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HomeMy WebLinkAboutSupplmnt Info 2 - Ord 1332 CorrespondenceSwartz, Kevin From: Robert Hargreaves <Robert.Hargreaves@bbklaw.com> Sent: Thursday, November 16, 2017 7:28 AM To: Klassen, Rachelle; Swartz, Kevin Subject: FW: Vacation Rental Laws —November 16, 2017 From: pamela manno fmailto:minnowmaidenCa�amail.com1 Sent: Thursday, November 16, 2017 6:54 AM To: Robert Hargreaves Subject: Vacation Rental Laws —November 16, 2017 NOVEMBER 16, 2017 PALM DESERT CITY HALL 73510 Fred Waring Drive Palm Desert. CA 92260 Good Morning City Attorney Hargreaves: Thank you for your service and leadership. and I rely on you and the Palm Desert Council to resolve our community challenges with solutions that improve our "community". Palm Desert relies heavily on tourism, the "snowbirds" vacationers, and family visitors for their economy and success. To enforce harsh vacation laws, such as, panning new Vacation Rental permits, and phasing out existing permits in residential zones by July, 2019 will have a severe negative impact on our economy and community. I implore you to think about this very carefully. I realize "Vacation Rental" laws are a complex problem, and I understand the concerns over vacation rentals. I see this from both sides. as an owner that lives next to vacation rentals, and as a renter myself. However, I feel Nanning vacation rental permits will have irreversible consequences on the local economy and community. If you remove vacation rentals. many people in the community will loose their source of income, and it will force them, many of my friends, and family to move away due to the harsh economic hardship. Is that really the hest solution'? I believe a Netter economical solution is with robust enforcement, through additional code enforcement officers and higher penalties for offenders. Furthermore, imposing a minimum age requirement on vacation rental renters has had an effective and positive outcome in many tourist areas, and it has resolved many "noise" complaints. Even though I will not he able to attend this evening's meeting. I would like to know what can I do to help you'? Kind Regards, Pamela Manno 187 MADRID AVE, PALM DESERT MINNOWMAIDEN@GMAIL.COM This email and any files or attachments transmitted with it may contain privileged or otherwise confidential 1 Swartz, Kevin From: Jann Buller <jannb774@gmail.com> Sent: Wednesday, November 15, 2017 5:42 PM To: Harnik, Jan; Jonathan, Sabby; Kelly, Kathleen; weber; Nestande, Gina; Stendell, Ryan; Swartz, Kevin; Aylaian, Lauri Subject: STR compromise To: Mayor, Mayor Pro Tem and Council Members From: Jann Buller 73110 Somera Road Palm Desert, CA 92260 Re: Short-term Rental Compromise You've encouraged stakeholder participation in addressing this contentious issue. You've been clear about your desire for a balanced solution or compromise. On October 26, you found one: • How industry benefits from the approved ordinance: o Continued operation of 952 (80%) of currently permitted STRs in R3/PR o Continued operation of currently permitted STRs in R1/R2 with on -site owner or in HOAs allowing them o Opportunity to earn income on other R1/R2 properties as long-term rentals o Potential for unconstrained STR growth in 84% of the city's dwelling units • What industry gives up in the approved ordinance: o Unconstrained growth in future STRs in R1/R2 (16% of total dwelling units) o Higher profitability on 276 R1/R2 properties operated as STRs vs long-term rentals • How residents benefit from the approved ordinance: o Limits on future STRs in R1/R2, where STR density and complaints are highest o Eventual phase -out of most currently permitted STRs in R1/R2 • What residents give up in the approved ordinance: o A return to 30-day rentals and prohibition on STRs citywide o Acceptance of STRs where the owner is on -site or in HOAs that allow them I've read and analyzed all written comments the city has posted from the 74 opponents of the approved ordinance and attended all public forums. Not one opponent has ever offered to give anything up. They want it all. Every zone. No buffers. No density limits. All they suggest is better enforcement. And they expect the city — us taxpayers — to pay for enforcement to address the problems they are causing. Council has explicitly asked the residents what we'd be willing to give up. Where we could make compromises. We answered you, you heard us, and we applaud your decision as balanced and reasonable. I've never heard any one from the city ask the industry what they'd be willing to give up. Have you done so? If yes, it would be interesting to know their answer. Tomorrow please reaffirm your even-handed solution on STRs. And thank you for your dedication and service to our city. Cc: Ryan Stendell Kevin Swartz Laurie Aylaian i Swartz, Kevin From: Robert Hargreaves <Robert.Hargreaves@bbklaw.com> Sent: Thursday, November 16, 2017 6:06 AM To: Swartz, Kevin; Klassen, Rachelle Subject: Fwd: URGENT: Short Term Vacation Rental - City Council Meeting Robert Hargreaves Partner robert.hargreaves@bbklaw.com T: (760) 837-1604 C: (760) 861-0347 www.BBKlaw.com R- Begin forwarded message: From: "interWays - connect Your world..." <info.g@interways.de> Date: November 15, 2017 at 7:07:58 PM PST To: <Robert.Hargreaves@BBKLaw.com> Subject: URGENT: Short Term Vacation Rental - City Council Meeting Reply -To: "interWays - connect Your world..." <info@interways.de> Dear City Attorney Hargreaves, we are writing you as owners of a vacation rental property in the Palm Desert Country Club area, specifically New York Avenue. We have heard about the proposed ban on vacation rentals in residential neighborhoods and would like you to consider these items before voting tomorrow: • We are from Germany and have been coming to Palm Desert for many years now. After some thought, we had decided on a vacation property here in 2013, and have invested several hundred thousand dollars in the rather low income Palm Desert Country Club area. We bought a nice house and redid almost everything. • We have spent 200,000 $ in improvements, remodeling the front yard, the driveways, the outside of the house, a new pool, landscaping throughout. This has helped the local community by giving the neighborhood a nicer feel and look. • We have, and are continuing to, support the local economy by hiring local contractors (the above work was done by local companies), hiring gardener, pool boy, property management, all local contractors. This brings almost 50,000 $ alone each year into the local economy. • We have been renting the house for four years now, and never had a single complaint. Our management company, Vacation Palm Springs, are doing an excellent job in ascertaining that guests comply with all noise rules. • Our neighbors are glad the house (that has sat empty for a long time before we bought it) is occupied most of the time, especially during the summer months, when we are not in the area ourselves. The neighbors liked all guests and had nice conversations, they value the added value to the area and their property we have achieved by remodeling the old house nicely. 1 • Especially during the slower summer months, vacation houses can bring some life into an otherwise silent and empty neighborhood. • Restricting vacation rental, which is essential for a home like this, as we can only come for a few weeks per year, will essentially force us to cut back on local jobs by reducing pool and gardening service, perhaps even selling the house in the long run. This will, as we have seen, further put pressure on the home values in the area, since we have seen four for -sale -signs come up in our street in the past week alone, after the new rule was publicized. Negative impact: Property prices are going to decline for all neighbors, more properties will come onto the market and reduce prices overall, many houses are going to be less maintained, empty houses during slower months add to the neighborhoods being dead and rundown. Local contractors will get fewer jobs and contracts. Neighbors will have empty and less -nicely maintained houses in the area. Again: In four years, we have not had a single complaint from neighbors, on the contrary. Only favorable impressions. You certainly remember Palm Springs in the 1980's, forgetting that tourism is the mainstay of the economy, and cutting back on tourism. The result: 10-15 years of economic downturn, that has just recently begun to change to the better again. The Coachella Valley is dependent on tourism, the local economy is based on tourism. Cutting back on the modern forms of that is going to have a severely negative impact on Palm Desert — R1 and R2 zones are just the beginning. The PR zone will be next if precedent is set here. We strongly support rules and strict enforcement, which would give residents the assurance that no noise or other disturbance will be occurring in the future. Please bear in mind, the Desert Cities are RESORT Cities. Don't start to destroy the resort almost everyone here depends on. Thank you for considering our thoughts on this Christian Heiss, Isabelle Heiss, and our children 76908 New York Ave Palm Desert, 92211 415-639-8414 This email and any files or attachments transmitted with it may contain privileged or otherwise confidential information. If you are not the intended recipient, or believe that you may have received this communication in error, please advise the sender via reply email and immediately delete the email you received. 2 Swartz, Kevin From: Office <office@groundlevelinc.com> Sent: Thursday, November 16, 2017 6:15 AM To: Harnik, Jan; Jonathan, Sabby; Kelly, Kathleen; Nestande, Gina; Weber, Susan Marie; Aylaian, Lauri Cc: Swartz, Kevin; Stendell, Ryan; O'Reilly, Monica; Evans, Donna; Stanley, Jane Subject: FW: Melissa Nale - Short Term Rental Ordinance Comments Mayor Harnik, Councilmembers, I forgot how much fun public speaking was and how fast three minutes passed on October 26`h. I had a long drive home and left early, felt defeated I didn't get out all of what I needed to say, but I was sincerely shocked to hear the vote was to terminate all short term rentals by July 1, 2019 in R-1 and R-2 zones when I called in to hear the results. I immediately felt sorry for my guests and my family. Many of my guests have been coming to our house for six years in a row with current reservations through May 2018. They book with me year after year. They don't party, they are families, retirees, grandparents, parents, groups of friends seeking a more intimate vacation experience. Also, my family enjoys the house on the odd weekend it isn't rented. We've talked about building a pool at our house here and our 5 year old daughter asked, but if we build a pool here can we still go to Palm Desert? She loves Palm Desert and has already associated Palm Desert with family fun and we want to continue to come there! Working and caring for our family from home and often cooking three meals a day, we come there to Palm Desert enjoy the sun, the pool and eat out three meals a day enjoying family time without cooking and dishes Our plan was to continue the short term rental until our own retirement when we can spend more time there with our family and grandchildren someday as our current guests do. Your decision today will affect what we decide to do with the property. Changing it to a long term rental makes me afraid that a long term renter won't keep the property to a level of standard that I'm used to maintaining -many renters try to save money by doing their own pool cleaning, their own yardwork, etc. and just don't care for the property as much as a homeowner. We all know how that will turn out. My pool cleaner, landscape/gardener, cleaner, exterminator, property manager/inspector etc. will be out of jobs. Granted, I represent one house, a lot of revenue will be lost across Palm Desert. I don't foresee it being a possibility to keep it for just my one month long guests or it being financially stable without some amount of short term rentals amongst the very few month long rental guests. If you believe these guests will return to Palm Desert and stay at a hotel, I feel like we are all sadly mistaken. This vacation rental market has exploded for a reason. Young, old, this is not a generational thing either. For example, one older couple from Carlsbad comes twice a year. They rent a three bedroom house for the two of them rather than a hotel. Many people like to travel with family pets, not allowed in most hotels. These guests will go to other cities and spend their money at neighboring businesses/restaurants while staying in another VRBO/Airbnb house maybe not necessarily in the Coachella Valley. Many guests will have to rethink their yearly vacation plans. My guests enjoy a central location to El Paseo, the mall, restaurants walking to restaurants/entertainment, not getting in their car and driving to another city. These visitors spend enormous amounts of money benefitting valley residents. They want a personal vacation with the people they choose to spend their time with, not the drunk guy at the hotel pool/bar, not other people's upset young children, not 100 of their closest friends. They want to enjoy time together at a destination, not in separated hotel rooms. Comfort within nice upkept, facilities are at the top of the list. Besides location, the most asked question I get: "Is this in a quiet neighborhood, away from busy roads?" Enforcement is key. If a code officer is called out and the situation is resolved, I would propose no fine would be assessed. If a code officer is called out again for that same guest during their stay, fines are assessed and as a homeowner I would like some sort of "teeth" in an ordinance saying they would have to vacate the premise at the point 1 a fine is assessed. Also, increase minimum stays to 4 or 5 night minimums. The most disruptive people I believe are the people that pay for two nights/three days, spending the minimum amount of money for the maximum amount of fun. I know this is a complex issue and I understand the concerns of disrupted neighborhoods, but please don't punish the business owners that have been following the rules this whole time and have not caused a disturbance to date. Please allow strict enforcement a chance to take out the bad players in R-1 and R-2 districts, and let good short term rentals continue to thrive and provide outstanding vacations to a City that will always be a vacation destination. Thank you, Melissa Nale From: GLI Office [mailto:office@groundlevelinc.com] Sent: Wednesday, September 27, 2017 12:06 PM To: jharnik@cityofpalmdesert.org; sjonathan@cityofpalmdesert.org; kkelly@cityofpalmdesert.org; gnestande@cityofpalmdesert.org; sweber@cityofpalmdesert.org; laylaian@cityofpalmdesert.org Cc: kswartz@cityofpalmdesert.org; rstendell@cityofpalmdesert.org; moreilly@cityofpalmdesert.org; devans@cityofpalmdesert.org; jstanley@cityofpalmdesert.org Subject: Melissa Nale - Short Term Rental Ordinance Comments Hello everyone! My name is Melissa Nale, formerly Missy Wightman of the Planning Department. Since resigning in 2013? to care for my new young family I have also been operating a vacation rental that started around this time period and also fulfill the role of office manager for our own contracting business. I think I resigned to be less busy and be a stay at home mom and I am now more busy with a 2 and 4 year old that don't let me rest for a moment. The vacation rental business came about not by direct choice, but I had fixed up my home to a value higher than adjacent properties and although I had buyers lined up the appraisals didn't match agreed upon pricing so I decided to keep it. Since I was moving out of the area, I listed it on VRBO as a trial and it was rented that weekend. And so passes, 5+ years of steady visitors to the valley. This business is not headache free, it is a constant maintenance game, and you are on call 24/7 mostly to answer trivial questions like how to turn on the pool light? Or how do I turn on the TV? I am proud to say, I am not aware of one complaint and my neighbor to the south that has lived there since before I bought the house has had my phone number since day one and has never called me once regarding the rental. I stop by about once a year to check on her and see how everything is going. I had numerous neighbors stop by during initial renovations telling me how happy they were to see all the improvements. I was notified of the short term rental proposed ordinance from some group via e-mail. My top concerns with this proposed ordinance are that the short term rental permit is not transferrable to a new owner should I want to sell the business I built (I have about a 75% return guest rate every year), Section 5.10.110 is overly redundant and unrealistic in operating terms, notifying neighbors every year upon renewal is unnecessary- for me the concern is inviting crime into neighborhoods by announcing this is a vacation rental and at times may be vacant. I think adjacent neighbors is sufficient. My detailed notes are below. I'm always available if you have questions I may address. I plan to attend the Planning Commission meeting if I can make arrangements and will definitely be at the City Council meeting. I wanted to offer my comments prior to the study session this afternoon albeit last minute I received the e-mail yesterday and had to read the document first. You can visit my listing by googling VRBO 382428 and see what visitors have to say as well. I have always tried to follow every rule Palm Desert has put in place and hope my comments are considered prior to finalizing a document. Furthermore, TOT increases each year you have a successful operator. Year to date, I've paid $3,116.91 in TOT, over $1,000 more than all of last year already. How many vacation rentals are in Palm Desert? -that adds up! I only noted the first few words of each section for reference, my comments follow in italics. 2 Short Term Rental Permit and a Transient Occupancy Registration Permit - redundant works fine now, with just the Short Term Rental Permit, consolidate? 5.10.060 D Upon the issuance of the a new Short -Term Rental Permit and a renewal permit, the City shall mail a notice to the owners and occupants of all residences within 200 feet of the property Tine of the rental unit...I believe this is unnecessary at renewal yearly. Once is enough at initial permitting, I understand the notification. 5.10.060 F Within 14 days of a change...This is not realistic if an owner uses a property manager/operator and the owner has to fire them. Renters are consistent and typically booked a year out. So if I have to hire a new service, I notify the City and wait for a new permit to be issued and cancel rentals that have been on the books for months/refund money until a new permit is issued. This is not realistic- Palm Desert would have a lot of unhappy visitors that would likely not return. You should be able to provide City new information and not wait for a new permit. 5.10.060 H A Short Term Rental Permit must be renewed...City shall mail courtesy notice 30 days prior to vacation rental owners. 5.10.070 D An existing Short -Term Rental....disagree with the no change of ownership clause. I have built a business over the last 5 years with loyal customers. I should be able to sell my business if I choose, just like nearly any other business. 5.10.070 E The City shall maintain a current map.../s that available for public to view now prior to meetings? 5.10.100 Trash and refuse...should not be an issue. Require Burrtec gate service. I've done this for the past few years. It's not expensive. 5.10.110 Overly redundant and Unrealistic 1. Unrealistic meet and greet. People come on their own timelines. You may set up to meet a guest at noon, they get lost, they run into weather traveling from Canada, they decided to stop off for lunch, any number of reasons they show up four hours later, their plane got delayed, them come a day later. I rarely meet guests at the house and never have had a problem. This clause would make scheduling nearly impossible. 75% of my guests are return visitors, some come yearly, some come multiple times a year (they know the rules, they know the house). 1D's copies are provided at the time a rental agreement is signed prior to occupancy including name, address, and phone number they can be reached at if they don't answer the house phone. 2. Can be located in house book or posted in house 3. Located in House rules, also in rental agreement 4. A rental agreement is signed by every guest prior to occupancy stating these rules. 5.Yes, always. 6. Rental agreement signed acknowledging this. 7. A repeat of item 2. 8. Require Burrtec gate service, problem solved. 