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HomeMy WebLinkAboutOrd 1318 - ZOA 16-364 Extend Temp Moratorium Short Term Rental (STR)INTERIM URGENCY ORDINANCE NO. 1318 CITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT STAFF REPORT REQUEST: CONSIDERATION TO APPROVE AN INTERIM URGENCY ORDINANCE MAKING FINDINGS AND EXTENDING A TEMPORARY MORATORIUM ON THE ISSUANCE OF SHORT- TERM RENTAL PERMITS CITY-WIDE FOR AN ADDITIONAL 10 MONTHS AND 15 DAYS SUBMITTED: Ryan Stendell, Director of Community Development APPLICANT: City of Palm Desert CASE NO: Urgency Ordinance and ZOA 16-364 DATE: February 23, 2017 CONTENTS: Draft Interim Urgency Ordinance No. 1318 Existing Short -Term Rentals Map Legal Notice Recommendation Waive further reading and adopt Interim Urgency Ordinance No. 1318 extending the temporary moratorium on the issuance of Short -Term Rental Permits (STR) for an additional 10 months and 15 days. Executive Summary Approval of staff's recommendation will approve an interim urgency ordinance, which will extend the existing 45-day moratorium for an additional 10 and a half months on issuing new STR permits. The moratorium will still allow existing permitted short-term rental properties to continue to operate, and allow for the City Manager to grant new permits if certain criteria are met. The Council -appointed two member subcommittee has met with City staff. The recommended stakeholder task force will begin meeting in March to review and create any proposed updates to the City's Municipal Code. Staff Report Urgency Ordinance ZOA 16-364: Short -Term Rentals Page 2 of 3 February 23, 2017 Background • On January 12, 2017, the City Council approved a 45-day interim urgency ordinance on issuing new STR permits within the City of Palm Desert. The moratorium allowed existing permitted short-term rental properties to continue operating. In addition, the moratorium contains provisions for issuing a new permit if an owner meets certain criteria and pays any back Transient Occupancy Taxes (TOT) for the period of unlicensed operations. At that Council meeting, the City Council selected two members to join a Short -Term Rental Subcommittee (Councilmembers Kelly and Nestande). On February 2, 2017, City staff met with the subcommittee 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 — Six members from Planning, Code Compliance, Finance and the City Manager's office. The first task force meeting is scheduled for March 2, 2017. Staff's goal is to balance the expedience of this process with hearing all parties' concerns prior to making a recommendation back to all of the City Council members. Analysis Staff is requesting that the City Council authorize an additional 10 and a half months to review and host a series of public meetings. Government Code Section 65858, allows the Council to extend an initial 45-day moratorium for a cumulative one-year period through a public hearing and approval by a four -fifths (4/5) vote. Staff believes that taking this period to assess the current regulations on STRs is time well spent, and is recommending approval of the attached Interim Urgency Ordinance. Environmental The proposed ordinance is not subject to environmental review under the California Environmental Quality Act (CEQA) pursuant to Section 15060(c) (2). Additional information may be found in Section 2 of the attached Draft Interim Urgency Ordinance. Staff Report Urgency Ordinance ZOA 16-364: Short -Term Rentals Page 3 of 3 February 23, 2017 Fiscal Impact The City will continue to receive Transient Occupancy Taxes on the existing permits within the City, and will evaluate the fiscal impact of any proposed modifications prior to bringing this item back to the City Council. Submitted By: Ryan Stendell, Director of Community Development Rev. wed: Rober Brea e-, City A orney Approval: ri Aylaian, City Manager INTERIM URGENCY ORDINANCE NO. 1318 AN INTERIM URGENCY ORDINANCE OF THE CITY OF PALM DESERT, CALIFORNIA, MAKING FINDINGS AND EXTENDING A TEMPORARY MORATORIUM ON THE ISSUANCE OF SHORT-TERM RENTAL PERMITS FOR AN ADDITIONAL 10 MONTHS AND 15 DAYS CASE NO: ZOA 16-364 WHEREAS, the Palm Desert Municipal Code permits short-term residential rentals subject to the requirements of Palm Desert Municipal Code Chapter 5.10, which includes a requirement for a short-term rental permit, as well as operational requirements and standards; and WHEREAS, in recent years, notwithstanding steadily increasing short-term rentals, the City has not experienced significant public nuisance complaints associated with properties used as short-term residential rentals, because the City has maintained a rigorous short -term -rental enforcement program ; and WHEREAS, other communities in the Coachella Valley have experienced significant public nuisance complaints as the density and frequency of short term rentals has grown and have recently taken