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HomeMy WebLinkAbout2/15/2017 - STAFF REPORTS - 3.B. Xu4l'to�� A` CITY COUNCIL STAFF REPORT DATE: February 15, 2017 LEGISLATION SUBJECT: RESCIND ORDINANCE NO. 1907, ADOPT INTERIM URGENCY ORDINANCE RELATING TO VACATION RENTALS (4/5ths Vote Required), AND INTRODUCE AN ORDINANCE RELATING TO VACATION RENTALS FROM: David H. Ready, City Manager BY: Douglas Holland, City Attorney SUMMARY With the suspension of Ordinance No. 1907 as a result of the successful referendum petition, the City Council is required to either rescind Ordinance No. 1907 or submit the Ordinance to the voters for approval. The Council's Subcommittee on Vacation Rentals is recommending the Council rescind Ordinance No. 1907 and commence a legislative process to adopt new regulations for vacation rentals that are not essentially the same as those provided in Ordinance No. 1907. RECOMMENDATION: 1. Adopt attached Ordinance rescinding Ordinance No. 1907. 2. Adopt Urgency Ordinance No. , "AN INTERIM URGENCY ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING AND RESTATING CHAPTER 5.25 OF, AND ADDING SECTION 93.23.16 TO, THE PALM SPRINGS MUNICIPAL CODE RELATING TO VACATION RENTALS. (4/5ths Vote Required)" 3. Introduce and refer to the Planning Commission for review and comment, Ordinance No. "AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING AND RESTATING CHAPTER 5.25 OF, AND ADDING SECTION 93.23.16 TO, THE PALM SPRINGS MUNICIPAL CODE RELATING TO VACATION RENTALS.". STAFF ANALYSIS: On December 14, 2016, the City Council adopted Ordinance No. 1907, entitled "AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING AND RESTATING CHAPTER 5.25 OF THE PALM SPRINGS MUNICIPAL CODE RELATING TO VACATION RENTALS." On January 12, 2017, a referendum petition was submitted, REFERENDUM AGAINST AN ORDINANCE PASSED BY THE CITY REM NO. City Council Staff Report December 2, 2015-- Page 2 Vacation Rental Ordinances COUNCIL ORDINANCE NO. 1907. As noted in the Staff Report regarding the Referendum that is also on the Council Agenda for February 15, 2017, the referendum petition achieved a sufficient number of signatures to require the City Council to reconsider Ordinance No. 1907. As provided for in Elections Codes section 9237 and 9241, the City Council rescind Ordinance No. 1907 or submit Ordinance No 1907 to the voters at the next regular municipal election, which is scheduled for November 8, 2017. Ordinance No. 1907 is now suspended and will remain unenforceable until the voters approve it. The Council's Subcommittee on Vacation Rentals has reviewed Ordinance No. 1907 and has discussed the various alternatives. The Subcommittee has also reviewed and prepared an alternative Vacation Rental ordinance for the Council's consideration. The Subcommittee recommends the following actions: 1. Rescind Ordinance No. 1907; 2. Adopt an Interim Urgency Ordinance regarding Vacation Rentals; and 3. Introduce an Ordinance regarding Vacation Rentals and refer the ordinance to the Planning Commission for its review and recommendation. The Subcommittee is concerned that the suspension of Ordinance 1907 may create a vacuum where there may be a flood of applications for vacation rental certificates without due regard for the constraints and limits in the new, revised regulatory approach provided in the interim urgency and permanent ordinances. The new ordinances contemplate certain grandfather provisions that would allow owners of existing vacation rentals to continue such uses; but such owners would not be able to add new vacation rentals to the grandfathered inventory. Adoption of the Interim Urgency Ordinance would minimize this threat. Staff further notes that the new ordinances (both the interim urgency ordinance and the permanent ordinance) are not essentially the same as the suspended Ordinance No. 1907. Ordinance 1907's prohibition on multiple ownerships contained an amortization period that would require Owners to dispose of vacation rental properties by the end of the amortization period. As noted above, the new ordinances grandfathers all existing ownerships thereby allowing Owners to continue to operate vacation rental properties they currently own until they sell or otherwise choose to dispose of each property. Ordinance 1907 allowed a maximum of 32 vacation rental contracts per property; this Ordinance allows an additional 4 vacation rental contracts during the summer months. Ordinance 1907 provided exceptions from certain occupancy limitations as applied to estate homes; this Ordinance includes vacation rental estate homes as a use subject to a land use permit coupled with an administrative review before the Planning Commission under certain circumstances. This Ordinance also includes additional requirements on Owners and their agents and representatives, including periodic training and testing, prohibitions on gardening and property maintenance on weekends, 02 City Council Staff Report December 2, 2015-- Page 3 Vacation Rental Ordinances requires face to face meetings with a Responsible Party, and securing written acknowled ements of rules and regulations from all guests. Douglas olland David H. Ready, Esq., P City Attorney City Manager Attachments: Ordinance Rescinding Ordinance No. 1907 Interim Urgency Ordinance No. Ordinance No. 03 ORDINANCE NO. AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, RESCINDING ORDINANCE NO. 1907. City Attorney's Summary This Ordinance rescinds Ordinance No. 1907. The City Council of the City of Palm Springs ordains: SECTION 1. Ordinance No. 1907 is rescinded and is no long in effect or enforceable. SECTION 2. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law and this Ordinance, suspended as a result of a qualified referendum petition, shall take effect immediately upon its adoption. PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 15TH DAY OF FEBRUARY, 2017. ROBERT MOON, MAYOR ATTEST: KATHIE HART, INTERIM CITY CLERK 04 ORDINANCE NO. AN INTERIM URGENCY ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING AND RESTATING CHAPTER 5.25 OF, AND ADDING SECTION 93.23.16 TO, THE PALM SPRINGS MUNICIPAL CODE RELATING TO VACATION RENTALS. (415ths Vote Required) CityAttorney's Summary Ordinance No. 1907 of the City amended and restated the City's adopted Vacation Rental Ordinance. Ordinance No. 1907 imposed and provided additional restrictions on occupancy and use of vacation rental properties in Palm Springs. Ordinance No. 1907 was the subject of a successful referendum petition and is has been suspended. This urgency Ordinance reconsiders the subject matter of Ordinance No. 1907 and provides restrictions on occupancy and use of vacation rental properties different and complimentary to restrictions initially included in Ordinance No. 1907, and provides additional enforcement oversight. The City Council of the City of Palm Springs ordains: SECTION 1. Chapter 5.25 of the Palm Springs Municipal Code is amended to read: Chapter 5.25 VACATION RENTALS 5.25.010 Title. This Chapter shall be referred to as the "Vacation Rental Ordinance." 5.25.020 Findings. The City Council finds and determines as follows: (a) The primary use of single-family and multi-family dwelling units in the City of Palm Springs is the provision of permanent housing for full time and part time residents of the City who live and/or work in the City. Vacation Rentals and Homesharing are not uses specifically recognized in the City's Zoning Ordinance, nor are these uses identified as uses permitted in single-family or multi-family zones. Vacation Rentals and Homesharing are similar in character and use as hotels and other commercial short term uses and can only be permitted in single-family or multi-family zones if such uses are ancillary and secondary to the residential use of property. 05 Ordinance No. _ Page 2 (b) Incidents involving excessive noise, disorderly conduct, vandalism, overcrowding, traffic congestion, parking congestion, and the accumulation of refuse, require response from police, fire, paramedic, and other City services associated with this secondary, ancillary, commercial use escalates the demand for City services, create adverse impacts in the residential areas of the City, and adversely affects the City's residential neighborhoods. Vacation Rentals and Homesharing use in residential neighborhoods may have effects that can best be addressed through an appropriate city regulatory program. (c) The purpose of this Chapter is to establish a regulatory program for Vacation Rental and Homesharing lodging, with appropriate standards that regulate vacation rental of residential property, minimize adverse effects of vacation rental uses on surrounding residential neighborhoods, ensure that vacation rentals and homesharing are ancillary and secondary uses of residential property 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. (d) Limiting Vacation Rental and Homesharing lodging to single-family dwelling units subject to the regulations provided in this Chapter and prohibiting Vacation Rental and Homesharing lodging in apartments will safeguard, preserve, and protect residential housing stock in the City. (e) The adoption of a comprehensive code to regulate issuance of, and attach conditions to, Registration Certificates for Vacation Rental and Homesharing lodging within single-family residential neighborhoods 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 on residential neighborhoods. (f) 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. 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 in a multi-family development 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 in a multi-family development of three (3) or more dwelling units. 06 Ordinance No. Page 3 "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. "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. "Contract" means an agreement or evidence of any tenancy that allows or provides for the vacation rental of property. "Daytime occupancy" means the hours between 10:00 am and 10:00 pm. "Daytime occupants" mean the guests who may occupy a Vacation Rental during a daytime occupancy. "Enforcement Official" means the City Manager, the Police Chief, the Fire Marshall, the Building Official, or one or more of their respective designees. "Exclusive listing arrangement" means a written agreement between an Owner and an agent or representative where the agent or representative has the sole and exclusive right to rent or lease a Vacation Rental unit to any person and the Owner is prohibited from renting or leasing the Vacation Rental unit except through the Owner's agent or representative. "Estate Home" means a single family dwelling with five or more bedrooms located on property zoned R-1-B, R-1-A, R-1-AH, or G-R-5. "Good cause" for the purposes of denial, suspension, revocation, imposition of conditions, renewal, and reinstatement of a Vacation Rental Registration Certificate, means (1) the Applicant, Owner, the Owner's Agent, or the Local Contact Person has failed to comply with any of the terms, conditions, or provisions of this Chapter or any relevant provision of this Code, State law, or any rule or regulation promulgated thereunder; (2) the Applicant, Owner, Owner's Agent, or Local Contact Person has failed to comply with any special conditions that were placed upon the Vacation Rental 07 Ordinance No. Page 4 Registration Certificate by the Enforcement Official; or (3) the Vacation Rental has been operated in a manner that adversely affects the public health or welfare or the safety of the immediate neighborhood in which the Vacation Rental is located. "Good Neighbor Brochure" means a document prepared by the Enforcement Official that summarizes general rules of conduct, consideration, and respect, including without limitation provisions of the Palm Springs Municipal Code applicable to or expected of guests to the City. "Homeshare Interest" means a portion of an Owner's home that is subject to homesharing as provided in this Chapter. "Homesharing" means an activity whereby the Owner hosts visitors in the Owner's home, for compensation, for periods of twenty-eight (28) consecutive days or less, while the Owner lives on-site and in the home, throughout the visitor's stay. "Hotline" means the telephonic service operated by or for the City for the purpose of receiving complaints regarding the operation of any Vacation Rental and the forwarding of such complaints to the appropriate city enforcement officials or, if applicable, the Local Contact Person. For the purposes of this Chapter, the term "Hotline" also includes any contact in person or by telephone, email, 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 residential legal lot of record 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 08 Ordinance No. Page 5 occupants of the unit and/or their guests with all provisions of this Chapter and/or this code. "Third Quarter" means the entire months of July, August, and September in one calendar year. "Vacation Rental" means a single-family dwelling, 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. 5.25.040 Registration Certificate Required. (a) The operation of a Vacation Rental or a Homeshare Interest without a Vacation Rental Registration Certificate is prohibited. (b) A Vacation Rental Registration Certificate shall not be issued to any Business Entity other than a limited liability company. A natural person, limited liability company, or personal or family trust shall not maintain any financial interest in more than one Vacation Rental. For this purpose, financial interest includes both legal and beneficial ownership as well as any arrangement that provides for receipt of any portion of the revenues generated by the Vacation Rental. An Owner shall only be issued, and can only maintain, one Vacation Rental Registration Certificate at any time. (c) The provisions of Subsection (b) of this Section shall not apply to or be enforced against any Owner who operates a Vacation Rental pursuant to a valid Vacation Rental Registration Certificate issued prior to January 10, 2017 and shall only apply to each specific Vacation Rental owned by such Owner as of January 10, 2017 and only so long as such Owner for each Vacation Rental complies with the provisions of this Code. The purpose of this exception is to afford current owners of vacation rental property a reasonable opportunity to recoup costs reasonably invested for vacation rental use and which may not have been recouped during the period of vacation rental use and which cannot be recouped once the vacation rental use is terminated. (d) Each Owner of a Vacation Rental who rents, exchanges, trades, gifts, or grants such Vacation Rental for a period of twenty-eight (28) consecutive days or less shall fully comply with all provisions of this Chapter related to the use and occupancy of a Vacation Rental, and the operational requirements, provided in this Chapter. Each 09 Ordinance No. Page 6 rental, exchange, trade, gift, and grant of a stay of less than twenty-eight (28) days shall count as one Contract. (e) No Owner of residential property in the City shall rent any Homeshare Interest for a period of twenty-eight consecutive days or less without a valid Rental Registration Certificate for Homesharing pursuant to this Chapter for such Homesharing Interest. (f) A copy of the current Registration Certificate as issued by the City and the maximum number of guests allowed on the premises shall be displayed in a clear and legible manner in a conspicuous and easily accessible location in the unit and on all advertising related to each Vacation Rental or Homesharing Interest, including without limitation, web based advertising, hosting platform, print media, and television. (g) The issuance and or renewal of a Registration Certificate shall be deemed evidence that the holder of such Registration Certificate has registered a vacation rental property with the City and that the holder acknowledges the holder's obligation to comply with all provisions of this Chapter and the Code. The issuance of a Registration Certificate shall not be construed as bestowing or granting any vested right or entitlement. 5.25.050 Agency. (a) An Owner may retain an agent with an exclusive listing arrangement or a representative to assist in the compliance with the requirements of this Chapter, including, without limitation, the filing of a complete Vacation Rental registration, the management of the Vacation Rental unit or units, and compliance with the requirements of this Chapter including the collection and payment to the City of all transient occupancy taxes due and payable on the Vacation Rental unit. The Owner and any such agent or representative of Owner must have the authority to evict any tenant, resident, or guest permitted to reside at the Vacation Rental for violation of any provision of this Chapter or regulation thereof. Except as provided in Subsection (b) of this Section and notwithstanding any agency relationships between an Owner and an agent or representative, the Owner of the Vacation Rental unit or units shall execute all applications and documentary requirements as provided in this Chapter and shall remain responsible for compliance with the provisions of this Chapter. The failure of an agent to comply with this Chapter shall not relieve the Owner of the Owner's obligations under the provisions of this Chapter. (b) In the event an Owner enters into an exclusive listing arrangement, the Vacation Rental registration certificate may be secured, and the transient occupancy registration certificate requirements provided in this Chapter may be performed, by the agent or representative and not by the Owner; however, the agent or representative shall separately account all revenues and costs on a per property basis, including without limitation transient occupancy taxes and the gross rent amounts used to calculate such taxes. 10 Ordinance No. Page 7 5.25.060 Vacation Rental Registration Requirements. (a) Prior to use of a property as a Vacation Rental, and annually thereafter, the applicant shall register the property as a Vacation Rental with the City on a registration form furnished by or acceptable to the Enforcement Official and signed by the applicant under penalty of perjury. Each application shall contain the following information: (1) The name, address, and telephone number of the Owner of the unit for which the Vacation Rental registration certificate is to be issued. The name, address and telephone numbers of any other natural persons, limited liability companies or personal or family trusts that hold any financial interests in the Vacation Rental as well as copies of legal documents creating such financial interests. (2) The name, address, and telephone number of the exclusive listing agent, if any, of the Owner of the unit. (3) The name, address, and twenty-four-hour telephone number of the Local Contact Person and verification that the Local Contact Person can respond in- person to the site of the Vacation Rental within thirty (30) minutes. The Local Contact Person may only use the address of the Vacation Rental if the Local Contact Person will be present at the unit for the duration of each Contract. (4) The address of the residential property proposed to be used as a Vacation Rental. (5) The number of bedrooms and the applicable overnight and daytime occupancy limit of the unit consistent with the provisions of Section 5.25.070 (c). (6) Evidence of a valid business license issued by the City for the separate business of operating Vacation Rentals or submission of a certificate that Owner is exempt or otherwise not covered by the City's Business Tax Ordinance (Division II, Title 3 of the Palm Springs Municipal Code)for such activity. (7) Evidence of a valid transient occupancy registration certificate issued by the City for the Vacation Rental unit. (8) Acknowledgement of receipt and inspection of a copy of all regulations pertaining to the operation of a Vacation Rental. � 1 Ordinance No. Page 8 (9) Executed indemnification and hold harmless agreement in a form approved by the City Attorney, agreeing to indemnify, save, protect, hold harmless, and defend the City of Palm Springs, the City Council of the City of Palm Springs, individually and collectively, and the City of Palm Springs representatives, officers, officials, employees, agents, and volunteers from any and all claims, demands, damages, fines, obligations, suits, judgments, penalties, causes of action, losses, liabilities, or costs at any time received, incurred, or accrued as a result of, or arising out of Owner's actions or inaction in the operation, occupancy, use, and/or maintenance of the Property. (10) Evidence of insurance coverage as required under Section 5.25.070(t) of this Chapter. (11) Completion of building, fire, and safety inspection and completion of any corrections identified by an Enforcement Official. Such inspections shall include a review of the premises for compliance with the operational requirements of this Chapter, including without limitation determining the total number of qualified bedrooms. (12) Written acknowledgement in a form approved by the Enforcement Official that there are no covenants or other deed restrictions on the property that prohibit or limit the use of the property as a Vacation Rental. The Enforcement Official may accept a written consent from the governing board of a homeowners' association with jurisdiction over the property in satisfaction of this requirement. (13) Such other information as the Enforcement Official deems reasonably necessary to administer this Chapter. (b) The registration of a Vacation Rental shall be accompanied by a fee established by resolution of the City Council; provided, however, the fee shall be no greater than necessary to defer the cost incurred by the City in administering the provisions of this Chapter. (c) A Vacation Rental registration certificate shall be denied if a registration certificate for the same unit and issued to the same Owner has previously been revoked pursuant to Section 5.25.090. The denial of a registration certificate for any reason may be appealed in accordance with to the provisions of Chapter 2.50 of the Municipal Code. (d) Upon Change of Property Ownership, the Registration Certificate shall expire and the property shall not be used as a Vacation Rental until the new or successor Owner is issued a Vacation Registration Certificate for the property. The provisions of Section 5.25.040(b) shall be applicable to any such new or successor Owner. In the 12 Ordinance No. Page 9 event of a change in agent or the occurrence of any other material fact set forth in the annual registration, a new registration for a Vacation Rental shall be required to continue operation of the Vacation Rental and within seven days of said change the Owner or his or her exclusive listing agent shall submit the required registration and fee. (e) The Owner or his or her exclusive listing agent shall cancel the Vacation Rental Registration Certificate within seven (7) days of the date the Vacation Rental is sold or otherwise disposed of or after an event that results in the unit no longer in use as a Vacation Rental. (f) Each applicant for a Registration Certificate, including without limitation the Owner and the Owner's agent and/or representative, shall annually attend and/or participate in an educational program devised and administered by the City Manager for the purpose of training applicants for vacation rental registration certificates, or renewals thereof, on their respective roles and responsibilities in the successful administration and compliance with the City's Vacation Rental program. Each applicant shall annually take a test prepared and administered by the City Manager regarding each applicant's role and responsibilities in the Vacation Rental Program and Registration Certificates will not be issued or renewed until the applicant has successfully passed such test. 5.25.070 Operational Requirements and Standard Conditions. (a) The Owner shall use reasonably prudent business practices to ensure that the Vacation Rental unit complies with all applicable codes regarding fire, building and safety, health and safety, and all other relevant laws. (b) No more than thirty-two (32) Contracts for Vacation Rental use of a property shall be allowed or provided in any calendar year; however, up to four (4) additional Contracts shall be allowed or provided for the Third Quarter of a calendar year so long as the entire term of each such Contract occurs during such Third Quarter A Contract includes any occupancy of a property subject to a Vacation Rental registration certificate by persons other than the Owner when the Owner is not present during such occupancy, regardless of whether compensation is paid for such occupancy or whether occupancy is evidenced in an agreement or document. (i) For the first year a Vacation Registration Certificate is in effect, the thirty- two (32) contract limit shall be prorated based on the number of months that elapse prior to the subsequent calendar year and in the event any portion of the Third Quarter occurs during the first year a Vacation Registration Certificate is in effect, the four (4) additional Contracts may be used during such Third Quarter. (ii) Notwithstanding the restrictions imposed by this Subparagraph, the Owner at the time an application or renewal is submitted can designate and file with the Enforcement Official the names of up to five (5) persons who may occupy the Vacation Rental unit at no cost and without requiring the presence of the Owner 13 Ordinance No. Page 10 on the premises of the Vacation Rental. Each such occupancy shall fully comply with all other provisions of this Chapter. (c) The Owner shall limit overnight occupancy of the Vacation Rental unit to a specific number of occupants, with the maximum number of occupants as no more than two (2) persons per bedroom within each Vacation Rental unit and a maximum of no more than eight (8) persons total within the Vacation Rental unit, except that Owner may allow up to two (2) minor children, age 12 or under, to occupy the Vacation Rental in addition to the maximum number of occupants otherwise provided in this Subsection. The number of bedrooms in a Vacation Rental shall be verified by the Enforcement Official using County Assessor and/or City Building records and/or a physical inspection of the premises, prior to the issuance of a Registration Certificate. The Owner may also allow up to four (4) daytime occupants in addition to the total number of guests allowed for overnight occupancy pursuant to this Subsection. No more than one (1) automobile per bedroom shall be allowed for each Vacation Rental. Advertising and/or renting one or more Vacation Rentals as part of a cluster or compound is prohibited. (d) The Owner of an Estate Home shall be exempt from the limitations of Subsection (c) of this Section for up to two (2) additional bedrooms for