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HomeMy WebLinkAbout2/5/2014 - STAFF REPORTS - 5.A. Jay Thompson From: Ginny Foat Sent: Tuesday, February 04, 2014 1:28 PM To: Jay Thompson Subject: FW: Palm Springs Vacation Rental Policy -----Original Message----- From: Dan [mailto:danadamsl0@gmail.com] Sent: Monday, February 03, 2014 8:14 PM To: Ginny Foat Subject: Re: Palm Springs Vacation Rental Policy Thank you, Ginny,for your reply. Unfortunately, I will not be able to attend Wednesday's meeting,thus my desire to make my comments to the council via email prior to the meeting. I hope you and the other council members will take into consideration my input. Again, thanks. Dan Adams Sent from my iPad > On Feb 3, 2014, at 8:04 PM, "Ginny Foat" <Ginny.Foat@palmsprings-ca.gov>wrote: > Hi Dan, >Thank you so much for your informative email on this very > controversial subject. I had not considered many of the points that >you made in your email regarding the private parties that do rent their homes. > Unfortunately in reviewing all of the complaints many of them are > about properties that are not managed by rental companies but by > private individuals. Not all independent rentals have owners that are > as conscientious as considerate of the neighbors as you are and many > live out of the area without local representation. I do however see a > compromise here in that all fees could be the same until there is a > legitimate complaint about the property and then they would go to the > higher fee. This is all a work in progress. I hope that you will > attend the Council meeting to voice your opinions. >Thank you so much for your input. > Ginny > Ginny Foat, > Palm Springs City Council > -----Original Message----- * From: Dan Adams [mailto:danadamsl0@gmail.com] Oa7 D6/a014 >Sent: Sunday, February 02, 2014 8:09 AM >To: Ginny Foat >Subject: Palm Springs Vacation Rental Policy > Dear Ms. Foat: > My name is Dan Adams and since 2003, 1 have owned my home at 2122 N. >Junipero Avenue in Palm Springs. For all of those 11 years, I have > rented it out as a short term vacation rental (in 2013, my home >generated $3062 in TOT tax revenues). I wanted let you know that I >am in favor of most of the new regulations that are being considered > by the city regarding reining in vacation home rentals, but with a >caveat. > From 2003 to 2011, my home had been rented exclusively by two >different major rental agencies in Palm Springs. After complaints >from both guests who rented through those agencies as well as some of > my neighbors about the quality of people the agencies were placing in > my home, I severed my relationship with the agencies and began > managing the rentals on my own through VRBO. >As a result, I am able to thoroughly screen all potential renters > personally to make sure they meet the standards that I expect of >guests in my home. >Already, I have an age limit of 25 years old, and an occupancy limit >of six is strictly enforced (it is a two bedroom home with a sleeper >sofa in the living room). Renters must provide the names, addresses, >and ages of everyone who will be staying in the home, and they must >sign a rigid contract which clearly states they will be evicted and > lose all rental money and deposits should they not abide by the Palm >Springs Good Neighbor policy which is provided to >them. I have turned renters away when I suspected that they are not >the type of people I would want to have in my home or neighborhood. >All of my neighbors know how to contact me 24/7. And I have provided >them with the city's complaint hotline number. I also have a local > property manager who is five minutes away. In the past three years, >the only reason he has been called is because of an issue with the > house (pool heater not working, Internet modem issues, etc). Never > has he been called because of complaints or problems with the guests. >That was not the case when my home was managed by the so called > professional rental agencies in Palm Springs. I found that rarely, if >at all, did they screen potential renters. The rental process often >took place solely online with no personal contact or vetting of > potential renters. As long as they paid the money and signed a lease, >they were told where to find the key to the house. During the eight >years my home was rented exclusively through the Palm Springs rental >agencies, I received several complaints from neighbors about > inappropriate behavior, loud parties, and over-occupancy. I > personally would call the agency and they would reluctantly send >someone out to handle the situation. In one case, I told them to 2 >evict the people who were there and I personally called the police. >Since managing the property myself,that has never been an issue. For >that reason, I do not agree that individuals who personally rent and > manage their property should have to pay a higher annual fee to allow >their homes to be on the rental market. If the permit fee is raised >from the current$60 annually, individuals who conscientiously screen >and manage their own property should not be forced to pay a higher >annual fee simply because they are not represented by a rental agency. >Such an act would appear somewhat discriminatory,the city favoring >agencies who themselves have not proven to be the best"gatekeepers" >so to speak of renters. > If the issue surrounds concerns over legitimate complaints about loud > parties, over-occupancy, etc, perhaps uncooperative homeowners(or >agencies) who rent their homes should be fined, similar to what the > police department now does for false burglar alarms. >As a resident of Palm Springs, I do not want to be bothered by > neighbors who do not respect my privacy or tranquility by renting >their homes to undesirables. At the same time, as a conscientious > homeowner who contributes to the city, I believe it would be unfair, > and as I mentioned earlier, discriminatory, to in a sense be "fined" >just because I do not contract with a rental agency that has neither > my best interests nor the best interests of my neighbors as their top > priority. >Sincerely, > Dan Adams >916-761-4432 3 Tuesday, February 4, 2014 Regina Pearson 213 W Camino Buena Vista Palm Springs, CA 92264 21z4' 760 323-9659 FAX: 760 327-2262 EMAIL: sunceria(?Paol.com TO: MAYOR STEVE POUGNET Vacation Rentals: I have experienced: explosions, fireworks, sparklers, yelling, and screaming with loud foul language; pot smoking which blows into my yard; heavy drinkers; people peering in the front & back yards; people changing clothes in the street;Trash (Beer cans, tops of bathing suits thrown in our yards, . Cars parked everywhere, sometimes blocking driveways; amplified music with professional DJs; catering trucks; trucks carrying lots of equipment from tables and chairs to huge speakers; microphones; stage equipment; and trucks with food and caterers. Witnessed arrests, police removing tenants, even an ambulance taking someone off the premises. Numerous loud arguments. This sometimes for days on end , sometimes just on weekends. Calls after calls were made, to the hot line and police. Someone would come out and leave and report it Resolved. When it just started all over again a half hr later. Neighbors are frustrated with the hotline and the enforcement and the density of rentals around a given space. For instance I have six to seven rental properties around me.If you were to draw a circle with my home in the middle, i have two rentals backing up to my property line. One across the street and four more rentals that aren't even listed as rentals anywhere that i have been able to fine. but all within a 100 to two hundred foot radius. And they don't show up as rental properties. Not always listed . These people are taking advantage of the city of Palm Springs as well as it's residents who pay property taxes and put a lot of money into the community. This is a continuing trend that is driving down the property values, and no one wants to buy a home where they are surrounded by rental properties that are run as a business. When you sell a home you have to disclose how many rental properties are a disturbance. And no one wants buy a home by loud rental properties that are rented as a business Would you? I think we can all get along and make it a pleasant experience for the property owners/or managers and the rental tenants as well as the full time residents. Recommendations: 1). Increase the minimum age to rent a home from 18 to 25. 2). Require rental agreements/contracts to include the PALM Springs Ordinances and fines posted for abusing each of the ordinances. I think if it were posted by the front door of rental properties they wouldn't, be so apt to break the laws or ordinances when they see how much Tuesday, February 4, 2014 It affects their wallets. 3). Citing homeowners in addition to violators. Citing homeowners IF their is a continual violations for that rental property thru out the year. IF it is a party house continually ...SUSPEND the owners license for the rental property for a year. Letting him know he can reapply after a year for another license to rent. But will have to be approved for rental density where said property is to be rented. And even if approved to rent will have to wait on a waiting list of others in the neighborhood who would like to rent their property who were on the list before them. It's a process. Everyone should be approved by rental density in that particular neighborhood or street. 4). Increasing registration fees.The fees are so minimal, it's a drop in the bucket for those who specifically rent houses out for parties and events. They make a lot of money and always have more people than the ordinances allow. AND FOR EVENTS, PERMITS SHOULD BE A PRIORITY 5) NEIGHBORS SHOULD BE INFORMED IN WRITING 1 WEEK IN ADVANCE of all events so they themselves can plan for the event, whether it's to leave town or not entertain on the weekend of the said event. 6). No amplified music. None of the renters seem to know what that means. Even when their told by property owners/managers it goes right back on again to the wee hrs of the morning. It should not be the residents that have to call every time. The first time is an inconvenience, let alone hr after hr, week after week. Month after month. Year after year 7.A review board that approves rental properties according to the rental density in the neighborhood and near by streets. They should also be the ones to pull the rental properties license for said problem properties or suspend renting for a hr for that property. If we keep in mind that the renter doesn't want to rent where there are going to be calls on other rental properties near by and be blamed when it may be the other rental property making the noise. Another good reason to keep the rental properties a good distance between one another. It would make for a pleasant stay and even a repeat customer. 8) Think we need to define what a bedroom Is J for example the square footage allowed, four walls and a door and a window.....ANOTHER WARDS... Not a closet or a basement, or an attic count as a bedroom. NOR DOES LOUNGE CHAIRS BY THE POOL AT NIGHT. 