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HomeMy WebLinkAboutC36650 - Swing Shift Code Compliance Staffing Svcs CONTRACT NO. C36650 STAFF REPORT 1 ( M CITY OF PALM DESERT COMMUNITY DEVELOPMENT DEPARTMENT MEETING DATE: January 11, 2018 REQUEST: Approval to utilize Willdan Engineering and Planning for swing shift Code Compliance staffing services for Fiscal Year 2017/2018 in the amount not to exceed $70,000. Recommendation • By Minute Motion: 1. Authorize an agreement with Willdan Engineering and Planning in the amount not to exceed $70,000 for temporary swing shift Code Compliance staffing services for the balance of Fiscal Year 2017/2018. 2. Authorize the City Manager to execute any agreement necessary to effectuate the above action. 3. Appropriate $70,000 from Unobligated General Fund to Account No. 1104470- 4309000 (Professional Services) for this contract. Strategic Plan Objective Land Use Housing and Open Space Priority 2: Rationale: City to maintain and enhance Palm Desert's quality of life as an inclusive community which supports and expands a strong economic base. The City Council's recent action on short-term rentals (STRs) was a rigorous discussion centered on quality of life within the various residential zones of Palm Desert. Approval of staff's recommendations will implement a swing shift Code Compliance officer, which is one of the most critical pieces of the new operational standards. Having staff on duty in the evening hours should aid in maintaining and enhancing the quality of life within Palm Desert residential neighborhoods. Discussion At its meeting of October 26, 2017, the City Council authorized staff to add a full-time employee to the Code Compliance Division with the purpose of enhanced enforcement and monitoring of STR permits. The newly updated STR ordinance goes into effect on January 13, 2018. Staff believes the most prudent way to implement swing shift code enforcement services will be by contracting with a third party. This will give staff the balance of Fiscal January 11, 2018 — Staff Report Willdan Code Compliance Staffing Services Page 2 of 2 Year 2017/2018 (approximately six months) to evaluate the effectiveness of the program and make recommendations for the Fiscal Year 2018/2019 budget. The City has current agreements with Willdan for temporary staffing services and they have been authorized to utilize City vehicles and equipment while working on behalf of the City. Staff is anticipating using the swing shift officer between 32 to 40 hours weekly; Thursday to Sunday from 5:00 p.m. to 2:00 a.m. Staff is also developing a more intensive strategy for the month of April to assist with enforcement during the Coachella and Stagecoach festivals. Fiscal Analysis The Willdan proposal (attached) indicates a billing rate of $60 to $65 per hour for a Code Officer I/II. At this rate, the City would incur costs of approximately $70,000 for a contract code officer through Fiscal Year 2017/2018. Staff believes hiring a Code Officer I would be prudent and will continue to evaluate hours used in an effort to minimize the costs incurred by the City. /2-- Prepar )y: R yan Stendell, Director of Community Development LEGAL REVIEW DEPT. REVIEW FINANCIAL CITY MANAGER Approved as to Form R V E N/A p,-� Robert W. Hargreaves n Stendell Janet Moore Lauri Aylaian City Attorney Director of Community Director of Finance City Manager Development ATTACHMENTS: 1. Willdan Proposal 2. Approved Staff Report Dated October 26, 2017 WI LLDAN Engineering December 26, 2017 Mr. Pedro Rodriguez Code Compliance Supervisor City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Subject: Code Enforcement Services Dear Mr. Rodriguez: Willdan appreciates the opportunity to submit this proposal to provide contract code enforcement services to the City of Palm Desert. We have outlined our approach to the services requested and presented our key staff in the attached document. Willdan Engineering has provided municipal consulting services including code compliance for over 50 years to cities and counties throughout the State of California. We have provided interim, part-time and full time code enforcement officers to various jurisdictions. The proposed Project Manager, Mr.Al Brady,will provide general oversight and will monitor service delivery on behalf of Willdan and the City of Palm Desert. Mr. Brady is supported by Mr. Bruce Dunams and Mr.John Van Doren who are leaders in the code industry and collectively have over 70 years' experience in developing and managing code programs. Our team has provided contract code services to numerous clients in California,Arizona and Nevada. Together,these individuals can provide the City of Palm Desert with a hands-on, experienced team, capable of efficiently dealing with all aspects of the assigned project. We look forward to discussing our qualifications and ideas for project implementation with you. If you have any questions or require additional information, please call me at(951)454-3539. Respectfully submitted, WILLDAN ENGINEERING cqi),, ...__._. • ,, ,_ ,. .,i . 1. ,-, , . e kd ;'jam s M. Guerra, CBO Al Brady {/� Di ctor of Building and Safety Code Enforcement anager jguerra@willdan.com abrady@willdan.com Engineering and Planning j Energy Efficiency and Sustainability I Financial and Economic Consulting I National Preparedness and InteroperabiIity 909.386.0200 1800.789.7517 I fax:909.888.5107 1650 E.Hospitality Lane.Suite 250,San Bernardino,CA 92408-3317 I www.willdan.com CiTY Or PALM DESERT Table of Contents Firm Profile 1 Scope of Work 2 Project Manager 3 Fee Schedule 3 Related Experience 5 References 7 City of Palm Desert IA(COMPREHENSIVE. "(•'': INNOVATIVE. TRUSTED. P.TY OF PALM DESERT Firm Profile Founded in 1964, Willdan Group, Inc. is a leading nationwide Willdan has been in business provider of value-added professional technical and consulting for over 53 years services.The primary markets Willdan serves are: municipal engineering, planning, and staff augmentation; infrastructure and transportation;energy; economic and financial analysis; and homeland security and emergency management.The company serves these four complementary markets through its four service segments — engineering(Willdan Engineering), energy efficiency(Willdan Energy Solutions), public finance (Willdan Financial Services) and homeland security(Willdan Homeland Solutions). Willdan has a reputation for delivering high-quality projects on time and within budget. Rooted in Willdan's corporate culture is its focus on quality customer service.The company has more than 600 employees, including licensed engineers, program and construction managers,financial analysts, planners, and other skilled professionals. Willdan benefits from well-established relationships with local and state government agencies, investor-owned and municipal utilities, and private sector commercial and industrial firms throughout the United States.The company served more than 800 distinct clients in 2015. Headquartered in Anaheim,the company operates from offices in more than a dozen states across the US. Willdan Engineering Willdan Engineering(Willdan), a California Corporation and subsidiary of WGI, specializes in solutions tailored to the unique needs of municipalities and other local government agencies. Services range from full-time, in-house staffing to interim or part-time