housing to accommodate no more than two (2) persons for each additional bedroom approved pursuant to the Exemption up to a maximum of twelve (12) guests and up to two (2) minors age twelve (12) and under. (e) During the Rental Term each Vacation Rental unit is rented, the Owner, his or her agent, and/or the Local Contact Person designated by the Owner, after being contacted by the Enforcement Official, shall be available twenty-four hours per day, seven days per week, for the purpose of (1) responding by telephone within fifteen (15) minutes of complaints from or through the Hotline and (2) responding in-person within thirty (30) minutes to any additional or successive complaints regarding the condition, operation, or conduct of occupants of the Vacation Rental. (f) The Owner shall use reasonably prudent business practices to ensure that the occupants and/or guests of the Vacation Rental unit do not create unreasonable noise disturbances, engage in disorderly conduct, or violate provisions of the Municipal Code or any state law. (g) Notwithstanding the provisions of Section 11.74.043, any radio receiver, musical instrument, phonograph, loudspeaker, sound amplifier, or any machine or device for the producing or reproducing of any sound shall be conducted within a fully enclosed Vacation Rental unit and shall not be audible at the property line of the Vacation Rental. (h) Prior to occupancy pursuant to each separate occasion of rental of a Vacation Rental, the Owner or the Owner's agent or representative shall enter into a written Contract with a Responsible Person where (1) the Responsible Person will provide the Responsible Person's name, age, address, and a copy of a government issued identification; (2) establishes and sets out the terms and conditions of the Contract, � 4� Ordinance No. Page 11 including without limitation occupancy limits, noise prohibitions, and vehicle parking requirements; (3) requires the Responsible Person to acknowledge and agree that he or she is legally responsible for compliance of all occupants of the Vacation Rental or their guests with all provisions of this Chapter and/or the Municipal Code; (4) the Owner or the Owner's Agent provides a copy of the "Good Neighbor Brochure" to the Responsible Person; (5) the Responsible Person provides a list of all guests by name; and (6) the Responsible Person provides a list of all guests' vehicles, including license plate numbers. Each Contract shall be maintained by the Owner or the Owner's Agent for a minimum of four (4) years and shall be readily available for inspection upon request of the Enforcement Official. A summary or abstract of the written Contract, in a form approved by the Enforcement Official, shall be filed with the Enforcement Official prior to occupancy, in a manner approved by the Enforcement Official, and shall be posted in a conspicuous location on the Vacation Rental property and shall be made available on site at the request of an Enforcement Official. (i) The Owner, or his or her agent, shall, upon notification by the Enforcement Official that the responsible person, including any occupant and/or guest of the Vacation Rental unit, has created unreasonable noise or disturbances, engaged in disorderly conduct, or committed violations of provisions of the Municipal Code or any state law, shall promptly respond in a timely and appropriate manner to prevent a recurrence of such conduct by those occupants or guests, and when requested by the City Enforcement Official, evict one or more of the guests. For the purpose of this Subsection and Subsection Q) below, the phrase "in a timely and appropriate manner" shall mean in-person contact within thirty (30) minutes for any call from the Enforcement Official. Q) Failure of the Owner or his or her agent to respond to calls or complaints regarding the condition, operation, or conduct of occupants of the Vacation Rental in a timely and appropriate manner shall be grounds for imposition of penalties as set forth in this Chapter. It is not intended that an Owner, agent, or Local Contact Person act as a peace officer or place himself or herself in an at-risk situation. (k) Trash and refuse shall not be left stored within public view, except in proper containers for the purpose of collection by the collectors and between the hours of five a.m. and eight p.m. on scheduled trash collection days. The Owner of the Vacation Rental unit shall use reasonably prudent business practices to ensure compliance with all the provisions of Chapter 6.04 of the Municipal Code (Waste Disposal and Diversion), and shall provide "walk-in service" or as may otherwise be approved by the Enforcement Official. (1) All home repairs (external and internal), garden and yard maintenance, and pool cleaning and maintenance shall not be performed between the hours of 5:00 pm on Friday through 8:00 am on Monday, except in the case of an emergency or the occurrence of an unexpected event that reasonable warrants a timely or immediate response. Repairs and maintenance shall not be scheduled in advance to occur during the days and time specified in this subsection. Ordinance No. Page 12 (m) The Owner or the Owner's agent or representative shall meet the Responsible Party in person at the Vacation Rental prior to the commencement of the occupancy and verbally explain and describe all rules and regulations applicable to the use of the property as a Vacation Rental and the responsibilities of the Responsible Party to the neighbors and the City as well as the Owner. The Owner shall secure the signature of the Responsible Party and all guests to a statement of rules and regulations prepared by the City Manager. (n) The Owner of the Vacation Rental unit shall post a copy of the Registration Certificate and a copy of the conditions set forth in this Section, including all rules and regulations applicable to the use of the property as a Vacation Rental, on the inside of each entry door or in a conspicuous location near each entry door on the Vacation Rental. (o) The Owner shall provide each occupant of a Vacation Rental with the following information prior to occupancy of the unit and/or post such information in a conspicuous place within the unit: (1) The name of the managing agency, agent, rental manager, Local Contact Person, or Owner of the unit, and a telephone number at which that party may be reached on a twenty-four-hour basis; (2) The maximum number of occupants permitted to stay in the unit; (3) The trash pick-up day and applicable rules and regulations pertaining to leaving or storing trash or refuse on the exterior of the property; (4) Notification that any radio receiver, musical instrument, phonograph, loudspeaker, sound amplifier, or any machine or device for the producing or reproducing of any sound shall only be operated within a fully enclosed Vacation Rental unit and shall not be audible at the property line of the Vacation Rental; (5) Notification that the occupant may be cited or fined by the City and/or immediately evicted by the Owner pursuant to state law, in addition to any other remedies available at law, for creating a disturbance or for violating any provision of this Chapter; (6) Notification that failure to conform to the occupancy requirements of the Vacation Rental unit is a violation of this Chapter; (7) A copy of this Chapter of the Palm Springs Municipal Code, as may be amended from time to time. 16 Ordinance No. Page 13 (p) The use of a Vacation Rental unit shall not violate any applicable conditions, covenants, or other restrictions on real property. (q) The Owner shall comply with all provisions of Chapter 3.24 of the Municipal Code concerning transient occupancy taxes, including, but not limited to, submission of a monthly return for each Vacation Rental in accordance with Section 3.24.080. The monthly return shall be filed each month regardless of whether the Vacation Rental unit was rented or not during each such month. (r) The City Manager shall have the authority to impose additional standard conditions, applicable to all Vacation Rental units or identifiable classes of Vacation Rentals, as necessary, to achieve the objectives of this Chapter. A list of all such additional standard conditions shall be maintained and on file in the Office of the City Clerk and such offices as the City Manager designates. (s) Notwithstanding the provisions of Subsection (p) above, upon a determination of Good Cause, the City Manager may impose additional or special standards or requirements for placement or imposition of special conditions or performance standards for Owners, Owner's Agents, Local Contact Persons, and their affected Vacation Rentals. (r) The standard conditions may be modified by the Enforcement Official upon request of the Owner or his or her agent based on site- specific circumstances for the purpose of allowing reasonable accommodation of a Vacation Rental. All requests must be in writing and shall identify how the strict application of the standard conditions creates an unreasonable hardship to a property such that, if the requirement is not modified, reasonable use of the property for a Vacation Rental would not be allowed. Any hardships identified must relate to physical constraints to the subject site and shall not be self-induced or economic. Any modifications of to the standard conditions shall not further exacerbate an already existing problem. (t) The City Manager shall have the authority to establish administrative rules and regulations, which may include, but are not limited to, registration conditions, reporting requirements, inspection frequencies, enforcement procedures, advertising restrictions, disclosure requirements, or insurance requirements, consistent with the provisions of this Chapter, for the purpose of implementing, interpreting, clarifying, carrying out, furthering, and enforcing the requirements and the provisions of this Chapter. No person shall fail to comply with any such regulation. A copy of such administrative rules and regulations shall be on file in the Office of the City Clerk. (u) Owner shall procure, maintain, and pay premiums for commercial insurance policies that cover short term rental of property for each Vacation Rental with minimum limits as may be established by the City Manager from time to time. (v) Owner shall annually secure a building and fire and safety inspection prior to renewal of the Vacation Registration Certificate. 17 Ordinance No. Page 14 5.25.075 Specific Prohibitions. (a) No person or entity shall offer or provide an 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, an apartment owner, an apartment manager, or a representative of the apartment owner or manager, shall evict any tenant or otherwise terminate a lease for the purpose of converting an apartment to a vacation rental or in anticipation of converting an 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 apartment owner, 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 apartment owner, apartment manager, or representative liable to the tenant for actual or punitive damages, including damages for emotional distress, in a civil action for wrongful eviction. The tenant may seek injunctive relief and money damages for wrongful eviction and the prevailing party in an action for wrongful eviction shall recover costs and reasonable attorneys' fees. (d) The provisions of Subsection (a) of this Section shall not apply to or be enforced against any person or entity who rents an apartment or portion thereof pursuant to a valid vacation 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 apartments and which may not have been recouped during the period of vacation rental use of the the 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. Ed. Note. Subsection (d) of Section 5.25.075 shall be deemed repealed and no longer in effect as of 12:01 am on January 1, 2019 and all persons and entities shall fully comply with the provisions of Subsection (a) of Section 5.25.075 of this Code. See § 4 of Ord. 1902 (2016). i8 Ordinance No. Page 15 5.25.078 Homesharing Authorization. (a) The Notwithstanding any provision of this Chapter to the contrary, homesharing shall be authorized in the City, provided that the Owner complies with each of the following requirements: (1) Obtains and maintains at all times a Vacation Rental Registration Certificate for Homesharing; (2) Operates the Homesharing Interest in compliance with all Vacation Registration Certificate for Homesharing conditions, which may be imposed by the Enforcement Official to effectuate the purpose of this Chapter; (3) Collects and remits Transient Occupancy Tax to the City and complies with all City Transient Occupancy Tax requirements as set forth in this Code; (4) Takes responsibility for and actively prevents any nuisance activities that may take place as a result of homesharing activities; (5) Complies with all applicable laws, including all health, safety, building, and fire protections laws; (6) Complies with the regulations promulgated pursuant to this Chapter. (b) In the event the Owner of a Homeshare Interest does not live on-site, in the home, and is not able to respond within thirty (30) minutes to complaints regarding the condition, operation, or conduct of occupants of the Homesharing Interest, the property shall be deemed a Vacation Rental and Owner shall be required to fully comply with the provisions of this Chapter relating to Vacation Rentals, including without limitation, securing a Vacation Rental Registration Certificate. 5.25.080. Audit. Each Owner and agent or representative of any Owner shall provide the Enforcement Official with access to each Vacation Rental and the books, records, documents, papers, tax returns, and bank accounts at any time during normal business hours as the Enforcement Official may determine are necessary or convenient for the purpose of inspection or audit to determine that the objectives and conditions of this Chapter are being fulfilled. 19 Ordinance No. Page 16 5.25.085 Disclosure of Business Entitites, Limited Liability Companies, and Personal or Family Trusts On or before June 1, 2017, all Business Entities, limited liability companies, and personal or family trusts owning one or more Vacation Rentals shall disclose to the Enforcement Official the names, relevant contact information, and any such other information as may be requested by the Enforcement Official of each natural person holding the legal, equitable, and/or beneficial interest of each such Business Entitiy, limited liability company, or personal or family trust and the address of each Vacation Rental owned by each such Business Entity, limited liability company, or personal or family trust. Each Business Entity that complies with the provisions of this Section prior to June 1, 2017, shall, prior to June 1, 2018 transfer each Vacation Rental to a natural person who can otherwise comply with the provisions of this Chapter or cease operating any Vacation Rental properties owned by the Business Entity as Vacation Rentals. Any Business Entity that fails to comply with the disclosure requirements provided in this Subsection, shall cease operating all Vacation Rental properties owned by the Business Entity as Vacation Rentals no later than June 1, 2017. 5.25.090 Violations. (a) Any person who violates a provision of this Chapter is subject to criminal sanctions and administrative penalties pursuant to Chapters 1 .01 and 1.06 of this Code and the specific penalties as provided in this Chapter. Any person who uses, or allows the use of, residential property in violation of the provisions in this Chapter is guilty of a misdemeanor for each day in which such residential property is used, or allowed to be used, in violation of this Chapter. An administrative citation issued pursuant to Chapter 1.06 for a first violation shall be five hundred dollars ($500.00) and each subsequent violation shall be one thousand ($1 ,000.00) dollars. Each administrative citation for a violation of any provision of this Chapter shall be levied or assessed against the Owner. (b) Upon the third violation in any twelve month period, the City Manager shall suspend the Vacation Registration Certificate for two (2) years. (c) Any person who operates a Vacation Rental without a Vacation Registration Certificate, shall be liable to the City for the payment of transient occupancy tax pursuant to the provisions of the Palm Springs Municipal Code Chapter 3.24, including without limitation penalties and interest, payment of an administrative fine in the amount of Five Thousand Dollars ($5,000.00), and permanent ineligibility to operate a Vacation Rental in the City. In the event the person continues to operate a Vacation Rental without a Vacation Registration Certificate, the person shall be liable for an administrative fine in the amount of Ten Thousand Dollars ($10,000.00) and any successive violations shall be subject to fines provided in an escalation formula established by the City Council by resolution. (d) Any person who advertises a Vacation Rental without including the Vacation Registration Certificate in any advertising for such Vacation Rental, or operates a 40 Ordinance No. Page 17 Vacation Rental without a contract, or without providing the City with a summary or abstract of such contract, or without timely tendering full monthly payments of transient occupancy tax, shall pay a fine in the amount of Two Thousand, Five Hundred Dollars ($2,500.00) and the Owner's Vacation Registration Certificate shall be suspended for six (6) months for a first offense and shall pay a fine in the amount of Five Thousand Dollars ($5,000.00) and the Owner's Vacation Registration Certificate shall be revoked for a second offense. Any subsequent violations will be subject to the provisions of Subsection (c) of this Section: (e) The failure of an Owner or the Owner's agent or representative to comply with an order of any police officer shall result in the revocation of the Vacation Registration Certificate. (f) The appeal and hearing provisions of Chapter 2.50 shall apply to any revocation or suspension of a Registration Certificate. (g) Any person who fails to pay any fee or charge provided in this Chapter within the time required, shall pay a penalty in the amounts established by the City Council by resolution. Such penalty may also include interest from the date on which the fee or charge became due and payable to the City until the date of payment. (h) The filing of knowingly false claims against a Vacation Rental or the guests staying in a Vacation Rental is prohibited and shall be punishable by administrative fines as provided in Chapter 1.06 of this Code. (i) In addition to, and not in lieu of, any other remedy allowed by law, all remedies prescribed under this Chapter are cumulative and the election of one or more remedies does not bar the City from the pursuit of any other remedy, criminal, civil, or administrative which may be pursued by the City to enforce this Chapter and/or address any violation of this Code or to remedy any other public nuisance. 5.25.100 Requirements Not Exclusive. The requirements of this Chapter shall be in addition to any license, permit, or fee required under any other provision of this Code. The issuance of a Registration Certificate or any permit pursuant to this Chapter shall not relieve any person of the obligation to comply with all other provisions of this Code pertaining to the use and occupancy of a Vacation Rental or the property on which it is located. SECTION 2. Section 93.23.16 is added to the Palm Springs Municipal Code to read: 93.23.16. Special Standards for Vacation Rentals of Estate Homes A. The vacation rental of an Estate Home shall be deemed a use permitted pursuant to a land use permit under the provisions of Palm Springs Municipal Code 21 Ordinance No. Page 18 Section 94.02.01 . For the purposes of this Section, the terms "Estate Home" and "Owner" shall have the meanings provided in Section 5.25.030 of this Code. B. Any Owner of an Estate Home with an active vacation rental certificate in full force and effect on February 8, 2017, shall be deemed in compliance with this Subsection and shall be issued a land use permit for such Estate home from the Director of Planning Services subject to standard conditions of approval consistent with the provisions of this Chapter and the Zoning Ordinance. Each application by an Owner for the vacation rental of an Estate Home after February 8, 2017, shall be subject to the applicant applying for and receiving a land use permit under the provisions of Section 94.02.01 of this Code. Any land use permit issued for the vacation rental of an Estate Home shall be issued to the Owner, subject to the provisions of this Chapter and such additional conditions as may be required pursuant to Section 94.02.01 of this Code. Any land use permit issued for a vacation rental of an Estate Home shall not run with the land. C. Upon a determination by the City Manager of a third Qualified Complaint regarding the vacation rental of an Estate House, the land use permit for such vacation rental shall be subject to revocation or modification by the Planning Commission at a noticed public hearing to be held in the manner provided for in Section 94.09.00 of this Code. For the purpose of this Section, the term "Qualified Complaint' shall mean a complaint of behavior or conduct that unreasonably disturbs the quiet enjoyment of property by residents of lots adjoining the Estate House property, as reasonably determined by the City Manager or the designee of the City Manager. 1. The Commission shall, not less than ten (10) nor more than thirty (30) days after the notification of the Owner, hold a public hearing on the matter. 2. The Commission shall reach its decision within thirty (30) days after the conclusion of the public hearing. The decision shall set forth the findings of the Commission and any recommended conditions, including without limitation any time limit deemed necessary to protect the health, safety, and welfare of persons in the neighborhood and in the city as a whole. 3. The decision and findings shall be filed with the City Council within fifteen (15) days after they have been reached. A copy of the minutes thereof shall be mailed to the Owner. The action of the Commission shall be final unless appealed to the City Council. 4. The Commission shall consider the following issues and potential conditions in its review of a vacation rental of an Estate Home. a. Regulation of use, b. Special yards, space and buffers, 22 Ordinance No. Page 19 c. Fences and walls, d. Surfacing of parking areas subject to city specifications, e. Requiring street, service road or alley dedications and improvements or appropriate bonds, f. Regulation of points of vehicular ingress and egress, g. Regulation of signs, h. Requiring landscaping and maintenance thereof, i. Requiring maintenance of the grounds, j. Regulation of noise, vibration, odors, etc., k. Regulation of time for certain activities, I. Time period within which the proposed use shall be developed, m. Duration of use, n. Dedication of property for public use, o. Limitation on the number of guests, p. Limitation on the number of vehicles, q. Imposition of building and/or safety requirements applicable to small hotels, r Such other conditions as will make possible the development of the city in an orderly and efficient manner and in conformity with the intent and purposes set forth in this Zoning Code, including but not limited to mitigation measures outlined in any applicable environmental assessment. SECTION 3. The City Council finds and determines that this Ordinance is not subject to the California Environmental Quality Act (Public Resources Code Section 21000 et seq.) pursuant to Section 15060(c)(2) and 15060(c)(3) of the State Guidelines, because the Ordinance will not result in a direct or reasonably foreseeable indirect physical change in the environment and is not a "project," as that term is defined in Section 15378 of the State Guidelines. In addition, The City Council also determines this 23 Ordinance No. Page 20 Ordinance consists of regulations intended to ensure that commercial short term rental use of residential property remains an ancillary and secondary use of residential property in the City and thereby preserve the residential character of the City's single- family and multi-family neighborhoods as identified in the City's adopted General Plan, and its concomitant Environmental Impact Report. Thus, to the extent there is any environmental impact from the adoption of this Ordinance, the City Council finds that the Environmental Impact Report for the adopted General Plan is the controlling environmental document. SECTION 4. Findings. The adoption of this Interim Urgency Ordinance is necessary for the immediate protection of the public peace, health, and safety by ensuring the timely and orderly consideration, adoption, and implementation of temporary vacation rental regulations to preserve the orderly marketing and rental of vacation rental properties in the City and the preservation of the peace and order of the homeowners who own and reside in homes adjacent to vacation rental properties and the neighborhoods in which vacation rentals operate. Ordinance No. 1907 was this Council's attempt to develop and implement modified regulations that would help ensure that vacation rental properties would be operated in a manner that would have less impact on neighborhoods and communities and reduce the disruption of single family neighborhoods through the introduction of extensive transient occupancies. Residents living in close proximity to the locations of vacation rental properties have expressed concerns to the City of excessive noise, disorderly conduct, overcrowding, traffic congestion, illegal vehicle parking, and the accumulation of refuse which has required an escalation in responses from City code enforcement, police, and other City service providers. With the suspension of Ordinance No. 1907, there is now a gap in the overall regulatory approach and ability to enforce consistent, uniform, comprehensive regulations. In accordance with Section 312 of the Palm Springs City Charter, the City Council of the City of Palm Springs finds and determines that the adoption of this Interim Urgency Ordinance is necessary to ensure the immediate protection of the public peace, health, and safety. SECTION 5. This Ordinance generally deals with the subject matter of Ordinance 1907, which was the subject of a referendum submitted on January 12, 2017. Ordinance 1907 is therefore suspended pending a determination of and action on the referendum. The City Council finds that this Ordinance is essentially different from Ordinance 1907 in that it contains modifications, amendments, and changes that are now endorsed by those who prepared, circulated, or supported the referendum petition. Specifically, Ordinance 1907's prohibition on multiple ownerships contained an amortization period that would require Owners to dispose of vacation rental properties by the end of the amortization period; this Ordinance grandfathers all existing ownerships thereby allowing Owners to continue to operate vacation rental properties they currently own until they sell or otherwise choose to dispose of each property. Ordinance 1907 allowed a maximum of 32 vacation rental contracts per property; this Ordinance allows an additional 4 vacation rental contracts during the summer months. Ordinance 1907 provided exceptions from certain occupancy limitations as applied to estate homes; this Ordinance includes vacation rental estate homes as a use subject to a land use permit 24 Ordinance No. Page 21 coupled with an administrative review before the Planning Commission under certain circumstances. This Ordinance also includes additional requirements on Owners and their agents and representatives, including periodic training and testing, prohibitions on gardening and property maintenance on weekends, requires face to face meetings with a Responsible Party, and securing written acknowledgements of rules and regulations from all guests. The City Council further notes that Ordinance 1907 was also a restatement of the Vacation Rental Ordinance in effect at the time Ordinance 1907 was adopted. The Council therefore finds that the provisions of the Code in effect at the time Ordinance 1907 was adopted and that were not changed or amended by Ordinance 1907 were not subject to the referendum and therefore were not matters the referendum proponents contested. SECTION 6. The City Manager is authorized to exercise reasonable administrative discretion in the implementation of this Ordinance during the first year this Ordinance is in effect, including without limitation phasing in of programs, policies, and practices consistent with the business needs of the City, any department, division, bureau, or section designated to enforce this Ordinance, and the overall responsibilities and priorities of the City Manager as provided by the City Council. SECTION 7. Any valid rental agreement for a Vacation Rental with occupancies in terms of number of guests and/or vehicles in excess of the requirements of Section 5.25.070(c) of this Ordinance, entered into between an Owner or an Agent with a renter and the renter has paid a deposit for such rental prior to November 30, 2016, shall be deemed consistent with the provisions of this Ordinance so long as such rental agreement and the Vacation Rental otherwise complies with the requirements of this Ordinance. In addition and notwithstanding any provisions to the contrary within Section 5.25.070(b)(ii), any holder of a Registration Certificate as of the effective date of this Chapter can submit a list of names as provided in Section 5.25.070(b)(ii) within thirty (30) days of such effective date. SECTION 8. Notwithstanding any provision to the contrary in this Ordinance, any limitation or prohibition regarding homes that would otherwise qualify as an estate home shall not be applicable or enforceable until the thirty-first (315) day after this Ordinance becomes effective and Contracts for such homes, fully executed prior to such date, shall be recognized as valid under this Ordinance. SECTION 9. The provisions of this Ordinance are severable. If any portion, section, subsection, paragraph, clause, sentence, phrase, work, or application of this Ordinance is for any reason held to be invalid by a decision of any court of competent jurisdiction, that decision shall not affect the validity of the remaining portions of this Ordinance. The City Council declares that it would have adopted this Ordinance and each and every portion, section, subsection, paragraph, clause, sentence, phrase, word, and application not declared invalid or unconstitutional without regard to whether any portion of this Ordinance or application thereof would be subsequently declared invalid. 