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HomeMy WebLinkAbout4/20/2016 - STAFF REPORTS - 3.B. O,,pALMSA4 A. iy R A CpAI0YAIFO C'aL1FORN`P CITY COUNCIL STAFF REPORT DATE: APRIL 20, 2016 LEGISLATIVE SUBJECT: PROPOSED URGENCY ORDINANCE AND ORDINANCE PROHIBITING THE RENTAL OF APARTMENTS (MORE THAN THREE-UNITS) AS VACATION RENTALS FROM: David H. Ready, City Manager BY: Chief of Staff/City Clerk and City Attorney SUMMARY The City Council will consider the adoption of an urgency ordinance to prohibit vacation rentals as apartments (four-or more apartment units) and rescind any existing vacation rental permit currently issued to an apartment, as defined, allowing for a wind-down period. RECOMMENDATION: 1. Adopt Urgency Ordinance No. , "AN URGENCY ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTIONS 5.25,020 AND 5.25.030 OF, AND ADDING SECTION 5.25.075 TO, THE PALM SPRINGS MUNICIPAL CODE PROHIBITING THE RENTAL OF APARTMENTS AS VACATION RENTALS." (4/5THS VOTE) 2. Waive the reading of the text and introduce on first reading Ordinance No. , "AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTIONS 5.25.020 AND 5.25.030 OF, AND ADDING SECTION 5.25.075 TO, THE PALM SPRINGS MUNICIPAL CODE PROHIBITING THE RENTAL OF APARTMENTS AS VACATION RENTALS." STAFF ANALYSIS: The City currently allows and has adopted extensive regulations for vacation rental properties. The proposed ordinances would prohibit apartments (four or more units) from being used as vacation rentals (short-term rental less than 28-days). Apartments under three units (such as a duplex or triplex) should not create an adverse impact to affordable housing stock, and are consistent with the overall finding that vacation rentals are an ancillary use of a residential zoned property. ITEM NO. — City Council Staff Report April 20, 2016 -- Page 2 Vacation Rental Regulations City Staff has preliminarily identified approximately 12-properties that currently hold one or more vacation rental permits which would no longer qualify. The urgency ordinance immediately goes into effect and revokes any vacation rental permit issued to an apartment with four or more units, and requires the owner to immediately cease advertising. The ordinance provides a wind-down period that may allow the rental of a unit with a valid contract proven to be executed prior to the effective date of the urgency ordinance, until June 30, 2016, when all vacation rental operations must cease. City Staff has received several pending applications from properties that would no longer qualify for a vacation rental permit. Pending applications will not be processed and a vacation rental certificate will not be issued. ONE-PS has recommended the City Council prohibit apartments or apartment units from being used for vacation rentals, and the City Council Subcommittee (Mayor Pro Tern Mills and Councilmember Foat) concurs with the recommendation. Additionally, the City Council Subcommittee and City Staff are reviewing other recommendations submitted by ONE-PS and other organizations, which will be presented at a future date. FISCAL IMPACT: Minimal loss of Vacation Rental fees and Transient Occupancy Tax that could be generated by the conversion of an apartment, consisting of four or more units, to vacation rental units. AMES THOMPSON DAVID H. READY Chief of Staff/City Clerk City Manager Ordinance Approved as to Form: —�X4" DOUG C. HOLLAND City Attorney Attachments: Urgency Ordinance Proposed Ordinance City Council Staff Report April 20, 2016 -- Page 2 Vacation Rental Regulations City Staff has preliminarily identified approximately 12-properties that currently hold one or more vacation rental permits which would no longer qualify. The urgency ordinance immediately goes into effect and revokes any vacation rental permit issued to an apartment with four or more units, and requires the owner to immediately cease advertising. The ordinance provides a wind-down period that may allow the rental of a unit with a valid contract proven to be executed prior to the effective date of the urgency ordinance, until June 30, 2016, when all vacation rental operations must cease. City Staff has received several pending applications from properties that would no longer qualify for a vacation rental permit. Pending applications will not be processed and a vacation rental certificate will not be issued. ONE-PS has recommended the City Council prohibit apartments or apartment units from being used for vacation rentals, and the City Council Subcommittee (Mayor Pro Tern Mills and Councilmember Foat) concurs with the recommendation. Additionally, the City Council Subcommittee and City Staff are reviewing other recommendations submitted by ONE-PS and other organizations, which will be presented at a future date. FISCAL IMPACT: Minimal loss of Vacation Rental fees and Transient Occupancy Tax that could be generated by the conversion of an apartment, consisting of four or more units, to vacation rental units. AMES THOMPSON DAVID H. READY Chief of Staff/City Clerk City Manager Ordinance Ap roved as to Form: DOUG C. HOLLAND City Attorney Attachments: Urgency Ordinance Proposed Ordinance 02 ORDINANCE NO. AN URGENCY ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTIONS 5.25.020 AND 5.25.030 OF, AND ADDING SECTION 5.25.075 TO, THE PALM SPRINGS MUNICIPAL CODE PROHIBITING THE RENTAL OF APARTMENTS AS VACATION RENTALS (4/5THS VOTE) City Attorney Summary This Urgency Ordinance amends the City's Vacation Rental ordinance to prohibit vacation rentals of apartments (as defined) in the City. This Ordinance goes into effect upon adoption by 4/5ths vote. The City Council of the City of Palm Springs finds: A. The City Council of the City of Palm Springs has adopted a Land Use Element and a Housing Element of its General Plan. The Land Use Element sets forth policies and goals toward the protection of land use planning that is protective of the social impacts of land uses and the Housing Element sets forth the City's policies and goals towards providing a supply and range of housing opportunities throughout the City. B. The City Council has expressed concern regarding the potentially adverse impacts that the conversion of rental apartment units to vacation rental uses may have on the City's rental housing stock and resident socio-economic population mix. C. There is a current and immediate threat to the public health, safety, and welfare because conversions of apartment units to vacation rentals could displace apartment residents and drive these residents out of Palm Springs, eroding the City's resident socio-economic population mix but also adversely impact City business that rely on residents in that mix as a valuable employee pool. D. The City Council specifically finds there is a reasonable relationship between the conversion of apartment units to vacation rentals and the diminution in the supply of affordable housing by eliminating formerly affordable housing units will create undue hardships residents displaced by the conversion to vacation rentals and will otherwise adversely affect the availability and cost of affordable housing affordable throughout the City. E. The purpose of this ordinance is to (1) ensure a reasonable balance in the availability of rental and ownership housing in the City and to maintain opportunities for individual choice in the tenure, type, cost, and location of housing; (2) maintain an adequate supply of affordable housing; and (3) avoid displacement of and undue hardship to residents of the City who may be required to move from the community due to a shortage of affordable housing caused in part by conversions of apartment units to vacation rentals. ORDINANCE NO. AN URGENCY ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTIONS 5.25.020 AND 5.25.030 OF, AND ADDING SECTION 5.25.075 TO, THE PALM SPRINGS MUNICIPAL CODE PROHIBITING THE RENTAL OF APARTMENTS AS VACATION RENTALS (4/5THS VOTE) City Attorney Summary This Urgency Ordinance amends the City's Vacation Rental ordinance to prohibit vacation rentals of apartments (as defined) in the City. This Ordinance goes into effect upon adoption by 4/5ths vote. The City Council of the City of Palm Springs finds: A. The City Council of the City of Palm Springs has adopted a Land Use Element and a Housing Element of its General Plan. The Land Use Element sets forth policies and goals toward the protection of land use planning that is protective of the social impacts of land uses and the Housing Element sets forth the City's policies and goals towards providing a supply and range of housing opportunities throughout the City. B. The City Council has expressed concern regarding the potentially adverse impacts that the conversion of rental apartment units to vacation rental uses may have on the City's rental housing stock and resident socio-economic population mix. C. There is a current and immediate threat to the public health, safety, and welfare because conversions of apartment units to vacation rentals could displace apartment residents and drive these residents out of Palm Springs, eroding the City's resident socio-economic population mix but also adversely impact City business that rely on residents in that mix as a valuable employee pool. D. The City Council specifically finds there is a reasonable relationship between the conversion of apartment units to vacation rentals and the diminution in the supply of affordable housing by eliminating formerly affordable housing units will create undue hardships residents displaced by the conversion to vacation rentals and will otherwise adversely affect the availability and cost of affordable housing affordable throughout the City. E. The purpose of this ordinance is to (1) ensure a reasonable balance in the availability of rental and ownership housing in the City and to maintain opportunities for individual choice in the tenure, type, cost, and location of housing; (2) maintain an adequate supply of affordable housing; and (3) avoid displacement of and undue hardship to residents of the City who may be required to move from the community due to a shortage of affordable housing caused in part by conversions of apartment units to vacation rentals. 03 Urgency Ordinance No. Page 2 The City Council of the City of Palm Springs, California, ordains: SECTION 1. Section 5.25.020 of the Palm Springs Municipal Code is amended to read: 5.25.020 Findings. The City Council finds and determines as follows: (a) The use of single-family dwelling units for Vacation Rental lodging purposes provides alternate visitor serving lodging opportunities in the City; however, such uses in certain single-family neighborhoods may have effects that can best be addressed through an appropriate city regulatory program. (b) The establishment of a regulatory program for Vacation Rental lodging will provide an administrative procedure to preserve existing visitor serving opportunities and increase and enhance public access to areas of the City and other visitor destinations. (c) Limiting Vacation Rental lodging to single-family dwelling units and prohibiting Vacation Rental lodging in apartments will preserve and protect residential housing stock in the City. (d) The purpose of this Chapter is to establish regulations for Vacation Rental lodging within single-family residential neighborhoods and the related use of residential property thereby enabling the City to preserve the public health, safety, and welfare. (e) This Chapter is not intended to regulate hotels, motels, inns, time-share units, or non-vacation type rental arrangements including, but not limited to, lodging houses, rooming houses, convalescent homes, rest homes, halfway homes, or rehabilitation homes. SECTION 2. Section 5.25.030 of the Palm Springs Municipal Code is amended to add the following definitions and amend the definition of"Vacation Rental:" "Apartment" means a residential unit in a multi-family development of four (4) or more dwelling units where each unit is rented or leased for occupancy as a residence for one individual or family. "Single-family dwelling" means a detached building designed primarily for the use of a single family and no portion which is to be rented out separately. For the purpose of this Chapter, the term "single-family dwelling" also means a residential unit in a multi- family development of three (3) or two (2) units. "Vacation Rental" means a single-family dwelling, or any portion thereof, rented for occupancy for dwelling, lodging, or sleeping purposes for a period of twenty-eight Urgency Ordinance No._ Page 2 The City Council of the City of Palm Springs, California, ordains: SECTION 1. Section 5.25.020 of the Palm Springs Municipal Code is amended to read: 5.25.020 Findings. The City Council finds and determines as follows: (a) The use of single-family dwelling units for Vacation Rental lodging purposes provides alternate visitor serving lodging opportunities in the City; however, such uses in certain single-family neighborhoods may have effects that can best be addressed through an appropriate city regulatory program. (b) The establishment of a regulatory program for Vacation Rental lodging will provide an administrative procedure to preserve existing visitor serving opportunities and increase and enhance public access to areas of the City and other visitor destinations. (c) Limiting Vacation Rental lodging to single-family dwelling units and prohibiting Vacation Rental lodging in apartments will preserve and protect residential housing stock in the City. (d) The purpose of this Chapter is to establish regulations for Vacation Rental lodging within single-family residential neighborhoods and the related use of residential property