assistance on a project-by-project basis. Willdan's understanding of public agency needs and issues is unique in the industry. In addition to the significant portion of our staff that li illdan'.s business model is have served in public agency management positions prior to joining centered on the public sector. Willdan, Willdan has had numerous assignments with over 60%of the 1 e can.function as part of the cities and counties in California for building officials, city engineers, City of Perris'team without a planning directors,traffic engineers, and other public agency staff conflict of interest. members.With our depth of experience, expertise, knowledge and resources,Willdan is able to offer practical solutions that are timely, cost effective, and that meet the needs of individual communities.The diversity of our staff experience is an added value of our professional services. Building and Safety/Engineering Services Willdan's experience and strength in plan review and inspection services encompasses the complete range of technical disciplines, including permit issuance, building inspection,grading inspection, accessibility inspection,Code Enforcement, CASp services, OSHPD III plan check and inspection,flood zone experience, building plan review, and fire-life safety. Willdan maintains an excellent working knowledge of all applicable codes and standards including Caltrans Standard Plans and Specifications, APWA Standards and Specifications,AWWA Standards and Specifications, California Building Codes, CEQA, and Americans with Disabilities Act requirements and California Title 24 requirements on accessibility. The inspection and plan review staff maintain current certifications and attends training on a regular basis,to stay current with industry technologies and standards. Specific certifications and education are delineated in staff resumes herein. City of Palm Desert IA( COMPREHENSIVE. INNOVATIVE. TRUSTED = r; C� t. A„.. ; F PALM DESERT Scope of Work Code Enforcement Services Code enforcement services are among the most complex and challenging services that government agencies provide. According to nationwide 7. y; studies, property values, crime rates, insurance rates, business a.r` -'rF development, and the sense of community pride can be directly impacted by .' the successes of a jurisdiction's code enforcement program. In an effort to aid jurisdictions with the difficult task of maintaining the d J ., quality of life for its citizens through such programs, Willdan has assemble a quality staff with extensive public agency experience in the areas ofifi neighborhood preservation, housing inspection and code enforcement. Our :` expertise includes the development and implementation of inspection , p P P s + designed to ensure public y programs g safety, promote community -.Mall involvement involvement and protect quality of life issues through community education and enforcement of municipal and related codes including preparation for, and participation in, prosecution by city and district attorneys. Willdan provides the following Code Enforcement Services: • Inspection services for HUD section 8 programs. • Review,study and analysis of existing programs. • Development of ordinances and writing of grant proposals. • Neighborhood cleanup and improvement programs. • Community education programs. • Development of educational materials. • Provide project managers and/or supervisors as onsite "employees". • Provide fulltime, part-time, interim and/or weekend staff as onsite "employees" • Vehicle abatement and parking enforcement. • Assist in enforcement, including preparation and participation in prosecution by city and district attorneys. • The registration and enforcement of vacation rentals. • The regulation of group and/or sober living homes. • Inspection, regulation and enforcement of medicinal marijuana dispensaries. �CONIRRCity of Palm Desert HENS4VE. INNNOVANOVA TIVE. TRUSTED. rri OF PALM DESERT Contract Inspection Services The project shall consist of Willdan staff coordinating with the City of Palm Desert Community Development Department to provide Code Compliance staff to the City. Willdan staff shall conduct all inspections and re-inspections of vacation rentals and will identify and enforce all violations of City's municipal code, ordinances, laws and all applicable statutes. Personnel shall issue notifications, letters, citations and warrants when necessary to achieve compliance. Staff will be required to document all complaints received, inspections conducted through photos, notes and correspondences. In addition to the services mentioned above,Willdan employees would provide the following to the City(this is not intended to be a comprehensive list): • Investigate complaints from the public and staff regarding violations of the municipal codes, ordinances, standards and health and safety regulations. • Initiate contact with residents, business representatives, and other parties to explain the nature of the violations and encourage compliance with municipal codes, zoning and land use ordinances, and community standards. • Prepare notices of violation for non-compliance according to applicable codes and regulations. • Prepare reports for cases requiring legal action or civil abatement. • When required, meet with legal counsel and provides testimony on criminal cases. • Maintain records of complaints, inspections,violation notices and other field enforcement activities. • Coordinate with City departments on cases as they relate to code enforcement. liA1( City of Palm DesertCOMPREHENSIVE. :9 ,' F i INNOVATIVE. TRUSTED. r OF PALM DESERT Project Manager Al Brady shall be the Project Manager and is fully responsible for seeing that the project is completed in compliance with the provisions of the agreement (see resume attached). Mr. Brady has over 25 years' experience in the code profession has provided contract code services to approximately 50 municipalities in California,Arizona and Nevada. He specializes in developing new code programs, improving existing divisions, revenue enhancement, ordinance revisions, maximizing staff efficiency and enhancing customer relations. Fee Schedule The Willdan rate for code compliance services ranges between $60.00 to$65.00 dollars an hour based upon the experience level of the officer selected from the two candidates listed in this proposal. It is my understanding that this project will continue for a period of 12 months. The total overall cost will depend on the duration of the assignment and the candidate selected to provide service to the City. Position/Title Rate Code Enforcement Officer I $ 60.00 an hour Code Enforcement Officer II $ 65.00 an hour IV City of Palm DesertCOMPREHENSIVE. :;i: INNOVATIVE. TRUSTED. .. F PALM DESERT Related Experience City of Goleta—Project Manager. Provided interim code enforcement staff. County of Orange—Project Manager. Provided the staff of three full time code enforcement officers on a contract basis to address the county's backlog of code enforcement cases. City of Soledad — Project Manager. Developed and implemented a new proactive code enforcement program. Willdan provided a contract code enforcement officer to staff this program for over one year. City of Fountain Hills, Az — Project Manager. Developed and implemented a town code enforcement department. The scope of work