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HomeMy WebLinkAboutC. Case No. ZOA 10-68 - City of Palm Desert Short-Term Rentals CITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT PLANNING COMMISSION STAFF REPORT REQUEST: CONSIDER A ZONING ORDINANCE AMENDMENT TO CHAPTER 25.56, GENERAL PROVISIONS, ADDING SECTION 25.56.530- PROHIBITION ON SHORT-TERM RENTALS IN RESIDENTIAL ZONES: "EXCEPT FOR HOTELS, MOTELS, AND/OR A BED AND BREAKFAST AS ALLOWED PER THE ZONING ORDINANCE, SHORT-TERM RENTALS FOR LESS THAN 30-DAY PERIODS SHALL BE PROHIBITED IN ALL RESIDENTIAL ZONES, UNLESS THE PROPERTY IS LOCATED IN A GATED COMMUNITY." SUBMITTED BY: Tony Bagato, Principal Planner APPLICANT: City of Palm Desert CASE NO: ZOA 10-68 DATE: April 6, 2010 CONTENTS: Draft Resolution Exhibit A, Section 25.56.530 Legal Notice City Council Minutes, dated January 25, 2009 Planning Commission Staff Report, dated January 19, 2010 Planning Commission Minutes, dated January 19, 2010 Palm Springs Municipal Code Chapter 5.25 Vacation Rentals Public Comment Letters Received Maps Recommendation That the Planning Commission continuing ZOA 10-68 to a date uncertain and directing staff to prepare a revised ordinance that will allow vacation short-term rentals with restrictions and regulations for all residential properties. Executive Summary On January 19th, 2010, the Planning Commission directed staff to study the impacts to prohibiting short-term rentals in single-family neighborhoods zoned Planned Residential Staff Report ZOA 10-68 April 6, 2010 Page 2 of 5 (PR) and R-1. Based on the study, staff began the process of a zoning ordinance amendment to add a new section, 25.56.530, which would prohibit short-term rentals in all residential zones with an exception for hotels, motels, bed and breakfasts, and/or properties in gated communities. Since giving public notice of the proposed ordinance revision, staff has received many comments from property owners who are opposed to the concept of prohibiting outright short term rentals outside of gated communities. Consequently, staff has researched other ways to regulate short-term rentals that might address the concerns expressed by Planning Commission members, yet allow for some short term rental of private residences. The City of Palm Springs has an ordinance addressing vacation rentals that applies to all residential properties and provides regulations dealing with the potential negative impacts associated from short-term rentals. If the Planning Commission believes that short-term rentals should not be allowed in non-gated communities, the proposed zoning ordinance amendment can be recommended to City Council for approval. However, if the Planning Commission believes that short-term rentals can be compatible with proper regulations that apply to all residential properties, then this case should be continued to allow staff time to prepare an ordinance similar to the Palm Springs Vacation Rentals ordinance. Background On January 19th, 2010, staff requested direction from the Planning Commission on how to deal with short-term rentals in the R-1 zone because both the Planning Commission and City Council stated that short-term rentals are not compatible with single-family zones. After the discussion, Commissioner Tanner requested staff to do a study of the Planned Residential (PR) gated communities and the R-1 gated communities; in addition, Commissioner Schmidt asked for a possible ordinance. After the Planning Commission meeting, staff researched and identified all gated communities zoned PR or R-1 (see Gated Communities Map). Based on the research, there are five communities that are gated and zoned R-1. These communities are: • Regency Estates, located on the south side of Country Club Drive, • Whitehawk, located on the north side of Country Club Drive, • Tucson, located on the west side of Washington Street, • Cypress Estates, located on the east side of Portola, and • Crosby Estate Lots, within Ironwood Country Club. During the research of the gated communities, staff also found non-gated communities zoned R-1 with golf courses, and non-gated single-family neighborhoods zoned PR (see R-1 Gated, PR Non-Gated Study map). This study indicates that trying to link the prohibition of short-term rentals to one zone is difficult because there are gated G:\Planning\Tony Bagato\Word Files\Formats\Staff Reports\ZOA\10-68 Short-Term Rentals\4-6 Short Term Rentals Staff Report Planning Commission.doc Staff Report ZOA 10-68 April 6, 2010 Page 3 of 5 communities in the R-1 zone and there are non-gated communities zoned PR, and two non-gated golf courses communities zoned R-1. Given the difficulty of prohibiting short-term rentals in one particular zone, staff has prepared a zoning ordinance amendment that may be added to the Section 25.56, General Provisions. The proposed section will read: Section 25.56.530-Prohibition on Short-Term Rentals in Residential Zones: "EXCEPT FOR HOTELS, MOTELS, AND/OR A BED AND BREAKFAST AS ALLOWED PER THE ZONING ORDINANCE, SHORT-TERM RENTALS FOR LESS THAN 30-DAY PERIODS SHALL BE PROHIBITED IN ALL RESIDENTIAL ZONES, UNLESS THE PROPERTY IS LOCATED IN A GATED COMMUNITY." This amendment can be added to the General Provision section of the Zoning Ordinance to prohibit short-term rentals of single-family homes in non-gated communities. A mailing notice was sent to all property owners who have been paying Transient Occupancy Tax (TOT) for short-term rentals over the past two years, and published in the Desert Sun on March 27, 2010. At the time of writing the report, staff has received eight letters and had spoken with 13 individuals who use their property as a short-term rental and individuals from property management companies. All of these individuals opposed the proposed zoning ordinance revision for the following reasons: • Negative impact on their ability to afford the home, leading to more foreclosures. • Negative impact to local economy and businesses because of less rental options for many tourists that chose not to stay in hotels or motels. • Unfair discrimination because of the restriction only being applied to non- gated communities. • If the current vacation rentals were enforced, the city would collect approximately $300,000 or more in Transient Occupancy Tax. • The property is a second home that is not lived in all the time and the short-term rentals supplement their income. The letters and discussion staff has had with the public addresses other issues as well. The ones identified above are the main points staff received from a majority of the property owners and property managers dealing with short-term rentals. G:\Planning\Tony Bagato\Word Files\Formats\Staff Reports\ZOA\10-68 Short-Term Rentals\4-6 Short Term Rentals Staff Report Planning Commission.doc Staff Report ZOA 10-68 April 6, 2010 Page 4 of 5 Discussion: The City of Palm Desert is unique in that it is both a resort community and permanent residential community for retired individuals and young families. As a resort community, many property owners have used single-family homes, condominiums and apartments as short-term rentals for vacation seekers. Historically, the majority of these properties have been in gated communities and country clubs where there is a great appeal to tourists. After the discussion on January 19, 2010, staff began researching how to deal with prohibiting short-term rentals in non-gated communities and drafted the proposed zoning ordinance amendment. The direction staff was taking was to prohibit them outright, since both the Planning Commission and City Council stated they were not compatible with single-family neighborhoods. However, the comments received from the public input led staff to research other possible regulations to control short-term rentals and make them more compatible with single-family neighborhoods. Based on the comments received, staff researched other local cities and found that the City of Palm Springs has an ordinance regulating vacation rentals. The ordinance requires registration of vacation rentals, with registration requirements and standard conditions related to the health and safety code, maximum number of people allowed for both overnight and daytime occupancy, noise issues related to music, and compliance with any private CC&Rs that may be applicable to a property. The ordinance also addresses how the city handles audits and violations related to vacation rentals. Staff has attached a copy of this ordinance and is recommending that the Planning Commission consider a similar ordinance for Palm Desert. After researching this ordinance, reviewing the difficulties of trying to prohibit short-term rentals in non-gated communities, and listening to the comments from the potentially impacted property owners, staff is recommending that the Planning Commission direct staff to prepare a vacation rental ordinance similar to Palm Springs. In addition, staff is concerned about adopting a citywide ordinance that would impact all non-gated communities when there have been complaints related to only four properties over the past 10 years related to short-term rentals. Short-term rentals are important to a resort community because they provide flexibility for visitors. According to the statistics in a 2007-2008 Visitor Profile Study done by Palm Springs Desert Resort Communities Convention & Visitor Authority, a typical overnight and day visitor spend $178 per day on lodging, dining, shopping and recreational activities. Staff believes that with the proper regulations and enforcement, short-term rentals in single-family neighborhoods may be compatible. Adopting an ordinance similar to the City of Palm Springs would provide for proper usage of short-term rentals. However, if the Planning Commission continues to believe that short-term rentals should be prohibited from non-gated communities as staff initially discussed, the currently G:\Planning\Tony Bagato\Word Files\Formats\Staff Reports\ZOA\10-68 Short-Term Rentals\4-6 Short Term Rentals Staff Report Planning Commission.doc Staff Report ZOA 10-68 April 6, 2010 Page 5 of 5 proposed zoning ordinance amendment can be approved and recommended to City Council for consideration. Environmental Review For the purpose of CEQA, there are no environmental impacts related to rental or leasing options of residential properties. Submitted by: Department Head: Tony Bagato Lauri Aylaian Principal Planner Director of Community Development G:\Planning\Tony Bagato\Word Files\Formats\Staff Reports\ZOA\10-68 Short-Term Rentals\4-6 Short Term Rentals Staff Report Planning Commission.doc PLANNING COMMISSION RESOLUTION NO. A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, RECOMMENDING TO CITY COUNCIL APPROVAL OF A ZONING ORDINANCE AMENDMENT TO CHAPTER 25.56, GENERAL PROVISIONS, ADDING SECTION 25.56.530- PROHIBITION ON SHORT-TERM RENTALS IN RESIDENTIAL ZONES: "EXCEPT FOR HOTELS, MOTELS, AND/OR A BED AND BREAKFAST AS ALLOWED PER THE ZONING ORDINANCE, SHORT-TERM RENTALS FOR LESS THAN 30-DAY PERIODS SHALL BE PROHIBITED IN ALL RESIDENTIAL ZONES, UNLESS THE PROPERTY IS LOCATED IN A GATED COMMUNITY." CASE NO. ZOA 10-68 WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 6th day of April 2010, hold a duly noticed public hearing to consider the request by the CITY OF PALM DESERT for approval of the above noted; and WHEREAS, said application has complied with the requirements of the "City of Palm Desert Procedure for Implementation of the California Environmental Quality Act", Resolution No. 06-78, the Director of Community Development has determined that the project is Class 5 Categorical Exemption under CEQA and no further environmental review is necessary, and WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, said Planning Commission did find the following facts and reasons to exist to justify approval to the City Council of said request: 1 . That short-term rentals are not compatible with single-family neighborhoods and the proposed zoning ordinance amendment will prohibit them from non-gated communities to protect neighborhoods from conflicting land uses. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of Palm Desert, California, as follows: 1. That the above recitations are true and correct and constitute the findings of the Planning Commission in this case. 2. That the Planning Commission does hereby recommend approval of ZOA 10-68, Exhibit A attached. PLANNING COMMISSION RESOLUTION NO. PASSED, APPROVED AND ADOPTED at a regular meeting of the Palm Desert Planning Commission, held on this 6th day of April 2010, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: M. CONNOR LIMONT, Chairperson ATTEST: LAURI AYLAIAN, Secretary Palm Desert Planning Commission G:\Planning\Tony Bagato\Word Files\Formats\Stab Reports\ZOA\10-66 Short-Term Rentals\PC Resolution.doc PLANNING COMMISSION RESOLUTION NO. EXHIBIT "A" 25.56.530-Prohibition on Short-Term Rentals in Residential Zones: "Except for hotels, motels, and/or a bed and breakfast as allowed per the Zoning Ordinance, short-term rentals for less than 30-day periods shall be prohibited in all residential zones, unless the property is located in a gated community." G:\Planning\Tony Bagato\Word Files\Formats\Staff Reports\ZOA\10-68 Short-Term Rentals\PC Resolution.doc • I I Y Fi i! LL i 10' 73 510 I RI n ':1RIS[ I)Rn l PAI NI I)I.slRI,( AIIII)Ry11 92260 27,7H TEL:760 346-0611 i ti I.AV 760 341-7098 ut` i01rr'palm-des. ug rt. CITY OF PALM DESERT LEGAL NOTICE CASE NO. ZOA 10-68 NOTICE OF INTENT TO ADOPT A ZONING ORDINANCE AMENDMENT TO CHAPTER 25.56 GENERAL PROVISIONS, BY ADDING SECTION 25.56.530 PROHIBITION ON SHORT-TERM RENTALS IN RESIDENTIAL ZONES: "EXCEPT FOR HOTELS, MOTELS, AND/OR A BED AND BREAKFAST AS ALLOWED PER THE ZONING ORDINANCE, SHORT- TERM RENTALS FOR LESS THAN 30 DAY PERIODS SHALL BE PROHIBITED IN ALL RESIDENTIAL ZONES, UNLESS THE PROPERTY IS LOCATED IN A GATED COMMUNITY." PROJECT DESCRIPTION: The City of Palm Desert is requesting the adoption of a Zoning Ordinance Amendment adding Section 25.56.530 - Prohibition on Short-term Rentals in Residential Zones. The proposed ordinance is in response to the Planning Commission and City Council direction that short-term rentals are not compatible with single-family neighborhoods. Properties within a gated community will not be subject to the new ordinance. According to the City of Palm Desert Finance Department, an Occupational License was issued for your address and this new ordinance would no longer allow this property to be used for short-term rentals. PROJECT LOCATION: All Residential Zones within the City of Palm Desert. PUBLIC HEARING: Said public hearing will be held before the City of Palm Desert Planning Commission on Tuesday, April 6, 2010 at 6:00 p.m. in the Council Chamber at the Palm Desert Civic Center, 73-510 Fred Waring Drive, Palm Desert, California, at which time and place all interested persons are invited to attend and be heard. Written comments concerning all items covered by this public hearing notice shall be accepted up to the date of the hearing. Information concerning the proposed project and/or negative declaration is available for review in the Department of Community Development at the above address between the hours of 8:00 a.m. and 5:00 p.m. Monday through Friday. If you challenge the proposed actions in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Planning Commission at, or prior to, the public hearing. PUBLISH: Desert Sun Lauri Aylaian, Secretary March 27, 2010 Palm Desert Planning Commission MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 25, 2009 XV. CONTINUED BUSINESS A. REQUEST FOR APPROVAL OF THE DEVELOPMENT OF AN "ARTIST SHOWCASE" CONCERT SERIES IN CIVIC CENTER PARK (Continued from the meetings of May 21 and June 11, 2009). Councilman Ferguson moved to, by Minute Motion, withdraw this request from the agenda. Motion was seconded by Finerty and carried by a 4-0 vote, with Kelly ABSENT. XVI. OLD BUSINESS None XVII. PUBLIC HEARINGS A. CONSIDERATION OF AN APPEAL OF A PLANNING COMMISSION DECISION, DENYING A CONDITIONAL USE PERMIT(CUP)TO OPERATE A SHORT-TERM RENTAL IN AN R-1 SINGLE-FAMILY ZONE LOCATED AT 77-040 UTAH CIRCLE Case No. CUP 09-180 (Lisa Theodoratus, Applicant/Appellant). Principal Planner Tony Bagato stated this request was before the Planning Commission where the Applicant requested a Conditional Use Permit(CUP) for a short-term rental, which is the ability to rent the home for less than 30-days periods. He displayed the vicinity map to show the home location in Palm Desert Country Club off Utah Circle. The homeowner had been operating as a short-term rental for the past two years, and it came to the City and Fire Department's attention when there was a noise complaint filed in July of 2008. The Police Department has verified there have been no further complaints since that time. He said staff added conditions to the proposal that no parties would be allowed. When the property owner was out of town, she had a local real estate person/rental agency to oversee her property. Staff felt that with the conditions proposed, which were compatible with the neighborhood, staff would recommend the City Council reverse the Planning Commission's decision. Responding to question, he confirmed the house was on a cul-de-sac and the Planning Commission voted to deny the request on a 4-1 vote. Further responding, he confirmed the City's policy is 30 days or more. Mayor Pro Tern Finerty asked if staff was recommending that the Council vote against it's own policy. Mr. Bagato explained that because the property was in the R-1 Zone, staff had no way to address short-term rentals in the past. The City required a CUP, in the