Initiative Petition 1'7 s City of Palm Springs Office of the City Clerk CERTIFICATE OF SUFFICIENCY OF INITIATIVE PETITION I,Anthony J. Mejia, City Clerk of the City of Palm Springs, County of Riverside, State of California,do hereby certify that pursuant to the provisions of Section 9114 of the California Elections Code, I caused the examination of the aforementioned petition, and from the records of registration, ascertain that the petition has been signed by the requisite number of voters. California Elections Code Section 9214 establishes the signature requirement for the calling of a special election at"not less than 15 percent of the voters of the city according to the last report of registration by the county elections official to the Secretary of State pursuant to Section 2187..." According to the Country of Riverside Registrar of Voters Office, there were 25,239 registered voters in the City of Palm Springs. Therefore, 3,786 valid signatures are required for the initiative petition to be deemed sufficient for the calling of a special election. I FURTHER CERTIFY that on November 20,2017, the Proponents filed this initiative petition; and, based on the County of Riverside Registrar of Voters Signature Verification Certificate, I have determined the following facts regarding this initiative petition: Number of signatures filed by proponent raw count............5,320 Number of signatures verified......................................5,320 Number of signatures found sufficient............................4,601 Number of signatures found insufficient............................719 Based on the above facts, the initiative petition is deemed to be sufficient. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Springs this P day of January 2018. nYtn D t ony J. ejia, City Clerk 18 Post Office Box 2743 9 Palm Springs, California 92263-2743 iy ! a V N M MAIO 14 CITY COUNCIL STAFF REPORT Folt DATE: January 24, 2018 NEW BUSINESS SUBJECT: CITIZENS' INITIATIVE FOR THE PROHIBITION OF VACATION RENTAL OF SINGLE FAMILY RESIDENCES IN THE CITY — SUFFICIENCY OF PETITIONS — REVISED ON 01/23/2018 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 the Certificate of Sufficiency of Initiative Petition for the prohibition of vacation rental of single family residences within the City. Due to the unknown impacts of the proposed ordinance, staff is recommending that the City Council direct staff to prepare a report on the impacts of the ordinance and to present the report within thirty (30) days, as provided under California Elections Code (EC) Section 9212. Furthermore, staff is seeking direction from the City Council as to whether the City Council desires for staff to bring forward resolutions calling for a voter consideration of this initiative at the time of the City's next regular election on November 5, 2019, or for the consideration upon consolidation with the Statewide Primary Election to be held on June 5, 2018. RECOMMENDATION: 1. Receive, file, and accept the Certificate of Sufficiency of Initiative Petition for the prohibition of vacation rental of single family residences in the City. 2. Order a report on the initiative measure pursuant to California Elections Code Section 9212 to be presented to the City Council at the Council's regular meeting on February 21, 2018. 3. Provide direction to staff as to whether to bring forward a resolution calling for a vote on November 5, 2019 at the City's next regular election, or calling for a vote in a consolidated election concurrent with the Statewide Primary on June 5, 2018. BACKGROUND: On May 17, 2017, Stephen M. Rose and Walter"Hugh"Vance (Proponents)filed a "Notice of Intent to Circulate Petition" for the purpose of prohibiting vacation rental of single family residences in the City (Attachment 1). In accordance with EC Section 9203, the City Attorney prepared a Ballot Title and Summary (Attachment 2). On June 12, 2017, the Proponents filed proof of publication of a "Notice of Intent to Circulate Petition"with the City Clerk's Office. The Proponents had one hundred eighty(180)days from receipt of the Ballot Title and Summary to circulate the petition and obtain the requisite amount of signatures. City Council Staff Report January 24, 2018 -- Page 2 Certificate of Sufficiency—Initiative Measure on Vacation Rentals Pursuant to EC Section 9215, to qualify the petition for the next regular municipal election, the Proponents needed to obtain a minimum of 10% (2,524) of the voters' signatures of the City. On November 20, 2017, the Proponents submitted their petitions and the City Clerk's Office conducted a prima facie review of submitted petitions. In accordance with EC Section 9210(b), it was determined that said petition contained 5,320 signatures; therefore, said petition was accepted. Pursuant to EC Section 9114, the City Clerk has thirty (30) days; excluding Saturdays, Sundays, and holidays, in which to verify signatures on the initiative petition. The signatures on said petition are to be verified and/or rejected as to whether or not the signers are registered voters within city limits based on Affidavits of Registration on file with the County of Riverside Registrar of Voters (ROV). On November 21, 2017, the City Clerk's Office transmitted the petitions to the ROV to verify the signatures on the initiative petition. On January 3, 2018, the ROV, acting as the City Clerk's agent under contract, advised that a sufficient number of signatures were submitted to qualify the initiative petition for a special election. The City Clerk has prepared a certificate as to this sufficiency (Attachment 3). Assembly Bill 765 (Low) Existing law prior to January 1, 2018 ("Pre-2018 Law") permitted a proposed municipal ordinance to be submitted to the governing body of the city by filing an initiative petition signed by a specified number of voters. If a municipal initiative measure qualified for the ballot, Pre-2018 Law required that the election for the measure be either at a special election or at the next regular election, depending on the percentage of signatures received on the initiative petition. On October 13, 2017, Governor Brown signed Assembly Bill 765 (Low). The new law, effective January 1, 2018, requires that the election for an initiative measure that qualifies for the ballot shall be held at the next regular municipal election, unless the governing body calls for a special election. As it applies to the subject petition, below is a summary of applicable Election Code sections as modified in Assembly Bill 765: • EC Section 9214 was repealed in its entirety, thus eliminating the requirement for a municipality to submit an initiative measure at a special election when reaching the 15% signature threshold. • EC Section 9215 states that if an initiative petition is signed by not less than ten percent (10%) of the city's voters, the legislative body shall take one (1) of the following three (3) actions: o Adopt the ordinance without alteration. o Submit the ordinance to the voters pursuant to EC Section 1405. o Order an impact analysis report pursuant to EC Section 9212. City Council Staff Report January 24, 2018 -- Page 3 Certificate of Sufficiency— Initiative Measure on Vacation Rentals • EC Section 1405 was amended to state that: 1) the election for a municipal initiative that qualifies pursuant to Section 9215 shall be held at the jurisdiction's next regular election; or that in the alternative, the governing body may call a special election for the purpose of submitting an initiative to the