ACTION: 1) Waive the reading of the text and introduce by title for first reading Ordinance No. 1907, “AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING AND RESTATING CHAPTER 5.25 OF THE PALM SPRINGS MUNICIPAL CODE RELATING TO VACATION RENTALS,” amending the ordinance as follows: 

i)          Section 5.25.020(a) to read:  The primary use of single-family and multi-family dwelling units in the City of Palm Springs is the provision of permanent housing for residents of the City who live and work in the City. Vacation Rentals and Homesharing are not uses specifically recognized in the City’s Zoning Ordinance, nor are these uses identified as uses permitted in single-family or multi-family zones. Vacation Rentals and Homesharing are similar in character and use as hotels and other commercial short term uses and can only be permitted in single-family or multi-family zones if such uses are ancillary and secondary to the residential use of property.   

ii)         Section 5.25.020(b) to read:  Incidents involving excessive noise, disorderly conduct, vandalism, overcrowding, traffic congestion, parking congestion, and the accumulation of refuse, require response from police, fire, paramedic, and other City services associated with this secondary, ancillary, commercial use escalates the demand for City services, create adverse impacts in the residential areas of the City, and adversely affects the City’s residential neighborhoods.  Vacation Rentals and Homesharing use in residential  neighborhoods may have effects that can best be addressed through an appropriate city regulatory program. 

iii)        Section 5.25.020(c) to read:  The purpose of this Chapter is to establish a regulatory program for Vacation Rental and Homesharing lodging, with appropriate standards that regulate vacation rental of residential property, minimize adverse effects of vacation rental uses on surrounding residential neighborhoods, ensure that vacation rentals and homesharing are ancillary and secondary uses of residential property consistent with the provisions of the City’s Zoning Ordinance, preserve the character of neighborhoods in which Vacation Rental and Homesharing uses occur, and 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. 

iv)        Section 5.25.020(e) to read:  The adoption of a comprehensive code to regulate issuance of, and attach conditions to, vacation rental certificates for Vacation Rental and Homesharing lodging within single-family residential neighborhoods and the related use of residential property  preserves the public health, safety, and welfare.  This Chapter  provides a permitting process and imposes operational requirements consistent with the ancillary and secondary status of Vacation Rentals and Homesharing, for the purpose of minimizing the potential adverse impacts of transient uses on residential neighborhoods. 

v)         Definition of “Business Entity” to read: “Business Entity” means a corporation, partnership, or other legal entity that is not a natural person or a personal or family trust or a limited liability company consisting solely of natural persons. 

vi)        Definition of “Cluster or Compound” to read: “Cluster or Compound” means any two or more Vacation Rentals that operate on a unified or shared basis where residents of such Vacation Rentals have exclusive access to more than one Vacation Rental and/or the facilities of such Vacation Rentals, including by way of example, a swimming pool, tennis court, or cooking facilities. 

vii)       Definition of “Owner” to read: “Owner” means the natural person or persons who is/are the owner of record of the Property.  The term “Owner” also includes a personal or family trust consisting solely of natural persons and the trustees of such trust or a limited liability company and the members of such company, insofar as the disclosure requirements pursuant to Section 5.25.085 are satisfied.  The term “Owner” does not include a Business Entity. 

viii)      Section 5.25.040(b) to read: A Vacation Rental Registration Certificate shall not be issued to any Business Entity.  A natural person shall only be issued, and can only maintain, one Vacation Rental Registration Certificate at any time.  Renewals of Vacation Rental Registration Certificates issued on or after November 24, 2016 to a Business Entity shall terminate on March 1, 2017; a renewal of a second Vacation Rental Registration Certificate, or more, issued to a natural person shall terminate on March 1, 2017.  Notwithstanding any provision to the contrary in Subsection (a) or this Subsection (b) of this Section, any natural person who has a financial interest in two or more Vacation Rentals subject to current and valid Vacation Rental Registration Certificates as of November 30, 2016, may continue to operate and maintain no more than two (2) such Vacation Rentals so long as such Vacation Rentals are operated and maintained in full compliance with this Chapter. 

ix)        Section 5.25.070(b) to provide for 32 Contracts, and for designation of five persons. 

x)         Section 5.25.070(c) to read: The Owner shall limit overnight occupancy of the Vacation Rental unit to a specific number of occupants, with the maximum number of occupants as no more than two (2) persons per bedroom within each Vacation Rental unit and a maximum of no more than eight (8) persons total within the Vacation Rental unit, except that Owner may allow up to two (2) minor children, age 12 or under, to occupy the Vacation Rental in addition to the maximum number of occupants otherwise provided in this Subsection. The number of bedrooms in a Vacation Rental shall be verified by the Enforcement Official using County Assessor and/or City Building records, prior to the issuance of a certificate. The Owner shall also limit the total daytime occupancy of the Vacation Rental unit to a specific number of occupants not to exceed an amount determined by adding the total overnight occupants to a number equal to fifty percent of the overnight occupants, except the total number of daytime occupants shall not exceed twelve (12) persons.  No more than one (1) automobile per bedroom shall be allowed to park on the street for each Vacation Rental unit and no more than two (2) additional automobiles may be parked in the street during daytime occupancy for daytime occupants. Advertising and/or renting one or more Vacation Rentals as part of a cluster or compound  is prohibited. 

xi)        Section 5.25.070(h) modifying “rental agreement” to “written contract.” 

xii)       Section 5.25.070(i) to read: 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, and when requested by the City Enforcement Official, evict one or more of the guests. For the purpose of this Subsection and Subsection (j) below, the phrase “in a timely and appropriate manner” shall mean in-person contact within thirty (30) minutes for any call from the Enforcement Official or Hotline. 

xiii)      Add to Section 5.25.070(l) to post signage on the inside of each entry door or in a conspicuous location near each entry door.

xiv)      Amend Section 5.25.070(t) to read:  Owner shall procure, maintain, and pay premiums for commercial insurance policies that cover short term rental of property with minimum limits as may be established by the City Manager from time to time.

 xv)       Adding a new Section 4 to the ordinance to read: Any valid rental agreement for a Vacation Rental, entered into between an Owner or an Agent with a renter and the renter has paid a deposit for such rental prior to November 30, 2016, shall be deemed consistent with the provisions of this Ordinance so long as such rental agreement and the Vacation Rental complies with the requirements of the Palm Springs Municipal Code in effect on November 30, 2016.

 2) Adopt Resolution No. 24137, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING AMENDMENT NO. 1 TO THE ALLOCATED POSITIONS AND COMPENSATION PLAN FOR FISCAL YEAR 2016-17, ADOPTED BY RESOLUTION NO. 24033; 3) Adopt Resolution No. 24138, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, MODIFYING USER FEES FOR THE VACATION RENTAL REGISTRATION AND RENEWAL FEES AND AMENDING THE COMPREHENSIVE FEE SCHEDULE ADOPTED BY RESOLUTION NO. 23854; and 4) Approve Amendment No. 2 to the Agreement with Vacation Rental Compliance extending the agreement to June 30, 2018 and modifying certain terms. A6467.

ACTION: 1) Waive the reading of the text and introduce by title for first reading Ordinance No. 1907, “AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING AND RESTATING CHAPTER 5.25 OF THE PALM SPRINGS MUNICIPAL CODE RELATING TO VACATION RENTALS,” amending the ordinance as follows: 

i)          Section 5.25.020(a) to read:  The primary use of single-family and multi-family dwelling units in the City of Palm Springs is the provision of permanent housing for residents of the City who live and work in the City. Vacation Rentals and Homesharing are not uses specifically recognized in the City’s Zoning Ordinance, nor are these uses identified as uses permitted in single-family or multi-family zones. Vacation Rentals and Homesharing are similar in character and use as hotels and other commercial short term uses and can only be permitted in single-family or multi-family zones if such uses are ancillary and secondary to the residential use of property.   

ii)         Section 5.25.020(b) to read:  Incidents involving excessive noise, disorderly conduct, vandalism, overcrowding, traffic congestion, parking congestion, and the accumulation of refuse, require response from police, fire, paramedic, and other City services associated with this secondary, ancillary, commercial use escalates the demand for City services, create adverse impacts in the residential areas of the City, and adversely affects the City’s residential neighborhoods.  Vacation Rentals and Homesharing use in residential  neighborhoods may have effects that can best be addressed through an appropriate city regulatory program. 

iii)        Section 5.25.020(c) to read:  The purpose of this Chapter is to establish a regulatory program for Vacation Rental and Homesharing lodging, with appropriate standards that regulate vacation rental of residential property, minimize adverse effects of vacation rental uses on surrounding residential neighborhoods, ensure that vacation rentals and homesharing are ancillary and secondary uses of residential property consistent with the provisions of the City’s Zoning Ordinance, preserve the character of neighborhoods in which Vacation Rental and Homesharing uses occur, and 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. 

iv)        Section 5.25.020(e) to read:  The adoption of a comprehensive code to regulate issuance of, and attach conditions to, vacation rental certificates for Vacation Rental and Homesharing lodging within single-family residential neighborhoods and the related use of residential property  preserves the public health, safety, and welfare.  This Chapter  provides a permitting process and imposes operational requirements consistent with the ancillary and secondary status of Vacation Rentals and Homesharing, for the purpose of minimizing the potential adverse impacts of transient uses on residential neighborhoods. 

v)         Definition of “Business Entity” to read: “Business Entity” means a corporation, partnership, or other legal entity that is not a natural person or a personal or family trust or a limited liability company consisting solely of natural persons. 

vi)        Definition of “Cluster or Compound” to read: “Cluster or Compound” means any two or more Vacation Rentals that operate on a unified or shared basis where residents of such Vacation Rentals have exclusive access to more than one Vacation Rental and/or the facilities of such Vacation Rentals, including by way of example, a swimming pool, tennis court, or cooking facilities. 

vii)       Definition of “Owner” to read: “Owner” means the natural person or persons who is/are the owner of record of the Property.  The term “Owner” also includes a personal or family trust consisting solely of natural persons and the trustees of such trust or a limited liability company and the members of such company, insofar as the disclosure requirements pursuant to Section 5.25.085 are satisfied.  The term “Owner” does not include a Business Entity. 

viii)      Section 5.25.040(b) to read: A Vacation Rental Registration Certificate shall not be issued to any Business Entity.  A natural person shall only be issued, and can only maintain, one Vacation Rental Registration Certificate at any time.  Renewals of Vacation Rental Registration Certificates issued on or after November 24, 2016 to a Business Entity shall terminate on March 1, 2017; a renewal of a second Vacation Rental Registration Certificate, or more, issued to a natural person shall terminate on March 1, 2017.  Notwithstanding any provision to the contrary in Subsection (a) or this Subsection (b) of this Section, any natural person who has a financial interest in two or more Vacation Rentals subject to current and valid Vacation Rental Registration Certificates as of November 30, 2016, may continue to operate and maintain no more than two (2) such Vacation Rentals so long as such Vacation Rentals are operated and maintained in full compliance with this Chapter. 

ix)        Section 5.25.070(b) to provide for 32 Contracts, and for designation of five persons. 

x)         Section 5.25.070(c) to read: The Owner shall limit overnight occupancy of the Vacation Rental unit to a specific number of occupants, with the maximum number of occupants as no more than two (2) persons per bedroom within each Vacation Rental unit and a maximum of no more than eight (8) persons total within the Vacation Rental unit, except that Owner may allow up to two (2) minor children, age 12 or under, to occupy the Vacation Rental in addition to the maximum number of occupants otherwise provided in this Subsection. The number of bedrooms in a Vacation Rental shall be verified by the Enforcement Official using County Assessor and/or City Building records, prior to the issuance of a certificate. The Owner shall also limit the total daytime occupancy of the Vacation Rental unit to a specific number of occupants not to exceed an amount determined by adding the total overnight occupants to a number equal to fifty percent of the overnight occupants, except the total number of daytime occupants shall not exceed twelve (12) persons.  No more than one (1) automobile per bedroom shall be allowed to park on the street for each Vacation Rental unit and no more than two (2) additional automobiles may be parked in the street during daytime occupancy for daytime occupants. Advertising and/or renting one or more Vacation Rentals as part of a cluster or compound  is prohibited. 

xi)        Section 5.25.070(h) modifying “rental agreement” to “written contract.” 

xii)       Section 5.25.070(i) to read: 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, and when requested by the City Enforcement Official, evict one or more of the guests. For the purpose of this Subsection and Subsection (j) below, the phrase “in a timely and appropriate manner” shall mean in-person contact within thirty (30) minutes for any call from the Enforcement Official or Hotline. 

xiii)      Add to Section 5.25.070(l) to post signage on the inside of each entry door or in a conspicuous location near each entry door.

xiv)      Amend Section 5.25.070(t) to read:  Owner shall procure, maintain, and pay premiums for commercial insurance policies that cover short term rental of property with minimum limits as may be established by the City Manager from time to time.

 xv)       Adding a new Section 4 to the ordinance to read: Any valid rental agreement for a Vacation Rental, entered into between an Owner or an Agent with a renter and the renter has paid a deposit for such rental prior to November 30, 2016, shall be deemed consistent with the provisions of this Ordinance so long as such rental agreement and the Vacation Rental complies with the requirements of the Palm Springs Municipal Code in effect on November 30, 2016.

 2) Adopt Resolution No. 24137, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING AMENDMENT NO. 1 TO THE ALLOCATED POSITIONS AND COMPENSATION PLAN FOR FISCAL YEAR 2016-17, ADOPTED BY RESOLUTION NO. 24033; 3) Adopt Resolution No. 24138, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, MODIFYING USER FEES FOR THE VACATION RENTAL REGISTRATION AND RENEWAL FEES AND AMENDING THE COMPREHENSIVE FEE SCHEDULE ADOPTED BY RESOLUTION NO. 23854; and 4) Approve Amendment No. 2 to the Agreement with Vacation Rental Compliance extending the agreement to June 30, 2018 and modifying certain terms. A6467.