R-1 Zone only, to be able to rent. In the past, the Planning 15 • MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 25, 2009 Commission approved the ones that were not problematic. However, the ones that had a proven history of party homes like the one in Ironwood and Joshua Tree were denied. He said short-term rentals are allowed under a CUP, as long as they can be compatible with the neighborhood. Mayor Spiegel declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. MS. LISA THEODORATUS, Applicant, stated that Palm Desert was a residential and vacation resort community, and as such, it had a tremendous amount of tourist coming from all over the world,which brought the City much needed tax dollars. She asked the Council to recognize the potential of the Transient Occupancy Tax (T.O.T.) revenues for the City by making it easier for homeowners to rent responsibly on a short-term basis and approve her request for a CUP. A home of her size would probably bring in an additional $2,000 to $3,000 a month in T.O.T. revenues. In the past she had been doing long-term rentals, but due to the economy, it was no longer feasible for her occupants. Her usual occupants are one couple and most often from Canada. This situation has put her in a severe bind, because she has not been able to rent her home. She was running into a huge dilemma by having to refer people to other homeowners who are renting their house anyway without being required to pay the tax for the CUP. She said there was one complaint filed last year, but no one but her was at the house for a two-month period. The complaint was done by a reporting party with very little information on it. She always tries to be extremely responsible as noted in a letter by one of her neighbors who lived two doors down. She even has provisions in her contract that if there was any noise or party, that the renter would be evicted immediately. Mayor Pro Tem Finerty asked the Applicant why she didn't rent out the unit full-time since she lived in San Rafael, California. MS. THEODORATUS replied she lived in San Rafael and started renting out several years ago when the economy was turning. She is a small business owner who was able to afford her home on Utah Circle as a vacation residence without having to rent it. However, she was now in a position where she needed extra revenue from that house during the time she was not utilizing it. MS. CAROLE BENFORD stated she lived on Tennessee Avenue,which was not far from the subject home. She personally didn't know of any problems there, but there are a number of houses that are available for rent in the area and a number of absentee owners that might want to rent. She would be concerned that a CUP was granted every time someone had a financial difficulty, because she could lose the residential bedroom community. 16 • MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 25, 2009 MS. MARIE SCHMIDT stated she was a member of the Palm Desert Planning Commission and noted the Commission deliberated on this extensively and arrived to the conclusion that it was establishing a somewhat dangerous precedent in a residential area knowing full well that there are short-term rentals in and about the area that are not permitted. It seemed dangerous to the Commission to extend a CUP that ran with the property and not with the present owner. It was somewhat surprising to her that staff would recommend reversing the Planning Commission's decision,which she thought was not a good idea. She hoped the Council would uphold the Planning Commission's decision. With no further testimony offered, Mayor Spiegel declared the public hearing closed. Mayor Pro Tern Finerty said she felt the integrity of the residential neighborhoods needed to be preserved, and short-term leases were not compatible with keeping them that way. Residential neighborhoods are not meant to be hotels or timeshare, and in a sense, that's exactly what Council would be allowing, which was a slippery slope. She too was surprised that staff recommended overturning the Planning Commission decision when it was a 4-1 vote. Mayor Pro Tern Finerty moved to, by Minute Motion, direct staff to prepare a Resolution of Denial for presentation at the next City Council Meeting. Councilmember Benson agreed with Mayor Pro Tern Finerty, stating she sympathized with those affected by the economic downturn but everyone was affected. The City couldn't solve everyone's woes because they couldn't make their house payment that they shouldn't have owned in the first place, which was not the City's problem. She said if the Council allowed it in this neighborhood, Palm Desert County Club, pretty soon it will spring up in other places. The City had a bunch of rentals and second homes that the City will eventually catch up to. Many modified their homes, and they are probably sitting on pins and needles wondering when the City will get to them. She said there was a lot the Council didn't know, and to go ahead and approve this request would only encourage more to rent out their homes on a short-term basis. She said short/term rentals destroyed neighborhoods. She said the City had plenty of hotels and not all were expensive anymore. Councilmember Benson seconded the motion. Mayor Pro Tern Finerty stated that in these issues, it would be a good idea for staff, especially in a 4-1 vote, to provide the Council with an option for denial, instead of assuming the Council will go along with staff's recommendation. 17 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 25, 2009 Mayor Pro Tern Spiegel had the same concern as Councilmember Benson that a lot of homes were being rented on a two-, three-day, two-, three-week basis without permission, and he didn't know how to put a stop to it. Mayor Spiegel called for the vote, and the motion carried on a 3-0 vote, with Ferguson and Kelly ABSENT. B. REQUEST FOR APPROVAL OF A ZONING ORDINANCE AMENDMENT UPDATING AND REVISING PALM DESERT MUNICIPAL CODE SECTION 25.68 - SIGNS Case No. ZOA 09-104 (City of Palm Desert, Applicant). Principal Planner Tony Bagato stated the request was for approval to update the Sign Ordinance, Chapter 25.68. Some of the reasons for the update were that the Ordinance was originally adopted in 1975, and there have been piecemeal updates since then, which led to an inconsistent document of the Palm Desert Municipal Code. In 2007, a Signage Subcommittee comprised of staff and business community members was formed to address the outdated standards. The Committee addressed some of the wording that was lengthy and unclear. Real estate signs were the first issue that came up in 2007 from the business community, because the standards were outdated and too restrictive. Staff also had problems with signs facing the freeway. He said from a real estate standpoint, the issue was that many of the commercial Realtors were held to twelve-square feet if the building had more than 200 lineal feet of frontage. However, the smaller buildings on Fred Waring were held to a three-square foot sign. Mr. Dick Baxley spoke on behalf of many commercial Realtors in front of City Council, and he stated that the current standards were outdated and too restrictive. The subcommittee went out and looked at some of the signs that were causing staff concern, like the ones that were showing up much larger, and also the ones with "riders," which are the add-on pop outs outside of the sign area. He said this type of sign intends to draw attention to the site. He displayed a few samples with up to three "riders" for Council to view, stating that due to the downturn in the economy many more signs were appearing, which was creating clutter. The Subcommittee came up with a standard of a one two-sided sign per frontage, which was the same today. However, the Subcommittee was looking at increasing the size from a three-square foot to a maximum of a six-square foot sign, no matter how much of a frontage there was in front of the building. He said the maximum was six-square feet, which was the same standard today. He said no riders would be allowed outside the 16-square foot radius, and a "rider" could still be used, but it had to be within the main square and not be sticking out. He said signs could not be illuminated, which was the same standard today. Freeway signs came up when the City reviewed an Architectural Review case where a multi tenant business owner asked for his sign to be located higher in the building for advertising. The ARC denied that request and instead recommended that 18 CITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT PLANNING COMMISSION STAFF REPORT REQUEST: DIRECTION REGARDING SHORT-TERM RENTALS IN THE R-1 ZONE. SUBMITTED BY: Tony Bagato, Principal Planner DATE: January 19, 2010 Recommendation Direct staff to either prepare a Zoning Ordinance Amendment prohibiting short- term