included hiring staff,training and supervision for an eight-month period. City of Irwindale—Project Manager. Provided municipal code enforcement services including monitoring of a local racetrack for compliance with the City Sound Ordinance on an interim basis. City of Walnut—Project Manager. Provided interim code enforcement staff who were responsible for enforcing the City's Municipal Code. City of South Pasadena—Project Manager. Provided interim code enforcement staff. City of Irvine—Project Manager. Providing interim code enforcement staff. City of Laguna Hills—Project Manager.Assisted the city in the development of a public education program concerning the city's code program. City of Los Alamitos- Directed and participated in review of the city's code enforcement policy and procedures, and made recommendations for changes as necessary. Additionally, provided interim code enforcement staff and a Community Development Director. City of Hawaiian Gardens—Project Manager. Assisted the City of Hawaiian Gardens in developing and implementing an Administrative Citation program. City of Rosemead-Project Manager. Provided interim code enforcement staff to inspect a targeted areas of the city to facilitate neighborhood improvements. City of San Clemente—Project Manager. Provided interim Code Enforcement staff to assist with their Code Enforcement Program. City of Superior,AZ-Direct and participate in the review of the city's code enforcement policy and procedures, and make recommendations for changes as necessary. Development and Implementation of a Nuisance and an Administrative Citation Ordinance. W COMPREHENSIVE. City of Palm Desert INNOVATIVE. TRUSTED. 1 TY CIF PALM DESERT City of La Canada Flintridge-Direct and participate in the review of the city's code enforcement policy and procedures, and make recommendations for changes as necessary. Development and Implementation of a Nuisance, Cost Recovery and an Administrative Citation Ordinances. Provided interim code enforcement staff to conduct inspections and facilitate neighborhood improvements. City of Adelanto—Project Manager. Provided interim Code Enforcement staff to assist with their Code Enforcement Program. City of Del Mar- Provided interim code enforcement staff to the City and managed their entire Code program. It should be noted that the projects listed above is not a comprehensive list of all our past code clientele but represents a small portion of the Municipalities we have served. We have also successfully provided service to the following jurisdictions: • Bradbury • City of Palm Desert • City of Rancho Mirage • Costa Mesa • Desert Hot Springs • El Monte • Folsom • Fountain Valley • Laguna Woods • Pasadena • Perris • Rancho Cordova • Sacramento • San Diego County • San Jose • San Juan Capistrano • San Luis Obispo • Sierra Madre • Ventura • West Hollywood City of Palm Desert IV COMPREHENSIVE. INNOVATIVE. TRUSTED CITY OF PALM DESERT References City of Moreno Valley Allen Brock 14177 Frederick Street Moreno Valley,CA 92552 (951)413-3354 Project: Provided interim code enforcement staff. City of San Juan Capistrano Sergio Klotz 3244 Paseo Adelanto San Juan Capistrano, CA 92675 (949) 234-4568 Project: Provided interim code enforcement staff. City of La Canada Flintridge Robert Stanley 1327 Foothill Boulevard La Canada Flintridge, CA 91011 (818) 780-8881 Project: Provided interim code enforcement staff. County of Orange Terry Cox 300 North Flower Street Santa Ana, CA 92703 (562) 233-8969 Project: Provided interim code enforcement staff In closing, Wilidan has provided code compliance services to numerous different California Cities and Counties. We are confident our team can provide the customer service based code compliance program the City is seeking. We hope this proposal meets with your approval. The resumes for our proposed team are on the pages that follow. WCity of Palm Desert COMPREHENSIVE. INNOVATIVE. C-" r TRUSTED- `' CATY L3FPALM DESERT Karl Dirk Voss Code Enforcement Officer. i Education Mr. Karl Dirk Voss is a Willdan Engineering senior code enforcement officer with 19 Rio Hondo College:160 hours years of experience. He is available to provide code enforcement services to our certification,Code Enforcement: Southern California clients Basic,Intermediate,Advanced &Supervisory. Relevant Project Experience Santa Ana College:120 hours City of Banning,California. Economic/Redevelopment Project Coordinator. Administer certification,Fire Prevention: housing, business incentive/outreach and retention program.Oversaw first-time Level One. homebuyer program, home rehabilitation grant program and home purchase program Long Beach City College:300 with Habitat for Humanity. Coordinate economic development committee monthly hours certification,Criminal meeting. Project manager for the business facade program.Assure the 5-year Justice:Police reserve academy. implementation plan was being followed as approved. Participate in the marketing of 19 Years'Experience the City's programs. Assist in the review and negotiation of development proposals, OPA/DDA's and agreements. Put together RFP/RFQ proposals and coordinate its process. Oversaw accounts payable,vendors and monitor contracts dealing with housing, redevelopment and economic development functions. Research and analyze trends. Prepare complex staff reports and conduct presentations to redevelopment board and community. Created the Economic Development Implementation Plan for the City. (Laid off from Position) City of Oxnard,California. Code Compliance Manager. Managed the Code Regulation Division. Division includes Code Compliance,Animal Safety, Business license, Park Ranger services and Alarm Control/permit; 24 staff members with a division budget of nearly two million dollars. Coordinate inter-office projects related to quality of life; actively participate in neighborhood council and business meetings; Do presentations to City Council, Commissions, Civic and neighborhood organization. Orchestrated the turnaround of a municipal division that was labeled incompetent and dysfunctional.The City of Oxnard's Code Compliance division was troubled with complaints, poor performance, improperly trained staff, and antiquated processes. He was able to remove the problem employees, increase customer service satisfaction, streamlined internal operations, and assure staff was trained at the advanced certificated level; staff performance increased by 30%and moral improved. City of Palm Springs,California. Code Compliance Supervisor. Manage the Code Compliance Division of the Development Services Department;4 staff members. Prepare and manage division budget;Coordinate staff assignments; Present employee personnel reviews; Assure staff is providing efficient service; Prepare complex staff reports; Prepare CDBG request of funding report for"Recapture our Neighborhood" program;Write up quarterly and annual grant requests for City; Prepare quarterly and annual statistical information; Do presentations to City Council, Commissions, Civic and Neighborhood organizations. I created a city-wide neighborhood services program, which included a community and business marketing component on City programs. In addition,the program included the coordination of City services to address the community's concerns, specifically a more detailed plan on addressing community policing,fire and