voters before the date in which the initiative measure would have otherwise appeared on the ballot. The choice as to whether to call a special election or not belongs to the legislative body, not the proponents of a ballot measure. According to the Legislative Bill Analysis, the public policy behind AB 765 is to address the reality that standalone special elections for a local ballot measure are considerably more expensive for a local jurisdiction than addition of an initiative to the ballot during a regularly scheduled election. In addition, the legislature noted the recent trend toward consolidation of elections due to concerns about low and non-representative voter turnout, observing that this bill could be expected to reduce the number of local initiative measures that are voted on at special elections, and increase the number of measures that appear on the ballot at regularly scheduled elections. (Attachment 4) Revised Options for the City Council's Consideration Pursuant to AB 765, upon certification of sufficiency of signatures, the City Council must either: Option 1: 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. Option 2: Pursuant to EC Section 1405(a), the election for a municipal initiative that qualifies pursuant to Section 9215 shall be held at the jurisdiction's next regular election occurring not less than 88 days after the date of the order of election. In this case, the election when this initiative will be considered by the voters will be on 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 before the date on which the initiative measure would have otherwise appeared on the ballot pursuant to subdivision 1405(a). If the governing body calls a special election pursuant to this subdivision, the election shall be held not less than 88 days nor more than 103 days after the order of the election. In this case, the election when this initiative will be considered by the voters will be on June 5, 2018. Option 4: Pursuant to EC Section 9212, order a report analyzing the impact of the initiative measure. Staff must present the report no later than 30 days after it is ordered by the City Council. When the report is presented to the City Council, the City Council shall either adopt the ordinance within ten (10) days or submit the initiative measure to the voters. City Council Staff Report January 24, 2018 -- Page 4 Certificate of Sufficiency— Initiative Measure on Vacation Rentals In accordance with the City's Charter, the next regular municipal election is scheduled for November 5, 2019. An additional ballot measure to be added to the next regular municipal election is estimated to cost $19,000-$29,000. Alternatively, the City Council may choose to submit the initiative measure at a special election to be held not less than 88 days or more than 103 days after the order of the election. If the City Council chooses to order the impact analysis report, it is anticipated that the report will be presented to the City Council at its meeting on February 21, 2018. If the City Council determines to call for a special election at that meeting, the special election would occur on a Tuesday between May 22, 2018 and June 5, 2018. In the event that the Council wants this initiative considered at a special election, the City Council may choose to request consolidation with the Statewide Primary Election occurring on June 5, 2018. It is estimated to cost$19,000-$29,000 to add the initiative to the Statewide Primary Election. If the City Could determines to conduct a standalone special election on a date other than June 5, 2018, it is estimated to cost $99,000-$109,000. As a further correction to the previous report on this issue, the City cannot call for an all- mail ballot for the subject initiative measure. FISCAL IMPACT: Should the City Council choose to submit the initiative measure to the voters at the Statewide Primary Election and consolidate said election with the County of Riverside it is estimated to cost $19,000429,000 to add the initiative measure to the ballot. Should the City Council desire to submit the initiative measure to the voters at a standalone Special Municipal Election, it is estimated to cost $99,000-$109,000. There are insufficient funds budgeted for a special election in the adopted Fiscal Year 2017-18 Budget. At the time of calling the election, the City Council will be requested to provide supplemental funding. A ox�� A on " , Edward Z. Kotkin ity Clerk City Attorney �i David H. Ready, Esq., P . City Manager Attachments: 1. Notice of Intent to Circulate Petition 2. Ballot Title and Summary Prepared by the City Attorney 3. Certificate of Sufficiency of Initiative Petition 4. Assembly Bill 765 and Legislative Analysis ATTACHMENT 1 Notice of Intent to Circulate Petition Attachment 1 NOTICE OF INTENT TO CIRCULATE PETITION Notice is hereby given by the persons whose names appear hereon of their intention to circulate a petition within the City of Palm Springs for the purpose of submitting an initiative measure to a vote of the people. A statement of the reasons of the proposed action as contemplated in the petition is as follows: This initiative is intended to stop the proliferation of commercial short-term vacation rentals in R-1 single family residential neighborhoods in the City of Palm Springs. Single-family residential neighborhoods are the heart and soul of any city. Our General Plan and our Municipal Code explicitly require our city officials to protect R- 1 neighborhoods from the encroachment of commercial uses. The permanent residents of a city are the stabilizing force that keeps a city going in good times and bad times. Without stable, healthy residential neighborhoods, a city is doomed. Palm Springs is a year-round city with 45,000 full-time residents who live real lives of value. We cannot, by law, live in a storefront on Palm Canyon. We cannot set up a home in a warehouse in an industrial zone. Why should we be compelled to tolerate commercial hotel and resort uses in our own backyards? Quaint `mom and pop' vacation rentals of 1971 bear little resemblance to the product with the same name in 2017. One or two residents occupy most homes in Palm Springs, regardless of the size of the home. Vacation rentals can inject groups of 12 or more partying tourists next door to family housing. That is an intolerable situation. A block that has been overrun with vacation rentals is no longer a neighborhood, it is a commercial enterprise zone consisting of unsupervised hotels. People come,drop their bags, vacation, pack and leave. A cleaning crew follows them and then the next client comes. Turnover is the watchword. Make no mistake - tourism is important industry in Palm Springs, and we cherish it. The residents support their airport, convention center, and downtown, all designed to cater to this important industry. We support our hospitality industry indirectly through our taxes and directly by patronizing restaurants, hotels and spas. We rollout the red carpet for visitors throughout the city, but they do not have a right to our single-family neighborhoodsl The overheated, under-regulated state of the short-term vacation business has happened for many reasons, not the least of which is the explosive growth of the Intemet-based'sharing economy.' No city was able to anticipate the effect that this product would have on neighborhoods. But, while elected officials from many tourist-oriented towns acted decisively to protect their residents, our elected officials MM/1 NM9I9CMCf� chose instead to coddle