thereby enabling the City to preserve the public health, safety, and welfare. (e) This Chapter is not intended to regulate hotels, motels, inns, time-share units, or non-vacation type rental arrangements including, but not limited to, lodging houses, rooming houses, convalescent homes, rest homes, halfway homes, or rehabilitation homes. SECTION 2. Section 5.25.030 of the Palm Springs Municipal Code is amended to add the following definitions and amend the definition of"Vacation Rental:" "Apartment" means a residential unit in a multi-family development of four (4) or more dwelling units where each unit is rented or leased for occupancy as a residence for one individual or family. "Single-family dwelling" means a detached building designed primarily for the use of a single family and no portion which is to be rented out separately. For the purpose of this Chapter, the term "single-family dwelling" also means a residential unit in a multi- family development of three (3) or two (2) units. "Vacation Rental" means a single-family dwelling, or any portion thereof, rented for occupancy for dwelling, lodging, or sleeping purposes for a period of twenty-eight 04 Urgency Ordinance No. Page 3 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 Ordinance No. 1521 as such ordinance may be amended from time to time. SECTION 3. Section 5.25.075 is added to the Palm Springs Municipal Code to read: 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 rental that is in violation of any provision of this Chapter. SECTION 4. Any current and valid vacation rental certificate issued to an apartment or apartment unit, as defined, is immediately revoked, any and all advertising shall immediately cease. An owner or owners agent may not enter into any new rental contract after the effective date of this ordinance. The City Manager, or designee, is authorized to issue a refund or a prorated refund of vacation the rental registration fee paid for the current vacation rental certificate. SECTION 5. Notwithstanding the provisions in Section 4 of this Ordinance, an owner or owners agent if any apartment operating as a vacation rental in compliance with the prior law shall terminate such use by June 30, 2016. The City Manager, or designee, may allow a short-term rental for a valid contract proven to be executed prior to the effective date of this ordinance. Under no circumstances shall any short term rental be allowed after June 30, 2016. SECTION 6. 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 immediately, and shall expire June 30, 2016, and shall no longer be in full force and effect. PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 20TH DAY OF APRIL, 2016. ROBERT MOON, MAYOR ATTEST: JAMES THOMPSON, CITY CLERK Urgency Ordinance No. Page 3 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 Ordinance No. 1521 as such ordinance may be amended from time to time. SECTION 3. Section 5.25.075 is added to the Palm Springs Municipal Code to read: 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 rental that is in violation of any provision of this Chapter. SECTION 4. Any current and valid vacation rental certificate issued to an apartment or apartment unit, as defined, is immediately revoked, any and all advertising shall immediately cease. An owner or owners agent may not enter into any new rental contract after the effective date of this ordinance. The City Manager, or designee, is authorized to issue a refund or a prorated refund of vacation the rental registration fee paid for the current vacation rental certificate. SECTION 5. Notwithstanding the provisions in Section 4 of this Ordinance, an owner or owners agent if any apartment operating as a vacation rental in compliance with the prior law shall terminate such use by June 30, 2016. The City Manager, or designee, may allow a short-term rental for a valid contract proven to be executed prior to the effective date of this ordinance. Under no circumstances shall any short term rental be allowed after June 30, 2016. SECTION 6. 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 immediately, and shall expire June 30, 2016, and shall no longer be in full force and effect. PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 20TH DAY OF APRIL, 2016. ROBERT MOON, MAYOR ATTEST: JAMES THOMPSON, CITY CLERK 05 Urgency Ordinance No. Page 4 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Urgency Ordinance No. is a full, true and correct copy, and was introduced, passed, and adopted at a regular meeting of the Palm Springs City Council on the 20th day of April, 2016, by the following vote: AYES: NOES: ABSENT: ABSTAIN: JAMES THOMPSON, CITY CLERK City of Palm Springs, California Urgency Ordinance No. Page 4 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Urgency Ordinance No. is a full, true and correct copy, and was introduced, passed, and adopted at a regular meeting of the Palm Springs City Council on the 20th day of April, 2016, by the following vote: AYES: NOES: ABSENT: ABSTAIN: JAMES THOMPSON, CITY CLERK City of Palm Springs, California 06 ORDINANCE NO. AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTIONS 5.25.020 AND 5.25.030 OF, AND ADDING SECTION 5.25.075 TO, THE PALM SPRINGS MUNICIPAL CODE PROHIBITING THE RENTAL OF APARTMENTS AS VACATION RENTALS City Attorney Summary This Urgency Ordinance amends the City's Vacation Rental ordinance to prohibit vacation rentals of apartments (as defined) in the City. The City Council of the City of Palm Springs finds: A. The City Council of the City of Palm Springs has adopted a Land Use Element and a Housing Element of its General Plan. The Land Use Element sets forth policies and goals toward the protection of land use planning that is protective of the social impacts of land uses and the Housing Element sets forth the City's policies and goals towards providing a supply and range of housing opportunities throughout the City. B. The City Council has expressed concern regarding the potentially adverse impacts that the conversion of rental apartment units to vacation rental uses may have on the City's rental housing stock and resident socio-economic population mix. C. There is a current and immediate threat to the public health, safety, and welfare because conversions of apartment units to vacation rentals could displace apartment residents and drive these residents out of Palm Springs, eroding the City's resident socio-economic population mix but also adversely impact City business that rely on residents in that mix as a valuable employee pool. D. The City Council specifically finds there is a reasonable relationship between the conversion of apartment units to vacation rentals and the diminution in the supply of affordable housing by eliminating formerly affordable housing units will create undue hardships residents displaced by the conversion to vacation rentals and will otherwise adversely affect the availability and cost of affordable housing affordable throughout the City. E. The purpose of this ordinance is to (1) ensure a reasonable balance in the availability of rental and ownership housing in the City and to maintain opportunities for individual choice in the tenure, type, cost, and location of housing; (2) maintain an adequate supply of affordable housing; and (3) avoid displacement of and undue hardship to residents of the City who may be required to move from the community due to a shortage of affordable housing caused in part by conversions of apartment units to vacation rentals. ORDINANCE NO. AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTIONS 5.25.020 AND 5.25.030 OF, AND ADDING SECTION 5.25.075 TO, THE PALM SPRINGS MUNICIPAL CODE PROHIBITING THE RENTAL OF APARTMENTS AS VACATION RENTALS City Attorney Summary This Urgency Ordinance amends the City's Vacation Rental ordinance to prohibit vacation rentals of apartments (as defined) in the City. The City Council of the City of Palm Springs finds: A. The City Council of the City of Palm Springs has adopted a Land Use Element and a Housing Element of its General Plan. The Land Use Element sets forth policies and goals toward the protection of land use planning that is protective of the social impacts of land uses and the Housing Element sets forth the City's policies and goals towards providing a supply and range of housing opportunities throughout the City. B. The City Council has expressed concern regarding the potentially adverse impacts that the conversion of rental apartment units to vacation rental uses may have on the City's rental housing stock and resident socio-economic population mix. C. There is a current and immediate threat to the public health, safety, and welfare because conversions of apartment units to vacation rentals could displace apartment residents and drive these residents out of Palm Springs, eroding the City's resident socio-economic population mix but also adversely impact City business that rely on residents in that mix as a valuable employee pool. D. The City Council specifically finds there is a reasonable relationship between the conversion of apartment units to vacation rentals and the diminution in the supply of affordable housing by eliminating formerly affordable housing units will create undue hardships residents displaced by the conversion to vacation rentals and will otherwise adversely affect the availability and cost of affordable housing affordable throughout the City. E. The purpose of this ordinance is to (1) ensure a reasonable balance in the availability of rental and ownership housing in the City and to maintain opportunities for individual choice in the tenure, type, cost, and location of housing; (2) maintain an adequate supply of affordable housing; and (3) avoid displacement of and undue hardship to residents of the City who may be required to move from the community due to a shortage of affordable housing caused in part by conversions of apartment units to vacation rentals. 07 Ordinance No. _ Page 2 The City Council of the City of Palm Springs, California, ordains: SECTION 1. Section 5.25.020 of the Palm Springs Municipal Code is amended to read: 5.25.020 Findings. The City Council finds and determines as follows: (a) The use of single-family dwelling units for Vacation Rental lodging purposes provides alternate visitor serving lodging opportunities in the City; however, such uses in certain single-family neighborhoods may have effects that can best be addressed through an appropriate city regulatory program. (b) The establishment of a regulatory program for Vacation Rental lodging will provide an administrative procedure to preserve existing visitor serving opportunities and increase and enhance public access to areas of the City and other visitor destinations. (c) Limiting Vacation Rental lodging to single-family dwelling units and prohibiting Vacation Rental lodging in apartments will preserve and protect residential housing stock in the City. (d) The purpose of this Chapter is to establish regulations for Vacation Rental lodging within single-family residential neighborhoods and the related use of residential property thereby enabling the City to preserve the public health, safety, and welfare. (e) This Chapter is not intended to regulate hotels, motels, inns, time-share units, or non-vacation type rental arrangements including, but not limited to, lodging houses, rooming houses, convalescent homes, rest homes, halfway homes, or rehabilitation homes. SECTION 2. Section 5.25.030 of the Palm Springs Municipal Code is amended to add the following definitions and amend the definition of"Vacation Rental:" "Apartment" means a residential unit in a multi-family development of four (4) or more dwelling units where each unit is rented or leased for occupancy as a residence for one individual or family. "Single-family dwelling means a detached building designed primarily for the use of a single family and no portion which is to be rented out separately. For the purpose of this Chapter, the term "single-family dwelling" also means a residential unit in a multi- family development of three (3) or two (2) units. "Vacation Rental" means a single-family dwelling, or any portion thereof, rented for occupancy for dwelling, lodging, or sleeping purposes for a period of twenty-eight consecutive days or less, other than ongoing month-to-month tenancy granted to the Ordinance No. _ Page 2 The City Council of the City of Palm Springs, California, ordains: SECTION 1. Section 5.25.020 of the Palm Springs Municipal Code is amended to read: 5.25.020 Findings. The City Council finds and determines as follows: (a) The use of single-family dwelling units for Vacation Rental lodging purposes provides alternate visitor serving lodging opportunities in the City; however, such uses in certain single-family neighborhoods may have effects that can best be addressed through an appropriate city regulatory program. (b) The establishment of a regulatory program for Vacation Rental lodging will provide an administrative procedure to preserve existing visitor serving opportunities and increase and enhance public access to areas of the City and other visitor destinations. (c) Limiting Vacation Rental lodging to single-family dwelling units and prohibiting Vacation Rental lodging in apartments will preserve and protect residential housing stock in the City. (d) The purpose of this Chapter is to establish regulations for Vacation Rental lodging within single-family residential neighborhoods and the related use of residential property thereby enabling the City to preserve the public health, safety, and welfare. (e) This Chapter is not intended to regulate hotels, motels, inns, time-share units, or non-vacation type rental arrangements including, but not limited to, lodging houses, rooming houses, convalescent homes, rest homes, halfway homes, or rehabilitation homes. SECTION 2. Section 5.25.030 of the Palm Springs Municipal Code is amended to add the following definitions and amend the definition of"Vacation Rental:" "Apartment" means a residential unit in a multi-family development of four (4) or more dwelling units where each unit is rented or leased for occupancy as a residence for one individual or family. "Single-family dwelling" means a detached building designed primarily for the use of a single family and no portion which is to be rented out separately. For the purpose of this Chapter, the term "single-family dwelling" also means a residential unit in a multi- family development of three (3) or two (2) units. "Vacation Rental" means a single-family dwelling, or any portion thereof, rented for occupancy for dwelling, lodging, or sleeping purposes for a period of twenty-eight consecutive days or less, other than ongoing month-to-month tenancy granted to the 08 Ordinance No. Page 3 same renter for the same unit, occupancy of a time-share basis, or a condominium hotel as defined in Ordinance No. 1521 as such ordinance may be amended from time to time. SECTION 3. Section 5.25.075 is added to the Palm Springs Municipal Code to read: 6.25.075 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 rental that is in violation of any provision of this Chapter. SECTION 4. 