quality of life services. COMPREHENSIVE. City of Palm Desert IVINNOVATIVE. TRUSTED. CITY OF PALM DESERT Michael Morris Education Mr. Morris is a Willdan Engineering code enforcement officer with over 12 years of San Bernardino Valley College, municipal government experience. He communicates effectively with both internal staff Police Academy Certification and the general public. Mr. Morris strength is establishing rapport with superiors,and Registration/Certification co-workers. He is organized,self-motivated,enthusiastic and always willing to learn. P.C.832,State of California Michael demonstrates professionalism and a strong personal image at all times. Mr. California Association of Code Morris is available to provide code enforcement services to our Southern California Enforcement Officers(CACEO), clients. Certified Code Enforcement Officer Work Experience 12 years experience City of Rancho Mirage. Code Compliance Officer. As a code enforcement officer, Mr. Morris was responsible for managing a case load throughout the City in support of its Code Compliance team. His assignment included the reviewing, processing, and closing of code enforcement cases related to land use, zoning, building, nuisance, and property maintenance violations within the jurisdiction. Michael was also responsible for investigating violations within mobile home parks and animal control issues. City of Twentynine Palms. Code Compliance Officer. Mr. Morris conducted field investigations and site surveillance of residential,commercial and industrial properties. He enforced all applicable code provisions,ordinances and statutes; issued infraction and misdemeanor citations for violations regarding zoning, litter, abandoned vehicles, weeds and debris accumulation. Michael photographed evidence, prepared diagrams, interviewed potential witnesses and composed letters to ensure remedial action was taken; received complaints from citizens; issued correction notices and performed abatements when necessary. City of Desert Hot Springs.Code Enforcement Officer. Mr. Morris performed field inspections and enforced municipal code provisions (such as animal regulations, business license requirements, and building permits). He explained regulations relating to municipal code provisions including zoning, land use, planning, and design review. Michael responded to citizen complaints regarding potential code violations;conducted research of property ownership, past permits and all applicable code regulations. Mr. Morris coordinated enforcement actions with other City departments and other governmental agencies as necessary. City of La Quinta.Code Compliance/Animal Control Officer. Mr. Morris performed field inspections and enforced municipal code provisions(such as animal regulations, business license requirements, and building permits). He explained regulations relating to municipal code provisions including zoning, land use, planning, and design review. Michael responded to citizen complaints regarding potential code violations; conducted research of property ownership, past permits and all applicable code regulations. Mr. Morris coordinated enforcement actions with other City departments and other governmental agencies as necessary. COMPREHENSIVE. City of Palm DesertINNOVATIVE. IA( TRUSTED. 1 2 STAFF REPOR MEETING DATE (0 - c CITY OF PALM DES RT COMMUNITY DEVELOPMENT El PASSE6 TO 2fdD READING II L ( - Cii 1 MEETING DATE: October 26, 2017 REQUEST: CONSIDERATION TO APPROVE ONE OF THE RECOMMENDATIONS BELOW REGARDING THE PROPOSED AMENDMENTS TO CHAPTER 5.10 SHORT-TERM RENTALS FOR ENFORCEMENT, OPERATIONAL STANDARDS, COMMUNICATION, AND DENSITY REQUIREMENTS FOR SHORT-TERM RENTALS WITHIN THE CITY OF PALM DESERT. Recommendation 1. Waive further reading and pass to second reading either option "A" or "B" (below) of Ordinance No. 1332 to amend Palm Desert Municipal Code Chapter 5.10 regulating Short-Term Rentals (STRs): A. Ad Hoc Committee Recommendation (Prior to Commencing Public Hearing Process): (Version One). Amending Chapter 5.10 Short-Term Rentals to implement best practices in management and creating a buffer/separation of 500 feet within the Residential Single-Family (R-1) zone and a buffer/separation of 300 feet within the Residential Mixed- Family (R-2) zone. OR B. Staff Amended Recommended Alternative (Post Planning Commission Meeting): (Version Two). Amending Chapter 5.10 Short-Term Rentals to implement best practices in management and prohibit the issuance of new short-term rental permits within the R-1 and R-2 zones. All existing short-term rental permits will be allowed to continue to operate as long as they comply with Chapter 5.10. AND 2. By Minute Motion: A. Authorize the City Manager to develop an appropriate position and add one full-time employee to the Code Compliance Division for the purpose of enhanced monitoring and enforcement of Short-Term Rental Permits, with an estimated cost of up to approximately $100,000.00 annually. October 26, 2017— Staff Report Chapter 5.10 Short-Term Rentals (STRs) Page 2 of 12 B. Authorize staff to release a Request for Proposals (RFP) for operating a Short-Term Rental Hotline, and performing other compliance activities. C. Direct staff to calculate a permit fee based upon the all-inclusive cost of administering a Short-Term Rental Compliance Program, and to return to the City Council at a later date with a resolution to adopt that fee. Executive Summary Approval of either the Ad Hoc Committee's or Staff's recommendation would implement new regulations for STRs related to enforcement, operations, and communications, with two options on how to handle density/compatibility issues. The Ad Hoc Committee's recommendation would create a buffer strategy in single-family neighborhoods (R-1 & R-2), while staff's amended recommendation would deem STRs incompatible within single-family neighborhoods (R-1 & R-2). Staff's amended recommendation was formed through public testimony, during which it became evident that residents are no longer happy with the quality of life provided by the STR uses allowed by the City. Additionally, both recommendations provide direction to hire a new swing shift Code Compliance Officer and to take other actions in support of an increased level of STR management. Planning Commission Recommendation On October 3, 2017, the Planning Commission conducted a public hearing and heard testimony from approximately 40 individuals regarding STRs. The majority of the speakers were residents from south Palm Desert within the R-1 zone who are opposed to STRs. The smaller percentages of the speakers were individuals from property management companies, realtors, agencies within the Valley, and people in favor of STRs. After the public hearing concluded, the Planning Commission deliberated and could not agree on a recommendation. Staff has summarized their comments below: Chairperson DeLuna: She stated that a home is the possession about which people are most passionate. She also stated that the climate in the desert is changing with the festivals and tennis tournament, and the City needs to change in a responsible way to protect citizens, and at the same time people need to understand that the City had lots of issues with unpermitted STRs. She believed if the City is too strict, then it will force people to operate STRs underground and then the City will not