and capitulate to the vacation rental industry. We are the outliers; Palm Springs has more short-term vacation rentals in R1 neighborhoods per capita than any city in the United States. Profit and tax revenue have been placed before people in our city. This initiative repeals City codes that allow short term vacation rentals in R-1 zones. It continues to allow home sharing in all residential zones and home sharing and short terra vacation rentals in multi-family zones. It gives the voters of Palm Springs a direct voice in the future of our neighborhoods. Let us end the madness and restore our historic single-family neighborhoods to their rightful and intended purpose. Proponents: � �1I/�iG G'dila r r� Stephen M. Rose Walter'Hugh"Varlbe 1195 East Sunny Dunes Road 266 East Palo Verde Palm Springs, CA 92265 Palm Springs, CA 92264 Dated: May 17, 2017 Dated: May 17, 2017 mm"nnnenamo� THE FULL TEXT OF THE INITIATIVE MEASURE IS SET FORTH BELOW (Amendments to provisions of the Palm Springs Municipal Code are shown in underline) 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 stFikeeet 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 time uses expressly identified as uses permitted in single-family or multi- family 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 Sidle Family-OF 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 thateR Festal.Vacation Rentals and Homesharing are ancillary and secondary uses of privately owned multi- fami 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. 09989M=7rMl (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 aPA 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 R-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 41-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 "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. 09e99.0003r377226.1 "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-farm structure that is individually owned,where each owner receives a recordable deed to each individual unit Purchased, including the right to sell or mort a e 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 ' B. R ' ", R ' "", OF^-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 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, NM.00a37722e.1 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. "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." 09sssb0M7 M,1 "Third Quarter"means the entire months of July,August, and September in one calendar year. "Vacation Rental"means an Single individually rented unit in a multi- famil 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 month4o-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 aR-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 , aR a rental Apartment manager, or a representative cdthhe rental Apartment owner or manager, shall evict any tenant or otherwise terminate a lease for the purpose of converting aR a rental Apartment to a Vacation rental or in anticipation of converting aR 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 aw a rental Apartment structure, rental Apartment manager,or representative to recover possession of the unit.Any attempt to mover 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. 09M.0003MM A (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 pursuantto a valid Wacation Registration Certificate issued priorto 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. 0) The provisions of Subsection (a) of this Section shall not app to or be enforced against any person or enffir 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 ofof twenty four months�The'ommse of thisdeferral of the enforcement a provisions of this Section is for rsons or entities issued valid vacation Mistratbon 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. (gj_,_ The provisions of Subsection (a) of this Section. Subsection 5.225.04 b (limits on number of units]. 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 r uirements 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 mannerwhich most vigorously and effectively accomplishes its purposes and operative provisions. 09M.OWM772M.1 It 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 Refreal This initiative measure and all of its provisions may be amended or repealed only by a majority vote of the electorate. 09M.0M3G77M.1 ATTACHMENT 2 Ballot Title and Summary Prepared by the City Attorney Attachment 2 BALLOT TITLE AN INITIATIVE MEASURE PROHIBITING THE VACATION RENTAL OF SINGLE FAMILY RESIDENCES IN THE CITY BALLOT 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) prohibits the vacation rental of apartments, in the City,effective January 1, 2019, (11)neither prohibits nor allows the vacation rental of condominiums as a separate category of residence, (111) 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 "condominium" and "single family residence." 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-1-13, R-1-A, R-1-C, R-1-1), R-1AH, 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 voters of the City at a special or general election. CERTIFICATION This ballot title and summary are hereby submitted to the elections official in conformance with California Elections Code Section 9203. Dated: May 30,2017 ; Edward Kotkin City Attorney Attest: Y. Kathleen Hart Interim City Clerk ATTACHMENT 3 Certificate of Sufficiency of Initiative Petition Attachment 3 �lp"o0 City of Palm Springs Office of the City Clerk CERTIFICATE OF SUFFICIENCY OF INITIATIVE PETITION I,Anthony J. Mejia, City Clerk of the City of Palm Springs, County of Riverside, State of California,do hereby certify that pursuant to the provisions of Section 9114 of the California Elections Code, I caused the examination of the aforementioned petition,and from the records of registration, ascertain that the petition has been signed by the requisite number of voters. California Elections Code Section 9215 establishes the signature requirement for the calling of a special election at"not less than 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 pursuant to Section 2187..." According to the Country of Riverside Registrar of Voters Office, there were 25,239 registered voters in the City of Palm Springs. Therefore, 2,524 valid signatures are required for the initiative petition to be deemed sufficient. I FURTHER CERTIFY that on November 20,2017,the Proponents filed this initiative petition; and, based on the County of Riverside Registrar of Voters Signature Verification Certificate, I have determined the following facts regarding this initiative petition: Number of signatures filed by proponent raw count............5,320 Number of signatures verified......................................5,120 Number of signatures found sufficient............................4,601 Number of signatures found insufficient............................719 Based on the above facts, the initiative petition is deemed to be sufficient. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Springs this Yd day of January 2018. ,- 00 ony J. ejia, ? City Clerk Post Office Box 2743 0 Palm Springs,California 92263-2743 ATTACHMENT 4 Assembly Bill 765 Bill Text-AB-765 Local initiative measures:submission to the voters. https://Ieginfo.legislature.ca.gov/facesthillTextClient.xhtml?bill id=201... Cie Z Ilf � % LEGISLATIVE INFORMATION Attachment Home Bill Information California Law Publications Other Resources My Subscriptions My Favorites AB-765 Local initiative measures: submission to the voters. (2017-2018) SHARE THIS: '- - Date Published: 10/13/2017 09:00 PM Assembly Bill No. 765 CHAPTER 748 An act to amend Sections 1405, 9111, 9118, 9212, 9215, and 9310 of, and to repeal Sections 9116, 9214, and 9311 of, the Elections Code, relating to elections. [ Approved by Governor October 13, 2017. Filed with Secretary of State October 13, 2017. j LEGISLATIVE COUNSEL'S DIGEST AB 765, Low. Local initiative measures: submission to the voters. Existing law permits a proposed county, municipal, or district ordinance to be submitted to the governing body of the county, city, or district by filing an initiative petition signed by a specified number of voters. If a county or municipal initiative measure qualifies for the ballot, existing law requires that the election for the measure be either at a special election or at the next statewide or regular election, depending on the percentage of signatures received on the initiative petition. If a district initiative measure qualifies for the ballot, existing law requires that the election for the measure be either at a special election or at the next regular election, depending on whether the initiative petition contains a specified request. This bill instead would require that the election for a county, municipal, or district initiative measure that qualifies for the ballot be the next statewide or regular election, as applicable, unless the governing body of the county, city, or district calls a special election. The bill also would make conforming changes. Vote: majority Appropriation: no Fiscal Committee: no Local Program: no THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 1405 of the Elections Code is amended to read: 1405. (a) Except as provided in subdivision (b), the election for a county initiative that qualifies pursuant to Section 9118 shall be held at the next statewide election occurring not less than 88 days after the date of the order of election. The election for a municipal or district initiative that qualifies pursuant to Section 9215 or 9310 shall be held at the jurisdiction's next regular election occurring not less than 88 days after the date of the order of election. (b) The governing body of a county, city, or district may call a special election for the purpose of submitting an initiative measure to the voters before the date on which the initiative measure would appear on the ballot pursuant to subdivision (a). If the governing body calls a special election pursuant to this subdivision, the election shall be held not less than 88 days nor more than 103 days after the order of the election. SEC.2. Section 9111 of the Elections Code is amended to read: 1 of 3 1/22/2018,7:06 PM Bill Text-AB-765 Local initiative measures: submission to the voters. https://Ieginfo.legislature.ca,gov/faces/billTextClient.xhtml?bill_id=201... 9111. (a) During the circulation of the petition or before taking either action described in subdivisions (a) and (b) of Section 9118, the board of supervisors may refer the proposed initiative measure to a county agency or agencies for a report on any or all of the following: (1) Its fiscal impact. (2) Its effect on the internal consistency of the county's general and specific plans, including the housing element, the consistency between planning and zoning, and the limitations on county actions under Section 65008 of the Government Code and Chapters 4.2 (commencing with Section 65913) and 4.3 (commencing with Section 65915) of Division 1 of Title 7 of the Government Code. (3) Its effect on the use of land, the impact on the availability and location of housing, and the ability of the county to meet its regional housing needs. (4) Its impact on funding for infrastructure of all types, including, but not limited to, transportation, schools, parks, and open space. The report may also discuss whether the measure would be likely to result in increased infrastructure costs or savings, including the costs of infrastructure maintenance, to current residents and businesses. (5) Its impact on the community's ability to attract and retain business and employment. (6) Its impact on the uses of vacant parcels of land. (7) Its impact on agricultural lands, open space, traffic congestion, existing business districts, and developed areas designated for revitalization. (8) Any other matters the board of supervisors request to be in the report. (b) The report shall be presented to the board of supervisors within the time prescribed by the board of supervisors, but no later than 30 days after the county elections official certifies to the board of supervisors the sufficiency of the petition. SEC. 3. Section 9116 of the Elections Code is repealed. SEC.4. Section 9118 of the Elections Code is amended to read: 91% If the initiative petition is signed by voters not less in number than 10 percent of the entire vote cast in the county for all candidates for Governor at the last gubernatorial election preceding the publication of the notice of intention to circulate an initiative petition, the board of supervisors shall do one of the following: (a) 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. (b) Submit the ordinance, without alteration,to the voters pursuant to Section 1405. (c) Order a report pursuant to Section 9111 at the regular meeting at which the certification of the petition is presented. When the report is presented to the board of supervisors, the board shall either adopt the ordinance within 10 days or order an election pursuant to subdivision (b). SEC.5. Section 9212 of the Elections Code is amended to read: 9212. (a) During the circulation of the petition, or before taking either action described in subdivisions (a) and (b) of Section 9215, the legislative body may refer the proposed initiative measure to a city agency or agencies for a report on any or all of the following: (1) Its fiscal impact. (2) Its effect on the internal consistency of the city's general and specific plans, including the housing element, the consistency between planning and zoning, and the limitations on city actions under Section 65008 of the Government Code and Chapters 4.2 (commencing with Section 65913) and 4.3 (commencing with Section 65915) of Division 1 of Title 7 of the Government Code. (3) Its effect on the use of land, the impact on the availability and location of housing, and the ability of the city to meet its regional housing needs. (4) Its impact on funding for infrastructure of all types, including, but not limited to, transportation, schools, 2 of 3 1/22/2018,7:06 PM Bill Text-AB-765 Local initiative measures:submission to the voters. https://Ieginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201... parks, and open space. The report may also discuss whether the measure would be likely to result in increased infrastructure costs or savings, including the costs of infrastructure maintenance, to current residents and businesses. (5) Its impact on the community's ability to attract and retain business and employment. (6) Its impact on the uses of vacant parcels of land. (7) Its impact on agricultural lands, open space, traffic congestion, existing business districts, and developed areas designated for revitalization. (8) Any other matters the legislative body requests to be in the report. (b)The report shall be presented to the legislative body within the time prescribed by the legislative body, but no later than 30 days after the elections official certifies to the legislative body the sufficiency of the petition. SEC.6. Section 9214 of the Elections Code is repealed. SEC.7. Section 9215 of the Elections Code is amended to