9. haha this one gave me a good laugh, people are not going to read ordinances on their vacations. Ordinances are not at the top my literary reading lists ()This is so unrealistic. Furthermore this is in the Good neighbor brochure 10. This is in good neighbor brochure 11. Good neighbor brochure Sorry for lengthy e-mail, but I believe this ordinance needs some revisions to be realistically implemented. My phone number is 760-799-2581 and I'd be happy to address any and all questions, comments, etc. Thank you, Melissa Nale Ground Level, Inc. P.O. Box 758 Fallbrook, CA 92088 Office Phone: 760.744.8848 Cel. Phone: 760.799.2581 3 Swartz, Kevin From: Stendell, Ryan Sent: Thursday, November 16, 2017 8:04 AM To: Swartz, Kevin Subject: FW: Vacation Rental Laws —November 16, 2017 Ryan Stendell Director of Community Development Ph: 760.346.0611 Direct: 760.776.6386 rstendell@cityofpalmdesert.org From: Peter Manno Finallto:mno2mno(me.com] Sent: Thursday, November 16, 2017 7:26 AM To: Stendell, Ryan Subject: Vacation Rental Laws —November 16, 2017 NOVEMBER 16, 2017 PALM DESERT CITY HALL 73510 Fred Waring Drive Palm Desert, CA 92260 Good Morning Planning Director Stendell: While I understand the concerns over vacation rentals, I believe banning or "removing" vacation rentals from residential zones will have severe economic impact on Restaurants, Tourism activities, Desert Events, Non-profit Organizations, and finally, the community. Even though I support the Council's initial approach to implement new enforcement measures, I do NOT support the removal or banning of vacation rental permits in residential zones. Enforcing license requirements, higher penalties for offenders, and hiring additional enforcement officers, offer a smarter economic solution for the 'the smartest address in the American desert'. Palm desert, has always signified, "Design creativity, and the result has been structures that celebrate living, for a care free `seasonal' use." Furthermore, what is the true definition of "residential"— a Condo, Residential Single family, Residential Multiple family, Assisted Living, or Estate? Whether I live in Palm Desert for one week while visiting family, for 6 months, or I'm visiting for a Golf event: it's all residential. Therefore, why would we even consider destroying our community, when it's the primary the reason for our existence? Please clearly evaluate ALL data, before making a hasty decision that will have irreversible consequences on our economy and community. Sincerely, Peter Manno 187 Madrid, Palm Desert, CA mno2mnuCq mc.com 1 Swartz, Kevin From: Stendell, Ryan Sent: Thursday, November 16, 2017 8:04 AM To: Swartz, Kevin Subject: FW: Vacation Rental Laws —November 16, 2017 Ryan Stendell Director of Community Development Ph: 760.346.0611 Direct: 760.776.6386 rstendell@cityofpalmdesert.org From: pamela manno I-mailto:minnowmaidenC@amail.comj Sent: Thursday, November 16, 2017 6:56 AM To: Stendell, Ryan Subject: Vacation Rental Laws —November 16, 2017 NOVEMBER 16. 2017 PALM DESERT CITY HALL 73510 Fred Waring Drive Palm Desert, CA 92260 Good Morning Planning Director Stendell: Thank you for your service and leadership. and I rely on you and the Palm Desert Council to resolve our community challenges with solutions that improve our "community". Palm Desert relies heavily on tourism, the "snowbirds", vacationers, and family visitors for their economy and success. To enforce harsh vacation laws, such as. Nanning new Vacation Rental permits. and phasing out existing permits in residential zones by July. 2019 will have a severe negative impact on our economy and community. I implore you to think about this very carefully. I realize "Vacation Rental" laws are a complex problem. and I understand the concerns over vacation rentals. I see this from both sides, as an owner that lives next to vacation rentals, and as a renter myself. However, I feel Nanning vacation rental permits wilt have irreversible consequences on the local economy and community. If you remove vacation rentals. many people in the community will loose their source of income, and it will force them. many of my friends, and family to move away due to the harsh economic hardship. Is that really the hest solution? I believe a Netter economical solution is with robust enforcement, through additional code enforcement officers and higher penalties for offenders. Furthermore, imposing a minimum age requirement on vacation rental renters has had an effective and positive outcome in many tourist areas. and it has resolved many "noise" complaints. Even though 1 will not he able to attend this evening's meeting. I would like to know what can 1 do to help you'? Kind Regards, Pamela Manno 187 MADRID AVE, PALM DESERT MINNOWMAIDEN@GMAIL.COM 1 Douglas P. and Diane L. Bouche 747 Ensenada ('t. San Diego. CA 92109 November 7, 2017 Mayor Jan Harnik - City of Palm Desert Dear Ms. Harnik, We are owners of a home in Palm Desert which falls in the city's R2 zone. We have owned our home since 1984. We raised our children in this home until we were transferred overseas for work in 1991. Between August, 1991 and September, 2016, our home was a year-round rental, but we had always planned to keep the house and dreamed of using it as a second home for our family. We still have family and friends in the Coachella Valley. In 2000, we repatriated to San Diego. We continued to maintain the house as a full-time rental under property management. In September 2016 the house suffered a fire. The tenants relocated and we began the rebuild. We decided to take our home back and make it our second home with the help of income from short-term renting when we were not using it. We committed nearly $100,000 to upgrades and furnishings for our home and applied for and received our STR permit with The City of Palm Desert, knowing it would take several years to recover our invested funds. We recently retired and, along with our children, grandchildren and friends greatly enjoy spending time in our beautiful new home. Spending more time in our home here in the desert is the cornerstone of our retirement plan, and our STR income derived from our home enables us to keep the house so we can do that. We live on a fixed income and could not afford it otherwise. We think you should know that we are not part of the group of people who have bought property here to short-term rent for the sole purpose of making a pile of money. This is a quality of life issue for us. We consider this our home. We let all potential guests know that, and they are all carefully screened. Our guests are typically families, or guests in their 40s or older. They have all been very respectful of our property and our house rules, including those pertaining to city ordinances. We have never had any complaints from the neighbors, and we want to keep it that way. Regarding limiting guests stays to 28 days or more, we did receive a number of queries about that since we put our property on the STR market, but they were interested in more amenities than what we could offer (e.g., golf carts, tennis courts, etc., amenities you would more likely find in gated communities). We did not receive a single booking for 28+ days, even though we offered a 35% discount for these longer stays. From our experience so far, we expect to derive little, if any, income from this longer -term vacation rental market. We will not return our house to full-time rentals because this does not provide us the opportunity to enjoy it ourselves, and do not wish to be forced to sell our home to replenish our retirement funds we used to upgrade and furnish our home. We ask that you consider our situation and allow us to continue short-term rent our property beyond July 2019 as long as we continue to abide by city ordinances. This is our second home which we cannot afford to keep without STR income, and as we said spending time here in the desert is the cornerstone of our retirement plan. Please don't take that away from us. Sincerely, Douglas P. Bouche dnbouche@amail.com (858) 822-8708 Diane L. Bouche dbouche89P2mail.com (858) 822-8710 Swartz, Kevin From: Anastasiou, Ted <ted.anastasiou@rci.com> Sent: Thursday, November 16, 2017 7:29 AM To: Harnik, Jan; Nestande, Gina; Jonathan, Sabby; Weber, Susan Marie; Nestande, Gina; Kelly, Kathleen; Aylaian, Lauri; Klassen, Rachelle; Stendell, Ryan; Swartz, Kevin; CityhallMail Cc: robert.hargreaves@bbklaw.com; Coviello, Rita Subject: [SPAM] - E-mail from City Attorney Confirming 1st Reading Tonight Dear Mayor, Councilmembers, City Manager Aylaian, City Clerk Klassen, Community Development Director Stendell and Associate Planner Swartz: Please find below an e-mail which was sent to our local counsel from City Attorney Hargreaves regarding tonight's Council hearing. As you can see from the highlighted section below, the City Attorney mentions that the City has already decided to take the STR ordinance back to first reading. We hope this communication was made in good faith and that the City will indeed re -introduce the bill as a first reading, and we look forward to a positive and robust debate tonight. Thank you again for all your time and consideration on this very important issue, and we hope that a fair and reasonable compromise would be met tonight — one that gives enforcement a chance to work by extending the moratorium until the staff could review the effects of the new measures 9 months from implementation — the timeframe that the ordinance already provides for. Best regards, Ted Ted E. Anastasiou Counsel, Government Relations Global Legal Services Wyndham Destination Network 14 Sylvan Way Parsippany, NJ 07054 o: +1.973.753.6321 m: +1.862.296.6236 e: ted.anastasiou@rci.corn www. WYNDN, com A Wyndham Worldwide company, NYSE: WYN From: Robert Hargreaves Finailto:Robert.Hargreaves©bbklaw.comj Sent: Wednesday, November 08, 2017 1:57 PM To: Kiersten Merina Subject: RE: Notice of Brown Act Violation Hiltachk: Thank you for your letter. For a variety of reasons, including not wanting to gel side-tracked by peripheral issues, the city had already decided to take the short term rental ordinance back to first reading. 1 cannot however agree with your conclusion. Unlike the cases you site. the agenda description substantially described the nature of the action to he taken. More importantly, the city council did not act at first reading to prejudice anyone's rights. No amendments were passed; no permits were eliminated. The whole point of having two readings of an ordinance is to have the city council. at first reading. announce what it intends to do. The city council did that at first reading, succinctly. Interested persons then have the opportunity at second reading to provide input hefore the city council actually adopts the ordinance. If an ordinance is materially changed at the second reading, that reading then counts as the first reading of the changed ordinance, which then needs to come back at a subsequent meeting for second reading and adoption. Your clients would hay c had (and will have) the opportunity to address the proposed ban hefore it can he adopted. even if the matter was not returned to first reading. Regards Bob Hargreaves City Attorney, City of Palm Desert Thomas W. IIiitachk / Partner , BEM-., MCANDRE S / & HILTACIIK, LLP t '1,l,,l„/ v�,n, sr,n: bill arldrrt.°/u,,, ( I 95S/-/ rV/(u 44' - - OW), romh'u hmhlun tom nll�n� u, nil l iriilrr Circular 230 Disclosure In compliance with requirements irnposed by the IRS pursuant to IRS Circular 230. we inform you that any U.S tax advice contained in this communication (including any attachments) is not intended or written to be used. and cannot be used. for the purpose of (i) avoiding penalties under the Internal Revenue Code or (1n promoting marketing or recommending to another party any transaction or matter addressed herein The information contained in this communication is confidential and may be attorney -client privileged. 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Wyndham monitors all incoming and outgoing email communications, including the content of emails and attachments, for purposes of security, legal compliance, training, quality assurance and other purposes permitted by applicable law." 2 Swartz, Kevin From: mlinla@aol.com Sent: Tuesday, November 14, 2017 10:10 PM To: Aylaian, Lauri; Harnik, Jan; Jonathan, Sabby; Kelly, Kathleen; Weber, Susan Marie; Stendell, Ryan; Swartz, Kevin; lisa.riding@turnkeyvr.com; steveaspel@aol.com Subject: [SPAM] - Short term rentals Mary Lou Grant 45625 Quailbrush St. Palm Desert 92260 httos://www.vrbo.com/690628 I am a R-1 property owner, licensed in Palm Desert for short term rentals. Our home was purchased with short term rentals as the main reason. This is a needed income stream for us. Over $100,000 has been spent to update the property. We have been with Turnkey Management Company since we started in March of 2015. Turnkey vigorously screens each guest before they approve them. We usually have 2-4 older adults as guests. Turnkey monitors the house. When we started we gave letters to each of our neighbors that may be impacted, with the management company name and contact information for them as well for us. We stated that if there were any problems to please use the contact numbers. We check in with our neighbor Hal at 45657 Quailbrush St, who is a full time resident, and active in the community, when we are out in the desert. So far he said, there has been no problems. I understand if our property was a nuisance, but it is not! We follow all the rules. We are licensed, we pay taxes. It is not fair that because of a few bad apples we cannot conduct business. We should be able to do as we want with our property. That is why we bought a SFR. I hope you read this and take into account the good short term rentals in Palm Desert. Mary Lou Grant 1 Swartz, Kevin From: Catherine <cepstein@shaw.ca> Sent: Tuesday, November 14, 2017 5:50 PM To: Swartz, Kevin Subject: Potential Ban Short Term Rentals Dear Mr. Swartz, We have learned from several friends that the City of Palm Desert passed an ordinance on October 26, 2017 to ban Short Term Rentals in residential zones in Palm Desert as of July 1, 2019. This is disappointing and unfortunate news for our family! For a number of years, my husband and I have rented in Palm Desert to be close to friends who own there. My understanding is that if the second reading of this ordinance passes on November 16, 2017, there will be no further options to rent close to El Paseo and our friends. I am writing to you to express my dismay and opposition to this proposed ordinance. Our family has enjoyed many holidays in Palm Desert and it is our wish to continue. I feel that Short Term Rental properties in the residential areas of Palm Desert and close to El Paseo are positive to the community and economy of Palm Desert. If Palm Desert proceeds with the ban I am sad to say that our vacation dollars will have to go elsewhere. If there is any way to compromise, (perhaps a minimum stay of 7 nights), I would be most grateful. Kindly forward this letter to City Councillor our behalf. Thank you for your time and consideration. Sincerely, Catherine and Michael Epstein Richmond, B.C. 1 Swartz, Kevin From: Jacqueline Hsiao <jacquelinehsiao8@hotmail.com> Sent: Tuesday, November 14, 2017 5:42 PM To: Swartz, Kevin Subject: Short Term Rental Ordinance Letter Dear Mr. Swartz, I have written a letter expressing my concerns about the Short Term Rental Ordinance. I hope you take this into consideration, and thank you for your time. Sincerely, Jacqueline Hsiao 1 Swartz, Kevin From: Fisher , Charles [VA] <Charles.Fisher@vch.ca> Sent: Tuesday, November 14, 2017 11:26 PM To: Swartz, Kevin Subject: Proposed Short Term Rental Ordinance Dear Mr. Swartz, I have recently learned of an ordinance to ban Short Term Rentals in residential zones in Palm Desert as of July 1, 2019. To say the least, I was shocked to hear of this. The Palm Desert area is one of our favourite tourist destinations and indeed that of many of our friends. I am writing you to express my opposition to ban the perspective of a repeat renter of Short Term Rental properties in the residential areas of Palm Desert close to El Paseo. Short Term Rentals in the City of Palm Desert are positive for the community and the economy of Palm Desert. These are renters who are well off, sensible, and family orientated, who not only bring economic prosperity to the city, but a vibrancy and positive energy. If Palm Desert proceeds with this ban, I will choose to rent properties in Palm Springs or La Quinta. I would like to propose that the City implement a minimum of 4-7 nights for Short Term Rentals or some other reasonable compromise. Thank you for your time and consideration. Please forward this email to the City Council on my behalf. Sincerely, Charles G. Fisher MD MHSc FRCSC Surgery of the Spine Professor and Head - Division of Spine Surgery, University of British Columbia and Vancouver General Hospital Past President, Canadian Spine Society Vancouver Spine Surgery Institute Blusson Spinal Cord Center 6th floor, 818 West 10th Avenue Vancouver BC, V5Z 1M9 1 Swartz, Kevin From: Stanley, Jane Sent: Thursday, November 16, 2017 7:57 AM To: Swartz, Kevin Subject: FW: [SPAM] - Attent Palm Desert City Council Regarding Short Term Vacation Rentals From: Vacation Rentals of the Desert [mailto:info@vacationrentalsofthedesert.com] Sent: Wednesday, November 15, 2017 6:01 PM To: CityhallMail Subject: [SPAM] - Attent Palm Desert City Council Regarding Short Term Vacation Rentals Dear Mayor and City Council Members, I hope that this email finds its way into your hands and that you will take the time to read and consider a few points that I am taking the time to write you about. Hopefully it is not too late for the city to reconsider its current stance on short term vacation rentals. It is possible that others have made these points in the past, but with all due respect, I am the representative of approximately one hundred and thirty home owners and tax payers, including myself, and when I've stood in front of the city council my single body does not seem to carry as much weight as one hundred and thirty separate, angry Palm Desert residents. But I believe my owners should be heard. I am a home owner residing at 76-728 Florida Avenue in Palm Desert and the owner of Vacation Rentals of the Desert located at 72-925 Fred Waring Drive, Suite 104 in Palm Desert. I have been in and out of the vacation rental management business since the mid 80s and constant vacation rental manager since the late 90's. I opened Vacation Rentals of the Desert in 2008 and have five full time employees and do steady business with approximately twenty other cleaning services, concierge and repair services and contractors, all who have their own employees. Further, I shop for supplies at Palm Desert stores, highlight Palm Desert attractions to our guests as well as give gift cards to Palm Desert restaurants. I can truly say that I'm in 100% support of the City of Palm Desert, but I feel that the city is not 100% behind my business. My vacation rental company is a bit different from most. We do not handle investment properties and do not rent to Coachella or Stagecoach attendees. We are proud to be "good neighbors" and my company has only had one compliance complaint these past ten years. I will elaborate on the insident with this one home further down in this email. I absolutely agree that there is a problem with some of the vacation rental homes in Palm Desert. I will challenge that almost certainly, these problem homes are managed by owners living a distance away, and not by a professional management company. I want these homes to be shut down every bit as much as the neighbors they are disrupting, possibly even more since these problem properties are about to cost me business, my employees their jobs, and effect all the extended services and retail stores that we work with. I have offered my assistance to the city over and over again, as have many of the other professional vacation rental management companies. I/we know this business, the city is only learning. I have heard resident's objections to vacation rentals since the 80s, the city has only heard these complaints in recent years. I have supported every short term rental ordinance regulation without exception and informed my owners and tenants. I have held up my end of the agreement with the city. I do not think the city has held up their end of the short term rental ordinance. I do not think they knew how. I believe the city failed to put in place the means to enforce the ordinance in the past. Rules without enforcement will always fail. Further, I believe the previous ordinance rules were put in place to quieten the complaints of the vocal residents. It was a Band-Aid, but the city did not know how to go 1 about enforcing the regulations and did not accept the assistance of the professional vacation rental companies. It's hard ... it's really hard, and it's complicated. I propose that with enforcement of the newly proposed, stricter fines and regulations, that shutting down short term rentals entirely would not be necessary. Taking this one step at a time seems to make better sense and with a proper staff established to enforce the regulations, maybe the city will be able to weed out the problem properties and keep the vacation rental properties that are being good neighbors, benefiting the city with T.O.T. and the extended business that rely solely on this industry. Punishing the vast majority because of the problem few, does not seem fair. Below are just a few challenges I have to the comments I have heard from those opposed to vacation rentals during open city council meetings. VACATION rentals lower the property value. This is completely false. Especially since 2008, properties have been selling "because" of the vacation rental value, but not just to investors. People who want a second home but can't quite afford it are buying because they can offset their overhead by doing some rentals. Real estate agents will often up -sell clients looking for a second home by showing them a higher end property and telling them that they can do occasional rentals making it possible to