9). The city should eliminate It's " plus two" overnight standard that allows two people per bedroom plus two. Most and I mean the majority of cities DON'T ALLOW MORE THAN TWO PEOPLE PER BEDROOM OVERNIGHT. 10). No Amplified music outdoors and if in doors,music should not be loud enough for neighbors to hearing their yards or houses 11). Ordinances AND CODE ENFORCEMENT should be followed thru with strict enforcement. or why have the ordinances at all. Then if ordinances are broken the fines should be high enough to keep them from even thinking about doing It again. Tuesday, February Februa 4, 2014 12).No more courtesy citations. They were not courteous when they violated the city ordinances, why should we ever issue a courtesy citation. If the police issued a citation, just the trip out to cite them costs the city and taxpayers money. THESE ARE MY SUGGESTIONS AND HOPE THAT THE CITY COUNCIL WILL CONSIDER THEM OR COME UP WITH EVEN BETTER SOLUTIONS. THANK YOU FOR YOUR TIME AND EFFORTS TOWARDS THESE ISSUES. SINCERELY, F4w ARSON CC:GINNY FOAT, RICK HUTCHESON, PAUL LEWIN, CHRIS MILLS, DAVID H. READY, Kary Feeley and Xochitl Pena- The Desert Sun 11 F A`M sA4 c u a cQ��Foft 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, ITEM NO. 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 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. 02 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 from18 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. 03 City Council Staff Report February 5, 2014 -- Page 4 Vacation Rental Regulations • 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 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 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 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. T 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 06 ?A`MSb iy u m s • �Onoa.vo... C �p 4<fFOAN VACATION RENTAL REPORT ATTACHMENT P.S.M.0 CHAPTER 5.25 v7 Chapter 5.25 VACATION RENTALS Page 1 of 6 Palm Springs Municipal Code Up Previous Next Main Collapse Search Print No Frames Title 5 BUSINESS REGULATIONS Chapter 5.25 VACATION RENTALS__ _ 5.25.010 Title. This chapter shall be referred to as the"Vacation Rental Ordinance." (Ord. 1748 § 1, 2008) 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. (Ord. 1748 § 1, 2008) 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. "City manager" means that person acting in the capacity of the city manager of the city of Palm Springs or the city manager's designee. "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 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, that are applicable to or expected of residents of the city. "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 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 respond 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. "Responsible person"means an occupant of a vacation rental who is at least eighteen 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. http://www.gcode.us/codes/palmsprings/view.php?topic=5-5_25&showAll=1&frames=on 1/26/2014 Chapter 5.25 VACATION RENTALS Page 2 of 6 "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 hotel as defined in Ordinance No. 1521 as such ordinance may be amended from time to time. "Vacation rental registration certificate"means an annual registration submitted to the city pursuant to this chapter. (Ord. 1748 § 1, 2008) 5.25.040 Registration certificate required. 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. (Ord. 1748 § 1, 2008) 5.25._0.50 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. (Ord. 1748 § 1,2008) 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. (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. (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. (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 09 http://www.gcode.us/codes/palmsprings/view.php?topic=5-5_25&showAll=1&frames=on 1/26/2014 Chapter 5.25 VACATION RENTALS Page 3 of 6 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) The registration of a vacation rental shall be accompanied by proof of general liability insurance in the amount of one million dollars combined single limit and an executed agreement to indemnify,defend and save the city harmless from any and all claims and liability of any kind whatsoever resulting from or arising out of the registration of the vacation rental. (d) 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. (e) 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. (Ord. 1748 § 1, 2008) 5.25.070 Operational_requirements and standard conditions. (a) The owner shall use reasonably prudent business practices to ensure that the vacation rental unit complies with all applicable codes regarding fire, building and safety, health and safety, and all other relevant laws. (b) 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 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: i � http://www.gcode.us/codes/palmsprings/view.php?topic=5-5_25&showAll=1&frames=on 1/26/2014 Chapter 5.25 VACATION RENTALS Page 4 of 6 Number of Total of Overnight Additional Daytime Total Daytime Occupants Bedrooms 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 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 responding within forty-five minutes to 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 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 an enclosed vacation rental unit. (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: (1)obtain the name, address, and driver's license number of the responsible person; (2)provide a copy of the good neighbor brochure to the responsible person; and(3) require such responsible person to execute a formal acknowledgement 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. This information shall be readily available upon request of any officer of the city responsible for the enforcement of this chapter. (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. 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. The owner, or his or her agent, shall report the name,violation, date, and time of disturbance of each responsible party involved in three or more disturbances covered by this subsection to the city manager. (h) 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 http://www.gcode.us/codes/palmsprings/view.php?topic=5-5_25&showAll=1&frames=on 1/26/2014 Chapter 5.25 VACATION RENTALS Page 5 of 6 all the provisions of Chapter 6.04 of the Municipal Code(Waste Disposal and Diversion), and shall provide the highest level of solid waste collection service available to residential customers in the city(including without limitation"backyard collection" services or"walk-in service")or as may otherwise be approved by the city manager. (i) The owner of the vacation rental unit shall post a copy of the permit and a copy of the conditions set forth in this section in a conspicuous place within the unit. 0) 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 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. (k) The use of a vacation rental unit shall not violate any applicable conditions, covenants, or other restrictions on real property. (1) 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. (m) A copy of the vacation rental registration, including all of the information required in Section 5.25.060 (a) (1"5) shall be mailed or delivered to all property owners shown on the last equalized county assessment roll and all occupants of each dwelling unit within three hundred feet of the vacation rental unit and to the office of neighborhood involvement of the city. Such information shall be provided at least annually or within fourteen days of any change of information as required pursuant to Section 5.25.060(e). (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) 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.(Ord. 1748 § 1, 2008) 12 http://www.gcode.us/codes/palmsprings/view.php?topic=5-5_25&showAll=1&frames=on 1/26/2014 Chapter 5.25 VACATION RENTALS Page 6 of 6 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. (Ord. 1748 § 1, 2008) 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 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 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 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) 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. (Ord. 1748 § 1, 2008) 5 25.100 Requirements not exclusive The requirements of this chapter shall be in addition to any license,permit, or fee required under any other provision of this code. The issuance of any permit pursuant to this chapter shall not relieve any person of the obligation to comply with all other provisions of this code pertaining to the use and occupancy of the vacation rental unit or the property on which it is located. (Ord. 1748 § 1, 2008) 13 http://www.gcode.us/codes/palmsprings/view.php?topic=5-5_25&showAll=1&frames=on 1/26/2014 14 �O pALM S.0 iZ 4 u m cg41FOR VACATION RENTAL REPORT ATTACHMENT PSNIC RECOMMENDATIONS 15 Palm Springs Neighborhood Involvement Committee Vacation Rental Work Group Recommendations September 2013 Dr. David Ready, Esq., Ph.D., City Manager City of Palm Springs 3200 Tahquitz Canyon Way Palm Springs, CA 92262 Dear Dr. Ready, In June 2013 the Palm Springs Neighborhood Involvement Committee (PSNIC) formed the Vacation Rental Work Group. While anecdotal in nature, many neighborhood organizations have seen an increase in the number and intensity of complaints regarding the operation of Vacation Rentals. The work group reviewed our existing Vacation Rental Ordinance, procedures and resources for carrying out the ordinance and the concerns of residents. We drew from the experience of professionals in the business of managing vacation rental properties and lessons learned from other Coachella Valley cities. In 2007 and 2008, the city, PSNIC and many residents and professionals invested a tremendous amount of time and talent in the development of an ordinance that has become the acknowledged model for cities throughout the valley. Our goal was to identify practical improvements to our existing ordinance and procedures. By the completion of our work, we remain convinced that our Ordinance has been broadly successful. Nonetheless, with after five years of experience, it is time revisit this Ordinance and to make the modifications needed to improve its effectiveness. The Vacation Rental Work Group was made up of individuals with first-hand rental experiences as members of neighborhood organizations, vacation rental professionals or both. Some of our members were significantly involved in the development of the 2008 ordinance and others are recent to the debate. Our members included: • Sheila Cobrin, Vista Las Palmas • John McCoy, Palm Springs Resort Homes &Andreas Hills Neighborhood • Michael McLean, McLean Company Rentals • Lisa Middleton, Chair & Tahquitz River Estates • Laura Miller, Twin Palms • Ron Siegel, El Mirador • Robert Thorson, Deepwell Estates We appreciate the assistance and support we received in