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HomeMy WebLinkAbout1/18/2017 - STAFF REPORTS - 5.C. PALM SA W V N R RR ��RblRlt> ,� R C4�lFOR��P CITY COUNCIL STAFF REPORT DATE: January 18, 2017 NEW BUSINESS SUBJECT: APPROVE REVISED FEE RELATING TO HOMESHARING REGISTRATION; REVIEW THE VACATION RENTAL ADMINISTRATIVE REGULATIONS RELATING TO HOMESHARING PROPERTIES; APPROVE AMENDMENT TO COMPREHENSIVE FEE RESOLUTION FROM: David H. Ready, City Manager BY: Department of Vacation Rental Compliance SUMMARY: City Council will consider a revised annual registration fee and renewal fee of $225 for Homeshare Vacation Rental properties under PSMC Chapter 5.25, review the Vacation Rental Administrative Regulations relating to home-sharing, and adopt civil fines and penalties for knowingly filing false applications for permits, licenses, or other entitlements issued by the City, RECOMMENDATION: 1. Review the Administrative Regulation recognizing Home-sharing as a specific category of vacation rental property and establishing administrative procedures and practices for Home-sharing in the City. 2. Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, MODIFYING USER FEES FOR HOMESHARING REGISTRATION AND RENEWAL FEES AND ESTABLISHING CIVIL FINES AND PENALTIES FOR FALSIFICATION OF APPLICATIONS AND AMENDING THE COMPREHENSIVE FEE SCHEDULE ADOPTED BY RESOLUTION NO. 23854." STAFF ANALYSIS ON HOMESHARE FEES: During the recent vacation rental ordinance discussions, the Vacation Rental Subcommittee (Roberts/Kors) requested staff to review and evaluate fees for Homesharing properties. The City Manager has recently adopted an Administrative Regulation that recognizes Home-sharing as a specific category of vacation rental of ITEM NO. L•C 0 City Council Staff Report January 18, 2017 -- Page 2 Homeshare Fees and Regulations residential property, accessory to single-family residential uses, operating in the City of Palm Springs. A copy of this Administrative Regulation is attached to this Staff Report for the Council's review. Annual registration fees and renewal fees for all Vacation Rental properties including Homesharing, are currently $900. This fee is intended to cover the department costs for the servicing of all Vacation Rental properties, including administration, regulation, education, and enforcement. Home-sharing, which involves an Owner who resides on-site, hosting one or more guests for compensation, for periods of 28 days or less, is a unique category of properties in the Vacation Rental industry that justifies tailored procedures, fees, and compliance regulations. Home-sharing properties experience a higher level of owner oversight and compliance due to the owner residing on-site and in the home throughout the visitor's stay. Home-sharing Properties require less oversight by the Vacation Rental Compliance Department. Staff therefore recommends an annual fee of$225.00. FISCAL IMPACT: Home-sharing is a newer element of the Vacation Rental program and the number of actual properties seeking permits in this category is unknown at this time. Overall, it may result in a slight reduction of fee revenues than previously anticipated in earlier Vacation Rental fee projections. Historical fee data for this category of vacation rentals will be provided to City Council through monthly and quarterly reports. Boris ark Suza a Severin Vacation Rental Compliance Official Vacation Rental Compliance Official David H. Ready, Esq., P City Manager Attachments: (1) Administrative Regulation (2) Proposed Resolution 02 City of Palm Springs VACATION RENTAL ADMINISTRATIVE REGULATIONS �°ppocN`� Date: January 18, 2017 Subject: Home-sharing as Vacation Rental Property I. Purpose To recognize Home-sharing as a specific category of Vacation Rental property and an accessory use of single-family residential property, regulated pursuant to the provisions of Palm Springs Municipal Code (PSMC) Chapter 5.25 ("Vacation Rental Ordinance"). It. Application PSMC Section 5.25.070(q) authorizes the City Manager to establish rules and regulations for the purposes of interpreting, clarifying, carrying out, furthering, and enforcing the operational requirements and standard conditions pertaining to Vacation Rental properties in the City. This regulation (1) recognizes Home-sharing as a specific category of vacation rental of residential property, accessory to single-family residential uses, operating in the City of Palm Springs, (2) establishes administrative procedures and practices relating to home-sharing consistent with, and in furtherance of, the provisions of the Vacation Rental Ordinance, and (3) provides direction and general guidance to all