purchase a bigger, better, more expensive property. Also, when showing two equally priced properties to a buyer, a property that has no rental restrictions will most often be more desirable since there are more options available if he finds that he needs to rent the property in the future and it will be appealing to more buyers when he later sells the property. I have prospective clients that call me for advice on where to buy their second home. These are people who want to offset their vacation home by doing some vacation rentals. In the past several months, I have sent them to Rancho Mirage and La Quinta. Right now the City of Indian Wells is looking at the possibility of once again allowing short term rentals due to the negative effect is has had on their TOT income and real estate sales. VACATION RENTAL OWNERS are making a fortune on these properties. This is also very, very rarely true. Most of the residents in opposition will go on websites like VRBO and Airbnb to look at their neighbor's rental rates. They take the highest nightly rate and times it by 365 nights! This just never, ever happens. I have been in this business long enough to know that rarely is a vacation rental a money making investment. Our season is too short. Most of the vacation rental properties sit empty a great deal of the summer months. Owners who rent during Coachella and Stagecoach will increase their nightly rent just for those weekends, but they cannot get that kind of rent any other time during the year ... maybe a little higher during the tennis tournament, but not otherwise. I will use as an example one of our most popular South Palm Desert homes. The neighbors approached me at one time, saying that the owner was making close to $200,000 per year on rentals, and it wasn't fair. They were basing this on a $475 per night rate posted on VRBO. I guess they "assumed" that he was getting this rate 365 days a year even though they must have realized that it was vacant much of the year. The math $475 X 365 nights would be $173,375. My owner would LOVE me if I could make that happen, but unfortunately I cannot even give away our properties when it's over 110 degrees! This property actually grossed $44,034.87 for the year of 2016. It is a property valued at over a million and I haven't the slightest idea what that would make his monthly mortgage. The owner purchased it about eight years ago, I believe and completely updated it inside and out ... and it really needed help on the outside. From the $44 thousand gross rent, he pays between 20% - 25% in management fees to us, then he has to maintain the pool, spa, gardening and utilities year-round, plus taxes, furnishing upkeep, cleaning, etc. This is the same scenario with all of the properties we manage, but actually this owner does better than most. So it is easy to see that not every owner is making a fortune by doing vacation rentals and I would challenge whether most making any money at all. What I tell my property owners is that we can help "offset" their carry costs, but that's about it. VACATION RENTALS are party house and ruin the neighborhood. Actually very few are party house. None of the properties I handle are "party houses," but any home has the potential. This collection of "Neighborhoods are for Neighbors," is an organization fueled by a San Diego based group. This San Diego group has had a hand in helping the residents that appear at the city council meetings by assisting them with tried and true verbiage, and stories, official looking signs and has helped to professionally organize residents locally. We are not at all like San Diego. Our industry is tourism, and most importantly "seasonal" tourism. The unsightly yard signs are unwelcoming and hurtful to our guests. Who wants to visit if the neighborhoods have these unwelcoming signs ... this has even been commented on by 2 people staying in our hotels. These signs make no distinction between seasonal or short term rentals, so they offend 100% of our desert guests. My tenants feel unwanted, and if they feel like they are unwelcome and are being turned away, this will cost the city in future guests and potential residents. What I have found over the past thirty years is that families visit for a short stay. These are adults that still work and have children. Maybe they come to visit grandparents, or maybe the desert is a drivable destination. As years go by and the children grow up, they stay longer. When they can afford a second home they eventually buy a property for occasional use and for future retirement. They sign up with a company like mine to handle short term rentals that will offset some of their expenses until they can fully retire and either move out here permanently or seasonally. This happens over and over. By banning short term rentals, you will lose these people completely. This is our future. This is how it has worked for thirty years and longer. I swear, people are just angrier these days. And I get that ... I have lived next to a short term rental. After months and months of no neighbors at all, all of a sudden there will be noise next door, splashing in the pool, people laughing on the back patio. "Where is my completely quite enjoyment of my back yard!!!" I know this is true of many of the people that show up at the city council meetings. Many of them were renters. Many of these same people call me during the holidays for a short term rental for their family's use. When I tell them that the city may ban short term rentals, they say that "the city doesn't have to know. They won't make any noise or tell anyone." And these residents are not ALL complaining having a party house next door, they are complaining about hearing ANYTHING. In my office I get complaints from neighbors because a renter has let helium balloons loose into the sky, left their front gate open, had two cars parked in the driveway, put the trash out before noon instead of after noon. Some neighbors have called to say that her friend is complaining and she is standing by her ... but she doesn't live by any vacation rental property, she is just standing up against rentals to support her friend. Now I will mention the one ordinance violation that we received. This came as a call to compliance from a neighbor a few minutes after 10 p.m. saying that they could hear talking on the back patio at the property I represent. I did not hear about this until the next day. I was supposed to be called by the Hot Line but was not. This was a legitimate ordinance violation and the guest paid a $500 fine. But let me tell you about this unique property. It is probably in the cities records that there have been more problems with the neighbors making nuisance calls than there have been problems with the tenants. Years ago after the owner purchased this property, the neighbors approached me at the front door of the house. They told me that vacation renters were not welcome in their neighborhood and they were going to do everything they could to make the owner want to sell the property ... and they have held true to their promise. The city should have record of all the calls the lady behind their house made and I was told one Saturday by a police officer that he told her she was going to be fined if she called one more time. I have had reports from my tenants that the neighbors yell over the wall that they are not welcome here and they should go home. As I said above, I have lived next to a short term rental before ... I also have lived next to year round residents. A bad renter only lasts a few days where a bad resident could last for years. This neighborhood organization has become a club. People with no problems at all are standing with the people that do have problems, many of the problems are blown completely out of proportion and organizers are going door to door getting signatures by scaring residents with the worst short term rental stories, many that have been made up. I know all the city council members realize that this is part of what is happening here. This is the state of our world these days, people are angry, but please don't let anger the city's TOT income, our tourism, real estate, business and the health of Palm Desert. This desert cannot survive on the residents alone, there are not enough ... we need our tourism business now and four our future survival. Because we are so seasonal, the desert is not like San Diego or other cities in California or the United States. Without tourism, we probably wouldn't live here. People would not endure the heat during the summer if they did not have our seasonal guests during our fall and winter months. Golf has seen a decline in recent years; we are not as popular with celebrities as we once were. After chasing away the Spring Break crowds years ago, the City of Palm Springs has struggled to bring them back and when that failed has reinvented itself as a "Hipster" and "Gay" destination. But even after recreating themselves, Palm Springs is suffering now and will suffer in the future if short term rentals are banned, and they are the "anchor" city of the desert ... the recognized name. Because of this, a ban in Palm Springs will affect every city in the desert. People like me and my employees, the restaurants, retail stores and service businesses are here only because of tourism. It is why the people who stand against short term rentals are here. It is up to our cities to identify the bad owners, the party house that make up the vast majority of all complaints and weed them out so that everyone can enjoy the desert. 3 Many of my home owners have talked about selling. If all of the vacation rental owners in R1 and R2 areas were to sell, the property values would drop and we'd be littered with vacant homes. Only a small percentage of these homes are problem rentals, but you would lose the good with the bad. We just don't have enough buyers to fill these homes. But I still have hope! I would like to suggest that the city take up the stricter ordinance regulations in regards to fines, set up and properly staff a vacation rental oversite department, form a committee of city officials, residents and vacation rental professionals to help set up, monitor, inform and oversee the cities vacation rental regulations and work to eliminate all "party houses" and bring everyone into compliance before shutting short term rentals down entirely. I think the anti -short term rental collation would understand that the city and people would be better served to take a step by step approach and maybe make this new ordinance into a win/win for the cities, businesses, residents and guest of Palm Desert. Vickie L. Murguia Owner/Manager Vacation Rentals of the Desert 72-925 Fred Waring Drive, Suite 104 Palm Desert, CA 92260 Telephone: (760) 324-3456 Toll Free: (877) 324-6789 Fax: (760) 324-1212 www.vacationrentalsofthedesert.com GLike us on Facebook 4 Swartz, Kevin From: Stendell, Ryan Sent: Thursday, November 16, 2017 7:56 AM To: Swartz, Kevin Subject: FW: Vacation Rental Laws —November 16, 2017 Ryan Stendell Director of Community Development Ph: 760.346.0611 Direct: 760,776.6386 rstendell@cityofpalmdesert.org From: Peter Manno fmailto:mno2mnoCa�me.coml Sent: Thursday, November 16, 2017 7:26 AM To: Stendell, Ryan Subject: Vacation Rental Laws —November 16, 2017 NOVEMBER 16, 2017 PALM DESERT CITY HALL 73510 Fred Waring Drive Palm Desert, CA 92260 Good Morning Planning Director Stendell: While I understand the concerns over vacation rentals, I believe banning or "removing" vacation rentals from residential zones will have severe economic impact on Restaurants, Tourism activities, Desert Events, Non-profit Organizations, and finally, the community. Even though I support the Council's initial approach to implement new enforcement measures, I do NOT support the removal or banning of vacation rental permits in residential zones. Enforcing license requirements, higher penalties for offenders, and hiring additional enforcement officers, offer a smarter economic solution for the 'the smartest address in the American desert'. Palm desert, has always signified, "Design creativity, and the result has been structures that celebrate living, for a care free `seasonal' use." Furthermore, what is the true definition of "residential"— a Condo, Residential Single family, Residential Multiple family, Assisted Living, or Estate? Whether I live in Palm Desert for one week while visiting family, for 6 months, or I'm visiting for a Golf event: it's all residential. Therefore, why would we even consider destroying our community, when it's the primary the reason for our existence? Please clearly evaluate ALL data, before making a hasty decision that will have irreversible consequences on our economy and community. Sincerely, Peter Manno 187 Madrid, Palm Desert, CA mno2mno(a mc.com 1 BACKGROUND • Vacation Palm Springs Real Estate (Part of Wyndham Vacation Rentals North America) The Private Accommodations Marketplace The vacation rentals marketplace consists of the short- term rental of private accommodations (i.e., homes, condominiums, cabins, etc., which are owned as primary or secondary residences and are located in traditional vacation and urban markets). • For decades, homeowners in Palm Desert have been marketing these accommodations to consumers using traditional advertising means, with many also leveraging the onsite hospitality services of established property managers. • The primary providers in the industry in Palm Desert include: (1) property owners of vacation rentals; (2) online platforms which market vacation rentals to consumers; and (3) property management companies which market a vacation rental on behalf of a property owner and also offer professional onsite services to homeowners and guests (e.g., Vacation Palm Springs). • Unlike online platforms, which are not responsible for providing local hospitality services (e.g., check-in/key- holding, property upkeep and housekeeping), Vacation Palm Springs provide such onsite services for owners and guests, through its own local workforce comprised of residents of Palm Desert and the greater Coachella Valley. CONCERNS • While the vacation industry is not new, it is undergoing rapid change as technology has made it easier for travelers to find vacation rentals. • New online models have emerged, and consumers are increasingly eager to explore these unique lodging options when traveling. • This change has brought new competition to the hospitality sector, with enhanced choice and value options for consumers. • However, it has also come with increased concerns by local communities and permanent residents of potential violations of vacation rental providers on applicable zoning, noise, health and safety, anti- discrimination and other laws, including failing to collect and remit applicable taxes. • Regulation should be fair and reasonable, and not unfairly paint the entire sector with a broad brush by ignoring the key distinctions between newer industry participants and Vacation Palm Springs and other professionally -managed companies, which has been in existence for decades. GENERAL POSITION • Vacation Palm Springs supports the City of Palm Desert and its current attention to strengthen safeguards for both vacation rental providers and consumers, address neighborhood concerns and offer a framework that promotes compliance. • Vacation Palm Springs, which consists mainly of whole -unit vacation rentals, currently operates within a sound state and local regulatory framework; complies with applicable licensing, tax, and quality of life requirements; and contributes significantly to the local economy, tax coffers and community life of Palm Desert. • We believe additional restrictions on the ability to provide vacation rentals may lead to unintended consequences for both consumers, the industry, the greater local economy, and the City of Palm Desert. THE PRIVATE ACCOMMODATIONS MARKETPLACE IN GENERAL Private accommodations are helping drive economic and employment growth in the U.S. and providing tangible benefits to owners, residents, travelers, businesses and the local community. Guests who use professionally managed vacation homes tend to have a longer stay at their destination and spend more money per day on average than guests of hotels or other types of lodging. The multiplier effect of ancillary spending is dramatic and affects many other industries, both in the home state and nationwide. $29B Total vacation rentals revenue in the U.S. (Phocuswright 2015) Approximately zoi Total percentage vacation rentals account for in the U.S. lodging market (Phocuswright 2016) Nearly lin3 U.S. travelers that rented a whole home or apartment in 2015, up from 10%in 2012 (Phocuswright 2016) THE PRIVATE ACCOMMODATIONS MARKETPLACE IN VACATION PALM SPRINGS Vacation Palm Springs (VPS) complies with applicable Palm Desert and California statutes, regulations and administrative rulings specific to vacation rental services. Of note: • Licensing -Related Requirements: • Business License Requirements —VPS currently holds a business license in all cities in which it has homes, including Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Indian Wells, Riverside County for Bermuda Dunes, La Quinta and Indio. Vacation Rentals Permit Requirements - A vacation rental permit number is included an applicable advertisements and a physical copy of the certificate itself is located on the interior of each vacation rental home. In addition, VPS works with homeowners to ensure they have the requisite business licenses and vacation rental permits. • Compliance with Applicable Ordinances: • VPS does not allow occupancy above the maximum per bedroom allowance. • VPS ensures all homes have estate level trash service, working landiine phones and sufficient rental homeowners insurance. • VPS is available 24 hours a day and able to appropriately respond within 15 minutes of any call made from the hotline. • Owners and guests are required to provide names and ages of all guests, and license plates for ail associated vehicles. • Rentals are not permitted to anyone under the age of 25. • In addition, VPS exercises sound business judgment in the following ways: • VPS holds funds in escrow until the guest has arrived for all rentals, regardless of duration. • Rentals are not permitted for stays consisting of two or less nights. VPS adheres to PCI compliance standards and regularly conducts self -audits. • VPS performs "good neighbor patrol" on the weekends of its occupied homes to preempt any noise complaints. VPS maintains 24/7 on -site local support for in -stay guest related customer support. • Taxes: • VPS collects and remits all applicable local and state taxes in California, including transient and occupancy tax. ABOUT WYNDHAM VACATION RENTALS NORTH AMERICA Wyndham Vacation Rentals, the world's largest professional manager of vacation rental properties, is part of Wyndham Destination Network and the Wyndham Worldwide family of brands (NYSE: WYN). Backed by one of the world's largest hospitality companies, Wyndham Vacation Rentals North America provides access to more than 10,000 vacation rental properties in some of the most sought-after beach, ski, mountain, theme park, golf and tennis resort destinations in the U.S. Wyndham Vacation Rentals works closely wits. .l to ensure all rentals meet its standards far customer service, quality and comfort. Several rental brands fall under the Wyndham Vacation Rentals North America umbrella including ResortQuest, Kaiser Realty, Oceana Resort and Vacation Palm Springs. Many properties offer kitchens, washers and dryers and other home -like conveniences along with maid service, spas and fitness centers. For additional information visit our media center or wyndhamvacationrentals.com. Also find us on Facebook, Twitter, Pinterest, Instagram and Google+. VPS Local Offices VPS Employees Properties Available for Rent Vacation Palm Springs Real Estate (Part of Wyndham Vacation Rentals North America) Economic & Community Impact of the Greater Palm Springs Area For the Period August 15, 2015 to July 16, 2016* 2 (as of Oct. 1, 2016) 47 (as of Oct. 1, 2016) 468 (as of Oct. 1, 2016) Transient Occupancy Tax (Hotel Motel Tax— Local Tax) Total Collected & Remitted: Approximately $1.4 million Other Taxes (Non -Resident Tax) Total: More than $61,000 Property Tax Total: Approximately $22,000 Organizations VPS Supports • Mizell Senior Center • Palm Springs Hospitality Association • Palm Springs Pride • Desert AIDS Project • Palm Springs International Film Festival • City of Palm Springs Mayor's Race and Wellness Festival • Palm Springs Police Officers Association • FIND Food Bank • Greater Palm Springs Chamber of Commerce • Palm Springs Chamber of Commerce Total: 10 Organirations'Supported *Except as otherwise noted. VP5 Local Offices VPS Employees Properties Available for Rent Transient Occupancy Tax (TOT) Collected and Remitted by VP5 Year -Over -Year Decrease in TOT Revenues Vacation Palm Springs Real Estate (Part of Wyndham Vacation Rentals North America) Economic & Community Impact of the City of Palm Desert 1 (as of Aug. 1, 2017) 47 (as of Oct. 1, 2016) 49 (as of Aug. 1, 2017) From October 2015 to September 2016: $173,000 (collected at 9% rate) From August 2016 to July 2017: $189,000 (collected at new 11% rate) If applying the new 11% rate, then August 2015 to July 2016: $215,000 Palm Desert collected $26,000 LESS than it did in July 2016 (if both years had the same 11% tax rate, which is currently applied). 