our meetings from many in the City including Lee Bonno, Lt. Walter Combs, Kary Feeley, Geoffrey Keihl, Lt. Michael Kovaleff; and in particular Jay Thompson who was exceedingly thoughtful with his time and expertise. We are also appreciative of the experience we gained from Linda Taylor of the vacation rental Hotline and Robert Barrett of the City of Rancho Mirage. Approved-Palm Springs Neighborhood Involvement Committee - October 10, 2013 1 Our most important finding is that the available resources within city government are inadequate to manage the task before them. This is not a criticism of the talent and commitment of the people involved. The growth of this industry and this alternative hospitality venue has not been matched by an increase in staffing, electronic tracking capability or the necessary fees to support adequate resourcing. There are over 1300 vacation rental permits in Palm Springs, producing over $3m annually in Transit Occupancy Taxes; and approximately $75,000 in permit fees. There are over 1600 homes on the website Vacation Rentals By Owner(VRBO) that list Palm Springs as an address. Some of the approximately 300 Palm Springs homes on VRBO without a Palm Springs permit are inaccurate addresses and other inadvertent errors. Nonetheless, nearly everyone we spoke with is convinced there are numerous homes operating as vacation rentals in our city without proper permits. Compliance with permit-processes and tax collection requires significant resources. In Palm Springs we have dedicated only one-half time employee; and her responsibility ranges from catching permit scofflaws to managing the complaint process. We are not aware of any off-the-shelf software solutions to track the complaint process; but today we work with a system in which some data is stored in paper files, some at the Hotline offices, some within Police Department systems and some on-line within the Finance Department. Capturing the data needed to identify and document non-compliant rentals is time consuming; and relies on multiple one-on-one contacts by one Finance Department employee. There are issues that surfaced in our discussions that we could not identify a practical solution for that nonetheless are of growing concern and negative neighborhood impact. Most important of these is the concentration of rentals in some neighborhoods. It is becoming increasingly common in many neighborhoods for two, three, four and even five homes within a stretch of a half-dozen homes to be vacation rental properties. In Deepwell and Twin Palms there were quite striking examples of such a pattern. It is a common perception that there has been an increase in the number of investor owned homes that appear to be used exclusively as vacation rental properties. And we had reports of second-home and investment properties that appear to have been"under- water" with increasingly desperate homeowners willing to bend any rule to secure a rental. These are circumstances that clearly impact the quality of life of surrounding neighbors. Much of the intensity of adverse attitudes towards vacation rentals in general is driven homeowners who feel themselves surrounded not by neighbors but by commercial enterprises. Cities zone properties and districts because it is preferable to segregate commercial, high occupancy and low occupancy residential properties. The occasional rental of a neighbor's home should not be remarkable; but the constant presence of commercial activity within a neighborhood of single- family residences is even in the best of circumstances an invitation for trouble. Traditionally when we think of vacation rental troubles we think of the loud and late night party; but Palm Springs is also home to the afternoon pool party. We do not make a recommendation regarding children and pools. Many of the most intense complaints we have heard involve extremely loud behavior by children outdoors. The Good Neighbor Brochure is a helpful start and some reasonable give &take between visiting families and their neighbors would go a long way solving extremely loud play. Our enforcement efforts need to be alert for those situations when playtime becomes an untenable intrusion upon the neighbors. Approved-Palm Springs Neighborhood Involvement Committee- October 10,2013 2 17 We are aware that vacation rentals and special event rentals are covered by separate ordinances. While issues surrounding the two are often related, we did not spend sufficient time addressing special event rentals to make recommendations regarding them. We are nonetheless aware of increasing concerns within some neighborhoods of disruptions due to special events hosted within Palm Springs neighborhoods by and for people from outside of Palm Springs. PSNIC recognizes that the neighborhood organizations do not have authority to act or intervene in any official capacity at any time. PSNIC and the NORGs are however an effective means of communication between residents and city officials. Concerned residents have many alternatives to communicate their concerns to city officials. Many residents have sought out their neighbors and the NORGs to help them with concerns regarding vacation rentals in their neighborhoods. While some of our recommendations that suggest PSNIC and the NORGs may play a helpful role in matters related to vacation rentals we are mindful that our role is exclusively one of aiding in communication and facilitating understanding between concerned residents and city officials. Our Recommendations: Permits, Fees and Contracts: 1. Every property rental should be required to have a contract between the homeowner or their representative and the guest. Those contracts should be required to be maintained by the homeowner or their representative for not less than two years; and should be available for inspection upon request by enforcement personnel of the City of Palm Springs. The contract should, at minimum, include the following: a. Name, address and copy of a government issued identification of the `Responsible Party'. b. The terms and conditions of the rental. c. A copy of the "Good Neighbor Brochure". d. List of all guests by name. e. A list of guest's vehicles. 2. The minimum age to be the `Responsible Party' in a vacation rental agreement should be 25, not 18. 3. The definition of`Local Contact Person' should be amended to require that the Local Contact Person is capable of responding in person, as necessary, within 45 minutes of the complaint. 4. The fees for a vacation rental permit should be increased from $60 to $150 per year. 5. In submitting a permit application to operate a vacation rental a homeowner should be required to provide evidence, such as a billing statement, that their service account with Palm Springs Disposal Services includes "backyard collection" or"walk-in service". 6. The Ordinance presently allows a maximum overnight occupancy of two people per bedroom+ 2. We recommend the+2 be eliminated and the maximum number of overnight occupants not exceed 2 x the number of bedrooms. We would continue to allow a studio without a separate bedroom to have a total of two overnight guests. 7. A definition of`Bedroom' should be added to require a room serving as bedroom to be at least 100 square feet, with four walls that extend from the floor to the ceiling, an entry door, an exterior window and a bed. Many Palm Springs homes include dens or offices Approved-Palm Springs Neighborhood Involvement Committee- October 10, 2013 3 with sofa-beds or rollout beds. Such rooms should be included within the definition of a bedroom for vacation rental purposes. Complaint& Violation Processes: 8. Notwithstanding the responsibilities of the Police Department, all other enforcement activity for the Vacation Rental Ordinance should be relocated from Finance to an enforcement function such as Code Enforcement. 9. Those who fail to take out a proper permit are presently subject to a `courtesy notice', an obligation to take out a permit and to pay an estimated TOT on an estimated calculation of unpaid TOT. This may be a sufficient response to the clearly inadvertent minor omission; but for some it is an incentive to defer their obligations until they are caught. We encourage consultation with the City Attorney to craft a penalty for failure to take out a permit and make timely payments of TOT that is an effective deterrent to non-compliance. It should be more costly for those who do not comply with our laws than for those who do. 10. Our permit numbers should include the letters `PS' as this will help distinguish them from other valley city permit numbers in advertising. We should remind our permit holders that their ads are required to include their permit numbers; but after a reasonable time for ads to be updated with permit numbers we should begin to apply violation fines to those advertisements that do not include a permit number. The fine for failing to have a permit should be greater than the fine for failing to include a permit number in advertising. 11. As is current procedure, the Hotline should not under any circumstances share the name or identification of a complainant with the homeowner or their representative. Complainants to the Hotline should not be required to identify themselves. However, complainants should be offered the opportunity to identify themselves; assured that their identity will be revealed to no one other than as necessary to the police department; and that those who do identify themselves will be offered the opportunity to receive a follow-up phone call from the Hotline and/or the City. 12. The second or any subsequent complaint regarding the same home within 24 hours of the first complaint must include a face-to-face discussion of the complaint between the `Local Contact Person' and the `Responsible Party'. 13. Where there has been a failure on the part of the owner and or their professional representative to timely and adequately respond to a complaint that results in a response by the Police Department the City Administration should have the administrative discretion to charge the homeowner for the police time spent on the matter. 14. The city's practice of issuing of a courtesy notice for first violations of the ordinance should be re-visited. We appreciate the need to be welcoming and appreciate that many violations of the ordinance are by well-intentioned individuals. Administrative discretion to respond to such inadvertent errors should be maintained. Nonetheless, we are also witness to individuals taking calculated advantage of our practices. To act as a sufficient deterrent to non-compliance our enforcement penalties need to be more certain, more swift and more costly. 15. We should explore the feasibility of use of the "Palm Springs At Your Service" application for the reporting of vacation rental complaints. To be a functional alternative for reporting complaints it is critical that complaints made on"Palm Springs At Your Service"be able to be received and acted on 24/7. 