read: 9216. If the initiative petition is signed by not less than 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 pursuant to Section 2187, effective at the time the notice specified in Section 9202 was published, or, in a city with 1,000 or less registered voters, by 25 percent of the voters or 100 voters of the city, whichever is the lesser number, the legislative body shall do one of the following: (a) 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. (b) Submit the ordinance, without alteration, to the voters pursuant to Section 1405. (c) Order a report pursuant to Section 9212 at the regular meeting at which the certification of the petition is presented. When the report is presented to the legislative body, the legislative body shall either adopt the ordinance within 10 days or order an election pursuant to subdivision (b). SEC.8. Section 9310 of the Elections Code is amended to read: 9310. (a) If the initiative petition is signed by voters not less in number than 10 percent of the voters in the district, where the total number of registered voters is less than 500,000, or not less in number than 5 percent of the voters in the district, where the total number of registered voters is 500,000 or more, the district board shall do either of the following: (1) Adopt the ordinance, without alteration, either at the regular meeting at which the certification of the petition is presented, or within 10 days after it is presented. (2) Submit the ordinance, without alteration, to the voters pursuant to Section 1405. (b) The number of registered voters referred to in subdivision (a) shall be calculated as of the time of the last report of registration by the county elections official to the Secretary of State made before publication or posting of the notice of intention to circulate the initiative petition. SEC.9.Section 9311 of the Elections Code is repealed. 3 of 3 1/22/2018,7:06 PM SENATE RULES COMMITTEE AB 765 Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 THIRD READING Bill No: AB 765 Author: Low (D) Amended: 5/11/17 in Assembly Vote: 21 SENATE ELECTIONS & C.A. COMMITTEE: 4-1, 6/20/17 AYES: Stern, Allen, Hertzberg, Leyva NOES: Anderson ASSEMBLY FLOOR: 49-28, 5/22/17 - See last page for vote SUBJECT: Local initiative measures: submission to the voters SOURCE: Author DIGEST: This bill eliminates the requirement that a special election be held to vote on a local initiative measure if certain conditions are met, and instead generally provides for the measure to be submitted to voters at a regularly scheduled election. ANALYSIS: Existing law: 1) Requires a county or a city, when it receives an initiative petition that is signed by a specified number of voters, to do one of the following: a) Adoptthe initiative without alteration; b) Submit the initiative to the voters, as specified; or, AB 765 Page 2 c) Order a report on the initiative, to be completed within 30 days, before deciding whether to adopt it or submit it to the voters. 2) Requires a special district, when it receives an initiative petition that is signed by a specified number of voters, to do one of the following: a) Adoptthe initiative without alteration; or, b) Submit the initiative to the voters, as specified. 3) Permits a local governing bodyto submit an initiative measure to the voters, rather than adopting the initiative without alteration, at a special election for the voters to considerthat initiative measure, if certain conditions are met. 4) Requires a local governing bodyto submit an initiative measure to the voters, if they choose not to adopt the initiative without alteration, at a special election if the initiative petition was signed by a greater specified number of voters than otherwise required for qualification to necessitate appearance at a regularly scheduled election. 5) Requires the election for a county, municipal, or district initiative that is submitted to voters at a special election, as detailed above, to be held not less than 88 nor more than 103 days after the date of the order of the election, except as follows: a) Permits the special election on the initiative measure to be held on the same date as and consolidated with a regular or special election occurring wholly or partially within the same territory, if it was otherwise legally possible to hold the special election within 180 days prior to the regular or special election. b) Permits the special election on the initiative measure to be held on the same date as and consolidated with a regularly scheduled statewide general election if it was otherwise legally possible to hold the special election on the measure during the period between the statewide primary election and the statewide general election. c) Permits the special election to be held more than 103 days after the date of the order of the election if necessary in order to avoid holding more than one special election within any 180-day period, provided that the election is AB 765 Page 3 scheduled at as early a date as practicable after the expiration of 180 days from the last special election. d) Provides that not more than one special election for an initiative measure that qualifies as specified may be held by a jurisdiction during any period of 180 days. 6) Requires the election for a county initiative that qualifies for the ballot, but that is not required to be submitted to voters at a special election, to be held at the next statewide election occurring not less than 88 days after the date of the order of the election. Requires the election for a municipal or district initiative that qualifies for the ballot, but that is not required to be submitted to voters at a special election, to be held at the jurisdiction's next regular election occurring not less than 88 days after the date of the order of the election. 7) Requires the election for a county or municipal referendum that qualifies pursuant to existing law to be held at the jurisdiction's next regular election occurring not less than 88 days after the date of the order of the election, or at a special election called for that purpose not less than 88 days after the date of the order of the election. This bill: 1) Repeals a requirement that a special election be held to vote on a local initiative measure even if the larger specified number of signatures have been submitted and instead requires the measure to be submitted to the voters at the next statewide election occurring not less than 88 days after the date of the order of the election in the case of a county initiative measure, or at the jurisdiction's next regular election occurring not less than 88 days after the date of the order of the election in the case of a city or district initiative measure. 2) Permits the governing body of a county, city, or district to call a special election for the purpose of submitting a local initiative measure to the voters before the date on which the initiative measure would otherwise appear on the ballot. Requires such a special election to be held not less than 88 nor more than 103 days after the date of the order of the election. 