actions to ban or curtail short term rentals; and WHEREAS, there is concern that the density and frequency of short-term rentals in Palm Desert will increase in response to limitations imposed elsewhere, which may result in unwanted changes in the character of residential neighborhoods within the City; and WHEREAS, based on the foregoing, on January 12, 2017, the City Council adopted Interim Urgency Ordinance No. 1316 finding that issuing additional short-term rental permits, prior to the City's completion of a study of the potential impact of such short-term residential rentals, would pose a current and immediate threat to the public health, safety, and welfare, and imposing a 45-day temporary moratorium on the issuance of such permits; and WHEREAS, the City has begun studying the issues related to short-term rentals, has prepared and submitted a report describing the measurers taken to date to alleviate the conditions which led to the adoption of Interim Urgency Ordinance No. 1316, but has not yet finished its study and evaluation; and WHEREAS, Government Code Section 65858(a) allows the City Council to extend an interim moratorium ordinance based on immediate threats to public health, safety, and welfare; and INTERIM URGENCY ORDINANCE NO. 1318 WHEREAS, as a result, the City Council desires to extend the current moratorium by an additional 10 months and 15 days to allow the City to complete studies regarding short-term rentals and prepare proposed updates to the City's Municipal Code. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DOES ORDAIN AS FOLLOWS: SECTION 1. Extension of Moratorium and Findings. A. In accordance with the authority granted to the City of Palm Desert under Government Code Section 65858, from and after the date of this Ordinance, no new short-term rental permits shall be approved or issued for a short-term residential rental for an additional period of 10 months and 15 days, except as provided below: (1) annual renewals of existing permits shall be permitted under Section 5.10.050(B); (2) new short-term rental permits shall be issued only to operators or potential operators who submitted to the City by February 10, 2017, clear and convincing evidence that: (a) the residential dwelling has been used as a short-term rental on a substantial basis within the last year; and/or (b) the operator has made substantial investment in expectation of operating a short-term rental at the residential dwelling for which the permit is sought. B. Permits considered pursuant to Section 1(A)(2) above shall be issued only if the applicant (1) pays any fines and/or transient occupancy taxes owing for any operation of a short-term rental without a short-term rental permit; and (2) certifies that the operation of a short-term rental in the residential dwelling will not be in violation of any covenants, conditions, and restrictions or other restrictions governing the use of the property and that any homeowners' association to which the property belongs has been notified of the application for a short-term rental permit. C. The City Manager or her designee shall evaluate evidence submitted by an applicant for a short-term rental permit pursuant to the exceptions listed above. The City Manager or her designee shall ask for any additional information deemed appropriate and shall render a final decision as to the issuance of the permit. There shall be no appeal. D. This Ordinance is an interim urgency ordinance adopted pursuant to the authority granted to the City of Palm Desert by Government Code Section 65858, and is for the immediate preservation of the public health, safety, and welfare. The facts constituting the urgency are: 2 72500.00896\29539721. I DRAFT 2/2/17 INTERIM URGENCY ORDINANCE NO. 1318 (1) as density and frequency of short-term rentals have grown, neighboring cities in the Coachella Valley have received an increasing number of public nuisance complaints emanating from those short-term residential rentals and have recently taken actions to ban or limit short-term rentals; (2) excessive density and frequency of short-term rentals may threaten the character of existing residential neighborhoods; (3) the density and frequency of short-term rentals within the City has gradually grown over the last several years; recent limits placed elsewhere in the Coachella Valley may cause a significant increase in applications for short-term rental permits in the City; (4) the City needs more time to conduct an in depth study of short-term rentals to determine the necessary regulatory requirements to ensure that short-term rentals do fundamentally alter the character of existing residential neighborhoods. E. This moratorium shall not apply to existing short-term rental permits. F. The City finds and declares that this moratorium is a reasonable and necessary measure designed to protect the important public purpose