16. The Complaint Log process needs software upgrading. Software system upgrades are an essential step in the management of the over-all vacation rental program. Notwithstanding Approved- Palm Springs Neighborhood Involvement Committee- October 10, 2013 4 19 a broader system upgrade, the current Complaint Log should be amended to easily allow identification of the following: a. Date & Time of the Complaint b. Description of the Complaint c. Name of the `Local Contact Person' contacted by the Hotline & the name of the firm if a professional agent or representative of the owner. d. The time of the response by the Local Contact Person. e. Description of the action taken by the Local Contact Person, including whether the Local Contact Person spoke by phone or in person with the `Responsible Party' or another guest. An observation of the scene by the Local Contact Person that does not include a conversation with the guests should clearly note that no conversations took place. f. If the Police were contacted, a description of the contact with the police and a brief description of their involvement. g. We believe the word `Resolved' should be used with caution in describing complaint interventions. Resolved implies that an effective action to cease the activity that precipitated the complaint has been taken. What is ordinarily known is whether or not a complaint received a timely response and a description of what was seen or said by the Local Contact Person and promised by the guests. It is difficult to know whether an intervention was effectively resolved without subsequently consulting with the complainant. 17. The last sentence of Ordinance 5.25.070 (g) related to the reporting to the City Manager of a `Responsible Party' involved in three or more disturbances should be deleted. It is well intentioned but has proven to be unworkable and unenforceable. The police department is in the best position using other statutes and ordinances to respond to the most disruptive and non-compliant guests in our City. Noise Issues• 18. The existing Ordinance 5.25.070 (e)prohibiting sound amplification outdoors should be retained. 19. From 10:00 pm to 7:00 am, sound amplification indoors should be prohibited. Notification: 20. Section 5.25.070 (m)relating to the requirement that residences within 300 feet of a vacation rental should be notified of the rental should be deleted. This section is well intentioned, but it is impractical and if acted on would impose an enormous burden of City time and expense. We suggest instead the following: a. Vacation Rental permits are public records. Therefore anyone seeking to identify vacation rentals may do so by making a public records request to receive a copy of all current vacation rental permits. It would be very helpful if such records were cross-referenced by street address. b. The Office of Neighborhood Involvement and Department of Finance should work with PSNIC to provide to those neighborhood organizations that request it a periodic citywide listing of vacation rental properties and periodic copies of the citywide Vacation Rental Complaint Log. Those NORGs that based on local circumstances need to be particularly attuned to the vacation rentals in their Approved-Palm Springs Neighborhood Involvement Committee- October 10, 2013 5 `' neighborhoods can use the list and log to work with enforcement officials to identify problematic rentals and alert the City of apparent un-permitted rentals. Education & Outreach: 21. PSNIC should build upon the work done by neighborhoods such as Deepwell and Twin Palms to better educate their members regarding the Vacation Rental Ordinance and proper complaint procedures. It is clear to us that many in our neighborhoods are ill informed on how to make a complaint to the Hotline; or are too intimidated and fearful of retaliation to make a complaint. The result is an individual who is often angry and frustrated, but with grievances that lack the specificity and timeliness necessary for resolution. The members of this work group are committed to working with PSNIC to help each NORG that wants to improve the understanding of its members. We appreciate the opportunity to provide our experience and insight into this important program for our City. We look forward to working with you and others in helping to make Vacation Rentals and on-going and attractive hospitality option for guests to and residents of Palm Springs. Respectfully Submitted, Sheila Cobrin John McCoy Michael McLean Lisa Middleton Laura Miller Ron Siegel Robert Thorson CC: Mayor Steve Pougnet Councilmember Ginny Foat Councilmember Rick Hutcheson Councilmember Paul Lewin Mayor Pro Tern Chris Mills Appendix: Approved-Palm Springs Neighborhood Involvement Committee - October 10,2013 6 G On October 9, 2013 the Vacation Rental Work Group held a Public Forum on Vacation Rentals in the Large Conference Room at City Hall. The Public Forum was publicized by each of the 33 Neighborhood Organizations, PSNIC, on the City website listing public events and was reported on by the Desert Sun and KMIR-TV. Approximately 50 people attended the Public Forum. Everyone who wished to speak was provided an opportunity to speak. Oral Public Comments: 1. Regina Pearson 213 W Camino Buena Vista Palm Springs, CA 92264 (760) 323-9659 sunceria ,aol.com 2. Howard Boller 213 W Camino Buena Vista Palm Springs, CA 92264 (760) 323-9659 sunceriana aol.com 3. Wayne DeWolfson 1998 S. Mesa Palm Springs, CA 92264 (760) 778-1707 4. Michael Gambill 2930 S. Redwood Drive Palm Springs, CA 92262 (760) 260-8080 Michaelgpsresorthomes.com Palm Springs Resort Homes 5. Diane Ross 1555 Sagebrush Palm Springs, CA 92264 (760) 320-5013 diancrossnadc.rr.com 6. Kevin Fruhwirty 1940 S. Yucca Place Palm Springs, CA 92264 (562) 866-7620 7. Stan Sartor 984 E. La Jolla Palm Springs, CA 92264 8. Thomas Salinas Approved-Palm Springs Neighborhood Involvement Committee - October 10, 2013 7 2 Z Deepwell Estates Neighborhood Oranj Palm Vacation Homes 225 S. Civic Drive, Suite 7 Palm Springs, CA 92262 (760) 323-8628 www.oranjpaim.com Written Public Comments: 1. Deepwell Estates Neighborhood Organization PO Box 4987 Palm Springs, CA 92263 denoboardkourdeepwell.com 2. Regina Pearson 213 W Camino Buena Vista Palm Springs, CA 92264 (760)323-9659 3. Margaret Gordon 1945 South Mesa Drive Palm Springs, CA 92264 (760) 318-9513 4. Larry Fechter 1175 E. Cactus Rd. Palm Springs, CA 92264 5. Verna Norris vemaknorseaodysse, 6. Patrick Sheehan 1257 Granvia Valmonte Palm Springs, CA 92262 7. Rob Cooper Robco Construction (760)413-2794 psremodelkhotmail.com 8. Dan Barber Dbarber872kaol.com 9. Thomas Salinas Oranj Palm Vacation Homes Approved-Palm Springs Neighborhood Involvement Committee - October 10, 2013 8 23 225 S. Civic Drive, Suite 7 Palm Springs, CA 92262 (760) 323-8628 www.oranipalm.com Approved-Palm Springs Neighborhood Involvement Committee - October 10, 2013 9 24 PDeapwJ rstatm Ndghbmbood OW.katim September 30, 2013 Via: U.S. Mail Via:Email to lisaandcheryl@earthlink.net Ms.Lisa Middleton Chair PSNIC Vacation Rental Workgroup City of Palm Springs 3200 East Tahquitz Canyon way Palm Springs, CA 92262 REF:PSNIC Vacation Rental Workgroup Draft Recommendations Version 4 Dear Ms. Middleton: The Deepwell Estates Neighborhood Organization (DENO) appreciates the opportunity to respond to the PSNIC Vacation Rental Workgroup Draft Recommendations (Version 4) regarding the Palm Springs Vacation Rental Ordinance and associated non-compliance concerns. First, we would like to offer six general observations that we believe are critically needed improvements to the Ordinance, followed by our comments on specific recommendations. o Vacation rental concerns are a Code Enforcement issue and not a finance issue; therefore, all operations should be under the Planning Department. Permits and regulations for event house operations are currently housed in Planning. Put it all together. o A dedicated position in Code Enforcement needs to be assigned to this very important Palm Springs resident quality of life issue. Since the permit process alone brings $75,000 annually to the City and TOT, $3 million, there is sufficient funding for this position and any supporting software that may be required. o Fines and penalties: Noise is the major problem. Penalties and fines need to be spelled out clearly. The Good Neighbor Brochure states "...that you may be cited or fined by the City." The posting requirements at every rental house/condo should be amended to require a clear statement that upon the first complaint, the management company/owner will inform the renters of the infraction and explain the consequences at a face-to-face meeting. On the second and subsequent calls there will be fines and a police presence. Finally,if continuing, there will be eviction. Management companies/owners need to know explicitly the size of the fines they incur and atwhat point their permit for that house will be pulled. This is called A}°urdccpwell com (PostOFfice Box+987I Palm Spr,nJvs CA9226�j I aenol�oarcl@ourt�eepwell.Com10 25 Ms. Lisa Middleton, September 30, 2013; 2:5 enforcement! Complaints shall not be simply dismissed as resolved or not verified, which is the current practice. o Overconcentration of vacation rental properties magnifies the problem and must be a part of the solution. For example, on one street in our neighborhood we have a high-density vacation rental cluster with three adjacent houses on one side of which two are vacation rental businesses and three adjacent houses directly opposite of which, again, two are vacation rental businesses. Of the six,there are only two residents and the other four are vacation rentals. To have four rentals out of six houses is overconcentration and adversely impacts the residential character of the neighborhood. We have several of these clusters in Deepwell Estates. More than 10% of the homes in Deepwell Estates are now vacation rentals. Other City ordinances address overconcentration of non-residential use in residential neighborhoods. Vacation rentals properties should not be an exception. o Overconcentration exacerbates another problem-the number of cars on our streets.A four-bedroom house could have 8 cars on the street.Use of garage and driveway must be emphasized. o No vacation rental company shall make any internal company policy which conflicts with any provision of the ordinance. Comments specific to nume rated Vacation Rental Recommendations,Draft4 Item 1: Subsection b: "b. The terms and conditions of the rental." This statement is vague. We agree if the intent of this subsection is for the rental agreement to include restrictions for use of the property relating to the City ordinance (e.g.noise, definition of Quiet Hours, specific occupancy limits,parking). Item 2: Agree Item 3: Local Contact Person should not only be capable of responding in person but also be required to respond in person and engage renters face-to-face for every complaint. Each face-to-face meeting must be documented. Item 4: No Comment. ourdeepwell.com I Post Q ice box 99871 Palm Springs CA 922631 enoboar�@ourdeePwcll.c , 26 Ms. Lisa Middleton, September 30, 2013; 3:5 Item 