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 30-days after adoption. PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 4T" DAY OF MAY, 2016. ROBERT MOON, MAYOR ATTEST: JAMES THOMPSON, CITY CLERK Ordinance No. _ Page 3 same renter for the same unit, occupancy of a time-share basis, or a condominium hotel as defined in Ordinance No. 1521 as such ordinance may be amended from time to time. SECTION 3. Section 5.25.075 is added to the Palm Springs Municipal Code to read: 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 rental that is in violation of any provision of this Chapter. SECTION 4. 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 30-days after adoption. PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 4TH DAY OF MAY, 2016. ROBERT MOON, MAYOR ATTEST: JAMES THOMPSON, CITY CLERK 09 Ordinance No. Page 4 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Urgency Ordinance No. is a full, true and correct copy, and was introduced, at a regular meeting of the Palm Springs City Council on the 20th day of April, 2016, and adopted at a regular meeting of the City Council held the 4 day of May, 2016, by the following vote: AYES: NOES: ABSENT: ABSTAIN: JAMES THOMPSON, CITY CLERK City of Palm Springs, California Ordinance No. _ Page 4 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Urgency Ordinance No. is a full, true and correct copy, and was introduced, at a regular meeting of the Palm Springs City Council on the 20t" day of April, 2016, and adopted at a regular meeting of the City Council held the 4 day of May, 2016, by the following vote: AYES: NOES: ABSENT: ABSTAIN: JAMES THOMPSON, CITY CLERK City of Palm Springs, California 10 ORDINANCE NO. AN URGENCY ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTIONS 5.25.020 AND 5.25.030 OF, AND ADDING SECTION 5.25.075 TO, THE PALM SPRINGS MUNICIPAL CODE PROHIBITING THE RENTAL OF APARTMENTS AS VACATION RENTALS (4/5THS VOTE) City Attorney Summary This Urgency Ordinance amends the City's Vacation Rental ordinance to prohibit the conversion of apartments (as defined) to vacation rentals in the City, excepting apartments covered by vacation rental certificates issued prior to April 15, 2016. This Ordinance goes into effect upon adoption by 4/5ths vote. The City Council of the City of Palm Springs finds: A. The City Council of the City of Palm Springs has adopted a Land Use Element and a Housing Element of its General Plan. The Land Use Element sets forth policies and goals toward the protection of land use planning that is protective of the social impacts of land uses and the Housing Element sets forth the City's policies and goals towards providing a supply and range of housing opportunities throughout the City. B. The City Council has expressed concern regarding the potentially adverse impacts that the conversion of rental apartment units to vacation rental uses may have on the City's rental housing stock and resident socio-economic population mix. C. There is a current and immediate threat to the public health, safety, and welfare because conversions of apartment units to vacation rentals could displace apartment residents and drive these residents out of Palm Springs, eroding the City's resident socio-economic population mix but also adversely impact City business that rely on residents in that mix as a valuable employee pool. D. The City Council specifically finds there is a reasonable relationship between the conversion of apartment units to vacation rentals and the diminution in the supply of housing affordable to low income families by eliminating units formerly affordable to low income families will create undue hardships for low income residents displaced by the conversion to vacation rentals and will otherwise adversely affect the availability and cost of housing affordable to low income families throughout the City. E. The purpose of this ordinance is to (1) ensure a reasonable balance in the availability of rental and ownership housing in the City and to maintain opportunities for individual choice in the tenure, type, cost, and location of housing; (2) maintain an adequate supply of housing affordable to low income residents; and (3) avoid displacement of and undue hardship to residents of the City who may be required to move from the community due to a shortage of low income housing caused in part by conversions of apartment units to vacation rentals. Urgency Ordinance No. Page 2 The City Council of the City of Palm Springs, California, ordains: SECTION 1. Section 5.25.020 of the Palm Springs Municipal Code is amended to read: 5.25.020 Findings. The City Council finds and determines as follows: (a) The use of single-family dwelling units for Vacation Rental lodging purposes provides alternate visitor serving lodging opportunities in the City; however, such uses in certain single-family neighborhoods may have effects that can best be addressed through an appropriate city regulatory program. (b) The establishment of a regulatory program for Vacation Rental lodging will provide an administrative procedure to preserve existing visitor serving opportunities and increase and enhance public access to areas of the City and other visitor destinations. (c) Limiting Vacation Rental lodging to single-family dwelling units and prohibiting Vacation Rental lodging in multi-family or apartments will preserve and protect residential housing stock in the City. (d) The purpose of this Chapter is to establish regulations for Vacation Rental lodging within single-family residential neighborhoods and the related use of residential property thereby enabling the City to preserve the public health, safety, and welfare. (e) This Chapter is not intended to regulate hotels, motels, inns, time-share units, or non-vacation type rental arrangements including, but not limited to, lodging houses, rooming houses, convalescent homes, rest homes, halfway homes, or rehabilitation homes. SECTION 2. Section 5.25.030 of the Palm Springs Municipal Code is amended to add the following definitions and amend the definition of"Vacation Rental:" "Apartment" means a residential unit in a multi-family development of two (2) or more dwelling units where each unit is rented or leased for occupancy as a residence for one individual or family. "Single-family dwelling" means a detached building designed primarily for the use of a single family and no portion which is to be rented out separately. "Vacation Rental" means a single-family dwelling, or any portion thereof, rented for occupancy for dwelling, lodging, or sleeping purposes for a period of twenty-eight 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 Urgency Ordinance No. Page 3 as defined in Ordinance No. 1521 as such ordinance may be amended from time to time. SECTION 3. Section 5.25.075 is added to the Palm Springs Municipal Code to read: 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 rental that is in violation of any provision of Chapter 5.25 of this Code. (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. SECTION 4. The provisions of this Ordinance shall not apply to any person or entity who rents an apartment or portion thereof pursuant to a vacation rental certificate issued prior to April 15, 2016. SECTION 5. 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 immediately and shall expire on July 31, 2016. PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS DAY OF 2016. ROBERT MOON, MAYOR ATTEST: JAMES THOMPSON, CITY CLERK Urgency Ordinance No. Page 4 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Ordinance No. is a full, true and correct copy, and was introduced at a regular meeting of the Palm Springs City Council on the _day of , 2016, and adopted at a regular meeting of the City Council held on the day of , 2016, by the following vote: AYES: NOES: ABSENT: ABSTAIN: JAMES THOMPSON, CITY CLERK City of Palm Springs, California Cindy Berardi From: Davis, Stephen H <Stephen.H.Davis@morganstanley.com> Sent: Monday,April 18, 2016 2:43 PM To: CityClerk Cc: shdavis155@aol.com; 'Victoria Davis'; scobrin@hotmail.com; info@jaimekowaI.com; Kevin Towner(ktowner@kw.com) Subject: Emergency Ordinance amending 525050 and 525030 Dear Mr.Thompson, My name is Stephen Davis. My wife,Vicki and I own a property at 2120 n Junipero and 290 w Via Escuela. This happens to be a property with 2 addresses, 2 lots, but one APN number. It's my understanding that my properties are on a list identified by city staff that would be put out of business by an urgency ordinance being decided this coming Wednesday night. Not only would I like to dispute whether or not my properties qualify as four or more units, I would like to suggest that businesses like mine that pay TOT, business license, and other fees should be given some kind of notification that, even though they have gone out of their way to follow all of the rules and invested hundreds of thousands of dollars, they are at risk of being shut down. I also respectfully request a list of the 12 buildings being targeted. I would like those other owners to have the ability to defend themselves against being blindsided. If"Current and immediate threat to public, health, safety, and welfare" is being used to justify urgency or emergency for amendment of this ordinance, I believe this is a wild exaggeration. I can tell you that 290 W Via Escuela and 2120 Junipero were more of a threat to public health, safety, and welfare before they were converted. One unit had 3 dogs living in cages in the unit.All of the units were smoked in for years. Please consider taking the list of 12 out of the proposed ordinance. Revocation of vacation rental permits, immediate cessation of advertising, and cessation of operations by emergency ordinance with no notice is an outrageous way to treat law-abiding business owners. Thanks for your consideration. Sincerely, Stephen Davis 310 365 4900 Stephen H. Davis The Davis Group Morgan Stanley Wealth Management 9665 Wilshire Blvd., Suite 600 40,4/40Izol 1 2 ram,+ %S. d, Beverly Hills, CA 90212 Direct 310.285.6580 Toll Free 800.237.3554 Fax 310.285.6585 Email Stephen.h.davis(cDmorganstanley.com Website www.morganstanlevfa.com/davisgroupsb Important Notice to Recipients: Please do not use e-mail to request, authorize or effect the purchase or sale of any security or commodity. Unfortunately, we cannot execute such instructions provided in e-mail. Thank you. The sender of this e-mail is an employee of Morgan Stanley Smith Barney LLC ("Morgan Stanley"). If you have received this communication in error, please destroy all electronic and paper copies and notify the sender immediately. Erroneous transmission is not intended to waive confidentiality or privilege. Morgan Stanley reserves the right, to the extent permitted under applicable law, to monitor electronic communications. This message is subject to terms available at the following link: hfl)://www.moroanstanley.com/disclaimers/mssbemail.htmi. If you cannot access this link, please notify us by reply message and we will send the contents to you. By messaging with Morgan Stanley you consent to the foregoing. 2 I � w c> thi rteenpa I ms.com e April 19, 2016r City Clerk rn City of Palm Springs p� _ bo 3200 E Tahquitz Canyon Way 7c n Palm Springs, CA 92262 c r z n er Dear City Clerk, Please submit this into written testimony for the Emergency Ordinance to be voted on Wednesday April 201h, 2016, 1 am writing regarding the proposed urgency ordinance prohibiting the rental of apartments as vacation rentals. Five years ago, 1 moved to Palm Springs to start a new business: Thirteen Palms. At the time, our business was welcomed by the City and the Neighborhood. For the past three years, I have served on the Warm Sands Neighborhood Organization and have served as its representative to One-PS. 1 have been proud to be involved in the neighborhood and last year purchased a house there. Thirteen Palms is a five bedroom apartment house my partners and I converted into a vacation rental property-with the full support of the City and the Neighborhood. Using local contractors and suppliers, my partners and I spent hundreds of thousands of dollars renovating a dilapidated building, creating a beautiful property that we're proud to say is one of Palm Springs' finest vacation rentals. Since opening our doors in the fall of 2012, we have hosted families,groups of friends, corporate retreats, and hundreds of other guests eager to experience Palm Springs outside of a hotel room. During these past few years, Thirteen Palms has paid over $80,000 in occupancy tax to the City, over$50,000 in local fees,property and state taxes, employed numerous local service providers, supported local charities and has always attempted to act as a good neighbor and an engaged citizen of Palm Springs. I welcomed the addition of Vacation Rental Ordinance (No. 1848), passed a year ago, as a good addition to the city's regulation of vacation rentals. I have happily worked within the ordinance. It has been a great asset in preparing guests for a pleasant stay not just for themselves but for the neighborhood and community as well. 962 E Parocela Place Palm Springs, CA 92264 760-413-2910 I reference to Ordinance No. 1848 because I followed its development over the year it took to create. With multiple channels for input and much community involvement, I believe a good regulation was created in an open and engaged environment. 1 now write with dismay that another ordinance has evidently been developed in what can only seem to be secrecy. I have read about One-PS working on such an ordinance but 1 only learned of this new ordinance on Monday,April 18tb -just two days before it will be heard before council. None of the community leaders I have contacted in the past two days had heard of this ordinance before Friday April 1Sth. The secrecy of the proposal as well as the 'emergency'designation seems highly unusual and suspect. I will give you three reasons I believe this ordinance should be tabled and taken off the agenda for this Wednesday. 1) The ordinance states there are approximately 12 properties that will be affected. I can tell you this number is wrong. Our property is not on the prepared list and we have been operating since 2011. If the City doesn't know the actual number of businesses affected, how can it come close to figuring the amount of lost TOT revenues- said to be "minimal" in the ordinance with no supporting numbers. 2) The ordinance calls this an urgent matter because of the loss of rental housing. What are the facts? I suspect there is a shift in housing taking place but has the issue been studied? What is the actual loss of housing units in the past year? Two years? Are there factors other than vacation rental conversions creating this shift? Passing this ordinance in haste, without proper preparation, study and public debate, may do little if anything to solve an affordable housing problem and may well create adverse and unintended consequences. 3) By taking this emergency action, what message does the Council send investors, small businessmen and women who are looking to build businesses in Palm Springs? When the Council decides with minimal notice (and no direct communication with those affected) to deem a business illegal that has previously been actively supported, what are other businesses left to consider? Who will the Council's next target be? There are many, many small Palm Springs hotels that were formerly apartment buildings. Will the Council declare in some future emergency ordinance that small hotels interfere with affordable housing and demand that they close in 60 days? There has been no due process in this procedure and I fear the legitimacy of all Council actions will suffer if this ordinance is allowed to pass without sufficient study and comment. 962 E Parocela Place Palm Springs, CA 92264 760-413-2910 I am proud to be a resident of Palm Springs. Between our vacation rental property and other businesses,my partners and I have invested over$4M in Palm Springs over the last five years. Why this ordinance is so suddenly become a necessary action is beyond me. Let's call on the whole community to deal with affordable housing in a clear and open public manner. Government works best when it is respectful,thoughtful and works in a timely but not rushed manner. We have a real depth of experience in this city in many fields. I would gladly be involved in exploring options for affordable housing in the city. It must be done however with proper study, community input and community involvement, especially for those who are about to lose their business due to a government action. Most sincerely, Fred Ross Owner/Manager Thirteen Palms 962 E Parocela Place Palm Springs, CA 92264 760-413-2910 Kathie Hart From: Jennifer Nelson Sent: Tuesday,April 19, 2016 1:50 PM To: Jay Thompson; Kathie Hart Subject: FW:Ordinance Prohibiting the rental of Apartments Attachments: The Twist Reviews.docx .Jennifer Nelson Executive Assistant to Mayor and Council City of Palm Springs 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 760-323-8200 Jennifer.nelsonnpalmsprin P_sca.gov City Hall is open Monday - Thursday from 8am to 6pm Closed Fridays From: Tim Brinkman [mailto:brinkman007@hotmail.com] Sent: Tuesday, April 19, 2016 12:23 PM To: mbertlmoon@yahoo.com; Robert Moon Subject: Ordinance Prohibiting the rental of Apartments Hi Rob, I am the owner of The Twist in the Uptown Design District. We met through Howard Hawkes, Patrick Mundt,and Steve Lind, at various times. I also have a vacation home in your neighborhood at 991 N Via Monte Vista. Others and I have felt it urgent that I reach out to you regarding the misguided Foat proposal regarding vacation rentals. I not only speak for myself, but for the vibrancy of Palm Springs. The City Staff has Identified 12 properties that the ordinance prohibiting the rental of apartments effects. The claim is that the new ordinance is necessary to protect affordable housing. This has nothing to do with affordable housing. Craigslist post 1,262 apartment listings in Palm Springs proper, but only 297 job listings. We should be creating jobs to fill these empty apartments, not killing jobs. Just five years ago 140 W. Via Lola was an empty mixed use building that lost its certificate of occupancy due to maintenance neglect. Four years ago it was the hub of locale crime including drug manufacturing and dealing, unregistered firearms and local theft. There were also several squatters in the building. The building was very "affordable to the squatters" but also very dangerous. Today,four years since our purchase, the building is fully occupied with upstanding tenants renting 18 unfurnished apartments and 17 vacation rentals. The 17 vacation rentals contribute to the vibrancy, and help support the new commercial tenants in the building, all local artisans contributing to the unique fabric of Palm Springs: Dish Creative Cuisine, Ernest Coffee, Bootlegger Tiki, Iconic Atomic, Woodman Shimko Gallery and the Al Jackson Gallery. The Twist and its commercial tenants employ over 60 people. Paul Warrin and I took considerable risk four years ago when we purchased 140 West Via Lola (renamed The Twist). Not only did we purchase a building that everyone else shied away from, we poured an additional $5.5 million into the property as a statement of our commitment to the neighborhood. We have not taken a dime out of that property, nor 1 any other property in Palm Springs. We continue to invest in the community to preserve the architecture and design that we love. Our investment in The Twist jump started the Uptown Design District renovation. I also personally worked very hard to bring Dish Creative Cuisine to Palm Springs, in an effort to ignite a foodie renaissance in the Design District. We maintain The Twist as well or better than any apartment building in Palm Springs. Apartment buildings cannot afford the constant cleaning of the pool, glass railings, painting... Also,the vacation renters keep the area vibrant. The proposed ordinance will negatively impact all the small businesses in the area. It will also negatively affect the 60 plus people working in the building, with many losing their jobs. It will also negatively affect tourism. Palm Springs attracts a wide demographic of visitors. Not everyone can afford to stay in a $400/night hotel room and eat every meal out. Nor do all visitors have the means or desire to rent a beautiful vacation home. A MCM apartment with a full kitchen is the ideal for many couples. We have attracted many renters involved with the arts. Without our option,they would have probably avoided the trip altogether or choose down valley to find an alternative rental. Accordingly, they would miss out on the Palm Springs experience that we are trying to share. Is the goal of the Foat ordinance to make Palm Springs only available to the ultra-rich? As you can see from our traveler reviews, we are filling an important niche for visitors. This is also key, we aren't taking business from hotels or others, we are expanding tourism with an alternative option. The Twist offers something completely different than the Embassy Suites, the Kimpton,or any other chain for that matter. Do you want Palm Springs to maintain its own character, or be like 50 other California cities dominated by chains? This ordinance is akin to only allowing national chain stores and restaurants in the Uptown Design District. People come to Palm Springs for its unique content. Four years ago I had a vision of improving our neighborhood (Old and Vista Las Palmas) and the Uptown Design district by totally transforming one key property. The only way to make the numbers have any chance of working, was to dedicate a portion of the building as vacation rentals. Aside from the numbers, I wanted the vacationers to add life to the property. But I also wanted it to be a different experience from a hotel. After four years of dedication to the property by our employees, multiple contractors, city inspectors,city preservationists,our commercial tenants, H3K, Paul, and me, we achieved our vision. And now, with one ill-conceived council proposal,the city is considering destroying all the work that so many have been dedicated to. With it, several jobs will be lost,vacationers that love The Twist will lose their favorite getaway,the neighborhood will suffer and building maintenance will decline. More importantly, Palm Springs will be sending a signal that this is a risky place to invest due to the precariousness of its laws. Business risk provides enough headaches and uncertainty. Compounding Business risk with legal risk is enough to push people away. Of additional note, Paul and I own other apartments that are not vacation rentals. We have a lovely building on Ranchero that has very affordable apartments, including a section 8 renter. We have owned the property for three years and have no intention of converting it to vacation rentals. There are relatively few buildings in Palm Springs that make sense as vacation rentals. The Twist is a natural vacation rental, Ranchero is not. Affordable housing is very easy. Detroit passed a lot of laws to create cheap housing, and they got it. But that is not the model Palm Springs should follow. I believe that you, as me, want a vibrant community that celebrates its assets; natural beauty, architecture,design and style, restaurants, strong community... My point is that ultimately the market will make a better decision than Ginny Foat. For the sake of the town that we love, please take a strong stand against this misguided proposal. I will try calling you to follow up and further clarify any details of this email. I will also be in town this evening through Thursday, if you prefer to meet in person. Very Best, Tim Brinkman Tim Brinkman 2 415-810-9899(M) 415-520-9284(F) b ri n kma n007 @ hotma i l.com "The arguments for cap(tnlisn are subtk end sc)",isticated, while the arguments for collectivism are simple and emotional" Milton fciedman 3 The Twist 140 Via Lola Palm Springs, CA 92262 AirBNB Reviews: Spencer Loved our time at The Twist. This is a beautiful escape within walking distance to everything. The rooms are fabulous and Dee Dee was extremely friendly. Skip the big resorts and enjoy this hideaway. We will be back! February 2016 G�? Kristina The Twist was a wonderful holiday getaway for us. The room is wonderfully decorated and it was so great to have a full kitchen. Our trip was even better when we arrived and truly saw what a great location it is in and that Ernest coffee (in the same building) serves Stumptown coffee. We had a fantastic stay! December 2015 t Mellina Awesome spot! Super clean, quality studio and in a quiet spot. I cannot wait to stay again. November 2015 Ashley We had an amazing time at the Twist and will definitely be coming back. The room had everything we needed and was EXACTLY as pictured. The location was also perfect. With the Tiki bar and coffee shop on the corner we barely left the property during the day and you are walking distance(or—$5 uber if it's hot loll to the main downtown area. September 2015 Tim The Twist was just amazing! Stayed in apartment 106, pictures didn't do justice, all the little touches are well thought out and had everything we needed for a great stay. Whilst we didn't need to meet the host Dee Dee she was available for any questions straight away. Will definitely stay here next time in Palm Springs. Marisa Wonderful experience. Room was better than in pics, great location, awesome decor. ii"I Grace Wow! What an amazing experience. The place was immaculate. The attention to detail was incredible. All the items in the room were in great condition. I have yet to stay in a four star hotel as clean as this vacation rental. Our unit included every amenity we could have needed: toaster, cutting board,blender, towels for the pool, bath, kitchen, hand towels, paper towels, two detergent pods for the dishwasher, plus dishwashing liquid and a sponge, garbage bags, cutlery, plates, bowls, glasses, plastic cups, ice trays, a coffeemaker, packets of coffee and sugar, toiletries in the bathroom, two golf putters and 3 golf balls, a petite ironing board and iron, hangers, hairdryer, and squeegee for cleaning the shower. Clearly, a lot of thought was put into creating the perfect holiday experience. The entire complex was well-maintained, clean, quiet. The people in the complex were nice, friendly, and respectful. Parking was easy. Let's put it this way, at one point, it was 121 degrees outside, but we were so happy to stay in this wonderful room that we barely noticed. Our friends booked the 2-bedroom unit and were just as pleased. We have another set of friends staying at The Twist in October. I'm confident that everyone will want to stay here again. Meg The Twist is the perfect place for an LA getaway. My fiance and I were celebrating our anniversary and were looking for a place that was fun and relaxing, which we got from The Twist. This place looks exactly as it does in the pictures and does not disappoint. Dee Dee is also great and on-site for any questions you may have, she was super welcoming. You are within walking distance to Uptown and all the boutique shops. Definitely counting down the days until we can return. Katie The neighborhood was great and close to everything. The room was beautiful and comfortable! The pool was a great reprieve from the Palm Springs heat! r, 16 Audic This was the best airbnb experience we've ever had. The twist is a brilliant idea--some of the comfort and amenities of a hotel with the comfort of a home. The furnishings are aDorAble, the kitchen is divine, and we had a massive private patio for sunning. We're making this our new home away fro home destination when we want to get away. Highly recommend! a Tasneem Best spot to stay at in Palm Springs. 5 mins away from everything. I arrived and had Didi help me with explaining what I would need, and was very helpful in my q's. I think I was the worst case scenario client because I had my booking changed several times, due to my exhausting schedule that kept changing, and was amazed by helpful and kind the hosts were. They understood why, and made effort to work with my changes, it really made my trip worth it. The apt is gorgeous, great sunlight, beautiful decore and has all the appliances I would need to live there! Honestly, I would love to have the same studio apt anywhere I live in. I came for the photography photo festival, and look forward to booking here again next yr. Thank you Summer and Didi! VRBO REVIEWS 14 h3 Char & Craig Redondo Beach. CA. USA Great little stay with a "Twist"-we keep coming back there! We have stayed at this rental property twice and will be going back for a third in July. The place is beautiful, cute 70's niche decor with the view of the mountains. We prefer the ground units. Pool and hot tub is clean. Right next to Tiki bar and coffee place. The rooms are spacious and really cute kitchen area. Smart to buy food and just hang out. At night,just walk downtown. Dee Dee the on-site manager is wonderful and will make sure you understand how things work. It's far enough from the noise of the main street but short enough distance to walk. I highly recommend the place • Stayed: June 2015 • Submitted: June 8, 2015 • Source: VRBO Recommended for: Girls getaway, Tourists without a car, Age 55+, Romantic getaway ry nw m. .. Mariette V. Great stay (wish we were still there!) My son,boyfriend & I stayed in a one bedroom unit#207 for 5 nights. The complex is beautiful, the apartment itself is very nicely decorated and terrace has a beautiful view of the mountains. Dee Dee the manager gave us a tour of our place and how to use the TV, shower and any questions that we had. We loved our stay, made use of the little mini golf area, the pool & hot tub and the bikes as well. The kitchen was great to make our own breakfast and lunches and everything is there to cook & eat with, we just bought some plastic cups and extra ice for our drinks at the pool! I loved the location of the place, near a coffee place, a fun bar/lounge and many other cool design stores and restaurants. Whenever we had a question for Dee Dee she would get right back to us, which we really appreciated. I would highly recommend this place, so much easier than staying at a hotel! Thank you Dee Dee! • Stayed: March 2015 • Submitted: April 8, 2015 • Source: VRBO Recommended for: Families with young children, Sightseeing, Tourists without a car, Age 55+, Families with teenagers Was this review helpful? i II 3 robbertly Victoria. British Columbia, Canada Perfect apartment, perfect location, beyond expectations, great value We spent 3 weeks in a one bedroom, corner suite with a beautiful view of the mountains and the Old Las Palmas neighborhood. The photos don't lie, in fact the suite felt more spacious and was even more beautiful than the photos. The kitchen was well equipped, extremely clean and functional. Dee-Dee was an excellent on-site manager who helped us in numerous ways. There is a very good coffee shop and small restaurant-bar nearby. We borrowed their bikes for touring the various, close-by neighborhoods and used the 2 bus services (the BUZZ is free) that are nearby for getting major groceries, going to Palm Desert and both ways to the airport (we only had carry-on). The area is very walkable and everyday we walked to design stores, restaurants, bars and museums. We never tired of strolling through the Old Las Palmas neighborhood. There was a handy book in the suite that gave the former addresses of old movie stars. We used the laundry facilities, the pool and the hot-tub - all were very well kept. • Stayed: December 2014 • Submitted: January 15, 2015 • Source: VRBO Recommended for: Sightseeing, Girls getaway, Tourists without a car, Adventure seekers, Age 55+ Was this review helpful? s Y wP sunlessinseattle Seattle Great location, Awesome apartment! Happy to leave a positive review for this place! I have to say that the pictures drew me in, and I think that while they are very accurate, the place was even more spacious than I would've thought. Emails were very communicative and prompt and the onsite manager Dee Dee was very attentive, professional, and hospitable. Located in a place that is easily walkable to all the fun downtown restaurants and activities that Palm Springs has to offer. Pool and hot tub were awesome, Unit is spacious, nicely decorated, and very clean! i went with my wife and Syr old daughter and it was perfect. Will definitely book here again! • Stayed: November 2014 • Submitted: December 2, 2014 • Source: VRBO Recommended for: Families with young children, Girls getaway, Tourists without a car, Adventure seekers, Age 55+, Romantic getaway Was this review helpful? Yo11 415 Wonderful getaway home in the ideal location. Perfect location for all things Palm Springs. No need for a rental car if you are here just for a weekend. Heated pool and hot tub made for relaxing days and nights. No noisy residents and everyone in the building was friendly and neighborly. • Stayed: February 2014 • Submitted: March 11, 2014 • Source: VRBO Recommended for: Pet owners, Sightseeing, Tourists without a car, Adventure seekers, Romantic getaway Was this review helpful? David San Francisco Best in the Desert This was our best vrbo experience ever. The unit was meticulously clean and new. The styling was top rate. We have stayed in many hotels and vacation rentals in Palm Springs, but none come close to matching the simple cool design of this unit. My wife especially liked being only steps away from Trina Turk. I liked riding the unit's cruisers through mid-century modern's epicenter, Vista Las Palmas. The pool area and common areas match the unit's cool aesthetic. We already booked our next visit. • Stayed: July 2013 • Submitted: July 25, 2013 • Source: VRBO Recommended for: Sightseeing, Girls getaway, Tourists without a car, Romantic getaway Was this review helpful? Kathie Hart From: Jennifer Nelson Sent: Tuesday,April 19, 2016 6:06 PM To: Jay Thompson; Kathie Hart Subject: FW: Emergency Ordinance 52050&525030 Jennifer Nelson Executive Assistant to Mayor and Council City of Palm Springs 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 760-323-8200 Jennifer.nelson(a,palmsprinesea.gov City Hall is open Monday - Thursday from 8am to 6pm Closed Fridays From: Michael McLean [mailto:mikevalps4rent.com] Sent: Tuesday, April 19, 2016 5:56 PM To: Robert Moon; Chris Mills; Ginny Foat; Geoff Kors; JR Roberts Cc: Citymanager - Mail Login; jay.Thomoson) cagpvv Subject: Emergency Ordinance 52050 & 525030 Dear Mayor and City Council, With respect to the Emergency Ordinance amending 52050 and 525030, the Vacation Rental Managers of Palm Springs do not support this amendment as drafted. We are requesting a follow up meeting with the subcommittee to review and hear comments with respect to the staff report presented. The City has not reached out to any stakeholder within the vacation rental industry nor met with the subcommittee to review the draft proposal. Furthermore, during our meeting with the vacation rental subcommittee last month, the ONE PS recommendations had recently been published and at that time it was communicated to us that the City would not vote on any change to the ordinance prior to meeting with our industry group. If the City wishes to amend the ordinance we request that they do so in a public process to hear testimony from the property owners and professional stakeholders that would be affected by this change. We appreciate your time and attention to this matter. Regards, Michael McLean President 1 I SHEILA R.COBRIN 755 CAMINO SUR PALM SPRINGS,CA 92262 crry OFPALMSpRINGS April 19, 2016 2 0 16 APR 19 PH 6: 38 Mr. Jay Thompson, City Clerk JA C1E7 ylHoMit U!d City of Palm Springs 3200 E. Tahquitz Canyon Way Palm Springs, CA 92263 Re: Council Agenda for April 20, 2016 Item: 3B: Proposed Urgency Ordinance and Ordinance Prohibiting the Rental of Apartments (More Than Three Units) As Vacation Rentals Dear Jay and Members of the Palm Springs City Council. I am in receipt of the Council Staff Report dated April 20, 2016. After reading your Staff Report regarding this issue and giving it quite a bit of thought I cannot figure out how you came up with the arbitrary number of four (4) units. An apartment building to me is an edifice that is more than one story and has multiple single apartments on each floor. I do come from a big city and that is where I get this idea. You have chosen to propose this an "urgency ordinance" without having any sort of a public hearing, notification to the twelve (12) property owners of your intention of putting them out of business by the end of June 2016. It is this City of Palm Springs that allowed the owners of these properties to spend tens of thousands of dollars to rehab and bring these properties up to code, pass inspection and issue them a COO (Certificate Of Occupancy) and a permit to do business as a Vacation Rental. I do understand that there is a shortage of rental apartments in the City of Palm Springs but that is not the fault of the twelve property owners you have designated to shut down. I believe that these properties, if they are under at least fifteen (15) units should be "grandfathered" into this ordinance to be fair and equitable. Trusting this matter will receive your fair and unbiased consideration. Sincerely, Sheila Cobrin Cc: Honorable Mayor Robert Moon Council Member Geoff Kors Council Member J.R. Roberts Council Member Ginny Foat Council Member Chris Mills Jay Thompson From: James Hansen <james.hansenpdx@gmail.com> Sent: Tuesday, April 19, 2016 2:44 PM To: CityClerk; CityClerk Cc: Jay Thompson Subject: Emergency Ordinance amending 525050 and 525030 Dear City Council, I am an owner of both a vacation rental property and a small boutique hotel in Palm Springs. I was shocked yesterday when a friend forwarded me the proposed Urgent Ordinance Prohibiting the Rental of Apartments as Vacation Rentals. How is it possible the Council is considering a vote to close legal, permitted and established businesses in such a fashion? Without notice and within 60 days? Has everyone at the City forgotten what Due Process means? When did the public hearings on this occur? When were affected parties given notice? If I hadn't have been forwarded the proposed ordinance, I could easily have found out I was out of business by reading the newspaper Thursday morning. Over the past four years, I have paid over$165,000 in TOT and another$85,000 in local fees and property taxes. Is the City so unconcerned about finances that they can abandon these revenues without any thought to the consequences? If the City has an affordable housing crisis then a plan needs to be developed to address it. This ordinance, at its best interpretation, would slap a band aid on an open artery. At its worst interpretation, it's the first step in eliminating all vacation rental properties. If affordable housing is indeed the goal, then issue a moratorium on new permits allowing apartment building conversions to vacation rental properties. Hold a public meeting and publish data about what is happening to housing in Palm Springs. Pursuing this secret emergency strategy calls into question the integrity of public decision making in Palm Springs. Come out into the sunshine. We can solve this problem, working together without destroying established businesses. Sincerely, James Hansen, Owner Santiago Resort Thirteen Palms t Cindy Berardi ;IT Y OF PALM SPRINGS From: Paul Warrin <paul@elevationpm.com> Sent: Wednesday, April 20, 2016 1:13 AM 2111 APR 20 AM 10: 37 To: JayT erk JAMES THOMPSON Cc: Jay Thompson Subject: Re: Emergency Ordinance amending 525050 and 525030 CITY CLERK Dear Sirs, Regarding the proposed ordinance to limit vacation rentals in Palm Springs, I would like to point out that this ordinance is aiming to fix a problem that does not exist. In my experience as a long-term rental owner, there seems to be many more properties for rent than there are people looking for rentals. In fact, a quick search on Craigslist shows 1100 vacancies advertised in Palm Springs and the immediate vicinity. Trulia shows another 310 postings in Palm Springs and Cathedral City. In addition, per the chart below from Zillow,you can see that the average rental rates in Palm Springs (the dashed and dotted lines) have been trending down for the past year. They are actually significantly lower than they were in 2011. 1 would venture to say that the only people benefitting from this ordinance are hotel operators in Palm Springs. They would be happy to see less competition at the lower end of their price range. The people it hurts are budget-conscious vacationers hoping to visit Palm Springs. When these vacationers decide to travel elsewhere,the local economy will suffer, and this misguided ordinance will end up hurting the same people it was trying to help in the first place. I appreciate your careful consideration in seeing how this completely unnecessary ordinance will end up achieving the opposite of what it intended to do. RENT ZESTIMATE - 1 year 5 years 10 years This home $2.200 -- 92264 - `. $2.100 Palm Springs �,� �`,� $2.000 $1.600 $1.500 $1,400 $1.300 $1.200 Dec 2011 Dec 2012 Dec 2013 Dec 2014 Dec 2015 1 Cindy Berardi CITY OF P,trl st>r irdc From: Paul Warrin <paul@elevationpm.com> Sent: Wednesday, April 20, 2016 1:13 AM 2018 APR 20 AM 10: 37 To: CityClerk Cc: Jay Thompson JAMES THOMPSC)fi Subject: Re: Emergency Ordinance amending 525050 and 525030 CITY CLERK Dear Sirs, Regarding the proposed ordinance to limit vacation rentals in Palm Springs, I would like to point out that this ordinance is aiming to fix a problem that does not exist. In my experience as a long-term rental owner,there seems to be many more properties for rent than there are people looking for rentals. In fact, a quick search on Craigslist shows 1100 vacancies advertised in Palm Springs and the immediate vicinity. Trulia shows another 310 postings in Palm Springs and Cathedral City. In addition, per the chart below from Zillow, you can see that the average rental rates in Palm Springs(the dashed and dotted lines) have been trending down for the past year. They are actually significantly lower than they were in 2011. 1 would venture to say that the only people benefitting from this ordinance are hotel operators in Palm Springs. They would be happy to see less competition at the lower end of their price range. The people it hurts are budget-conscious vacationers hoping to visit Palm Springs. When these vacationers decide to travel elsewhere,the local economy will suffer, and this misguided ordinance will end up hurting the same people it was trying to help in the first place. I appreciate your careful consideration in seeing how this completely unnecessary ordinance will end up achieving the opposite of what it intended to do. RENT ZESTIMATE - 1 year 5 years 10 years This home $2.200 -- 92264 —`�` $2,100 -•- Palm Springs ��� $2,000 $1,900 $1.800 $1.600 $1.500 $1.400 $1.300 $1.200 Dec 2011 Dec 2012 Dec 2013 Dec 2014 Dec 2015 1 Respectfully, Paul Warrin 2 Cindy Berardi From: Jaime Kowal <info@jaimekowal.com> Sent: Wednesday, April 20, 2016 10:19 AM To: Jay Thompson; CityClerk Cc: Robert Moon; Chris Mills; Ginny Foat; Geoff Kors;JR Roberts; Citymanager - Mail Login; Douglas C. Holland; Amanda McWilliams Subject: Proposed Urgency Ordinance and Ordinance Prohibiting the Rental of Apartments As Vacation Rantals Jaime Kowal 11821 E Amado Rd Palm Springs CA 92262 April 20, 2016 o -{ � w � Mr. Jay Thompson, City Clerk City of Palm Springs <-4 o y� 3200 E Tahquitz Canyon Way �o < Palm Springs CA 92262 "C Z5 �o } w i Re: Council Agenda for April 20, 2016 ,r Item: 3B Proposed Urgency Ordinance and Ordinance Prohibiting the Rental of Apartments (More than three units) As Vacation Rentals - amending 5.25.050 and 5.25.030 and adding section 5.25.075 Dear Jay and Members of the Palm Springs City Council, My name is Jaime Kowal and I am the Owner of The Amado, and of Champagne Sundays which designed and manages The Junipero - both are multiplex apartments that have legally been converted to vacation rentals. I am also the Co-owner of Ernest Coffee and Bootlegger Tiki. Between my businesses here I have created over 25 full and part time jobs in the past three and a half years. As a business owner and advocate of Palm Springs both as a tourist destination and friendly place for young entrepreneurs to move to and invest in, I am extremely concerned with the proposed ordinance rescinding any permit currently issued to an apartment operating as a vacation rental. I am concerned with how it is currently written, and also for the potential of it being amended and implemented in some form in the future. When I first moved here from Canada I was encouraged by city staff who were at the time championing new investment in the city, including vacation rentals. My goal has been to focus on job creation, economic vibrancy, better neighborhoods, and responsible ownership. Over the past few years, The Amado and The Junipero have collectively paid over$45,000 in TOT to the City. I have employed local contractors and suppliers and invested hundreds of thousands of dollars to renovate both properties. The renovations have improved building safety and code compliance for these old apartment buildings that were left in disrepair over the years. Since opening in 2013 The Amado has hosted thousands of happy guests celebrating birthdays, family reunions and time together. We have hundreds of 5 star reviews. We have participated in 1 Modernism Week and are currently featured on the cover of Sunset Magazine. The property has been featured in Travel and Leisure, Architectural Digest, Elle UK, Vogue Living Australia and 40 other international media outlets as an example of how Palm Springs is evolving into a highly desirable vacation destination for young, creative professionals who are coming here in droves and supporting local restaurants, shopping, spas and other businesses with their tourist dollars. This demographic loves vacation rental properties and wants to stay there because it is an intimate and unique opportunity to actively experience mid-century modern architecture and a thoughtfully designed space. Overall I believe The Amado and The Junipero have been a positive contribution to our local business community, neighborhoods and the City of Palm Springs. Between my vacation rental properties and other businesses, my partners and I have invested over 2M in Palm Springs. After reading this ordinance I have already halted one business venture I was about to invest in. I am seriously considering stopping any future investment in Palm Springs as my confidence in my ability to continue to run my businesses in a safe, fair and reliable manner has been thwarted. At this point I can't honestly answer the media and say that this continues to be a great place to move to and invest in if the very existence of my business activities are at risk. We have to consider the message that the revocation of these licenses will give to those considering doing business in Palm Springs in other business sectors as well. Companies will think twice and wonder whether their segment would all of sudden not be supported by the city. Changing an ordinance that would prevent me from continuing to operate my vacation rental businesses is no different than changing an ordinance that would prevent me from operating Ernest Coffee or Bootlegger Tiki. It is simply unfair. I know investors in LA who were looking at investing in Palm Springs specifically to provide long term housing options which would have helped the cause at hand, and after hearing about this ordinance have told me they are going to look elsewhere because changing the scope of a business permit mid- operation presents an undeniable risk to any investor. Additionally, this real estate market is not solely dependent on demand like other markets but is supported by the return on investment that vacation rentals provide and if they are no longer allowed, market values will fall resulting in a net loss for investors and home owners alike. The ordinance states the only fiscal impact is a "minimal loss of Vacation Rental fees and TOT that could be generated by the conversion of an apartment, consisting of four or more units, to vacation rental units". This simply isn't the only fiscal impact. If this ordinance was approved and I had to shut down operations, I would have to let go of 5 staff immediately. With a multiplier of 12+ buildings, my guess is that dozens of jobs will be lost. I acknowledge the need to discuss options to provide and maintain affordable housing in the City of Palm Springs, but I don't believe this ordinance is the way to achieve that, and that further conversation and analysis is required. The idea that vacation rentals are directly affecting affordable housing is not yet proven and there is no evidence to support the idea that converting multiplex apartments to vacation rentals presents an immediate threat to the public health, safety and welfare of the residents of Palm Springs as this ordinance suggests. The force behind a lack of affordable housing is not simply vacation rentals - it's gentrification in general which includes a number of factors. Relative to urban areas, rent is still affordable. It is 1/3 the cost of LA. City Staff has identified twelve properties in this ordinance. Craigslist currently shows 1160 vacancies advertised in Palm Springs today and 2500+ if you include the immediate vicinity around Palm Springs. Trulia shows another 310 postings in Palm Springs and 2 Cathedral City. Zillow plots a chart that shows the average rental rates in Palm Springs have been trending down for the past year. They are actually lower than they were in 2011. Affordable housing is created by allowing developers create greater densities, not by punishing existing investors who upgraded and furnished their buildings to make them eligible for vacation rental. The upfront investment was driven by the projected return from vacation rentals. These units would ultimately dictate a rental rate that is still out of reach for anyone looking for affordable housing opportunities. As a property owner, I still have the option to use my property in other ways such as a sober living facility or furnished long term rentals over 28 days which still wouldn't solve the problem of affordable housing. Instead of revoking the existing business licenses of law-abiding business owners, why not take these TOT revenues and put them towards affordable housing solutions in the City of Palm Springs? I would encourage a moratorium on this ordinance and the facilitation of a respectful discussion based on facts and creative problem solving to address the issue of affordable housing in a holistic way. Sincerely, Jaime Kowal CC: Honorable Mayor Robert Moon Council Member Geoff Kors Council Member J.R. Roberts Council Member Ginny Foat Council Member Chris Mills Jaime Kowal Photography Editorial and commercial photographer with a focus on design,lifestyle&travel "40 Under 40"-Palm Springs Life Magazine Small Business of the Year Award-Palm Springs Chamber or Commerce Recently published in: New York Times Architectural Digest Vogue Living Australia Conde Nast Traveler Qantas Magazine + 1 760 666 1766 www.iaimekowal.com Other creative projects include: www.theamado.com www.theiunipero.com wvrw.ernestcoffee.corn 3 SHEILA R.COBRIN 755 CAiMINO SUR PALM SPRINGS,CA 92262 April 19, 2016 Mr. Jay Thompson, City Clerk City of Palm Springs 3200 E. Tahquitz Canyon Way Palm Springs, CA 92263 Re: Council Agenda for April 20, 2016 Item: 3B: Proposed Urgency Ordinance and Ordinance Prohibiting the Rental of Apartments (More Than Three Units) As Vacation Rentals Dear Jay and Members of the Palm Springs City Council. I am in receipt of the Council Staff Report dated April 20,2016. After reading your Staff Report regarding this issue and giving it quite a bit of thought I cannot figure out how you came up with the arbitrary number of four (4) units. An apartment building to me is an edifice that is more than one story and has multiple single apartments on each floor. I do come from a big city and that is where I get this idea. You have chosen to propose this an "urgency ordinance" without having any sort of a public hearing,notification to the twelve (12) property owners of your intention of putting them out of business by the end of June 2016. It is this City of Palm Springs that allowed the owners of these properties to spend tens of thousands of dollars to rehab and bring these properties up to code, pass inspection and issue them a COO (Certificate Of Occupancy) and a permit to do business as a Vacation Rental. I do understand that there is a shortage of rental apartments in the City of Palm Springs but that is not the fault of the twelve property owners you have designated to shut down. I believe that these properties, if they are under at least fifteen (15) units should be "grandfathered" into this ordinance to be fair and equitable. Trusting this matter will receive your fair and unbiased consideration. Sincerely, Sheila Cobrin Cc: Honorable Mayor Robert Moon Council Member Geoff Kors Council Member J.R. Roberts Council Member Ginny Foat Council Member Chris Mills Kathie Hart From: Jennifer Nelson Sent: Wednesday,April 20, 2016 9:45 AM To: Jay Thompson; Kathie Hart Subject: FW: Proposed Ordinance Jennifer Nelson Executive Assistant to Mayor and Council City of Palm Springs 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 760-323-8200 Jennifer.nelsonnpalmspringsea.gov City Hall is open Monday - Thursday from Sam to 6pm Closed Fridays From: Jeff Brock [ma!Ito:jeffwbrock@amail.com] Sent: Wednesday, April 20, 2016 7:18 AM To: Robert Moon; Chris Mills; Ginny Foat; Geoff Kors; JR Roberts; Citymanager - Mail Login Cc: Richard Crisman Subject: Proposed Ordinance As a resident and hotel owner in Palm Springs we strongly believe the Proposed Urgency Ordinance Prohibiting the Rental of Apartments as Vacation Rentals should be tabled at tonights Council meeting. This Ordinance is a knee-jerk reaction to a complex and impactful issue. At minimum, the Ordinance should be rewritten to grandfather in the existing businesses that have been previously approved. Local business woman Jaime Kowal is an example of how unfair the Ordinance is to individuals. Jaime has significant investment into a business that has been approved by the city. Through her business she has received considerable amounts of editorial and recognition in national and international press that has done much to promote Palm Springs in an authentic and personal manner, more than any single individual over the past two years. Her livelihood would be threatened by this Ordinance and we would loose her as a face of the new Palm Springs. We urge you to table this as it should be reviewed and discussed further prior to consideration. Jeff Brock Richard Crisman April 201h, 2016 Mr.Jay Thompson, City Clerk City of Palm Springs 3200 E.Tahquitz Canyon Way Palm Springs, CA 92262 Dear Mr. Thompson, My name is Shon Tomlin and I am a permanent resident and home owner in Palm Springs. I have been visiting Palm Springs regularly since 1988 and my passion for this city finally brought me here as a permanent resident in 2012. I own a home in Sunrise Park which also serves as a part time vacation rental. l happily comply with the city's ordinances, pay my TOT taxes each month, and take great care to respect my neighbor's concerns. 1 also own two 1 bedroom condos in the city.These are apartments that were previously unrentable.As a result, I conducted permitted renovations to bring them to code and now rent them as one-year and long term units to lower income working class here in town. As a resident, home owner, and landlord I understand the importance of housing for all socio economic groups. However, I am bewildered by this proposed ban on vacation rentals for apartments 4 units and over. This ordinance does not appear to take into account the thriving microeconomy and public good that properties such as The Amado in Sunrise Park create. These properties have also greatly improved the visual aesthetic of our neighborhoods and given rise to a better quality of living, higher property values, and safer zones. These businesses, along with all of the other tourism related businesses, provide immense employment opportunities for our residents. In addition to the TOT revenue, a single property provides dozens of jobs across cleaning,service, maintenance, property managers, boutique marketing firms, part time bookkeepers, accountants and independent designers here in town. This is the lifeblood of our unique community. The net benefit of this thriving economy must be taken into account when an ordinance such as this is proposed.Wiping out hundreds of jobs from a single ordinance doesn't make sense- especially in today's job market. I have approached the subject of vacation rentals with openness and compassion.Over the last 3 years, I have listened to the arguments on both sides of the aisle. 1 have sat on the neighborhood boards and have been very active on Next Door where the attacks and sentiment towards tourism is downright vicious.What I've discovered through this process is that there is a very mean- spirited approach to vacation rentals and tourism in general. Home owners and business owners have been vilified by a small but vocal group who have engaged in an uncivil witch-hunt for vacation rentals of all kinds.While I understand the concern for a few non-compliant vacation rental owners,the broad attacks are unwarranted and often misplaced. There are too many of us that love this city and have worked hard to make Palm Springs an inviting destination. Individuals like Jaime Kowal give back to this community on so many levels. Just the press alone that The Amado has generated is worth a mint in media value (See Travel and Leisure,Sunset Magazine, New York Times, etc.).The list goes on. As this opposition group pressures city council and management, I would encourage all parties to engage in a tempered approach that commands a thorough review of the facts.The negative impact that these draconian ordinances place on our community extends far beyond what meets the eye. Our community deserves an honest and transparent account of the potential hardship this will cause across a wide demographic of residents. As a community, let's strive to strike a balance between progress and preservation. We can protect the sanctity and safety of our neighborhoods without a heavy handed restriction of trade and an annihilation of precious job opportunities. In regards to the issue of affordable housing, many of us find it difficult to believe that a few apartment conversions displace renters to the point of being homeless. Today alone, there are over 800 low rent apartment rentals on Craigslist. One can simply walk a few blocks around City Hall and find a dense concentration of hundreds of affordable apartments; all of which are not even suitable for vacation rentals,let alone allowed by their respective HOAs. The idea that affordable housing will be destroyed by a few vacation rentals is simply baseless. It's appears more likely to be a fabricated stretch devised by a small group that ultimately want an end to vacation rentals and tourism in general. I know because I've met these individuals, sat on multiple HOA and neighborhood boards. The mean-spirited vilification is akin to blaming an entire ethnic group on all crime. In summary, I respectfully ask city council and staff to pause for a moment and open this issue up to the community for a measured review. We must take an honest and thoughtful account of all sides of this issue.As a community we must understand the full scope and trickle-down impact this will have on hundreds of hard working residents who covet their jobs and love this city. Sincerely, Shon Tomlin Resident RECEIVED CITY OF PALM SPRINGS 2011 APR ZO PM 4- 17 1A CITY CLERK KPSON April 20, 2016 Mayor Robert Moon City of.Palm Springs 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 SUBJECT: PROPOSED ORDINANCE PROHIBITING RENTAL APARTMENTS (MORE THAN THREE UNITS) AS VACATION RENTALS Dear Mayor Moon and Council Members, On behalf of the California Apartment Association - Greater Inland Empire, I respectfully inform you that we have concerns regarding the proposed ordinance prohibiting the rental of apartments (more than three units) as vacation rentals that the city of Palm Springs is introducing. Upon preliminary review, we ask that council continue this item until all stakeholders have had an opportunity to discuss it and the impacts of this proposal can be further studied. For example, the ordinance fails to address the fact that many tenants rent out their own apartment as vacation rentals unbeknownst to the owners. This alone shows the need for a discussion among all stakeholders and the city. We look forward to starting a collaborative discussion with the city of Palm Springs that will result in identifying the most accurate and fair approach in addressing the issues surrounding vacation rentals. The rental housing and apartment industries provide housing to more than 700,000 Riverside County residents. Thank you for your consideration and time on this important matter. Sincerely, --za Tim Johnson, Executive Director 10390 Commerce Center Drive,Suite C-240, Rancho Cucamonga,CA 91730 909.948.0784 caanet.org Cindy Berardi From: Brian Wilson <brianlwilson2006@yahoo.com> Sent: Wednesday,April 20, 2016 3:25 PM To: Jay Thompson; CityClerk Cc: Robert Moon; Chris Mills; Ginny Foat; Geoff Kors; 1R Roberts; Citymanager- Mail Login; Douglas C. Holland;Amanda McWilliams Subject: Proposed Urgency Ordinance and Ordinance Prohibiting the Rental of Apartments as Vacation Rentals Brian Wilson Bennion Deville Homes 850 N. Palm Canyon Dr. Palm Springs, CA 92262 April 20, 2016 Mr. Jay Thomson, City Clerk City of Palm Springs 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 RE: Council Agenda April 20, 2016 Item: 3B Proposed Urgency Ordinance and Ordinance Immediately Prohibiting Multifamily Properties of 4 or More Units Being Rented as Vacation Rentals Dear Mr. Thompson and All Members of the Palm Springs City Council: My name is Brian Wilson. I am a real estate agent working in Palm Springs with Bennion and Deville Homes. I have been a licensed real estate agent in Southern California for approximately 16 years, with experience in both residential and commercial real estate sales and leasing, as well as experience in commercial/multifamily finance. I also have experience as an asset manager, handling bank owned properties once they have fallen into foreclosure. I graduated from USC, with a BS in Business Administration, emphasis in Entrepreneurial Studies. As a real estate and business professional, I am extremely concerned with the proposed urgency ordinance being considered this evening that would immediately prohibit anyone operating their multifamily properties with 4 or more units as vacation rentals. This will have a devastating financial impact on many esteemed members of our community, and I have divided them into the following 3 groups: 1. (Group 1) Those currently operating their multifamily properties of 4+ units as vacation rentals. 2. (Group 2) Those that are currently remodeling their properties with the intention of renting their buildings as vacation rentals. 3. (Group 3) Those that recently purchased their multifamily properties at premium values with the sole intention of using them as vacation rentals. Let's look into just a few of the issues that will affect each of these three groups. Group 1, which according to my research appears to consist of at least 5 buildings, will experience: I. Loss of ALL income for several months due to lack of tenants during the transition period. 2. Marketing, maintenance and other staff will be laid off and will also incur financial distress. 3. Owners will be forced to decide whether they should immediately sell furnishings, kitchenware, linens and other personal items found in their furnished short term rentals, or to incur costly storage options. Offering these personal items to a long-term tenant is not customary and is complicated. 1 4. Long term income reduction of at least 40-60%, due to the conversion to standard long term tenant rental rates. 5. Many of these vacation rental owners have invested hundreds of thousands of dollars into renovating old properties that were dilapidated, many preserving the mid century architecture that was falling into disrepair (in addition to whatever they may have paid for the property). Without an income stream sufficient to cover the mortgage and renovation costs, some owners may be faced with default with no way to repay the expensive projects they have completed. Even those without mortgages will experience a severe income disruption as a "reward" for their investment in our community. This isn't a proper solution either. Group 2, which according to my research consists of at least 3 buildings currently under or preparing for construction for vacation rental use, will likely experience (in ADDITION to the results listed in Group 1 above): 1. Cessation of construction due to uncertain income stream sufficient to cover investment in upgrading of the property (Owners choosing to walk rather than continue). 2. As applicable, susceptibility to default of mortgage and construction costs and associated complications the city faces with abandoned projects. Group 3, which according to my research consists of at least 3 buildings purchased in the past 12 months at prices approximately 2 times higher than typical market rates due to vacation rental suitability, will likely experience the following issues: 1. Income reduction 40-60% less than expected at time of purchase, creating a default risk. These owners recently purchased buildings that were advertised and renovated with vacation tenants in mind, and were sold at a premium in anticipation of that income (all documented and publicly available info). 2. Not all multifamily properties are suitable for vacation rental usage. Short term tenants like a pool, a kitchen, interesting architectural properties, and to be located in or near amenities. If vacation rental use is indeed prohibited, all multifamily buildings that have been renovated and upgraded with this use in mind will immediately lose about 40-60% of their value. Any commercial real estate professional will tell you that multifamily properties, especially with 5 or more units, are valued on the income they bring in, or the potential future value if current use is at or below market values. The higher the income, the higher the value of that building, and vice versa. These recent buyers in particular will be understandably upset, since they just purchased a building with a sudden unexpected price devaluation which is not a result of normal market forces, but instead because of sudden city policy changes. In summary, the urgency ordinance being proposed against apartment buildings being used as vacation rentals will create dramatic financial implications for building owners AND staff for these buildings alike. All of those affected by this ordinance appear to have followed the law, and should not be penalized for investing in Palm Springs. There are many additional factors at play in this complicated discussion that deserve to be a part of this conversation. A sudden urgency ordinance doesn't allow for that to occur. Palm Springs is a community whose lifeline is tourism. The city needs to engage in a more balanced conversation to the affordability issue, rather than unfairly targeting these entrepreneurs and slapping them with a penalty when they haven't broken the law. These property owners are not solely responsible for the increasing rental and sales prices the city of Palm Springs has experienced the past 5 years, yet they are being singled out. An improving economy, along with the success of events such as Modernism Week, are just a few of the reasons people are flocking to our desert oasis, and driving up demand and pricing for homes and rentals alike. It would be just as ludicrous to suggest such an ordinance against the organizers of our successful city festivals, in an effort to reduce the impact the higher demand is having on our values. People love our city, our architecture and our geography. We need to investigate strategies where the city can embrace both business growth AND keep a balanced demographic representative of all citizens, rather than suggest a stance that could even create liability risks for the city in the short term. I hope that all members of the City Council will take all of this into consideration and will NOT vote in favor of this urgency ordinance. Additionally, I hope everyone will seriously consider the negative ramifications any future derivatives of this ordinance could cause that may not have been previously considered. Sincerely, Brian Wilson 2 CC: Honorable Mayor Robert Moon Council Member Geoff Kors Council Member J.R. Roberts Council Member Ginny Foat Council Member Chris Mills 3 Cindy Berardi From: Marla Malaspina <marla699@yahoo.com> Sent: Friday, April 22, 2016 2:12 PM To: Ginny Foat Cc: CityClerk Subject: Your support of 3B and request for meeting Dear Councilmember Foat, Thank you for your much needed support of protecting affordable housing in Palm Springs with your vote to pass a temporary moratorium on new rental permits for apartment units. I would very much appreciate the opportunity to meet with you to discuss in person the recommendations our organization has proposed to address the concerns of residents negatively impacted by the proliferation of short term rentals in our neighborhoods. You know that top of our list would be a similar temporary moratorium on new permits for single family homes in order to give the city time to engage residents, review best practices elsewhere and set the right course for Palm Springs. Please let me know if I may call to schedule a meeting with you this month. With much gratitude, Marla Malaspina Steering Committee www.protectourneighborhoods.net t CITY OF PALM SPRINGS NOTIFICATION City Council Meeting Date: April 20, 2016 Subject: Ordinance No. 1891 AFFIDAVIT OF PUBLICATION I, Kathie Hart, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of the attached Ordinance Summary was published in the Desert Sun on April 27, 2016. 1 declare under penalty of perjury that the foregoing is true and correct. W a2a Kathie Hart, MMC Chief Deputy City Clerk AFFIDAVIT OF POSTING I, Kathie Hart, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of the attached Ordinance Summary and Ordinance 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 April 21, 2016. 1 declare under penalty of perjury that the foregoing is true and correct. WdAa Kathie Hart, MMC Chief Deputy City Clerk The Desert Sun 750 N Gene Autry Trail Certificate of Publication Palm Springs, CA 92262 RECEIVED 760-778-4578/Fax 760-7784731 CITY OF PALM SPRINGS State Of California s5: 2016 MAY -2 AM 8129 County of Riverside JAMES TNOMPSGIJ CITY CLERK Advertiser: CITY OF PALM SPRINGS/LEGALS PO BOX 2743 PALM SPRINGS CA 92263 Order# 0001227028 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 fallowing dates,to wit: Newspaper:The Desert Sun 4/27/2016 1 acknowledge that I am a principal clerk of the printer of The Desert Sun, printed and y No aseli it published weekly in the City of Palm Springs, AN 0 DIN Y CEuapDi 1 OF County of Riverside, State of California.The THE CITY OF PALM SPRINGS, Desert Sun was adjudicated a Newspaper of no SFosasam AANE D 5.22sow CIF AND ADDING SECIION 5.25.075 general circulation on March 24, 1988 by the TO, THE PALM SPRINGS M1JNR7- Pµ CODE PRGHMMNG THE Superior Court Of the County Of Riverside, RENTAL OF APARTMENTS AS VA- State of California Case No. 191236. unorCfty Ar�a(uSTNs This Urgex/Ordinance amends the aws Vacation Rental ordinance to prohibit the mr wnlon of apart- ments(as deflnad)to vacation ram - .1,in the Cdy,eacePU apartments covered ion M cairn IoU prior APrll 1is�2016. 1 declare under penalty of perjury that the This ordinance oes Into affect upon foregoing is true and correct. Executed on adopt°nMCE Vote.ION this 27th o APRIL, 2016 in Palm STATEOF COUNTY A FRIVERSID )) CITY OF PALMI SPRINGS ) Springs, IfO7. L JAMES TNOMPSON, City Clerk of 1/\ the City of Palm Springs, hereby cer- tify that urgency Ordinance No.1891 is a tun,true and correct copy, and was adopted at a regular meeting of l the City Council held on the 2osh day ofA vc,206,by Mer Foat,hg vote:, t_ty` v IC-J AYES Councl by the Poat Coundimember KM, r Pro Councllmember Roberts, Mayor Tem Mills,and Mayor Moon NOES: None vl ABSENT: None ABSTAIN: None JAMES THOMPSON.CITY CLERK ecla t city of Palm Springs,California Published:427116 ORDINANCE NO. 1891 AN URGENCY ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTIONS 5.25.020 AND 5.25.030 OF, AND ADDING SECTION 5.25.075 TO, THE PALM SPRINGS MUNICIPAL CODE PROHIBITING THE RENTAL OF APARTMENTS AS VACATION RENTALS (4/5THS VOTE) City Attorney Summary This Urgency Ordinance amends the City's Vacation Rental ordinance to prohibit the conversion of apartments (as defined) to vacation rentals in the City, excepting apartments covered by vacation rental certificates issued prior to April 15, 2016. This Ordinance goes into effect upon adoption by 4/5ths vote. CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Urgency Ordinance No. 1891 is a full, true and correct copy, and was adopted at a regular meeting of the City Council held on the 20th day of April, 2016, by the following vote: AYES: Councilmember Foat, Councilmember Kors, Councilmember Roberts, Mayor Pro Tern Mills, and Mayor Moon NOES: None ABSENT: None ABSTAIN: None MES THOMPSON' CITY CLERK City of Palm Springs, California ORDINANCE NO. 1891 AN URGENCY ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTIONS 5.25.020 AND 5.25.030 OF, AND ADDING SECTION 5.25.075 TO, THE PALM SPRINGS MUNICIPAL CODE PROHIBITING THE RENTAL OF APARTMENTS AS VACATION RENTALS (4/5THS VOTE) City Attorney Summary This Urgency Ordinance amends the City's Vacation Rental ordinance to prohibit the conversion of apartments (as defined) to vacation rentals in the City, excepting apartments covered by vacation rental certificates issued prior to April 15, 2016. This Ordinance goes into effect upon adoption by 4/5ths vote. The City Council of the City of Palm Springs finds: A. The City Council of the City of Palm Springs has adopted a Land Use Element and a Housing Element of its General Plan. The Land Use Element sets forth policies and goals toward the protection of land use planning that is protective of the social impacts of land uses and the Housing Element sets forth the City's policies and goals towards providing a supply and range of housing opportunities throughout the City. B. The City Council has expressed concern regarding the potentially adverse impacts that the conversion of rental apartment units to vacation rental uses may have on the City's rental housing stock and resident socio-economic population mix. C. There is a current and immediate threat to the public health, safety, and welfare because conversions of apartment units to vacation rentals could displace apartment residents and drive these residents out of Palm Springs, eroding the City's resident socio-economic population mix but also adversely impact City business that rely on residents in that mix as a valuable employee pool. D. The City Council specifically finds there is a reasonable relationship between the conversion of apartment units to vacation rentals and the diminution in the supply of housing affordable to low income families by eliminating units formerly affordable to low income families will create undue hardships for low income residents displaced by the conversion to vacation rentals and will otherwise adversely affect the availability and cost of housing affordable to low income families throughout the City. E. The purpose of this ordinance is to (1) ensure a reasonable balance in the availability of rental and ownership housing in the City and to maintain opportunities for individual choice in the tenure, type, cost, and location of housing; (2) maintain an adequate supply of housing affordable to low income residents; and (3) avoid displacement of and undue hardship to residents of the City who may be required to move from the community due to a shortage of low income housing caused in part by conversions of apartment units to vacation rentals. Urgency Ordinance No. 1891 Page 2 The City Council of the City of Palm Springs, California, ordains: SECTION 1. Section 5.25.020 of the Palm Springs Municipal Code is amended to read: 5.25.020 Findings. The City Council finds and determines as follows: (a) The use of single-family dwelling units for Vacation Rental lodging purposes provides alternate visitor serving lodging opportunities in the City; however, such uses in certain single-family neighborhoods may have effects that can best be addressed through an appropriate city regulatory program. (b) The establishment of a regulatory program for Vacation Rental lodging will provide an administrative procedure to preserve existing visitor serving opportunities and increase and enhance public access to areas of the City and other visitor destinations. (c) Limiting Vacation Rental lodging to single-family dwelling units and prohibiting Vacation Rental lodging in multi-family or apartments will preserve and protect residential housing stock in the City. (d) The purpose of this Chapter is to establish regulations for Vacation Rental lodging within single-family residential neighborhoods and the related use of residential property thereby enabling the City to preserve the public health, safety, and welfare. (e) This Chapter is not intended to regulate hotels, motels, inns, time-share units, or non-vacation type rental arrangements including, but not limited to, lodging houses, rooming houses, convalescent homes, rest homes, halfway homes, or rehabilitation homes. SECTION 2. Section 5.25.030 of the Palm Springs Municipal Code is amended to add the following definitions and amend the definition of"Vacation Rental:" "Apartment" means a residential unit in a multi-family development of two (2) or more dwelling units where each unit is rented or leased for occupancy as a residence for one individual or family. "Single-family dwelling" means a detached building designed primarily for the use of a single family and no portion which is to be rented out separately. "Vacation Rental" means a single-family dwelling, or any portion thereof, rented for occupancy for dwelling, lodging, or sleeping purposes for a period of twenty-eight consecutive days or less, other than ongoing month-to-month tenancy granted to the Urgency Ordinance No. 1891 Page 3 same renter for the same unit, occupancy of a time-share basis, or a condominium hotel as defined in Ordinance No. 1521 as such ordinance may be amended from time to time. SECTION 3. Section 5.25.075 is added to the Palm Springs Municipal Code to read: 5.25.076 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 rental that is in violation of any provision of Chapter 5.25 of this Code. (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. SECTION 4. The provisions of this Ordinance shall not apply to any person or entity who rents an apartment or portion thereof pursuant to a valid vacation rental certificate issued prior to April 15, 2016. SECTION 5. In the event any term or provision of this Ordinance is to any extent invalid or incapable of being enforced, such term or provision shall be excluded to the extent such invalidity, illegality, or unenforceability and all other terms and provisions shall remain in full force and effect. SECTION 6. 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 immediately and shall expire on July 31, 2016. Urgency Ordinance No. 1891 Page 4 PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 20th DAY OF APRIL, 2016. ROBERT MOON, MAYOR ATTEST: JAMES THOMPSON, CITY CLERK CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Urgency Ordinance No. 1891 is a full, true and correct copy, and was adopted at a regular meeting of the City Council held on the 20th day of April, 2016, by the following vote: AYES: Councilmember Foat, Councilmember Kors, Councilmember Roberts, Mayor Pro Tem Mills, and Mayor Moon. NOES: None. ABSENT: None. ABSTAIN: None. JAMES THOMPSON, CITY CLERK City of Palm Springs, California