1 Brief Memo on Short Term Rentals 1. We are Responsible Short Term Rental Owners 2. Residential Neighborhood Concerns a) Not "residential" - tourist destination. b) Month -long rentals and 2+ night rentals — not residential c) High density, commercial d) Limit density of STRs 3. Overstated Problems Complaint Noise (44 during Coachella & music festivals Parking violations, trash, over -occupancy Failure to pay TOT, improper advertising, no permit Totals Total Un- founded 98 43 29 12 103 28 Total non - nuisance complaints 55 Percent of Citations total non - nuisance complaints 55/148 = 6 37% 17 17/148 = 1 11% 75 75/148 = 28 231 83 (36%) 148 51% 35 (15%) 4. Party house a) Increasing the minimum stay to 3 nights. b) Decreasing the number of extra daytime guests to 2-4 instead of 6 c) Decrease the number of total persons permitted per house to 2 persons per bedroom to a maximum of 12 regardless of the size of the house. d) Maintaining the higher penalties set out in the Ordinance; distinguish between renter and owner penalties. e) Disallowing outdoor music after 9pm for all neighbors on weekdays and 10pm on weekends; 5. Enforcement a) Allow STR permit holders in Palm Desert to form HOA and have own security. b) Fine renters but collect against owners; owners will obtain deposits from renters. c) Distinguish between renter citations and owner citations for fines and for 3-strikes Toss of permit. d) Fine nuisance complaints; this will ensure balanced enforcement. 6. Hostility from the Anti-STR lobby • Making threats • STR owners are afraid of extremists • One STR owner's vehicle was vandalized • STR owners do not want to speak for fear of retribution • STR owners do not want to come forward for fear of harassment • STR owners do not want to come forward for fear of targeting 7. Economic Benefits of Short Term Rentals to Palm Desert a) Investment money, jobs, off-season guests, $37M into PD economy; us alone - $5M initial investment, $4M per annum to economy. 8. Economic Losses a) STR homeowners will sell, invest elsewhere like Arizona, cleaners/property managers/maintenance workers will lose jobs, $37M in lost tourist dollars. 9. Ban Infringes on Constitutional Rights a) Contravenes Fifth Amendment rights of private property owners. State cannot "take" from the rights of property owners more than absolutely necessary to achieve goals. b) Ban infringes on investment -backed decisions which is also unconstitutional. c) Ban is disproportionate to achieve the desired objectives when less -intrusive measures workable: 3 night minimums, improved security, improved enforcement and renter fines. This 15th day of November 2017 Tracey Jackson, BA, LL.B., LL.M. DUNNAWAY, JACKSON, OUELLET & ASSOCIATES AES TRIPLEX November 14, 2017 City of Palm Desert Office of the Mayor 73-510 Fred Waring Drive, Palm Desert, CA, 92260 Attention: Council Member Susan Marie Weber Dear Ms. Weber: Re: Short Term Rental Ban in Palm Desert I am an STR permit holder in Palm Desert and I am very concerned about this ordinance and the impact that it will have on the Palm Desert community, economy, City revenues and property values. 1. We are Responsible Short Term Rental Owners Having operated short term rental houses for the past 5 years in Palm Desert, we have gained valuable experience in how to avoid problematic renters and neighbor complaints. Here are a few of the policies that we have adopted that we strongly believe are responsible for our problem -free rentals, our 300 5-star ratings, our repeat customers and our lack of neighbor complaints: a) Property manager — same for 5 years. Greets every guest in person and is available 24/7. b) 3 night minimum rental period. Eliminates party -goers. c) Rent for 7 nights at some houses for Coachella. d) Evicted Coachella guests once for disturbing neighbors. e) Every renter signs a contract with full list of names of guests and includes permission to property manager to attend to inspect. f) Emphasize that "this is not a party house". g) Emphasize noise rules. No outside noise after 10pm. h) Disallow extra guests without written permission. MARNIE DUNNAWAY (RETIKED). TRACEY JACKSON*. ALISON OUELLET* & ASSOCIATES Dunnaway, Jackson, Ouellet & Associates November 14, 2017 Page 2 BARRISTERS & SOLICITORS 1205-808 Nelson Street, Vancouver, BC, Canada V6Z. 2112 Telephone: (604) 682-0007 Facsimile: (604) 682-8711 (*denotes personal la‘‘ corporation) i) Disallow special events. j) Disable the outside speakers at 10pm remotely. k) Send every renter a copy of the Good Neighbor Policy & post it at the house. I) Specify the noise and parking by-laws in our Rental Rules that are attached to every rental contract. Property manager reminds guests upon arrival. 2. Refuting Arguments in support of the ban in zones R1 and R2 a) The City is only banning 20% of the STRs in Palm Desert by singling out zones R1 and R2 that are strictly for residential use Allowing short term rentals in the planned residential communities while disallowing them in the zones R1 and R2 creates an unfairly discriminatory impact of this ordinance that cannot be justified on any grounds proffered. • No neighborhoods in Palm Desert are truly "residential use" due to the attraction of Palm Desert as a tourist destination. • The current ordinance allows 28-day rentals and 2+ night rentals (with the owner present), demonstrating that zones R1 and R2 have never been solely residential and will continue to be mixed use residential. Many areas in the R1 and R2 zones are close to R3 high -density and high -traffic areas, close to commercial buildings or busy highways and therefore have limited residential characteristics in any event. The long-term residents in many parts of the R1 and R2 zones could not expect to live in a purely residential use neighborhood given the tourist and commercial nature of Palm Desert and its economy. b) HOAs have security in their communities and therefore STRs are not a problem there • If having community security is the reason for allowing short term rentals to continue in HOAs, then allow STRs in zones R1 and R2 and let the STRs in those zones form a limited purpose HOA and retain Dunnaway, .lackson, Ouellet & Associates November 14, 2017 Page 3 their own evening and weekend security to assist with decreasing the "problems". • Allowing the STRs in zones R1 and R2 to have their own security will decrease the imposition on the city staff and create neighbourhood harmony. c) Different renters all the time • Allowing 28-day rentals does not resolve the complaint of different neighbors. 28-day renters often have different groups of family and friends arriving each week. Allowing 2+ night rentals when owners are present does not resolve the complaint of different renters. A homeowner could have 5 extra bedrooms and rent out each one to a different couple each night. d) Noise from short term rentals • As seen below, the noise complaints are primarily during the music festivals. Noiseaware device could be mandatory to track decibel levels. Renter fines can make renters responsible for their violations and therefore more compliant. e) The party house • This is an exaggeration as most Short Term Rental owners do not want these people at their properties. • Decrease number of extra daytime guests to 2-4 instead of 6. • Decrease number of total persons permitted per house to 2 persons per bedroom to a maximum of 12 regardless of the size of the house. • Maintaining higher penalties as set out in the Ordinance. • Fine renters for noise violations but collect from owners. Dunnaway, Jackson, Ouellet & Associates November 14, 2017 Page 4 • Disallowing outdoor music after 9pm for all neighbors on weekdays and lOpm on weekends for all homes, not just STRs f) No City Enforcement • City enforcement has been weak and requires improvement that will be easy to implement. • STR permit holders in Palm Desert to form a limited purpose HOA and to have our own security. • Fine renters but collect against owners. The city therefore has enforcement and owners will require damage deposits from renters. • • Allow time for short term rental owners to change their contracts and collect sufficient "by-law enforcement" deposits from their renters. Most owners have guests booked through to May 2018 and cannot now add or increase the deposit except for new reservations. Distinguish between renter violations and owner citations for fines and for the 3-strikes and the owner loses permit. Owners should only lose permit for 3 owner citations. Fine nuisance complainants; ensure balanced enforcement. Otherwise, intolerant neighbors can engineer the loss of a permit to a short term rental owner. 3. Problems with Short -Term Rentals are overstated a) The problems arising from short-term rentals are not as serious as long-term residents might suggest. b) In fact, in 2017 to October 15, 2017, 231 complaints were received for 1228 STRs.1 Once the nuisance complaints are disregarded, the total complaints is only 148. Of the 148, 51 % were for administrative violations such as failure to remit TOT. Only 37% of the complaints were noise -related and 44 of the complaints arose during the music festivals. 'City of Palm Desert statistics for 2017. Dunnaway, Jackson, Oue!let & Associates November 14, 2017 Page 5 Complaint Total Un- Total Percent of Citations founded nonnuisance total complaints nonnuisance complaints Noise (44 98 43 55 55/148 = 6 during 37% Coachella & music festivals Parking 29 12 17 17/148 = 1 violations, trash, 11% over -occupancy Failure to pay 103 28 75 75/148 = 28 TOT, improper 51 advertising, no permit Totals 231 83 (36%) 148 35 (15(1/0) c) The table above demonstrates that the "problems" associated with short term rentals are minor and easily solved with improved regulations and better enforcement. There is a need to rein in the nuisance complaints which comprised 83 or 36% of the complaints received, to improve administrative enforcement and to impose stricter measures during the music festivals. d) To ban short term rentals in zones R1 and R2 in the face of the relatively few complaints, is disproportionate to the minimal disruptive effects caused by the few transgressors. 4. Economic Benefits of Short Term Rentals to Palm Desert a) City Council must exercise its leadership role in considering the Tong -term economic impact of this ban on the whole City of Palm Desert. The complaining residents are only considering their own interests and not those of everybody in Palm Desert. b) Short Term Rental Owners invested in Palm Desert; we brought it out of the recession and revived Palm Desert. Investors pumped millions of dollars into economy of Palm Desert and beautified dilapidated neighborhoods. For my 5 houses, my husband and I have invested over $5M in capital outlays to the purchase and renovation of these homes. c) Short Term Rental Owners provide jobs in construction, paint, pool construction, landscaping, plumbing, electrical, and other trades as well as Dunnaway, Jackson, Ouellet & Associates November 14, 2017 Page 6 cleaners, property managers, gardeners, and maintenance crews to maintain properties in pristine condition, to a greater extent than most Tong -term residents. d) Short Term Renters visit Palm Desert in the off-season. They keep the businesses going through even the hot summer months. We are booked throughout the year with 70-80% occupancy in the summer and June and September as our slower months at 50% occupancy. e) Short Term Renters spend money in Palm Desert. The average guest spends $294/day, the average STR accommodates 4.55 occupants for on average 102 days/year.2 For the 276 STR permits in zones R1 and R2 in Palm Desert, the STRs bring $37,639,224 to the Palm Desert economy.3 These guests spend their time primarily in Palm Desert as they walk to El Paseo to dine and shop. These are conservative estimates as we know that the STRs in R1 and R2 bring in at least 40% of the TOT for Palm Desert, when they comprise only 20% of the total STRs. f) Short Term Rentals provide significant TOT revenue for the general coffers of Palm Desert. We know that in R1 and R2 it was at least $700,000 in 2016, which is ample to fund the required enforcement while leaving plenty of additional funds for the general coffers. g) My personal conservatively -estimated contribution to the Palm Desert economy on an annual basis, from my 5 short term rentals, using the average expenditures per guest of $294/day from the DMG Report, is over $4M.4 5. Economic Losses to Palm Desert arising from this ban a) Investors will buy elsewhere in the Coachella Valley close to commercial areas, or in Arizona where Cities are prohibited from interfering with Short Term Rentals by state law.5 'Coachella Valley Region Vacation Home Industry, by Development Management Group, Inc., "DMG Report" November 28, 2016, pp. 8-9. $294x4.55x102 = 37,639,224 $294/day x 10 occupants/home x 5 homes x 280 days/year = $4,116,000. 5 The Arizona Residential Landlord and Tenant Act. Dunnaway, Jackson, Ouellet & Associates November 14, 2017 Page 7 b) Even continuing the moratorium creates an unattractive climate for investors. It implies that Palm Desert is not business -wise and that is always unappealing for investors. When Arizona is right next door with a very business -minded Governor, investors will take their dollars there. c) Allowing the anti-STR movement to place lawn signs creates an unwelcoming environment for all visitors to Palm Desert as it appears to be a city in disharmony as opposed to a hospitable tourist city that it should be. d) Many workers will lose jobs as many cleaners, property managers, gardeners and maintenance workers depend upon short-term rentals for their livelihood. e) STR homeowners in zones R1 and R2 will sell their properties as 28-day rentals are insufficient to attract and maintain investment dollars. f) Property values in zones R1 and R2 will decline as investors will sell. New investors will not buy as property owners wish to invest where they have flexibility to use their property. Inability to rent as an STR is a deterrent to buyers. g) With the 276 STRs terminated, Palm Desert will lose $37M in tourist dollars (based on above numbers). These tourists will not take their money elsewhere in Palm Desert, but will vacation in Palm Springs or in other warm climates such as Arizona.6 Many businesses along El Paseo will suffer and close thereby adding to the numerous vacant retail spaces already noticeable along El Paseo. h) City Council needs to be contributing to the economic growth of Palm Desert, not cementing its decline. 6. Ordinance with ban infringes on constitutional rights of property owners a) This Ordinance is a forbidden "regulatory taking" that infringes on private property rights that are protected by both the Takings Clause in the Fifth Amendment and the California Constitution. b) It unconstitutionally interferes with the rights of private property owners to derive income from their properties. 6 I have received at least 20+ letters written by visitors to Palm Desert to City Council who have stayed in STR homes near El Paseo who have said that they will spend their vacation dollars elsewhere if they cannot rent these homes on a short term basis. Dunnaway, Jackson, Ouellet & Associates November 14, 2017 Page 8 c) It is not justified on the basis that zones R1 and R2 are designed for strictly single-family residential use as has been suggested as the rationale for the singling out of these 2 zones for the ban. Firstly, by allowing 28-day rentals and 2-night rentals with the owner present both of which allow a use for income -earning purposes, this Ordinance clearly does not treat R1 and R2 zones as strictly residential. Secondly, Courts have held that short term rentals are not inconsistent with single-family residential use in any event.' Banning STRs in zones R1 and R2 unfairly discriminates against the rights of property owners in zones R1 and R2 as compared with the private property owners in the remainder of Palm Desert. d) It unconstitutionally interferes with the rights of private property owners who made investment decisions based on their ability to rent out their properties on a short-term basis to supplement their incomes. e) In acting to regulate land use, the City must employ the least intrusive and burdensome measure on the rights of property owners while achieving the desired goals for the benefit of the whole community. f) This ban is an over -reaching and disproportionate remedy to issues that can be resolved by increased enforcement and other remedies that would minimally infringe on the constitutional rights of property owners in zones R1 and R2. Any ordinance passed by the City must infringe on the constitutional rights of property owners in zones R1 and R2 to the least extent possible with measures such as 3 night minimums, improved security, improved enforcement and renter fines. In summary, I am very concerned about the economic impact of the proposed Ordinance on the City of Palm Desert and its residents. In this new shared economy, Palm Desert needs leaders with a vision of the new economy and how to manage it while maintaining the property rights of private property owners that are protected by the Fifth Amendment and by the California Constitution. I thank you for taking the time to hear my submissions. Yours truly, Marchenko v. Zoning Hearing Board, 147 A.3d 947, 950-51 (PA. Commw. Ct. 2016). Dunnaway, Jackson, Ouellet & Associates November 14, 2017 Page 9 Tracey L. Jackson B.A., LL.B., LL.M. Encl. Donna Ault No recipients The Full Figured Lady has Laryngitis! 1 file attached Fri, Nov 10 1:37 PM Dear Neighbors, If you didn't see this on the news, prepare to be outraged! Shame on KESQ News Channel 3 / CBS Local 2 for not having the majority of Palm Desert residents represented fairly. This is the battle we NEIGHBORS (not big business) began, for our quality of life, against the proponents of greed and indifference to others. * http://www. kesq. com/news/short-term-vacation-rental-advocatesrallvtogether-in-palm- desert/653795121 Short-term vacation rental advocates rally together in Palm Desert www.kesa.com People in support of short-term vacation rental properties in Palm Desert are truing to gain support ahead of a City Council meeting where council members will once again be revisiting new rules. Joe Galli reports. It is more important than ever that you do the following: 1) Attend the BLUE! reading Thursday, November 16th at 4:00 wearing 2) Keep your signs up! Neighbors returning need to know that we've been fighting for their ttuality of life in their absence. 3) Report abuses! We can't give the opposing side credence to their view that STRs aren't a problem! The new ordinance should help until an STRectomy has been performed! Here is the link to report a code violation: htto://www.citvofnalmdesert.ore/devartments/olannine/code-coma fiance-/renort-a-code- violation How to Report a Code Violation City of Palm Desert www.cityofpalmdesert.org You can file a complaint one of four convenient ways: Use Palm Desert In Touch to report a problem; Call the Code Hotline - 760-776-6360 - from 8 a.m. to 5 p.m. on ... 4) WRITE OUR CITY COUNCIL to secure their support! If you can't put into words what you'd like to say, please use/edit/add your own to these: Dear City Council members and Associates We, the citizens of Palm Desert have been suffering the abuses of commercial businesses in our residential neighborhoods since STRs were allowed to proliferate. Knowing there is an end in sight, and the ordinance being put in place to address the problems that exist, gives us something to look forward to. Thank you for giving us this light at the end of the tunnel! We are very grateful for your insight, when you declared a moratorium, to study the problems Short Term Rentals cause. We appreciate all the hard work that has gone into finding a solution. We are happy to compromise the allowance of owner occupied STRs, and STRs in the city's planned, designated areas. We do not begrudge commerce, or our neighbors supplementing their incomes. We too want what is in Palm Desert's best interest. As impossible as it is to please everyone involved, we believe your solution to keep commercial businesses in the correctly zoned areas of our city is appropriate, and just. We appreciate visitors of Palm Desert, and will continue as we always have, to welcome them to our hotels, our 30 day rentals, and our owner occupied short term rentals, knowing most of us were once visitors ourselves. We are most grateful that you are not caving into the special interests of outside investors, that care only for their immediate needs, and are not thinking as you are, of the long term effects; STRs destroy neighborhoods, and eventually the cities that once supported them. Thank you for affirming that neighborhoods are for neighbors! We appreciate the care and concern you have shown your constituents. It will not be forgottenT The city manager Lauri Aylaian; LAylaian@CityofPalmDesert.org, The mayor Jan Harnik; iharnik@citvofpalmdesert.org The mayor pro-tem Sabby Jonathan; soonathan@cityofpalmdesert.org City Council member Kathleen Kelly; kkelly@citvofpalmdesert.org Council member Susan Marie Weber; SWeber@citvofpalmdesert.org City Planner Ryan Stendell; rstendell@citvofpalmdesert.org City Associate Planner Kevin Swartz; kswartz@cityofpalmdesert.org * If you have done all you can to support Neighborhoods are for Neighbors, and are still willing, or NEED to do more ... Please write the news station that promoted, without equal representation, the Short Term Rental investors - please see attachment. Thank you! We can't do this without you; thank you for your support! Protect Palm Desert Neighborhoods P.1). Neighborhoods BIG WIN for Palm Desert Neighborhoods! i its. OIUDI ''..ANt_ r PASSES at the 2nct i"e�itiit2: \o n.i c'. We REALLY need Your continued support at this critical ineetinrf: yin er l6th at 4:00 Pm, wear BLUE Mince tniti 2ets passed, without challeIlge from the opposing side, v,,-e can What was passed October 26t,-1: Short Term Rentals in R-1 and R-2 neighborhoods will no longer be allowed, with the exception of owner occupied rentals, and those in HOA's that comply with the new ordinance. The exisitng STRs will be phased out by Tuly 1, 2019. PLEASE KEEP YOUR SIGNS UP! _Many of our neighbors have not returned. and have no idea how we have been fighting for their quality of life ... we will continue to collect signatures and support until the 2nd reading_ confirms our win! http ..'.'. v.. cLt. otvalutdesert ote depanmetits platuune. tet:cit-a-code-‘iclatioti Imp .: ti`, ii' ci .ofpaimdes 'tt de'Farttiletlts pubhc-:: orks tepot1-a pr t'fetti Swartz, Kevin From: Jeff Taylor <Jeffmtaylor@outlook.com> Sent: Wednesday, November 15, 2017 2:44 PM To: Swartz, Kevin Subject: Letter to City Council Regarding Short Term Rental Regulation Changes: Regulations banning STR too strict. Dear Councilmembers, I live at 72665 Beavertail Street with my wife. We are located South Palm Desert, behind the West portion of El Paseo, in a R-1 zoned community. My wife and I share time in this neighborhood and Seattle and have owned our house for 2.5 years. We have not rented our house out. I wanted to express concerns I had with the November 16th draft of ordinances regarding stepped up regulation of Short Term Rentals. I believe that the clauses to outlaw all Short Term Rental units in R-1 and R-2 communities are far too aggressive. Banning new and existing STR licenses represent regulatory overreach in a blunt attempt to solve a problem that could be handled with the "inspection and fine" proposals also on the ordinance. • Stronger penalties and better enforcement should be given a chance to work. Better enforcement is more a more targeted approach and does not damage property values and the city coffers like a ban would. o We should focus rules on "bad actors" and not risk property values and City Revenue with poorly thought out restrictions. o Only a fraction of the complaints were acted upon because the city does not have a 24-7 monitor. We should change the city response to noise complaints. • The ban on new licenses and sunset clauses on existing licenses for home in of R1 and R2 communities affect 6,000 homes but not the 20,000 homes in R1-planned communities. o These clauses are unfair and are in effect picking "winners and losers" in the community....after the fact. o There are 1200 STR licenses but we want to propose legislation that affects only 280? o These clauses do not really address the problem because a current bad actor could continue to operate on the fringes of the regulations. The problem is not all STR operators but the bad actors. • I think the changes made in the last draft of the STR ordinance constitute the need for a "second reading" of the ordinance. I realize that legally this is a disputed point but government should strive to be open and transparent when given the choice. • The assertation that STR "this is destroying communities" is fallacious and obviously steepen in emotion and not fact. o If there were 268 complaints of which 38 were acted on YTD how is this destroying communities? o If there is a serious problem, it certainly is localized. While I sympathize with those affected, I do not believe that this is widespread...certainly not proven by the numbers. • The research has not been done adequately. o I had asked if there was data that correlates the number of complaints (made or acted upon) to the number of houses that are in the R-1 & R2 vs R-1 Planned/Managed communities. There is no statistical analysis to correlate these numbers so how does a regulation that bans activity for only the 6,000 of the 26,0000 homes make sense? o What is the outcome of the 38 acted upon offences? How many re -offend? o How many of the 268 are a one time offender and how many are multiple o How many households are involved really? o These are important statistics that frame an define the problem scope 1 I am in favor for the clauses that provide for taxes, fees, and fines to supports a 24 hour person to handle noise complaints as well as a system that limits the number of renters and their effect on parking. We should severely penalize bad landlords for repeated problems. However, I believe blanket zoning changes to create sunset clauses on licenses, as well as bans on new licenses go too far and represent government overreach that does not focus regulation on the actual problem. I ask the council to study the statistics more carefully and to narrow the scope of regulations to find a set of rules that address bad behavior. Thank You Jeff Taylor 72665 Beavertail St Palm Desert CA 92260 206-799-6426 Sent from Mail for Windows 10 2 HomeAwaym November 15, 2017 Members of the Palm Desert City Council 73510 Fred Waring Drive Palm Desert, CA 92260 CC: City Manager Lauri Aylaian CC: City Clerk Rachelle Klassen Dear Members of the Palm Desert City Council, We are writing again with a simple request: Remove the sunset on existing permits in R-1 and R-2 neighborhoods and otherwise adopt all other provisions of Ordinance No. 1332. We know from our experience in the City of Palm Springs and other municipalities across the country that a robust system of enforcement is the most powerful and effective approach to addressing the noise and parking complaints raised by some Palm Desert residents. Responsible permit -holders who meet the city's new, higher standards should be allowed to renew their permits and continue operating. They should not be punished for the actions of an irresponsible few. If necessary, we can support extending a moratorium on new permits in R-1 and R-2 zones while the new enforcement system is implemented and proven to be effective. A moratorium on new permits — with no effect on existing permits — represents a significant compromise that directly addresses residents' concerns but does not jeopardize the city's tourism economy or individual property rights. We urge you to take the most balanced course of action available at this point: Put enforcement first, shut down the bad actors, and protect R-1 and R-2 homeowners who have done nothing wrong. Remove the 2019 sunset and adopt Ordinance 1332. Please feel free to email me at wgonzalesPhomeaway.com if you have any questions. Sincerely, Walter R. Gonzales Government Affairs Manager HomeAway 1011 W. Fifth Street. Ste. 3001 Austin, TX 7870 512.684.1 100 1 Fax 512.505.1993 I w,+rw.homeaway.com Swartz, Kevin From: Paul Lougee <paul.lougee@senstay.com> Sent: Wednesday, November 15, 2017 1:29 PM To: Swartz, Kevin Subject: Incident this past weekend Hi Kevin, This weekend, one of our clients, Lesley Miller, who owns a vacation rental property on 72848 Bel Air Rd, received a noise complaint via the hotline. She was quite panicked because the anonymous caller who phoned it in described the noise violation as a raucous party, with guests screaming and playing loud music. This was odd to us, as we have recently installed noise monitoring devices, via Noise Aware, in all of our homes, and we did not receive any alert from either inside the house or from the backyard that noise had reached a decibel level that would disturb our neighbors. Nevertheless, we followed up with the guests, of which there were 5 total women present, to ask if they were playing music or being loud and they said they were inside, not playing music, and even talking rather quietly amongst themselves. The hotline dispatched a RSO, who spoke with the guests and noted he also did not find them to be loud or disruptive to neighboring properties. He also notified them that this house has been notorious for false alarms by it's neighbors. The officer was Deputy Gebhart. I'd like to bring this story to your attention because this is a common occurrence from our lovely next door neighbor who is not fond of STR's. We have yet to receive a fine for a noise violation, yet we have had well over 15 noise complaints. After one weekend, where a guest had to encounter both code compliance as well as a sheriff, when they were being totally compliant, the guest wrote a letter to the sheriff's department and Airbnb, stating they felt they were being racially profiled. Lastly, it has come to our attention (based on emails they are sharing amongst themselves) that those against STR's made a concerted effort this past weekend to call the hotline to file noise complaints, knowing that the City will be holding another very important meeting this week to decide the fate of STR's in R1/R2 zones. This is a completely unjustified use of the hotline, and is unfair to responsible STR operators who file our taxes on time, and make sure that our guests are respectful of our neighbors. It wastes our time, city officials time, as well as valuable city resources that could be guided towards far more significant issues happening at the time they are dispersed to discover there is zero issue. I ask that you please understand when considering the new ordinance, that many of these complaints by long term residents who do not favor STR's are completely BOGUS. I advise you to please speak with the sheriffs dept to confirm our story, and I have no doubt they will corroborate our description of the above event / past events. Lastly, I strongly advise giving enforcement a chance, both for bad actors of existing STRs, non -permitted STRs, and also long term residents making false claims. If the city allocates some of the revenue generated by TOT to beefing up enforcement, we can keep Palm Desert a place for everyone to share. i Thank you, Paul Paul Lougee GM I Palm Springs (312) 550-0070 1 This email and any attachments may contain confidential and proprietary information of SenStay, INC., and is for the sole use of intended recipient for the stated purpose. Any review, reliance or distribution by others or forwarding without express permission is strictly prohibited. If you are not the intended recipient, please contact the sender and delete all copies. 2 November 15, 2017 SENT VIA EMAIL City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Attention: Kevin Swartz Re: Short Term Rentals Dear Mr. Swartz: We have owned and operated a permitted Short Term Rental in the City of Palm Desert since 2014. We have operated this in a very proactive and responsible manner, always complying with the governing rules set forth by the town. In light of the recent ban being set forth by council eliminating permits in the R-1 and R-2 zones, we feel it is necessary to voice our opposition to this ban. We have attended all of the council meetings when STR's have been on the agenda. We were completely floored by the motion that was set forth in the October 26th meeting to ban and phase out the existing permits in R-1 and R-2 zones. We are urging you as council members to reject this Ordinance based on the fact that the Public has not been given the proper time to review and respond. We also believe that the Council needs to have a solid enforcement code put into place and that the proper time needs to be given to allow these enforcement codes to work before there is a COMPLETE ban in R-1 and R-2. It is obvious that enforcement in working in the Planned Residential Zones, because the Council is not imposing a ban in the PR Zones. While we certainly sympathize with the homeowners who stood up at the meeting with nightmare stories of extreme noise, parking issues and over occupancy in STR homes, we feel that these problems are small in numbers and that the City of Palm Desert may possibly have some culpability as to why these problems are occurring. We listened to several owners speak at the October 26th meeting sighting that investors have bought several homes in their neighborhoods and were issued permits for each of their houses. Did the City not think this would become a problem issuing multiple permits to the same owner in the same neighborhood? Why wasn't more thought process put into this by the City? Our feeling is this, because the City did not properly vet this process when it came to putting the Ordinance together, we now become the ones to suffer because of it! We feel that the Council is making an emotional decision not a decision based on solid facts! We haven't even mentioned all the other reasons why this ban would hurt our community, the obvious ones that we all know. The loss of revenue to the wonderful businesses that have chosen Palm Desert as their location to do business. The plummeting of property values when we will be forced to sell our homes because the City has imposed this restriction. The loss of tax revenues to the Town of Palm Desert, and the list goes on! While we all have different reasons for why we are opposed to this ban, I want to share our personal story as to why we feel as strongly as we do. Dean and I have been business owners as well as homeowners in this Valley for 40 plus years. We have raised our children here and this Valley has provided us a good living and a beautiful atmosphere in which to do so. But like so many business owners here, when the market crashed we had some very tough decisions to make. Our saving grace was that would were able to rent our property in Palm Desert. We feel very fortunate that we able to ride out the storm and are hopefully coming out on the other side. What we want Council to understand is that there are more permitted homeowners who take pride and are extremely diligent in the handling of their property then there are irresponsible ones. Again, we encourage all of the Council not to make an emotional decision but a sound decision based on facts. We personally know enforcement works as we practice it every time we check in a guest to our home! I want to thank all of you for the time and effort being placed into this decision. Dean Schuman Dana McCray 72-775 Beavertail Street Palm Desert, CA 92260 760.272.0952 760.898.1451 Swartz, Kevin From: Stanley, Jane Sent: Wednesday, November 15, 2017 8:13 AM To: Swartz, Kevin Subject: FW: Short Tern Rentals From: Alyson Doyle[mailto:alvsondovleCahotmail.coml Sent: Wednesday, November 15, 2017 5:06 AM To: CityhallMail Subject: Short Tern Rentals To City Planning As a Palm Desert vacationer, I am shocked to see the City Council vote to ban all short-term vacation rentals in R-1 and R-2 zones. We have been renting a home in Palm Desert for several years and are responsible guests. We do not make noise or in any way annoy the neighbors. Without the ability to rent this home (77271 Ohio Circle) we would find it much more expensive to vacation in your city and would likely opt to go elsewhere. We love Palm Desert but you would force us to choose another destination. Please consider removing the ban and give enforcement a chance to work. Thank You Alyson 1 Swartz, Kevin From: Stanley, Jane Sent: Wednesday, November 15, 2017 8:13 AM To: Swartz, Kevin Subject: FW: Vacation rentals From: Gary Slater imailto:aarv(aazureseas.ca1 Sent: Tuesday, November 14, 2017 4:02 PM To: CityhallMail Subject: Vacation rentals To whom it may concern, I have been travelling to Palm Desert for a sunny get -away for the last 20 years and have spent many of my hard earned dollars playing golf at my favourite golf course, Desert Willows (among others) and dinning at one or another of the many fine dinning establishments in the area. I was shocked and saddened when I heard of City Council's vote to ban all short-term vacation rentals in R-1 and R-2 zones. I, personally will not travel to, and stay at, Palm Desert if I have to resort to staying at a Hotel or some such other accommodation. We have been renting a home in Palm Desert for several years and are responsible guests. We do not make noise or in any way annoy the neighbours as I am sure is the case with most vacation renters. I am sure there are many that just go to "party", but I would wager that is a minority and as such more of an enforcement issue, Without the ability to rent this home (77271 Ohio Circle) we would find it much less desirable to vacation in your city and would likely opt to go elsewhere. We love Palm Desert, but, if this bylaw were to be successfully adopted, would feel forced to choose another destination for our R & R. Please consider removing the ban and give enforcement a chance to work. Please consider, 1 remain, Gary Slater Palm Desert Vacationer. i Swartz, Kevin From: Klassen, Rachelle Sent: Wednesday, November 15, 2017 8:32 AM To: Swartz, Kevin Subject: FW: City of Palm Desert STR restrictions Rachelle Klassen City Clerk Ph: 760.346.0611 Direct: 760.776.6304 rklassenPcitvofoalmdesert.org Original Message From: Joanne Peacocke fmailto:iorav2Pshaw.ca] Sent: Tuesday, November 14, 2017 5:56 PM To: Harnik, Jan; Weber, Susan Marie; Nestande, Gina; Kelly, Kathleen; Jonathan, Sabby; Klassen, Rachelle; robert.hargreaves@ BBKLaw.com; Stendell, Ryan Cc: Apple ID Subject: City of Palm Desert STR restrictions To all elected officials and staff at the City of Palm Desert I wish to provide a view on the decision to restrict and eliminate short term rentals in the City of Palm Desert. My wife and I own a home in Palm Desert near the Civic Center Park. We fell in love with the city a few years ago and decided to purchase a second home, that would become a permanent residence on our retirement in a couple of years. To help us afford the property which we paid well above the cost of the median homes in our area we partnered with a reputable property management company, Acme House Company. There have been no complaints from neighbors about noise or nuisance with our property. We only desire responsible persons to rent our home and will not tolerate any occupants who disrupt the enjoyment of the neighborhood by residents. In addition to the purchase of our home we have spent thousands of dollars in the local community supporting local business from contractors, supply and retail stores, landscaping, pool maintenance, restaurants, car rentals, grocery stores, etc. The economy of the city and the entire Coachella Valley is massively dependent on short and long term rentals. Drive these out and so many local people will be affected and many service jobs lost. For example our pool maintenance company is a small business that is hugely dependent on rental properties. Extreme measures and elimination of rentals may well cost him and his family their livelihood. We do not understand how such a wide sweeping decision was made by council last month based on a small number of complaints, under 80 in a year. What other data was this decision based on other than biased views of an extremely small percentage of vocal residents? Can we see where these complaints occurred? Were any frivolous or unfounded? Decisions need to be based on facts not emotions. We are strongly in favor of strict enforcement of viable bylaws and potentially an increase of permit fees to assist with the hiring of additional enforcement resources but with only one noise complaint ever 4 or so days that may not be needed. 1 Of note when we purchased our home last year not one of our nearby residents who have 'neighborhoods are for neighbors" signs displayed bothered to come ring our bell and welcome us during our first month living in the house. Other neighbors who have not displayed these front yard signs welcomed us with open arms and have become friends. Please consider the big picture of this issue and not just the squeaky wheel! Thank you for taking the time to read and consider our views. Joanne and Ray Peacocke Sent from my iPad 2 Swartz, Kevin From: Klassen, Rachelle Sent: Wednesday, November 15, 2017 8:34 AM To: Swartz, Kevin Subject: FW: [SPAM] - Yes on Short Term Rentals in Palm Desert Rachelle Klassen City Clerk Ph: 760.346.0611 Direct: 760.776.6304 rklassen@cityofpalmdesert.org From: Robert Zakheim [mailto:robertz@optixiwear.coml Sent: Wednesday, November 15, 2017 8:32 AM To: iharnik@Dalmdesert.ora; Weber, Susan Marie; Nestande, Gina; Kelly, Kathleen; Jonathan, Sabby; Kelly, Kathleen; Klassen, Rachelle Cc: Robert.Harareaves@BBKlaw.com; RStendell@city ofoalmdeset.ora; robertz@ootixiwear.com; 'Shawn Patt'; 'Susan Zakheim'; Izakheim@amail.com Subject: [SPAM] - Yes on Short Term Rentals in Palm Desert To the Mayor, City Council members and staff of Palm Desert, Please vote YES on Short Term rentals!! The city, businesses and homeowners all need the benefits of what Short Term rentals brings. Increased revenue for the City, businesses thriving with the influx of additional shoppers and guests, Tax revenue, and increased value to our homes. Sincerely, Robert Zakheim - Homeowner and future retiree of Palm Desert 40941 Sandpiper Court Palm Desert 92260 1 Swartz, Kevin From: John Curran <curranj@gmail.com> Sent: Wednesday, November 15, 2017 8:43 AM To: Nestande, Gina; Harnik, Jan; Kelly, Kathleen; Aylaian, Lauri; Jonathan, Sabby; weber; Stendell, Ryan; Swartz, Kevin Subject: Airbnb in Paris Here are two recent articles about Airbnb and their fight with the city of Paris. http://fortune.corn/2017/07/05/airbnh-Paris-hotels/ https://parispropertroup.com/hlog/20 17/airbnh-Paris-love-hate-relationship/ Major points: 1. It is 2.5 times more lucrative to rent short term than long term 2. Paris has lost 20,000 rental units in the last five years since they were converted to STRs This loss of long term rentals is driving up prices everywhere it happens and driving lower income people out of the cities where they work and many have lived all their lives. Watch the video in the Forbes article with the CEO of Airbnb. He claims that the company does not want landlords to take units off the market. This is almost a Saturday Night Live skit with a politician making claims that are patently false. I have spoken to shop clerks and restaurant staff who live in Yucca Valley because they can't afford to live in Palm Desert or the other nearby cities. They drive one hour each way in order to work. This takes time and money they should not have to spend. Government officials in CA love to proclaim how energy conscious they are with green initiatives. There is nothing green about reducing housing stock and forcing low income wage earners to spend two hours a day commuting in a car. Low income housing in Palm Desert is practically non-existent. The continued conversion of regular houses is going to make what is left disappear from the marketplace. As long as owners can almost triple their income with this conversion, they will make the decision for the city. Is this the legacy the current council wishes to leave as a marker of their management of Palm Desert? Some or all of you will probably not be in office in ten years. jc John Curran Palm Desert, CA All messages from this address are gluten -free, as required by California law. t Swartz, Kevin From: Klassen, Rachelle Sent: Wednesday, November 15, 2017 8:49 AM To: Swartz, Kevin Subject: FW: Yes on Short Term Rentals in Palm Desert Rachelle Klassen City Clerk Ph: 760.346.0611 Direct: 760.776.6304 rklassen@cityofpalmdesert.org From: Susan Zakheim fmailto:szakheim22Caamail.com1 Sent: Wednesday, November 15, 2017 8:50 AM To: Unknown Cc: iharnik(aDalmdesert.ora; Weber, Susan Marie; Nestande, Gina; Kelly, Kathleen; Jonathan, Sabby; Klassen, Rachelle; Robert.Haroreaves(abbklaw.com; RStendell(acitvofoalmdeset.ora; Shawn Patt; IzakheimCa�amail.com Subject: Re: Yes on Short Term Rentals in Palm Desert I vote yes. On Nov 15, 2017 8:32 AM, "Robert Zakheim" <robertz@ontixiwear.com> wrote: To the Mayor, City Council members and staff of Palm Desert, Please vote YES on Short Term rentals!! The city, businesses and homeowners all need the benefits of what Short Term rentals brings. Increased revenue for the City, businesses thriving with the influx of additional shoppers and guests, Tax revenue, and increased value to our homes. Sincerely, Robert Zakheim - Homeowner and future retiree of Palm Desert 40941 Sandpiper Court Palm Desert 92260 1 Swartz, Kevin From: Heather Brookes <heatherbrookes@aol.com> Sent: Wednesday, November 15, 2017 10:03 AM To: Swartz, Kevin Subject: re STR Ban Hello Mr Swartz; I'm not sure that you are interested in my opinion as I am a property owner in Rancho Mirage. However I was first introduced to this area through two different vacation rentals my family and I booked in Palm Desert, five years ago. As a result of our wonderful experiences there I am now a California tax payer and spend the majority of my travel dollars in your community and those surrounding it. I think a ban like you are contemplating, will have huge negative economic consequences. Please reconsider. Heather Brookes 1 Swartz, Kevin From: Klassen, Rachelle Sent: Wednesday, November 15, 2017 10:28 AM To: Swartz, Kevin Subject: FW: [SPAM] - Vacation Rental Proposed Ban / I applaud you Rachelle Klassen City Clerk Ph: 760.346.0611 Direct: 760.776.6304 rklassen@cityofpalmdesert.org From: Mary Baghbodorian fmailto:mb2727@ uniarafix.comj Sent: Wednesday, November 15, 2017 10:07 AM To: Harnik, Jan Cc: Weber, Susan Marie; Nestande, Gina; Kelly, Kathleen; Jonathan, Sabby; Klassen, Rachelle; Robert.Harareaves(aBBKLaw.com; Stendell, Ryan Subject: [SPAM] - Vacation Rental Proposed Ban / I applaud you Dear Mayor and City Council, I moved to Palm Desert in 2003 and was looking forward to a retirement far from the traffic and noise of LA. Things went great , I was able to sit in my backyard in peace , watch the sunset and mountains. Unfortunately these simple luxuries of retirement disappeared when the house next door was bought by an investor and became a vacation rental . We in the desert look forward to the Fall and Spring to enjoy our backyard , but now we have to contend with sometimes 10 -12 millennials at a time renting the house next door who enjoy different things such as cussing, shouting, loud music and alcohol bottles thrown at each other . It has been hell . I call the manager and nothing. I call the HOA and they tell me to call the police. I do not believe that our tax dollars should be wasted along with the police time on such calls . Please Vote for the Ban and Phasing Out of Vacation Rentals . We are the ones who vote and love our City , and it's us that Elected Officials are meant to represent. The tax money collected by the city for vacation rentals is being collected at the expense of the majority of full time Palm Desert dwellers who all they want is live in peace and enjoy their homes , which I believe is a Constitutional Right . PS: I have a friend wanting to move and retire to Palm Desert , but cannot find a home she can afford. Investors have been snatching those homes. I am unable to attend the meeting plus I am not much of a public speaker, so please consider this email my Voice at the meeting. Respectfully, 1 Mary Baghbodorian 760-600-6187 2 Swartz, Kevin From: Stanley, Jane Sent: Wednesday, November 15, 2017 11:05 AM To: Swartz, Kevin Subject: FW: Ban to all short term vacation rentals in R-1 and R-2 zones Original Message From: Kathy Laynes fmailto:klavnes20Pemail.com] Sent: Wednesday, November 15, 2017 10:40 AM To: CityhallMail Subject: Ban to all short term vacation rentals in R-1 and R-2 zones Good morning, I am writing as a Palm Desert vacationer in the hopes that you will reconsider the decision to ban all short-term vacation rentals in R-1 and R-2 zones. We have been renting a home in Palm Desert for several years and are responsible guests. We do not make noise or in any way annoy the neighbours. Without the ability to rent this home (77271 Ohio Circle) we would find it much more expensive to vacation in your city and would likely opt to go elsewhere. We love Palm Desert and we support the local businesses. Please consider removing the ban and give enforcement a chance to work. Kind regards, Kathy Laynes 10043 Imperial Street Chilliwack, BC V2P 7N8 Canada 604.793.8250 1 Swartz, Kevin From: Klassen, Rachelle Sent: Wednesday, November 15, 2017 11:11 AM To: Swartz, Kevin Subject: FW: Recent Short Term Rental Decision -- Thank you for your vote Rachelle Klassen City Clerk Ph: 760,346.0611 Direct: 760,776.6304 rklassen@cityofpalmdesert.org From: Aylaian, Lauri Sent: Wednesday, November 15, 2017 11:11 AM To: Klassen, Rachelle Subject: FW: Recent Short Term Rental Decision -- Thank you for your vote For your information and records. Lauri Aylaian City Manager Ph: 760.346.0611 Direct: 760.776.6481 laylaian@cityofpalmdesert.org From: Sabryna Scholte-Gamboni Finailto:sabrvnasg(gmail.com] Sent: Tuesday, November 14, 2017 5:36 PM To: Aylaian, Lauri <laylaian@citvofpalmdesert.org>; Harnik, Jan <iharnik@citvofpalmdesert.org>; Jonathan, Sabby <sionathan@citvofnalmdesert.org>; Weber, Susan Marie <sweber@citvofpalmdesert.org>; Stendell, Ryan <rstendell@citvofnalmdesert.org>; Swartz, Kevin <kswartz@citvofoalmdesert.org>; Kelly, Kathleen <kkelly@citvofpalmdesert.org> Subject: Recent Short Term Rental Decision -- Thank you for your vote Dear City Council members and Associates, We, the citizens of Palm Desert, have been suffering the abuses of commercial businesses in our residential neighborhoods since STRs were allowed to proliferate. Knowing there is an end in sight, and the ordinance being put in place to address the problems that exist, gives us something to look forward to. Thank you for giving us this light at the end of the tunnel! We are very grateful for your insight, when you declared a moratorium, to study the problems Short Term Rentals cause. We appreciate all the hard work that has gone into finding a solution. We are happy to compromise the allowance of owner occupied STRs, and STRs in the city's planned, designated areas. We do not begrudge commerce, or our neighbors supplementing their incomes. We too want what is in Palm Desert's best interest. i As impossible as it is to please everyone involved, we believe your solution to keep commercial businesses in the correctly zoned areas of our city is appropriate, and just. We appreciate visitors of Palm Desert, and will continue as we always have, to welcome them to our hotels, our 30 day rentals, and our owner occupied short term rentals, knowing most of us were once visitors ourselves. We are most grateful that you are not caving into the special interests of outside investors, that care only for their immediate needs, and are not thinking as you are, of the long term effects; STRs destroy neighborhoods, and eventually the cities that once supported them. Thank you for affirming that neighborhoods are for neighbors! We appreciate the care and concern you have shown your constituents. It will not be forgotten! Sabryna Scholte-Gamboni Property Owner 73424 Silver Moon Trail Palm Desert, CA 92260 2 Swartz, Kevin From: Stanley, Jane Sent: Wednesday, November 15, 2017 12:11 PM To: Swartz, Kevin Subject: FW: I oppose the ban on short term rentals in R1 and R2 zoned neighborhoods From: Roger Grant[mailto:rocier.h.clrant@aamail.coml Sent: Wednesday, November 15, 2017 12:06 PM To: CityhallMail Subject: I oppose the ban on short term rentals in R1 and R2 zoned neighborhoods My wife and I are owners of a single family short term rental near El Paseo and Portola. Here is a link to our V12130 a !\crtisem nt. We purchased the property in 2014 for $285,000 and have invested approximately $100,000 in improvements to the property. We are licensed and have had no complaints of any kind that I am aware of. Prior to putting the property up for rental, we contacted all the immediate neighbors to inform them of our plans, including giving them our personal contact information so they could inform us of any problems. No neighbors objected to our plans. I ask you to put yourself in our shoes: • We have broken no laws. • We have invested the majority of our disposable income. • We have supported dozens of local contractors and maintenance people with our $100,000 investment and ongoing maintenance. • We have paid all taxes due to the City of Palm Desert. • We are honorable, hard working people. This investment is critical to our financial future. We made this investment in good faith with the city of Palm Desert and our neighbors. We have upheld our part of that good faith agreement and ask that you please consider that when voting on this issue. Thank you for your consideration, Roger & Mary Lou Grant 1 Swartz, Kevin From: Athena Mills <athenamilis@gmail.com> Sent: Wednesday, November 15, 2017 12:21 PM To: Harnik, Jan; Swartz, Kevin; Weber, Susan Marie; Nestande, Gina Subject: Please Protect Us Tomorrow Dear Mayor, Please allow us to write our home addresses on the blue card instead of read them out loud. Donna Ault just sent this out to her group http://bit.ly/2jvyfTn . The hyperbolic language is inciting. One member of our group who spoke in favor of short term rentals on KESQ had his car vandalized, and another member who had a PRO STR letter published in the Desert Sun has received hate mail via her e-mail. On the Nextdoor Community one of our members has had her personal home address shared. I believe if you check Ms. Ault's previous e-mail to her group http://bit.ly/2AIrH7m you can correlate that to a spike and uptick of false complaints over the weekend in South Palm Desert with no citations issued. For this reason as well, we need protections put into any ordinance against filing of false complaints as a form of harassment, bullying, and intimidation. Please, there is enough precedent her to warrant us just writing our home addresses down on the blue card. I have been to other council meetings before where residents are not made to share their home addresses. Some members won't speak for fear of retribution by their neighbors. That hurts the first amendment and it hurts all of us to have a group silenced out of fear. Kevin said the only one who can make that decision is the mayor. Please protect us Mayor Harnik. Athena Martinez i Swartz, Kevin From: Camille Malone <camillelmalone@gmail.com> Sent: Wednesday, November 15, 2017 12:23 PM To: Swartz, Kevin Subject: Short-term Rentals November, 15th, 2017 City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 kswartz@citvofpalmdesert.or2 To Kevin Swartz, I have recently become aware of the motion passed banning short-term rentals in the City of Palm Desert. If this ban is to be passed it would be devastating to not only me but many of my close friends and family. Unfortunately, my family does not have the luxury to own a residence in Palm Desert and because of this, we rely on short-term rentals in order to visit. It would be impossible for a family of six to find a time during the year longer than a week or two for all of us to get time off of school, extracurricular activities, and work to go on vacation. By eliminating the opportunity for short-term rentals, it takes away the opportunity for many families to go down to palm desert for a short but sweet break and stay in a place together. The restriction on short-term rentals would not only limit the ability for families such as mine to get together for a break but also for many young students. It would be far too expensive for young people such as myself to afford to leave work and to rent a place to stay for 28 days. This would completely take away one of the most charming features of palm springs, representing a place to relax and splurge for a short period of time. During my visits, I spend my days walking down El Paseo, visiting the nearby outlet mall, and eating at all the amazing nearby restaurants. For many Palm Springs represents an escape offering a beautiful view, lovely hikes, and relaxing vibes. I treat Palm Desert and the places I stay at with the utmost respect and take the opportunity while I am there to truly relax in such a peaceful environment. As I said at the start of this letter it would be truly devastating to no longer be able to visit a place such a wonderful and loved place by my family. I urge you to reconsider this motion and see the impact it would have on many who consider Palm Springs a regular short vacation destination. Thank you for your time, Camille Malone 3570 Rue Durocher, Montreal, QC Canada H2X 2E5 1 Swartz, Kevin From: Klassen, Rachelle Sent: Wednesday, November 15, 2017 12:28 PM To: Kristi Brown Cc: Swartz, Kevin Subject: RE: Ban on Short Term Vacation Rental vote Thank you for your e-mail, which will be distributed to City Council. Rachelle Klassen City Clerk Ph: 760.346.0611 Direct: 760.776.6304 rklassen@cityofpalmdesert.org From: Kristi Brown fmailto:kristatuliohillwinerv.com1 Sent: Wednesday, November 15, 2017 11:44 AM To: Klassen, Rachelle Subject: Ban on Short Term Vacation Rental vote Dear City Clerk Lassen I am writing to you as the owner of a Short Term Vacation Rental in Palm Desert. In 2014 when we were considering investing in an STR in the desert, we looked across all the communities and chose Palm Desert because the City allowed and permitted STR's. We read through all the info on the website and decided it would be a good investment because STR's were legal and enforcement, etc was already in place. We purchased the most run down house in an up and coming neighborhood. Once we started speaking with the neighbors, we learned that the house had been a known drug house and a constant problem. The authorities had been called to the house on several occasions. To say that the neighbors were ecstatic that we were going to completely renovate the house and turn it into an STR is an understatement. According to the neighbor directly to the east, every long-term renter in the house had been a nightmare and made living next door unbearable. We invested about $400K into our new STR business and upon completion of our renovation, the house was the showplace of the neighborhood. We have been a legal and permitted STR within the City for about 18 months. Our house is professionally managed by a vacation rental company which screens and ensures that guests are respectful and aware of the STR laws. We have never had an infraction from the City nor had a disruption to our neighbors. Please consider an alternative to an out right ban in R1 and R2 zoning. We have invested hundreds of thousands of dollars going into business in Palm Desert because the STR business was allowed and the City PERMITTED and approved of our investment. If the City did not allow STR's, then we would not have invested in Palm Desert in the first place. This ban will impact us financially as we chose to invest our resources in a Palm Desert STR business because that business was condoned and approved by the City. It will also financially impact all of the people who maintain, clean and service our STR business, as well as the local businesses that rely on these tourists to shop in their stores, eat in their restaurants and use the myriad services available in our beautiful desert. Thank you for taking the time to read about our situation. 1 Sincerely, Kristi Brown & Sara Hammond 72797 Sonora Dr Palm Desert, CA 92260 760-774-3660 2 Swartz, Kevin From: Klassen, Rachelle Sent: Wednesday, November 15, 2017 12:29 PM To: Kati Hyde Cc: Swartz, Kevin Subject: RE: I'm a yes for VACATION RENTALS Thank you for your e-mail, which will be distributed to City Council. Rachelle Klassen City Clerk Ph: 760.346.0611 Direct: 760.776.6304 rklassen@cityofpalmdesert.org From: Kati Hyde [mailto:k80 99@vahoo.com1 Sent: Wednesday, November 15, 2017 11:56 AM To: Klassen, Rachelle Subject: I'm a yes for VACATION RENTALS Please consider what the vacation market has given to the city. Our property values have increased. Because of Vacation Rentals this city has had a huge upswing in the economy. Home rentals will not take away from Hotels... They are a completely different market. The Hotels will continue to build our city, but a HOME renter client is not the same a HOTEL client. Why take away the one main value that sets Palm Springs apart from any other vacation destination. The VACATION RENTALS is what makes us unique. The new restrictions recently imposed are fair and give them a chance to work, before doing away with the entire program. This makes no sense for the economy and the people of this city.... Very kind regards, Kati Hyde i Swartz, Kevin From: Stendell, Ryan Sent: Wednesday, November 15, 2017 12:50 PM To: Swartz, Kevin Subject: FW: Ban on Short Term Vacation Rental vote Can you send your standard response back to Ms. Brown and put this in your pile? Ryan Stendell Director of Community Development Ph: 760.346.0611 Direct: 760.776.6386 rstendell@cityofpalmdesert.org From: Kristi Brown fmailto:kristk tulinhillwinerv.com] Sent: Wednesday, November 15, 2017 11:45 AM To: Stendell, Ryan Subject: Ban on Short Term Vacation Rental vote Dear City Director of Planning Stendell I am writing to you as the owner of a Short Term Vacation Rental in Palm Desert. In 2014 when we were considering investing in an STR in the desert, we looked across all the communities and chose Palm Desert because the City allowed and permitted STR's. We read through all the info on the website and decided it would be a good investment because STR's were legal and enforcement, etc was already in place. We purchased the most run down house in an up and coming neighborhood. Once we started speaking with the neighbors, we learned that the house had been a known drug house and a constant problem. The authorities had been called to the house on several occasions. To say that the neighbors were ecstatic that we were going to completely renovate the house and turn it into an STR is an understatement. According to the neighbor directly to the east, every long-term renter in the house had been a nightmare and made living next door unbearable. We invested about $400K into our new STR business and upon completion of our renovation, the house was the showplace of the neighborhood. We have been a legal and permitted STR within the City for about 18 months. Our house is professionally managed by a vacation rental company which screens and ensures that guests are respectful and aware of the STR laws. We have never had an infraction from the City nor had a disruption to our neighbors. Please consider an alternative to an out right ban in R 1 and R2 zoning. We have invested hundreds of thousands of dollars going into business in Palm Desert because the STR business was allowed and the City PERMITTED and approved of our investment. If the City did not allow STR's, then we would not have invested in Palm Desert in the first place. This ban will impact us financially as we chose to invest our resources in a Palm Desert STR business because that business was condoned and approved by the City. It will also financially impact all of the people who maintain, clean and service our STR business, as well as the local businesses that rely on these tourists to shop in their stores, eat in their restaurants and use the myriad services available in our beautiful desert. Thank you for taking the time to read about our situation. 1 Sincerely, Kristi Brown & Sara Hammond 72797 Sonora Dr Palm Desert, CA 92260 760-774-3660 2 Swartz, Kevin From: Stendell, Ryan Sent: Wednesday, November 15, 2017 12:51 PM To: Swartz, Kevin Subject: FW: Hurray for VACATION RENTALS - Here's another one. Ryan Stendell Director of Community Development Ph: 760.346.0611 Direct: 760.776.6386 rstendeil@cityofpalmdesert.org From: Kati Hyde fmailto:k80 99Cavahoo.coml Sent: Wednesday, November 15, 2017 11:56 AM To: Stendell, Ryan Subject: Hurray for VACATION RENTALS - Please consider what the vacation market has given to the city. Our property values have increased. Because of Vacation Rentals this city has had a huge upswing in the economy. Home rentals will not take away from Hotels... They are a completely different market. The Hotels will continue to build our city, but a HOME renter client is not the same a HOTEL client. Why take away the one main value that sets Palm Springs apart from any other vacation destination. The VACATION RENTALS is what makes us unique. The new restrictions recently imposed are fair and give them a chance to work, before doing away with the entire program. This makes no sense for the economy and the people of this city.... Very kind regards, Kati Hyde i Swartz, Kevin From: Stanley, Jane Sent: Wednesday, November 15, 2017 8:09 AM To: Swartz, Kevin Subject: FW: Please don't ban short term rentals - perhaps ban dogs instead. From: Daphne and Gorde Edlund fmailto:thrilldilIc shaw.ca1 Sent: Wednesday, November 15, 2017 6:55 AM To: CityhallMail Subject: Please don't ban short term rentals - perhaps ban dogs instead. Hello. It saddens me greatly that you are considering banning short term rentals. We have been vacationing in Palm Desert since 2008 and have always rented a private home so we can have quiet and comfort without a crowd around (like in a hotel). Our 2 week vacations include golf, restaurants, site seeing, shopping etc. and we spend a lot of money in your community each year. We can afford to do this because a home rental is much more affordable than exorbitant hotel rates. We are responsible 50+ people and we do not annoy our neighbours. We have many friends who do the same each year and I can assure you, they are responsible people as well. It is a shame you are penalizing the vast majority of good people because of a few bad apples. There are many noisy dogs in the neighbourhood who bark incessantly, day in and day out. Have you considered banning dogs because of this? No. You have enforcement people to take care of it. And I would have to think that you receive hundreds, if not thousands, of noise complaints about dogs, not just 72 in regards to noisy renters. You are hurting thousands of good tourists because of a handful of irresponsible partiers. Please, please re -consider this. Sincerely, Daphne Hummerstone. Victoria B.C. 1 Swartz, Kevin From: Sabryna Scholte-Gamboni <sabrynasg@gmail.com> Sent: Tuesday, November 14, 2017 5:36 PM To: Aylaian, Lauri; Harnik, Jan; Jonathan, Sabby; Weber, Susan Marie; Stendell, Ryan; Swartz, Kevin; Kelly, Kathleen Subject: Recent Short Term Rental Decision -- Thank you for your vote Dear City Council members and Associates, We, the citizens of Palm Desert, have been suffering the abuses of commercial businesses in our residential neighborhoods since STRs were allowed to proliferate. Knowing there is an end in sight, and the ordinance being put in place to address the problems that exist, gives us something to look forward to. Thank you for giving us this light at the end of the tunnel! We are very grateful for your insight, when you declared a moratorium, to study the problems Short Term Rentals cause. We appreciate all the hard work that has gone into finding a solution. We are happy to compromise the allowance of owner occupied STRs, and STRs in the city's planned, designated areas. We do not begrudge commerce, or our neighbors supplementing their incomes. We too want what is in Palm Desert's best interest. As impossible as it is to please everyone involved, we believe your solution to keep commercial businesses in the correctly zoned areas of our city is appropriate, and just. We appreciate visitors of Palm Desert, and will continue as we always have, to welcome them to our hotels, our 30 day rentals, and our owner occupied short term rentals, knowing most of us were once visitors ourselves. We are most grateful that you are not caving into the special interests of outside investors, that care only for their immediate needs, and are not thinking as you are, of the long term effects; STRs destroy neighborhoods, and eventually the cities that once supported them. Thank you for affirming that neighborhoods are for neighbors! We appreciate the care and concern you have shown your constituents. It will not be forgotten! Sabryna Scholte-Gamboni Property Owner 73424 Silver Moon Trail Palm Desert, CA 92260 1 Swartz, Kevin From: Mediation Services <mediatewithlisa@gmail.com> Sent: Tuesday, November 14, 2017 5:37 PM To: Nestande, Gina; Harnik, Jan; Kelly, Kathleen; Aylaian, Lauri; Jonathan, Sabby; weber Cc: Stendell, Ryan; Swartz, Kevin Subject: One Can Only Speculate Greetings: I was told many years ago while while working in government and will never forget, " learn how to stay under the radar". For which I have up until now. Many have waited and expected a fair and just vote as it relates to the fate of short term rentals. A decision not tainted by friendship, connections, favors, or assumptions. This upcoming meeting which will aid the fate of STR's has sparked the anger, ignited the flame, and created obsessions for those for and mostly those against STR's. I have monitored the postings on Nextdoor.com and have to say neighbors are attacking neighbors, many calling in misleading and false complaints, harrassing and bullying, and a complete disregard for others. What has happened in Pam Desert is far worse than the STR itself. Neighbor is dvided against neighbor, fines are being imposed and the hatred is growing. There is a mentality by a few that only retired and quiet neighbors should only exists with no parties, no guests, no extra cars, and no pets for that manner. Many want to see empty houses on their streets and many not willing to adjust to changes and the diversity the desert has become. Those few residents who have had bad experiences with STRs are angry at their neighbors, the investors, the renters, those in favor of STRs, and those who choose to advertise on vacation rental websites. They vigourously have gone after many homeowners and investors trying to find fault, reporting them to the hotline, and even fabricating claims to manipulate the vote. They have been succussful in creating the attention despite at the cost of others. I have witnessed posts by those who have been deeply disturbed and angry after having of a code compliance officer at their door while with their families in their own home. A secret task force created by those against STR's have made many false allegation claiming a current STR is in progress. This will never end if we continue to enable the behaviors of those against STR's and those who have falied to work as a team and come up with a solution to meet the needs of all parties involved. Parties and noise complaints are unsubstantiated while harrassment on homeowners increases. There is more at stake than the investor making money. There are families, retired couples, widows, single mothers, and hard working men and women who enjoy the liberty and opportunty to use their homes and be a host to guests from all over the world. The financial ability to pay medical bills, school loans, first and second mortgages, solar, and so much more has relieved many of this hardship. Many families do not want to leave their homes for long periods and STR's give them the chance to remain in the desert for which they also love and cherish. From what it appears the investors and homeowners and are trying to appease and work witth those who have had bad experiences with no prevail. They are willing to accept fines and consequences for faliing to adhere to the ordinance and regulations. It appears they are ready to accept responsibility for bad renters. I can not speak for all. A flat out ban on all STR's is not the answer. The desert welcomed myself and my children over 20 years ago when my father had two homes in Palm Valley County Club. I enjoyed living in a gated community and ammenities. I later moved to Bermuda Dunes on Yucca Lane eventually finding my way to South Palm t Desert. I love the peace and the serenity here. I Left Palm Valley because it was too quiet for me. Now that I live in South Palm Desert I have found to enjoy the neighborhood. I enjoy the guests who visit us and the revenue that comes with it. Never have I or my neighbors have had a problem with noise complaints or parties since our purchase in 2010. Not all parts of RI and R2 zones are affected by STR's and if there are a handful of homes that are continuing to create problems I am sure with more put into enforcement we can control and monitor the problem. I hope the right decision will be made for South Palm Desert as a whole and not merely wanting to appease a few angry homeowners. Regads, Lisa 2 Swartz, Kevin From: Walt Edwards <walter.edwards90@gmail.com> Sent: Tuesday, November 14, 2017 7:10 PM To: Swartz, Kevin Subject: Short -Term Rentals in Palm Desert Palm Desert City Council - In 2016 I purchased a nice home at 72962 Bel Air Road in South Palm Desert for $740,000, which was a fair price based on the short term rental income the previous owner generated. I improved the home by adding a bedroom and bath, which replaced an unpermitted casita. I also added solar panels to enhance the sustainability of the property, particularly when you consider the air conditioning usage during the summer. I am deeply disappointed in your decision to ban short term rentals for a number of reasons: 1) I've improved the quality of the house, which in turn enhances the look of the neighborhood and generates more tax revenue. Banning short term rentals will destroy most of the value I created. 2) Countless home owners will try to sell their properties and home values along with the associated tax revenue will plummet. 3) Local businesses will fail as fewer visitors will choose Palm Desert due to the lack of short term rental options. On this topic, I'd be curious if any Hotel owners are funding this initiative to shut down short term rentals? Has the City provided conflict of interest disclosures on this topic? 4) After paying the Palm Desert licensing fee for short term rentals, I've been a good neighbor and abided by the appropriate rules set by the City. 5) Bad operators should have their licenses revoked instead of destroying the property value of others via this poor City Council decision. 6) If the ban on short term rentals becomes law, I expect to lose property value of at least $200,000 which is obviously a financial hardship. Will the City make me whole along with the other owners that paid for a short term license in Palm Desert? I look forward to the City reconsidering its ban on short term rentals. Sincerely, Walt Edwards Owner - 72962 Bel Air Road i Swartz, Kevin From: Vern Milani <vernm@milani.ca> Sent: Tuesday, November 14, 2017 8:00 PM To: Swartz, Kevin Subject: Pro short term rentals for the city of Palm Desert VIA EMAIL (kswartz@citvofoalmdesert.ora) City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Attention: Kevin Swartz Dear Mr. Swartz: Re: Short Term Rental Ordinance I own and operate a Short Term Rental in the City of Palm Desert with a permit. I am a responsible owner of a Short Term Rental and I am very opposed to the recent ban on Short Term Rentals in the R1 and R2 zones in South Palm Desert that was passed on first reading by the City Council. I am very concerned about this ordinance and the impact that it will have on the Palm Desert community, the economy of Palm Desert, the city revenues and the property values in our neighborhood. It is far too extreme a measure to correct the identified problems of noise and the party houses in the residential areas. It is also very unfair that just the R1 and R2 neighborhoods have been singled out, but that STRs are still allowed in the planned residential communities. This arbitrary distinction does not solve the problems that the City Council stated it was trying to correct: noise, different neighbors all the time, excessive parking. Palm Desert is a tourist dependent economy; residents have to expect that they do not live in a typical residential neighborhood. The answer is better regulation, not a zone -specific ban that is unfairly discriminatory. STR owners have improved the entire neighborhood of Palm Desert. It is now beautiful and well -maintained when it was not in 2010-2012 during the recession. As a Short Term Rental owner and operator, I take steps to ensure that my renters abide by the Short Term Rental Rules. In order to correct the problems identified by some of the long term residents in Palm Desert, it would be far more effective to implement these changes; 1. Increase the minimum nightly rental to 4-7 nights. This would eliminate the party houses. The people coming to party want to rent for 2 nights, not longer. 2. Disallow outside music after 9pm on weeknights. 10pm on weekends. 3. Limit the total number of persons allowed to stay at a house to a maximum of 2 per bedroom up to a total maximum of 10-12 persons with special allowances for small children. 4. Maintain the increased fines and penalties for violations of rules. 5. Increase the cost of the permit to allow for more enforcement dollars. 1 6. Require damage deposits from renters so that they can be fined and those fines can be collected. I. Limit the total number of STR permits in each area so as to avoid large concentrations in one area. Grandfather existing STRs permits and allow attrition to take effect and over time, reach the desired numbers. If this ban goes into effect, I believe these will be the consequences; 1. Vacationers will rent in Palm Springs instead of Palm Desert, taking all their vacation dollars with them. Businesses along El Paseo will suffer. 2. Property values in south Palm Desert will decline significantly. Many owners will have to sell. Disallowing STRs will drive purchasers to other areas where they are allowed. 3. The City will lose tax revenues that could be spent on better enforcement of stricter rules for STRs. This ordinance is contrary to the best interest of all of Palm Desert and I strongly urge the City Council to reject it on second reading. I would like to attend the meeting on November 16, 2017 when the second reading is supposed to happen. I wish to speak to the City Council to express my strong opposition to this ban. Please forward this email on to the City Council and please advise as to how I can obtain authorization to speak at the meeting. Thank you for your consideration. Sincerely, Vern Nicole Milani 46215 Golden Rod Palm desert 92260 7788390063 2 Swartz, Kevin From: Aylaian, Lauri Sent: Tuesday, November 14, 2017 4:35 PM To: Klassen, Rachelle; Swartz, Kevin Subject: FW: I oppose the ban on short term rentals in R1 and R2 zoned neighborhoods Rachelle and Kevin, This email message was sent to the members of the City Council, but it should be included as part of the public record for the upcoming agenda item, too. Thanks, Lauri A. Lauri Aylaian City Manager Ph: 760.346.0611 Direct: 760.776.6481 laylaian@cityofpalmdesert.org From: Roger Grant[mailto:roger.h.grant@gmail.comj Sent: Tuesday, November 14, 2017 3:45 PM To: Harnik, Jan <jharnik@citvofoalmdesert.ore>; Aylaian, Lauri <laylaian@cityofpalmdesert.org>; Jonathan, Sabby <sionathanCa@citvofpalmdesert.org>; Kelly, Kathleen <kkelly@cityofpalmdesert.org>; Weber, Susan Marie <sweber@citvofpalmdesert.org> Subject: I oppose the ban on short term rentals in R1 and R2 zoned neighborhoods My wife and I are owners of a single family short term rental near El Paseo and Portola. Here is a Zink to our VRBO advertisement. We purchased the property in 2014 for $285,000 and have invested approximately $100,000 in improvements to the property. We are licensed and have had no complaints of any kind that I am aware of. Prior to putting the property up for rental, we contacted all the immediate neighbors to inform them of our plans, including giving them our personal contact information so they could inform us of any problems. No neighbors objected to our plans. I ask you to put yourself in our shoes: • We have broken no laws. • We have invested the majority of our disposable income. • We have supported dozens of local contractors and maintenance people with our $100,000 investment and ongoing maintenance. • We have paid all taxes due to the City of Palm Desert. • We are honorable, hard working people. This investment is critical to our financial future. We made this investment in good faith with the city of Palm Desert and our neighbors. We have upheld our part of that good faith agreement and ask that you please consider that when voting on this issue. 1 Thank you for your consideration, Roger & Mary Lou Grant 2 From: suzie ohair Finailto:suzieohair@gmail.comj Sent: Tuesday, November 14, 2017 11:18 AM To: Aylaian, Lauri <lavlaian@citvofbalmdesert.ore> Subject: Thank you to the Council regarding their STR vote City Manager Aylaian, Please let the Council know how much I respect their brave leadership on the issue of Short Term Rentals in Palm Desert, particularly R-1 and R-2 zone bans and the grandfathering of existing permits. You cannot regulate "Being a Good Neighbor" when unoccupied STR owners don't share the same motivation as neighbors; one wants to make a buck, the other wants to make a community. I especially appreciate that staff and Council have, since the start of the year, listened carefully to all sides but ended up deferring to the city's residents rather than outside business interests. Palm Springs was inattentive, created a mess -- and in my opinion, worse of all -- dragged their residents through years of ongoing frustration. Sincerely, Suzie O'Hair 73480 Feather Trail Palm Desert 92260 2017 BOARD OF DIRECTORS PRESIDENT Fred Bell Nobel) Energy Solutions 1" VICE PRESIDENT Deborah McGarrey Southern California Gas Compa 2"d VICE PRESIDENT Tom Dubose Development Design & Engineering SECRETARY/TREASURER Eileen Eskc Pacific Premier Bank VICE PRESIDENT OF ASSOCIATES Allan Levin Allan Levin & Associates PAST PRESIDENT Bruce Maize Discovery. Builder:, CHIEF EXECUTIVE OFFICER Gretchen Gutierrez DIRECTORS Brian Benedetti Brian Benedetti Construction Mark Benedetti RMC' Select Build Margaret Drury Margaret Drury Construction Mario Gonzales GHA Companies Mark Gran Strictly Business Consulting Joe Haves First Bank "{'odd Books Agua Caliente Band of Cahuilla Dave Lippert Lippert Construction. Inc Heather Loutsenhizer Davis Reed Paul Mahoney PMA Advertising Dan Olivier Nether) Mueller Olivier Alan Pace Petra Geotechnical John Powell. Jr Coachella Valley Water District Phil Smith Sunrise Company Patrick Swarthout Habitat for Humanity_ Jeff Wattenbarger Wattenbarger Construction ny desert valleys builders association November 16, 2017 City of Palm Desert Mayor Jan Harnik, And City Council Members 73-610 Fred Waring Drive Palm Desert, CA 92260-2578 Dear Mayor Harnik, and Members of the City Council; The Desert Valleys Builders Association has been monitoring the developments of the new ordinance for short-term rentals in the City of Palm Desert. As our staff and members are homeowners, we empathize with those homeowners that see short-term rentals in the negative Tight as a commercial business in a residential zone. Whether or not vehicle traffic is increased, or there are disruptive parties at these locations, just seeing unfamiliar vehicles in the neighborhood is genuinely disconcerting. However, we believe that short-term rentals have a positive impact on the local economy. They bring families to the desert, and fill the need when hotels are just too difficult to accommodate them. Our economy is intrinsically reliant on tourism and hospitality. In order to compete as a destination, accommodations must be as varied as possible to support the needs of our visitors. Indians Some statements have been made in the opinion pages of the local newspaper claiming that short-term rentals reduce the values of their properties. DVBA has not seen any legitimate studies to support these statements. Home values continue to increase in the Coachella Valley. There is a continued demand for homes in Palm Desert, whether for personal occupancy or for investment (long or short-term). Palm Desert is a desirable place to live and visit. As Desert Valleys Builders Association we see this as good news, because it drives investment in new home production, which will drive commercial investment, and both provide skilled job wages which in turn support our local economy. 