5: Evidence of required Palm Springs Disposal Services(PSDS)walk-in service should also be required at time of permit renewal. Item 6: Confusing use of terms "overnight occupants" and 'overnight guests."Use one or the other. We suggest use of"registered guests" throughout document. Item 7: Remove sentence "ManyPalm Springs homes include dens or offices with sofa beds or rollout beds.Such rooms should be included within the definition of a bediv mfor vacation rental purposes. " This sentence defeats the purpose of defining a bedroom. Instead, amend the previous sentence to include '..bed, sofa bed or rollout bed.' Item 8&9: Detail the fines and timeframes in the ordinance. Nothing should be left to discretion. This section focuses on registration issues and could be interpreted to reference fines only with regards to registration issues. This point needs clarification to ensure this section addresses all ordinance violations. Item 10: This is our present understanding of the process. Item 11: Face-to-face discussion must occur with the first and all subsequent complaints and be documented in writing with a clear description of the complaint and signed by the Local Contact Person and the Responsible Party. Having the manager make this face-to-face contact on the first complaint will have the likely effect of reducing further complaints. The management company or property owner shall incur mandatory fines for the second and all succeeding complaints occurring within a rental period in accordance with the fine schedule detailed within the ordinance. Face-to-face meeting documentation shall be forwarded to the City, maintained within the database and used to support the resulting obligatory fines.Complaints shall not be simply dismissed as resolved or not verified. our ce el.com Post O{�ce Box 498j Palm 5 rims CA 92263 enoboarc�@ouraee e��. 27 PW P P`'`' cam Ms. Lisa Middleton, September 30, 2013; 4:5 Item 12: This section is ambiguous and dilutes the enforcement. The lack of definition of terms such as "administrative discretion" and "inadvertent errors" renders this section meaningless and does not support the intent summarized in the last sentence: "To act as a sufficient deterrent to non-compliance our enforcement penalties need to be more certain, more swift and more costly." Item 13: Agree, robust software support systems and processes are critical and should integrate with the applicable Police Incident database. Item 14: Agree. Item 15: Agree. Item 16: Agree. Item 17: 5.25.070(m) agreed it has not been previously implemented but recommend it not be dismissed as unworkable. Transferring the City Vacation Rental program to the Planning Department where notification systems are already in place and fully operational would eliminate the concern that this would create an "enormous burden of City time and expense." A valuable benefit to managing the program through the Planning Department is the up- front registration process. Presently, registration is simply for bookkeeping with no quality of life impact review prior to approval. The city Planning Department has processes in place for notifications and neighborhood feedback prior to issuing permits. Further, the process enables the overconcentration issue to be part of evaluating new vacation rental permits. Overconcentration provisions exist in other city ordinances and have been successfully managed though the City Planning Department. ourdr�Pwe Isom I Post OfFce Sox 998J(Palm Springs CA 922b3{ eno6oard@ourdeePwcll.co Z 8 m Ms. Lisa Middleton, September 30, 2013; 5:5 Item 18: We hope the revised structure and City enforcement of the ordinance will provide residents with visible action by the City. Without teeth in the ordinance resulting in definitive resolution of problem properties, the ordinance becomes moot and residents disillusioned. DENO welcomes and looks forward to your comments or questions. Sincerely, DEEPWELL ESTATES NEIGHBORHOOD ORGANIZATION DENO Vacation Rental Workgroup /for DENO Board Of Advisors cc: Lee Bonno, Director of Neighborhood and Community Relations James Thompson, Palm Springs City Clerk Michael Mclean, Mclean Company Rentals John McCoy, Palm Springs Resort Homes Laura Miller, Member PSNIC Vacation Rental Workgroup Ron Siegel, Member PSNIC Vacation Rental Workgroup Robert Thorson, Member PSNIC Vacation Rental Workgroup Margo Wheeler, Director of Planning Services Kary Feeley, Palm Springs Department of Finance &Treasury DENO Membership etal. Palm Springs Neighborhood Chairs et al. ourd ell.com I Post OlTice Box 498 I PaEm 5 rin CA 922631 denoboar �ourdeePwell.com i� Regina Pearson 213 W Camino Buena Vista Palm Springs, Ca. 92264 (760)323-9659 October 8, 2013 Dear Palm Springs Neighborhood Involvement Committee, Vacation Rental Work Group, We all enjoy our quite weekends when we get to unwind, and take a little time to enjoy the fruits of our labor. Set around the pool, gaze out at the view of the mountains and just listen to nature as you relax inthe sunshine of another wonderful day in beautiful Palm Springs. My problem is if Iwant a quite relaxing weekend I have to go somewhere else. You see for the last two years I have two vacation rentals right next door. By that I mean, we share property lines with not one, buttwo vacation rentals. These two properties according to the VRBO web site are approved for sixteen overnight guests each, that is thirty4m over night guest each weekend. There goes any hope of my family enjoying our weekend, these tenants abuse any good neighbor policies they are asked to respect. They are loud, crude, and screaming long into the night, three or four AM is not unusual. They play there amplified music and PA systems day or night, and lie to the hotline or property managers when they are questioned about reports that have been called into the city hot line. We have been calling the city hotline for years now and I have to tell you it is very frustrati ng to have to call anybodyjust to try and enjoy your own home, nothing changes. It is the norm for us to call on the same party each day to ask the hotline to remincithe renters to stop the music or to quite down after 10 PM.These out of town renters come here to have a good time and when you get 16 people looking to rent together it doesn't take a genius to figure out they are here to party, hey they are spending$1190 a day to be here and they are going to have fun. This is great for them and the property owner who is paying his mortgage and making a profit to boot, but what about my home bought and paid for in a residentially zoned neighborhood. What happened to zoning laws, what happened to my investment, what happened to our quality of life? I purchased here because of the neighborhood, and the neighbors I have. For years this has been a very quite area, with each neighbor having his share of get togethers with family and friends just as you would expect with any neighborhood. What the city has done with this commercializing of residential neighborhoods is wrong and disrespectful of its citizens. What was the idea inthe first place? I have 32 30 temporary visitors staying next door, in Palm Springs there are more than just a few boutique hotels that can't even accommodate that many guests. The city has published figures that state a revenue stream of 3 million dollars from vacation rentals, have they considered the cost of people moving out to escape the degrading nuisance. Property values are going to drop and that means property taxes go down it doesn't take much to off set 3 million dollars. Would the city rather have higher property value and guest staying in the many hotels around town? I'm sure the hotel owners would liketo accommodate these weekend visitors. And as for special use permits or events fees, the property around me, according to your own city records never issued one, but they have had many events, and the city has collected nothing. So in closing I must emphasize the only one paying around here is myself, my family, and my neighbors. Sincerely, Regina M. Pearson Email: sunceria@aol.com Cc: Honorable Steve Pougnet, Mayor of Palm Springs; David H. Ready, Esq., Ph.D., City Manager 31 Margaret Gordon 1945 South Mesa Drive Palm Springs CA. 92264 T 760318-9513 Lcom �'�g8� October 8,2013 Dear Palm Springs Neighborhood Involvement Committee, Vacation Rental Work Group, I'm writing this to you, as I cannot attend the October 9, 2013 meeting. I simply ask that you consider my concerns, as I know these are also concerns of many of my neighbors. I purchased a home in The Mesa fourteen years ago and love the privacy and charm this neighborhood has to offer. Ithas been a stable, quite neighborhood up until around two years ago when many homes starting selling to investors. Since then, many others have opened for business in the Mesa. The homes I'm specifically referring to are large single-family estates that use to be single- family homes with respectful neighbors. This is no longer the case, as many weekends these homes become event homes, with 50 + people, caterers and music. It is like living next to The Ace Hotel. The people living around these homes are treated to loud music, loud conversation, screaming, and lots of extra traffic, late into the wee hours. On special weekends like Coachella Fest and Stage Coach, there are BUSES that arrive and pick up the numerous people staying at the event homes and bring them back to have their own mini after parties at the houses. a2 We have called the hotline, and many of our other neighbors have also. Unfortunately, it has impacted the quality of life for many who live in this neighborhood. My husband and I travel in and out of Palm Springs. We use to consider this neighborhood a quiet, private place where we could rejuvenate and enjoy the beauty of such a special place. That is why we bought in The Mesa. No street lights and the mountains and stars right behind us. The Mesa, like many other neighborhoods i s zoned RESIDENTIAL. I don't understand how this type of business is allowed to operate in the neighborhood. These homes are like Inns. Recently there was a party in The Mesa in a weekend rental home that hosted over 300 people. You can imagine the noise and the parking situation. With a busy real estate market, and a younger demographic in Palm Springs,The City should re-evaluate how to control this. People who buy in neighborhoods like The Mesa and other neighborhoods outside the main commercial district area of Palm Springs decide to for a reason. We have recently heard that many full time residents are moving down valley to get away from this type of thing. It is understandable. To note, I'm not talking about the smaller homes where there are responsible managers/owners that have rules about the number of people they rent to, length of stay and noise restrictions. We have a home directly across the street and this is the case. There have been zero problems with that home. Palm Springs should adopt stricter rules regarding all weekend rentals, and specifically large homes that host weddings/parties/ events. There should be a minimum of at least a four-day stay and the number of persons should be limited at gatherings as is the case in many of the cities in the valley. Music and noise should be curtailed immediately if reported and if not a hefty fine issued. 33 After all, it benefits the city if everyone can enjoy all that Palm Springs has to offer. Sincerely, Margaret Gordon cc: Honorable Steve Pougnet, Mayor of Palm Springs Approved—Palm Springs Neighborhood Involvement Committee— October 10, 2013 19 34 Lisa, because I will be out of town and unable to provide your subcommittee with my public comments, I am requesting that they be reported by you to the subcommittee and included in reports made to city officials. I understand the challenges that your subcommittee faces, but feel that the committee has failed to address several key issues. First, I am too well aware that there are certain vacation rental homes that can be considered "problem properties". That is there are frequent complaints chiefly around the issue of noise from these homes. Having rented vacation rental properties myself and at one time owning a vacation rental, I believe that management companies should bear a large responsibility for renting properties to responsible renters. I would urge the committee to levy fines against management companies that cannot find appropriate ways to alter the misbehavior of renters. For example, a fine of$500 against management companies and against homeowners would, I believe, lead rental companies to become serious about fully informing renters about the need to respect neighbors. I have always been impressed by rental contract terms that spell out potential fines and eviction procedures for failure to abide by rental conditions INCLUDING controlling noise at a rental property. Second, we have learned that the representatives of management companies are often poorly informed concerning the ordinance. Again, the management companies must be responsible for educating their employees. Rental company employees should not have the right to arbitrarily determine whether or not an infraction of the ordinance should be enforced. Perhaps moving the vacation rental program into code enforcement would get better results Larry Fechter 1175 E. Cactus Rd. Palm Springs, CA 92264 Permits, Fees and Contracts: Item 7: Should the last line be negative (i.e., "Such rooms should NOT be included..." ? Furthermore, is this necessary, or could you rely on the building code definition of a bedroom (must have outside egress, smoke detector, etc.). Complaint and Violation Processes: As far as I am concerned, ANY violation should result in a fine and the fine should escalate geometrically (or exponentially?) with the number of violations. The owners are in this for the money, so money is the only thing Approved—Palm Springs Neighborhood Involvement Committee — October 10, 2013 20 that will motivate them to change their behavior. All fines should be levied on the owners, not the guests, as it is the owner's responsibility to screen clients effectively, make sure the guests understand and agree to the rules, etc. As we know from our local rentals, this can be managed quite effectively (2 of the 3 we have no problems with but the 3rd one is a problem with almost every rental). Noise Issues: Any violation should result in a fine. fines should escalate (see above). Notification: Item 17: If this is currently in place it is not being done. No one in our neighborhood has EVER been notified. Also, while it would add burden and expense, simply add a one-time charge for the permit in order to pay for the time and expense. Seems only fair. Item 17a: this is pointless. It occurs after the fact providing no control mechanism. Neighbors should have a say in what businesses are coming to their neighborhood. Thanks for you interest! Verna vema@.norseaodvssey.com Dear Dr. Ready, I strongly urge you to consider the recommendations from the PSNIC committee regarding establishing an official policy regarding vacation rentals in our neighborhoods. As a resident of Movie Colony East we are forced to call the police at least 3-4 times per month due to loud noise after midnight from two vacation rentals across the street. We welcome the activity in the neighborhood and know that weekenders are vital to the tourism industry here in Palm Springs but are concerned about Approved—Palm Springs Neighborhood Involvement Committee— October 10, 2013 21 s the ever-increasing noise which comes each weekend. Thank you, Patrick Sheehan 1257 E. Granvia Valmonte Palm Springs, CA Thank you Lisa. This is great. A lot of work went into creating these recommendations. We have been kept up to date, somewhat, via our neighbor, Lisa Miller, who was in the monthly meetings with you. But I had no idea that such detail was involved. Good work. Great work. It makes us feel that our concerns and complaints are being heard and not just being swept under the carpet in favor of the almighty tourist dollar. As full time residents of Twin Palms we are very concerned about 2 things: the amount of vacation party homes that surround us and the apparent ease of circumventing 100% of the city ordinances that are in place. My husband and I have lived at 1835 Apache Circle in Palm Springs for 13 years. Today we are surrounded with 10 party homes, all of them within 300 feet/3 homes away in every direction from our 4 walls. Those homes are: 1890 Navajo Drive* 1847 Apache Circle** 1025 Apache Road* 1003 E Twin Palms Drive* 987 E Twin Palms Drive* 1086 Apache Road* Approved—Palm Springs Neighborhood Involvement Committee— October 10, 2013 22 1020 Apache Road** 1837 S. Caliente Road 1080 La Jolla Road* 1841 Navajo Circle The * denotes Hot Spot The ** denotes unregistered house Most every weekend of every Summer, Fall and Spring, we are forced to endure the noise generated from overcrowded rental homes, screaming drunk tourists, screaming children and loud thumping music. And it's worse when it's coming at us from multiple directions. With 10 party homes around us, you can imagine our interest in limiting the number of party homes in a single block or multiple block area. Many of the party homes listed above are repeat offenders and all of the repeat offenders, offend constantly, year after year. The other area we are concerned with is homeowners who do not register their homes as vacation party homes. Our neighbor, right next door, runs a party house that is not registered. He lives in Canada and he's hired a "house manager" who checks the tourists in and out and cleans the house after each party. our neighbor is smart; he does not advertise the house via the web and he instructs his renters to say to anybody who asks, that "they are friends of the homeowner and they are staying in the house for free", which is exactly what they have said to the Palm Springs Police when I am forced to call them to stop a pool party or loud music. It seems way too easy to completely circumvent what the city has in place, just by saying that simple little sentence. But its happening right next door, week after week. Approved—Palm Springs Neighborhood Involvement Committee — October 10, 2013 23 38 Thanks again for reading. And thanks for helping to create many possible solutions to this party house problem. Robert Cooper Lisa, It is obvious from your report how much time and effort the committee has done. I agree whole-heartedly with the recommendations of the changes in the fees permits and processes. One item that might be helpful is that you state how much the city collects in current fees in TOT and permits fees but how much more could the city collect if your recommendations are applied. This estimate could bring the message home a bit for some folks when they see the increase. I also agree with your recommendation that the process is inadequately managed, but is this part of a larger problem and is this separate from the other issues in the code and enforcement department? The group did a great job analyzing the issue and the list of recommendations is really a step in the right direction. In other words - "Nice job". Dan Barber Approved—Palm Springs Neighborhood Involvement Committee —October 10, 2013 24 39 �'1 • , 760.323.8628 Fax: 760.323.8631 225 S.Civic Drive,Suite 7 1101�1� Palm Springs, al 92262 www.oranjpalm.com by Palm Springs Rental Agency Thursday,October 10,2013 PSNIC-vacation rental work group Please accept my thanks to the PSNIC work group for their dedication and work to update the vacation rental ordinance and their commitment to finding the resources to make sure that legislation is up to date and enforced.I especially appreciate that the work group includes members representing our industry as part of the solution to a problem that affects many residents in many parts of the city. My feedback on the recommendations(draft 4)is as follows: • The noise issue#15 mentions amplification outdoors and#16 mentions amplified sound indoors o Both items are very ambiguous and almost any activity could fall under that category from a cell phone ringing to a television playing • In the letter you mention the nuisance of daytime noise(children and backyard pool) My concerns with both items relate to the items general vagueness and unspecific items that are already in the current ordinance are not being enforced and can cause problems with all other parts of the legislation. Without further consideration and clarification or at least some constraints on something more tangible or measurable,I believe we will open even more holes in a re-write;putting the whole legislation at risk. Regards, Thomas V.Salinas VP and General Manager Oranj Palm Vacation Rentals Palm Springs Rental Agency Inc. Office:760.323.8628 Approved—Palm Springs Neighborhood Involvement Committee — October 10, 2013 25 40 VALMSAR iy c V N 4 oS • ceMou�c•� 4< C �p l FORS VACATION RENTAL REPORT ATTACHMENT CITY ORDINANCE COMPARISON 41 0 o 0�loetdrt ram , mi**60 MIN AGE REQUIREMENT FOR RESPONSIBLE 21 years Old 21 years old 18 years old 18 years old 21 years old 18 YEARS OLD PERSON TOT TAX IS10%on any TOT TAX IS9%on TOT TAX IS10%on any TOT TAX IS10%on TOTTAXISI2%on TOTTAXIS11.5%on TOT RATE rental under 28 days rental under 30 days any rental under 27 any rental under 30 any rental under 28 any rental under 28 days days_ _ days days —_. _.. . -. -- — - ---- days _ -----AMUAl...__. ANNUAL REGISTRATION ANNUAL REGISTRATION OF OF$100 PER PROPERTY ANNUAL REGISTRATION ANNUAL REGISTRATION OF $60 PER PROPERTY VACATION RENTAL AND AN ANNUAL ANNUAL OF$25 PER PROPERTY REGISTRATION OF $60 PER PROPERTY AND A ONETIME PERMIT/REGISTRATION ! BUSINESS LICENSE OF REGISTRATION OF AND AN ANNUAL $60 AND AN AND ANNUAL $25 TOT PERMIT FEE. $26 NO ANNUAL BUSINESS FEES $31 UNTIL OWNER ADDITIONAL FEES ! BUSINESS LICENSE OF LICENSE OF$121 BUSINESS LICENSE BUSINESS LICENSE SURPASSES 3 $19 PER PROPERTY PER PROPERTY OF$55 PER REQUIRED IF OWNER PROPERTIES ! PROPERTY HAS MORE THAN _T_14RFP DRr1DFRTIFC 1. NAME,ADDRESS, PHONE NUMBER OF OWNER 2. NAME AND PHONE NUMBER OF I SAME AS RM AND INFORMATION REQUIRED LOCAL CONTACT 3. ALSO PROOF OF ON VACATION RENTAL ADDRESS OF RENTAL SAME AS RM SAME AS RM 1 SAME AS RM SAME AS RM GENERAL LIABILITY CERTIFICATE APPLICATION PROPERTY 4. NUMBER INSURANCE OF ONE OF BEDROOMS S. DAY MILLION DOLLARS AND NIGHT OCCUPANCY LIMITS 6. j PERMIT NUMBER SEPARATE ROOM,4 - - -- ---- _ DEFINITION OF A WALLS FROM FLOOR TO j BEDROOM CEILING, 100 SQUARE NO DEFINITION NO DEFINITION NO DEFINITION NO DEFINITION NO DEFINITION FEET AND A BUILT IN CLOSET . ON SITE PARKING ALL PARKING ON- RESTRICTIONS NONE SITE, NO STREET NONE NONE NONE NONE PARKING ALLOWED iA N NO DEVICES OR NO DEVICES OR - NO DEVICES OR NO OUTSIDE EQUIPMENT THAT EQUIPMENTTHAT EQUIPMENT THAT ELECTRONICALLY OUTSIDE NOISE PRODUCE SOUND CAN SAMEASRM PRODUCE SOUND CAN PRODUCESOUND PRODUCED SOUND IS BE USED OUTSIDE BE USED OUTSIDE CAN BE USED ALLOWED NO FROM 10:00PM TO FROM 10:OOPM TO OUTSIDE FROM MATTER WHAT TIME 10:OOAM 1:OOPM 10:00PM TO 8:OOAM OF DAY HOW TO HOTLINE CADENCE HOTLINE CADENCE ', HOTLINE CADENCE HOTLINE CADENCE HOTLINE CADENCE HOTLINE CADENCE VACATIONN RENTAL COMMUNICATION COMMUNICATION COMMUNICATION COMMUNICATION COMMUNICATION j COMMUNICATION PROBLEM 1.OBTAIN NAME ADDRESS AND GOV. ISSUED ID.2.GIVE A COPY OF GOOD INFORMATION REQUIRED. NEIGHBOR BROUCHURE FROM RESPONSIBLE 3. RECEIVE PERSON BEFORE OCCUPY AKNOWLEDGEMENT SAMEASRM SAME AS RM SAMEASRM SAME AS RM SAMEASRM RENTAL THE HE OR SHE IS j LEAGALLY RESPONSIBLE FOR COMPLIANCE WITH CITYORDINANCE4. (RECORDS MUST BE KEPT( FOR 3 YEARS i iA W EACH OCCUPANT ICI MUST BE GIVEN: 1. NAME AND PHONE NUMBER OF LOCAL ' CONTACT 2. MAXIMUM NUMBER OF DAY INFORMATION GIVEN TO AND NIGHT GUESTS SAME AS PD, ALSO "RESONSIBLE PERSON" 3.TRASH PICKUP NOTIFICATION BEFORE THEY OCCUPY , NOT SPECIFIED DAY4..COPYOF NOT SPECIFIED ! NOT SPECIFIED NOT SPECIFIED THAT NO OUTSIDE THE RENTAL UNIT. CITY NOISE !MUSIC IS ALLOWED REGULATIONS 4. NOTIFICATION OF POSSIBLE FINES AND CITATION FOR '! LOUD OR UNRULY PARTIES OR GATHERINGS , AVALIABLE 24 AVALIABULTY AND HOURS/7 DAYS A AVALIABLE 24 AVALIABLE 24 RESONSCTIMETI FFOOR LOCAL'' DAYS ABW WEEK,RESPONSE TIME 45 MINT WEEK,60 MIN DAYS BW WEEK,405 MINT' HOURS/7 DAYS A HOURS/7 DAYS A HOURS/7 DAYS A - - -- --- - - AVALIABLE 24 CT WEEK,45 MIN WEEK,45 MIN WEEK,45 MIN RESPONSE TIME RESPONSE TIME RESPONSE TIME RESPONSE TIME RESPONSE TIME RESPOND WITHIN RESPOND WITHIN RESPOND WITHIN 45 RESPOND WITHIN 45 AFTER HOTLINE !, RESPOND WITHIN 45 60 MINUTES TO RESPOND WITHIN 45 45 MINUTES TO MINUTES TO HALT MINUTES TO HALT NOTIFICATION LOCAL MINUTES TO HALT OR HALT OR PREVENT MINUTES TO HALT OR HALT OR PREVENT OR PREVENT OR PREVENT PREVENT RECURRENCE PREVENT RECURRENCE CONTACT MUST: OF CONDUCT OF CONDUCT RECURRENCE OF RECURRENCE OF RECURRENCE OF RECURRENCE OF CONDUCT_ - _ _ CONDUCT _ CONDUCT CONDUCT FAILURE OF LOCAL OWNER WILL BE CONTACT TO RESPOND IN REQUIRED TIME WILL SUBJECT TO SAME AS RM SAME AS RM SAME AS RM ! SAME AS RM SAME AS RM RESULTIN : ADMINISTRATIVE FINE AFTER 3 OR MORE ACTION TAKEN AFTER VIOLATIONS CITY SAME AS RM SAME AS RM SAME AS RM SAME AS RM SAME AS RM REPEATED VIOLATIONS MANAGER MAY REVOKE PERMIT Fr MUST BE STORED OUT ORDINANCE TRASH REQUIREMENTS OF SIGHT IN PROPER SAME AS RM SAME AS RM SAME AS RM SAME AS RM REQUIRES"HIGHEST CONTAINERS LEVEL OF SERVICE" TRASH PICKUP VACATION RENTAL PERMIT MUST BE COPY OF PERMIT POSTING OF RENTAL POSTED IN RENTAL AND I MUST BE POSTED IN PERMIT/GOOD A COPY OF GOOD I'i SAME AS RM SAME AS RM SAME AS RM SAME AS RM CONSPICUOUS PLACE NEIGHBOR BROUCHURE NEIGHBOR BROUCHURE MUST BE GIVEN TO 'I, WITHIN UNIT RESPONSIBLE PERSON 'I PERMIT NUMBER MUST POSTING OF PERMIT APPEAR ON ANYTHING NUMBER ON ALL THAT PROMOTES THE SAME AS RM SAME AS RM SAME AS RM SAME AS RM SAME AS RM AVAILABILITY OR ADVERTISEMENTS I EXISTENCETHE VACATION UNIT CITY MA AGOER AN _.--- � ---. -__ _---- ---__ -.-- �- - IMPOSE ADDITIONAL VIOLATIONS USE CONDITIONS ON SAME AS RM SAME AS RM SAME AS RM 1 SAME AS RM SAME AS RM RENTAL TO ENSURE VIOLATIONS ARE AVOIDED CITY DEPARTMENTTHA7 CODE COMPLIANCE CODE COMPLIANCE ISSUES CITATIONS CODE COMPLIANCE CODE COMPLIANCE CODE COMPLIANCE FINANCE L. Cn ANY PERSON WHO USES OR ALLOWS THE USE OF ISSUED IF ANY RESIDENTIAL VIOLATION OF THE PROPERTY IN ! ORDINANCE: 1ST Ali VIOLATION OF THE $250 2ND$500 PROVISIONS OF THE ISSUED IF ANY 3RD$1000, FINES ORDINANCE IS VIOLATION OF THE FOR RENTING !i ANY VIOLATIONS ADMINISTRATIVE GUILTY OF A ORDINANCE: 1ST$500 WITHOUTA ARE CONSIDERED A CITATION IS ISSUED MISDEMEANOR. 1ST ADMINISTRATIVE 2ND$7503RD$1000, I PERMIT: 1ST$1000, FINES AS OUTLINED IN MISDEMEANOR, IF ANY VIOLATION VIOLATION IS A CITATION FINES FOR RENTING 2ND$1500,3RD CHAPTER 1.09 OF THE PUNISHABLE AS SET OF THE ORDINANCE: "COURTESY '! WITHOUT PERMIT: ��, $2500 "ALL MUNICIPAL CODE FORTH IN THE INDIO 1ST$100 2ND$250 j CITATION'2ND$250 1ST$1000,2ND$1500, NEWLY MUNICIPAL CODE 3RD$500 j 3RD$500 FOR 3RD$2500 REGISTERED OPERATING RENTALS MUST FILL WITHOUT A PERMIT: OUT TOT RETURNS ', OPERATOR WILL FOR THE PRIOR, RECEIVE A COURTESY THREE YEARS NOTICE,THEN MUST TAKE OUT PERMIT, PAY ESTIMATED UNPAID TOT ANY PERSON ', CONVICTED OF AN INFRACTION SHALL FOR EACH SEPARATE ANY INDIVIDUAL VIOLATION, BE SUBJECT CONVICTED OF A CIVIL TO: 1ST CITATION$500 FINE 15 SUBJECT TO A INFRACTION CITATION 2ND CITATION$750 SAME AS RM FINE OF: 1ST$250 2ND SAME AS RM SAME AS RM NONE 3RD$1000 4TH $1500. FINES FOR OPERATING $500 3RD$7504TH WITHOUT RENTAL $1000 PERMIT: 1ST$1000 2ND $1500 3RD$2000 4TH $5000 ,C. D7 INFRACTION CITATION '. ISSUED ON SAME DAY AS YES SAME AS RM SAME AS RM SAME AS RM SAME AS RM NONE ADMINISTRATIVE CITATION CINDY GOSSELIN CONTACTS CONTRACTOR- SAME AS RM SAME AS RM SAME AS RM SAME AS RM SAME AS RM VACATION RENTAL COMPLIANCE DC. COMPARISON OF OCCUPANCY REQUIREMENTS RANCHOMIRAG€ PALM DESERT l_AQUINTA. INDIO ..-CATHEDWICIM ". PAW SPRINGS BEDROOMS OVERNIGHT DAYTIME BEDROOMS OVERNIGHT DAYTIME BEDROOMS OVERNIGHT DAYTIME BEDROOMS OVERNIGHT DAYTIME BEDROOMS OVERNIGHT DAYTIME BEDROOMS OVERNIGHT DAYTIME a-STUDIO 2 8 0-STUDIO 2 4 0-STUDIO 2 8 o-STUDIO 2 8 D-STUDIO 2 4 1 2 8 1 2 4 1 2 8 Only overnight restrictions,two 1 2 8 1 4 6 2 4 8 2 4 8 2 4 8 persons per bedroom plus a 2 4 8 2 6 9 3 6 12 3 6 12 3 6 12 number that will not exceed 3 6 12 3 8 12 4 8 16 4 8 16 4 8 16 two persons per bedroom.No 4 8 16 4 10 15 daytime occupancy restrictions. 5 10 18 5 10 20 5 10 18 5 10 18 5 12 18 6 12 18 6 12 20 6 12 20 6 12 18 6 14 21 7 14 18 7 14 20 7 14 20 7 14 18 7 16 24 Overnight(1D:01pm-6:59am) Overnight(10:01pm-10:OOam) Overnight(10:01pm-6:59am) Overnight(10:01pm-6:59am) Daytime(7:OOam-10:00pm) Daytime(7:OOam-SO:OOpm) Daytime(7:00am-10:00pm) . 00 GFpplM S. � I u in * I Oq<lFO it VACATION RENTAL REPORT ATTACHMENT VRC CONTRACT AMENDMENT 49 AMENDMENT NO. 1 TO CONSULTING SERVICES AGREEMENT Vacation Rental Compliance This Amendment No. 1 to the Consulting Services Agreement ("Amendment') is made and entered into this 5T" day of February, 2014, by and between the City of Palm Springs, California, a California Charter City ("City'), and Vacation Rental Compliance, ("Consultant'). RECITALS A. City and Consultant have entered into a Consulting Services Agreement, for the services of vacation rental ordinance compliance and enforcement ("Agreement'). B. City and Consultant are agreeable to modifying certain terms and conditions to the Agreement pursuant to the terms of this Amendment. AGREEMENT In consideration of the promises and covenants contained in this Amendment and other good and valuable consideration, the City and the Consultant agree: SECTION 1. Section 4.4 of the Agreement (titled `Term"), is amended to read: 4.4 Term. Unless earlier terminated in accordance with Section 4.5 of this Agreement, this Agreement shall continue in full force and effect for a period of three (3) years commencing on January 2, 2014, and ending on January 2, 2017, unless extended by mutual written agreement of the parties. SECTION 2. Exhibit A (titled Scope of Services/Work including Schedule of Fees and Schedule of Performance) are hereby superseded in their entirety and replaced with Exhibit A Scope of Services and Compensation, attached hereto and incorporated herein. SECTION 3. City and Consultant agree that the terms of the Agreement, shall remain unchanged and in full force and effect, except as specifically provided in this Amendment. [SIGNATURES ON THE FOLLOWING PAGE] Consulting Services Agmt. Amend. No. 1 Vacation Rental Compliance r Page 1 of 2 J 0 In witness whereof, City and Consultant have executed and entered into this Amendment as of the date first written above. CITY OF PALM SPRINGS, CONSULTANT A California Charter City Vacation Rental Compliance David H. Ready, City Manager Cindy Gosselin, President/CEO ATTEST: APPROVED AS TO FORM: James Thompson, City Clerk Douglas C. Holland, City Attorney /// 111 111 111 Consulting Services Agmt. Amend. No. 1 Vacation Rental Compliance 51 Page 2 of 2 i EXHIBIT "A" , CONSULTANT'S SCOPE OF SERVICES/WORK Including, Schedule of Fees And Schedule of Performance ,t 52 SCOPE OF WORK Vacation Rental Compliance is to provide contact services to enforce the Vacation Rental Regulations and laws: • Identify properties and rental agencies that are not registered or have a business license. • Contact those identified properties and rental agencies and bring them into compliance. • Coordinate with Finance wall new registered properties and all properties that exit the program. • Prepare files for all new registrations and issue permits. • Prepare rental agency billings for renewal. • Keep an excel worksheet with all properties cross-referenced to their on-line registration ID. • Contact properties who still have not posted their TOT permit on their advertisement. • Investigate any leads from the public regarding possible unregistered vacation rentals. • Work with Code Compliance to issue citations to those individuals who refuse to comply. • Review all calls received by Cadence Communications and Palm Springs Police Department and work with Code Compliance and the Police department to identify violations and issue the proper citations. • Review TOT files and identify properties who have reported "zero collected" TOT for over two years and compare that to the information compiled on the Owner's website —this is useful for future audits of"by owner" vacation rentals. • Prepare the following reports: 1. Prepare/update log of phone calls received by Cadence Communication and Palm Springs Police Department by property, indicating the reason for the call and how it was resolved. 2. Keep master list of properties current. 