25 Ordinance No. Page 22 SECTION 10. Effective Date. The City Council hereby declares, on the basis of the findings set forth in the Recitals and in Sections 4 and 5 above, that an urgency ordinance is warranted and that this Ordinance is necessary to preserve the public peace, health and safety. Accordingly, this Ordinance is adopted as an urgency ordinance and shall take effect and be in force immediately upon its adoption. This Ordinance shall expire on June 9, 2017 unless otherwise extended by action of the City Council prior to such date. PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 15TH DAY OF FEBRUARY, 2017. ROBERT MOON, MAYOR ATTEST: KATHIE HART, INTERIM CITY CLERK 2� ORDINANCE NO. AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING AND RESTATING CHAPTER 5.25 OF, AND ADDING SECTION 93.23.16 TO, THE PALM SPRINGS MUNICIPAL CODE RELATING TO VACATION RENTALS. City Attorney's Summary This Ordinance amends and restates in full the City's adopted Vacation Rental Ordinance. This Ordinance imposes additional restrictions on occupancy and use of vacation rental properties in Palm Springs different and complimentary to restrictions initially included in Ordinance No. 1907, and provides additional enforcement oversight. The City Council of the City of Palm Springs ordains: SECTION 1. Chapter 5.25 of the Palm Springs Municipal Code is amended to read: Chapter 5.25 VACATION RENTALS 5.25.010 Title. This Chapter shall be referred to as the "Vacation Rental Ordinance." 5.25.020 Findings. The City Council finds and determines as follows: (a) The primary use of single-family and multi-family dwelling units in the City of Palm Springs is the provision of permanent housing for full time and part time residents of the City who live and/or work in the City. Vacation Rentals and Homesharing are not uses specifically recognized in the City's Zoning Ordinance, nor are these uses expressly identified as uses permitted in single-family or multi-family zones. Vacation Rentals and Homesharing are similar in character and use as hotels and other commercial short term uses and can only be permitted in single-family or multi-family zones if such uses are ancillary and secondary to the residential use of property. This Ordinance confirms Vacation Rentals and Homesharing as ancillary and secondary uses of residential property in the City. (b) Incidents involving excessive noise, disorderly conduct, vandalism, overcrowding, traffic congestion, parking congestion, and the accumulation of refuse, require response from police, fire, paramedic, and other City services associated with this secondary, ancillary, commercial use escalates the demand for City services, create adverse impacts in the residential areas of the City, and adversely affects the 27 Ordinance No. Page 2 City's residential neighborhoods. Vacation Rentals and Homesharing use in residential neighborhoods may have effects that can best be addressed through an appropriate city regulatory program. (c) The purpose of this Chapter is to establish a regulatory program for Vacation Rental and Homesharing lodging, with appropriate standards that regulate vacation rental of residential property, minimize adverse effects of vacation rental uses on surrounding residential neighborhoods, ensure that vacation rentals and homesharing are ancillary and secondary uses of residential property 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. (d) Limiting Vacation Rental and Homesharing lodging to single-family dwelling units subject to the regulations provided in this Chapter and prohibiting Vacation Rental and Homesharing lodging in apartments will safeguard, preserve, and protect residential housing stock in the City. (e) The adoption of a comprehensive code to regulate issuance of, and attach conditions to, Registration Certificates for Vacation Rental and Homesharing lodging within single-family residential neighborhoods 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 on residential neighborhoods. (f) 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. 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 in a multi-family development 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 in a multi-family development of three (3) or more dwelling units. "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 28 Ordinance No. Page 3 greater in size, consists of four walls to the ceiling, at least one of which is located along an exterior wall with a window, and contains a built-in closet. "Business Entity" means a corporation, partnership, or other legal entity that is not a natural person or a personal or family trust or a limited liability company consisting solely of natural persons. "Change of Property Ownership" means the transfer of title from one person to another. "Cluster or Compound" means any two or more Vacation Rentals that operate on a unified or shared basis where residents of such Vacation Rentals have exclusive access to more than one Vacation Rental and/or the facilities of such Vacation Rentals, including by way of example, a swimming pool, tennis court, or cooking facilities. "Contract" means an agreement or evidence of any tenancy that allows or provides for the vacation rental of property. "Daytime occupancy" means the hours between 10:00 am and 10:00 pm. "Daytime occupants" mean the guests who may occupy a Vacation Rental during a daytime occupancy. "Enforcement Official" means the City Manager, the Police Chief, the Fire Marshall, the Building Official, or one or more of their respective designees. "Exclusive listing arrangement" means a written agreement between an Owner and an agent or representative where the agent or representative has the sole and exclusive right to rent or lease a Vacation Rental unit to any person and the Owner is prohibited from renting or leasing the Vacation Rental unit except through the Owner's agent or representative. "Estate Home" means a single family dwelling with five or more bedrooms located on property zoned R-1-B, R-1-A, R-1-AH, or G-R-5. "Good cause" for the purposes of denial, suspension, revocation, imposition of conditions, renewal, and reinstatement of a Vacation Rental Registration Certificate, means (1) the Applicant, Owner, the Owner's Agent, or the Local Contact Person has failed to comply with any of the terms, conditions, or provisions of this Chapter or any relevant provision of this Code, State law, or any rule or regulation promulgated thereunder; (2) the Applicant, Owner, Owner's Agent, or Local Contact Person has failed to comply with any special conditions that were placed upon the Vacation Rental Registration Certificate by the Enforcement Official; or (3) the Vacation Rental 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. 29 Ordinance No. Page 4 "Good Neighbor Brochure' means a document prepared by the Enforcement Official that summarizes general rules of conduct, consideration, and respect, including without limitation provisions of the Palm Springs Municipal Code applicable to or expected of guests to the City. "Homeshare Interest" means a portion of an Owner's home that is subject to homesharing as provided in this Chapter. "Homesharing" means an activity whereby the Owner hosts visitors in the Owner's home, for compensation, for periods of twenty-eight (28) consecutive days or less, while the Owner lives on-site and in the home, throughout the visitor's stay. "Hotline" means the telephonic service operated by or for the City for the purpose of receiving complaints regarding the operation of any Vacation Rental and the forwarding of such complaints to the appropriate city enforcement officials or, if applicable, the Local Contact Person. For the purposes of this Chapter, the term "Hotline" also includes any contact in person or by telephone, email, 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 residential legal lot of record 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. "Third Quarter" means the entire months of July, August, and September in one calendar year. 30 Ordinance No. Page 5 "Vacation Rental" means a single-family dwelling, 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. 5.25.040 Registration Certificate Required. (a) The operation of a Vacation Rental or a Homeshare Interest without a Vacation Rental Registration Certificate is prohibited. (b) A Vacation Rental Registration Certificate shall not be issued to any Business Entity other than a limited liability company. A natural person, limited liability company, or personal or family trust shall not maintain any financial interest in more than one Vacation Rental. For this purpose, financial interest includes both legal and beneficial ownership as well as any arrangement that provides for receipt of any portion of the revenues generated by the Vacation Rental. An Owner shall only be issued, and can only maintain, one Vacation Rental Registration Certificate at any time. (c) The provisions of Subsection (b) of this Section shall not apply to or be enforced against any Owner who operates a Vacation Rental pursuant to a valid Vacation Rental Registration Certificate issued prior to January 10, 2017 and shall only apply to each specific Vacation Rental owned by such Owner as of January 10, 2017 and only so long as such Owner for each Vacation Rental complies with the provisions of this Code. The purpose of this exception is to afford current owners of vacation rental property a reasonable opportunity to recoup costs reasonably invested for vacation rental use and which may not have been recouped during the period of vacation rental use and which cannot be recouped once the vacation rental use is terminated. (d) Each Owner of a Vacation Rental who rents, exchanges, trades, gifts, or grants such Vacation Rental for a period of twenty-eight (28) consecutive days or less shall fully comply with all provisions of this Chapter related to the use and occupancy of a Vacation Rental, and the operational requirements, provided in this Chapter. Each rental, exchange, trade, gift, and grant of a stay of less than twenty-eight (28) days shall count as one Contract. (e) No Owner of residential property in the City shall rent any Homeshare Interest for a period of twenty-eight consecutive days or less without a valid Rental Registration Certificate for Homesharing pursuant to this Chapter for such Homesharing Interest. 31 Ordinance No. Page 6 (f) A copy of the current Registration Certificate as issued by the City and the maximum number of guests allowed on the premises shall be displayed in a clear and legible manner in a conspicuous and easily accessible location in the unit and on all advertising related to each Vacation Rental or Homesharing Interest, including without limitation, web based advertising, hosting platform, print media, and television. (g) The issuance and or renewal of a Registration Certificate shall be deemed evidence that the holder of such Registration Certificate has registered a vacation rental property with the City and that the holder acknowledges the holder's obligation to comply with all provisions of this Chapter and the Code. The issuance of a Registration Certificate shall not be construed as bestowing or granting any vested right or entitlement. 5.25.050 Agency. (a) An Owner may retain an agent with an exclusive listing arrangement or a representative to assist in the compliance with the requirements of this Chapter, including, without limitation, the filing of a complete Vacation Rental registration the management of the Vacation Rental unit or units, and compliance with the requirements of this Chapter including the collection and payment to the City of all transient occupancy taxes due and payable on the Vacation Rental unit. The Owner and any such agent or representative of Owner must have the authority to evict any tenant, resident, or guest permitted to reside at the Vacation Rental for violation of any provision of this Chapter or regulation thereof. Except as provided in Subsection (b) of this Section and notwithstanding any agency relationships between an Owner and an agent or representative, the Owner of the Vacation Rental unit or units shall execute all applications and documentary requirements as provided in this Chapter and shall remain responsible for compliance with the provisions of this Chapter. The failure of an agent to comply with this Chapter shall not relieve the Owner of the Owner's obligations under the provisions of this Chapter. (b) In the event an Owner enters into an exclusive listing arrangement, the Vacation Rental registration certificate may be secured, and the transient occupancy registration certificate requirements provided in this Chapter may be performed, by the agent or representative and not by the Owner; however, the agent or representative shall separately account all revenues and costs on a per property basis, including without limitation transient occupancy taxes and the gross rent amounts used to calculate such taxes. 5.25.060 Vacation Rental Registration Requirements. (a) Prior to use of a property as a Vacation Rental, and annually thereafter, the applicant shall register the property as a Vacation Rental with the City on a registration form furnished by or acceptable to the Enforcement Official and signed by the applicant under penalty of perjury. Each application shall contain the following information: 32 Ordinance No. Page 7 (1) The name, address, and telephone number of the Owner of the unit for which the Vacation Rental registration certificate is to be issued. The name, address and telephone numbers of any other natural persons, limited liability companies or personal or family trusts that hold any financial interests in the Vacation Rental as well as copies of legal documents creating such financial interests. (2) The name, address, and telephone number of the exclusive listing agent, if any, of the Owner of the unit. (3) The name, address, and twenty-four-hour telephone number of the Local Contact Person and verification that the Local Contact Person can respond in- person to the site of the Vacation Rental within thirty (30) minutes. The Local Contact Person may only use the address of the Vacation Rental if the Local Contact Person will be present at the unit for the duration of each Contract. (4) The address of the residential property proposed to be used as a Vacation Rental. (5) The number of bedrooms and the applicable overnight and daytime occupancy limit of the unit consistent with the provisions of Section 5.25.070 (c). (6) Evidence of a valid business license issued by the City for the separate business of operating Vacation Rentals or submission of a certificate that Owner is exempt or otherwise not covered by the City's Business Tax Ordinance (Division II, Title 3 of the Palm Springs Municipal Code) for such activity. (7) Evidence of a valid transient occupancy registration certificate issued by the City for the Vacation Rental unit. (8) Acknowledgement of receipt and inspection of a copy of all regulations pertaining to the operation of a Vacation Rental. (9) Executed indemnification and hold harmless agreement in a form approved by the City Attorney, agreeing to indemnify, save, protect, hold harmless, and defend the City of Palm Springs, the City Council of the City of Palm Springs, individually and collectively, and the City of Palm Springs representatives, officers, officials, employees, agents, and volunteers from any and all claims, demands, damages, fines, obligations, suits, judgments, penalties, causes of action, losses, liabilities, or costs at any time received, incurred, or accrued as a result of, or 33 Ordinance No. Page 8 arising out of Owner's actions or inaction in the operation, occupancy, use, and/or maintenance of the Property. (10) Evidence of insurance coverage as required under Section 5.25.070(t) of this Chapter. (11) Completion of building, fire, and safety inspection and completion of any corrections identified by an Enforcement Official. Such inspections shall include a review of the premises for compliance with the operational requirements of this Chapter, including without limitation determining the total number of qualified bedrooms. (12) Written acknowledgement in a form approved by the Enforcement Official that there are no covenants or other deed restrictions on the property that prohibit or limit the use of the property as a Vacation Rental. The Enforcement Official may accept a written consent from the governing board of a homeowners' association with jurisdiction over the property in satisfaction of this requirement. (13) Such other information as the Enforcement Official deems reasonably necessary to administer this Chapter. (b) The registration of a Vacation Rental shall be accompanied by a fee established by resolution of the City Council; provided, however, the fee shall be no greater than necessary to defer the cost incurred by the City in administering the provisions of this Chapter. (c) A Vacation Rental registration certificate shall be denied if a registration certificate for the same unit and issued to the same Owner has previously been revoked pursuant to Section 5.25.090. The denial of a registration certificate for any reason may be appealed in accordance with to the provisions of Chapter 2.50 of the Municipal Code. (d) Upon Change of Property Ownership, the Registration Certificate shall expire and the property shall not be used as a Vacation Rental until the new or successor Owner is issued a Vacation Registration Certificate for the property. The provisions of Section 5.25.040(b) shall be applicable to any such new or successor Owner. In the event of a change in agent or the occurrence of any other material fact set forth in the annual registration, a new registration for a Vacation Rental shall be required to continue operation of the Vacation Rental and within seven days of said change the Owner or his or her exclusive listing agent shall submit the required registration and fee. (e) The Owner or his or her exclusive listing agent shall cancel the Vacation Rental Registration Certificate within seven (7) days of the date the Vacation Rental is sold or 34 Ordinance No. Page 9 otherwise disposed of or after an event that results in the unit no longer in use as a Vacation Rental. (f) Each applicant for a Registration Certificate, including without limitation the Owner and the Owner's agent and/or representative, shall annually attend and/or participate in an educational program devised and administered by the City Manager for the purpose of training applicants for vacation rental registration certificates, or renewals thereof, on their respective roles and responsibilities in the successful administration and compliance with the City's Vacation Rental program. Each applicant shall annually take a test prepared and administered by the City Manager regarding each applicant's role and responsibilities in the Vacation Rental Program and Registration Certificates will not be issued or renewed until the applicant has successfully passed such test. 5.25.070 Operational Requirements and Standard Conditions. (a) The Owner shall use reasonably prudent business practices to ensure that the Vacation Rental unit complies with all applicable codes regarding fire, building and safety, health and safety, and all other relevant laws. (b) No more than thirty-two (32) Contracts for Vacation Rental use of a property shall be allowed or provided in any calendar year; however, up to four (4) additional Contracts shall be allowed or provided for the Third Quarter of a calendar year so long as the entire term of each such Contract occurs during such Third Quarter A Contract includes any occupancy of a property subject to a Vacation Rental registration certificate by persons other than the Owner when the Owner is not present during such occupancy, regardless of whether compensation is paid for such occupancy or whether occupancy is evidenced in an agreement or document. (i) For the first year a Vacation Registration Certificate is in effect, the thirty- two (32) contract limit shall be prorated based on the number of months that elapse prior to the subsequent calendar year and in the event any portion of the Third Quarter occurs during the first year a Vacation Registration Certificate is in effect, the four (4) additional Contracts may be used during such Third Quarter. (ii) Notwithstanding the restrictions imposed by this Subparagraph, the Owner at the time an application or renewal is submitted can designate and file with the Enforcement Official the names of up to five (5) persons who may occupy the Vacation Rental unit at no cost and without requiring the presence of the Owner on the premises of the Vacation Rental. Each such occupancy shall fully comply with all other provisions of this Chapter. (c) The Owner shall limit overnight occupancy of the Vacation Rental unit to a specific number of occupants, with the maximum number of occupants as no more than two (2) persons per bedroom within each Vacation Rental unit and a maximum of no more than eight (8) persons total within the Vacation Rental unit, except that Owner may allow up to two (2) minor children, age 12 or under, to occupy the Vacation Rental 35 Ordinance No. Page 10 in addition to the maximum number of occupants otherwise provided in this Subsection. The number of bedrooms in a Vacation Rental shall be verified by the Enforcement Official using County Assessor and/or City Building records and/or a physical inspection of the premises, prior to the issuance of a Registration Certificate. The Owner may also allow up to four (4) daytime occupants in addition to the total number of guests allowed for overnight occupancy pursuant to this Subsection. No more than one (1) automobile per bedroom shall be allowed for each Vacation Rental. Advertising and/or renting one or more Vacation Rentals as part of a cluster or compound is prohibited. (d) The Owner of an Estate Home shall be exempt from the limitations of Subsection (c) of this Section for up to two (2) additional bedrooms for housing to accommodate no more than two (2) persons for each additional bedroom approved pursuant to the Exemption up to a maximum of twelve (12) guests and up to two (2) minors age twelve (12) and under. (e) During the Rental Term each Vacation Rental unit is rented, the Owner, his or her agent, and/or the Local Contact Person designated by the Owner, after being contacted by the Enforcement Official, shall be available twenty-four hours per day, seven days per week, for the purpose of (1) responding by telephone within fifteen (15) minutes of complaints from or through the Hotline and (2) responding in-person within thirty (30) minutes to any additional or successive complaints regarding the condition, operation, or conduct of occupants of the Vacation Rental. (f) The Owner shall use reasonably prudent business practices to ensure that the occupants and/or guests of the Vacation Rental unit do not create unreasonable noise disturbances, engage in disorderly conduct, or violate provisions of the Municipal Code or any state law. (g) Notwithstanding the provisions of Section 11.74.043, any radio receiver, musical instrument, phonograph, loudspeaker, sound amplifier, or any machine or device for the producing or reproducing of any sound shall be conducted within a fully enclosed Vacation Rental unit and shall not be audible at the property line of the Vacation Rental. (h) Prior to occupancy pursuant to each separate occasion of rental of a Vacation Rental, the Owner or the Owner's agent or representative shall enter into a written Contract with a Responsible Person where (1) the Responsible Person will provide the Responsible Person's name, age, address, and a copy of a government issued identification; (2) establishes and sets out the terms and conditions of the Contract, including without limitation occupancy limits, noise prohibitions, and vehicle parking requirements; (3) requires the Responsible Person to acknowledge and agree that he or she is legally responsible for compliance of all occupants of the Vacation Rental or their guests with all provisions of this Chapter and/or the Municipal Code; (4) the Owner or the Owner's Agent provides a copy of the "Good Neighbor Brochure' to the Responsible Person; (5) the Responsible Person provides a list of all guests by name; and (6) the Responsible Person provides a list of all guests' vehicles, including license plate numbers. Each Contract shall be maintained by the Owner or the Owner's Agent for a 36 Ordinance No. Page 11 minimum of four (4) years and shall be readily available for inspection upon request of the Enforcement Official. A summary or abstract of the written Contract, in a form approved by the Enforcement Official, shall be filed with the Enforcement Official prior to occupancy, in a manner approved by the Enforcement Official, and shall be posted in a conspicuous location on the Vacation Rental property and shall be made available on site at the request of an Enforcement Official. (i) The Owner, or his or her agent, shall, upon notification by the Enforcement Official that the responsible person, including any occupant and/or guest of the Vacation Rental unit, has created unreasonable noise or disturbances, engaged in disorderly conduct, or committed violations of provisions of the Municipal Code or any state law, shall promptly respond in a timely and appropriate manner to prevent a recurrence of such conduct by those occupants or guests, and when requested by the City Enforcement Official, evict one or more of the guests. For the purpose of this Subsection and Subsection (j) below, the phrase "in a timely and appropriate manner" shall mean in-person contact within thirty (30) minutes for any call from the Enforcement Official. 0) Failure of the Owner or his or her agent to respond to calls or complaints regarding the condition, operation, or conduct of occupants of the Vacation Rental in a timely and appropriate manner shall be grounds for imposition of penalties as set forth in this Chapter. It is not intended that an Owner, agent, or Local Contact Person act as a peace officer or place himself or herself in an at-risk situation. (k) Trash and refuse shall not be left stored within public view, except in proper containers for the purpose of collection by the collectors and between the hours of five a.m. and eight p.m. on scheduled trash collection days. The Owner of the Vacation Rental unit shall use reasonably prudent business practices to ensure compliance with all the provisions of Chapter 6.04 of the Municipal Code (Waste Disposal and Diversion), and shall provide "walk-in service" or as may otherwise be approved by the Enforcement Official. (1) All home repairs (external and internal), garden and yard maintenance, and pool cleaning and maintenance shall not be performed between the hours of 5:00 pm on Friday through 8:00 am on Monday, except in the case of an emergency or the occurrence of an unexpected event that reasonable warrants a timely or immediate response. Repairs and maintenance shall not be scheduled in advance to occur during the days and time specified in this subsection. (m) The Owner or the Owner's agent or representative shall meet the Responsible Party in person at the Vacation Rental prior to the commencement of the occupancy and verbally explain and describe all rules and regulations applicable to the use of the property as a Vacation Rental and the responsibilities of the Responsible Party to the neighbors and the City as well as the Owner. The Owner shall secure the signature of the Responsible Party and all guests to a statement of rules and regulations prepared by the City Manager. 37 Ordinance No, Page 12 (n) The Owner of the Vacation Rental unit shall post a copy of the Registration Certificate and a copy of the conditions set forth in this Section, including all rules and regulations applicable to the use of the property as a Vacation Rental, on the inside of each entry door or in a conspicuous location near each entry door on the Vacation Rental. (o) The Owner shall provide each occupant of a Vacation Rental with the following information prior to occupancy of the unit and/or post such information in a conspicuous place within the unit: (1) The name of the managing agency, agent, rental manager, Local Contact Person, or Owner of the unit, and a telephone number at which that party may be reached on a twenty-four-hour basis; (2) The maximum number of occupants permitted to stay in the unit; (3) The trash pick-up day and applicable rules and regulations pertaining to leaving or storing trash or refuse on the exterior of the property; (4) Notification that any radio receiver, musical instrument, phonograph, loudspeaker, sound amplifier, or any machine or device for the producing or reproducing of any sound shall only be operated within a fully enclosed Vacation Rental unit and shall not be audible at the property line of the Vacation Rental; (5) Notification that the occupant may be cited or fined by the City and/or immediately evicted by the Owner pursuant to state law, in addition to any other remedies available at law, for creating a disturbance or for violating any provision of this Chapter; (6) Notification that failure to conform to the occupancy requirements of the Vacation Rental unit is a violation of this Chapter; (7) A copy of this Chapter of the Palm Springs Municipal Code, as may be amended from time to time. (p) The use of a Vacation Rental unit shall not violate any applicable conditions, covenants, or other restrictions on real property. (q) The Owner shall comply with all provisions of Chapter 3.24 of the Municipal Code concerning transient occupancy taxes, including, but not limited to, submission of a monthly return for each Vacation Rental in accordance with Section 3.24.080. The 38 Ordinance No. Page 13 monthly return shall be filed each month regardless of whether the Vacation Rental unit was rented or not during each such month. (r) The City Manager shall have the authority to impose additional standard conditions, applicable to all Vacation Rental units or identifiable classes of Vacation Rentals, as necessary, to achieve the objectives of this Chapter. A list of all such additional standard conditions shall be maintained and on file in the Office of the City Clerk and such offices as the City Manager designates. (s) Notwithstanding the provisions of Subsection (p) above, upon a determination of Good Cause, the City Manager may impose additional or special standards or requirements for placement or imposition of special conditions or performance standards for Owners, Owner's Agents, Local Contact Persons, and their affected Vacation Rentals. (r) The standard conditions may be modified by the Enforcement Official upon request of the Owner or his or her agent based on site- specific circumstances for the purpose of allowing reasonable accommodation of a Vacation Rental. All requests must be in writing and shall identify how the strict application of the standard conditions creates an unreasonable hardship to a property such that, if the requirement is not modified, reasonable use of the property for a Vacation Rental would not be allowed. Any hardships identified must relate to physical constraints to the subject site and shall not be self-induced or economic. Any modifications of to the standard conditions shall not further exacerbate an already existing problem. (t) The City Manager shall have the authority to establish administrative rules and regulations, which may include, but are not limited to, registration conditions, reporting requirements, inspection frequencies, enforcement procedures, advertising restrictions, disclosure requirements, or insurance requirements, consistent with the provisions of this Chapter, for the purpose of implementing, interpreting, clarifying, carrying out, furthering, and enforcing the requirements and the provisions of this Chapter. No person shall fail to comply with any such regulation. A copy of such administrative rules and regulations shall be on file in the Office of the City Clerk. (u) Owner shall procure, maintain, and pay premiums for commercial insurance policies that cover short term rental of property for each Vacation Rental with minimum limits as may be established by the City Manager from time to time. (v) Owner shall annually secure a building and fire and safety inspection prior to renewal of the Vacation Registration Certificate. 5.25.075 Specific Prohibitions. (a) No person or entity shall offer or provide an Apartment, or any portion thereof, for rent for 28 consecutive days or less to any person. 39 Ordinance No. Page 14 (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, an apartment owner, an apartment manager, or a representative of the apartment owner or manager, shall evict any tenant or otherwise terminate a lease for the purpose of converting an apartment to a vacation rental or in anticipation of converting an 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 apartment owner, 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 apartment owner, apartment manager, or representative liable to the tenant for actual or punitive damages, including damages for emotional distress, in a civil action for wrongful eviction. The tenant may seek injunctive relief and money damages for wrongful eviction and the prevailing party in an action for wrongful eviction shall recover costs and reasonable attorneys' fees. (d) The provisions of Subsection (a) of this Section shall not apply to or be enforced against any person or entity who rents an apartment or portion thereof pursuant to a valid vacation 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 apartments and which may not have been recouped during the period of vacation rental use of the the 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. Ed. Note. Subsection (d) of Section 5.25.075 shall be deemed repealed and no longer in effect as of 12:01 am on January 1, 2019 and all persons and entities shall fully comply with the provisions of Subsection (a) of Section 5.25.075 of this Code. See § 4 of Ord. 1902 (2016). 5.25.078 Homesharing Authorization. (a) The Notwithstanding any provision of this Chapter to the contrary, homesharing shall be authorized in the City, provided that the Owner complies with each of the following requirements: 40 Ordinance No. Page 15 (1) Obtains and maintains at all times a Vacation Rental Registration Certificate for Homesharing; (2) Operates the Homesharing Interest in compliance with all Vacation Registration Certificate for Homesharing conditions, which may be imposed by the Enforcement Official to effectuate the purpose of this Chapter; (3) Collects and remits Transient Occupancy Tax to the City and complies with all City Transient Occupancy Tax requirements as set forth in this Code; (4) Takes responsibility for and actively prevents any nuisance activities that may take place as a result of homesharing activities; (5) Complies with all applicable laws, including all health, safety, building, and fire protections laws; (6) Complies with the regulations promulgated pursuant to this Chapter. (b) In the event the Owner of a Homeshare Interest does not live on-site, in the home, and is not able to respond within thirty (30) minutes to complaints regarding the condition, operation, or conduct of occupants of the Homesharing Interest, the property shall be deemed a Vacation Rental and Owner shall be required to fully comply with the provisions of this Chapter relating to Vacation Rentals, including without limitation, securing a Vacation Rental Registration Certificate. 5.25.080. Audit. Each Owner and agent or representative of any Owner shall provide the Enforcement Official with access to each Vacation Rental and the books, records, documents, papers, tax returns, and bank accounts at any time during normal business hours as the Enforcement Official may determine are necessary or convenient for the purpose of inspection or audit to determine that the objectives and conditions of this Chapter are being fulfilled. 5.25.085 Disclosure of Business Entitites, Limited Liability Companies, and Personal or Family Trusts On or before June 1, 2017, all Business Entities, limited liability companies, and personal or family trusts owning one or more Vacation Rentals shall disclose to the Enforcement Official the names, relevant contact information, and any such other information as may be requested by the Enforcement Official of each natural person 41 Ordinance No. Page 16 holding the legal, equitable, and/or beneficial interest of each such Business Entitiy, limited liability company, or personal or family trust and the address of each Vacation Rental owned by each such Business Entity, limited liability company, or personal or family trust. Each Business Entity that complies with the provisions of this Section prior to June 1, 2017, shall, prior to June 1, 2018 transfer each Vacation Rental to a natural person who can otherwise comply with the provisions of this Chapter or cease operating any Vacation Rental properties owned by the Business Entity as Vacation Rentals. Any Business Entity that fails to comply with the disclosure requirements provided in this Subsection, shall cease operating all Vacation Rental properties owned by the Business Entity as Vacation Rentals no later than June 1, 2017. 5.25.090 Violations. (a) Any person who violates a provision of this Chapter is subject to criminal sanctions and administrative penalties pursuant to Chapters 1.01 and 1.06 of this Code and the specific penalties as provided in this Chapter. Any person who uses, or allows the use of, residential property in violation of the provisions in this Chapter is guilty of a misdemeanor for each day in which such residential property is used, or allowed to be used, in violation of this Chapter. An administrative citation issued pursuant to Chapter 1.06 for a first violation shall be five hundred dollars ($500.00) and each subsequent violation shall be one thousand ($1,000.00) dollars. Each administrative citation for a violation of any provision of this Chapter shall be levied or assessed against the Owner. (b) Upon the third violation in any twelve month period, the City Manager shall suspend the Vacation Registration Certificate for two (2) years. (c) Any person who operates a Vacation Rental without a Vacation Registration Certificate, shall be liable to the City for the payment of transient occupancy tax pursuant to the provisions of the Palm Springs Municipal Code Chapter 3.24, including without limitation penalties and interest, payment of an administrative fine in the amount of Five Thousand Dollars ($5,000.00), and permanent ineligibility to operate a Vacation Rental in the City. In the event the person continues to operate a Vacation Rental without a Vacation Registration Certificate, the person shall be liable for an administrative fine in the amount of Ten Thousand Dollars ($10,000.00) and any successive violations shall be subject to fines provided in an escalation formula established by the City Council by resolution. (d) Any person who advertises a Vacation Rental without including the Vacation Registration Certificate in any advertising for such Vacation Rental, or operates a Vacation Rental without a contract, or without providing the City with a summary or abstract of such contract, or without timely tendering full monthly payments of transient occupancy tax, shall pay a fine in the amount of Two Thousand, Five Hundred Dollars ($2,500.00) and the Owner's Vacation Registration Certificate shall be suspended for six (6) months for a first offense and shall pay a fine in the amount of Five Thousand Dollars ($5,000.00) and the Owner's Vacation Registration Certificate shall be revoked 42 Ordinance No. Page 17 for a second offense. Any subsequent violations will be subject to the provisions of Subsection (c) of this Section. (e) The failure of an Owner or the Owner's agent or representative to comply with an order of any police officer shall result in the revocation of the Vacation Registration Certificate. (f) The appeal and hearing provisions of Chapter 2.50 shall apply to any revocation or suspension of a Registration Certificate. (g) Any person who fails to pay any fee or charge provided in this Chapter within the time required, shall pay a penalty in the amounts established by the City Council by resolution. Such penalty may also include interest from the date on which the fee or charge became due and payable to the City until the date of payment. (h) The filing of knowingly false claims against a Vacation Rental or the guests staying in a Vacation Rental is prohibited and shall be punishable by administrative fines as provided in Chapter 1.06 of this Code. (i) In addition to, and not in lieu of, any other remedy allowed by law, all remedies prescribed under this Chapter are cumulative and the election of one or more remedies does not bar the City from the pursuit of any other remedy, criminal, civil, or administrative which may be pursued by the City to enforce this Chapter and/or address any violation of this Code or to remedy any other public nuisance. 5.25.100 Requirements Not Exclusive. The requirements of this Chapter shall be in addition to any license, permit, or fee required under any other provision of this Code. The issuance of any permit pursuant to this Chapter shall not relieve any person of the obligation to comply with all other provisions of this Code pertaining to the use and occupancy of Vacation Rental or the property on which it is Iocated.SECTION 2. Section 93.23.16 is added to the Palm Springs Municipal Code to read: 93.23.16. Special Standards for Vacation Rentals of Estate Homes A. The vacation rental of an Estate Home shall be deemed a use permitted pursuant to a land use permit under the provisions of Palm Springs Municipal Code Section 94.02.01 . For the purposes of this Section, the terms "Estate Home" and "Owner" shall have the meanings provided in Section 5.25.030 of this Code. B. Any Owner of an Estate Home with an active vacation rental certificate in full force and effect on February 8, 2017, shall be deemed in compliance with this Subsection and shall be issued a land use permit for such Estate home from the Director of Planning Services subject to standard conditions of approval consistent with 43 Ordinance No. Page 18 the provisions of this Chapter and the Zoning Ordinance. Each application by an Owner for the vacation rental of an Estate Home after February 8, 2017, shall be subject to the applicant applying for and receiving a land use permit under the provisions of Section 94.02.01 of this Code. Any land use permit issued for the vacation rental of an Estate Home shall be issued to the Owner, subject to the provisions of this Chapter and such additional conditions as may be required pursuant to Section 94.02.01 of this Code. Any land use permit issued for a vacation rental of an Estate Home shall not run with the land. C. Upon a determination by the City Manager of a third Qualified Complaint regarding the vacation rental of an Estate House, the land use permit for such vacation rental shall be subject to revocation or modification by the Planning Commission at a noticed public hearing to be held in the manner provided for in Section 94.09.00 of this Code. For the purpose of this Section, the term "Qualified Complaint" shall mean a complaint of behavior or conduct that unreasonably disturbs the quiet enjoyment of property by residents of lots adjoining the Estate House property, as reasonably determined by the City Manager or the designee of the City Manager. 1. The Commission shall, not less than ten (10) nor more than thirty (30) days after the notification of the Owner, hold a public hearing on the matter. 2. The Commission shall reach its decision within thirty (30) days after the conclusion of the public hearing. The decision shall set forth the findings of the Commission and any recommended conditions, including without limitation any time limit deemed necessary to protect the health, safety, and welfare of persons in the neighborhood and in the city as a whole. 3. The decision and findings shall be filed with the City Council within fifteen (15) days after they have been reached. A copy of the minutes thereof shall be mailed to the Owner. The action of the Commission shall be final unless appealed to the City Council. 4. The Commission shall consider the following issues and potential conditions in its review of a vacation rental of an Estate Home. a. Regulation of use, b. Special yards, space and buffers, c. Fences and walls, d. Surfacing of parking areas subject to city specifications, e. Requiring street, service road or alley dedications and improvements or appropriate bonds, 44 Ordinance No. Page 19 f. Regulation of points of vehicular ingress and egress, g. Regulation of signs, h. Requiring landscaping and maintenance thereof, i. Requiring maintenance of the grounds, j. Regulation of noise, vibration, odors, etc., k. Regulation of time for certain activities, I. Time period within which the proposed use shall be developed, m. Duration of use, n. Dedication of property for public use, o. Limitation on the number of guests, p. Limitation on the number of vehicles, q. Imposition of building and/or safety requirements applicable to small hotels, r Such other conditions as will make possible the development of the city in an orderly and efficient manner and in conformity with the intent and purposes set forth in this Zoning Code, including but not limited to mitigation measures outlined in any applicable environmental assessment. SECTION 3. The City Council finds and determines that this Ordinance is not subject to the California Environmental Quality Act (Public Resources Code Section 21000 et seq.) pursuant to Section 15060(c)(2) and 15060(c)(3) of the State Guidelines, because the Ordinance will not result in a direct or reasonably foreseeable indirect physical change in the environment and is not a "project," as that term is defined in Section 15378 of the State Guidelines. In addition, The City Council also determines this Ordinance consists of regulations intended to ensure that commercial short term rental use of residential property remains an ancillary and secondary use of residential property in the City and thereby preserve the residential character of the City's single- family and multi-family neighborhoods as identified in the City's adopted General Plan, and its concomitant Environmental Impact Report. Thus, to the extent there is any environmental impact from the adoption of this Ordinance, the City Council finds that the 45 Ordinance No. Page 20 Environmental Impact Report for the adopted General Plan is the controlling environmental document. SECTION 4. This Ordinance generally deals with the subject matter of Ordinance 1907, which was the subject of a referendum submitted on January 12, 2017. Ordinance 1907 is therefore suspended pending a determination of and action on the referendum. The City Council finds that this Ordinance is essentially different from Ordinance 1907 in that it contains modifications, amendments, and changes that are now endorsed by those who prepared, circulated, or supported the referendum petition. Specifically, Ordinance 1907's prohibition on multiple ownerships contained an amortization period that would require Owners to dispose of vacation rental properties by the end of the amortization period; this Ordinance grandfathers all existing ownerships thereby allowing Owners to continue to operate vacation rental properties they currently own until they sell or otherwise choose to dispose of each property. Ordinance 1907 allowed a maximum of 32 vacation rental contracts per property; this Ordinance allows an additional 4 vacation rental contracts during the summer months. Ordinance 1907 provided exceptions from certain occupancy limitations as applied to estate homes; this Ordinance includes vacation rental estate homes as a use subject to a land use permit coupled with an administrative review before the Planning Commission under certain circumstances. This Ordinance also includes additional requirements on Owners and their agents and representatives, including periodic training and testing, prohibitions on gardening and property maintenance on weekends, requires face to face meetings with a Responsible Party, and securing written acknowledgements of rules and regulations from all guests. The City Council further notes that Ordinance 1907 was also a restatement of the Vacation Rental Ordinance in effect at the time Ordinance 1907 was adopted. The Council therefore finds that the provisions of the Code in effect at the time Ordinance 1907 was adopted and that were not changed or amended by Ordinance 1907 were not subject to the referendum and therefore were not matters the referendum proponents contested. SECTION 5. The City Manager is authorized to exercise reasonable administrative discretion in the implementation of this Ordinance during the first year this Ordinance is in effect, including without limitation phasing in of programs, policies, and practices consistent with the business needs of the City, any department, division, bureau, or section designated to enforce this Ordinance, and the overall responsibilities and priorities of the City Manager as provided by the City Council. SECTION 6. Any valid rental agreement for a Vacation Rental with occupancies in terms of number of guests and/or vehicles in excess of the requirements of Section 5.25.070(c) of this Ordinance, entered into between an Owner or an Agent with a renter and the renter has paid a deposit for such rental prior to November 30, 2016, shall be deemed consistent with the provisions of this Ordinance so long as such rental agreement and the Vacation Rental otherwise complies with the requirements of this Ordinance. In addition and notwithstanding any provisions to the contrary within Section 5.25.070(b)(ii), any holder of a Registration Certificate as of the effective date of this 46 Ordinance No. Page 21 Chapter can submit a list of names as provided in Section 5.25.070(b)(ii) within thirty (30) days of such effective date. SECTION 7. Notwithstanding any provision to the contrary in this Ordinance, any limitation or prohibition regarding homes that would otherwise qualify as an estate home shall not be applicable or enforceable until the thirty-first (31s) day after this Ordinance becomes effective and Contracts for such homes, fully executed prior to such date, shall be recognized as valid under this Ordinance. SECTION 8. The provisions of this Ordinance are severable. If any portion, section, subsection, paragraph, clause, sentence, phrase, work, or application of this Ordinance is for any reason held to be invalid by a decision of any court of competent jurisdiction, that decision shall not affect the validity of the remaining portions of this Ordinance. The City Council declares that it would have adopted this Ordinance and each and every portion, section, subsection, paragraph, clause, sentence, phrase, word, and application not declared invalid or unconstitutional without regard to whether any portion of this Ordinance or application thereof would be subsequently declared invalid. SECTION 9..The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law and this Ordinance shall take effect thirty (30) days after passage. PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS _ DAY OF 12017. ROBERT MOON, MAYOR ATTEST: KATHIE HART, INTERIM CITY CLERK 47 02 . 