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10/5/2016     PS City Council Ban on STR Apartments

Palm Springs bans vacation rentals in apartment buildings.  Vacation rentals in apartment buildings must be phased out in two years.
Check out this story on desertsun.com: http://desert.sn/2dKfcg1

5/21/08               Doug Holland states, “We do look at the rental use as a use that is permitted under the code in regards to short term rental or vacation rentals”.

5/21/08               Ron Segal representing ONI says his neighborhood group’s initial preference was “to pass a referendum to ban Vacation Rentals altogether” but they felt they had to compromise.

5/21/08               Draft Event House Ordinance:  Doug Holland states: “We have attempted to devise an ordinance that assume that the event house would continue as an ‘incidental’ use of property…”

7/30/08 Ginny Foat asks the city attorney; “What role does the City have in someone’s ability to rent their private property” Doug Holland answers; “This is a single family neighborhood, these properties are located in single family neighborhoods.  There has been an argument that has been made, and it is a credible argument, that a single-family residence can only be used for a permanent residence.  And a permanent residence is defined by our code as a tenancy that is at least a month-to-month tenancy.  We basically say that a rental of 28 days or less constitutes a hotel use because we are going to require them to pay a TOT.  So there is an argument that this is not a single-family use of property.  But this City like many other cities, especially cities that in tourist desirable areas have recognized this is an issue so they come up with different ways of dealing with this issue.”

 

7/30/08               Lee Weigel asks the city attorney why we need an ordinance, “Isn’t there any number of ordinances that restrict noise and disruption?”  Doug Holland answered:   “The primary issue we have is that, as some of the residents have pointed out, we do have somewhat of a unique creature in the vacation rental, these are uses that one can question whether it is really appropriate in a residential or single-family neighborhood.  In recognition of the fact that these are uses that we are trying to figure out how to make them compatible and work with neighboring properties there was a need to try and make sure we were identifying an appropriate standard of conduct that we expected from those people who were renting and occupying the units.  We have experience with a great deal of noise problems from vacation rentals.  The idea here was to try and assure the neighboring residents that we were adopting regulations that were going to address those issues…”

7/30/08               Doug Holland explains, at the beginning of his staff report; “This ordinance deals with what we describe as Event Houses. It’s a sort of a use that we believe slowly insinuated itself into the city repertoire of potential uses because it was viewed at least initially as an incidental use.  The nature of this use expanded such that it really warrants some attention to trying to regulate it and deal with it at this level.”

7/30/08               Doug Holland say, in regards to Event Houses;  “The idea was this is a classic case of where what we are trying to do is identify certain activities that are inconsistent with the idea a single-family neighborhood.  And how do we insure that it going to be properly meshed with that neighborhood so as to minimize the impact that that activity is going to have on that neighborhood”.

Current Full Palm Springs Vacation Rental History (3 hours 40 minutes)
0:01 2/8/06 Docket Review: Pougnet in his comments, suggest staff meets with large rental companies (only).  He mentioned that all of the council members have been hearing complaints on the STR issue.  He mentioned he had already talked to several Short-term Rental Companies.
0:45 4/26/06 Docket Review:  Pougnet reports that he had met with 4 major rental companies on (4/25/06).  They provided ‘wonderful’ recommendations.  Pougnet refers to council discussions 5 or 6 years ago, but he is not specific.  The VR companies provided a memo to the City Manager with ‘pinpointed and bulleted memo’.  Pougnet says he feel discussions can continue without putting it on a study session agenda. He reports that the rental companies feel the city is losing 1 to 2 million dollars a year in TOT from owner/rentals.  The VR companies have come up with a process and have offered to work with the finance department, to identify these ‘rent by owners’ so they may be taxed.
2:17 2/7/07 Councilmembers Comments and Reports:  Pougnet thanks staff for the Vacation Rental report (dated 2/1/07).  He mentioned that there was money budgeted last year to support the Finance department in collecting TOT from STRs that are not listed and paying their taxes.  He mentions this is a great start to ‘enforcement’, apparently meaning tax enforcement.
2:54 3/14/07 Joint meeting with Office of Neighborhood Involvement Subcommittee.  Ron Segal gave a report of the ONI’s code compliance subcommittee, which dealt with Short-term Vacation Rentals, (STRs).  He mentioned that in 2001 his neighbor association was formed in response to two STRs in his neighborhood.  He mentioned that many other residents felt the same, and when ONI was formed, problematic STRs were their highest priority.  He noted added code enforcement has been helpful in code enforcement issues, except in regards to STRs.  The Code enforcement officers did not work during the peak problem times, (weekend).  The police had to be used, and it became a low priority for them.  Nuisances were ameliorated, but no record was kept to target repeat offenders.  The enactment of the administrative citation helped, but it could only cite the renter, not the owner.  Mr. Segal felt that it was the owner’s causing the problem.
He mentions the Internet gave owners new ease in renting out their properties, often without any meeting or vetting of clients.  But it also gave the city the ability to locate and track hundreds of STRs, and make them come into compliance in terms of license and TOT.  Most of these were independent and not rented through agencies.  They tried to come up with guidelines for STR.  The subcommittee approached the various VR agencies and was rebuffed by them.  They did not want to participate in listing their inventory on a ‘master-list’.  Mr. Segal recommended every STR have a phone number of the owner or responsible person.  At this time it was voluntary and only done by select agencies.  He recommended the need for a citation record to track problem houses by address.  He recommended a comprehensive ordinance.
It was stated that after crime and safety, STR problems are the most complained about issue.
Pougnet reiterated the meeting that had taken place with the VR agencies; he mentioned that David Ready did attend those meetings.
David Ready gave a report, ‘The focus needed to be on the enforcement’.  And to find illegal STRs so they are paying TOT.  He announced staff was working under the current ordinance.  ?  David ready is continuing to work with the VR agency and ONI.  He asks council consider to changes to the ordinance.  Ready could produce a model ordinance.
18:42 4/4/07 Councilmember Comments:  Ron Oden asks for an update on how the city is handling noise in Short-term Rentals.  Police Chief gives a report on administrative citations.
24:15 5/21/08 Draft Event House Ordinance:  ‘Pseudo study-session’ to get feed back on the proposed new ordinance.
25:11  City attorney states ‘We have attempted to devise an ordinance that assume that the event house would continue as an ‘incidental’ use of property…”
He asks the council whether they want to continue to view them as such.  If not, then they should be prohibited by a new ordinance.   He then goes into possible restrictions and options if the council should decide to continue under incidental use.
28:46 Doug Holland explains the bifurcating of the Event House and Vacation Rental ordinances.
29:23 Event House Ordinance:
33:32 Council deliberations on Event House Ordinance.

37:21 Councilmember Weigel states “That as a policy this council has decided that this is important as a city that we should protect our citizens and their right to quiet enjoyment of their own property”.47:17  Vacation Rental Ordinance:

48:08 Doug Holland states, “We do look at the rental use as a use that is permitted under the code in regards to short term rental or vacation rentals”.

49:30 Public testimony:
Ron Segal representing the ‘angry residents of Palm Springs’.  ‘In meeting after meeting the code enforcement committee for a period about 2 and ½ years we heard from the neighborhoods about the disturbances and sometimes havoc being caused by vacation rental and event houses.”

51:54 Ron Segal representing ONI says his neighborhood group’s initial preference was “to pass a referendum to ban Vacation Rentals altogether” but they felt they had to ‘compromise’.

53:06 Mr. Segal states that none of the issues were included in the ordinance. He said it was assumed the Vacation Rental Industry would no approve of them, so they agree to a reluctant compromise.

59:59  Mike Mclean gives his report reporting for the Vacation Rental Industry.  500 properties 2006 2007 TOT = $1,500,000.    10% of TOT.   He states the industry has identified for the city, 692 STR operators who were not registered.
1:05:08: Mr. Mclean states that all problems can be attributed to small owner/operators who do not adhere to the industry standards.  But for them, there would be few problems, and an ordinance would bring them into compliance and solve all problems.
1:13:02 Public Comment
1:35:20 Council deliberations
1:41:52 Doug Holland describes how the ordinance was meant to make it ‘desirable’ for an owner to work within an agency.
1:56:27 7/30/08 Public Comment:  there were numerous citizens who made public comment against vacation rentals.
2:18:43 Pougnet berates citizens for complaining about the process
2:19:55 Proposed Ordinance Relating to Vacation Rentals:
2:20:26 David Ready starts the staff report stating that the process was a two year inclusive process that involved the industry, neighborhood groups and council.
2:24:47 Doug Holland admits that there is a major ‘noise’ issue, and that these short-term rentals have the potential to cause neighborhood disruption.
2:28:46 Lee Weigel asks the city attorney why we need an ordinance, “Isn’t there any number of ordinances that restrict noise and disruption?”  Doug Holland answered:   “The primary issue we have is that, as some of the residents have pointed out, we do have somewhat of a unique creature in the vacation rental, these are uses that one can question whether it is really appropriate in a residential or single-family neighborhood.  In recognition of the fact that these are uses that we are trying to figure out how to make them compatible and work with neighboring properties there was a need to try and make sure we were identifying an appropriate standard of conduct that we expected from those people who were renting and occupying the units.  We have experience with a great deal of noise problems from vacation rentals.  The idea here was to try and assure the neighboring residents that we were adopting regulations that were going to address those issues…”
2:36:45 Ginny Foat asks the city attorney; “What role does the City have in someone’s ability to rent their private property” Doug Holland answers; “This is a single family neighborhood, these properties are located in single family neighborhoods.  There has been an argument that has been made, and it is a credible argument, that a single-family residence can only be used for a permanent residence.  And a permanent residence is defined by our code as a tenancy that is at least a month-to-month tenancy.  We basically say that a rental of 28 days or less constitutes a hotel use because we are going to require them to pay a TOT.  So there is an argument that this is not a single-family use of property.  But this City like many other cities, especially cities that in tourist desirable areas have recognized this is an issue so they come up with different ways of dealing with this issue.”
3:05:52 Proposed Ordinance Relating to Event Houses:
3:06:18 Doug Holland explains, at the beginning of his staff report; “This ordinance deals with what we describe as Event Houses. It’s a sort of a use that we believe slowly insinuated itself into the city repertoire of potential uses because it was viewed at least initially as an incidental use.  The nature of this use expanded such that it really warrants some attention to trying to regulate it and deal with it at this level.”
3:12:09 Doug Holland say, in regards to Event Houses;  “The idea was this is a classic case of where what we are trying to do is identify certain activities that are inconsistent with the idea a single-family neighborhood.  And how do we insure that it going to be properly meshed with that neighborhood so as to minimize the impact that that activity is going to have on that neighborhood”.