3. Prepare phone list and submit to Cadence Communication once a week. _1 5 3 SCOPE OF WORK Vacation Rental Compliance is to provide contact services to enforce the Vacation Rental Regulations and laws: • Identify properties and rental agencies that are not registered or have a business license. • Contact those identified properties and rental agencies and bring them into compliance. • Coordinate with Finance all new registered properties and all properties that exit the program. • Prepare files for all new registrations and issue permits. • Prepare rental agency billings for renewal. • Keep an excel worksheet with all properties cross-referenced to their on-line registration ID. • Contact properties who still have not posted their TOT permit on their advertisement. • Investigate any leads from the public regarding possible unregistered vacation rentals. • Work with Code Compliance to issue citations to those individuals who refuse to comply. • Review all calls received by Cadence Communications and Palm Springs Police Department and work with Code Compliance and the Police department to identify violations and issue the proper citations. • Review TOT files and identify properties who have reported "zero collected" TOT for over two years and compare that to the information compiled on the Owner's website —this is useful for future audits of"by owner" vacation rentals. • Prepare the following reports: 1. Prepare/update log of phone calls received by Cadence Communication and Palm Springs Police Department by property, indicating the reason for the call and how it was resolved. 2. Keep master list of properties current. 3. Prepare phone list and submit to Cadence Communication once a week. 1 53 • Advocacy work with community, property owners and rental agencies as necessary and or required. • Attend stakeholder meetings, City Council Sub-Committee and City Council meetings, and other meetings as required. • Assist in the development of vacation rental ordinance and regulation amendments, and modification to the current vacation rental processes as necessary. • Other tasks and duties related to vacation rental compliance as requested by the contract officer. CITY REQUIREMENTS Following are the work requirements agreed upon by the City: • Workstation at City Hall — Computer, City email address, and phone needed for compliance efforts. • Review all current registered properties' work folders to help populate our cross- reference worksheet. • List of all currently registered properties and all licensed rental agencies. • Access to Metroscan. • Remote access to city email — VPN is preferred. • Ability to call in and access phone messages. • Access to one specified Code Compliance Officer—this is critical to the success of the program. SCHEDULE OF FEES Fixed hourly rate is $60.00 per hour, not including travel time. SCHEDULE OF PERFORMANCE Perform all tasks by the mutually-agreed upon schedule. -2- 1 1� pALM spy iy c u m �O„au*coy C4<fFOANP» VACATION RENTAL REPORT ATTACHMENT PROTECT DEEPWELL RECOMMENDATIONS 55 Protect Deepwell Grassroots Advocacy 1175 E. Cactus Road, Palm Springs, CA 92264 Phone 760-409-5950 ProtectDeepwell@gmail.com Tom Stansbury, Chair Recommendations for enhancement of the Vacation Rental Ordinance We appreciate all the hard work that has already been done by Council, PSNIC and City staff to enhance enforcement of the vacation rental ordinance. The following are several additional recommendations that are designed to be more pro-active in nature. We believe that, while each of these is a small measure, each would have a very positive impact on improving the vacation rental problems extant throughout the City, while having no impact on income or tax collection. • Delete the provision for"+2".The present system of allowing+2 encourages over-occupancy, which further exacerbates noise and parking problems. No hotel would deliberately allow over- occupancy, and the City should not encourage this at vacation rentals either. Deletion of the+2 was part of the original PSNIC VR Workgroup recommendations that were subsequently approved by the voting members of PSNIC. But it our understanding that it has been removed from the current recommendations. • Require face-to-face contact on the first complaint Property manager should be responsible to make face-to-face contact on the first complaint(Vacation Palm Springs already does this). If manager doesn't physically go to property, how can they know what is actually going on there, and how can any citation be given on the first offense as is the new policy?The current recommendation of face-to face on the 2"O complaint would render the provision of citing on the first violation meaningless.There cannot be enforcement if there is no one there to witness the violation. In addition,a physical presence and face-to-face discussion upon the first complaint would substantially reduce the likelihood of subsequent complaints. Isn't that really what we all (including property managers)want? "An alternate to face-to-face contact on first complaint would be to reduce the required response time on first-complaint to 15 minutes.A phone call to the responsible party would not take 45 minutes to complete. If manager is unable to reach the responsible party by phone,then a quick call back from the manager to the hotline would allow the original 45 minutes to complete a face-to-face contact at the house. • Disconnect outdoor speakers. Since outdoor amplified music is not permitted under any circumstances in vacation rentals, all outdoor speakers should be required to be disconnected during rental periods.This would eliminate any possibility that guests would use them, and thereby reduce the number of complaints. • Clarification of language regarding outdoor amplified sound. If the original intent was to have no amplified sound audible outdoors(or at the property line),then the ordinance language could easily be re-written to clarify this point. For example, does amplified sound produced inside the house come under this provision?This should be clarified so that the rules are clear to everyone. 56 Protect Deepwell Precedents: Limits to Vacation Rentals in Residential Neighborhoods Many popular vacation destinations have created ordinances that forbid or limit short term vacation rentals in residential neighborhoods. These are enacted to protect the residential neighborhoods and preserve homeowner rights to the peaceful enjoyment of their homes. As is well stated by the"resort dwellings" ordinance in the City of Venice, Florida, "City Council finds that resort dwelling rental activities in single-family neighborhoods affects the character and stability of a residential neighborhood. The home and its intrinsic influences are the foundation of good citizenship. The intent of these regulations is to prevent the use of single family residences for transient purposes in order to preserve the residential character of single-family neighborhoods." The following are some examples of successful best practices: Carmel by the Sea No home or subordinate unit may be rented for less than 30 consecutive days. Maui County, Hawaii Transient vacation rentals allowed only within certain business zoning districts and certain designated "destination resort areas". Santa Fe, New Mexico Limits "up to 350"short term rental permits for residential properties. Mendocino County, California Requires county to maintain a ratio of"thirteen (13) long term residential dwelling units to one(1)single unit rental or vacation home rental". Canon Beach, Oregon Maintains a 92 permit cap on the number of transient rental permits that will be issued by the city. Each has a five year permit. Upon expiration or sale of property, a new permit is granted based on lottery. San Luis Obispo, California Vacation rental ordinance determines that "(No)residential vacation rental shall be located within 200 linear feet of a percel on the same block on which is located any residential vacation rental or other type of visitor-servicing accommodation that is outside of the Commercial land use category." It is clear that communities that have a commitment to the health and well being of residential neighborhoods have and can enact ordinances to protect residents. Examples above are a few of the models available. We trust that the City of Palm Springs will demonstrate the same commitment to protecting tax paying residents by eliminating or limiting transient vacation rentals in residential neighborhoods. 57 Meeting with David Ready Transient Vacation Rentals in Residential Neighborhoods 1/28/14 Like most residents, we chose Deepwell 15 years ago because it was a quiet, residential neighborhood. I assumed my right to the peaceful enjoyment of my home. NEIGHBORHOOD IMPACT. As you know, 1 out of every 7 houses in Deepwell is now a transient vacation rental house. More on the way. The character of the neighborhood has been eroded and the impact is corrosive. There is more noise, more cars on streets, more strangers speeding through our residential neighborhood. I'm extremely disappointed by the lack of City oversight and management of this issue. It's obvious from looking at the complaint to fine ratio that this issue has been severely neglected for years. HOSPITALITY INDUSTRY IMPACT. In addition to harming neighborhoods, this proliferation of short- term rentals deprives hotels and inns of possible customers. This is a key industry sector and, like neighborhoods, deserves support from the City. IDEAL: FORBID TRANSIENT RENTALS IN RESIDENTIAL NEIGHBORHOODS. I would like to see an ordinance forbidding short-term vacation rentals in residential neighborhoods. If not forbid, significantly limit amount of transient rentals in residential neighborhoods. There are significant precedents: Cannel, Maui County, Santa Fe, Mendocino County, Canon Beach, OR, Mammoth Lakes and San Luis Obispo (see attached). Many of my neighbors agree with this position. PROPOSED ORDINANCE: I understand that work has been done to strengthen the current ineffectual ordinance. I'm glad to see the following: • Minimum age of 25 • Specific definition of bedroom • Limit occupancy to 2x bedrooms • In person response of Local Contact(LC) • Code Enforcement monitoring • No Courtesy Warning Needs change or specificity: • No exterior sound amplification allowed at any time • Tenant should sign acknowledgement that they are responsible for compliance(RM) • Specify time frame of response by LC • Face to face discussion on first complaint • Second complaint in 24 hours grounds for fine or eviction • Failure of Local Contact to respond, homeowner WILL be charged for police time • Report to City Manager after 3 or more disturbances (RM) Maximum number of daytime occupants should not exceed bedroom determined occupancy • Specify: City Manager or designee impose additional use conditions after violations • Any violation of ordinance is grounds for suspension (RM) • Increase penalties to $500 first violation, $750 second citation, $1000 for third and subsequent violations (RM) 58 Page 2 Transient Vacation Rentals in Residential Neighborhoods EVALUATION OF NEW ORDINANCE: As you know,the success or any ordinance or organization is based on clearly stated ground rules, consistent monitoring and accountability. Who will provide active monitoring of the new ordinance? What metrics will be used to measure success or failure? How often will this data be monitored by City Manager and Council? Will the data be available to citizen groups? Thank you for agreeing to review the success of the new ordinance in 6 weeks. We look forward to a more peaceful Deepwell. Ellen Lockett 59