14:5-, r7 ORDINANCE NO. AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING AND RESTATING CHAPTER 5.25 OF, AND ADDING SECTION 93.23.16 TO, THE PALM SPRINGS MUNICIPAL CODE RELATING TO VACATION RENTALS. City Attorney's Summary This Ordinance amends and restates in full the City's adopted Vacation Rental Ordinance. This Ordinance imposes additional restrictions on occupancy and use of vacation rental properties in Palm Springs different and complimentary to restrictions initially included in Ordinance No. 1907, and provides additional enforcement oversight. The City Council of the City of Palm Springs ordains: SECTION 1. Chapter 5.25 of the Palm Springs Municipal Code is amended to read: Chapter 5.25 VACATION RENTALS 5.25.010 Title. This Chapter shall be referred to as the "Vacation Rental Ordinance." 5.25.020 Findings. The City Council finds and determines as follows: (a) The primary use of single-family and multi-family dwelling units in the City of Palm Springs is the provision of permanent housing for full time and part time residents of the City who live and/or work in the City. Vacation Rentals and Homesharing are not uses specifically recognized in the City's Zoning Ordinance, nor are these uses expressly identified as uses permitted in single-family or multi-family zones. Vacation Rentals and Homesharing are similar in character and use as hotels and other commercial short term uses and can only be permitted in single-family or multi-family zones if such uses are ancillary and secondary to the residential use of property. This Ordinance confirms Vacation Rentals and Homesharing as ancillary and secondary uses of residential property in the City. (b) leeidents involving exaessiue—aeise, d}serdedy oondaet, vandalism, thisseGE)RdaFy, o llaFy GORIMPrGiRl nalams the dema d fGF City Ordinance No. Page 2 City's residential neighborhoods. `r@Gate^ Rentals 2 Homesharing_use in resdeRtial neighherhGeds rn y have e4eGtS that R hest he address d Ohre unh an appmpFiate Git. FegulateFy 1 (eb) The purpose of this Chapter is to establish a regulatory program for Vacation Rental and Homesharing lodging, with appropriate standards that regulate vacation rental of residential property, minimize adverse effects of vacation rental uses on surrounding residential neighborhoods, ensure that vacation rentals and homesharing are ancillary and secondary uses of residential property 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. (dc) Limiting Vacation Rental and Homesharing lodging to single-family dwelling units subject to the regulations provided in this Chapter and prohibiting Vacation Rental and Homesharing lodging in apartments will safeguard, preserve, and protect residential housing stock in the City. (ed) The adoption of a comprehensive code to regulate issuance of, and attach conditions to, Registration Certificates for Vacation Rental and Homesharing lodging within single-family residential neighborhoods 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 on residential neighborhoods. (fe) 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. 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 in a multi-family development 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 in a multi-family development of three (3) or more dwelling units. "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 Ordinance No. Page 3 greater in size, consists of four walls to the ceiling, at least one of which is located along an exterior wall with a window, and contains a built-in closet. "Business Entity" means a corporation, partnership, or other legal entity that is not a natural person or a personal or family trust or a limited liability company consisting solely of natural persons. "Change of Property Ownership" means the transfer of title from one person to another. "Cluster or Compound" means any two or more Vacation Rentals that operate on a unified or shared basis where residents of such Vacation Rentals have exclusive access to more than one Vacation Rental and/or the facilities of such Vacation Rentals, including by way of example, a swimming pool, tennis court, or cooking facilities. "Contract" means an agreement or evidence of any tenancy that allows or provides for the vacation rental of property. "Daytime occupancy" means the hours between 10:00 am and 10:00 pm. "Daytime occupants" mean the guests who may occupy a Vacation Rental during a daytime occupancy. "Enforcement Official" means the City Manager, the Police Chief, the Fire Marshall, the Building Official, or one or more of their respective designees. "Exclusive listing arrangement" means a written agreement between an Owner and an agent or representative where the agent or representative has the sole and exclusive right to rent or lease a Vacation Rental unit to any person and the Owner is prohibited from renting or leasing the Vacation Rental unit except through the Owner's agent or representative. "Estate Home" means a single family dwelling with five or more bedrooms located on property zoned R-1-B, R-1-A, R-1-AH, or G-R-5. "Good cause" for the purposes of denial, suspension, revocation, imposition of conditions, renewal, and reinstatement of a Vacation Rental Registration Certificate, means (1) the Applicant, Owner, the Owner's Agent, or the Local Contact Person has failed to comply with any of the terms, conditions, or provisions of this Chapter or any relevant provision of this Code, State law, or any rule or regulation promulgated thereunder; (2) the Applicant, Owner, Owner's Agent, or Local Contact Person has failed to comply with any special conditions that were placed upon the Vacation Rental Registration Certificate by the Enforcement Official; or (3) the Vacation Rental 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. Ordinance No. Page 4 "Good Neighbor Brochure" means a document prepared by the Enforcement Official that summarizes general rules of conduct, consideration, and respect, including without limitation provisions of the Palm Springs Municipal Code applicable to or expected of guests to the City. "Homeshare Interest" means a portion of an Owner's home that is subject to homesharing as provided in this Chapter. "Homesharing" means an activity whereby the Owner hosts visitors in the Owner's home, for compensation, for periods of twenty-eight (28) consecutive days or less, while the Owner lives on-site and in the home, throughout the visitors 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, 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 residential legal lot of record 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. "Third Quarter" means the entire months of July, August, and September in one calendar year. Ordinance No. Page 5 "Vacation Rental' means a single-family dwelling, 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. 5.25.040 Registration Certificate Required. (a) The operation of a Vacation Rental or a Homeshare Interest without a Vacation Rental Registration Certificate is prohibited. (b) A Vacation Rental Registration Certificate shall not be issued to any Business Entity other than a limited liability company. A natural person, limited liability company, or personal or family trust shall not maintain any financial interest in more than one Vacation Rental. For this purpose, financial interest includes both legal and beneficial ownership as well as any arrangement that provides for receipt of any portion of the revenues generated by the Vacation Rental. An Owner shall only be issued, and can only maintain, one Vacation Rental Registration Certificate at any time. (c) The provisions of Subsection (b) of this Section shall not apply to or be enforced against any Owner who operates a Vacation Rental pursuant to a valid Vacation Rental Registration Certificate issued prior to January 10, 2017 and shall only apply to each specific Vacation Rental owned by such Owner as of January 10, 2017 and only so long as such Owner for each Vacation Rental complies with the provisions of this Code. The purpose of this exception is to afford current owners of vacation rental property a reasonable opportunity to recoup costs reasonably invested for vacation rental use and which may not have been recouped during the period of vacation rental use and which cannot be recouped once the vacation rental use is terminated. (d) Each Owner of a Vacation Rental who rents, exchanges, trades, gifts, or grants such Vacation Rental for a period of twenty-eight (28) consecutive days or less shall fully comply with all provisions of this Chapter related to the use and occupancy of a Vacation Rental, and the operational requirements, provided in this Chapter. Each rental, exchange, trade, gift, and grant of a stay of less than twenty-eight (28) days shall count as one Contract. (e) No Owner of residential property in the City shall rent any Homeshare Interest for a period of twenty-eight consecutive days or less without a valid Rental Registration Certificate for Homesharing pursuant to this Chapter for such Homesharing Interest. Ordinance No. Page 6 (f) A copy of the current Registration Certificate as issued by the City and the maximum number of guests allowed on the premises shall be displayed in a clear and legible manner in a conspicuous and easily accessible location in the unit and on all advertising related to each Vacation Rental or Homesharing Interest, including without limitation, web based advertising, hosting platform, print media, and television. (g) The issuance and or renewal of a Registration Certificate shall be deemed evidence that the holder of such Registration Certificate has registered a vacation rental property with the City and that the holder acknowledges the holder's obligation to comply with all provisions of this Chapter and the Code. The issuance of a Registration Certificate shall not be construed as bestowing or granting any vested right or entitlement. 5.25.050 Agency. (a) An Owner may retain an agent with an exclusive listing arrangement or a representative to assist in the compliance with the requirements of this Chapter, including, without limitation, the filing of a complete Vacation Rental registration the management of the Vacation Rental unit or units, and compliance with the requirements of this Chapter including the collection and payment to the City of all transient occupancy taxes due and payable on the Vacation Rental unit. The Owner and any such agent or representative of Owner must have the authority to evict any tenant, resident, or guest permitted to reside at the Vacation Rental for violation of any provision of this Chapter or regulation thereof. Except as provided in Subsection (b) of this Section and notwithstanding any agency relationships between an Owner and an agent or representative, the Owner of the Vacation Rental unit or units shall execute all applications and documentary requirements as provided in this Chapter and shall remain responsible for compliance with the provisions of this Chapter. The failure of an agent to comply with this Chapter shall not relieve the Owner of the Owner's obligations under the provisions of this Chapter. (b) In the event an Owner enters into an exclusive listing arrangement, the Vacation Rental registration certificate may be secured, and the transient occupancy registration certificate requirements provided in this Chapter may be performed, by the agent or representative and not by the Owner; however, the agent or representative shall separately account all revenues and costs on a per property basis, including without limitation transient occupancy taxes and the gross rent amounts used to calculate such taxes. 5.25.060 Vacation Rental Registration Requirements. (a) Prior to use of a property as a Vacation Rental, and annually thereafter, the applicant shall register the property as a Vacation Rental with the City on a registration form furnished by or acceptable to the Enforcement Official and signed by the applicant under penalty of perjury. Each application shall contain the following information: Ordinance No. Page 7 (1) The name, address, and telephone number of the Owner of the unit for which the Vacation Rental registration certificate is to be issued. The name, address and telephone numbers of any other natural persons, limited liability companies or personal or family trusts that hold any financial interests in the Vacation Rental as well as copies of legal documents creating such financial interests. (2) The name, address, and telephone number of the exclusive listing agent, if any, of the Owner of the unit. (3) The name, address, and twenty-four-hour telephone number of the Local Contact Person and verification that the Local Contact Person can respond in- person to the site of the Vacation Rental within thirty (30) minutes. The Local Contact Person may only use the address of the Vacation Rental if the Local Contact Person will be present at the unit for the duration of each Contract. (4) The address of the residential property proposed to be used as a Vacation Rental. (5) The number of bedrooms and the applicable overnight and daytime occupancy limit of the unit consistent with the provisions of Section 5.25.070 (c). (6) Evidence of a valid business license issued by the City for the separate business of operating Vacation Rentals or submission of a certificate that Owner is exempt or otherwise not covered by the City's Business Tax Ordinance (Division Il, Title 3 of the Palm Springs Municipal Code) for such activity. (7) Evidence of a valid transient occupancy registration certificate issued by the City for the Vacation Rental unit. (8) Acknowledgement of receipt and inspection of a copy of all regulations pertaining to the operation of a Vacation Rental. (9) Executed indemnification and hold harmless agreement in a form approved by the City Attorney, agreeing to indemnify, save, protect, hold harmless, and defend the City of Palm Springs, the City Council of the City of Palm Springs, individually and collectively, and the City of Palm Springs representatives, officers, officials, employees, agents, and volunteers from any and all claims, demands, damages, fines, obligations, suits, judgments, penalties, causes of action, losses, liabilities, or costs at any time received, incurred, or accrued as a result of, or Ordinance No. Page 8 arising out of Owner's actions or inaction in the operation, occupancy, use, and/or maintenance of the Property. (10) Evidence of insurance coverage as required under Section 5.25.070(t) of this Chapter. (11) Completion of building, fire, and safety inspection and completion of any corrections identified by an Enforcement Official. Such inspections shall include a review of the premises for compliance with the operational requirements of this Chapter, including without limitation determining the total number of qualified bedrooms. (12) Written acknowledgement in a form approved by the Enforcement Official that there are no covenants or other deed restrictions on the property that prohibit or limit the use of the property as a Vacation Rental. The Enforcement Official may accept a written consent from the governing board of a homeowners' association with jurisdiction over the property in satisfaction of this requirement. (13) Such other information as the Enforcement Official deems reasonably necessary to administer this Chapter. (b) The registration of a Vacation Rental shall be accompanied by a fee established by resolution of the City Council; provided, however, the fee shall be no greater than necessary to defer the cost incurred by the City in administering the provisions of this Chapter. (c) A Vacation Rental registration certificate shall be denied if a registration certificate for the same unit and issued to the same Owner has previously been revoked pursuant to Section 5.25.090. The denial of a registration certificate for any reason may be appealed in accordance with to the provisions of Chapter 2.50 of the Municipal Code. (d) Upon Change of Property Ownership, the Registration Certificate shall expire and the property shall not be used as a Vacation Rental until the new or successor Owner is issued a Vacation Registration Certificate for the property. The provisions of Section 5.25.040(b) shall be applicable to any such new or successor Owner. In the event of a change in agent or the occurrence of any other material fact set forth in the annual registration, a new registration for a Vacation Rental shall be required to continue operation of the Vacation Rental and within seven days of said change the Owner or his or her exclusive listing agent shall submit the required registration and fee. (e) The Owner or his or her exclusive listing agent shall cancel the Vacation Rental Registration Certificate within seven (7) days of the date the Vacation Rental is sold or Ordinance No. Page 9 otherwise disposed of or after an event that results in the unit no longer in use as a Vacation Rental (f) Each applicant for a Registration Certificate, including without limitation the Owner and the Owner's agent and/or representative, shall annually attend and/or participate in an educational program devised and administered by the City Manager for the purpose of training applicants for vacation rental registration certificates, or renewals thereof, on their respective roles and responsibilities in the successful administration and compliance with the City's Vacation Rental program. Each applicant shall annually take a test prepared and administered by the City Manager regarding each applicant's role and responsibilities in the Vacation Rental Program and Registration Certificates will not be issued or renewed until the applicant has successfully passed such test. 5.25.070 Operational Requirements and Standard Conditions. (a) The Owner shall use reasonably prudent business practices to ensure that the Vacation Rental unit complies with all applicable codes regarding fire, building and safety, health and safety, and all other relevant laws. (b) No more than thirty-two (32) Contracts for Vacation Rental use of a property shall be allowed or provided in any calendar year; however, up to four (4) additional Contracts shall be allowed or provided for the Third Quarter of a calendar year so long as the entire term of each such Contract occurs during such Third Quarter A Contract includes any occupancy of a property subject to a Vacation Rental registration certificate by persons other than the Owner when the Owner is not present during such occupancy, regardless of whether compensation is paid for such occupancy or whether occupancy is evidenced in an agreement or document. (i) In the event the number of fully executed and enforceable Contracts for a Vacation Rental of a property for calendar vear 2017 exceed the Contract limitations provided above as of February 15, 2017, such limitations shall not apply; however, no new or additional Contracts for such property shall be allowed for calendar year 2017. (ii) For the first year a Vacation Registration Certificate is in effect, the thirty- two (32) contract limit shall be prorated based on the number of months that elapse prior to the subsequent calendar year and in the event any portion of the Third Quarter occurs during the first year a Vacation Registration Certificate is in effect, the four (4) additional Contracts may be used during such Third Quarter. (iii) Notwithstanding the restrictions imposed by this Subparagraph, the Owner at the time an application or renewal is submitted can designate and file with the Enforcement Official the names of up to five (5) persons who may occupy the Vacation Rental unit at no cost and without requiring the presence of the Owner on the premises of the Vacation Rental. Each such occupancy shall fully comply with all other provisions of this Chapter. Ordinance No. Page 10 (c) The Owner shall limit overnight occupancy of the Vacation Rental unit to a specific number of occupants, with the maximum number of occupants as no more than two (2) persons per bedroom within each Vacation Rental unit and a maximum of no more than eight (8) persons total within the Vacation Rental unit, except that Owner may allow up to two (2) minor children, age 12 or under, to occupy the Vacation Rental in addition to the maximum number of occupants otherwise provided in this Subsection. The number of bedrooms in a Vacation Rental shall be verified by the Enforcement Official using County Assessor and/or City Building records and/or a physical inspection of the premises, prior to the issuance of a Registration Certificate. The Owner may also allow up to four (4) daytime occupants in addition to the total number of guests allowed for overnight occupancy pursuant to this Subsection. No more than one (1) automobile per bedroom shall be allowed for each Vacation Rental. Advertising and/or renting one or more Vacation Rentals as part of a cluster or compound is prohibited. (d) The Owner of an Estate Home shall be exempt from the limitations of Subsection (c) of this Section for up to two (2) additional bedrooms for housing to accommodate no more than two (2) persons for each additional bedroom approved pursuant to the Exemption up to a maximum of twelve (12) guests and up to two (2) minors age twelve (12) and under. (e) During the Rental Term each Vacation Rental unit is rented, the Owner, his or her agent, and/or the Local Contact Person designated by the Owner, after being contacted by the Enforcement Official, shall be available twenty-four hours per day, seven days per week, for the purpose of (1) responding by telephone within fifteen (15) minutes of complaints from or through the Hotline and (2) responding in-person within thirty (30) minutes to any additional or successive complaints regarding the condition, operation, or conduct of occupants of the Vacation Rental. (f) The Owner shall use reasonably prudent business practices to ensure that the occupants and/or guests of the Vacation Rental unit do not create unreasonable noise disturbances, engage in disorderly conduct, or violate provisions of the Municipal Code or any state law. (g) Notwithstanding the provisions of Section 11 .74.043, any radio receiver, musical instrument, phonograph, loudspeaker, sound amplifier, or any machine or device for the producing or reproducing of any sound shall be conducted within a fully enclosed Vacation Rental unit and shall not be audible at the property line of the Vacation Rental. (h) Prior to occupancy pursuant to each separate occasion of rental of a Vacation Rental, the Owner or the Owner's agent or representative shall enter into a written Contract with a Responsible Person where (1) the Responsible Person will provide the Responsible Person's name, age, address, and a copy of a government issued identification; (2) establishes and sets out the terms and conditions of the Contract, including without limitation occupancy limits, noise prohibitions, and vehicle parking requirements; (3) requires the Responsible Person to acknowledge and agree that he or she is legally responsible for compliance of all occupants of the Vacation Rental or their Ordinance No. Page 11 guests with all provisions of this Chapter and/or the Municipal Code; (4) the Owner or the Owner's Agent provides a copy of the "Good Neighbor Brochure" to the Responsible Person; (5) the Responsible Person provides a list of all guests by name; and (6) the Responsible Person provides a list of all guests' vehicles, including license plate numbers. Each Contract shall be maintained by the Owner or the Owner's Agent for a minimum of four (4) years and shall be readily available for inspection upon request of the Enforcement Official. A summary or abstract of the written Contract, in a form approved by the Enforcement Official, shall be filed with the Enforcement Official prior to occupancy, in a manner approved by the Enforcement Official, and shall be posted in a conspicuous location on the Vacation Rental property and shall be made available on site at the request of an Enforcement Official. (i) The Owner, or his or her agent, shall, upon notification by the Enforcement Official that the responsible person, including any occupant and/or guest of the Vacation Rental unit, has created unreasonable noise or disturbances, engaged in disorderly conduct, or committed violations of provisions of the Municipal Code or any state law, shall promptly respond in a timely and appropriate manner to prevent a recurrence of such conduct by those occupants or guests, and when requested by the City Enforcement Official, evict one or more of the guests. For the purpose of this Subsection and Subsection (j) below, the phrase "in a timely and appropriate manner" shall mean in-person contact within thirty (30) minutes for any call from the Enforcement Official. (j) Failure of the Owner or his or her agent to respond to calls or complaints regarding the condition, operation, or conduct of occupants of the Vacation Rental in a timely and appropriate manner shall be grounds for imposition of penalties as set forth in this Chapter. It is not intended that an Owner, agent, or Local Contact Person act as a peace officer or place himself or herself in an at-risk situation. (k) Trash and refuse shall not be left stored within public view, except in proper containers for the purpose of collection by the collectors and between the hours of five a.m. and eight p.m. on scheduled trash collection days. The Owner of the Vacation Rental unit shall use reasonably prudent business practices to ensure compliance with all the provisions of Chapter 6.04 of the Municipal Code (Waste Disposal and Diversion), and shall provide "walk-in service" or as may otherwise be approved by the Enforcement Official. (1) All home repairs (external and internal), garden and yard maintenance, and pool cleaning and maintenance shall not be performed between the hours of 5:00 pm on Friday through 8:00 am on Monday, except in the case of an emergency or the occurrence of an unexpected event that reasonable warrants a timely or immediate response. Repairs and maintenance shall not be scheduled in advance to occur during the days and time specified in this subsection. (m) The Owner or the Owner's agent or representative shall meet the Responsible Party in person at the Vacation Rental or the Owner's or Owner's agent's office prior to, Ordinance No. Page 12 or within twenty-four (24) hours of, the commencement of the occupancy and verbally explain and describe all rules and regulations applicable to the use of the property as a Vacation Rental and the responsibilities of the Responsible Party to the neighbors and the City as well as the Owner. The Owner shall secure the signature of the Responsible Party and all adult guests to a statement of rules and regulations prepared by the City Manager prior to or within twenty-four (24) hours of the arrival of the quest at the Vvacation Rrental.