rentals in the R-1 zone, or to continue to allow them as a Conditional Use and approve them on a case-by-case basis. Executive Summary Currently the R-1 zone allows a single-family home to be rented or leased for periods less than 30 days with a Conditional Use Permit (CUP). On May 19, 2009, the Planning Commission, on a 4-1 vote, denied a CUP application by a homeowner on Utah Circle to operate her second home as a short-term rental in an R-1 zone. The majority of the Commissioners believed short-term rentals are not compatible with single-family neighborhoods. The applicant appealed the decision, and the City Council denied the appeal, upholding the denial by the Planning Commission. Staff is currently aware of at least nine homeowners within the R-1 zone who are renting or leasing homes for less than 30 days without CUPs. Before staff contacts any of the homeowners operating short-term rentals, staff is requesting direction from the Planning Commission to either prohibit them in the R-1 zone or to continue to review each one on a case-by-case basis, potentially approving them with conditions and restrictions. Background 1. Conditional Use Permits (In General): A Conditional Use Permit (CUP) allows a local government the ability to permit a range of land uses required for a community to function and to provide flexibility to land use owners, while maintaining control over individual properties. Since each individual property has certain characteristics, conditional uses require Staff Report Short-term Rental Discussion January 19, 2010 Page 2 of 4 special consideration to make sure that they are properly located while meeting the objectives of the Zoning Ordinance. In order to achieve this purpose, the Planning Commission has the authority to approve or deny applications for CUPs for any conditional use prescribed in each zoning district. A Conditional Use Permit is approved with conditions to make a certain use more compatible with the surrounding land uses within the zone it is located. As an example, the following uses may be permitted win the R-1 zone with a CUP: A. Boardinghouses and rooming houses; B. Churches, convents, monasteries and other religious institutions; C. Day nurseries and nursery schools; D. Fire stations; E. Private recreational facilities such as country clubs, tennis and swim clubs, golf courses, with incidental, limited commercial uses which are commonly associated and directly related to the primary use; F. Private schools and colleges, not including art, business, or trade schools or colleges; G. Public educational institutions; H. Public utility and public service facilities; Commercial parking lots when directly adjacent to the C-1 general commercial zone and consistent with recommendations of an adopted specific plan; J. Professional office parking lots when directly adjacent to the O.P. office professional zone and consistent with the recommendations of an adopted specific plan. K. Rental or leasing of a single-family dwelling for periods of less than thirty days. 2. Short-term Rentals (less than 30 days): As a resort community, there are many second homes within Palm Desert and some are rented out on a short term basis to vacationers for periods ranging from a single weekend to several months. The vast majority of these rental homes are located in Planned Residential (PR) zoned gated communities and country clubs. These communities are regulated through private CC&Rs that typically control and manage these vacation rentals. Vacation rentals in these communities have not generated any complaints. In 2000, planning staff began to receive complaints about a few homes located in the R-1 zone being rented as vacation rentals. At that time, the Zoning G:\Planning\Tony Bagato\Word Files\Formats\Staff Reports\MISC\Short Term Rentals\Short Term Rentals Staff Report Planning Commission.doc Staff Report Short-term Rental Discussion January 19, 2010 Page 3 of 4 Ordinance did not specifically restrict the permitted occupancy length of a rental in the R-1 zone. Since homes located in the R-1 zone are not located within gated communities or country clubs, staff was concerned about the land use compatibility of a short-term rental in an R-1 zone. On September 14, 2000, the City Council approved a zoning ordinance amendment allowing short-term rentals upon approval of a Conditional Use Permit following a noticed public hearing by the Planning Commission. Since the ordinance was enacted, staff has processed five applications for short-term rentals in the R-1 zone. Two of the five have been approved, while three have been denied. Staff typically becomes aware of a home being operated as a short-term rental by a complaint from an adjacent resident. Similar to hotels or motels, single-family homes rented for less than 30 day periods located in any residential zone are required to pay the City a Transient Occupancy Tax (TOT). This tax is nine percent (9%) of the rent charged by the operator, paid to the City and used in the general fund. According to the City's Finance Department, the current amount of money being provided to the General Fund from short-term rentals is about $2,800 annually.. Discussion: On May 19, 2009, the Planning Commission, on a 4-1 vote, denied a CUP application by a homeowner on Utah Circle to operate her second home as a short-term rental in an R-1 zone. The majority of the Commissioners expressed the opinion that short-term rentals are not compatible with single-family neighborhoods. The applicant appealed the decision, and the City Council denied the appeal, upholding the denial by the Planning Commission. Since 2000, only two out of five CUP applications for short-term rentals have been approved by the Planning Commission. Staff has become aware of at least nine properties within the R-1 zone that are being operated as short-term rentals without a CUP. Based on the most recent denial on Utah Circle, staff is requesting direction from the Planning Commission on whether or not to continue to allow short term rentals as a conditional use or to process a zoning ordinance amendment prohibiting them from the R-1 zone. Prohibiting short-term rentals within the R-1 zone will not significantly impact the City's General Fund since the amount of revenue currently provided annually is about $2800. Since many homes within gated communities or country clubs are regulated through private CC&Rs, staff is not proposing the prohibition within the Planned Residential zone. G:\Planning\Tony Bagato\Word Files\Formats\Staff Reports\MISC\Short Term Rentals\Short Term Rentals Staff Report Planning Commission.doc I Staff Report Short-term Rental Discussion January 19, 2010 Page 4 of 4 Environmental Review This staff report is currently for discussion purposes and therefore requires no further environmental analysis at this time. Submitted by: Department Head: Tony Ba to Lauri Aylaian Principal Planner Director of Community Development G:\Planning\Tony Bagato\Word Files\Formats\Staff Reports\MISC\Short Term Rentals\Short Term Rentals Staff Report Planning Commission.doc MINUTES PALM DESERT PLANNING COMMISSION JANUARY 19, 2010 suite located at 72-855 Fred Waring Drive. Business Owner: Lawrence M. Andrews; Property Owner: Haven Management. Mr. Swartz reviewed the staff report and recommended approval of the findings and adoption of the resolution to revoke Conditional Use Permit 08-433. Commissioner Schmidt asked if the business was closed at this point. Mr. Swartz said yes. Chairperson Tanner opened the public hearing and asked if anyone wished to speak in FAVOR of or in OPPOSITION to the proposed revocation. There was no response. Chairperson Tanner closed the public hearing and asked Commission for their comments. Action: It was moved by Commissioner Campbell, seconded by Commissioner DeLuna, approving the findings and recommendation as presented by staff. Motion carried 5-0. It was moved by Commissioner Campbell, seconded by Commissioner DeLuna, adopting Planning Commission Resolution No. 2517, revoking Case No. CUP 08-433. Motion carried 5-0. IX. MISCELLANEOUS A. Request for direction regarding short-term rentals in the R-1 zone. Principal Planner Tony Bagato explained that was a discussion on short- term rentals. Recently there was an application for one on Utah Circle that was denied. That denial was then appealed to the City Council. The City Council upheld the decision of the Planning Commission denying the conditional use permit application. The discussion was being brought forth because there are some short-term rental properties currently operating without conditional use permits and staff was going to go and require them to file for a conditional use permit. As he listed in the staff report, he said he gave a brief explanation of what a conditional use permit is; it allows for a flexibility of uses in different zones. Currently in the R-1 zone, Section K allows an applicant to do a short-term rental. This ordinance was enacted in 2000 because we found that a lot of times they are done in country clubs and those hadn't been a problem because they are regulated through CC&R's and a lot of homeowner associations have management companies that actually manage them, so they weren't having any 7 MINUTES PALM DESERT PLANNING COMMISSION JANUARY 19, 2010 problems with those homes. Around 2000, we started getting complaints in R-1 zones being operated on a short-term basis and even sometimes as party homes for spring break and things like that. This ordinance was done at the time to just require a conditional use permit because they thought that there could be some cases where it was compatible with conditions and certain restrictions. He went back through since the ordinance has been in place and found they've only processed about five applications and two out of the five were approved. That showed that two-thirds of the time it's been acceptable and the other times it has been more problematic homes. The decision by the Planning Commission was based on the majority because it was believed that this wasn't compatible in the single family zone and City Council agreed. Staff was therefore requesting direction before bringing forth any new applications whether or not they should consider a zoning ordinance amendment that would basically prohibit short-term rentals. From the TOT side (transient occupancy tax) they receive on short-term rentals, it is only a little over $2,000, so if they did prohibit it, it wasn't an impact on the City budget. Staff believed that if they wanted to process a zoning ordinance amendment, it would be acceptable, or they could continue operating them with a conditional use permit and then bring them in on a case-by-case basis. Staff was asking for direction. Commissioner Limont asked if the folks renting without CUPs were notified or cited, or if they've had this issue in the past. Mr. Bagato said they haven't been notified. This came to staff's attention when the last applicant came through, she said there were some people in her neighborhood doing this without a CUP, so staff did some research and were able to identify a few. Typically these were found in associations, and not often in R-1 zones because they lead to complaints and they know right away. Commissioner Limont asked if he had run into this in the past where they had someone in violation and they cited them or send Code out, or how we handled it. Mr. Bagato said every one they've had has come from a complaint. Commissioner Limont asked how they handled it, did they say starting February 1 please make sure you're not doing short-term rentals any longer because it is in violation. Mr. Bagato said it becomes a Code Enforcement action and they come in to apply for a permit. That's how it had been done in the past. Commissioner Limont agreed that this wasn't an issue of money, but what they were talking about was what they discussed months ago when they denied that CUP and that was to really make certain that we maintain the integrity of our neighborhoods as neighborhoods. Other cities in the valley have had unfortunate problems when renters got out of hand in their neighbors. It completely changes the whole character. Mr. Bagato agreed that conditional use permits give them some restrictions, but whether it was worth having them was the bigger question. 8 MINUTES : PALM DESERT PLANNING COMMISSION JANUARY 19, 2010 Chairperson Tanner said that one of the issues they were also looking at is that people can do this without a conditional use permit. You can rent a home for long term, but people can rent them for two weeks or a month during holidays and they don't need a conditional use permit. He asked if that was correct. Mr. Bagato said that if someone is in an R-1 zone, they are supposed to have a conditional use permit. There is always going to be an enforcement side, but some of these people they actively know have websites advertising their homes and if they see that they can go after them. The ones that don't advertise or somehow do it under the radar will be a little more difficult to track. But there is always the enforcement side, whether or not they require a CUP. Chairperson Tanner reiterated that typically the way staff finds out about it is through a complaint. Mr. Bagato said that was correct; typically when someone has used a home during spring break or for a party weekend or wedding and a bunch of neighborhood complaints to the police department on the weekend and they also follow-up outside of the police with staff on Monday morning and then they are contacted. Chairperson Tanner noted that staff was asking for direction from the Planning Commission. Mr. Bagato said yes, because staff doesn't typically initiate a zoning ordinance amendment, but they also don't want to send in nine applicants who may be denied if it isn't considered compatible any more. So they were asking for direction on whether or not they should be allowed to continue on a case-by-case basis or eliminated. Chairperson Tanner asked if there were any applicants since the May 19 meeting. Mr. Bagato said no, but they are aware of some they need to contact. Commissioner Limont explained that these nine will apply when they are told they are in violation. Chairperson Tanner said they would probably be denied. Commissioner Limont noted that is our process. Mr. Bagato clarified that if the zoning ordinance amendment prohibits it, they would then just contact them afterward to say it isn't allowed. Commissioner Limont Mr. Erwin if they did something along those lines to limit whether or not a person can do a short-term rental under the R-1 zone, if that was any sort of denial. Mr. Erwin said basically, if it was the Planning Commission's feeling, they ought to be thinking in terms of initiating an ordinance eliminating the current conditional use permit process in our ordinance and just indicate it is prohibited. Commissioner Limont: and just say no short-term rentals period. Chairperson Tanner said they could direct staff to do a CUP on no short-term rentals in an R-1. Mr. Erwin clarified it would be an ordinance amendment. Commissioner Campbell asked for the definition of a short-term rental. Less than 30 days? Mr. Erwin concurred that it was 30 days or less. Commissioner Campbell indicated that otherwise it would just be a regular rental. That was in the R- 9 MINUTES PALM DESERT PLAN G COMMISSION JANUARY 19, 2010 1. She was happy to see that it wouldn't hold true to the gated communities. Commissioner Schmidt said that was a question that she had. How do they do that? The assumption is that all gated communities have CC&R's or bylaws and regulations that preclude short-term rentals. Mr. Erwin wasn't sure that all of them do. Mr. Bagato clarified that they manage them. They actually allow them and some actually have management companies, like Desert Resort Management, will manage it for people. They were zoned differently, so they've always been treated differently in the past because they have different standards they follow within their own community and they haven't been a problem. And typically they were going to find more often than not in a gated or country club communities they are second homes and do choose to rent them out on a month-to-month basis or a weekend home in the season. Commissioner Schmidt asked if the ordinance would be drafted to specifically exclude any gated community. Mr. Erwin said that was going to be difficult. Commissioner Schmidt said that was her point. Mr. Bagato said that is how it is treated now with a conditional use permit. It applies only to the R-1, not the PR. Commissioner Schmidt asked if the gated communities apply for CUPs. Mr. Bagato said no, it wasn't required. Chairperson Tanner said they have their own set of rules and regulations. Commissioner Limont said yes, they don't fall under a CUP. Mr. Erwin said so long as they are not R-1. He assumed all of the gated communities are Planned Residential (PR). Mr. Bagato said that was correct. Mr. Erwin asked if they all are. Mr. Bagato said typically they are. Commissioner Limont asked if Mr. Bagato could think of one that isn't. Mr. Bagato replied Regency where Van lives and Whitehawk. They are R-1. Commissioner Schmidt felt they should direct staff and counsel and everyone involved to explore this and make certain that the gated communities all comply and can be accepted because they have their own. She doubted seriously that was really totally true, but she thought they had to know. Chairperson Tanner asked how they would direct a private residential community to change their CC&R's to not allow or to allow. Commissioner Schmidt indicated there had been a blanket comment made tonight that most all gated communities have their own rules, regulations and CC&R's which would exclude them from whatever they would be doing. That was her understanding. Mr. Erwin said no, not necessarily. That does not occur. The ordinance, if they apply it to R-1, it is applied regardless of the CC&R's. Commissioner Schmidt said that was her point. If someone lives in a gated community and you do not like the next door rental that is weekend rental, you would still have an opportunity to complain and have some sort of enforcement. Mr. Erwin replied as far as R-1, yes. It falls under the R-1 at the present time. Commissioner Schmidt indicated that it did not necessarily have to be gated. 10 MINUTES PALM DESERT PLANNING COMMISSION JANUARY 19, 2010 Commissioner Limont thought it might be helpful if staff came back with a list of the ones that fall under R-1 and with suggestions. It sounded simple, but if they have a couple of communities that are going to be affected adversely, they need to look at that. Mr. Erwin said they could look at it and see what they could come up with as a way of alternatives and see what the problems might be and bring it back to them in 30 or 45 days. Commissioner Schmidt stated that she would be very much in favor of eliminating weekend rentals in the R-1 zone. She just wanted to make certain they weren't stepping on toes they need not be. Mr. Erwin said they would explore it and see what they could come back with. In the meantime, Commissioner Limont noted there are nine rentals that are not in compliance and in fairness to the person whose CUP they turned down, they have a process of letting them know that they cannot do this and they need to apply and they need to do stop running the short-term rental until they put through their conditional use permit. Mr. Bagato explained that they haven't been contacted yet because they would want to know the process of how to get approval and he didn't want to give them an application, say they need to apply, and have them pay a fee for something that may be denied if we're changing it. Commissioner Limont noted that is the ordinance right now. Mr. Erwin said it did create somewhat of a problem, because they know the feeling, at least what he was hearing is that Planning Commission is interested in prohibiting them in an R-1, and if these are R-1's, they are going to waste not only staff time, Planning Commission's time, their money, in coming through the process until the Planning Commission has put something in black and white and recommended it to Council for approval, either prohibiting it in the R-1 and PR is okay within gated communities, until we get something definite, he suggested that they not go out and chase people at the moment, because if we start, there might be a whole lot more than these nine. Commissioner Limont asked how we should handle the complaints. If someone lives in an R-1 neighborhood and it's in our ordinance that you need to have a CUP and the person doesn't have a CUP, in the meantime they are renting their house out on a short-term basis. Mr. Erwin's inclination would be to tell them that we are in the process of looking at it and until we conclude the study, we're just going to be aware of the complaints and tell the people there that we are studying it so they have at least some long-term notice that it may be prohibited. Not give them a violation. Commissioner Limont asked if they could stop them from doing short-terms rentals in the interim. Mr. Erwin explained that if they do, we have to tell them they are entitled to apply for a conditional use permit and they have to pay the appropriate fee and start through the process. They would then come before them. Chairperson Tanner said they would be 11 MINUTES ` PALM DESERT PLANNING COMMISSION JANUARY 19. 2010 denied. Ms. Aylaian added that these nine that they are aware of out there appear to be operating in good faith. They probably just don't know. They have registered with the Finance Department and are paying bed tax when they rent the place out, so it would seem a little unnecessarily harsh to ask them to come in. Commissioner Limont asked about them paying tax. Ms. Aylaian noted that the staff report indicated that the City received approximately $2,000 in bed tax from them, so it wasn't a great deal of revenue, but they are at least recording their rentals and turning in tax. She said they became aware of these locations by going through Finance to find the ones that are paying bed tax and they tried to determine if they had a CUP in place for it. Chairperson Tanner thought the consensus of the Planning Commission was they asked for staff to do a study and come back by our next meeting with those restrictions of R-1 versus PR. Commissioner Campbell noted that they recommended 30-45 days to come back. Chairperson Tanner asked if staff knew when the next scheduled meet would be. Mr. Bagato said he couldn't draft this in two weeks. Ms. Aylaian said it would probably be the second meeting in February. Mr. Bagato said could identify which country clubs are in R-1 and gated, but probably couldn't have an ordinance ready. He could have some other information by the second meeting in February. Chairperson Tanner said that if that was the consensus of the Planning Commission, they would instruct staff to do a study of those PR gated and R-1 gated communities and come back. Commissioner Schmidt said with maybe a draft ordinance. Chairperson Tanner concurred. Chairperson Tanner asked if they needed a motion. Mr. Erwin said he thought staff had their instructions. Action: None. X. COMMITTEE MEETING UPDATES A. ART IN PUBLIC PLACES Commissioner Campbell reported that the meeting would be next Wednesday. B. LANDSCAPE COMMITTEE Commissioner Limont stated that the next meeting was January 20, 2010. 12 Palm Springs Municipal Code Up Previous ; Next Min Collapse Search Print Nc Frames Title 5 BUSINESS REGULATIONS Chapter 5.25 VACATION RENTALS 5.25.010 Title. This chapter shall be referred to as the "Vacation Rental Ordinance." (Ord. 1748 § 1, 2008) 5.25.020 Findings. The City Council finds and determines as follows: (a) The use of single- and multiple-family dwelling units for vacation rental lodging purposes provides alternate visitor serving lodging opportunities in the city; however, such uses in certain single-family neighborhoods may have effects that can best be addressed through an appropriate city regulatory program. (b) The establishment of a regulatory program for vacation rental lodging will provide an administrative procedure to preserve existing visitor serving opportunities and increase and enhance public access to areas of the city and other visitor destinations. (c) The purpose of this chapter is to establish regulations for such use of residential property thereby enabling the city to preserve the public health, safety, and welfare. (d) This chapter is not intended to regulate hotels, motels, inns, time-share units, or non-vacation type rental arrangements including, but not limited to, lodging houses, rooming houses, convalescent homes, rest homes, halfway homes, or rehabilitation homes. (Ord. 1748 § 1, 2008) 5.25.030 Definitions. For purposes of this chapter, the following words and phrases shall have the meaning respectively ascribed to them by this section: "Applicant" means the owner or in the event the vacation rental unit is covered by an exclusive listing arrangement, the agent or representative of the owner. "City manager" means that person acting in the capacity of the city manager of the city of Palm Springs or the city manager's designee. "Exclusive listing arrangement" means a written agreement between an owner and an agent or representative where the agent or representative has the sole and exclusive right to rent or lease a vacation rental unit to any person and the owner is prohibited from renting or leasing the vacation rental unit except through the owner's agent or representative. "Good neighbor brochure" means a document prepared by the city manager in consultation with the office of neighborhood involvement and representatives of owners that summarizes general rules of conduct, consideration, and respect, including without limitation provisions of the Palm Springs Municipal Code, that are applicable to or expected of residents of the city. "Local contact person" means a local property manager, owner or agent of the owner, who is available twenty-four hours per day, seven days per week for the purpose of responding within forty-five minutes to complaints regarding the condition, operation, or conduct of occupants of the vacation rental, or any agent of the owner authorized by the owner to take remedial action and respond to any violation of this code. "Owner" means the person(s) or entity(ies) that hold(s) legal and/or equitable title to a vacation rental. "Property" means a residential legal lot of record on which a vacation rental is located. "Responsible person" means an occupant of a vacation rental who is at least eighteen years of age and who shall be legally responsible for compliance of all occupants of the unit and/or their guests with all provisions of this chapter and/or this code. "Vacation rental" means one or more residential dwellings, including either a single-family detached or multiple-family attached unit, or any portion of such a dwelling, rented for occupancy for dwelling, lodging, or sleeping purposes for a period of twenty-eight consecutive days or less, other than ongoing month-to-month tenancy granted to the same renter for the same unit, occupancy on a time-share basis, or a condominium hotel as defined in Ordinance No. 1521 as such ordinance may be amended from time to time. "Vacation rental registration certificate" means an annual registration submitted to the city pursuant to this chapter. (Ord. 1748 § 1, 2008) 5.25.040 Registration certificate required. No owner of a vacation rental shall rent that unit for a period of twenty-eight consecutive days or less without a valid vacation rental registration certificate for a vacation rental pursuant to this chapter for that unit. (Ord. 1748 § 1, 2008) 5.25.050 Agency. (a) An owner may retain an agent or a representative to comply with the requirements of this chapter, including, without limitation, the filing of a complete vacation rental registration, the management of the vacation rental unit or units, and the compliance with the requirements of this chapter. Except as provided in subsection (b) of this section and notwithstanding any agency relationships between an owner and an agent or representative, the owner of the vacation rental unit or units shall remain responsible for compliance with the provisions of this chapter and the failure of an agent to comply with this chapter shall not relieve the owner of the owner's obligations under the provisions of this chapter. (b) In the event an owner enters into an exclusive listing arrangement, the vacation rental registration certificate may be secured, and the transient occupancy registration certificate requirements provided in this chapter may be performed, by the agent or representative and not by the owner. In addition, in the event an owner enters into an exclusive listing arrangement, the owner will not be required to secure a separate business license for the business of operating a vacation rental. (Ord. 1748 § 1, 2008) 5.25.060 Vacation rental registration requirements. (a) Prior to use of a property as a vacation rental, the applicant shall register the property as a vacation rental with the city annually on a registration form furnished by or acceptable to the city manager and signed by the applicant under penalty of perjury. Each application shall contain the following information: (1) The name, address, and telephone number of the owner of the unit for which the vacation rental registration certificate is to be issued. (2) The name, address, and telephone number of the agent, if any, of the owner of the unit. (3) The name, address, and twenty-four-hour telephone number of the local contact person. (4) The address of the residential property proposed to be used as a vacation rental. (5) The number of bedrooms and the applicable overnight and daytime occupancy limit of the unit. (6) Evidence of a valid business license issued by the city for the separate business of operating vacation rentals or submission of a certificate that owner is exempt or otherwise not covered by the city's Business Tax Ordinance (Division II, Title 3 of the Palm Springs Municipal Code) for such activity. (7) Evidence of a valid transient occupancy registration certificate issued by the city for the vacation rental unit. (8) Acknowledgement of receipt and inspection of a copy of all regulations pertaining to the operation of a vacation rental. (9) Such other information as the city manager deems reasonably necessary to administer this chapter. (b) The registration of a vacation rental shall be accompanied by a fee established by resolution of the city council, provided, however, the fee shall be no greater than necessary to defer the cost incurred by the city in administering the provisions of this section. (c) The registration of a vacation rental shall be accompanied by proof of general liability insurance in the amount of one million dollars combined single limit and an executed agreement to indemnify, defend and save the city harmless from any and all claims and liability of any kind whatsoever resulting from or arising out of the registration of the vacation rental. (d) A vacation rental registration certificate may be denied if a registration certificate for the same unit and issued to the same owner has previously been revoked pursuant to Section 5.25.090. The denial of a registration certificate for any reason may be appealed in accordance with to the provisions of Chapter 2.50 of the Municipal Code. (e) Upon change of property ownership, agent, or other material facts set forth in the annual registration, a new registration for a vacation rental shall be required to continue operation of the vacation rental and within fourteen days of said change the owner or his or her agent shall submit the required registration and fee. (Ord. 1748 § 1, 2008) 5.25.070 Operational requirements and standard conditions. (a) The owner shall use reasonably prudent business practices to ensure that the vacation rental unit complies with all applicable codes regarding fire, building and safety, health and safety, and all other relevant laws. (b) The owner shall limit overnight occupancy of the vacation rental unit to a specific number of occupants, with the maximum number of overnight occupants as two persons within each vacation rental unit plus an amount that will not exceed two persons per bedroom within each vacation rental unit. The owner shall also limit the total daytime occupancy of the vacation rental unit to a specific number of occupants not to exceed an amount determined by adding the total overnight occupants to a number equal to fifty percent of the overnight occupants; except that two daytime occupants shall be permitted in a studio unit or such other unit that does not contain a separate bedroom. The following chart is provided as an example of how this section would be applied to specific situations: Number of Total of Overnight Additional Daytime Total Daytime Bedrooms Occupants Occupants Occupants 0 2 2 4 1 4 2 6 2 6 3 9 3 8 4 12 4 10 5 15 5 12 6 18 6 14 7 21 7 16 8 24 (c) During the term each vacation rental unit is rented, the owner, his or her agent, and/or the local contact person designated by the owner, shall be available twenty-four hours per day, seven days per week for the purpose of responding within forty-five minutes to complaints regarding the condition, operation, or conduct of occupants of the vacation rental. (d) The owner shall use reasonably prudent business practices to ensure that the occupants and/or guests of the vacation rental unit do not create unreasonable noise or disturbances, engage in disorderly conduct, or violate provisions of the Municipal Code or any state law. (e) Notwithstanding the provisions of Section 11.74.043, any radio receiver, musical instrument, phonograph, loudspeaker, sound amplifier, or any machine or device for the producing or reproducing of any sound shall be conducted within an enclosed vacation rental unit. (f) Prior to occupancy pursuant to each separate occasion of rental of a vacation rental, the owner or the owner's agent or representative shall: (1) obtain the name, address, and driver's license number of the responsible person; (2) provide a copy of the good neighbor brochure to the responsible person; and (3) require such responsible person to execute a formal acknowledgement that he or she is legally responsible for compliance of all occupants of the vacation rental or their guests with all provisions of this chapter and/or the Municipal Code. This information shall be readily available upon request of any officer of the city responsible for the enforcement of this chapter. (g) The owner, or his or her agent, shall, upon notification that the responsible person, including any occupant and/or guest of the vacation rental unit, has created unreasonable noise or disturbances, engaged in disorderly conduct, or committed violations of provisions of the Municipal Code or any state law, shall promptly respond in a timely and appropriate manner to prevent a recurrence of such conduct by those occupants or guests. Failure of the owner or his or her agent to respond to calls or complaints regarding the condition, operation, or conduct of occupants of the vacation rental in a timely and appropriate manner shall be grounds for imposition of penalties as set forth in this chapter. It is not intended that an owner, agent, or local contact person act as a peace officer or place himself or herself in an at-risk situation. The owner, or his or her agent, shall report the name, violation, date, and time of disturbance of each responsible party involved in three or more disturbances covered by this subsection to the city manager. (h) Trash and refuse shall not be left stored within public view, except in proper containers for the purpose of collection by the collectors and between the hours of five a.m. and eight p.m. on scheduled trash collection days. The owner of the vacation rental unit shall use reasonably prudent business practices to ensure compliance with all the provisions of Chapter 6.04 of the Municipal Code (Waste Disposal and Diversion), and shall provide the highest level of solid waste collection service available to residential customers in the city (including without limitation "backyard collection" services or "walk-in service") or as may otherwise be approved by the city manager. (i) The owner of the vacation rental unit shall post a copy of the permit and a copy of the conditions set forth in this section in a conspicuous place within the unit. (j) The owner shall provide each occupant of a vacation rental with the following information prior to occupancy of the unit and/or post such information in a conspicuous place within the unit: (1) The name of the managing agency, agent, rental manager, local contact person, or owner of the unit, and a telephone number at which that party may be reached on a twenty-four-hour basis; (2) The maximum number of overnight occupants and the maximum number of daytime occupants permitted to stay in the unit; (3) The trash pick-up day and applicable rules and regulations pertaining to leaving or storing trash or refuse on the exterior of the property; (4) Notification that the amplification of music outside of the dwelling unit is a violation of this chapter; (5) Notification that the occupant may be cited or fined by the city and/or immediately evicted by the owner pursuant to state law, in addition to any other remedies available at law, for creating a disturbance or for violating other provisions of this chapter; (6) Notification that failure to conform to the occupancy requirements of the vacation • rental unit is a violation of this chapter; (7) A copy of this chapter of the Palm Springs Municipal Code, as may be amended from time to time. (k) The use of a vacation rental unit shall not violate any applicable conditions, covenants, or other restrictions on real property. (I) The owner shall comply with all provisions of Chapter 3.24 of the Municipal Code concerning transient occupancy taxes, including, but not limited to, submission of a monthly return in accordance with Section 3.24.080. The monthly return shall be filed each month regardless of whether the vacation rental unit was rented or not during each such month. (m) A copy of the vacation rental registration, including all of the information required in Section 5.25.060 (a)(1)—(5) shall be mailed or delivered to all property owners shown on the last equalized county assessment roll and all occupants of each dwelling unit within three hundred feet of the vacation rental unit and to the office of neighborhood involvement of the city. Such information shall be provided at least annually or within fourteen days of any change of information as required pursuant to Section 5.25.060(e). (n) The city manager shall have the authority to impose additional standard conditions, applicable to all vacation rental units, as necessary, to achieve the objectives of this chapter. A list of all such additional standard conditions shall be maintained and on file in the office of the city clerk and such offices as the city manager designates. (o) The standard conditions may be modified by the city manager upon request of the owner or his or her agent based on site-specific circumstances for the purpose of allowing reasonable accommodation of a vacation rental. All requests must be in writing and shall identify how the strict application of the standard conditions creates an unreasonable hardship to a property such that, if the requirement is not modified, reasonable use of the property for a vacation rental would not be allowed. Any hardships identified must relate to physical constraints to the subject site and shall not be self-induced or economic. Any modifications of to the standard conditions shall not further exacerbate an already existing problem. (Ord. 1748 § 1, 2008) 5.25.080 Audit. Each owner and agent or representative of any owner shall provide access to each vacation rental and any records related to the use and occupancy of the vacation rental to the city manager at any time during normal business hours, for the purpose of inspection or audit to determine that the objectives and conditions of this chapter are being fulfilled. (Ord. 1748 § 1, 2008) 5.25.090 Violations. (a) Any person who uses, or allows the use of, residential property in violation of the provisions in this chapter is guilty of a misdemeanor for each day in which such residential property is used, or allowed to be used, in violation of this chapter. Violations are punishable pursuant to Sections 1.01.140 and 1.01.150 and the administrative citation provisions of Chapter 1.06 of the Municipal Code, except that the fine for a first violation shall be two hundred fifty dollars and each subsequent violation shall be five hundred dollars. (b) Notwithstanding the provisions of Chapter 1.06, any pre-citation or courtesy notice issued for violations specified in this section may provide for a reasonable compliance date or time of less than fifteen calendar days but at least thirty minutes from the date or the time the pre-citation notice is given if, due to the nature of the violation, a shorter compliance period is necessary or appropriate, as determined in the reasonable judgment of the city official issuing the notice. (c) Upon the fourth or subsequent violation in any twenty-four month period, the city manager may suspend or revoke the vacation rental registration certificate for a vacation rental unit. The appeal and hearing provisions of Chapter 1.06 shall apply to any revocation or suspension of a permit. (d) The remedies provided for in this section are in addition to, and not in lieu of, all other legal remedies, criminal or civil, which may be pursued by the city to address any violation of this code or other public nuisance. (Ord. 1748 § 1, 2008) 5.25.100 Requirements not exclusive. The requirements of this chapter shall be in addition to any license, permit, or fee required under any other provision of this code. The issuance of any permit pursuant to this chapter shall not relieve any person of the obligation to comply with all other provisions of this code pertaining to the use and occupancy of the vacation rental unit or the property on which it is located. (Ord. 1748 § 1, 2008) MARY PATRICIA BENZ A'1"I'oltNlti' 111 W[{S'l WASHING S"1RI:1{1' Sl'1'1'i: 1150 (312) 372-1155 FAX(312) 372-1974 March 25, 2010 RECEIVED VIA FEDERAL EXPRESS City of Palm Desert 73-510Fred Waring Drive OINIC LUP)M ENT DEP,‘,RI:NIENT Palm Desert, CA 92260 CITY TY OF pal-' DES;1r To Whom It May Concern: I am a homeowner at 73-605B Ironwood, Palm Desert. I own the home with my sister, M. Susan Schubert. I received the City of Palm Desert Legal Notice, Case No. 20A 10-68 (attached). Most of our rental use of the property has been for lease periods of 30 days or more. Nevertheless, I am concerned about the month of February and believe that rental for the full month of February should not be prohibited by the zoning amendment. Accordingly, I suggest that the proposed zoning amendment be made consistent with the Transient Occupancy Tax ("TOT") Ordinance, Section 3.28.010 et seq., in the following ways: • Section 3.28.040 provides an exemption from the TOT for single family dwellings leased "on a monthly term, regardless of the number of days contained in the month." These leases are exempt from the tax. I suggest that the foregoing language be incorporated into the proposed amendment to take account of the month of February, as well as to address any other inconsistency between the TOT ordinance and the proposed zoning ordinance. • Because the zoning amendment would prohibit short term rentals other than those that are already exempt pursuant to the TOT section quoted above, I propose that homeowners like ourselves to whom the zoning amendment applies should be relieved of any obligation to file TOT returns and affidavits to support TOT exemptions. Your consideration of these comments is appreciated. Please feel free to call or email me. Sincerely, 7/)741') