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HomeMy WebLinkAboutOrd 1332 - STR Staff Report AMENDEDAMENDED STAFF REPORT CITY OF PALM DESERT COMMUNITY DEVELOPMENT DEPARTMENT MEETING DATE: November 16, 2017 REQUEST: Recommendation Consideration to approve amendments to Palm Desert Municipal Code Chapter 5.10 Short -Term Rentals in regards to enforcement, operational standards, communication, and zoning requirements for short-term rentals within the City of Palm Desert, including elimination of certain short-term rentals in R-1 and R-2 zones . Rec: 1) Waive further reading and adopt Ordinance No. 1332, amending Palm Desert Municipal Code Chapter 5.10 - Short -Term Rentals (STRs), implementing best practices in management and prohibiting issuance of certain new STR permits within the R-1 and R-2 zones and eliminating certain STR permits within the R-1 and R-2 zones, including the following amendments made by City Council (Council) at the October 26, 2017, meeting: OR 2) Waive further reading and pass Ordinance No. 1332 to second reading, amending Palm Desert Municipal Code Chapter 5.10 - Short -Term Rentals (STRs), implementing best practices in management and prohibiting issuance of certain new STR permits within the R-1 and R-2 zones and eliminating certain STR permits within the R-1 and R-2 zones, including the following amendments made by Council at the October 26, 2017, meeting: a) Existing STR permits in R-1 and R-2 Zones may be renewed if otherwise qualified, but all such STR permits (excluding On -Site Owner STR Permits) shall terminate, and such uses permanently cease operation by July 1, 2019. Additional renewals for operation beyond July 1, 2019, may be granted only by the City Manager based on criteria outlined in Section 25.34.140 - "Exceptions Based on Unconstitutional Takings." b) Removing all language regarding Temporary STR permits. c) Amending violation language regarding operating a STR without a permit to read, "a fine in an amount up to five thousand dollars ($5,000) for the first citation and each additional citation, and the City having the right to refuse the issuance of any new or renewed STR permit for the cited property and/or to the cited Owner and/or Operator anywhere else within the City." d) Reporting back to the Council at a later date (not to exceed nine (9) months) regarding STR issues. November 16, 2017 — Staff Report Chapter 5.10 Short -Term Rentals (STRs) Page 2 of 2 Discussion On October 26, 2017, the Council approved staffs recommendation to implement new regulations for STRs related to enforcement, operations, communications, and prohibiting new STRs within the R-1 and R-2 zones. The Council amended staff's recommendation to include the following: • A sunset clause that all existing STRs within the R-1 and R-2 zones can continue to operate until July 1, 2019. (Section 5.10.070 Letter C) • Remove all language regarding the Temporary STR permit, which would have allowed a homeowner to have the option of renting their home for four (4) separate occasions totaling no more than eighteen (18) days per calendar year. • Amend the fine structure for operating a STR without a permit, to be able to fine the homeowner up to $5,000 for the first and each additional citation, and the City has the right to refuse a STR permit to that owner. (Section 5.10.120 Letter E) • To report back to the Council within nine (9) months. Additionally, the recommendation provided direction to hire a new swing shift Code Compliance Officer and to take other actions in support of an increased level of STR management. Staff has made all of the modifications to the attached ordinance (Exhibit "A"), which are highlighted in yellow. At the October 26, 2017 meeting, the Council approved the first reading of the ordinance. Given the changes made at the meeting, Council may decide to move forward at this time to adopt the ordinance at second reading (Option 1) or reintroduce the ordinance to first reading (Option 2). There are two versions of the ordinance provided: Option 1 for Adoption and Option 2 for Introduction. Staff has also attached letters received since the October 26, 2017, meeting in opposition and support of Council's decision. Prepared by: Kevin Swartz, Associate Planner LEGAL REVIEW Approved as to Form 21.E -f o✓ Ryan Stendell Robert W. Hargreaves Dir. of Community City Attorney Development DEPT. REVIEW FINANCIAL REVIEW CITY MANAGER ATTACHMENTS: J net oore Lauri Aylaian Dir ctor of Finance City Manager 1. Two version (Option 1 and Option 2) of City Council Ordinance No.1332 (Exhibit "A"); amending changes to Chapter 5.10 Short -Term