3) Makes other corresponding and technical changes. AB 765 Page 4 Background Locallnitiative Measures and Special Elections. Under existing law, a state initiative measure that qualifies for the ballot generally appears on the ballot at the next statewide general election that is at least 131 days after the measure qualifies. While existing law gives the Governor the authority to call a statewide special election for the purpose of voting on a state initiative measure, that authority has been used sparingly. It appears that California Governors have called statewide special elections for initiative measures just six times since the initiative process was adopted in California in 1912, and of the 373 statewide ballot initiatives that have qualified for and appeared on the ballot, it appears that only 13 appeared on the ballot at a statewide special election (eight of those 13 measures appeared on the ballot at a single statewide special election in 2005). The process forlocal initiative measures to be submitted to voters differs. First, when local initiative proponents have collected a sufficient number of signatures for their measure to qualify for the ballot, existing law permits the governing body of the local jurisdiction to adopt the local initiative measure without alterations. In such a situation, the proposed initiative measure is not submitted to the voters for their consideration. Furthermore, existing law gives local initiative proponents a tool to require a local jurisdiction to hold a special election to vote on their proposed initiative measure if the governing body chooses notto adopt the measure without alterations. By including a request for a special election in the petition -- and in the case of county and most municipal initiatives, by collecting a larger number of valid signatures than would otherwise be required -- the proponents of a local initiative measure can require the local jurisdiction to schedule a special election to vote on the measure if they choose not to adopt the measure outright. It can be considerably more expensive for a local jurisdiction to conduct a standalone special election for a local ballot measure than it is for that jurisdiction to add an additional measure to the ballot at an already scheduled election. As a result, the decision of local initiative proponents to request a special election for their initiative can significantly increase the costs to the local government to place that measure before the voters for their consideration. Trend Toward Consolidation of Elections. In recent legislative sessions, concerns about low and non-representative voter turnout have been the motivation behind a number of bills that moved votes for offices and ballot measures so that they occur AB 765 Page 5 at the same time as statewide elections. Specifically, SB 202 (Hancock, Chapter 558, Statutes of 2011) prohibited state initiative and referendum measures that qualified for the ballot on or after July 1, 2011, from appearing on the ballot at statewide primary elections, and instead required such measures to appear on the ballot only at the November statewide general election or at a statewide special election. AB 1344 (Feuer, Chapter 692, Statutes of 2011) required a city charter proposal or amendments to a city charter to be submitted to the voters for approval or rejection only at an established statewide general, statewide primary, or regularly scheduled municipal election date. SB 311 (Padilla, Chapter 184, Statutes of 2013) requires certain city charter proposals and city charter amendments to be submitted to the voters only at a statewide general election, as specified. SB 415 (Hueso, Chapter 235, Statutes of2015) prohibits a local government, beginning January 1, 2018, from holding an election on any date other than a statewide election date if doing so in the past has resulted in turnout that is at least 25% below the average turnout in that jurisdiction in the last four statewide general elections, as specified. Collectively, these bills will result in a larger number of offices and ballot measures being voted on at statewide primary, statewide general, and other regularly scheduled elections, which generally have higher turnout than standalone special elections. Similarly, this bill could be expected to reduce the number of local initiative measures that are voted on at special elections, and increase the number of measures that appear on the ballot at regularly scheduled elections. Comments 1) According to the author, under existing law, the proponents of local initiative measures have the ability to force local governments to hold a special election on their initiative. These special elections are costly, and frequently result in lower and less representative voter participation. Earlier this year, the Campbell City Council was forced to schedule a citywide special election -- at an estimated cost of$570,000 -- to vote on a local initiative measure that the proponents failed to qualify in time for last November's ballot. Allowing the proponents of an initiative to force a local government to adopt the measure outright or schedule a special election gives those proponents excessive leverage over local elected officials. Even when they are faced with a measure that is broadly opposed by their constituents, local elected officials nonetheless have to choose between adopting that measure, or spending limited public funds to hold a special election. Proponents should not be able to use AB 765 Page 6 the threat of a costly special election to coerce local elected officials into adopting their proposals. AB 765 simply applies the same rules to local initiatives that currently apply to state initiatives and local referenda—namely, that measures that qualify for the ballot will be voted on at the next regularly scheduled election for which the measure can feasibly be added to the ballot. For time sensitive matters, the local jurisdiction would have the ability to call a special election to vote on the initiative prior to the next regularly scheduled election. Related/Prior Legislation SB 609 (Vidak), which failed passage in the Senate Elections and Constitutional Amendments Committee, would have required an elections official, if a petition for a municipal, county, or district initiative measure, city or city and county charter proposal, or municipal referendum, is found to have sufficient signatures, to immediately place the initiative measure that is the subject of the petition on the election ballot for which it qualifies pursuant to existing law. FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No SUPPORT: (Verified 6/20/17) California Common Cause California Special Districts Association California State Association of Counties City of Campbell Charles Jones, Member, San Jose City Council OPPOSITION: (Verified 6/20/17) Howard Jarvis Taxpayers Association ARGUMENTS IN SUPPORT: In support of this bill, California Common Cause writes: Important questions of local public policy should not be decided at special elections when voter attention and participation are at their lowest. Special elections are notorious for low and unrepresentative turnout. For example, only 14 percent of eligible voters cast ballots in the recent special [primary] election to fill a vacancy in the 34th Congressional district— less than half of the turnout in that district the AB 765 Page 7 previous November. Unfortunately, current law enables local initiative proponents to make the cynical choice that their measure would benefit from a less engaged electorate. State initiative proponents do not have a similar ability to choose the electorate that considers their measure, which must be scheduled for the next state general election ballot — when voter turnout is highest. Allowing local initiative proponents to call a special election enables them to game the system in another way. A standalone special election is generally very expensive, because