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Home My WebLink AboutRes 2018-48 - Establish Fee - Rvw STR Hardship Xtnsn Applications STAFF REPORT CITY OF PALM DESERT COMMUNITY DEVELOPMENT DEPARTMENT MEETING DATE: June 28, 2018 PREPARED BY: Ryan Stendell, Director of Community Development REQUEST: Consideration of approval of Resolution No. 2018- 48 establishing a fee for service related to reviewing Short-Term Rental Hardship Extension applications. Recommendation Waive further reading and adopt Resolution No. 2018-48 , establishing a fee for service related to reviewing Short-Term Rental (STR) Hardship Extension applications. Strategic Plan 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 STRs was a rigorous discussion centered on quality of life within the various residential zones of Palm Desert.Approval of staffs recommendation supports the above-mentioned Strategic Plan goal by winding down STR operations in the R1 and R2 zoning districts. Background Analysis At its meeting of May 10, 2018, the City Council approved a policy for STR Hardship Extension requests, which supports winding down operations in the R1 and R2 zones by December 31, 2019. The City Council also directed staff to prepare a fee resolution that would recover some, but not all, costs incurred in the review of these applications. The fiscal analysis section of this report and Exhibit"A" of the attached resolution provides an internal fee analysis conducted by staff and a recommended fee not to exceed $1,500 per application. Fiscal Analysis City staff conducted an internal fee analysis and estimated expenses in the following categories: June 28, 2018 - Staff Report Short-Term Rental Hardship Extension Fee Page 2 of 2 FOURLY REVIEW CATEGORY; HOURS , ,. TOTAL *BILLING RATE Planning Staff Completeness Review 5-7 $138 $966 Professional Services: Certified Public Accountant Review 3-5 $210* $1050 Director of Community Development Determination 1-2 $173 $346 Professional Services: Certified Public Accountant Review 3-5 $180* $900 City Manager Determination 1-2 $216** $432 Legal Review 3-5 $290 $1,450 Total Estimated Fiscal Impact Per Application 16-26 $5,144 *Represents an average billing rate based on approved professional services agreements. **No established billing rate exists for the City Manager. For estimating purposes only,this rate is represented at 25%higher than the Director of Community Development. Staff is recommending a fee structure not to exceed $1,500 for review of STR Hardship Extension applications, which represents 29-48% of resources expended. Additionally, staff recommends the fee be made in two payments; $500 at application submittal and $1,000 after the application has been deemed complete. Staff believes the above-referenced fee accomplishes the goal of the City Council in establishing a reasonable fee, yet recovering some costs associated with this process. LEGAL RE IEW DEPT. REVIEW FINANCIAL REVIEW CITY MANAGER 40.1a .".„4, :(1,(.4.,t_e IT;rirf*" . . -.ves Ryan Stendell Jet Moore Lauri Aylaian City A ttorney Director of Community Director of Finance City Manager Development ATTACHMENTS: 1. Draft Resolution No. 2018-48 RESOLUTION NO. 2018- 48 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ESTABLISHING A FEE FOR SERVICE RELATED TO REVIEWING SHORT-TERM RENTAL HARDSHIP EXTENSION APPLICATIONS WHEREAS, the City Council of the City of Palm Desert, California, did on the 28th day of June 2018, consider a request by the CITY OF PALM DESERT for approval to establish fees, as identified on Exhibit "A" for the review of Short-Term Rental Hardship Extension applications; and WHEREAS, the proposed internal fee analysis as identified on Exhibit "A" sets forth a mechanism for ensuring that fees adopted by the„ City for services rendered do not exceed the reasonably estimated cost of providing sa►dervices; and WHEREAS, all requirements of California law are hereby found to have been complied with in and for these proceedings. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows: 1. That the above recitations are true and correct and constitute the findings of the City Council in this case. = -_ 2. That the City Council does hereby e ablish fees as identified on Exhibit "A" of this resolution. PASSED, APPROVED AND ADOPTED by the City Council of the Palm Desert, California, at its meeting held on the 28th day of June 2018, by the following vote, to wit: AYE � NOES: ABSENT: ABSTAIN: SABBY JONATHAN, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA RESOLUTION NO. 2018- 48 EXHIBIT "A" Community Development/Short-Term Rental (STR) Hardship Extension Fee Schedule: Proposed Fee at Proposed Fee at Item Application Application Deemed Total Fee Submittal Complete Amount STR Hardship Application $500 $1,000 $1,500 Community Development Estimated Internal Fee Analysis: (Below is not to be construed as a fee to be collected, rather an estimate of time/resources expended in processing STR Hardship Extension Applications) REVIEW CATEGORY HOURS HOURLY TOTAL BILLING RATE Planning Staff Completeness Review 5-7 $138 $966 Professional Services: Certified Public Accountant Review 3-5 $210* $1050 Director of Community Development Determination 1-2 $173 $346 Professional Services: Certified Public Accountant Review_ -- _ 3-5 $180* $900 City Manager Determination 1-2 $216** $432 Legal Review 3-5 $290 $1,450 Total Estimated Fiscal Impact Per Application — _ 16-26 $5,144 * Represents an average billing rate based on approved professional services agreements. ** No established billing rate exists for the City Manager:For estimating purposes only, this rate is represented at 25% higher than the Director of Community Development. 2 Resolution No. 2018-48 PO Box 23430 �Csert mediagroup Green Bay,WI 54305-3430 dull Tel:760-778-4578/Fax 760-778-4731 PAST oF THE USA TODAY NETWORK Email:legals@thedesertsun.com PROOF OF PUBLICATION Public Notices STATE OF CALIFORNIA SS. �. COUNTY OF RIVERSIDE '` Public Notices CITY OF PALM DESERT LEGAL NOTICE NOTICE OF A PUBLIC-HEARING BEFORE THE PALM DESERT CITY COUNCIL FOR CONSIDERATION TO APPROVE A RESOLUTION DEVELOPING A FEE SCHEDULE ASSOCIATED WITHIN REVIEWING SHORT-TERM RENTAL HARDSHIP EXTENSION APPLICATIONS. CITY OF PALM DESERT Th73510 FRED WARING DR Environmentale.CityCouncil finds that this Resolution is not subject to the California will not result in Quality d ri ct oAct r reaasonablyuant to Sections foreseeable indirect physicalicha change in the environment) and 15060(c)(3) (the.activity is not a project as defined in PALM DESERT CA 92260 Section 15378)of the CEQA Guidelines,California Code of Regulations Title 14, Chapter 3,because it has no potential for resulting in physical change to the environment, directly or indirectly; it prevents changes in the environment pending the completion of the contemplated study of impacts. Project Lotion ca ---�—City-Wide I am over the age of 18 years old,a citizen of the Recommgendtation. Staff is recommending that the City Council a above re approve the or have interest in Public Hearing:Tpm United States and not a party toe public hearing will be held before the City Council on June 28,2018 at 4:00 this matter. t hereby certify that the attached Com,nt Period: Tour response should be sent at the earliest oe The ublic comment period on this project is from June 13 to June 28p,201gssibl date. advertisement appeared in said newspaper(set in Public Review:Please submit written comments to the Planning Department.If type not smaller than non panel)in each and entire those ios ues Iraisedgat hee p bgcn hearing described int his notem o in ritten correspondence at,or prior to,the Ci Council hearing.All comments andw any questions should be directed to: issue of said newspaper and not in any supplementR tY thereof on the following dates,to wit: 73 n Stendell,Fr Ding Drive thereof Community Development Palm Desert,CA 92260 (760)346-0611 rstendel lecityofpalmdesert.org 06/13/18 RACHELLE KLASSEN,City Clerk Palm Desert City Council �_- Published:6/13/18 I acknowledge that I am a principal clerk of the printer of The Desert Sun,printed and published weekly in the City of Palm Springs,County of Riverside, State of California.The Desert Sun was adjudicated a Newspaper of general circulation on March 24, 1988 by the Superior Court of the County of Riverside,State of California Case No. 191236. I declare under penalty of perjury that the foregoing is true and correct. Executed on this 13th of June 2018 in Palm Springs,California. r-a C m D. . orn0 DECLARANT rnXI rn rn 0 —iao CJ'! =>Ad#:0002975156 P 0:2975156 N m #of Affidavits.1