have the policies to regulate them. She felt sympathetic for the residents' distress within the R-1 zone and stated that most of their complaints are enforcement issues. If the City increased their enforcement and procedures, then that should help. She believed that the City would need to find common ground and enforcement should help. She supported the ordinance with increased enforcement. October 26, 2017— Staff Report Chapter 5.10 Short-Term Rentals (STRs) Page 3 of 12 Vice Chair Pradetto: He stated the STR permit fee should be much higher than $26. He believed that the fees should cover enforcement and not transient occupancy tax (TOT). He also stated that he had sympathy for the residents who have lost sleep, and believed the City needs to give residents their sleep back. He stated that the City needs to take some time to learn from other jurisdictions. He believed the investors who do not live within Palm Desert should not be able to comment since they have no ties to the community. He was comfortable with the proposed on-site owner STR and temporary STR permits, as long as they are year-round residents and not seasonal. He would support to elimination of STRs within the R-1 and R-2 zones; however, possibly STRs could remain, subject to a Conditional Use Permit (CUP). Commissioner Gregory: He stated it is troubling to see homeowners this upset. The intent of neighborhoods is for people to live there. Many individuals are making money off STRs, which is wrong because they are changing the neighborhood and they are making money off infrastructure that is already there. Neighborhoods should be where people know each other. He believed that the issue started in 2012 when the City Council allowed STRs without knowing what impact they would have. They have become a problem because they have created stress for many homeowners, which is not right. He stated a small percentage of homes within the R-1 and R-2 zones have been rented out and are causing the most problems, and STRs within the R-1 and R-2 zones are not appropriate. He also recommended that the minimum night stay be increased to 30 nights where those renters can interact within the neighborhood. He had no concerns with on-site STR owners. He was comfortable with STRs within Planned Residential (PR) communities since they are considered different, and homeowners' associations (HOA) should be able to decide what is best for their private community. Commissioner Greenwood:: He was uncomfortable with STRs within the R-1 and R-2 zones based upon the testimony from residents. He stated that with most problems, once you define an issue you can solve it. If the City had the proposed enforcement policies in place from the beginning, the opinion on this matter may have been different. He recommended that the existing moratorium on STRs remain in effect within the R-1 and R-2 zones for a minimum of one full season. He stated the community has been significantly affected by STRs, and the City has not had the necessary policies and enforcement tools in place to deal with the issue. It would be premature to add to the issue without having control on the existing permits that are in place. He would like to see the City enact and try the proposed enforcement policies to see if they make a difference and if it changes the opinion of the residents. He also recommended that the length of stay should be studied and be a minimum of five to seven nights. October 26, 2017 — Staff Report Chapter 5.10 Short-Term Rentals (STRs) Page 4 of 12 He agreed with the registration and communication policies within the ordinance, especially the check-in. He stated that residents have been through a lot and the moratorium will allow the City to look at parking, how many Code Compliance Officers are needed, and the density of STRs. He was comfortable with STRs within PR communities, and HOAs should be able to decide what is best for their private community. He also agreed that on-site owner STR permits should be allowed in all zones, but had a concern that some will rent their home and stay in town at a friend's house, and if a situation occurred they would run home. Commissioner Holt: She stated residents should not be burdened with a congregation of STRs within their neighborhood and the City needs to alleviate them. The City should have zero tolerance for owners who violate the City's codes and ordinances. She would like to see owners be fined multiple times during one weekend. The City allows party homes, which cause neighbors multiple sleepless nights. She understood why people buy in south Palm Desert because it is quiet. She believed once enforcement is heavier and people know about the enforcement, then STR enforcement should become easier. She would like to see the limit of daytime occupants reduced, see home inspections, and an on-line tracking system for complaints. She would also like to look at a limited number of STRs an owner can have and limit the number of STRs within the R-1 and R-2 zones. The City should have at least two Code Compliance Officers year-round, especially during the festivals. She understood the STR owners' need to make money and the TOT that the City collects; however, homeowners should come first. The City should review the ordinance within six months to a year to make sure that the City is doing their job with complaints, the hotline, and enforcement. She also stated if an owner or renter threatens a neighbor then that should be punishable as well. Ad Hoc STR Subcommittee Recommendation The Committee met on four separate occasions, with the internal City group forming the original 19-member committee on February 2, 2017. The Committee recommended the proposed ordinance (Version One), which was released to the general public on September 1, 2017. Below are the amendments that this ordinance would make to the existing ordinance: • Enforcement/Penalties (increasing fines, implementing a three-strike rule, and adding a swing shift Code Compliance Officer). • Operational Requirements (requirements of owners and renters to meet and greet, and to limit changes to the character of the neighborhood). • Communication (establish guidelines for the neighborhood, renter, and owner communication). October 26, 2017 — Staff Report Chapter 5.10 Short-Term Rentals (STRs) Page 5 of 12 • Density (implement a separation requirement of 500 feet within the R-1 zone and 300 feet within the R-2 zone). This issue did not have a clear consensus. • Creation of the on-site owner STR and a temporary STR (18 days per year) permits. The Committee generally supported all aspects of the amendments except the buffer/separation requirements. Many members, especially in south Palm Desert, lobbied for a complete ban of STRs within the R-1 zone, while other members requested all property owners to have the right to market their home as a STR, if they desired. Staff ultimately proposed the buffer/separation requirements as a compromise between the two groups. Hotel and Signature Events Committee On October 4, 2017, staff met with the Hotel and Signature Events Committee (Hotel Committee) regarding their review on STRs. Members of the Hotel Committee stated that they do view each STR as a competing hotel room, but also acknowledged that not all STR guests are hotel customers. Members of the Hotel Committee stated the number of STRs (1,228) within the City is not ideal but it is tolerable, and more may pose a concern. The Hotel Committee stated that people are traveling differently because of STRs, and admitted that the hotel industry needs to update their product in order to capture that traveler. The main concern for the hotel industry is that STRs should be held to the same standards that hotels are in regard to rules and regulations. Hotels have to comply with the American's with Disabilities Act (ADA) where STRs do not. Hotels must have on-site security guards and staff members, regulations for pool hours, zoning regulations, and building code requirements, where STRS do not. Since STRs are considered hotels; they should be held accountable. Background Analysis In 2012, the City Council added Chapter 5.10 Short-Term Rentals creating the current Short-Term Rental Ordinance, and repealed requirements of STRs from Chapter 25 - Zoning that required a Conditional Use Permit (CUP). The creation of the STR Ordinance was the first time that homeowners could rent their home for less than 27 consecutive days with a three-day, two-night minimum stay, without going through a public hearing to obtain a CUP. STRs have grown rapidly throughout the nation and within the Coachella Valley. Property owners are legally required to obtain a permit from the City to utilize their property as a STR. There are currently many required steps, including providing a 24-hour contact and acknowledging receipt of the "Good Neighbor Brochure" prior to renting a residence. There are approximately 1,228 permitted STR units currently operating in the City, and the City's Code Compliance Division is tasked with enforcing and managing the requirements of the license. October 26, 2017— Staff Report Chapter 5.10 Short-Term Rentals (STRs) Page 6 of 12 Over the last two years, there has been a general uptick in permit issuance. STRs have become a popular way for owners and investors to convert single-family homes into significant revenue generators. While this is good for some, it is causing a disturbance for many homeowners within the R-1 and R-2 zones. Residents have become increasingly vocal in asserting that STRs are ruining their quality of life and changing the character of their neighborhoods. Because of this and the recent STR regulatory activity in neighboring cities, on January 12, 2017, the City Council established a 45-day temporary moratorium on the issuance of STRs. The Council also directed staff to form a committee and appointed Councilmembers Kelly and Nestande to participate in that committee. On February 2, 2017, City staff formed and met with the internal committee and discussed the formation of a 19-member stakeholder task force consisting of the following: • Rental Companies/Property Managers —Two members • HOA Presidents/Members—Two members • Homeowners within an HOA—Two members • Homeowners not within an HOA—Three members • Hotel Industry—Two members • Realtors —Two members • City representatives — Staff from Planning, Code Compliance, Finance, and the City Manager's office. On February 23, 2017, the City Council extended the temporary moratorium on the issuance of STRs city-wide for an additional ten (10) months and fifteen (15) days. The Council directed staff to open the Committee to the public and listen to their input regarding STRs, and come back to the Council with a recommendation. On March 2, 2017, the City held the first Committee meeting. Staff stated during the meeting that the goal was to balance the expedience of this process with hearing all parties' concerns prior to making a recommendation to the City Council. After the March 2 meeting, City staff concluded that there were four (4) main topics (Enforcement/Penalties, Operational Requirements, Communication, and Density), requiring further study. During the next three Committee meetings, which occurred on April 6, April 20, and July 6, the four topics emerged as the primary issues. The following were discussed for each: 1. Enforcement/Penalties • Heavier fines for owners, renters, and management companies. • Three (3) strikes within a year result in loss of the permit. • The need for one to two Code Compliance Officers working the later hours, especially Thursday through Sunday nights. • The hotline number is not an effective tool for prompt resolution. October 26, 2017— Staff Report Chapter 5.10 Short-Term Rentals (STRs) Page 7 of 12 2. Operational Requirements for property owners and renters • A meet and greet at the home between the owner and renter to review all the rules and explain it is not a party home. • Posting of all City ordinances and Good Neighbor Brochure in plain sight. • Execution of a formal acknowledgement from the guest demonstrating that they are aware of all rules and regulations. 3. Communication • Notify adjacent neighbors of which homes are STRs. • Provide neighbors with the Good Neighbor Brochure and hotline number. 4. Density • Allow STRs only in gated areas. • Do not allow STRs in R-1 and R-2 zones. • Create a buffer around each existing STR. • Consider capping the number of STRs in each neighborhood. The comments that were discussed during the Committee meeting came from approximately 70 people. Staff found that the group has strong differences on how they viewed and defined STRs. However, they all seemed to agree upon approaches to three of the main categories: Enforcement/Penalties, Operational Requirements, and Communication. Proposed approaches in the Density category never seemed to resonate with anyone, because they didn't solve or meet everyone's concerns or agendas. After the July 6, 2017, Committee meeting, staff thanked the Committee for their input and began to draft an ordinance to take through the public hearing process. Analysis The City currently has 1,228 STRs, and they are divided up into four residential zoning districts. Below is a chart showing the zoning districts, total number of residential units within each district, total number of STRs, and percentages for each district. Zoning Total Residential Total STR Permits Percentage of Designation Units STRs P.R. 24,010 840 3.5% R-1 3,977 212 5.3% R-2 1,893 64 3.4% R-3 1,667 46 2.7% -- Committee's and Staff's joint recommendations The recommendations of the two groups (Committee and staff) agree on the proposed ordinance for the first three categories, except for three minor alterations that are discussed below regarding mailing notifications to property owners, responsible person's minimum October 26, 2017— Staff Report Chapter 5.10 Short-Term Rentals (STRs) Page 8 of 12 age, and timeframe of change of ownership. Below are the proposed amendments for the first three categories: Enforcement/Penalties The Committee and staff agree on this topic and believe that the City needs to increase its enforcement efforts. The Committee and staff are proposing to increase the fines for any type of violation. The fines will extend to the operator, occupant, and owner. The existing ordinance has fines in the amount of$250, $500, and $1,000. The proposed fines are as follows: • First citation is $1,000. • Second citation for the same offense within a 12-month period of the date of the first offense is $3,000. • Third citation within a 12-month period of the date of the first offense is $5,000 and an immediate revocation of the STR permit for a period of two years. The recommendation also includes increasing the fines for violators who are operating a STR without a valid permit. The existing ordinance has fines in the amount of $250, $500, and $1,000. The proposed fines will be as follows: • First citation - $1,000. • Second citation or subsequent citation - $5,000, and the City has the right to refuse the issuance of any future STR permit to the same owner within the City. Currently, the City's Code Compliance Division enforces regulations for all existing STRs. The City also contracts with a consultant, who is tasked with searching websites for non- permitted STRs. The City also contracts with another consultant, who manages a hotline number where neighbors can call 24/7 for complaints. The dispatcher then notifies the owner or operator of the STR and they have 60 minutes to notify the renter of the complaint. City staff has heard on several occasions that the hotline number is not effective, because sometimes it is a recording, and there is no verification whether the complaint was resolved until the next business morning. The Committee and staff believe that responding in 60 minutes is too slow. Both are proposing that the owner/operator must be available 24 hours a day, seven days a week for the purpose of responding within 30 minutes to complaints regarding the condition, operation, or conduct of occupants or guests of the STR Unit. Additionally, it has been suggested that the City hire a full-time Code Compliance Officer who works Wednesday through Sunday from 6:00 p.m. to 2:00 a.m. This officer would be able to respond immediately and assess the reported violation. Because of the irregular seasons and hours during which complaints are received, an effective response team cannot be formed simply by hiring a large number of year-round code compliance officers. It will be necessary to supplement the permanent code compliance team with part-time, seasonal workers, either through an outside vendor or through temporary staff. October 26, 2017 — Staff Report Chapter 5.10 Short-Term Rentals (STRs) Page 9 of 12 Operational and Communication Requirements These two categories were combined because the Committee and staff agree that the current ordinance lacks accountability of the owners, operators, and renters. Below is a summary of proposed amendments: Prior to occupancy of a STR unit the operator must do the following: • Meet and greet the renter on-site and obtain his or her name, address, and a copy of a valid government-issued identification. • Provide the renter with a copy of the Good Neighbor Brochure. • Provide the renter with information about the STR regulations. • Require the renter to execute a formal acknowledgment in the form acceptable by the City that he or she is legally responsible for compliance of all occupants of the STR unit and their guests, with all applicable laws, rules and regulations pertaining to the use and occupancy of the STR unit. Provide the Responsible Person with the Operator's 24-hour availability information. • Provide the renter with a copy of the maximum number of overnight occupants and the maximum number of daytime occupants as permitted pursuant to the chapter. • Provide the Responsible Person with a copy of trash pick-up day and applicable rules and regulations pertaining to leaving or storing trash on the exterior of the property. • Include in the Good Neighbor Brochure that no music will be played outdoors after 10:00 p.m. Lastly, the Committee and staff are proposing that, upon the issuance of a new STR permit and a renewal permit, the City mail a notice to the owners and occupants of all residences within 200 hundred feet of the property line. The notice will provide information regarding how to lodge complaints (a copy of the Good Neighbor Brochure, and the 24-hour contact person's name and telephone number) regarding the STR unit. The owner will be required to supply the City with the mailing labels as part of the application process. Staff's three minor amendments to the Committee's Recommendation • Section 5. 10.030 Definitions "Responsible Person"states that the occupant must be at least 21 years of age. Staff has heard that the industry renting standard age is 25 years old. Staff is recommending increasing the minimum age from 21 to 25 years old. • Section 5.10.060 Short-Term Rental permit for all types Letter D, states upon issuance of a new and renewal STR permit that the City shall notify owners within 200 feet. Staff is recommending to exclude STR permits that are located within the Planned Residential zones (which are primarily gated communities with HOAs). • Section 5. 10.060 Short-Term Rental permit for all types Letter F, states that property ownership or operator changes must be reported within 14 days. Staff is recommending increasing the timeframe to 30 days. October 26, 2017 — Staff Report Chapter 5.10 Short-Term Rentals (STRs) Page 10 of 12 Density/Allowable Zoning Districts This concept was the most discussed and emotional topic during the Committee meetings and at the Planning Commission meeting. It was also the most divided topic and a cohesive decision or resolution was not established. Based on these opposing views, staff and the Committee drafted an ordinance that represented a compromise between all groups. Since the public hearing before the Planning Commission, staff has created an amended recommendation and has provided a comparison below: Ad Hoc Committees recommendation Although even the Committee members could not reach consensus, they agreed to put forward an ordinance with a buffer/spacing within the R-1 and R-2 zones on the issuance of new STR permits. All existing permitted STRs within the R-1 and R-2 zones would be allowed to continue to operate as long as they are in compliance with the ordinance. Below is the proposed language. • A new STR permit within the R-1 zone will not be issued if the rental unit is located within 500 feet of any existing actively operating STR unit. • A new STR permit within the R-2 zone will not be issued if the rental unit is located within 300 feet of any existing actively operating STR unit. • The buffer/spacing distances shall be measured from each property line. • The City shall maintain a current map of all STR unit locations. • If an existing permit is not renewed, then a new permit will not be issued if the unit falls within the buffer. • If an existing permit is revoked and the STR unit is located in the R-1 or R-2 zones, then a new permit will not be issued unless the unit is not located within a buffer. As stated previously, this concept never gained high levels of support as it was presented to the community. STR operators claim it is a quasi-moratorium, and community members state that it does not go far enough to fix what is seen as a use that is "out of control." Staff's Amended Recommendation After careful study of all public input, staff believes that the proposed buffer/separation requirements do not address the underlying question of whether or not STRs are compatible within single-family zones (R-1 & R-2). Staff also believes that when the City Council allowed STRs in 2012, they did not foresee the boom that the STR industry would experience. The moratorium has allowed staff to study the impacts of STRs within the community and has allowed residents to voice their concerns. Staff has heard from hundreds of residents (mainly within south Palm Desert and Palm Desert Country Club) who state that their quality of life is suffering, and many have stated that they wish to move out of Palm Desert. Based on the Planning Commissioners' comments and public testimony, staff believes that prohibiting new STRs within the R-1 and R-2 zones is the correct course of action. Staff recommends allowing all existing STRs within those zones to continue to operate as long as October 26, 2017 — Staff Report Chapter 5.10 Short-Term Rentals (STRs) Page 11 of 12 they are compliant with Chapter 5.10. The proposed enforcement will remove the lax operators and will allow the responsible owners to continue to operate in a respectful manner. Staff believes attrition will yield a lower number of total permits within the single- family zones. Staff has observed that STRs are generally compatible in Planned Residential (P.R.), and Residential Multiple-Family (R-3) zoning designations, as most of these communities have some form of governing association. Staff has attempted to create an ordinance that would support these communities in managing STRs. Several gated communities have indicated that STRs are working since most of the clubs are set up to operate as a resort with swimming pools, security services, golfing, and clubhouse amenities. The bulk of the existing permitted STRs are located within the P.R. zone, and there are ample growth opportunities. Two new STR permit types Regardless of which recommendation the City Council chooses, both the Committee and staff recommend implementing two new types of STR permits. Both types of permits would offer residents within the R-1 and R-2 zones STR options. Temporary STR Permit The temporary STR permit would allow for a homeowner to have the option of renting their home for four separate occasions totaling no more than 18 days per calendar year. This would allow for homeowners to capture the rental business during festivals and the tennis tournament, if they desire. This permit still requires all additional information as outlined within the proposed ordinance, including paying the transient occupancy tax. On-Site Owner STR Permit This permit pertains to an owner who is living in and present within the main unit to rent one (1) or more bedroom(s), or a attached/detached casita. This permit still requires all additional information as outlined within the proposed ordinance, including paying the transient occupancy tax. The owner must also demonstrate regular occupancy during the rental period, which may be by neighbor verification or other means sufficient to the City. Summary The proposed amendments provide guidance and regulations for how STRs are regulated and operated within the City. The proposed amendments do not address all comments that staff received. The Committee and staff agreed on three of the main categories (Enforcement/Penalties, Operational Requirements, and Communication); however, could not reach consensus on Density. Staff has put forth the amended recommendation in the belief that the City's primary role is to define uses within each zoning district. STRs seemingly blur the lines of compatible uses in single-family zones (R-1 & R-2) to the point where staff believes that the Amended Recommendation is the most prudent course of action. October 26, 2017 — Staff Report Chapter 5.10 Short-Term Rentals (STRs) Page 12 of 12 Fiscal Analysis: STR popularity has exploded since the City's ordinance revisions in 2012 as indicated in the matrix of total TOT revenue below: Year Hotel Properties STRs Total 2017 $13,275,463 _$1,778,796 $15,054,259 2016 $10,193,829 $1,059,168 $11,252,996 2015 $10,029,019 $770,661 $10,799,680 2014 $9,234,216 $621,294 $9,855,510 2013 $8,656,482 $532,499 $9,188,981 STR permits in the R-1 & R-2 zoning districts represent approximately 23 percent of the total permits issued throughout the City. As currently proposed in both the Ad Hoc Committee and Staff amended recommendations, existing permit holders would continue to operate, which would likely have a minor short-term effect on STR revenue. Staff believes both versions of the draft ordinance provide ample opportunities for STR growth within the City in both the P.R. and R-3 zoning districts. Included in this report is also a request to hire a swing shift Code Compliance Officer as well as to take other actions which would allow the City to manage STRs more effectively. The total fiscal impact of these management tools is not fully known at this time. However, staff will return to the City Council at a later date for consideration of a permit fee to offset the costs of processing applications. Prepared by: Kevin Swartz, Associate Planner LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW CITY MANAGER Approved as to Form riJerniv,-9j- 1ndeIl •Robert W. Director of rwe,,, 00re Lauri Aylaian Hargreaves Community r of Finance City Manager City Attorney Development ATTACHMENTS: 1. City Council Ordinance No. ; amending changes to Chapter 5.10 Short-Term Rentals of the City's Municipal Code 2. Exhibit "A" —[Version One] and [Version Two] 3. Buffer Maps (R-1 and R-2) zones 4. The Desert Sun Legal Notice 5. Correspondences received POSTED AGENDA (WITH ACTION MINUTES) REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 26, 2017 XVII. CONTINUED BUSINESS CITY COUNCIL AC,TTON APPROVED ✓' DENTED None RECEIVED OTHER 1Z.s .c( Ord. 1331 Sscc3ic reach ini XVIII. OLD BUSINESS MEETING DATE IC "a - (1/ �l AYES:Jonafi�an-Keily.t�Jeber. 4Grni . None NOES: Ni6:Vtir)d e_ ABSENT: Noll e- ARgT IN: I\141x- ** 6:07 P.M. - 6:34 P.M. — DINNER BREA Fait IED BY Or.Jm S Origi I on File with City Clerk's Office XIX. PUBLIC HEARINGS A. REQUEST FOR APPROVAL OF ONE OF THE RECOMMENDATIONS REGARDING PROPOSED AMENDMENTS TO PALM DESERT MUNICIPAL CODE CHAPTER 5.10 - SHORT-TERM RENTALS - FOR ENFORCEMENT, OPERATIONAL STANDARDS, COMMUNICATION, AND DENSITY REQUIREMENTS FOR SHORT-TERM RENTALS WITHIN THE CITY OF PALM DESERT. Staff-Amended Recommended Alternative (Post-Planning Commission Meeting): 1) Ordinance No. 1332 passed to second reading, as amended with the following modifications: a) Phasing out existing Short-Term Rental Permits in the R-1 and R-2 Zones by July 1, 2019, using the proposed language provided by the City Attorney; b) elevating the penalties for unpermitted Short-Term Rentals up to$5,000 per citation and for second and subsequent citations, with the City having the right to refuse issuance of any Short-Term Rental Permit within the City; c) eliminating all language referencing Temporary Short-Term Rental Permits; d)directing staff to report back to the City Council in nine (9) months. 2) By Minute Motion, authorize/direct: a) City Manager to develop an appropriate position and add one full-time employee to the Code Compliance Division for the purpose of enhanced monitoring and enforcement of Short- Term Rental Permits, with an estimated cost of up to $100,000 annually; b) staff to release a Request for Proposals (RFP) for operating a Short-Term Rental Hotline and performing other compliance activities;c)staff to calculate a permit fee based upon the all-inclusive cost of administering a Short-Term Rental Compliance Program and return to City Council at a later date with enabling resolution for fee adoption. 4-1 (AYES: Jonathan, Kelly, Weber, and Harnik; NOES: Nestande) 13