it cannot be consolidated with other local or state elections to share the costs ofelection administration. As a result, a local governing board may feel coerced to pass a local proponent's policy by ordinance and cancel the election —even if they disagree with the initiative's substance—just to save their jurisdiction the financial expense of the special election. ARGUMENTS IN OPPOSITION: In opposition to this bill, the Howard Jarvis Taxpayers Association writes: Current law, including provisions in Proposition 218 in the California Constitution, allows for taxpayers to qualify their own initiatives for a local ballot. Signature thresholds for such endeavors range from 5 to 15 percent of registered voters living in the municipality and are determined by the number of voters in the last gubernatorial election. Calling a special election is uncommon and, because of the higher signature threshold, difficult to accomplish. However, there may be circumstances when such expedited action is justified. To take the discretion away from the People to meet the much higher signature threshold in order to call a special election runs contrary to principles of direct democracy and the constitutional foundation that all political power resides in the People. ASSEMBLY FLOOR: 49-28, 5/22/17 AYES: Aguiar-Curry, Arambula, Berman, Bloom, Bocanegra, Burke, Caballero, Calderon, Chau, Chiu, Chu, Cooley, Cooper,Daly, Eggman, Frazier, Friedman, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gomez, Gonzalez Fletcher, Gray, Grayson,Holden, Irwin, Jones-Sawyer, Kalra, Levine, Limon, Low, McCarty, Medina, Mullin, Muratsuchi, O'Donnell, Quirk, Reyes, Ridley- Thomas, Rodriguez, Rubio, Santiago, Mark Stone, Thurmond, Ting, Weber, Wood, Rendon AB 765 Page 8 NOES: Acosta, Travis Allen, Baker, Bigelow, Brough, Cervantes, Chavez, Choi, Cunningham, Dababneh, Dahle, Flora, Fong, Gallagher, Harper, Kiley, Lackey, Maienschein, Mathis, Mayes, Melendez, Obernohe, Patterson, Quirk-Silva, Salas, Steinorth, Voepel, Waldron NO VOTE RECORDED: Bonta, Chen, Nazarian Prepared by: Darren Chesin/E. & C.A. / (916) 651-4106 6/22/17 16:33:02 **** END **** ° HomeAway® January 18, 2018 Palm Springs City Council 3200 E Tahquitz Canyon Way Palm Springs, CA 92262 Dear Mayor Moon and City Councilmembers, On behalf of HomeAway and our homeowners, I am writing to express our concerns with the effort to curtail vacation rentals and to urge the Council to work toward smart regulations that protect the value vacation rentals bring to Palm Springs homeowners and businesses. In the Council's upcoming meeting, we encourage the Council to focus on creating a workable solution that benefits all groups involved and preserves the ability for homeowners to responsibly engage in the city's thriving tourism economy. Vacation rentals, including secondary homes, are a critical component to the lodging options for visitors coming to Palm Springs. They attract traveling families looking for a different type of accommodation that allows them to stay together under one roof, have a kitchen, or experience a home-like setting. Eliminating vacation rentals in some areas takes away an important option for travelers, and in turn, income for Palm Springs residents and businesses. Not only do travelers rely on these rentals to explore the city with their families, but hundreds of local businesses also rely on the foot traffic and visitor spending from vacation rental guests to keep their doors open. In fact, a recent Development Management Group report found that Palm Springs short-term rentals generated $307 million in economic activity and supported 3,500 full-time jobs in one year. Moreover, the same report found vacation rentals generated $4.6 million in net tax revenue, allowing the city to invest in more programs and services that benefit Palm Springs residents. Vacation rentals also provide a critical option for Palm Springs homeowners working to make ends meet, invest in property maintenance, and save for their children's college tuition. Limiting homeowners' ability to rent their properties as vacation rentals infringes on property rights and punishes responsible owners for the nuisance issues associated with very few rentals. Given the benefits outlined above, it's no surprise that a 2016 poll found the majority of Palm Springs residents believe whole-home vacation rentals are beneficial to the city. For this reason, we strongly recommend the City Council 1011 W. 51h Street I Austin, TX 78703 512.684.11001 Fax 512.684.1101 1 www.homeaway.com gather input from all groups involved, to create an effective framework for regulation, and to preserve the benefits vacation rentals bring to the city. HomeAway believes in commonsense regulation that encourages compliance and addresses nuisance issues. In addition to working with policymakers to create smart regulations as short-term rentals grow in popularity, we have launched the Stay Neighborly website, www.stayneighborly.com, to address nuisance complaints submitted by neighbors. We look forward to continuing to work with the City Council on the issue. Please feel free to contact me if you need additional information. I can be reached at 512.505.1615 or woonzales .homeaway.com. Sincerely, y- Walter R. Gonzales HomeAway Government Affairs Manager i y 1011 W. 5th Street I Austin, TX 78703 512.684.1100 I Fax 512.684.1101 1 www.homeaway.com SHORT-TERM RENTAL. PROPERTIES Help Our Corr� munities NIILLIC�f� 3,500 JCJBS rri t��tal Irv:ai e_?nsJn'ui�_trvrtV 5TR guests m Palm Spnngs generated$3t3?fT1[�(�<i1 in dFr�tt spentiiirn�,rntludinq 559 R11111011 in W,dging and$24R IT)II(ls3rl in additiAnal expenditures VISITOR SPENQINC TREI�l7S Each night an STR visitor C ,y generate an additional. Dtning EMertainmeM Retail Shappiny Transportaii�n 79�j'��I' TOTAL VISCfORS STR VKITOR � Nat tax ravanua f\ STAYING IPt 5TRS SQENQING LED TO: �.�1 Y 1 forthecity ifl LJhF_7111i `_i 11f 111 i_iy, Ir-HI) i :dil�f• Il rteSLe� _.^!III��I!?li II7�91:1 rig:14.lh th?Ir Vdi nil]I'1 ldltd� in2�i7,Palmspring. AVERAGE AVERAt;ESIZE s7Rshad: BOOKEQ NIGHTS TRAVEL GROUP :: HomeAway- Cindy Berardi From: Terri Milton Sent: Monday, January 22, 2018 2:46 PM To: Cindy Berardi Subject: FW: Possible issues with January 24 City Staff Report Re: STR Ballot Vote palmsprings n e i or s41. n e or o ods January 21,2018 Mr. Edward Kotkin City Attorney 3200 E.Tahquitz Canyon Way Palm Springs,CA 92262 CC: Office of City Clerk,Palm Springs Rob Moon, Palm Springs Mayor Dear Mr. Kotkin, At the opinion of our legal advisor,we are hereby notifying you of apparent misstatements in Option 2 of the city's"January 24 City Staff Report entitled "New Business-Citizens'Initiative For The Prohibition Of Vacation Rental Of Single Family Residences In The City-Sufficiency Of Petitions." As currently written, Option Two states, "Pursuant to EC Section 1405(a), [the City may choose to]submit the initiative measure,without alteration,to the voters at a standalone or all-mail ballot Special Municipal Election to be held on a Tuesday during April 22-May 7,2018;............ Mail-in ballot elections are governed by the provisions of EC Section 4000. The issue presented in the initiative measure,does not fall within the categories of elections that may be set for a mail-in vote as set forth in EC Section 4000. In addition,your report cites EC Section1405(a)as stating that the city may submit the initiative measure to the voters via an all-mail ballot Special Election. However, nothing in EC Section 1405 authorizes an all-mail election. EC Section 1405(a)requires the election for a municipal initiative that qualifies under EC 9215 be held at the City's next regular election occurring no less than 88 days after the date of the order of the election. Section 1405(b)permits the City to call a special election for an initiative not less than 88 days nor more than 103 days after the order of the election. In addition,even it was permissible,it would be impossible to hold the all-mail ballot during the time period from April 22 to May 7 under the express provisions of EC Section 1500. CE Sectionl500 has set the established and mandatory mail-in ballot election dates as follows: (a)The first Tuesday after the first Monday in May of each year. (b)The first Tuesday after the first Monday in March of each even-numbered year. (c)The last Tuesday in August of each year. May 8 is the first Tuesday after the first Monday in 2018 and is outside the 103-day time limit required to be observed if the City Council acts on this matter on January 23,2018. If the City chooses to request a study to be acted on in 30 days following the meeting on January 23,2018 and does not act until February 23,2018,as recommended in the staff report,the earliest a special election could be called is May 22,2018,and the latest would be June 6,2018. Those dates do not encompass an established election date for a mail-in ballot election. It is vital that the City Staff validate the information in this report before presenting it to the city council on Wednesday. If there is some other authority for the statements you have presented,that should be included. The people of Palm Springs have waited more than 10 years to have their voices heard and it would be an injustice to them if there were another delay due to the City Council decisions being based on false information. Sincerely yours, Rob Grimm Rob Grimm, PSN4N Campaign Manager (760)464-1724 or RobGrimm@psn4n.org Terri Milton From: Roxann Ploss<riploss@gmail.com> Sent: Tuesday,January 23,201812:49 PM To: CityClerk; David Ready;Geoff Kors;Robert Moon; Lisa Middleton;christyholstege@palmspringsca.gov;JR Roberts Subject: for inclusion 1/24 notebooks When you buy property in California, you are given a thick folder of papers to read and sign. Operative word: "read". Amongst those papers are things like "full disclosure" and "property description" statements. How the property is zoned is clearly stated several. Agents are obligated to tell the prospective buyer how the property is zoned. The county assessor's website lists how the property is zoned. How then can anyone argue that they have the right to turn their property into a quasi- hotel when there is NO argument as to how the property is zoned? Even if they purchased it as an "income property", did they not realize that"11-1" limits them to long- term rentals? For those who bought a home, cloaked in the reassurance of R-1 zoning, this is a burning issue. The belief that they'd have recognizable neighbors was often a major factor in the decision to buy. I know it was for me. My real estate-agent mother taught me to ask all the right questions. I loved the house, the neighborhood, the location/location/location. But after living in a condo contiguous to an STR unit, zoning was right there at the top of my list. I was assured by everyone involved and by the city when I called that I would not have the recurring problem of weekend party-makers. Within a month of moving into my dream home, I had a fraternity"retreat" across the street (from my corner lot) and a bevy of motorcyclists across the other street. The traffic was incredible. Overflow parking blocked my mailbox and resulted in delayed deliveries. One long weekend, there were six cars in the driveway, a couple on the street and a yellow, mini-bus parked in front of my house! Again, I did all the right things. I took pictures. I called the Code Enforcement. I had then-Councilwoman Deyna Hodges come by to look at the situation. I called the police when the noise was too much after- hours. There was absolutely no remediation. My neighbors and I formed our HOA with this as our first issue. We met with newly hired City Manager David Ready and representatives of the rental industry. Objective: a 28- day minimum rental. That way, snow birds (who by definition are short-termers) could still be accommodated. The industry flat-out refused. "We will do a better job of policing our own." And that was that. It was horrendous. Thus began the nearly four-years' negotiations which resulted in the STR ordinance. At first, the city didn't enthusiastically welcome the discussion. Ultimately, I gave up. Fortunately, my neighbor, Ron Siegel, took over. During his tenure, it was realized i that the numbers were great enough to warrant city involvement; a compromise was struck. The city could get its TOT and the residents could get a better regulated market. Since that time, the promised monies have indeed been collected but the enforcement has been sorely lacking. The battle for equal recognition of residents' rights as opposed to those of the business-owners' has been continuous from the beginning. So, back to argument #1. When the buyer purchased a house in a residential neighborhood, he or she knowingly forfeited the "right" to treat that building as a small hotel (which is a commercial enterprise). To say that this sort of rental was the only thing making the purchase possible is the same as saying "I can't afford it but I want it anyway; neighbors be damned". These are the same people who, during an economic downturn, sell out. It seems that good times or bad, the neighborhood suffers.....or is lost altogether. I �. .Y AAAA Outdoor Dlalaq, tLe IXsnrf Ion,Palm Sp[Inq.,C"IIIOIR,Q ..v Roxann Ploss Palm Springs, Ca. "Those who do not learn from history are doomed to repeat it." z Good evening mayor and council. My name is Marla Malaspina. I am on the campaign team for PS Neighbors for Neighborhoods, the group behind the ballot initiative to regulate STRs in residential neighborhoods. We submitted our petition to the city after the council elections in November as a courtesy to the city clerk who was under a lot of time demands. Review of the possible options with her at the time showed our petition could qualify for consolidation with the June election. Riverside County verified the signatures in December. My question is... does the new election law that went into effect this January V even apply to this measure? It may very well be a question the courts will have to decide. We understand that the intent of the new law was to help cities that might be strong armed into adopting legislation because they could not afford a special election. That is not the case here. We are not asking for a special election, which we know would cost the taxpayers a lot of money. Instead we ask that this ballot measure be consolidated into the State Primary election scheduled for June 5. This is the date over 5,000 residents who signed the petition expected to vote. This is the reason we took the extra time and expense to ensure we received over 15% of registered voter signatures. To push the vote out nearly 2 years to November 2019, your other option, does not save the city money and will surely keep the issue in contention and heated debate until then. We urge the council tonite to set June 5t' as the ballot vote for the people of Palm Springs, who have asked simply to have their voice heard on whether STRs belong in their neighborhoods. 1/24 city council meeting. item 4B _ r L 61