City employees, and/or City contractors who administer the Vacation Rental program and/or Vacation Rental regulations. III. Procedure The City Manager has determined that the recognition and establishment of Home-sharing as a unique category of Vacation Rentals, accessory to single- family residential uses, will compliment, further, and advance the Vacation Rental program for the benefit of the participants, the traveling public, the owners and residents of neighboring single-family homes, and the City of Palm Springs. A. Except as otherwise expressly provided in this Regulation, the definitions in Section 5.25.030 of the Vacation Rental Ordinance are applicable to the provisions of this Regulation. The following definitions shall apply to this Regulation: a. "Home-sharing" means an accessory use of an Owner's single-family dwelling where an Owner hosts one or more Guests and provides temporary lodging, for compensation, for periods of twenty-eight (28) consecutive days or less, while an Owner lives on-site, in the single-family dwelling, throughout any Guest's stay. 03 - 1 - b. "Home-sharing Property" means a single-family dwelling that is used for Home-sharing and "Guest' means a person who occupies a portion of the Home-sharing Property for periods of less than twenty-eight (28) consecutive days for compensation. c. "Local Contact Person" means an Owner of the Home-sharing Property who is available twenty-four (24) hours a day, seven (7) days a week for the purpose of responding in person within thirty (30) minutes to complaints regarding the condition, operation, or conduct of Guests. d. All requirements specified in the Vacation Rental Ordinance shall be applicable to Home-sharing under this regulation except that the provisions of Section 5.25.070(g)ii of the Vacation Rental Ordinance (the 45 minute response time to a first call from the Hotline) shall not apply. The provisions of Section 5.25.070(m) of the Vacation Rental Ordinance shall apply except that the submission of a periodic tax return and payment of Transient Occupancy Tax will be on a quarterly basis, not monthly basis. B. In addition to all the requirements specified in the Vacation Rental Ordinance, an Owner of a Home-sharing Property shall: a. Occupy the Home-sharing Property while occupied by a Home-sharing Guest between the hours of 12:00am and 6:00am during any Home-share stay, and otherwise be able to respond within thirty (30) minutes to complaints during any such Home-share stay. b. Meet and greet each Guest upon arrival at the Home-share Property, provide verbally and in writing all information specified in Section 5.25.070 of the Vacation Rental Ordinance, and exercise prudent business practices to ensure compliance with the provisions of the Vacation Rental Ordinance. C. All Home-sharing Properties will be subject to inspection and audit as may be required by the Department of Vacation Rental Compliance ("Department). D. Each Home-sharing Property shall not be operated or managed by anyone other than an Owner. E. An apartment unit may not be a Home-sharing Property. F. The Local Contract Person shall respond by telephone within 10 minutes of complaints from or through the Hotline, and in person within 20 minutes from the time the Hotline registers the call if no phone contract was made. G. Where two (2) bedrooms or less are designated for Guests and the total number of Guests who will reside at a Home-share Property at any one time does not exceed four (4), a visual room count inspection shall not be required but may be conducted at the discretion of the Department. 04 - 2 - H. For purposes of Home-sharing, the 'Property Watch List' provisions shall not apply. I. Any Home-sharing Property found in violation of Chapter 5.25 and this Administrative Regulation shall be subject to the penalties specified in Section 5.25.090 of the Vacation Rental Ordinance. IV. Effective Date This procedure shall be effective January 18, 2017. APPROVED: APPRO AS TO FORM: DAVID H. READY, Es DOUGLAS C. HOLLAND City Manager City Attorney - s - 05 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, MODIFYING USER FEES FOR HOMESHARING REGISTRATION AND RENEWAL FEES AND ESTABLISHING CIVIL FINES AND PENALTIES FOR FALSIFICATION OF APPLICATIONS AND AMENDING THE COMPREHENSIVE FEE SCHEDULE ADOPTED BY RESOLUTION NO. 23854. WHEREAS, the City, under various statutory provisions under California Government Code, may set and collect fees for the costs of providing a particular service; and WHEREAS, the City Council on July 15, 2015, the City Council adopted Resolution No. 23854 approving a user fee study and approving the Comprehensive Fess Schedule; and WHEREAS, the City Council desires to adopt Home-sharing Registration and Renewal Fees to reflect the reasonable costs of the vacation rental administration program; and WHEREAS, the City Council desires to adopt civil fines and penalties for filing knowingly false applications with the City. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS FINDS, DETERMINES, AND RESOLVES AS FOLLOWS: SECTION 1. FINDINGS. a. City staff has reasonably analyzed fees for Home-sharing Registration and Renewal Fees. The City Manager has adopted an administrative regulation that recognizes Home-sharing as a specific category of Vacation Rental Property and the Council finds that the Home-sharing category should be afforded a registration and renewal fee distinct from such fees assessed on other forms of vacation rental properties. b. The Home-sharing Registration and Renewal fees shall be adopted to cover some the City's costs and expenses associated with providing administration of the Home-sharing as a category of the Vacation Rental Program. C. The cost of such services should be borne by those who are the special beneficiaries rather than the citizenry at large. d. There is a reasonable relationship between the amount of the fee and the estimated reasonable cost of providing the type of service for which the fee is imposed. 06 Resolution No. Page 2 e. The fees do not exceed estimated reasonable cost of providing the service for which the fee is charged. SECTION 2. FEES IMPOSED. a. The City Council adopted and imposes Vacation Rental Registration and Renewal fees as provided in Exhibit A, attached hereto and incorporated by reference. b. Each person requesting to receive either a new registration or a registration renewal on a vacation rental home shall pay the fee at the time they apply for either registration or renewal. C. On July 1st of each year, the fees and charges shall be automatically adjusted by an amount equal to the percentage of increase or decrease in total employee compensation for the current fiscal year's adopted budget versus the new fiscal year's adopt budget as last computed at the budget public hearing, to reflect the cost-of-living changes and to ensure that changing economic conditions do no impair the real value of the fees and charges. SECTION 3. Section 3 of the Comprehensive Fee Resolution is amended to read: SECTION 3. Civil Fines and Penalties. A. False Alarm Penalties Under the Master Bail Schedule. The civil penalties for false alarms for permitted and non-permitted alarm systems are: 1st Alarm in a 365 day period is no charge; 2d Alarm in a 365 day period is $150.00; 3d Alarm in a 365 day period is $200.00; and the 4th or more Alarm in a 365 day period is $250.00. B. False Applications. The civil penalties for filing a knowingly false application for a permit, license, or entitlement shall be $2,500.00, revocation of any license, permit, or entitlement associated with such application, and the imposition of a two (2) year stay on the issuance of any new license, permit, or entitlement generally similar to the license, permit, or entitlement revoked. C. The City Clerk is directed and authorized to amend the civil penalties identified in this Section to the Master Bail Schedule. SECTION 4. SEVERABILITY. Each component of the fees and all portions of this Resolution are severable. Should any individual component of the fee or other provision of this Resolution be adjudged to as invalid, the remaining provisions shall be fully effective, and the fee shall be fully effective except as to that portion that has been judged to be invalid. 07 Resolution No. Page 3 SECTION 5. EFFECTIVE DATE. The fees and civil fines and penalties imposed by this Resolution shall be effective upon adoption of this Resolution. SECTION 6. COMPREHENSIVE FEE SCHEDULE. The Director of Finance is hereby authorized and directed to incorporate said modifications and fees into the Comprehensive Fee Schedule, adopted by Resolution No. 23854. PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 14th DAY OF JANUARY, 2017. DAVID H. READY, CITY MANAGER ATTEST: KATHLEEN D. HART, INTERIM CITY CLERK 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 Resolution No. is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on the 18th day of January, 2017, by the following vote: AYES: NOES: ABSENT: ABSTAIN: KATHLEEN D. HART, INTERIM CITY CLERK City of Palm Springs, California 08 Resolution No. Page 4 EXHIBIT A HOMESHARING REGISTRATION AND RENEWAL FEES Vacation Rental Fees: New Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 225.00 Renewal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 225.00 09