Rentals of the City's Municipal Code 2. Correspondences received [OPTION 1: FOR ADOPTION] ORDINANCE NO. 1332 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING AMENDMENTS TO PALM DESERT MUNICIPAL CODE CHAPTER 5.10 SHORT-TERM RENTALS IN REGARDS TO ENFORCEMENT, OPERATIONAL STANDARDS, COMMUNICATION, AND ZONING REQUIREMENTS FOR SHORT-TERM RENTALS WITHIN THE CITY OF PALM DESERT, INCLUDING ELIMINATION OF CERTAIN SHORT- TERM RENTALS IN R-1 AND R-2 ZONES WHEREAS, pursuant to the authority granted to the City of Palm Desert ("City') by Article XI, Section 7 of the California Constitution, the City has the police power to regulate the use of land and property within the City in a manner designed to promote public convenience and general prosperity, as well as public health, welfare, and safety; and WHEREAS, adoption and enforcement of regulations and other land use regulations lies within the City's police powers; and WHEREAS, the City Council established an Ad Hoc Short -Term Rental Subcommittee, comprised of industry representatives, elected officials, community members, and City staff, to review the existing ordinance and to make recommendations for changes on how the City should regulate short-term rentals; and WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 3rd day of October 2017, hold a duly noticed public hearing to consider recommendations from the Ad Hoc Short -Term Rental Committee in regards to enforcement, operational requirements, communication, and density to the City Council; and WHEREAS, the City Council of the City of Palm Desert, California, did on the 26th day of October, 2017, hold a duly noticed public hearing to consider two recommendations one from the Ad Hoc Short -Term Rental Committee and one from City staff amending Chapter 5.10 Short -Term Rentals in regards to enforcement, operational requirements, communication, and density of short- term rentals throughout the City, and approved staffs recommendation with clearly specified modifications, including elimination of certain Short Term Rentals in R-1 and R-2 Zones in specified time frames; and WHEREAS, the City Council of the City of Palm Desert, California, did on the 26th day of October, 2017, approve first reading of Ordinance 1332 with the previously specified changes; and WHEREAS, the City Council of the City of Palm Desert, California has determined that the amendments to Municipal Code Chapters 5.10, are consistent with the General Plan and applicable state law; and WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, said City Council did find the following facts and reasons to exist to approve said ordinance: NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Palm Desert, California as follows: ORDINANCE NO. 1332 SECTION 1. Adoption of Recitals. The City Council hereby adopts the foregoing recitals as its findings in support of the following regulations and further finds that the following regulations, including the eventual elimination of certain short term rentals in R-1 and R-2 zones are beneficial and appropriate to protect the health, safety and welfare of the residents and businesses of Palm Desert within the City limits. SECTION 2. Adoption of amendments to Chapter 5.10 "Short -Term Rentals" of the Citv's Zoning Ordinance as identified in "Exhibit A". SECTION 3. Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase in this ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof irrespective of the fact that any one (1) or more subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared unconstitutional, or invalid, or ineffective. SECTION 4. California Environmental Quality Act Finding. The City of Palm Desert (City), in its capacity as the Lead Agency under the California Environmental Quality Act (CEQA), has determined that the amendments to Chapter 5.10 is exempt from CEQA review pursuant to Section 15061(b)3 in that the amendments to further regulate the use of short-term rentals will not have a significant negative impact on the environment. SECTION 5. Publication. The City Clerk of the City of Palm Desert, California, is hereby directed to publish this ordinance in The Desert Sun, a newspaper of general circulation, published and circulated in the City of Palm Desert, California, and shall be in full force and effect thirty (30) days after its adoption. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm Desert, California, at its regular meeting held on the day of , 2017, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: JAN C. HARNIK, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA [OPTION 2: FOR INTRODUCTION] ORDINANCE NO. 1332 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING AMENDMENTS TO PALM DESERT MUNICIPAL CODE CHAPTER 5.10 SHORT-TERM RENTALS IN REGARDS TO ENFORCEMENT, OPERATIONAL STANDARDS, COMMUNICATION, AND ZONING REQUIREMENTS FOR SHORT-TERM RENTALS WITHIN THE CITY OF PALM DESERT, INCLUDING ELIMINATION OF CERTAIN SHORT- TERM RENTALS IN R-1 AND R-2 ZONES WHEREAS, pursuant to the authority granted to the City of Palm Desert ("City") by Article XI, Section 7 of the California Constitution, the City has the police power to regulate the use of land and property within the City in a manner designed to promote public convenience and general prosperity, as well as public health, welfare, and safety; and WHEREAS, adoption and enforcement of regulations and other land use regulations lies within the City's police powers; and WHEREAS, the City Council established an Ad Hoc Short -Term Rental Subcommittee, comprised of industry representatives, elected officials, community members, and City staff, to review the existing ordinance and to make recommendations for changes on how the City should regulate short-term rentals; and WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 3`d day of October 2017, hold a duly noticed public hearing to consider recommendations from the Ad Hoc Short -Term Rental Committee in regards to enforcement, operational requirements, communication, and density to the City Council; and WHEREAS, the City Council of the City of Palm Desert, California, did on the 26th day of October, 2017, hold a duly noticed public hearing to consider two recommendations one from the Ad Hoc Short -Term Rental Committee and one from City staff amending Chapter 5.10 Short -Term Rentals in regards to enforcement, operational requirements, communication, and density of short- term rentals throughout the City, and approved staff's recommendation with clearly specified modifications, including elimination of certain Short Term Rentals in R-1 and R-2 Zones in specified time frames; and WHEREAS, the City Council of the City of Palm Desert, California, did on the 16th day of November, 2017, approve first reading of Ordinance 1332 with the previously specified changes; and WHEREAS, the City Council of the City of Palm Desert, California, did on the 14'h day of December, 2017, approve second reading of Ordinance 1332; and WHEREAS, the City Council of the City of Palm Desert, California has determined that the amendments to Municipal Code Chapters 5.10, are consistent with the General Plan and applicable state law; and WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, said City Council did find the following facts and reasons to exist to approve said ordinance: ORDINANCE NO. 1332 NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Palm Desert, California as follows: SECTION 1. Adoption of Recitals. The City Council hereby adopts the foregoing recitals as its findings in support of the following regulations and further finds that the following regulations, including the eventual elimination of certain short term rentals in R-1 and R-2 zones are beneficial and appropriate to protect the health, safety and welfare of the residents and businesses of Palm Desert within the City limits. SECTION 2. Adoption of amendments to Chapter 5.10 "Short -Term Rentals" of the Citv's Zoning Ordinance as identified in "Exhibit A". SECTION 3. Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase in this ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof irrespective of the fact that any one (1) or more subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared unconstitutional, or invalid, or ineffective. SECTION 4. California Environmental Quality Act Finding. The City of Palm Desert (City), in its capacity as the Lead Agency under the California Environmental Quality Act (CEQA), has determined that the amendments to Chapter 5.10 is exempt from CEQA review pursuant to Section 15061(b)3 in that the amendments to further regulate the use of short-term rentals will not have a significant negative impact on the environment. SECTION 5. Publication. The City Clerk of the City of Palm Desert, California, is hereby directed to publish this ordinance in The Desert Sun, a newspaper of general circulation, published and circulated in the City of Palm Desert, California, and shall be in full force and effect thirty (30) days after its adoption. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm Desert, California, at its regular meeting held on the day of . 2017, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: JAN C. HARNIK, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA