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Home My WebLink AboutURG Ord 1333 - ZOA 16-364 Xtnd Moratorium - STRs Permits in R1-R2ORDINANCE NO. 1333 STAFF REPORT CITY OF PALM DESERT COMMUNITY DEVELOPMENT DEPARTMENT MEETING DATE: December 14, 2017 REQUEST: Recommendation Consideration to approve an Interim Urgency Ordinance making findings and extending a temporary moratorium on the issuance of Short -Term Rental Permits in R-1 and R-2 zones only until a subsequent ordinance becomes effective, but for a period not to exceed one year. Waive further reading and adopt Interim Urgency Ordinance No. 1333 extending the temporary moratorium on the issuance of Short -Term Rental Permits (STR) only in R-1 and R-2 until a successor ordinance takes effect, which regulates short-term rentals in R-1 and R-2 zones, but for a period not to exceed one year. Executive Summary Approval of staffs recommendation will approve an Interim Urgency Ordinance, which will extend the existing moratorium on STR permits only in the R-1 and R-2 zones and only until a new ordinance becomes effective. The current moratorium expires on January 10, 2018, three days before the anticipated effective date of Ordinance No. 1332. The extension of the existing moratorium only on new permits in the R-1 and R-2 zones will prevent a gap during which new permits in R-1 and R-2 zones could otherwise be issued. The requested extension is for the period until a successor ordinance becomes effective, but not to exceed for one year. The moratorium on permits in other zones will lapse on January 10, 2018. The extension is for a period of up to one year, in case the implementation of the new ordinance is blocked by a citizen referendum or litigation. Background On January 12, 2017, the City Council approved a 45-day Interim Urgency Ordinance on issuing new STR permits within the City of Palm Desert. The moratorium allowed existing permitted STR properties to continue operating. In addition, the moratorium contains provisions for issuing a new permit if an owner meets certain criteria and pays any back Transient Occupancy Taxes (TOT) for the period of unlicensed operations. On February 23, the City Council extended the moratorium for 10 months and 15 days (until January 10, 2018). Over the last ten months, numerous stakeholder meetings have been held, as well as a meeting before the Planning Commission and two prior meetings before the City Council. On November 16, 2017, the City Council approved the first reading of Ordinance No.1332, December 14, 2017 — Staff Report Interim Urgency Ordinance R-1 and R-2 Page 2 of 2 which provides for stricter enforcement, a continued ban on certain new STR permits in R-1 and R-2 zones, and the phasing out of certain STR permits in those zones by December 31, 2019. If the Council adopts Ordinance No. 1332 on December 14, 2017, it will become effective on January 13, 2018, three days after the expiration of the existing moratorium. Analysis Staff is requesting that the City Council authorize extending the moratorium only on the issuance of new permits within the R-1 and R-2 zones, and only until a new ordinance goes into effect in those zones. The extension could be for as long as one year, if the implementation of the new ordinance is blocked by a citizen referendum or litigation. Government Code Section 65858, allows the Council to extend the moratorium for an additional year through a public hearing and approval by a four -fifths (4/5) vote. Environmental The proposed ordinance is not subject to environmental review under the California Environmental Quality Act (CEQA) pursuant to Section 15060(c) (2). Additional information may be found in Section 2 of the attached draft Interim Urgency Ordinance. Fiscal Impact The City will continue to receive TOT on the existing STR permits, and staff will evaluate the fiscal impact of any proposed modifications prior to bringing this item back to the City Council. Prepared by: Kevin Swartz, Associate Planner LEGAL REVIEW Approved a$ to Form �1 ,- . Ho-bert W. Fta�greaves Ryan Stendell Janet Moore City Attorney Director of Community Director of Finance Development DEPT. REVIEW FINANCIAL REVIEW N/A ATTACHMENTS: 1. City Council Ordinance No. 1333 (Exhibit "A") CITY MANAGER Lauri Aylaian City Manager INTERIM URGENCY ORDINANCE NO. 1333 AN INTERIM URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, MAKING FINDINGS AND EXTENDING A TEMPORARY MORATORIUM ON THE ISSUANCE OF SHORT-TERM RENTAL PERMITS ONLY IN R-1 AND R-2 ZONES FOR UPTO AN ADDITIONAL YEAR CASE NO: ZOA 16-364 WHEREAS, the Palm Desert Municipal Code permits short-term residential rentals subject to the requirements of Palm Desert Municipal Code Chapter 5.10, which includes a requirement for a short-term rental permit, as well as operational requirements and standards; and WHEREAS, in recent years, steadily increasing short-term rentals within the City have generated significant public nuisance complaints associated with properties used as short-term residential rentals, particularly in the R-1 and R-2 zones, notwithstanding that the City has maintained a rigorous short -term -rental enforcement program ; and WHEREAS, other communities in the Coachella Valley have experienced significant public nuisance complaints as the density and frequency of short term rentals has grown and have recently taken actions to ban or curtail short term rentals; and WHEREAS, based on the concern that the density and frequency of short-term rentals in Palm Desert would increase in response to limitations imposed elsewhere, which might result in unwanted changes in the character of residential neighborhoods within the City, on January 12, 2017, the City Council adopted Interim Urgency Ordinance No. 1316 finding that issuing additional short-term rental permits, prior to the City's completion of a study of the potential impact of such short-term residential rentals, would pose a current and immediate threat to the public health, safety, and welfare, and imposing a 45-day temporary moratorium on the issuance of such permits; and WHEREAS, on February 23, 2017, the City Council extended the moratorium an additional 10 months and 15 days (until January 10, 2018) to allow the City to complete studies regarding short-term rentals and prepare proposed updates to the City's Municipal Code. WHEREAS, the City studied the issues related to short-term rentals, and prepared and submitted a report describing the measurers taken to date to alleviate the conditions which led to the adoption of Interim Urgency Ordinance No. 1316, ; and WHEREAS, at successive meetings on October 26, November 16 and December 14, 2017, the city council heard public testimony and considered changes to the Municipal Code to address impacts on residential neighborhoods; WHEREAS, on December 14, 2017, the City Council adopted Ordinance No.1332, which, when effective on January 13, 2018, provides for increased enforcement and eliminates certain new short term rental permits in R-1 and R-2 zones and eliminates certain INTERIM URGENCY ORDINANCE NO. 1333 existing short term rentals as of December 31, 2019, subject to extensions in specified circumstances; WHEREAS, the current moratorium will expire January 10, 2018, before Ordinance No. 1332 will become effective; and WHEREAS, Government Code Section 65858(a) allows the City Council to extend an interim moratorium ordinance based on immediate threats to public health, safety, and welfare; and WHEREAS, as a result, the City Council desires to extend the current moratorium until such time as successor Ordinance becomes effective that regulates short term rentals in R-1 and R-2 zones, for a period not to exceed on year. This moratorium extension will only apply to the issuance of new short term rental permits in the R-1 and R-2 zones. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DOES ORDAIN AS FOLLOWS: SECTION 1. Extension of Moratorium and Findings. A. In accordance with the authority granted to the City of Palm Desert under Government Code Section 65858, from and after the date of this Ordinance, no new short- term rental permits shall be approved or issued for a short-term residential rental only in R-1 and R-2 zones until such time as a successor Ordinance becomes effective that regulates short term rentals in R-1 and R-2 zones, for a period not to exceed one year, except as provided below: (1) annual renewals of existing permits shall be permitted under Section 5.10.050(B); B. This Ordinance is an interim urgency ordinance adopted pursuant to the authority granted to the City of Palm Desert by Government Code Section 65858, and is for the immediate preservation of the public health, safety, and welfare. The facts constituting the urgency are: (1) as density and frequency of short-term rentals have grown, neighboring cities in the Coachella Valley have received an increasing number of public nuisance complaints emanating from those short-term residential rentals and have recently taken actions to ban or limit short-term rentals; (2) excessive density and frequency of short-term rentals threaten the character of existing residential neighborhoods, particularly in R-1 and R-2 zones; (3) the density and frequency of short-term rentals within the City has gradually grown over the last several years; recent limits placed elsewhere in the Coachella Valley may cause a significant increase in applications for short-term rental permits in the City; 2 C:\Users\rstendellWppData\Local\Microsoft\Windows\Temporary Internet Files \Content.Outlook\MFHVJO83\Intenm Urgency Ordinance re Short -Term Rentals Second Extension.doc INTERIM URGENCY ORDINANCE NO. 1333 (4) the City needs more time to implement the necessary regulatory requirements to ensure that short-term rentals do fundamentally alter the character of existing residential neighborhoods. C. This moratorium shall not apply to existing short-term rental permits. D. The City finds and declares that this moratorium is a reasonable and necessary measure designed to protect the important public purpose of the preservation of the public health, safety, and welfare. SECTION 2. Compliance with California Environmental Quality Act. The City Council finds that this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly; it prevents changes in the environment pending the completion of the contemplated study of impacts. SECTION 3. Severabilitv. If any sentence, clause, or phrase of this Ordinance, or any part thereof is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each sentence, clause, or phrase thereof, irrespective of the fact that any one or more sentence, clause, or phrase be declared unconstitutional. SECTION 4. Effective Date. This Ordinance shall become effective immediately upon adoption if adopted by at a least four -fifths (4/5) vote of the City Council and shall be in effect until a successor Ordinance becomes effective that regulates short term rentals in R-1 and R-2 zones, but not longer than January 10, 2019. SECTION 5. Notice of Adoption. The City Clerk shall certify to the adoption of this Ordinance and cause it, or a summary of it, to be published once in a newspaper of general circulation printed and published within the City of Palm Desert. 3 C.\UsersystendellWppData\Local \ Microsoft \Windows\Temporary Internet Files \Content.Outlook\MFHVJO83\Intenm Urgency Ordinance re Short -Tenn Rentals Second Extension.doc INTERIM URGENCY ORDINANCE NO. 1333 PASSED, APPROVED and ADOPTED this 14thday of December, 2017, by the City Council of the City of Palm Desert, California, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: JAN HARNIK, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE )ss. CITY OF PALM DESERT ) CERTIFICATION FOR INTERIM URGENCY ORDINANCE NO. I, Rachelle D. Klassen, City Clerk for the City of Palm Desert, California, DO HEREBY CERTIFY that Interim Urgency Ordinance No. , the reading in full thereof unanimously waived, was duly passed and adopted at a regular meeting of the City Council held on the 14th day of December 2017, and said Ordinance was passed and adopted by the following stated vote, to wit: AYES: NOES: ABSENT: ABSTAIN: and was thereafter on said day signed by the Mayor of the City of Palm Desert. ATTEST: APPROVED AS TO FORM: RACHELLE D. KLASSEN, CITY CLERK ROBERT W. HARGREAVES CITY OF PALM DESERT, CALIFORNIA CITY ATTORNEY 4 C \Users\rstendelhAppData\ Local \Microsoft\Windows\Temporary Internet Files \Content.Outlook\MFHVJO83\Intenm Urgency Ordinance re Short -Terre Rentals Second Extension.doc INTERIM URGENCY ORDINANCE NO. 1333 5 C \Users\rstendell'AppData\Local\Microsoft\Windows\Temporary Internet Files \Content.Outlook\MFHVJO83\Interim Urgency Ordinance re Short -Tenn Rentals Second Extension.doc