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HomeMy WebLinkAbout3/5/2014 - STAFF REPORTS - 3.A. Ordinance No. AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING AND RESTATING CHAPTER 5.25 OF, AND AMENDING SECTION 1.06.030 OF, THE PALM SPRINGS MUNICIPAL CODE RELATING TO VACATION RENTALS City Attorney's Summary This Ordinance amends and restates in full the Cit Ys adopted Vacation Rental Ordinance. This Ordinance imposes additional restrictions on occupancy and use of vacation rental properties in Palm Springs and provides additional enforcement oversight. Section 1. Subsection (a) of Section 1 .06.030 of the Palm Springs Municipal Code is amended to read: (a) Whenever an Enforcement Officer charged with the enforcement of any provision of this Code determines that a violation of that provision has occurred, either by receiving a complaint or being witness to the violation, the Enforcement Officer has the authority to take the actions identified in this Section and issue an administrative citation to a responsible party for the violation, as provided herein, unless the violation is deemed to be an immediate threat to life and safety, at which time the matter shall be referred to the Building Official, Police Department, Fire Department, or other applicable agency, depending on the nature of the violation, for immediate action. A Public Safety Officer shall not be required to issue a pre-citation or courtesy notice as provided in Subsection (b) of this Section; however, a Public Safety Officer, in the discretion of such officer, may issue such courtesy notice. The City Manager may by administrative rule or regulation or by direction or order authorize an Enforcement Officer to issue an administrative citation without first complying with the pre-citation or courtesy notice requirements as otherwise required pursuant to Subsection (b) of this Section. Section 2. Chapter 5.25 of the Palm Springs Municipal Code is amended to read: Chapter 5.25 VACATION RENTALS 5.25.010 Title. This Chapter shall be referred to as the "Vacation Rental Ordinance." 5.25.020 Findings. The City Council finds and determines as follows: (a) The use of single- and multiple-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) The purpose of this Chapter is to establish regulations for such use of residential property thereby enabling the City to preserve the public health,safety, and welfare. (d) This Chapter is not intended to regulate hotels, motels, inns, time-share units, or non-vacation type rental arrangements including, but not limited to, lodging houses, rooming houses, convalescent homes, rest homes, halfway homes, or rehabilitation homes. 5.25.030 Definitions. For purposes of this Chapter, the following words and phrases shall have the meaning respectively ascribed to them by this Section: "Applicant" means the Owner or in the event the Vacation Rental unit is covered by an exclusive listing arrangement, the agent or representative of the Owner. "Bedroom" means an area of a Vacation Rental normally occupied and being heated or cooled by any equipment for human habitation, which is 100 square feet and greater in size, consists of four walls to the ceiling, at least one of which is located along an exterior wall with a window, and contains a built-in closet. "Exclusive listing arrangement" means a written agreement between an Owner and an agent or representative where the agent or representative has the sole and exclusive right to rent or lease a Vacation Rental unit to any person and the Owner is prohibited from renting or leasing the Vacation Rental unit except through the Owner's agent or representative. "Good cause" for the purposes of denial, suspension, revocation, imposition of conditions, placement on or removal from the Property Watch List, renewal, and reinstatement of a Vacation Rental Registration Certificate, means (1) the Applicant, Owner, the Owner's Agent, or the Local Contact Person has failed to comply with any of the terms, conditions, or provisions of this Chapter or any relevant provision of this Code, State law, or any rule or regulation promulgated thereunder; (2) the Applicant, Owner, Owner's Agent, or Local Contact Person has failed to comply with any special conditions that were placed upon the Vacation Rental Registration Certificate by the 2 1 P a g e City Manager; or (3) the Vacation Rental has been operated in a manner that adversely affects the public health or welfare or the safety of the immediate neighborhood in which the Vacation Rental is located. "Good Neighbor Brochure" means a document prepared by the City Manager in consultation with the office of neighborhood involvement and representatives of Owners that summarizes general rules of conduct, consideration, and respect, including without limitation provisions of the Palm Springs Municipal Code applicable to or expected of residents of the City. "Hotline" means the telephonic service operated by or for the City for the purpose of receiving complaints regarding the operation of any Vacation Rental and the forwarding of such complaints to the appropriate Local Contact Person. "Local contact person" means a local property manager, Owner or agent of the Owner, who is available twenty-four hours per day, seven days per week for the purpose of responding in-person within forty-five minutes to complaints regarding the condition, operation, or conduct of occupants of the Vacation Rental, or any agent of the Owner authorized by the Owner to take remedial action and who responds to any violation of this code. "Owner' means the person(s) or entity(ies) that hold(s) legal and/or equitable title to a Vacation Rental. "Property" means a residential legal lot of record on which a Vacation Rental is located. "Property Watch List" means one or more Vacation Rentals the City Manager has identified on the basis of good cause as properties that warrant a higher level of oversight, scrutiny, review, or monitoring. "Rental Term" means the period of time a Responsible Person rents or leases a Vacation Rental. "Responsible Person" means an occupant of a Vacation Rental who is at least twenty-five (25) years of age and who shall be legally responsible for compliance of all occupants of the unit and/or their guests with all provisions of this Chapter and/or this code. "Vacation Rental" means one or more residential dwellings, including either a single-family detached or multiple-family attached unit, or any portion of such a dwelling, 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 on a time-share basis, or a condominium 3 1 P a g e hotel as defined in Ordinance No. 1521 as such ordinance may be amended from time to time. "Vacation Rental Registration Certificate" or 'Registration Certificate" means an annual registration submitted to the City pursuant to this Chapter. 5.25.040 Registration Certificate Required. (a) No Owner of a Vacation Rental shall rent that unit for a period of twenty- eight consecutive days or less without a valid Vacation Rental Registration Certificate for a Vacation Rental pursuant to this Chapter for that unit. (b) The current Registration Certificate number issued by the City shall be displayed in a clear and legible manner on all advertising related to each Vacation Rental, including without limitation, web based advertising, print media, and television. 5.25.050 Agency. (a) An Owner may retain an agent or a representative to comply with the requirements of this Chapter, including, without limitation, the filing of a complete Vacation Rental registration, the management of the Vacation Rental unit or units, and the compliance with the requirements of this Chapter. Except as provided in Subsection (b) of this Section and notwithstanding any agency relationships between an Owner and an agent or representative, the Owner of the Vacation Rental unit or units shall remain responsible for compliance with the provisions of this Chapter and the failure of an agent to comply with this Chapter shall not relieve the Owner of the Owner's obligations under the provisions of this Chapter. (b) In the event an Owner enters into an exclusive listing arrangement, the Vacation Rental registration certificate may be secured, and the transient occupancy registration certificate requirements provided in this Chapter may be performed, by the agent or representative and not by the Owner. In addition, in the event an Owner enters into an exclusive listing arrangement, the Owner will not be required to secure a separate business license for the business of operating a Vacation Rental. 5.25.060 Vacation Rental Registration Requirements. (a) Prior to use of a property as a Vacation Rental, the applicant shall register the property as a Vacation Rental with the City annually on a registration form furnished by or acceptable to the City Manager and signed by the applicant under penalty of perjury. Each application shall contain the following information: (1) The name, address, and telephone number of the Owner of the unit for which the Vacation Rental registration certificate is to be issued. 41Page (2) The name, address, and telephone number of the agent, if any, of the Owner of the unit. (3) The name, address, and twenty-four-hour telephone number of the local contact person and verification that the Local Contact Person can respond in-person to the site of the Vacation Rental within forty-five (45) minutes. (4) The address of the residential property proposed to be used as a Vacation Rental. (5) The number of bedrooms and the applicable overnight and daytime occupancy limit of the unit consistent with the provisions of Section 5.25.070 (b). (6) Evidence of a valid business license issued by the City for the separate business of operating Vacation Rentals or submission of a certificate that Owner is exempt or otherwise not covered by the City's Business Tax Ordinance (Division II, Title 3 of the Palm Springs Municipal Code) for such activity. (7) Evidence of a valid transient occupancy registration certificate issued by the City for the Vacation Rental unit. (8) Acknowledgement of receipt and inspection of a copy of all regulations pertaining to the operation of a Vacation Rental. (9) Such other information as the City Manager deems reasonably necessary to administer this Chapter. (b) The registration of a Vacation Rental shall be accompanied by a fee established by resolution of the City Council, provided, however, the fee shall be no greater than necessary to defer the cost incurred by the City in administering the provisions of this Section. (c) A Vacation Rental registration certificate may be denied if a registration certificate for the same unit and issued to the same Owner has previously been revoked pursuant to Section 5.25.090. The denial of a registration certificate for any reason may be appealed in accordance with to the provisions of Chapter 2.50 of the Municipal Code. (d) Upon change of property Ownership, agent, or other material facts set forth in the annual registration, a new registration for a Vacation Rental shall be required to continue operation of the Vacation Rental and within fourteen days of said change the Owner or his or her agent shall submit the required registration and fee. 5.25.070 Operational requirements and standard conditions. 5 1 P a g e (a) The Owner shall use reasonably prudent business practices to ensure that the Vacation Rental unit complies with all applicable codes regarding fire, building and safety, health and safety, and all other relevant laws. (b) The Owner shall limit overnight occupancy of the Vacation Rental unit to a specific number of occupants, with the maximum number of overnight occupants as two persons within each Vacation Rental unit plus an amount that will not exceed two persons per bedroom within each Vacation Rental unit. The number of bedrooms in a Vacation Rental shall be verified by staff using County Assessor and/or City Building records, prior to the issuance of a certificate. The Owner shall also limit the total daytime occupancy of the Vacation Rental unit to a specific number of occupants not to exceed an amount determined by adding the total overnight occupants to a number equal to fifty percent of the overnight occupants; except that two daytime occupants shall be permitted in a studio unit or such other unit that does not contain a separate bedroom. The following chart is provided as an example of how this Section would be applied to specific situations: Number of Total of Additional Daytime Total Daytime Bedrooms Overnight Occupants Occupants Occupants 0 2 2 4 1 4 2 6 2 6 3 9 3 8 4 12 4 10 5 15 5 12 6 18 6 14 7 21 7 16 8 24 (c) During the Rental Term each Vacation Rental unit is rented, the Owner, his or her agent, and/or the local contact person designated by the Owner, shall be available twenty-four hours per day, seven days per week for the purpose of (1) responding by telephone within fifteen (15) minutes of complaints from or through the Hotline and (2) responding in-person within forty-five (45) minutes to any additional or successive complaints regarding the condition, operation, or conduct of occupants of the Vacation Rental. (d) The Owner shall use reasonably prudent business practices to ensure that the occupants and/or guests of the Vacation Rental unit do not create unreasonable noise 61Page or disturbances, engage in disorderly conduct, or violate provisions of the Municipal Code or any state law. (e) Notwithstanding the provisions of Section 11.74.043, any radio receiver, musical instrument, phonograph, loudspeaker, sound amplifier, or any machine or device for the producing or reproducing of any sound shall be conducted within a fully enclosed Vacation Rental unit and shall not be audible at the property line of the Vacation Rental (f) Prior to occupancy pursuant to each separate occasion of rental of a Vacation Rental, the Owner or the Owner's agent or representative shall enter into a written rental agreement with a Responsible Person where (1) the Responsible Person will provide the Responsible Person's name, age, address, and a copy of a government issued identification; (2) establishes and sets out the terms and conditions of the rental agreement, including without limitation occupancy limits, noise prohibitions, and vehicle parking requirements; (3) requires the Responsible Person to acknowledge and agree that he or she is legally responsible for compliance of all occupants of the Vacation Rental or their guests with all provisions of this Chapter and/or the Municipal Code; (4) the Owner or the Owner's Agent provides a copy of the "Good Neighbor Brochure" to the Responsible Person; and (5) the Responsible Person provides a list of all guests by name; and (6) the Responsible Person provides a list of all guests' vehicles, including license plate numbers. Each rental agreement shall be maintained by the Owner or the Owner's Agent for a minimum of four (4) years and shall be readily available for inspection upon request of the City Manager. (g) The Owner, or his or her agent, shall, upon notification that the responsible person, including any occupant and/or guest of the Vacation Rental unit, has created unreasonable noise or disturbances, engaged in disorderly conduct, or committed violations of provisions of the Municipal Code or any state law, shall promptly respond in a timely and appropriate manner to prevent a recurrence of such conduct by those occupants or guests. For the purpose of this Subsection and Subsection (h) below, the phrase "in a timely and appropriate manner" shall mean each of the following three components: i. the use of reasonably prudent business practices to contact the Responsible Person within fifteen (15) minutes by telephone for a first incident reported from the Hotline; ii. in-person contact within forty-five (45) minutes for a first call from the Hotline if contact with the Responsible Person is not made by telephone and for each subsequent or successive incident during a Rental Term; iii. report back to the Hotline of the disposition and handling of the reported incident within forty-five minutes of each call from the Hotline. 7 1 P a g e (h) Failure of the Owner or his or her agent to respond to calls or complaints regarding the condition, operation, or conduct of occupants of the Vacation Rental in a timely and appropriate manner shall be grounds for imposition of penalties as set forth in this Chapter. It is not intended that an Owner, agent, or local contact person act as a peace officer or place himself or herself in an at-risk situation. (i) Trash and refuse shall not be left stored within public view, except in proper containers for the purpose of collection by the collectors and between the hours of five a.m. and eight p.m. on scheduled trash collection days. The Owner of the Vacation Rental unit shall use reasonably prudent business practices to ensure compliance with all the provisions of Chapter 6.04 of the Municipal Code (Waste Disposal and Diversion), and shall provide "walk-in service" or as may otherwise be approved by the City Manager. 0) The Owner of the Vacation Rental unit shall post a copy of the Registration Certificate and a copy of the conditions set forth in this Section in a conspicuous place within the unit. (k) The Owner shall provide each occupant of a Vacation Rental with the following information prior to occupancy of the unit and/or post such information in a conspicuous place within the unit: (1) The name of the managing agency, agent, rental manager, local contact person, or Owner of the unit, and a telephone number at which that party may be reached on a twenty-four-hour basis; (2) The maximum number of overnight occupants and the maximum number of daytime occupants permitted to stay in the unit; (3) The trash pick-up day and applicable rules and regulations pertaining to leaving or storing trash or refuse on the exterior of the property; (4) Notification that the amplification of music outside of the dwelling unit or otherwise audible at the property line is a violation of this Chapter; (5) Notification that the occupant may be cited or fined by the City and/or immediately evicted by the Owner pursuant to state law, in addition to any other remedies available at law, for creating a disturbance or for violating other provisions of this Chapter; (6) Notification that failure to conform to the occupancy requirements of the Vacation Rental unit is a violation of this Chapter; (7) A copy of this Chapter of the Palm Springs Municipal Code, as may be amended from time to time. 8 1 P a g e (1) The use of a Vacation Rental unit shall not violate any applicable conditions, covenants, or other restrictions on real property. (m) The Owner shall comply with all provisions of Chapter 3.24 of the Municipal Code concerning transient occupancy taxes, including, but not limited to, submission of a monthly return in accordance with Section 3.24.080. The monthly return shall be filed each month regardless of whether the Vacation Rental unit was rented or not during each such month. (n) The City Manager shall have the authority to impose additional standard conditions, applicable to all Vacation Rental units, as necessary, to achieve the objectives of this Chapter. A list of all such additional standard conditions shall be maintained and on file in the office of the City Clerk and such offices as the City Manager designates. (o) Notwithstanding the provisions of Subsection (n) above, upon a determination of good cause, the City Manager may impose additional or special standards or requirements for(1) the determination or placement of properties on the Property Watch List; (2) placement or imposition of special conditions or performance standards for Owners, Owner's Agents, Local Contact Persons, and their affected Vacation Rentals on the Property Watch List; and (3) and removal of a Vacation Rental from the Property Watch List. (p) The standard conditions may be modified by the City Manager upon request of the Owner or his or her agent based on site-specific circumstances for the purpose of allowing reasonable accommodation of a Vacation Rental. All requests must be in writing and shall identify how the strict application of the standard conditions creates an unreasonable hardship to a property such that, if the requirement is not modified, reasonable use of the property for a Vacation Rental would not be allowed. Any hardships identified must relate to physical constraints to the subject site and shall not be self-induced or economic. Any modifications of to the standard conditions shall not further exacerbate an already existing problem. (q) The City Manager shall have the authority to establish administrative rules and regulations consistent with the provisions of this Chapter for the purpose of interpreting, clarifying, carrying out, furthering, and enforcing the requirements and the provisions of this Chapter. A copy of such administrative rules and regulations shall be on file in the Office of the City Clerk. 9 1 P a g e 5.25.080 Audit. Each Owner and agent or representative of any Owner shall provide access to each Vacation Rental and any records related to the use and occupancy of the Vacation Rental to the City Manager at any time during normal business hours, for the purpose of inspection or audit to determine that the objectives and conditions of this Chapter are being fulfilled. 5.25.090 Violations. (a) Any person who uses, or allows the use of, residential property in violation of the provisions in this Chapter is guilty of a misdemeanor for each day in which such residential property is used, or allowed to be used, in violation of this Chapter. Violations are punishable pursuant to Sections 1.01.140 and 1.01.150 and the administrative citation provisions of Chapter 1.06 of the Municipal Code, except that the fine for a first violation shall be two hundred fifty dollars and each subsequent violation shall be five hundred dollars. (b) Notwithstanding the provisions of Chapter 1.06, any citation or pre-citation or courtesy notice issued for violations specified in this Section may provide for a reasonable compliance date or time of less than fifteen calendar days but at least thirty minutes from the date or the time the citation or pre-citation notice is given if, due to the nature of the violation, a shorter compliance period is necessary or appropriate, as determined in the reasonable judgment of the city official issuing the citation or notice. (c) Upon the fourth or subsequent violation in any twenty-four month period, the City Manager may suspend or revoke the Vacation Rental registration certificate for a Vacation Rental unit. The appeal and hearing provisions of Chapter 1.06 shall apply to any revocation or suspension of a permit. (d) Any person who fails to timely register a Vacation Rental or pay any fee or charge provided in this Chapter within the time required, shall pay a penalty in the amounts established by the City Council by resolution. Such penalty may also include interest from the date on which the fee or charge became due and payable to the City until the date of payment. (e) The remedies provided for in this Section are in addition to, and not in lieu of, all other legal remedies, criminal or civil, which may be pursued by the City to address any violation of this code or other public nuisance. 5.25.100 Requirements not exclusive. The requirements of this Chapter shall be in addition to any license, permit, or fee required under any other provision of this Code. The issuance of any permit pursuant to this Chapter shall not relieve any person of the obligation to comply with all 101Page other provisions of this Code pertaining to the use and occupancy of Vacation Rental or the property on which it is located. Section 3. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law and this Ordinance shall take effect thirty (30) days after passage. The provisions of this Ordinance that require a person entering into a vacation rental agreement to be 25 years of age or older shall not apply to any occupancy of a vacation rental for which a vacation rental agreement was fully executed and enforceable on or before March 5, 2014. PASSED AND ADOPTED at a regular meeting of the City Council on the _day of 2014, by the following vote: AYES: NAYS: ABSENT: ABSTAIN: Stephen P. Pougnet Mayor ATTEST: James Thompson City Clerk III Page ;OF Q ALMS.* iy c+ V N R x cpbo nS C o P. 441F004 CITY COUNCIL STAFF REPORT DATE: MARCH 5, 2014 LEGISLATIVE SUBJECT: PROPOSED ORDINANCE AMENDING CHAPTER 5.25 OF THE PALM SPRINGS MUNICIPAL CODE REGARDING VACATION RENTAL REGULATIONS AND RELATED ADMINISTRATIVE CITATION PROCEDURES. FROM: David H. Ready, City Manager BY: Chief of Staff/City Clerk SUMMARY The City Council will consider the introduction of an ordinance pertaining to vacation rental regulations as discussed on February 5, 2014. RECOMMENDATION: 1. Waive the reading of the ordinance text in its entirety and introduce by title only Ordinance No. , "AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING AND RESTATING CHAPTER 5.25 OF, AND AMENDING SECTION 1.06.030 OF, THE PALM SPRINGS MUNICIPAL CODE RELATING TO VACATION RENTALS." 2. Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, INCREASING THE FEES AND CHARGES FOR VACATION RENTALS, AND MODIFYING THE COMPREHENSIVE FEE SCHEDULE ADOPTED BY RESOLUTION NO. 21578 AS AMENDED." 3. Direct staff to place a review on the vacation rental regulations on the City Council agenda for November 19, 2014. STAFF ANALYSIS: At the meeting of February 5, 2014, after extensive review of the vacation rental regulations by PSNIC and vacation rental operators and stakeholders, the City Council directed staff to prepare and ordinance to amend the regulations and the regulatory fees charged for vacation rental permits. ITEM NO. � City Council Staff Report March 5, 2014 -- Page 2 Vacation Rental Regulations The City Attorney has prepared an ordinance for introduction by the City Council that provides for the following amendments to the vacation rental regulations. 1. Minimum age of a renter ("Responsible Party") is changed from 18 to 25 years old. 2. Every rental requires a written contract that must be maintained by the vacation rental owner for a minimum of four years, contain specified information, and shall be made available to the City for inspection. 3. The definition of "local contact person" is amended to require the local contact person be physically located and capable of responding in-person at the vacation rental property within 45-minutes. The address/distance of the local contact person will be verified by staff prior to the issuance of a permit. 4. The requirement has been changed for a local contact person to endeavor to make telephone contact for the first hotline call by telephone within 15 minutes, and resolve the call including the call-back to the hotline within 45 minutes. 5. A second complaint to the hotline within a Rental Period requires the personal contact with the responsible party, at the site, by the local contact person. 6. The concept of a Property Watch List has been added to the code, Additional conditions may be implemented on the Property Watch List, that may require a higher level of oversight or monitoring. 7. Waste Collection service is required and clarified as "walk in service." In processing an application, the owner must submit verification of waste collection service to staff prior to the issuance of the permit. 8. The insurance requirement has been deleted. 9. The noticing requirement has been deleted. All vacation rental registration information is public information, and the City will provide such information to PSNIC on a monthly basis. 10. A definition of a bedroom has been added. The number of bedrooms is verified by staff using County Assessor and/or City Building records, prior to the issuance of a permit. 11. A requirement that all advertising for the vacation rental must include the Palm Springs permit number including the "PS" in the permit number. 12. The reporting requirement of a responsible party involved in three or more disturbances has been deleted. Z City Council Staff Report March 5, 2014 -- Page 3 Vacation Rental Regulations 13. The definition of amplified musiclsound has been clarified. 14. The administrative citation section of the Code has been amended to allow an Enforcement Officer to issue an administrative citation (fine citation as opposed to a pre-citation courtesy notice) on the first violation with approval of the City Manager or designee. Additionally, a resolution has been prepared to amend the Comprehensive Fee Schedule to $200 per year for a vacation rental registration and renewal certificate. Upon adoption staff will be preparing a mailing to all permitted vacation rentals of the change in the requirements, along with a new certificate that must be posted in the unit with information regarding policies and regulations including occupancy limits. FISCAL IMPACT: The increase in vacation rental permit and renewal fee to $200 per year will raise approximately $275,000 in revenue which will off-set the estimated annual cost to the City for the regulatory program. MES THOMPSON DAVID H. READY Chief of Staff/City Clerk City Manager Ordinance Approved: DOUGLAS C. HOLLAND City Attorney Attachments: Redline Amendments Proposed Ordinance Proposed Resolution Fee Justification Feb. 5, 2014 Staff Report 3 AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA AMENDING AND RESTATING CHAPTER 5.25 OF,AND AMENDING SECTION 1.06.030 OF,THE PALM SPRINGS MUNICIPAL CODE RELATING TO VACATION RENTALS Section 1. SubseetienSection(a)of Section 1.06.030 of the Palm Springs Municipal Code is amended to read: (a) Whenever an eEnforcement Oefficer charged with the enforcement of any provision of this eCode determines that a violation of that provision has occurred,either by receiving a complaint or being witness to the violation,the eEnforcement eOfficer has the authority to take the actions identified in this seetienSection,and issue an administrative citation to a responsible party for the violation,as provided herein,unless the violation is deemed to be an immediate threat to life and safety,at which time the matter shall he referred to the bBuilding Oefficial, Ppolice Ddepartment,F€re Ddeparhnent,or other applicable agency,depending on the nature of the violation, for immediate action.A pPublic Ssafety Oefficer shall not be required to issue a pre-citation or courtesy notice as provided in subseegenSection(b)of this seetienSection; however,a pPublic Ssafety Oefficer,in the discretion of such officer,may issue such courtesy notice.The City Manager may by administrative rule or regulation or by direction or order authorize an Enforcement Officer to issue an administrative citation without first complying with the pre-citation or courtesy notice requirements as otherwise required pursuant to Subsection(b) of this Section. Section 2. Chapter 5.25 of the Palm Springs Municipal Code is amended to read: Chapter 5.25 VACATION RENTALS 5.25.010 Title. This eChapter shall be referred to as the"Vacation Rental Ordinance."( -"�^.a-17 4 8 j r 20W 5.25.020 Findings. —The City Council finds and determines as follows: (a) The use of single-and multiple-family dwelling units for vaeaiiea-rente]Vacation Rental lodging purposes provides alternate visitor serving lodging opportunities in the eifyCity; 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 vaeafien-remalVacation Rental lodging will provide an administrative procedure to preserve existing visitor serving opportunities and increase and enhance public access to areas of the eityC ty and other visitor destinations. 4 (c) The purpose of this ehapterChapter is to establish regulations for such use of residential property thereby enabling the eityCity to preserve the public health,safety,and welfare. (d) This eMpwChapter 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.(04 P48 § 1,2008) 5.25.030 Definitions. For purposes of this ehapwChglAer,the following words and phrases shall have the meaning respectively ascribed to them by this seetienS cation: "Applicant"means the eweerOwner or in the event the vaeatien-re *Vacation Rental unit is covered by an exclusive listing arrangement,the agent or representative of the ewwerOwner. "Bedroom"means an area of a Vacation Rental normally occupied and being heated or cooled by equipment for human habitation.which is 100 seuare feet and greater in size, consists of four walls to the ceiling,at least one of which is located along an exterior wall with a window,and contains a built-in closet. "City _ g means that pefsen _..in the.. _ of the e . _.W ty dealt with in Ord 1845 "Exclusive listing arrangement"means a written agreement between an ewaeeOwner and an agent or representative where the agent or representative has the sole and exclusive right to rent or lease a vaeatien-renta}Vacafion Rental unit to any person and the ewaerOwner is prohibited from renting or leasing the veeatien-reatalVacation Rental unit except through the ewaerOwner's agent or representative. "Good cause"for the purposes of denial.suspension,revocation, imposition of conditions,placement on or removal from the Property Watch List,renewal,and reinstatement of a Vacation Rental Registration Certificate.means(1)the Applicant.Owner.the Owner's Agent, or the Local Contact Person has failed to comply with any of the terms,conditions,or provisions of this Chapter or any relevant provision of this Code.State law,or any rule or regulation tLromulgated thereunder,(2)the Applicant.Owner,Owners Agent.or Local Contact Person has ' failed to comply with any special conditions that were placed upon the Vacation Rental Registration Certificate by the City Manager:or(3)the Vacation Rental has been operated in a manner that adversely affects the public health or welfare or the safety of the immediate neighborhood in which the Vacation Rental is located. "Good Nneighbor Bbrochure"means a document prepared by the eky-neeageCjty Manager in consultation with the office of neighborhood involvement and representatives of ewnerOwners that summarizes general rules of conduct,consideration,and respect,including 5 without limitation provisions of the Palm Springs Municipal Code;thete applicable to or expected of residents of the ekyCity. "Hotline"means the telephonic service operated by or for the City for the purpose of receiving complaints regarding the operation of any Vacation Rental and the forwarding of such complaints to the appropriate Local Contact Person. "Local contact person"means a local property manager,ewnerOwner or agent of the wwHeFOwner,who is available twenty-four hours per day,seven days per week for the purpose of responding in-person within forty-five minutes to complaints regarding the condition, operation,or conduct of occupants of the vaeatien-rentaiNaeation Rental,or any agent of the ewaeOwner authorized by the evam Owner to take remedial action and who responds to any violation of this code. "Owner"means the person(s)or entity(ies)that hold(s)legal and/or equitable title to a vaeafien-renta{Vaeation Rental. "Property"means a residential legal lot of record on which a veeafien-mntaFVacation Rental is located. "Property Watch List"means one or more Vacation Rentals the City Manager has identified on the basis of good cause as properties that warrant a higher level of oversight. scrutiny,review,or monitorina. "Rental Term"means the period of time a Responsible Person rents or leases a Vacation Rental. "Responsible Pperson"means an occupant of a vaeatiex-reRWVacation Rental who is at least eighteen twenty-five(251 years of age and who shall be legally responsible for compliance of all occupants of the unit and/or their guests with all provisions of this ehaptetCha ter and/or this code. "Vacation Rrental"means one or more residential dwellings,including either a single- family detached or multiple-family attached unit,or any portion of such a dwelling,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 on a time-share basis,or a condominium hotel as defined in Ordinance No. 1521 as such ordinance may be amended from time to time. "Vacation Reental Rregistration Ceertificate"or"Registration Certificate"means an annual registration submitted to the eityCity pursuant to this ehepterChapter.i( -a^ r, 20W4 5.25.040 Registration Ceertificate eRequired. 6 (a) No evAmOwner of a veeatien-rextalVacation Rental shall rent that unit for a period of twenty-eight consecutive days or less without a valid vaeaitex-reHWVacation Rental Rregistration Ceertificate for a vaeatiee-reatalVacation Rental pursuant to this ahapterChanter for that unit. (b) The current Registration Certificate number issued by the City shall be displayed in a clear and legible manner on all advertising related to each Vacation Rental,including without limitation,web based advertising,print media,and television. 5.25.050 Agency. (a) An ewxerOwner may retain an agent or a representative to comply with the requirements of this ehapteWbUter,including,without limitation,the filing of a complete vaeatiee feata'Vacation Rental registration,the management of the vaeetien-rentalVacation Rental unit or units,and the compliance with the requirements of this ehapteWhaoter.Except as provided in subseetioMection(b)of this seetieeSection and notwithstanding any agency relationships between an ewneeOwner and an agent or representative,the ewnerOwner of the vaeatiee fenWVacation Rental unit or units shall remain responsible for compliance with the provisions of this ehapterChapter and the failure of an agent to comply with this ehapterChaoter shall not relieve the ewnerOwner of the ewnerOwner's obligations under the provisions of this ehaptefChapter. (b) In the event an ewnerOwner enters into an exclusive listing arrangement,the vaeatien fentalVacation Rental registration certificate may be secured,and the transient occupancy registration certificate requirements provided in this ehapteWhapter may be performed,by the agent or representative and not by the ewaenOwner.In addition,in the event an ewnefOwner enters into an exclusive listing arrangement,the ewaerOwner will not be required to secure a separate business license for the business of operating a vaeatien-ro"Vacation Rental.(Ord. 17 4 8 § 1,2008 5.25.060 Vacation Rfental Rregistration Rrequirements. (a) Prior to use of a property as a vaeatiep-rextalVacation Rental,the applicant shall register the property as a veeatien-rentelVacation Rental with the eityCity annually on a registration form furnished by or acceptable to the eiEy-rneaagerCity Manager and signed by the applicant under penalty of perjury.Each application shall contain the following information: (1) The name,address,and telephone number of the ewnefOwner of the unit for which the vaeetien-reata}Vacation Rental registration certificate is to be issued. (2) The name,address,and telephone number of the agent, if any,of the ewnefowner of the unit. (3) The name,address,and twenty-four-hour telephone number of the local contact person and verification that the Local Contact Person can respond in-person to the site of the Vacation Rental within forty-five(45)minutes. 7 (4) The address of the residential property proposed to be used as a vesetien-rentalVacation Rental. (5) The number of bedrooms and the applicable overnight and daytime occupancy limit of the unit consistent with the provisions of Section 5.25.070(b). (6) Evidence of a valid business license issued by the eitycity for the separate business of operating vaeatien+enWVacation Rentals or submission of a certificate that ownerOwner is exempt or otherwise not covered by the eityCity's Business Tax Ordinance(Division 11,Title 3 of the Palm Springs Municipal Code)for such activity. (7) Evidence of a valid transient occupancy registration certificate issued by the eityCC for the vaeerien-rentalVacation Rental unit. (8) Acknowledgement of receipt and inspection of a copy of all regulations pertaining to the operation of a vaeatien-rentalVacation Rental. (9) Such other information as the eity-menegerCity Manager deems reasonably necessary to administer this ehapterChaoter. (b) The registration of a vaeetien-rentelVacation Rental shall be accompanied by a fee established by resolution of the eCity Ceouncil,provided,however,the fee shall be no greater than necessary to defer the cost incurred by the eityCi�t+in administering the provisions of this seetienSection. (c) The NgiStFgAi «,.a a.,,ggti,.« FAMAIVacationRental geA ..al I:..L:I L..:«....« «the..«.....« ..F one....:Ili- della ..eom-hined single Cfn:♦and..n .all elavms an reatalVacation Rental- (d) A vaea6en+enW4Vacation Rental registration certificate may be denied if a registration certificate for the same unit and issued to the same ewmerOwner has previously been revoked pursuant to Section 5.25.090.The denial of a registration certificate for any reason may be appealed in accordance with to the provisions of Chapter 2.50 of the Municipal Code. (ed) Upon change of property eweetOwnership,agent,or other material facts set forth in the annual registration,a new registration for a vaeatien-reatalVacation Rental shall be required to continue operation of the vaeatien-FeaW acation Rental and within fourteen days of said change the ewnerOwner or his or her agent shall submit the required registration and fee.(Ofd��r, 20W 5.25.070 Operational requirements and standard conditions. a (a) The ewnerOwner shall use reasonably prudent business practices to ensure that the vaeagen-reatalVacation Rental unit complies with all applicable codes regarding fire,building and safety,health and safety,and all other relevant laws. (b) The owp"Owner shall limit overnight occupancy of the vaeatien-rentelVacation Rental unit to a specific number of occupants,with the maximum number of overnight occupants as two persons within each vaeatien-renWVacation Rental unit plus an amount that will not exceed two persons per bedroom within each vaeatien-rentalVacation Rental unit.The number of bedrooms in a Vacation Rental shall be verified by staff using Countv Assessor and/or City Building records,prior to the issuance of a certificate.The owneFOwner shall also limit the total daytime occupancy of the vaeatiex-rentalVacation Rental unit to a specific number of occupants not to exceed an amount determined by adding the total overnight occupants to a number equal to fifty percent of the overnight occupants;except that two daytime occupants shall be permitted in a studio unit or such other unit that does not contain a separate bedroom.The following chart is provided as an example of how this seetieaSection would be applied to specific situations: E Total of Overnight Additional Daytime Total Daytime Occupants Occupants Occupants 2 2 4 4 2 6 6 3 9 8 4 12 4 10 5 15 5 12 6 18 6 14 7 21 7 16 8 24 (c) Dw4ig-During the Rental TennO*4eFm each s aeatien-reatalVacation Rental unit is rented,the oweerOwner,his or her agent,and/or the local contact person designated by the ewneFOwner,shall be available twenty-four hours per day,seven days per week for the purpose of f]]_responding by telephone within fifteen(15)minutes of complaints from or through the Hotline and(2)responding in-person within forty-five 45 minutes to any additional or successive complaints regarding the condition,operation,or conduct of occupants of the vaeetlen re"Vacation Rental.: (d) The ewaetOwner shall use reasonably prudent business practices to ensure that the occupants and/or guests of the vaeatiep-FentalVacation Rental unit do not create unreasonable noise or disturbances,engage in disorderly conduct,or violate provisions of the Municipal Code or any state law. (e) Notwithstanding the provisions of Section 11.74.043,any radio receiver,musical instrument,phonograph,loudspeaker,sound amplifier,or any machine or device for the producing or reproducing of any sound shall be conducted within a fullvn enclosed vaeatiee renWVacation Rental unit and shall not be audible at the vroperty line of the Vacation Rental- (f) Prior to occupancy pursuant to each separate occasion of rental of a vaeetien refkWVacation Rental the eweer9wner or the ewnerOwner's agent or representative shall enter into a written rental agreement with a Responsible Person where(1)the Responsible Person will rp ovide�4}ebEairv_the Responsible Person's name,age,address,and a copy of a government issued identification" "^-^^-AUFAh-F of the Fesp asible pem (2)establishes and sets out the terms and conditions of the rental agreement,including without limitation occupancy limits,noise prohibitions,and vehicle parking requirements;(3)requires the Responsible Person to acknowledge and agree that he or she is legate responsible for compliance of all occupants of the Vacation Rental or their guests with all provisions of this Chapter and/or the Municipal Code:(4) the Owner or the Owner's Agent provides a copy of the g"Good eNeighbor bBrochure"to the Rresponsible meson;and(35)the Responsible Person provides a list of all guests by name;and(6)the Responsible Person provides a list of all guests' vehicles,including license plate numbers. Each rental agreement shall be maintained by the Owner or the Owner's Agent for a minimum of four(4)years and vaeatiea-rente}Vacation Rental haoter-der the MHniaipal Code.This infa�atian shall be readily available for inspection upon request of the City Manager.an) ,.fief afthe ei:y ivsp __ible f-the enf feeme e fthi-�haoter (g) The eweerOwner,or his or her agent,shall,upon notification that the responsible person, including any occupant and/or guest of the vaeaEiee-ceeta}Vacation Rental unit,has created unreasonable noise or disturbances,engaged in disorderly conduct,or committed violations of provisions of the Municipal Code or any state law,shall promptly respond in a timely and appropriate manner to prevent a recurrence of such conduct by those occupants or guests.For the Purpose of this Subsection and Subsection(h)below,the phrase"in a timely and appropriate manner"shall mean each of the following three components: i. the use of reasonably prudent business practices to contact the Responsible Person within fifteen(15)minutes by telephone for a first incident reported from the Hotline; ii. in-person contact within forty-five(45)minutes for a first call from the Hotline if contact with the Responsible Person is not made by telephone and for each subsequent or successive incident during a Rental Term; iii. report back to the Hotline of the disposition and handling of the reported incident within forty-five minutes of each call from the Hotline. 10 h�Failure of the ewxerOwner or his or her agent to respond to calls or complaints regarding the condition,operation,or conduct of occupants of the vaeatien-rentalVacation Rental in a timely and appropriate manner shall be grounds for imposition of penalties as set forth in this ehapwrChanter.It is not intended that an ewnerOwner,agent,or local contact person act as a peace officer or place himself or herself in an at-risk situation.The-ewwerOwne-,--his of hof`-- agent;shall repei4 the name, date,ii&id time of diswFbanee of eaeh fespet - I . I Section4&4he-eity-rnenagerCC Manager- (hi) Trash and refuse shall not be left stored within public view,except in proper containers for the purpose of collection by the collectors and between the hours of five a.m.and eight p.m. on scheduled trash collection days.The ewnerOwner of the veeatiea-PentalVacation Rental unit shall use reasonably prudent business practices to ensure compliance with all the provisions of Chapter 6.04 of the Municipal Code(Waste Disposal and Diversion),and shall provide"walk-in service" r as may otherwise be approved by the eCity Mrnanager. (ij) The ewnerOwner of the vaeatien ren Vacation Rental unit shall post a copy of the pemiitR is[ration Certificate and a copy of the conditions set forth in this seeEienSection in a conspicuous place within the unit. (}k) The e-h a weer shall provide each occupant of a veeatien-rentalVacation Rental with the following information prior to occupancy of the unit and/or post such information in a conspicuous place within the unit: (1) The name of the managing agency,agent,rental manager,local contact person,or ewnerOwner of the unit,and a telephone number at which that party may he reached on a twenty-four-hour basis; (2) The maximum number of overnight occupants and the maximum number of daytime occupants permitted to stay in the unit; (3) The trash pick-up day and applicable rules and regulations pertaining to leaving or storing trash or refuse on the exterior of the property; (4) Notification that the amplification of music outside of the dwelling unit or otherwise audible at the property line is a violation of this ehapterChanter; (5) Notification that the occupant may be cited or fined by the ekyCity and/or immediately evicted by the ewnerOwner pursuant to state law,in addition to any other remedies available at law,for creating a disturbance or for violating other provisions of this ehapterCha er; (6) Notification that failure to conform to the occupancy requirements of the veeatien FoRWVacation Rental unit is a violation of this ehepterChapter; 11 (7) A copy of this ekapteeChapter of the Palm Springs Municipal Code,as may be amended from time to time. (#, The use of a vaeatien-re"Vacation Rental unit shall not violate any applicable conditions,covenants,or other restrictions on real property. (lm The ewnetOwner shall comply with all provisions of Chapter 3.24 of the Municipal Code conceming transient occupancy taxes, including,but not limited to,submission of a monthly return in accordance with Section 3.24.080.The monthly return shall be filed each month regardless of whether the vaeatien-reatalVacation Rental unit was rented or not during each such month. \..y ..,,yarn ... ..... ................n,.,l .y.6.,><... , (5)shall he of delivered to all__.pert. ey_.._...hay_en the ..feaeh d..,.1'.... - :thin,L-..,. u.+,vyuu....w w u �.�uooeao.nem.wp m ., .yy. ..... he provided u.. IevA .ally O ithill f..wee« day S Of an .1....ge (n) The e45,managafCity Manager shall have the authority to impose additional standard conditions,applicable to all vaeatien-reriWVacation Rental units,as necessary,to achieve the objectives of this ahapterChaoter.A list of all such additional standard conditions shall be maintained and on file in the office of the eity-eler#City Clerk and such offices as the eity nwAagetCity Manager designates. (o)Notwithstanding the provisions of Subsection(n)above,upon a determination of good cause. the City Manager may impose additional or special standards or requirements for(1)the determination or placement of properties on the Property Watch List:(2)placement or imposition of special conditions or performance standards for Owners.Owner's Agents,Local Contact Persons,and their affected Vacation Rentals on the Property Watch List:and(3)and removal of a Vacation Rental from the Pronertv Watch List. (ep) The standard conditions may be modified by the city rneaegerCity Manager upon request of the ewneFOwner or his or her agent based on site-specific circumstances for the purpose of allowing reasonable accommodation of a vaeetien-rea lVacation Rental.All requests must be in writing and shall identify how the strict application of the standard conditions creates an unreasonable hardship to a property such that,if the requirement is not modified,reasonable use of the property for a veeetien-renWVacation Rental would not be allowed.Any hardships identified must relate to physical constraints to the subject site and shall not be self-induced or economic.Any modifications of to the standard conditions shall not further exacerbate an already existing problem. (a) The City Manager shall have the authority to establish administrative rules and regulations consistent with the provisions of this Chapter for the p!r Jose of interpreting. 12 clarifying.car-ving out,furthering,and enforcing the requirements and the provisions of this Chapter. A copy of such administrative rules and regulations shall be on file in the Office of the City Clerk. 5,25,080 Audit. Each ewnerOwner and agent or representative of any ewnefQwner shall provide access to each vaeatien-renta4Vacation Rental and any records related to the use and occupancy of the vaeatiea-reatalVacation Rental to the eity-maxageeCity Manager at any time during normal business hours, for the purpose of inspection or audit to determine that the objectives and conditions of this ehapterChaoter are being fulfilled. 5.25.090 Violations. (a) Any person who uses,or allows the use of,residential property in violation of the provisions in this ehaptetChapter is guilty of a misdemeanor for each day in which such residential property is used,or allowed to be used,in violation of this ehepferChWter.Violations are punishable pursuant to Sections 1.01.140 and 1.01.150 and the administrative citation provisions of Chapter 1.06 of the Municipal Code,except that the fine for a first violation shall be two hundred fifty dollars and each subsequent violation shall be five hundred dollars. (b) Notwithstanding the provisions of Chapter 1.06,any citation or-pre-citation or courtesy notice issued for violations specified in this seetieaSection may provide for a reasonable compliance date or time of less than fifteen calendar days but at least thirty minutes from the date or the time the citation or pre-citation notice is given if,due to the nature of the violation,a shorter compliance period is necessary or appropriate,as determined in the reasonable judgment of the city official issuing die-the citation or notice. (c) Upon the fourth or subsequent violation in any twenty-four month period,the eity managerCity Manager may suspend or revoke the venation-restalVacation Rental registration certificate for a vaeefien mrAe}Vacation Rental unit.The appeal and hearing provisions of Chapter 1.06 shall apply to any revocation or suspension of a permit. (d) Any person who fails to timely register a Vacation Rental or pay any fee or charge provided in this Chapter within the time required,shall pay a penalty in the amounts established by the City Council by resolution. Such penalty may also include interest from the date on which the fee or charge became due and payable to the City until the date of pavment (de) The remedies provided for in this seetieeSection are in addition to,and not in lieu of,all other legal remedies,criminal or civil,which maybe pursued by the eityCity to address any violation of this code or other public nuisance.'^-a. 1( 1 7A 08) 5.25.100 Requirements not exclusive. The requirements of this ehaptetChnter shall be in addition to any license,permit,or fee required under any other provision of this Ceode.The issuance of any permit pursuant to this 13 ehapteFChaoter shall not relieve any person of the obligation to comply with all other provisions of this Ceode pertaining to the use and occupancy of atheA aea4ea-reaWV acation Rental unit or the property on which it is located. 14 RESOLUTION NO A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, INCREASING THE FEES AND CHARGES FOR VACATION RENTALS, AND MODIFYING THE COMPREHENSIVE FEE SCHEDULE ADOPTED BY RESOLUTION NO. 21578 AS AMENDED. WHEREAS, the City Council enacted Palm Springs Municipal Code Chapter 5.25 providing for the regulation and registration of Vacation Rentals; and WHEREAS, the City Council adopted Resolution No. 22388 establishing Vacation Rental Registration and Renewal Fees; and WHEREAS, the City, under various statutory provisions under the California Government Code, may set and collect fees for the cost of providing various public services to the community; and WHEREAS, the City Council desires to update the Vacation Rental Registration and Renewals fees and modify the amount of the fee. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: SECTION 1. FINDINGS. a. City staff has completed an analysis of the fees for the Vacation Rental regulatory program. b. There is a reasonable relationship between the amount of the fee and the estimated reasonable cost of providing the type of service for which the fee is imposed. C. The fee does not exceed the estimated reasonable cost of providing the service for which the fee is charged. SECTION 2. FEES IMPOSED. a. The City Council adopts and imposes Vacation Rental registration certificate and a Vacation Rental renewal certificate fee for all Vacation Rentals defined by Chapter 5.25 of the Palm Springs Municipal Code at $200.00 per year. b. On July 1st of each year, commencing on July 1, 2015, the fee and charge shall be automatically adjusted by an amount equal to the percentage of increase or decrease in the Consumer Price Index for this region, as last computed for the previous twelve (12) months, to reflect the cost-of-living changes to ensure that changing economic conditions do not impair the real value of the fees and charges. 15 Resolution No. _ Page 2 SECTION 3. SEVERABILITY. Each component of the fees and all portions of this Resolution are severable. Should any individual component of the fee or other provision of this Resolution be adjudged to as invalid, the remaining provisions shall be fully effective, and the fee shall be fully effective except as to that portion that has been judged to be invalid. SECTION 4. EFFECTIVE DATE. The fees imposed by Section 2(a) of this Resolution shall be effective with new and renewal Vacation Rental registration certificates on or after April 1, 2014. SECTION 5. COMPREHENSIVE FEE SCHEDULE. The City Clerk is hereby authorized and directed to incorporate said modifications and fees into the Comprehensive Fee Schedule, adopted by Resolution No. 21578 as amended. SECTION 6. PENALTIES. The penalty for failure to timely register a Vacation Rental pursuant to Chapter 3.35 of the Palm Springs Municipal Code shall be 100% the fee due. PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 5TH DAY OF MARCH, 2014. DAVID H. READY, CITY MANAGER ATTEST: JAMES THOMPSON, CITY CLERK 16 Resolution No. Page 3 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 Resolution No. is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on the March 5, 2014, by the following vote: AYES: NOES: ABSENT: ABSTAIN: JAMES THOMPSON, CITY CLERK City of Palm Springs, California 17 DEPARTMENTAL FEE REQUEST AND JUSTIFICATION Department: Chief of Staff/City Clerk Fee Name: Vacation Rental Registration and Rental ❑ New Fee ✓ Increase Current Fee ❑ Delete Fee ❑ Decrease Current Fee Amount of Current Fee: $ 60.00 per year Amount of Proposed Fee $200.00 per year Net Annual Revenue $275,000 Fund 001 General Fund Explanation of Fee: PSMC Chapter 5.25 requires the regulation and registration of vacation rental properties in the City of Palm Springs. The purpose of the fee is to charge vacation rental properties for the direct cost of providing service, regulation and administration. Justification/Analysis to modify Fee: Contract VRC $100,000 Vacation Rental Hotline $ 15,000 Code Compliance $ 50,000 Police Department $ 70,000 Finance Department $ 26,000 Administration/Other $ 14,000 TOTAL COSTS: $275,000 18 BALM sAp iy u n leNaaw,d' ,fro A CITY COUNCIL STAFF REPORT DATE: FEBRUARY 5, 2014 NEW BUSINESS SUBJECT: VACATION RENTAL REGULATIONS AND APPROVAL OF AN AGREEMENT WITH VACATION RENTAL COMPLIANCE FROM: David H. Ready, City Manager BY: City Manager and Chief of Staff/City Clerk SUMMARY The City Council will discuss and direct staff, with regard to vacation rental regulations, and consider approval of an agreement with Vacation Rental Compliance, to provide additional services related to the vacation rentals in Palm Springs. RECOMMENDATION: 1. Direct staff to prepare an ordinance to amend vacation rental regulations. 2. Direct staff to prepare amendments to the Comprehensive Fee Schedule for vacation rental registration and renewal. 3. Waive the requirements of PSMC Section 7.04.050 and approve Amendment No. 1 to Agreement No. A6467, with Vacation Rental Compliance for a three- year term at the stated hourly rates. STAFF ANALYSIS: Currently, Ordinance No. 1748, which enacted Chapter 5.25 (attached) of the Palm Springs Municipal Code, regulates vacation rental properties in the City of Palm Springs. The City's regulations recognize that vacation rental properties provide alternate visitor lodging opportunities, enhances tourism, and provides additional Transient Occupancy Tax (TOT) revenue to the City's General Fund providing a wide-range of community services, from Police/Fire and Paramedics, to Parks and Library operations. Moreover, 19 City Council Staff Report February 5, 2014—Page 2 Vacation Rental Regulations Ordinance No. 1748 has important provisions that each vacation rental unit is occupied and used in a manner that is consistent with the City's regulations. The overall policy objective is to balance the concerns of stakeholders and create an approach that regulates vacation rentals ensuring they are appropriately registered with the City, do not create "nuisance" situations within neighborhoods, and that TOT payments are properly paid and collected. Included in the current regulatory ordinance, at the suggestion of the vacation rental agency stakeholders, a "noise hotline" complaint reporting process was instituted in an effort to minimize any impact to the surrounding neighbors from vacation rental properties. At the present time, within the City, there are approximately 1,374 properties registered as vacation rentals. Of this number, 831 are operated through vacation rental agencies and 543 are rented through individual property owners. PROPOSED REVISIONS: In June 2013, the Palm Springs Neighborhood Involvement Committee (PSNIC) formed a Vacation Rental Work Group. The Group was formed to review the Vacation Rental Ordinance and offer recommendations they believed would address issues that have arisen since the original ordinance was enacted. For example, a couple areas of focus have been an increase in the number of vacation rental properties and nuisance complaints on some locations. The Vacation Rental Work Group was made up of seven individuals from neighborhood organizations and vacation rental professionals. They held several meetings to study current procedures including the "vacation rental hotline" and convened public input forums. Ultimately, the work group made 21 recommendations, which were submitted to and approved by the PSNIC Steering Committee. In October, 2013, those recommendations (attached to this report) were forwarded to the City Manager for review. Subsequently, the City Manager and Staff had several fallow up meetings with the PSNIC Work Group, vacation rental agencies and other individuals to receive additional input and clarification of the recommendations. The City Council also created an ad hoc Subcommittee for Vacation Rentals (Counciimembers Foat and Mills), who have reviewed the PSNIC recommendations and provided their input. From these follow up meetings, and with a consensus from the PSNIC Study Group (including representatives from the vacation rental agencies), the following list is Staffs recommendations of potential modifications to the original Vacation Rental Ordinance. 02 20 City Council Staff Report February 5, 2014—Page 2 Vacation Rental Regulations Ordinance No. 1748 has important provisions that each vacation rental unit is occupied and used in a manner that is consistent with the City's regulations. The overall policy objective is to balance the concerns of stakeholders and create an approach that regulates vacation rentals ensuring they are appropriately registered with the City, do not create "nuisance" situations within neighborhoods, and that TOT payments are properly paid and collected. Included in the current regulatory ordinance, at the suggestion of the vacation rental agency stakeholders, a "noise hotline" complaint reporting process was instituted in an effort to minimize any impact to the surrounding neighbors from vacation rental properties. At the present time, within the City, there are approximately 1,374 properties registered as vacation rentals. Of this number, 831 are operated through vacation rental agencies and 543 are rented through individual property owners. PROPOSED REVISIONS: Iri June 2013, the Palm Springs Neighborhood Involvement Committee (PSNIC) formed a Vacation Rental Work Group. The Group was formed to review the Vacation Rental Ordinance and offer recommendations they believed would address issues that have arisen since the original ordinance was enacted. For example, a couple areas of focus have been an increase in the number of vacation rental properties and nuisance complaints on some locations. The Vacation Rental Work Group was made up of seven individuals from neighborhood organizations and vacation rental professionals. They held several meetings to study current procedures including the "vacation rental hotline" and convened public input forums. Ultimately, the work group made 21 recommendations, which were submitted to and approved by the PSNIC Steering Committee. In October, 2013, those recommendations (attached to this report) were forwarded to the City Manager for review. Subsequently, the City Manager and Staff had several follow up meetings with the PSNIC Work Group, vacation rental agencies and other individuals to receive additional input and clarification of the recommendations. The City Council also created an ad hoc Subcommittee for Vacation Rentals (Councilmembers Foat and Mills), who have reviewed the PSNIC recommendations and provided their input. From these follow up meetings, and with a consensus from the PSNIC Study Group (including representatives from the vacation rental agencies), the following list is Staffs recommendations of potential modifications to the original Vacation Rental Ordinance. 20 City Council Staff Report February 5, 2014—Page 3 Vacation Rental Regulations Recommendations 1. Every rental requires a contract which outlines ordinance requirements 2. Minimum age of renter changed froml8 to 25 3. Local contact person must be able to respond "in person"within 45 minutes 4. Second complaint within 48 hour period requires an "in person" contact between local contact person and renter 5. Registration and Permit Fee increase - $150 for rental companies and $200 for individual owners — annually 6. Reaffirmation that trash collection service must be at the "walk in service" level 7. Definition of a "bedroom" for occupancy purposes (i.e., 10 ft. x 10 ft., adjacent closet, floor to ceiling walls) 8. Permit numbers will contain the letters "PS" identifying them as Palm Springs locations in all advertisements such as rental websites, etc. 9. Citations will be issued if noise exceeds decibel limits 10.Noise citations will be issued to both home occupant and owner 11.Vacation rental locations are public information —eliminate notice requirement 12.City will provide "vacant rental permit" with information for renters about policies and regulations— must be posted in the home— including occupancy limits 13.Explore use of noise decibel reading device to assist with enforcement 14.Review of policy and complaintlenforcement data in six months and report back to City Council (Council Sub-Committee Request) ACTIONS BY CITY STAFF: Additional actions already taken by the City in response to the PSNIC recommendations include the following: • A contract has been executed with Vacation Rental Compliance (VRC) to enhance enforcement activities such as monitoring unlicensed rental locations, weekly reviews of "hotline" and "police" calls to identify problem locations, and advocacy work with owners/agencies and residents if problems arise. 03 City Council Staff Report February 5, 2014-Page 3 Vacation Rental Regulations Recommendations 1. Every rental requires a contract which outlines ordinance requirements 2. Minimum age of renter changed froml8 to 25 3. Local contact person must be able to respond "in person"within 45 minutes 4. Second complaint within 48 hour period requires an "in person" contact between local contact person and renter 5. Registration and Permit Fee increase - $150 for rental companies and $200 for individual owners — annually 6. Reaffirmation that trash collection service must be at the "walk in service" level 7. Definition of a "bedroom" for occupancy purposes (i.e., 10 ft. x 10 ft., adjacent closet, floor to ceiling walls) 8. Permit numbers will contain the letters "PS" identifying them as Palm Springs locations in all advertisements such as rental websites, etc. 9. Citations will be issued if noise exceeds decibel limits 10.Noise citations will be issued to both home occupant and owner 11.Vacation rental locations are public information —eliminate notice requirement 12.City will provide "vacant rental permit" with information for renters about policies and regulations— must be posted in the home— including occupancy limits 13.Explore use of noise decibel reading device to assist with enforcement 14.Review of policy and complaint/enforcement data in six months and report back to City Council (Council Sub-Committee Request) ACTIONS BY CITY STAFF: Additional actions already taken by the City in response to the PSNIC recommendations include the following: • A contract has been executed with Vacation Rental Compliance (VRC) to enhance enforcement activities such as monitoring unlicensed rental locations, weekly reviews of "hotline" and "police" calls to identify problem locations, and advocacy work with owners/agencies and residents if problems arise. 21 City Council Staff Report February 5, 2014--Page 4 Vacation Rental Regulations i i i • Vacation rental addresses and occupancy limits have been entered into the 911 Dispatch Center — Police will be able to respond to identified problem locations as a priority to assess the situation and issue citations, if warranted. • Vacation rentals addresses have been incorporated into citywide mapping system • Staff is reviewing vacation rental property locations with Palm Springs Disposal Services to verify compliance with solid waste collection service level requirements of"walk in service." OTHER CONSIDERATIONS: In addition to input from the PSNIC Work Group and vacation rental agency stakeholders, staff has met with and received suggestions from other residents and a newly-formed Deepwell area group, "Protect Deepwell." Attached is a list of recommendations this group has proposed for City Council consideration. Other suggestions received included enacting a moratorium on any new vacation rental permits, creating a "distance requirement" between new permit locations, or banning such permits citywide. During staffs process of reviewing the Vacation Rental Ordinance, we focused our analysis on issues raised and what may be appropriate solutions to address resident concerns. What seemed to emerge is the vast number of vacation rental properties are not problematic in terms of complaints received. For example, of the 1,374 vacation rental permits currently existing below are a sampling of Police Department and Hotline noise calls at various periods in 2013. Police Department Noise Disturbance Calls (VR=Vacation Rentals) Month(2013) Total Calls VR Calls VR Locations % VR January 256 19 15 7.42% March 333 40 26 12.01% November 315 28 26 8.89% Hotline Calls Month (2013) Total Calls VR Calls VR Locations January 4 4 4 March 28 25 18 November 20 16 11 04 21 City Council Staff Report February 5, 2014—Page 4 Vacation Rental Regulations i I • Vacation rental addresses and occupancy limits have been entered into the 911 Dispatch Center — Police will be able to respond to identified problem locations as a priority to assess the situation and issue citations, if warranted. • Vacation rentals addresses have been incorporated into citywide mapping system • Staff is reviewing vacation rental property locations with Palm Springs Disposal Services to verify compliance with solid waste collection service level requirements of"walk in service." OTHER CONSIDERATIONS: In addition to input from the PSNIC Work Group and vacation rental agency stakeholders, staff has met with and received suggestions from other residents and a newly-formed Deepwell area group, "Protect Deepwell." Attached is a list of recommendations this group has proposed for City Council consideration. Other suggestions received included enacting a moratorium on any new vacation rental permits, creating a "distance requirement" between new permit locations, or banning such permits citywide. During staffs process of reviewing the Vacation Rental Ordinance, we focused our analysis on issues raised and what may be appropriate solutions to address resident concerns. What seemed to emerge is the vast number of vacation rental properties are not problematic in terms of complaints received. For example, of the 1,374 vacation rental permits currently existing below are a sampling of Police Department and Hotline noise calls at various periods in 2013. Police Department Noise Disturbance Calls (VR=Vacation Rentals) Month(2013) Total Calls VR Calls VR Locations % VR January 256 19 15 7.42% March 333 40 26 12.01% November 315 28 26 8.89% Hotline Calls Month (2013) Total Calls VR Calls VR Locations January 4 4 4 March 28 25 18 November 20 16 11 22 City Council Staff Report February 5, 2014 — Page 5 Vacation Rental Regulations What this seems to suggest, from a policy perspective, is that more focused enforcement and advocacy efforts toward speck locations could be effective as a remedy to neighborhood concerns. Hence, the proposed recommendations include several such focused enforcement measures. The contract with VRC will monitor both police and hotline calls on a weekly basis to identify specific problem locations as they may arise. The Police Department, Code Enforcement and VCR will coordinate a priority response effort of enforcement and advocacy to these identified locations. Additionally, at the suggestion of the Council Sub-Committee, if a noise citation is issued to a vacation rental occupant, the owner will also receive a citation. Further, the Council Sub-Committee directed staff to explore the use of"on-site noise decibel meter readers" as an additional enforcement tool. Ultimately, if a specific rental property receives four citations in a 24 month period, that location's permit is subject to suspension and revocation. Other aspects of the revised City policy will emphasize increased information provided to vacation renters with regard to regulations and community standards. In addition to their current requirement to respond to a noise complaint, the vacation rental companies endorsed the idea of requiring that a personal contact be made to a rental location if a second complaint is received — several agencies have already committed to immediate personal contact on the first complaint received. Finally, we would like to recognize the PSNIC Work Group, vacation rental company representatives, and numerous residents of the City who have participated in and/or commented on the proposal. City staff would like to acknowledge all the work and the many hours spent by these individuals in this comprehensive review and set of recommendations. FISCAL IMPACT: The cost for the contract with Vacation Rental Compliance is estimated at $80,000 per year — this amount may fluctuate after having a full year's experience of services. Additional costs related to enforcement activities from Police, Code Enforcement, Finance and other staff is estimated at approximately $120,000 to $150,000 annually. A budget transfer for the balance of this fiscal year from `continuing appropriations" will provide funding for enforcement activities. Going forward, staff will present a request to City Council to increase the Vacation Rental Annual Fee from $60 to $150 for rentals operated through an agency, and $200 for rentals operated by an individual owner (to take effect after April 1, 2014). It is anticipated this level of fee increase will offset the City's costs to implement the provisions of a revised ordinance as outlined above. In six months, at the Sub-Committee's request, a program review will be presented to City Council and will include an evaluation of cost recovery from fees. 05 22 City Council Staff Report February 5, 2014—Page 5 Vacation Rental Regulations What this seems to suggest, from a policy perspective, is that more focused enforcement and advocacy efforts toward specific locations could be effective as a remedy to neighborhood concerns. Hence, the proposed recommendations include several such focused enforcement measures. The contract with VRC will monitor both police and hotline calls on a weekly basis to identify specific problem locations as they may arise. The Police Department, Code Enforcement and VCR will coordinate a priority response effort of enforcement and advocacy to these identified locations. Additionally, at the suggestion of the Council Sub-Committee, if a noise citation is issued to a vacation rental occupant, the owner will also receive a citation. Further, the Council Sub-Committee directed staff to explore the use of "on-site noise decibel meter readers" as an additional enforcement tool. Ultimately, if a specific rental property receives four citations in a 24 month period, that location's permit is subject to suspension and revocation. Other aspects of the revised City policy will emphasize increased information provided to vacation renters with regard to regulations and community standards. In addition to their current requirement to respond to a noise complaint, the vacation rental companies endorsed the idea of requiring that a personal contact be made to a rental location if a second complaint is received — several agencies have already committed to immediate personal contact on the first complaint received. Finally, we would like to recognize the PSNIC Work Group, vacation rental company representatives, and numerous residents of the City who have participated in and/or commented on the proposal. City staff would like to acknowledge all the work and the many hours spent by these individuals in this comprehensive review and set of recommendations. FISCAL IMPACT: The cost for the contract with Vacation Rental Compliance is estimated at $80,000 per year — this amount may fluctuate after having a full year's experience of services. Additional costs related to enforcement activities from Police, Code Enforcement, Finance and other staff is estimated at approximately $120,000 to $150,000 annually. A budget transfer for the balance of this fiscal year from "continuing appropriations" will provide funding for enforcement activities. Going forward, staff will present a request to City Council to increase the Vacation Rental Annual Fee from $60 to $150 for rentals j operated through an agency, and $200 for rentals operated by an individual owner (to take effect after April 1, 2014). It is anticipated this level of fee increase will offset the City's costs to implement the provisions of a revised ordinance as outlined above. In six months, at the Sub-Committee's request, a program review will be presented to City Council and will include an evaluation of cost recovery from fees. 23 City Council Staff Report February 5, 2014 -- Page 6 Vacation Rental Regulations Not affected by these recommendations is the vacation rental properties requirement to charge and remit TOT taxes to the C' on a monthly basis. The TOT tax generated b 9 rtY Y 9 Y vacation rental properties is approximately $3 million annually. TOT taxes are unrestricted general fund taxes used to fund City services such as public safety, parks, the public library and other City services. 12 ell ?/ ES THOMPSON DAVID H. READY hief of Staff/City Clerk City Manager Attachments: PSMC Chapter 5.25 PSNIC Recommendations Regulation Matrix by City Amendment to VRC Agreement Protect Deepwell Recommendations os 23 City Council Staff Report February 5, 2014—Page 6 Vacation Rental Regulations Not affected by these recommendations is the vacation rental properties requirement to charge and remit TOT taxes to the City on a monthly basis. The TOT tax generated by vacation rental properties is approximately $3 million annually. TOT taxes are unrestricted general fund taxes used to fund City services such as public safety, parks, the public library and other City services. ES THOMPSON DAVID H. READY hief of Staff/City Clerk City Manager Attachments: PSMC Chapter 5.25 PSNIC Recommendations Regulation Matrix by City Amendment to VRC Agreement Protect Deepwell Recommendations i i 24