75100 Mediterranean • Palm Desert • CA 92211 (760) 776-7001 office • (760) 776-7002 fax www.thedvba.org 91 �Z Wd 91 AON LtUb VJ 'id3S3O W1Vd 3DIA3003ft 3��� � 1tO 2017 BOARD OF DIRECTORS PRESIDENT Fred Bell Nobel) Energy Solutions I" VICE PRESIDENT Deborah McGarrey Southern California Gas Company 2"d r7CE PRESIDENT Tom Dubose Development Design & Engineering SECRETARY/TREASURER Eileen Eske Pacific Premier Bank VICE PRESIDENT OF ASSOCIATES Allan Levin Allan Levin & Associates PAST PRESIDENT Bruce Maize Discovery Builders CHIEF EXECUTIVE OFFICER Gretchen Gutierrez DIRECTORS Brian Benedetti Brian Benedetti Construction Mark Benedetti BMC' Select Build Margaret Drum Margaret Drury Construction Mario Gonzales GHA Companies Mark Gran Strictly Business Consulting Joe Have, First Bank Todd Hooks Agua Calient_ Band ofCahuilla India Dave Lippert Lippert Construction, Inc Heather Loutsenhizer Davis Reed Paul R-iahoney PMA Advertising Dan Olivier Nether Mueller Olivier Alan Pace Petra Geotechnical John Powell, Jr. Coachella Valley Water District Phil Smith Sunrise Company Patrick Swarthout Habitat for Humanity Jeff Wattenbarger Wattenbarger Construction desert valleys builders association The DVBA supports most of the ordinance changes as amended at the October 26, 2017 city council meeting. We believe in rigorous code compliance, heightened penalties for poor behavior and disrespecting the privilege of visiting the neighborhood in which they are visiting. We also recognize the sentiment of the R-1 and R-2 neighborhoods, and believe that phasing out STR permits through attrition in these zones would be equitable and a best practice solution. However, as the council voted October 26th, the rights of property owners will be severely diminished on July 1, 2019 with the termination of all STR permits. DVBA believes that for existing owners with active permits wishing to continue beyond July of 2019, this termination policy would be an "Unconstitutional Taking". We acknowledge that the amendment includes an appeal process for "Exceptions Based on Unconstitutional Takings" Municipal Code Section 25.34.140. However, this appeal process requires information beyond that necessary to make a legitimate determination of taking of property rights. The Desert Valleys Builders Association appreciates the complexity of this issue and acknowledges that each of you as elected officials have thoughtfully considered the needs of the community. Thank you for your commitment. 75100 Mediterranean • Palm Desert • CA 9221 1 (760) 776-7001 office • (760) 776-7002 fax www.thedvba.org Swartz, Kevin From: Aylaian, Lauri Sent: Thursday, November 16, 2017 1:57 PM To: Rhone Lane Cc: Swartz, Kevin; Klassen, Rachelle Subject: RE: Please share with our Council members Thank you Mr. Hair. I will pass on your email to the members of the City Council, but I can't guarantee that they'll see them before the City Council meeting this afternoon. Sincerely, Lauri Aylaian City Manager Ph: 760.346.0611 Direct: 760.776.6481 laylaian@cityofpalmdesert.org From: Rhone Lanejmailto:rhonelane9965@gmail.coml Sent: Wednesday, November 15, 2017 6:17 PM To: Aylaian, Lauri <lavlaian@citvofpalmdesert.org> Subject: Please share with our Council members Thank you so much for banning Short Term Rentals from R-1 and R-2 zones. These days it takes a lot of courage to turn down business -- but what makes Palm Desert great is it has never run after every business dollar. That's why we don't have car dealerships on Highway 111 and it's also why we shouldn't have defacto hotels in residential neighborhoods. The Council members who voted for the ban have my backing now and in the future! Sincerely, Floyd Hair 72395 Ridgecrest Lane Palm Desert 92260 1 Swartz, Kevin From: Camille Victour <camille.victour@gmail.com> Sent: Thursday, November 16, 2017 12:22 PM To: CityhallMail; Swartz, Kevin Subject: STR issue Hello all: I just want to express my support for Short Term Rentals in R-1 & R-2 in Palm Desert. I own a vacation rental on Buena Cir and always strive to have excellent guests and be a good neighbor. I know I would not want to live next to a party house either so I also understand the concerns of the neighbors who have had to deal with that on some streets in our city. I went to the council meeting in October and heard the many complaints about the party houses. This obviously needs to stop. But we should not throw the baby out with the bath water by banning all STR's in the SFR neighborhoods. Here are my suggestions at a compromise: 1. earmark some of the funds from the increase in the TOT tax for enforcement of the rules so as to be able to have a code compliance officer on call evenings and weekends. This will relieve the burden on the police force which should be focusing on violet crimes instead of noise nuisance calls. 2. Limit STR rentals in R-1 & R-2 to a minimum of between 5-7 days which would stop the weekend partiers. These are the main trouble makers. 3. NO outside amplified noise at all even in the day time so there will be no pool party music. However, this will have to be applied to regular homeowners too because it is sometimes hard to tell where music might be coming from. Regular homeowners and renters can be just as obnoxious about poolside music as STR's. It would go without saying not to be able to have a live band playing in your yard or home either, for everyone not just STR's. 4. Make the first offense fine $500, second $500, Third offense, permit revoked. Since the fine is on the owner not the guest, but the guest will be backcharged for the fine, this is a bit problematic to have increasing fines for more offenses. Otherwise in setting up the lease arrangement some properties will have a $500 fine and it would be $1000 at another house that had an incident already by someone else. 5. The $1000-$3000-$5000 fine structure is way too severe. Nobody could pay $3000 and $5000 fines especially if you've taken away the income stream to pay for it by revoking the permit. And think about it-- that's just too egregious of a penalty over some noise. 6. Maximum of EIGHT people staying in a home no matter how many bedrooms are in the home. We would need cooperation from the rental sites to monitor this. 7. Maximum of EIGHT other guests during the day. Maybe this could be monitored by saying no more than 6 cars allowed on or in front of the property period 8. I don't think a personal check in requirement will help. It just creates an unnecessary burden on the owner. And it does nothing to ensure that the guests won't have a loud party later. 9. Make a requirement that if the owner does not live locally or on the property that someone be able to respond quickly (within 30 minutes seems reasonable) to any complaints BEFORE a fine and citation are issued. That contact person needs to be on file with code compliance as the first responder. My STR rental is on Buena Cir and I've had way more problems with my neighbors disturbing us than the other way around. However, I continue to strive to improve my property and keep up good relations with my neighbors. Many of them already know how to reach me directly but I plan to personally go around to all my neighbors to give them my personal contact info so that if there is ever a problem they can contact me directly. I i live nearby and am always available to come take care of any issues right away. Perhaps having a code compliance officer assist STR owners in doing this might alleviate some of the discord in the neighborhoods. I choose to do a vacation rental instead of a regular rental because I do not care to be a regular landlord with all the hassle that entails. As a Realtor, I work with people all the time who have had tenants who trashed their home and/or caused them to force an eviction process after not paying rent for months. No thank you! I love working with happy people who respect my property and pay in advance for their stay. I hope we will all be able to come to a compromise that can work for all who want to live and play here. I feel that the resolution process we have now has occurred too quickly while only satisfying the local people who vote for you. The solution that has been reached only satisfies them and is not fair for ALL of us. Thank you kindly for considering my point of view. Sincerely, Camille Victour cell: (760) 636-6989 2 Swartz, Kevin From: Jordan Armitage <jordan.m.armitage@icloud.com> Sent: Thursday, November 16, 2017 12:11 PM To: Swartz, Kevin Subject: Short -Term Rentals in Palm Desert To the Palm Desert Mayor, Mayor Pro Tem and other members of the City Council: I am writing today to share my concerns about the possible ban on short-term vacation rentals. I grew up in Palm Desert, attended St. Theresa's school in Palm Springs and was valedictorian of Palm Desert High School. I own and have successfully rented out my family's home on a short-term basis for the last 4 years and because of the income I earned from this business, I was able to keep the home and use it while visiting the community throughout the year. We average about a 90% occupancy rate and rent the home out from 3-30 days with an average annual rental period of 6 days and the average age of our guests ranges from 25-94. We have had ALL 5 star ratings and have received no complaints from the neighbors and the police have never had to visit the property. We have amazing families and couples visit from the East Coast, other parts of California and Canada, and even a few from Great Britain and Germany. In short, I am running a solid, quality business with quality tenants who do not disturb the community, and now I am faced with the prospect of losing the business and vacation home I have worked so hard on. With all due respect I have to ask you as members of the City Council. Why do you really want to ban shore -term rentals? The reasons being floated around in the media for these rash actions can be narrowed down to two core issues. 1) short-term rentals only attract hoodlums who have loud parties and disrupt the quiet, peaceful residential community and 2) hotel and motel operators are promising very large monetary incentives to the City. So let's examine these issues in more detail. 1) Do Short -Term Rentals Disrupt the Community? Certainly I can understand not wanting to be disrupted by big parties every weekend, but aren't these parties more of an exception and not the rule. It was reported that there were 72 complaints out of 1200 vacation rentals for the year. That's not even close to even 1% of the total opportunities for an issue and it would be even less if you removed the complaints received during the Coachella and Stagecoach weeks. So aren't we overreacting just a bit and I ask you why is it that I can avoid problems with my property and other owners and operators cannot? I will tell you why. The disruption to the community resulting from short-term rentals is first and foremost an issue with how the owners and operators identify and screen the tenants. Second it is an issue with how the City is enforcing the rules and regulations and punishing the violators. If these two areas are tightened up, then there would be no need to eliminate short-term rentals. Following is what I would propose to address these two issues: • Require all owners and operators to obtain a cash deposit of a minimum of $500. Do not allow them to offer low cost insurance in lieu of a cash deposit. Why? Because the cash deposit gives the guest a vested interest in the property and helps ensure they will take care of it. It is money they will lose and people respond to that. If they can rely on insurance then they don't care because they already paid their $50-$100 for the insurance coverage and they can then feel free to be reckless. • Require all owners and operators to obtain a list of the guests and the driver's license of each guest. This lets the guest know you will come after them if they do anything wrong. 1 • Require owners and operators to check in their guests themselves or with a greeter. This immediately tells the guest you care about your property and you are nearby and watching them. • Require the lease agreement to include a list of House Rules, the violation of which will result in forfeiture of your deposit and potentially additional fines. • As part of the permitting process, keep a copy of the driver's license of each Owner and Operator on file organized by license number. If they lose their permit they will not be able to get another one because you can check to see if their license is already on file. They can circumvent this by obtaining illegal licenses or having different people sign up, but it will deter many. • Staff the City complaint hotline 24/7 and once a complaint is made the issue should be confirmed by local law enforcement and then the Owner and Operator should contacted by phone and e-mail. You need to contact the Owner and Operator immediately so they can also address the issue timely and so they can fine the tenant before they return their deposit. I have implemented all of the tenant screening ideas above and have had great tenants and no complaints. Those ideas together with improved enforcement for the occasional bad tenant that falls through the cracks should address the residential disturbances. Additionally, I can almost guarantee you that Coachella and Stagecoach rentals and many everyday short-term rentals will continue regardless of anything you do. Any time the government tries to ban something, it just creates a black market for whatever is being banned. I call it the Prohibition Effect. It's much easier to address the problem when you at least know the names and addresses of the people you are dealing with. If you lose housing options for Coachella and Stagecoach, you will also find that a lot of local residents will see an opportunity to meet the demand themselves and then you will have a bunch of inexperienced local residents trying to rent out their homes during Coachella and Stagecoach, and I can only imagine the problems that will create. 2) Are Hotel and Motel Operators Promising the City Large Incentives? If the hotels and motels are promising to pay higher taxes to the City or contribute large sums of money to various community redevelopment initiatives then this needs to be disclosed to the public. Additionally, we then need to hire financial and economic experts to evaluate the impact of eliminating short-term vacation rentals in exchange for the hotel and motel incentives. The economic impact of shutting down vacation rentals will be very significant and it doesn't appear the City is properly considering the true financial impact to the community as a whole. Following are just a handful of economic issues that will result and which require further analysis: • The reality is owners and operators cannot find tenants who will rent for 30 days or more from May - September. So if you take away the ability to rent on a short-term basis for 5 months out of the year, most of the short-term rental properties will quickly fail as the loss of income over this 5 month period will be significant enough to create heavy net operating losses and the properties will eventually have to be sold. • The sale of these short-term rental homes will have several significant impacts as follows: 1) Housing Price Decline: A higher supply of available homes for sale will lead to a sizeable decline in Palm Desert housing values. 2) Decline in Winter/Spring Tourists: The short-term rentals that do survive the loss of summer revenue will not be able to meet the demand for the monthly rentals during the October through April season. If visitors during this season can't find a house to stay in for a month are they going to go to a hotel instead? No because the cost would be prohibitive during the season and it wouldn't offer them the same size and comfort. So where will they go? They will go somewhere else like Scottsdale, AZ. 3) Decline in Summer Tourists: Short-term rentals bring in a lot of travelers and business during the hot summer months from May through September. These individuals want to enjoy the pool with family 2 and friends in a larger space which hotels cannot provide. If there are no short-term rentals they will likely head to Big Bear or Lake Arrowhead instead. 4) Decline in property related operating expenditures which provide jobs throughout the community: • Since property usage will decline so will the need for the following services • Employment of individuals to greet guests • Employment of cleaning crews to keep the house sparkling clean • Employment of on -call plumbers, electricians, HVAC technicians, and handymen to address repairs and maintenance • The initial and very extensive remodeling efforts to prepare the property for rental After careful consideration of the facts and circumstances, I am having trouble understanding why anyone thinks it makes sense to ban short-term rentals. This is not the time to make rash and emotional decisions, and I would like to applaud Councilwoman Gina Nestande for her good sense of business AND community in supporting short-term rentals. Going forward I encourage the City Council to not ban short-term rentals and instead focus on the cause of the problems rather than run away from them. By simply addressing improper tenant screening, low quality owner or operator management, and lack of proper City enforcement we can solve the problem and make everyone happy. To blame 99% of the effective owners and operators for the mistakes of 1% is very sad to see. Additionally, while we focus on the cause of the problem we should also begin a more intelligent, economic analysis of the impact of short-term vacation rentals on our great City so we will have more facts. With more facts we can make better decisions and be able to better negotiate with the hotel and motel operators in the future. I have watched the City of Palm Desert grow from a dust bowl into an exciting and prestigious city. Banning short-term vacation rentals will set us back 40 years. Thank you for your time and consideration of my concerns. Jordan Armitage 3 Swartz, Kevin From: Kristen Hicks <krisl0hicks@msn.com> Sent: Thursday, November 16, 2017 10:10 AM To: Aylaian, Lauri; Harnik, Jan; Jonathan, Sabby; Kelly, Kathleen; Weber, Susan Marie; Stendell, Ryan; Swartz, Kevin Cc: Jason F Richter Subject: [SPAM] - PLEASE PUT A STOP TO STR IN OUR NEIGHBORHOODS November 16, 2017 Dear City Council Members and Associates, I am begging you to put an end to Short Term Rental properties in the neighborhoods of Palm Desert! Thank you for all of the time and energy spent toward this cause thus far. I am aware that this is, and has been, a difficult undertaking. I am a lifelong resident of Palm Desert. I was raised in Palm Desert, attended public school here from elementary through high school in the late 70's and 80's, graduated from UC Santa Barbara and returned to Palm Desert and eventually taught 1st grade at Carter Elementary. In 1999, I moved to Manhattan Beach and taught there for 12 years. During that time, my husband (Jason Richter) and I purchased our home in Palm Desert for personal vacation use only, we DID NOT RENT IT OUT. When we decided to start a family, I wanted to move home, to Palm Desert, full-time. We fully remodeled our home here to suit our growing family's needs. We wanted a quiet, peaceful neighborhood to live in and raise our family. We had that, until the property beside us was purchased a few years ago and turned into a STR. From that moment on our lives have been filled with on -going anxiety, stress, anger, disappointment, sadness, disbelief, and hopelessness. We have contemplated selling our home and moving elsewhere in Palm Desert, but haven't because there is no guarantee that we won't run into the same problem at another location. i What is it like to raise a family next door to a STR? We never know who or what we are going to get from one day to the next. There is a constant revolving door beside us, bringing complete and total STRANGERS into what is supposed to be our family's safe place, our neighborhood. THAT stress and fear alone is maddening. We have witnessed DRUGS, PARTIES, OBSCENE BEHAVIOR, FOUL AND CRUDE LANGUAGE, SCREAMING AND YELLING, BOUNCY HOUSES, the list goes on and on. The STR property already had a pool, but upon purchase, the owners of the STR immediately installed a jacuzzi and a pool table against our property line. So the noise level quickly increases throughout the day and night as people shout above one another in the hot tub, party in the pool and rally around the pool table. We do use the complaint hotline, but it typically takes awhile to see relief from the immediate problem. And, it's only a temporary fix, new nuisances are sure to arrive when the next renters check in. It's exhausting. There is no potential for a neighborly relationship when your neighbors change from day to day. Under normal circumstances, civil and respectful relationships, even friendships, form. The Short Term Renters do not care about my family. They do not care that when they start behaving badly I have to stop playing outside with my child and take my child back inside so that my child is not exposed to their poor behavior. It sounds and feels like college "Spring Break" next door to us every time someone new checks in. I shouldn't have to police that. These people are here to party, let loose, all of the things most people do on vacation. Isn't that what all of our hotels and major resorts are for? It certainly CANNOT be what our neighborhoods are for! Please protect the quality of life of your citizens and your young families. I'm begging you! Respectfully, Kristen Hicks (& Jason Richter) 74184 Old Prospector Trail 2