of the preservation of the public health, safety, and welfare. SECTION 2. Compliance with California Environmental Quality Act. The City Council finds that this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in 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. SECTION 3. Severability. If any sentence, clause, or phrase of this Ordinance, or any part thereof is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each sentence, clause, or phrase thereof, irrespective of the fact that any one or more sentence, clause, or phrase be declared unconstitutional. SECTION 4. Effective Date. This Ordinance shall become effective immediately upon adoption if adopted by at a least four -fifths (4/5) vote of the City Council and shall be in effect for 10 months and 15 days from the date of adoption unless extended by the City Council as provided for in the Government Code. 3 72500 00896\29539721.1 DRAFT 2,2/17 INTERIM URGENCY ORDINANCE NO. 1318 SECTION 5. Notice of Adoption. The City Clerk shall certify to the adoption of this Ordinance and cause it, or a summary of it, to be published once in a newspaper of general circulation printed and published within the City of Palm Desert. PASSED, APPROVED and ADOPTED this 23rd day of February, 2017, by the City Council of the City of Palm Desert, California, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA 4 JAN HARNIK, MAYOR 72500.00896\29539721 1 DRAFT 2'2/17 INTERIM URGENCY ORDINANCE NO. 1318 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE )ss. CITY OF PALM DESERT ) CERTIFICATION FOR INTERIM URGENCY ORDINANCE NO. I, Rachelle D. Klassen, City Clerk for the City of Palm Desert, California, DO HEREBY CERTIFY that Interim Urgency Ordinance No. , the reading in full thereof unanimously waived, was duly passed and adopted at a regular meeting of the City Council held on the 23rd day of February 2017, and said Ordinance was passed and adopted by the following stated vote, to wit: AYES: NOES: ABSENT: ABSTAIN: and was thereafter on said day signed by the Mayor of the City of Palm Desert. ATTEST: APPROVED AS TO FORM: RACHELLE D. KLASSEN, CITY CLERK ROBERT W. HARGREAVES CITY OF PALM DESERT, CALIFORNIA CITY ATTORNEY 5 72500.00896y29539721 1 DRAFT 2'2:17 INTERIM URGENCY ORDINANCE NO. 1318 woe Dso Cain.Paistayn Kilts '>ess Gerald Nor- D• L r. Tanrar.r Country C to rimy bin,7tra Dr Rancho Wage Ones nut Ciro Nv FC 5usir Uld Mandel bad County. CLib •7 • r R:� Pb c u pno Crack �..+ Colt Club r O1rrIry Clu[ D'. Smarms Country C lub i]n Aye Yarnost ■ sJMidbr+ mop PViIn Vinsaa G■nnn Country Club Country C lub Ram:nFid tby LMfr) Deeerl Z Girt7ans Short Term Rental Heat Map CityBoundary Dense Sparse C As rc Club Re lr CayrM . ' 7BrhA.a PIAetlen Ya11cy Ct IFCS It Kit di: Wel Is ,ryrif'r�L ClrIVIail i .Y .. 7, CPsryrlryLaC1+I • '• . LaQriola .Risen LaL ! -Z tc- n Ta Desert, CounLy,of Riverside, Bureau of Land Management Esri, HERE, DeLorme, INCREMENT P, InteymaPIU5 9 METI/I f ° NP A„FtiPA- USDA City of Palm Canyons Al BtOWnl s:. kyle ha' INTERIM URGENCY ORDINANCE NO. 1318 CITY OF PALM DESERT LEGAL NOTICE CASE NO. ZOA 16-364 NOTICE OF A PUBLIC HEARING BEFORE THE PALM DESERT CITY COUNCIL FOR CONSIDERATION TO APPROVE AN INTERIM URGENCY ORDINANCE OF THE CITY OF PALM DESERT, CALIFORNIA, MAKING FINDINGS AND EXTENDING A TEMPORARY MORATORIUM ON THE ISSUANCE OF SHORT-TERM RENTAL PERMITS CITY-WIDE FOR AN ADDITIONAL TEN MONTHS AND FIFTEEN DAYS. The City Council finds that this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in 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 Location: City -Wide Recommendation: Staff is recommending that the City Council approve the above request. The City has begun studying the issues related to short-term rentals and has formed a subcommittee group. However, the City needs more time to conduct an in depth study of short- term rentals to determine the necessary regulatory requirements to ensure that short-term rentals do fundamentally alter the character of existing residential neighborhoods. Public Hearing: The public hearing will be held before the City Council on February 23, 2017, at 4:00 pm. Comment Period: Based on the time limits defined by CEQA, your response should be sent at the earliest possible date. The public comment period on this project is from February 12 to February 23, 2017. Public Review: Please submit written comments to the Planning Department. If any group challenges the action in court, issues raised may be limited to only those issues raised at the public hearing described in this notice or in written correspondence at, or prior to, the City Council hearing. All comments and any questions should be directed to: Kevin Swartz, Associate Planner 73-510 Fred Waring Drive Palm Desert, CA 92260 (760) 346-0611 kswartz@cityofpalmdesert.org PUBLISH: DESERT SUN RACHELLE KLASSEN, City Clerk February 12, 2017 Palm Desert City Council