- (n) The Owner of the Vacation Rental unit shall post a copy of the Registration Certificate and a copy of the conditions set forth in this Section, including all rules and regulations applicable to the use of the property as a Vacation Rental, on the inside of the fronteach entry door and the primary door to the backyard or in a conspicuous location near each such entry door_ OR the V.,eation Rental (o) The Owner shall provide each occupant of a Vacation Rental with the following information prior to occupancy of the unit and/or post such information in a conspicuous place within the unit: (1) The name of the managing agency, agent, rental manager, Local Contact Person, or Owner of the unit, and a telephone number at which that party may be reached on a twenty-four-hour basis; (2) The maximum number of occupants permitted to stay in the unit; (3) The trash pick-up day and applicable rules and regulations pertaining to leaving or storing trash or refuse on the exterior of the property; (4) Notification that any radio receiver, musical instrument, phonograph, loudspeaker, sound amplifier, or any machine or device for the producing or reproducing of any sound shall only be operated within a fully enclosed Vacation Rental unit and shall not be audible at the property line of the Vacation Rental; (5) Notification that the occupant may be cited or fined by the City and/or immediately evicted by the Owner pursuant to state law, in addition to any other remedies available at law, for creating a disturbance or for violating any provision of this Chapter; (6) Notification that failure to conform to the occupancy requirements of the Vacation Rental unit is a violation of this Chapter; (7) A copy of this Chapter of the Palm Springs Municipal Code, as may be amended from time to time. Ordinance No. Page 13 (p) The use of a Vacation Rental unit shall not violate any applicable conditions, covenants, or other restrictions on real property. (q) The Owner shall comply with all provisions of Chapter 3.24 of the Municipal Code concerning transient occupancy taxes, including, but not limited to, submission of a monthly return for each Vacation Rental in accordance with Section 3.24.080. The monthly return shall be filed each month regardless of whether the Vacation Rental unit was rented or not during each such month. (r) The City Manager shall have the authority to impose additional standard conditions, applicable to all Vacation Rental units or identifiable classes of Vacation Rentals, as necessary, to achieve the objectives of this Chapter. A list of all such additional standard conditions shall be maintained and on file in the Office of the City Clerk and such offices as the City Manager designates. (s) Notwithstanding the provisions of Subsection (p) above, upon a determination of Good Cause, the City Manager may impose additional or special standards or requirements for placement or imposition of special conditions or performance standards for Owners, Owner's Agents, Local Contact Persons, and their affected Vacation Rentals. (r) The standard conditions may be modified by the Enforcement Official upon request of the Owner or his or her agent based on site- specific circumstances for the purpose of allowing reasonable accommodation of a Vacation Rental. All requests must be in writing and shall identify how the strict application of the standard conditions creates an unreasonable hardship to a property such that, if the requirement is not modified, reasonable use of the property for a Vacation Rental would not be allowed. Any hardships identified must relate to physical constraints to the subject site and shall not be self-induced or economic. Any modifications of to the standard conditions shall not further exacerbate an already existing problem. (t) The City Manager shall have the authority to establish administrative rules and regulations, which may include, but are not limited to, registration conditions, reporting requirements, inspection frequencies, enforcement procedures, advertising restrictions, disclosure requirements, or insurance requirements, consistent with the provisions of this Chapter, for the purpose of implementing, interpreting, clarifying, carrying out, furthering, and enforcing the requirements and the provisions of this Chapter. No person shall fail to comply with any such regulation. A copy of such administrative rules and regulations shall be on file in the Office of the City Clerk. (u) Owner shall procure, maintain, and pay premiums for commercial insurance policies that cover short term rental of property for each Vacation Rental with minimum limits as may be established by the City Manager from time to time. (v) Owner shall annually secure a building and fire and safety inspection prior to renewal of the Vacation Registration Certificate. Ordinance No. Page 14 5.25.075 Specific Prohibitions. (a) No person or entity shall offer or provide an 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, an apartment owner, an apartment manager, or a representative of the apartment owner or manager, shall evict any tenant or otherwise terminate a lease for the purpose of converting an apartment to a vacation rental or in anticipation of converting an 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 apartment owner, 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 apartment owner, apartment manager, or representative liable to the tenant for actual or punitive damages, including damages for emotional distress, in a civil action for wrongful eviction. The tenant may seek injunctive relief and money damages for wrongful eviction and the prevailing party in an action for wrongful eviction shall recover costs and reasonable attorneys' fees. (d) The provisions of Subsection (a) of this Section shall not apply to or be enforced against any person or entity who rents an apartment or portion thereof pursuant to a valid vacation 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 apartments and which may not have been recouped during the period of vacation rental use of the the 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. Ed. Note. Subsection (d) of Section 5.25.075 shall be deemed repealed and no longer in effect as of 12:01 am on January 1, 2019 and all persons and entities shall fully comply with the provisions of Subsection (a) of Section 5.25.075 of this Code. See § 4 of Ord. 1902 (2016). 5.25.078 Homesharing Authorization. Ordinance No. Page 15 (a) The Notwithstanding any provision of this Chapter to the contrary, homesharing shall be authorized in the City, provided that the Owner complies with each of the following requirements: (1) Obtains and maintains at all times a Vacation Rental Registration Certificate for Homesharing; (2) Operates the Homesharing Interest in compliance with all Vacation Registration Certificate for Homesharing conditions, which may be imposed by the Enforcement Official to effectuate the purpose of this Chapter; (3) Collects and remits Transient Occupancy Tax to the City and complies with all City Transient Occupancy Tax requirements as set forth in this Code; (4) Takes responsibility for and actively prevents any nuisance activities that may take place as a result of homesharing activities; (5) Complies with all applicable laws, including all health, safety, building, and fire protections laws; (6) Complies with the regulations promulgated pursuant to this Chapter. (b) In the event the Owner of a Homeshare Interest does not live on-site, in the home, and is not able to respond within thirty (30) minutes to complaints regarding the condition, operation, or conduct of occupants of the Homesharing lnterest, the property shall be deemed a Vacation Rental and Owner shall be required to fully comply with the provisions of this Chapter relating to Vacation Rentals, including without limitation, securing a Vacation Rental Registration Certificate. 5.25.080. Audit. Each Owner and agent or representative of any Owner shall provide the Enforcement Official with access to each Vacation Rental and the books, records, documents, papers, tax returns, and bank accounts at any time during normal business hours as the Enforcement Official may determine are necessary or convenient for the purpose of inspection or audit to determine that the objectives and conditions of this Chapter are being fulfilled. 5.25.085 Disclosure of Business Entitites, Limited Liability Companies, and Personal or Family Trusts Ordinance No. Page 16 On or before June 1, 2017, all Business Entities, limited liability companies, and personal or family trusts owning one or more Vacation Rentals shall disclose to the Enforcement Official the names, relevant contact information, and any such other information as may be requested by the Enforcement Official of each natural person holding the legal, equitable, and/or beneficial interest of each such Business Entitiy, limited liability company, or personal or family trust and the address of each Vacation Rental owned by each such Business Entity, limited liability company, or personal or family trust. Each Business Entity that complies with the provisions of this Section prior to June 1, 2017, shall, prior to June 1, 2018 transfer each Vacation Rental to a natural person who can otherwise comply with the provisions of this Chapter or cease operating any Vacation Rental properties owned by the Business Entity as Vacation Rentals. Any Business Entity that fails to comply with the disclosure requirements provided in this Subsection, shall cease operating all Vacation Rental properties owned by the Business Entity as Vacation Rentals no later than June 1 , 2017. 5.25.090 Violations. (a) Any person who violates a provision of this Chapter is subject to criminal sanctions and administrative penalties pursuant to Chapters 1.01 and 1 .06 of this Code and the specific penalties as provided in this Chapter. Any person who uses, or allows the use of, residential property in violation of the provisions in this Chapter is guilty of a misdemeanor for each day in which such residential property is used, or allowed to be used, in violation of this Chapter. An administrative citation issued pursuant to Chapter 1.06 for a first violation shall be five hundred dollars ($500.00) and each subsequent violation shall be one thousand ($1,000.00) dollars. Each administrative citation for a violation of any provision of this Chapter shall be levied or assessed against the Owner. (b) . Upon the third violation in any twelve month period, the City Manager shall suspend the Vacation Registration Certificate for two (2) years. (c) Any person who operates a Vacation Rental without a Vacation Registration Certificate, shall be liable to the City for the payment of transient occupancy tax pursuant to the provisions of the Palm Springs Municipal Code Chapter 3.24, including without limitation penalties and interest, payment of an administrative fine in the amount of Five Thousand Dollars ($5,000.00), and permanent ineligibility to operate a Vacation Rental in the City. In the event the person continues to operate a Vacation Rental without a Vacation Registration Certificate, the person shall be liable for an administrative fine in the amount of Ten Thousand Dollars ($10,000.00) and any successive violations shall be subject to fines provided in an escalation formula established by the City Council by resolution. (d) Any person who advertises a Vacation Rental without including the Vacation Registration Certificate in any advertising for such Vacation Rental, or operates a Vacation Rental without a contract, or without providing the City with a summary or abstract of such contract, or without timely tendering full monthly payments of transient occupancy tax, shall pay a fine in the amount of Two Thousand, Five Hundred Dollars Ordinance No. Page 17 ($2,500.00) and the Owner's Vacation Registration Certificate shall be suspended for six (6) months for a first offense and shall pay a fine in the amount of Five Thousand Dollars ($5,000.00) and the Owner's Vacation Registration Certificate shall be revoked for a second offense. Any subsequent violations will be subject to the provisions of Subsection (c) of this Section. (e) The failure of an Owner or the Owner's agent or representative to comply with an order of any police officer shall result in the revocation of the Vacation Registration Certificate. (f) The appeal and hearing provisions of Chapter 2.50 shall apply to any revocation or suspension of a Registration Certificate. (g) Any person who fails to pay any fee or charge provided in this Chapter within the time required, shall pay a penalty in the amounts established by the City Council by resolution. Such penalty may also include interest from the date on which the fee or charge became due and payable to the City until the date of payment. (h) The filing of knowingly false claims against a Vacation Rental or the guests staying in a Vacation Rental is prohibited and shall be punishable by administrative fines as provided in Chapter 1.06 of this Code. (i) In addition to, and not in lieu of, any other remedy allowed by law, all remedies prescribed under this Chapter are cumulative and the election of one or more remedies does not bar the City from the pursuit of any other remedy, criminal, civil, or administrative which may be pursued by the City to enforce this Chapter and/or address any violation of this Code or to remedy any other public nuisance. 5.25.100 Requirements Not Exclusive. The requirements of this Chapter shall be in addition to any license, permit, or fee required under any other provision of this Code. The issuance of any permit pursuant to this Chapter shall not relieve any person of the obligation to comply with all other provisions of this Code pertaining to the use and occupancy of Vacation Rental or the property on which it is located. SECTION 2. Section 93.23.16 is added to the Palm Springs Municipal Code to read: 93.23.16. Special Standards for Vacation Rentals of Estate Homes A. The vacation rental of an Estate Home shall be deemed a use permitted pursuant to a land use permit under the provisions of Palm Springs Municipal Code Section 94.02.01. For the purposes of this Section, the terms "Estate Home" and "Owner" shall have the meanings provided in Section 5.25.030 of this Code. Ordinance No. Page 18 B. Any Owner of an Estate Home with an active vacation rental certificate in full force and effect on February 8, 2017, shall be deemed in compliance with this Subsection and shall be issued a land use permit for such Estate home from the Director of Planning Services subject to standard conditions of approval consistent with the provisions of this Chapter and the Zoning Ordinance. Each application by an Owner for the vacation rental of an Estate Home after February 8, 2017, shall be subject to the applicant applying for and receiving a land use permit under the provisions of Section 94.02.01 of this Code. Any land use permit issued for the vacation rental of an Estate Home shall be issued to the Owner, subject to the provisions of this Chapter and such additional conditions as may be required pursuant to Section 94.02.01 of this Code. Any land use permit issued for a vacation rental of an Estate Home shall not run with the land. C. Upon a determination by the City Manager of a third Qqualified violaticnSomplaint within any twenty-four (24) month period regarding the vacation rental of an Estate House, the land use permit for such vacation rental shall be subject to revocation or modification by the Planning Commission at a noticed public hearing to be held in the manner provided for in Section 94.09.00 of this Code. Fer the n, rnese of this Section the term "Qualified Gemnlaint" shall mean a oomnlaint of hehavi nr o adjoining the Estate House , as reaSORably deteFMined by the City Manager o the des'e of the City Manager. D. The revocation or modification process shall be conducted pursuant to the following:- 1. The Commission shall, not less than ten (10) nor more than thirty (30) days after the notification of the Owner of revocation or modification, hold a public hearing on the matter. 2. The Commission shall reach its decision within thirty (30) days after the conclusion of the public hearing. The decision shall set forth the findings of the Commission and any recommended conditions, including without limitation any time limit deemed necessary to protect the health, safety, and welfare of persons in the neighborhood and in the city as a whole. 3. The decision and findings shall be filed with the City Council within fifteen (15) days after they have been reached. A copy of the minutes thereof shall be mailed to the Owner. The action of the Commission shall be final unless appealed to the City Council. 4. The Commission shall consider the following issues and potential conditions in its review of a vacation rental of an Estate Home. a. Regulation of use, Ordinance No. Page 19 b. Special yards, space and buffers, c. Fences and walls, d. Surfacing of parking areas subject to city specifications, e. Requiring street, service road or alley dedications and improvements or appropriate bonds, f. Regulation of points of vehicular ingress and egress, g. Regulation of signs, h. Requiring landscaping and maintenance thereof, i. Requiring maintenance of the grounds, j. Regulation of noise, vibration, odors, etc., k. Regulation of time for certain activities, I. Time period within which the proposed use shall be developed, m. Duration of use, n. Dedication of property for public use, o. Limitation on the number of guests, p. Limitation on the number of vehicles, q. Imposition of building and/or safety requirements applicable to small hotels, r Such other conditions as will make possible the development of the Ceity in an orderly and efficient manner and in conformity with the intent and purposes set forth in this Zoning Code, including but not limited to mitigation measures outlined in any applicable environmental assessment. SECTION 3. The City Council finds and determines that this Ordinance is not subject to the California Environmental Quality Act (Public Resources Code Section 21000 et seq.) pursuant to Section 15060(c)(2) and 15060(c)(3) of the State Guidelines, because the Ordinance will not result in a direct or reasonably foreseeable indirect physical Ordinance No. Page 20 change in the environment and is not a "project," as that term is defined in Section 15378 of the State Guidelines. In addition, The City Council also determines this Ordinance consists of regulations intended to ensure that commercial short term rental use of residential property remains an ancillary and secondary use of residential property in the City and thereby preserve the residential character of the City's single- family and multi-family neighborhoods as identified in the City's adopted General Plan, and its concomitant Environmental Impact Report. Thus, to the extent there is any environmental impact from the adoption of this Ordinance, the City Council finds that the Environmental Impact Report for the adopted General Plan is the controlling environmental document. SECTION 4. This Ordinance generally deals with the subject matter of Ordinance 1907, which was the subject of a referendum submitted on January 12, 2017. Ordinance 1907 is therefore suspended pending a determination of and action on the referendum. The City Council finds that this Ordinance is essentially different from Ordinance 1907 in that it contains modifications, amendments, and changes that are now endorsed by several local intereststhese who participated in the circulation of, and who prepared, circulated, e supported the referendum petition. Specifically, this Ordinance recognizes vacation rentals as ancillary and secondary uses of residential property in the City. In addition, Ordinance 1907's prohibition on multiple ownerships contained an amortization period that would require Owners to dispose of vacation rental properties by the end of the amortization period; this Ordinance grandfathers all existing ownerships thereby allowing Owners to continue to operate vacation rental properties they currently own until they sell or otherwise choose to dispose of each property. Ordinance 1907 allowed a maximum of 32 vacation rental contracts per property; this Ordinance allows an additional 4 vacation rental contracts during the summer months and grandfathers Contracts in excess of such limits for calendar year 2017 entered into prior to February 15, 2017. Ordinance 1907 provided exceptions from certain occupancy limitations as applied to estate homes; this Ordinance includes vacation rental estate homes as a use subject to a land use permit coupled with an administrative review before the Planning Commission under certain circumstances. This Ordinance also includes additional requirements on Owners and their agents and representatives, including periodic training and testing, prohibitions on gardening and property maintenance on weekends, imposition offepuires face to face meetings with a Responsible Party within 24 hours of commencement of occupancy, and securing written acknowledgements of rules and regulations from all adult guests within 24 hours of the commencement of occupancy, and reduced the number of on-site locations for the posting of rules and regulations. The City Council further notes that Ordinance 1907 was also a restatement of the Vacation Rental Ordinance in effect at the time Ordinance 1907 was adopted and. Thp Co;^e:; therefore finds that the provisions of the Code in effect at the time Ordinance 1907 was adopted and that were not changed or amended by Ordinance 1907 were not subject to the referendum and therefore were not matters the referendum proponents contested. The revisions to Ordinance No. 1907 as provided in this Ordinance are due in part to the efforts of the City Council's subcommittee to negotiate with representatives of those who supported the referendum, Ordinance No._ Page 21 the referendum proponents, and affected residents. This Ordinance reflects changes suggested and/or supported by all such interests. SECTION 5. The City Manager is authorized to exercise reasonable administrative discretion in the implementation of this Ordinance during the first year this Ordinance is in effect, including without limitation phasing in of programs, policies, and practices consistent with the business needs of the City, any department, division, bureau, or section designated to enforce this Ordinance, and the overall responsibilities and priorities of the City Manager as provided by the City Council. SECTION 6. Any valid rental agreement for a Vacation Rental with occupancies in terms of number of guests and/or vehicles in excess of the requirements of Section 5.25.070(c) of this Ordinance, entered into between an Owner or an Agent with a renter and the renter has paid a deposit for such rental prior to November 30, 2016, shall be deemed consistent with the provisions of this Ordinance so long as such rental agreement and the Vacation Rental otherwise complies with the requirements of this Ordinance. In addition and notwithstanding any provisions to the contrary within Section 5.25.070(b)(ii), any holder of a Registration Certificate as of the effective date of this Chapter can submit a list of names as provided in Section 5.25.070(b)(ii) within thirty (30) days of such effective date. SECTION 7. Notwithstanding any provision to the contrary in this Ordinance, any limitation or prohibition regarding the use of homes that would otherwise qualify as an estate home shall not be applicable or enforceable until the thirty-first (31s) day after this Ordinance becomes effective and Contracts for such homes, fully executed prior to such date, shall be recognized as valid under this Ordinance. SECTION 8. It is the intent of the City Council that the implementation and administration of this Ordinance shall be monitored and reviewed by the City Council's subcommittee and the City Manager in consultation with members of the vacation rental industry and residents of the City. It is also the intent of the City Council that the subcommittee will periodically report and/or make recommendations to the City Council regarding such implementation and administration. It is the expectation of the City Council, notwithstanding any other provision in this Ordinance, that the subcommittee will endeavor to meet monthly as provided herein and that in no event later than April 1, 2019, or as soon thereafter as may be reasonably practicable, provide to the City Council a report on the overall implementation and administration of this Ordinance, including recommendations regarding refinements, amendments or revisions as the subcommittee may deem appropriate. SECTION 9. The provisions of this Ordinance are severable. If any portion, section, subsection, paragraph, clause, sentence, phrase, work, or application of this Ordinance is for any reason held to be invalid by a decision of any court of competent jurisdiction, that decision shall not affect the validity of the remaining portions of this Ordinance. The City Council declares that it would have adopted this Ordinance and each and Ordinance No. Page 22 every portion, section, subsection, paragraph, clause, sentence, phrase, word, and application not declared invalid or unconstitutional without regard to whether any portion of this Ordinance or application thereof would be subsequently declared invalid. SECTION 910.. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law and this Ordinance shall take effect thirty (30) days after passage. PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS _ DAY OF 12017. ROBERT MOON, MAYOR ATTEST: KATHIE HART, INTERIM CITY CLERK Ordinance No. Page 23 Protect Our Neighborhoods Marla Malaspina/ Chair Feb 15, 2017 The back-room private negotiations between City officials and the VR Industry that we've witnessed this past week are unacceptable and had their start back in 2008, when the industry had their hand in crafting the first VR Ordinance, which threw the residents under the bus. And it's gone on way too long. The process is clearly unethical if not illegal. A clear example of this is the determination of the allowable number of short-term rental contracts per year, which started at 26, a number provided to the Sub-Committee by a single VR agency as what it took for them to be profitable. That number then went from 26 to 28 to 32 and now 36 without any public input or debate. Tonight's proposed Urgency Ordinance will allow unlimited STRs in Palm Springs. No Caps. And it will grandfather in all of the corporate and investor-owned properties to be run as full- time unsupervised motels until the day they are sold. Enough is enough. It's time for the residents to have their say and for the courts to weigh in on this issue once and for all, as they have in so many other cities across California and elsewhere. Kathie Hart From: Jay Thompson Sent: Thursday, February 16, 2017 7:12 AM To: Kathie Hart;Cindy Berardi Subject: Fwd: Public Comment Re:Vacation Rental Compromise for 2/15 Meeting Begin forwarded message: From: Jim Gazan <iimgazanLagmail.com> Date: February 15, 2017 at 1:21:29 PM PST To: <Jay.Thompsonna palmsprin seg a.gov>, Robert Moon<robert.moon( yalmspringsca.gov>, Ginny Foat <gfinla ,msn.com>, <Ginny.FoatApalmspringsca.gov>, <GeoffXorsna palmspringsca.gov>, <i r.roberts(cre,palmspringsca.gov> Subject: Public Comment Re: Vacation Rental Compromise for 2/15 Meeting Dear Council, Based on today's press conference, I'm disappointed with further compromises that benefit the VR industry. I doubt that today's announcement will eliminate their campaign. While debating the new terms tonight, there should be a sunset date on owning more than one vacation rental property, maybe 2025. The owners of multiple rental homes are generally the culprits when it comes to noise, over- occupancy and simply ignoring the "good neighbor policy". Although, meeting renters at the door is a good policy in theory, it simply becomes an honor code that can be easily ignored by the industry. The ordinance that stands in limbo today is fair. There are numerous real estate agents that fear the backlash of an outright ban, and they will come to the same conclusion. Let the voters decide in November. Thank you, Jim Gazan r Judy Deertrack 1333 South Belardo Road, Apt 510 Palm Springs, CA 92264 Wednesday, February 15, 2017 SUPPLEMENTALSTATEMENT VACATION RENTAL HOUSING IMPACTS /SMALL LOT R-1 DEVELOPMENT SUBMITTED FEBRUARY 14, 2017 To the City Council, Palm Springs, California 3.A. ORDINANCE NO. 1907 REFERENDUM PETITION RELATING TO VACATION RENTALS: 3.6. RESCIND ORDINANCE NO. 1907, ADOPT INTERIM URGENCY ORDINANCE RELATING TO VACATION RENTALS (4/5THS VOTE REQUIRED), AND INTRODUCE AN ORDINANCE RELATING TO VACATION RENTALS: To the Honorable City Council, I made a presentation on February 13, 2017, during Public Commentary to the Ad Hoc Committee that is studying the Planned Development District Permit (PDD), for recommendations to the City Council. During those comments, I referenced the long-term impact of abusing the POD process. A POD is a development permit for commercial development that allows the City to achieve minor modifications and alter the development zoning standards where needed for flexibility and enhanced design --always in the public interest. Zoning standards achieve what might be called, "building within the box" or "drawing within the lines" to avoid overuse of an individual lot. The standards address reasonable limitations on height, mass, density, setbacks, open space, distance between buildings, parking,and type and intensity of residential housing within the district. During the last ten years, the City has used a POD to pervasively waive standards in almost ninety per cent (90%) of commercial developments. The two most noticeable and prominent conversions are height waivers and changes in residential use. In a dramatic break from industry practices and state law, the City uses the POD not only to waive height, setbacks, and open space requirements - but it frequently uses the POD to amend the General Plan, to amend Specific Plans, and to amend underlying ordinances - to put a "pig in a poke" - or to allow the developer to add a use or combination of uses that was never legally intended or allowed in the General Plan. How does this apply to the short-term vacation rental ordinance? The Dakota Project next to Tahquitz Mesa Villas (a Wessman Project) behind SteinMart converted a General Plan requirement for multi-family housing (R-3) and common open space requirements (45-60%) to R-1 uses instead - without a General Plan Amendment, and without a Change of Zone. The PDD was the mechanism to amend-and PDD's do not amend! Now, the Dakota Project qualifies for vacation rentals at 36 weekends per year, and TMV residents will be exposed to the noise and disruption within a neighboring lot that never would have qualified for short-term rentals without abuse of the PDD process. This is where ► live. The elimination of setbacks allowed a devastating "lot squeeze' that destroyed privacy. With the economic windfall of short-term vacation rentals, there is going to be considerable developer pressure to convert R-3 and R-4 zoned lands, which have been reserved for affordable housing opportunities into R-1 single-family residences - because R-3 and R-4 multi-family zoning is exempt under this proposed Ordinance. The City has disregarded the California Environmental Quality Act, where these outcomes would have been assessed and mitigated, if possible. I urge that this proposed Ordinance be vacated, and await the public vote on the Referendum. With regard, r Judy Deertrack /� C /�1^ Le9 r� ' L � - /5' �2D/ 7 f�d l t}2a lU r�L<�S ITEM 3A ITEM 313 Judy Deertrack 1333 South Belardo Road, Apt 510 Palm Springs, CA 92264 Wednesday, February 15, 2017 To the City Council Palm Springs, California 3.A. ORDINANCE NO. 1907 REFERENDUM PETITION RELATING TO VACATION RENTALS: RECOMMENDATION: 1) Receive and file the attached Certificate of Sufficiency for a petition titled "Referendum Against an Ordinance Passed by the City Council -Ordinance No. 1907."2) Direct staff to prepare necessary documents for further consideration of the City Council. 3.6. RESCIND ORDINANCE NO. 1907, ADOPT INTERIM URGENCY ORDINANCE RELATING TO VACATION RENTALS (415THS VOTE REQUIRED), AND INTRODUCE AN ORDINANCE RELATING TO VACATION RENTALS: RECOMMENDATION: 1) Adopt attached Ordinance rescinding Ordinance No. 1907. 2) Adopt Urgency Ordinance No. , "AN INTERIM URGENCY ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING AND RESTATING CHAPTER 5.25 OF, AND ADDING SECTION 93.23.16 TO, THE PALM SPRINGS MUNICIPAL CODE RELATING TO VACATION RENTALS (4/5ths Vote Required)." 3) Introduce and refer to the Planning Commission for review and comment, Ordinance No. , "AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING AND RESTATING CHAPER 5.25 OF, AND ADDING SECTION 93.23.16 TO, THE PALM SPRINGS MUNICIPAL CODE RELATING TO VACATION RENTALS." To the Honorable City Council, BROWN ACT VIOLATIONS / FAIR HEARING LAWS: 1 am very distressed to see every evidence of a Sub-Quorum Ad Hoc Committee meeting privately with one side of such a disputed public issue (the industry side) in order to join forces and draft an ordinance that supposedly represents the general welfare of Palm Springs - when the interests of this outside industry have little or nothing to do with the public welfare. I know that they intent is to compromise, but this was effectuated by literally going behind closed doors and cutting out one side of the negotiation - Protect Our Neighborhoods (PONS) and other affected citizenry-who have not had equal opportunity to influence the outcome. But, primarily, the losers are the general public who will attend a legislative matter that SHOULD have a hearing because of the obligations to assess this under the California Environmental Quality Act (CEQA). As it is, our comments go under "general public commentary;" off the Agenda Item record of testimony and action. An impartial administrative staff did not draft this ordinance. It may have been drafted in an atmosphere of industry threats, from everything said in the public forum. The terms were the outcome of personal contact with the industry of two if not three city council members who will vote on the ordinance, regardless of everyone's good intent. My recommendation is to drop this process and let the Referendum proceed to public vote without interference. This use of Ad Hoc Sub-Quorum, outside of public meeting context, is an extremely controversial practice; it may be a practice that ultimately violates the Fair Hearing Laws of the State of California - because two members of the hearing body are negotiating a solution they will then vote upon, and Ms.Foat is publicly stating she is working behind the scenes in some unidentified manner. These comments reflect a potential serial meeting. In fact, I would like to clarify this situation. 1 am asking this letter be placed under Agenda Items 3A and 3B for Wednesday, February 15, 2017, and that the city disclose in response to a request for public records, any minutes, memoranda, agreements, deal points, Memorandums of Agreements, emails, written communications, and other evidence of communications between the parties representing the pending Referendum and any and all members of the City Council. Once the list is compiled, 1 would like to make an appointment to come in and inspect the record. I would also like to know if the parties that deliberated with the City on the make-up and nature of the Ordinance to be amended were registered lobbyists. Further, 1 would like to confirm whether or not, in the course of these negotiations, there were threats of recall on any city council members if the negotiations were not deemed "successful" by the Referendum negotiators, or their attorneys; and if any such threats were either suggested or made outright, by whom. Any such negotiations do not have a veil of secrecy,since there is no pending litigation, and this is not Closed Session. 02 - 15- 2017 Add i4i o-r al lYdrti" 3ia q- 'S.S . 2 The state has just been through the extended controversy of the Coastal Commission where ex parte meetings with involved parties before a hearing or deliberation were very much questioned in the manner they reflected (1) bias of the decision-maker; (2) deliberation before the public body; (3) equal opportunity for all sides to be heard. The City might argue that this ordinance is legislative in nature, and this "industry contact" is simply lobbying activity that does not apply to an administrative hearing. The germane point is this; the passage of this ordinance will enhance the economic interests of and vest entitlements in clients of these lobbyists. Therefore, the administrative hearing and appeal rights are directly implicated in this. The ordinance is targeted to a prominent group of people waiting to secure permit rights; and those are tied directly to this industry who appears to be "writing the ordinance" behind the scenes - whether in compromise or not! OVERBREADTH OF THE ORDINANCE (GENERAL PLAN CONSISTENCY / RE-ZONE IMPACT / INCONSISTENT WITH RESIDENTIAL CHARACTERISTICS Residential characteristics (primary residential use as habitation of a person(s) or family) is the primary thrust of the Residential General Plan Classifications. The zoning characteristics of R-1 do include certain commercial, residential- serving, compatible uses, such as nurseries, child care, churches, schools, parks, and recreation - but even these require a Conditional Use Permit (CUP) which allows the City to regulate the frequency, location, and nature of use so closely, that on each permit, not only is a public hearing secured, but the criteria for denial of the permit on a CUP leaves broad discretion with the Planning Commission or City Council to DENY THE PERMIT when deemed disruptive to the surroundings. Home occupations are narrowly tailored to non-disruptive activities that either minimize or eliminate visits by third parties, and allow residents some meaningful use of their homes for their own personal occupations. Vacation rentals don't allow the owner to conduct their occupations in their own homes; vacation rentals replace home ownership with third party short-term residency; and as the City admits, along the lines of a commercial hotel. It is a direct, and major conversion of residential use to commercial use; it is not minor; it is not non-disruptive; it is designed with one thing in mind-making an income from home ownership itself by converting the residential use. And when it is allowed at 36 weekends per year - and 100% of the homes in the R-1 district qualify - it is a dramatic conversion of a neighborhood - in fact, it undermines and destroys the residential classification rather than achieving "minor and subsidiary enhancement." Impacts must be measured from the full permit potential, which is not unrealistic, considering that some of the Palm Springs neighborhoods already have around 70% conversion- or at least this is what 1 have heard. The CUP procedure also leaves a case-by-case hearing that allows for the fine tailoring of cumulative impacts. Conditional Use Permits are appropriate for uses that are interspersed within residential communities (gas stations along corridors, churches, etc.) but the real import of using the CUP is the assumption that too much of a good thing can destroy or erode the residential environment. So, fine tailoring is required for both frequency of use and location of use, and the burden actually shifts to the applicant to demonstrate that the use is appropriate and not overloading the environment. None of that protection is present with this proposed Ordinance, or its predecessor. This ordinance has both vagueness and over-breadth. Its regulatory framework is so undefined that EVERY SINGLE HOME in an R-1 District could qualify for commercial use until the residential designation completely disappears; and the City would STILL be defining the permits as ancillary to residential use. This is like the snake that eats its own tail until it disappears. Once the ordinance is in place, and the permits proceed with no disqualifying criteria - so it is not truly regulatory - rather, it is the method by which the city is fund-raising for itself- the procedures have to do with collecting information for collecting money down the line - then truly the residential neighbors victimized by this have lost any handhold for claiming public nuisance. The micro-actions of each household signing on to commercialize their home over time incrementally can destroy a neighborhood and all its original elements - with never a stopping point. In other words, the residents are at the mercy 3 of circumstances -- perhaps it will be a few homes; perhaps rentals will become rampant. But the seeds of potential destruction are laid within the ordinance itself and its permissiveness! The ordinance has no proper safeguards or boundaries to protect the equities due to its own citizens and their rights to privacy, peace and quiet, and separation from commercial activity-all the original safeguards of the American home. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) AND THE RESPONSIBILITY TO MITIGATE THE IMPACTS ON RESIDENTIAL USERS Now, with a fairly clear and accurate picture of what has driven hundreds of residents to City Hall in desperation to protect their homesteads after many a troubled weekend and night - we have the environmental issue. I direct the City to study the case of City of San Diego, where the City admitted CEQA was necessary at the point it added "short-term vacation rental" to its residential zone as a newly permitted use. The City only LATER disputed a position taken by the attorneys for "Save San Diego Neighborhoods"that CEQA was necessary when the ordinance was subsequently amended. The City of Palm Springs has never at any point gone through an environmental process. If it had, and if impacts had clearly been identified, particularly the disruption to public services, police,fire, EMS, permit activity, enforcement, noise complaints, and collection of fees - perhaps the mitigation approach (viable alternatives to the over-breadth of this ordinance) could have allowed such solutions as: (1) Minimum thirty (30) day rental; (2) strict terms placed on number of weekends (ie: 10-12 weekends per year) - and these would have gotten more realistic consideration. A CEQA review would have allowed for a hopefully realistic and honest evaluation under its Land Use Impacts, on whether this Ordinance, as written, is compatible with the General Plan policies, goals, objectives, standards, and programs- particularly in its Land Use Element and Housing Element- and the delicate balancing that separates housing from disruptive commercial activity,and very carefully allows only that commercial activity that is neighborhood-serving for its residential neighborhoods - leaving visitor-serving and commercial business district, with all its cacophony - carefully and safely separated from residential function. I have quoted from the Memorandum dated September 8, 2015, from Save San Diego Neighborhoods, that paraphrases the legal position of its attorneys on CEQA, "The letter advises City officials that changing the City's Municipal Code to allow short-term vacation rentals(STVR) to operate in San Diego's residential zones represents a 'fundamental change"to the Municipal Code. Save San Diego neighborhoods also asserts that to allow STVR into residential zones violates the City's General Plan and adversely effects all ten elements of the Plan, in particular, noise, housing and services and safety. As the letter states, "The eventual adoption of an ordinance expressly allowing STVR's in single family residential zones will have multiple, foreseeable, direct and indirect physical impacts upon the environment and constitutes a non-exempt"project"under CEQA,"the letter states. Save San Diego Neighborhoods' further contends that complying with CEQA and working through the environmental impact report (EiR) process will inform the discussion regarding the appropriateness of allowing STVR to operate in San Diego residential neighborhoods. Save San Diego Neighborhoods believes that the results of an EIR will not support the imposition of a new ordinance permitting STVR in residential zones in San Diego. On the contrary, the EIR will identify significant impacts that the City will be unable to mitigate, including depleting housing stock, noise pollution, air pollution, traffic congestion, additional and unmanageable stress on City services, in particular first responders-fire and law enforcement water, trash, and parks and recreation personnel and facilities. " I encourage the City Council to create appropriate distance from an industry that is pursuing its own economic interest above the comfort of the community. I encourage the City Council to forego the temptation of economic windfall over "doing the right thing." I definitely encourage everyone concerned to start with a modicum of common sense. There was a time when the protection of the neighborhood would have been self-evident. Now, it competes with a new 4 industry using a new technology. No one wants the thrust and outcome of that technology so deeply in their face and their spirit that they can no longer take a breath and enjoy the marvel of our community. With regard, Judy Deertrack Resident of Palm Springs Candidate for City Council 2017 T UTTON LAW FIRM February 10, 2017 VIA EMAII. ONLY c., Douglas Holland, Esq. ; o Palm Springs City Attorney 3200 E. Tahquitz Canyon Way o m T� M. Palm Springs, CA 92262 f., m RE: Rescission of Ordinance No. 1907 and Objections to = m Interim Urgency Ordinance Relating to Vacation Rentals -r N O Dear Mr. Holland: As you know, this office represents Citizens for a Better Palm Springs;the supporters of the referendum petition against the "Vacation Rental Ordinance" (Ordinance No. 1907). We have reviewed the City Council Staff Report dated February 15,2017 and the attachments thereto. Our client is pleased to see that an ordinance-is being considered at the Council's upcoming meeting that will rescind Ordinance No. 1907, consistent with the legal options available to the City Council pursuant to California Elections Code section 9241. With regard to the two additional proposed ordinances, however-both of which are substantially similar to Ordinance No. 1907-our client is extremely disappointed that the Council is pursuing these proposals, in view of the constitutional, statutory, and case law protections applicable to the right of referendum. (See generally, California Constitution, Article IL Section 9; California Elections Code sections 9235 et seq-- and case law cited below.) This letter is to put tine City on notice that we believe it would be a violation of the law for the Council to adopt the proposed Interim Urgency Ordinance Relating to Vacation Rentals (as well as the companion non-urgency Ordinance). The statements contained in Section 5 of the proposed Urgency Ordinance that"this Ordinance is essentially different from Ordinance 1907 in that it contains modifications. amendments, and changes that are now endorsed by those who prepared, circulated, or supported the referendum petition" is not accurate. As you know, Citizens for a Better Palm Springs is the entity that prepared and circulated the referendum petition. It has not endorsed the modifications, amendments, and changes and therefore, such statements cannot properly be used in support of the City's assertion. 150 Post Street, Suite 405 _ San Francisco, CA 94108 Tel: 415i732-7700 Fax: 4 1 51732-770'1 www.campaignlawyers.com . . .......... ......-...........- Douglas Holland, lisq. Palm Springs City Attorney February 10, 2017 Page 2 As a reminder, courts have consistently concluded that city councils, after rescinding an ordinance pursuant to a referendum petition, may not deal further with the subject matter of the rescinded ordinance unless any new ordinance is not substantially similar from the ordinance protested against. While we recognize that certain members of the City Coenroil and some members of Citizens for a Better Palm Springs have had discussions about a revised proposed ordinance, to date Citizens for a Better Palm Springs has not endorsed the proposed ordinances. Notwithstanding the foregoing, our client would like to reengage in discussions, in good faith, regarding the proposed ordinances and attempt to resolve any outstanding issues to the satisfaction of all parties. Please advise if Councilman Kars and Councilman Roberts are available to meet early next week. Our client believes that all parties can come to a satisfactory resolution in advance of Wednesday's Council meeting. We look forward to hearing from you as soon as possible in this regard. Sincerely; Bradley W. Hertz cc: Robert Moon, Mayor Ginny Feat, Mayor Pro Tern Chris Mills, Councilmember Geoff Kors, Councilmember J.R. Roberts, Councilmember Kathie Hart, Interim City Clerk David H. Ready. Esq., Ph.D., City Manager B WH/slf 1901.01 THE V'TT©N LAB FIRM February 14, 2017 VIA E-MAIL ONLY Douglas Holland, Esq. Palm Springs City Attorney 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 RE: Rescission of Ordinance No. 1907 and Objections to Interim Urgency Ordinance Relating to Vacation Rentals Dear Mr.Holland: We are in receipt of your letter dated February 13, 2017, and wanted to clarify a few inaccuracies in your letter. First,our client, Citizens for a Better Palm Springs, is the only organization that circulated the referendum petition. While your letter lists a number of people believed to be associated with the referendum effort, only Brady Sandahl and Nicole Jensen are members of Citizens for a Better Palm Springs. As noted in our letter dated February 10, 2017, neither Mr. Sandahl nor Ms. Jensen have the authority to bind Citizens for a Better Palm Springs. Second, your characterization that Mr. Sandahl stated that he had decision making authority for Citizens for a Better Palm Springs is simply not true. While Mr. Sandahl is the spokesperson for Citizens for a Better Palm Springs, he is not the decision maker. Similarly, Ms. Jensen did not represent that she had authority on behalf of either Citizens for a Better Palm Springs or Palm Springs Regional Association of Realtors. As is well known by the Council, Palm Springs Regional Association of Realtors has a Board of Directors and only that Board has authority to agree to a compromise, not Ms. Jensen. Please be advised that Citizens for a Better Palm Springs continues to object to the two proposed ordinances. Specifically, our client believes that: • the proposed limit of 32 rental contracts plus four in the summer is too low; even though a number of rental companies have done more than 45 rental contracts in a year, in the spirit of compromise, a more appropriate limit is 42 rental contracts; in addition, any existing rental reservations should be grandfathered and not subject to the foregoing cap (or alternatively change the timing of the rental contract count to be during the period from July 1-June 30); • land use permits shall automatically continue for an Estate House for current owner and future owners unless or until the Estate House had three qualified violations within a twenty four(24) month period. • the overnight occupancy should be increased to 10 persons (as opposed to 8)plus two minors given that there are a number of 5 bedroom properties that are utilized for vacation rental and; 150 Post Street,Suite 405 F] San Francisco, CA 94108 Tel:415/732-7700 W Fax: 415/732-7701 n m"v.campaignla vyers.com Douglas Holland,Esq, Palm Springs City Attorney February 14, 2017 Page 2 • there should be no limit on the number of homes that a person can own that can be utilized for vacation rental; We understand that today a meeting is scheduled to take place between representatives of our client and members of the Council Subcommittee. Our client believes that through constructive dialogue all parties will be able to come to a mutually satisfactory resolution of the outstanding issues. Regarding the referendum process, your letter noted that"The only action the City Council is required to take at its meeting on February 15 is to receive and file the Certificate of Sufficiency." In light of our client not agreeing to the proposed ordinances, can you please confirm that the City Council will only receive and file the Certificate of Sufficiency at its February 15,2017 meeting, and not take any action on the two proposed ordinances? If so, the parties can continue to negotiate in the coming weeks in order to reach a satisfactory resolution and then have such compromised ordinances placed on the agenda of a future City Council meeting. Finally,please be advised that unless we reach an appropriate resolution to this matter, our client objects to the adoption of the currently proposed ordinances relating to vacation rentals because they are substantially similar to the ordinance previously subject to referendum. We look forward to hearing from you as soon as possible to confirm that only the Certificate of Sufficiency, and not the two proposed ordinances,will be acted on tomorrow by the City Council. Sincerely, Bradley W. Hertz cc: Robert Moon, Mayor Ginny Foat, Mayor Pro Tern Chris Mills, Councilmember Geoff Kars, Councilmember J.R.Roberts, Councilmember Kathie Hart, Interim City Clerk David H. Ready, Esq., Ph,D„ City Manager JSM/slf #1901.01 Terri Milton From: Dale Sexton <176djs@gmail.com> Sent: Wednesday, February 15, 2017 2:08 PM To: Robert Moon;A Roberts; Geoff Kors; Ginny Foat Cc: David Ready; Terri Milton Subject: STR surrender I am stunned that the subcommittee, after months of thoughtful fact and opinion gathering from ALL sides of the STR issue, would hold discussions solely with the cancerous STR industry and then agree to grandfather permits issued heretofore which would be in violation of the new ordinance. You have now moved beyond the fiction of"ancillary use" and will be providing formal legal status to businesses in RI zones. That is going to come back to haunt you. Dale Sexton 0 15 2-o17 t RECEIVED CI Y OF Pl,LM SPP,ING= SMAL 2017 FEB 15 PM 2: 30 0 t` IL U 0 Small Friendly Distinctive With Something for Everyone We in wke hiidiiig flint pe'r1ecl little hideaway way A 1'rrtu:t! .snap S.H.O.P.S Board of Directors Demand for Immediate Action on Vacation Rental It has come to our attention that a private meeting has been conducted and an agreement has been made with the vacation rental industry which did not involved neither Protect Our Neighborhoods (PON) nor Small Hotels of Palm Springs (S.H.O.P.S). We were not even notified at all and only found out by accident. Not the way of ensuring all of your voters and your legitimate hospitality business involvement. Our legitimate industry that gives Palm Springs its special cachet and character has been definitely economically damaged by massive number of vacation rentals operating in R-1 Zoning. Though not ideal we were prepared to support the vacation rental ordinance #1907 which was the result of numerous open and transparent hearings including wide public participation. We are not however, prepared to support an emergency ordinance which was hammered out behind closed doors without PON or S.H.O.P.S participation and input that includes 5 Z o i 7 new features and concessions that we can't live with. We demand it to be withdrawn. We realize that this was a reaction to gross bullying by the vacation rental industry and many from out of town real estate agents which include threats of heavy campaign spending and the possibility of certain council recalls. What we have seen in the most recent council election is that our community has woken up to the development abuses to our city and has clearly ignored massive campaign infusion. Recalls are idle threats and will not be successful. We encourage you to stand strong in performing your duties in which you were elected to do so and protect our neighborhoods and small hotels and do not adopt the emergency ordinance which was illegally modified. We would like to support our city officials to resolve issues locally however, if forced to we will request court ruling on total ban of vacation rentals in residential neighborhoods in keeping with the 1924 Supreme Court decision. Meanwhile, don't be afraid to let the people vote on ordinance # 1907. The Board of Virector-s of SHoP'S; n qq � Terri Milton From: Walter Gonzales <wgonzales@homeaway.com> Sent: Wednesday, February 15, 2017 1:31 PM To: Robert Moon; Geoff Kors;JR Roberts; Ginny Foat; Chris Mills; David Ready; CityClerk Cc: Walter Gonzales Subject: Palm Springs Vacation Rental Ordinance Attachments: HA Palm Springs City Council Letter 021517 FINAL.pdf Mayor Moon and Members of the City Council, Please see the attached letter from HomeAway regarding Item 3.B., relating to vacation rentals, on the agenda for tonight's City Council Meeting. Please feel free to contact me with any questions or comments. Thank you. Walter R. Gonzales Government Affairs Manager, Southwest Region HomeAway 1011 West Fifth Street, Suite 300 Austin, Texas 78703 Direct: 512.505.1615 wgonza les@ homeaway.com fl HomeAway° lets stay together Ihi .ic u;n . cabnn 2 'any. tt ri itt is ft.a a. i -djw 6[o I TinI . I _>..n t-t., I ?d ,r 1 t `of th,( _u!al, ;liJ n1 a A"t Y P 111,142d Ili ., ,r ,,,iC ,t )4. it e'm, ttl.ilt. t .v.i ,t''1 t. „,"i .. l;_I tt . t II HomeAway® Palm Springs City Council 3200 E. Tahquitz Canyon Way Palm Springs,CA 92262 February 15, 2017 Mayor Moon and Members of the City Council: The vacation rental ordinance as proposed on your agenda tonight appears to place an unacceptable level of liability on vacation rental hosting platforms, such as HomeAway,for the content that is posted on those platforms by vacation rental hosts. HomeAway respectfully requests that you remove or clarify this problematic language before adopting the ordinance. Section 5.25.075(a) states: "No person or entity shall offer or provide an Apartment, or any portion thereof, for rent for 28 consecutive days or less to any person." Section 5,25.075(b)states: "No person or entity shall maintain any advertisement of a Vacation Rental that is in violation of any provision of this Chapter." Section 5.25.090(a)states: "Any person who violates a provision of this Chapter is subject to criminal sanctions and administrative penalties [...] Any person who uses,or allows the use of, residential property in violation of the provisions in this Chapter is guilty of a misdemeanor [...]" Section 5.25.090(a)states: "Any person who advertises a Vacation Rental without including the Vacation Registration Certificate in any advertising for such Vacation Rental ... shall pay a fine [...]„ The ordinance does not define"person" or"entity."It is not clear whether the Council intends the sections listed above to apply to HomeAway. Given the sheer number and complexity of rules and regulations included in this ordinance as well as additional restrictions that may be imposed by City enforcement officials or the Planning Commission, it is unreasonable to expect HomeAway to know whether or not a particular listing is in violation of any provision of the ordinance. Liability for violating city rules properly rests with the host,not with the hosting platform. A simple solution to clarify this in the ordinance would be to replace"person or entity"with one of the following,depending on whom the Council intends to impose liability: • "Owner" • "Owner and the agent or representative with whom the Owner has an`exclusive listing arrangement" • "Owner and the agent or representative with whom the Owner has an `exclusive listing arrangement' and the `local contact person"' 1011 W. 5s'Street I Austin, TX 78703 512.684.11001 Fax 512.684.1101 1 www.homeaway.com Moreover, any attempt to hold HomeAway responsible for listings posted by users of its websites would be preempted by federal law. Specifically,the Communications Decency Act immunizes online service providers from liability for third-party content. The statute provides: "No provider or user of an interactive computer service shall be treated as the publisher or speaker of any information provided by another information content provider."47 U.S.C. §230(c)(1). The law bars liability"under any ... local law that is inconsistent with this section. Id. § 230(e)(3). Section 230 provides broad immunity to online providers like HomeAway against attempts to impose obligations stemming from the publication of third-party user listings and advertisements. Any effort to punish HomeAway for the content provided by others—like an advertisement for a vacation rental that does not include the Vacation Registration Certificate—would violate Section 230, because doing so would be to treat HomeAway as the publisher or speaker of content created by third parties, not HomeAway. It is also unclear why the advertising restrictions on vacation rental hosts are more severe than the advertising restrictions on homesharing hosts. While Section 5.25.075(b)restricts the advertisement of vacation rentals that are in violation of the chapter,there is no similar restriction against the advertisement of homeshare interests that are in violation of the chapter. Beyond the platform liability concerns,HomeAway would also like to express concern with the new requirement that owners attend an annual training, pass a test,and meet guests in person to explain the rules and get signatures. These requirements would be onerous for hosts who do not live in Palm Springs full-time. HomeAway understands that the City Council has made quality of life and the availability of affordable housing for long-term residents a priority. With the proper set of regulations, vacation home rentals can contribute to these goals in a positive way.HomeAway is eager to work with the city in crafting and refining viable and equitable regulations. Sincerely, Walter R. Gonzales Government Affairs Manager HomeAway 1011 W. 51^Street 1 Austin, TX 78703 512,684.1100 1 Fax 512.684.1101 1 www.homeaway.com Law Offices ofBabak Naficy 1 February 14, 2017 c 0 T Al Via Email �' { m -n O C' co *`m City of Palm Springs, c/o City Clerk City Council of Palm Springs crt r 3200 E. Tahquitz Canyon Way ` 3 rrnn Palm Springs, California 92262 cityclerk(cupalmsprin1 s�ca. ` ut rn RE: Proposed Urgency Vacation Rental Ordinance I submit this letter on behalf of Protect Our Neighborhood ("PON") in connection with the proposed Urgency Vacation Rental Ordinance. As an initial matter, I would like to i soa Marsh Street object to the manner in which this Urgency Ordinance has been unveiled to the members San Luis Obispo of the public. While it seems that the City has been in negotiations with members of the caiifomia 93401 vacation-rental industry for some time, and has clearly devoted substantial time and ph:805-593-0926 resources to drafting the Urgency Ordinance, it has only barely provided the public with fox:805-593-0946 the minimum notice required by law. The City has thereby demonstrated a clear bias in favor of the industry and patent disregard for public participation. bob a kn a ficy4sbcglob a I The City has proposed this Urgency Ordinance because it has decided not to allow Palm Springs residents to decide the faith of the existing vacation rental ordinance, which though far from perfect, at least limited the corporate ownership of single-family homes dedicated to the business of vacation rental. While we agree that repealing Ordinance 1907 would leave a regulatory gap which would very likely be exploited by the industry, we believe the proposed Urgency Ordinance is deeply flawed and must be heavily revised. The current proposal amounts to a major concession to the vacation rental industry and a corresponding betrayal of the interests of the ordinary residents of the City of Palm Springs. The most glaring concession to the industry is the grandfathering of all existing vacation rentals, regardless of the character of the ownership. How does institutionalizing these vacation rentals benefit anyone other than the corporate owners of vacation rentals, many of whom parasitically took advantage of the financial crisis by investing heavily in the residential market? Even if the City Council decides to approve this Urgency Ordinance, the City must provide a process for meaningful debate and discussion before a final resolution is adopted. The City should adopt a temporary moratorium on new vacation or short-tern rentals until the details of a new ordinance can be debated and decided. The proposed Ordinance will not effectively protect the City's residential neighborhoods from encroachment by vacation-rentals By proposing this Urgency Ordinance, the City has finally decided to stop perpetuating the myth that vacation rentals are not a commercial enterprise. While PON welcomes the City's acknowledgement that operating a vacation rental business in an Estate House requires a land use permit, we are dismayed that the current proposal does not require a permit for other vacation rentals. As a result, the current proposal fails to provide a meaningful process or criteria to ensure vacation rentals do not fundamentally change the character of single-family (R-1) residential neighborhoods. The Problem: The proliferation of vacation-rentals can substantially increase noise, trash, traffic and overall disturbance of the neighborhood's peace and quiet. While one or two vacation rentals may not substantially undermine the character of a peaceful residential neighborhood, a substantial number of vacation rentals on the same block or within the same neighborhood can and do fundamentally degrade the residential character of the neighborhood, resulting in the loss of peace and quiet. The City's Unlawful and Inadequate Regulatory Framework: While the Urgency Ordinance ostensibly requires vacation rental "Estate Homes"to obtain a land use permit, it does not require a permit for single-family residential homes that are used as a vacation rental. This is a glaring omission and contrary to the City's zoning ordinance, which requires a Land Use Permit or Conditional Use Permit for commercial uses in single-family neighborhoods. The Palm Springs Municipal Code provides that certain commercial uses, such as large child care facilities or model homes and related sales offices may be allowed in a residential zone with a Land Use Permit (PSMC §92.01.01 (C)), while more intense activities, such as child care centers, require a Conditional Use Permit. PSMC §92.01.01(D). Despite admitting that vacation rentals operate as commercial businesses, the City has refused to require vacation rentals to obtain a Land Use Permit or Conditional Use Permit. Vacation rentals are at least similar to a large child care facility in terms of traffic and noise. Therefore, a decision to allow vacation rentals without any permit requirement is unlawful because it would allow a commercial use within a single-family residential neighborhood without any permit requirements. PSMC 94.02.01 provides that"[tjhe intent and purpose of a land use permit is to provide a means to review the impact of proposed land uses and to impose such conditions to the proposed use as are necessary to insure that these uses are compatible with adjacent properties and the community." This is exactly what is needed to ensure vacation rentals are compatible with the residential character of the adjacent neighborhood. The City must develop guidelines to review vacation rentals on a case-by-case basis in order to ensure individual streets and neighborhoods are not adversely impacted and the residential character of each street and neighborhoods are not compromised. It is vitally important for the City to evaluate the potential impacts of a new vacation rental unit in light of the cumulative impacts of the existing vacation rentals in the vicinity, as well as the size and particular characteristics of the 2 neighborhood. Individualized analysis of new vacation rental units is required by Palm Springs General Plan Policy HS 1.8, which directs the City to "Protect established single-family residential neighborhoods from the transition, intensification, and encroachment of uses that detract and/or change the character of the neighborhood." Potentially unlimited vacation rentals in any given street or neighborhood can result in intensification of use and encroachment of commercially operated vacation rentals which detract from the character of single-family neighborhoods. Individualized review of new vacation rentals is likewise implicitly required by PSMC §5.22.020, which provides that the use of a dwelling"may not change the character of nor adversely affect the uses permitted in that zone of which it is a part." The Urgency Ordinance is inconsistent with this section because it does not offer any mechanism to ensure the character of residential neighborhoods are not adversely affected by potentially an indefinite number of vacation rentals. The City has not offered any meaningful criteria for permitting estate homes The Urgency Ordinance does require a Land Use Permit (OSMC §94.02.01) for vacation rentals proposed for Estate Homes. Holders of an existing vacation rental certificate for an estate home are automatically qualified for a Land Use Permit. The Urgency Ordinance contains a set of"issues and potential conditions" to be considered by the Commission in evaluation of a vacation rental application for an Estate Home. These criteria, however, focus on the characteristics of the home itself; they do not require any consideration of the surrounding neighborhood or the number of existing vacation rentals in the vicinity. This is a glaring omission because, as we set forth above, the City's General Plan and zoning ordinance specifically require the City to ensure the integrity of and character of residential neighborhoods are preserved. The City must conduct CEOA review at some point The City has never conducted any environmental review of its vacation rental policies and regulation. The current proposal, which authorizes 36 weekends, grandfathers all existing vacation rentals, and does not impose any meaningful or numerical limit on the number of new vacation rentals[, would potentially allow for an infinite number of new vacation rentals without any environmental review or consideration of the impact on the neighborhood violates CEQA. This ordinance amounts to a de facto amendment to the City's zoning ordinance by essentially authorizing the proliferation of a specific type of business (vacation rental) without any environmental review. As such, it is subject to CEQA because it amounts "to [a] discretionary .... amendment of zoning ordinances." Pub. Resources Code, § 21080. The City cannot have it both ways: CEQA review must be required either at the point of adopting the Ordinance(i.e. amending the zoning ordinance), or at the point of issuing a vacation-rental certificate. The City's position that it is not required to EVER consider the environmental impacts '/As PON has argued in the past,the requirement that new vacation rentals must be owned by an individual or a family trust does not meaningfully limit the number of new vacation rentals because new vacation rentals can be acquired in the name of friends or members of the same family. 3 of its vacation rental polices and regulation is patently contrary to the spirit and letter of CEQA. The City's claim that the proposed ordinance is exempt from CEQA is without merit. The City contends the Project is exempt under CEQA Guidelines §15060(c)(2) & (3), which provide: (c) Once an application is deemed complete, a lead agency must first determine whether an activity is subject to CEQA before conducting an initial study. An activity is not subject to CEQA if: (1) The activity does not involve the exercise of discretionary powers by a public agency; (2) The activity will not result in a direct or reasonably foreseeable indirect physical change in the environment; or (3) The activity is not a project as defined in Section 15378. §15060(c)(2) does not apply because the Ordinance is capable of causing a change in the environment by grandfathering all existing vacation rentals, including all those units that are owned by corporations and LLCs. Many if not most of these units would not have been able to continue to function as vacation rentals under Ordinance 1907. The proposed ordinance likewise allows an indefinite number of future vacation rentals because it does not impose any limits on the number of vacation rentals in the City. Likewise, §I5060(c)(3) does not apply because the Proposed Ordinance is a project within the meaning of CEQA. The Ordinance amounts to an amendment to the City's zoning ordinance, which does not permit commercial businesses in residential zones without obtaining a proper permit. Here, the City has essentially waived the permit requirement. As such, the Ordinance amounts to an amendment of the zoning ordinance and must therefore be evaluated under CEQA. Finally, the City also argues the Project is exempt from CEQA because, the City claims, the Ordinance contains regulations intended to ultimately preserve the residential character of the City's single-family neighborhoods. The City concludes that the adoption of the Ordinance was adequately reviewed by the General Plan EIR. This argument fails because even if the City's intent by adopting this regulation is to preserve the character of single-family neighborhoods—a contention that is open to serious debate—there is no substantial evidence to suggest the Ordinance would in fact accomplish this stated goal. This is true because the Ordinance does not impose any limits on the number of new short-term rentals in any given neighborhood and does not require any individualized review of new applications. Conclusion The Proposed Ordinance does not pass muster. The City's failure to require individual permits for new vacation rentals is inconsistent with the City's General Plan and zoning regulations. Likewise, the grandfathering of all existing vacation rentals regardless of the type of ownership and location is likewise fundamentally unfair and contrary to the interests of the residents of Palm Springs. The 4 City should not create a vested right in favor of any current vacation rental owners. All vacation rentals must be required to apply for and obtain a permit to continue to do business in the City of Palm Springs. The permitting process must be sufficient to ensure the residential character of each neighborhood is not adversely impacted. Until an appropriate Ordinance is debated, drafted and has gone through environmental review, the City must declare a moratorium on new vacation rentals. Sincerely, W. Babak Nafrcy, Counsel for Protect Our Neighborhood 5 The Desert Sun 750 N Gene Autry Trail Certificate of Publication Palm Springs, CA 92262 RECEIVED 760-77841 CITY578/Fax 760-778-4731 OF PALM S P R I h C,z, State Of California Ss: 2017 MAR —2 AN 9: $7 County of Riverside OFFICE GF TU 0111 Y CL' ;;.. Advertiser: CITY OF PALM SPRINGS/LEGALS PO BOX 2743 PALM SPRINGS CA 92263 Order# 0001955021 1 am over the age of 18 years old, a citizen of the United States and not a party to, or have interest in this matter. I hereby certify that the attached advertisement appeared in said newspaper(set in type not smaller than non panel)in each and entire issue of said newspaper and not in any supplement thereof on the following dates, to wit: Newspaper:The Desert Sun 2/25/2017 No 02S5: I acknowledge that I am a principal clerk of the AN ORDINANCE NO 1917 .ORDINANCE OF THE CITY OF printer Of The Desert Sun, printed and PALM SPRINGS,CALIFORNIA, RESCINDING ORDINANCE No.1907 published weekly in the City of Palm Springs, Ub OndnAaP resd�dj nonce County of Riverside, State of California. The No-1907 I CERTIFICATION Desert Sun was adjudicated a Newspaper of STATE OF CA LIFORNIA 1COUNrY OF RNERSIDE ) y. general circulation on March 24, 1988 by the L�KATHiEEN D.SPRI S,llmarim city SuperiorCourt of the County of Riverside, hue cl �woPaalm rin k State of California Case No. 191236. 1917 a Tullyt and dined Copy.and was adopted at a regular mien in of the Gry Counnl held bn the I day of February, 2017, by the to If vote: AYES: Cwmdlmember Korn, 7o�berrtnsn and Mayor Pra I declare under penalty of perjury that the ABSENT: wuunncil�yrMills : foregoing is true and correct. Executed on ABSTAIN NoneRECUSED: None this 25th day o BRUARY, 2017 in Palm KATHLEEN D.HART,MMC RaTERIM CRY CLERK Springs, Ca' rnia. Publbht@ 2/25410117 Declaran CITY OF PALM SPRINGS PUBLIC NOTIFICATION Date: February 27, 2017 Subject: Ordinance 1917 — Rescinding Ordinance No. 1907 AFFIDAVIT OF PUBLICATION I, Cynthia A. Berardi, Interim Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of the attached Notice was published in the Desert Sun on February 25, 2017, 1 declare under penalty of perjury that the foregoing is true and correct. Cynthia A. Berardi, Interim Chief Deputy City Clerk AFFIDAVIT OF POSTING I, Cynthia A. Berardi, Interim Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of the attached Notice was posted at City Hall, 3200 E. Tahquitz Canyon Drive, on the exterior legal notice posting board, and in the Office of the City Clerk on or before February 21, 2017. 1 declare underpealty of perjury that the foregoing is true and correct. Cynthia Pe.Werardi, Interim Chief Deputy City Clerk ORDINANCE NO. 1917 AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, RESCINDING ORDINANCE NO. 1907. City Attorney's Summary This Ordinance rescinds Ordinance No. 1907. CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, KATHLEEN D. HART, Interim City Clerk of the City of Palm Springs, hereby certify that Ordinance No. 1917 is a full, true and correct copy, and was adopted at a regular meeting of the City Council held on the 15th day of February, 2017, by the following vote: AYES: Councilmember Kors, Roberts, and Mayor Pro Tern Foat NOES: Mayor Moon ABSENT: Councilmember Mills ABSTAIN: None RECUSED: None KATHLEEN D. HART, MMC INTERIM CITY CLERK ORDINANCE NO. 1917 AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, RESCINDING ORDINANCE NO. 1907. City Attorney's Summary This Ordinance rescinds Ordinance No. 1907. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS ORDAINS: SECTION 1. Ordinance No. 1907 is rescinded and is no longer in effect or enforceable. SECTION 2. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law and this Ordinance, suspended as a result of a qualified referendum petition, shall take effect immediately upon its adoption. PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 15T" DAY OF FEBRUARY, 2017. ROBERT MOON, MAYOR ATTEST: KATHLEEN D. HART, MMC INTERIM CITY CLERK Ordinance No. 1917 Page 2 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, KATHLEEN D. HART, Interim City Clerk of the City of Palm Springs, hereby certify that Ordinance No. 1917 is a full, true and correct copy, and was adopted at a regular meeting of the City Council held on the 15�h day of February, 2017, by the following vote: AYES: Councilmember Kors, Roberts, and Mayor Pro Tern Foat. NOES: Mayor Moon ABSENT: Councilmember Mills ABSTAIN: None RECUSED: None KATHLEEN D. HART, MMC INTERIM CITY CLERK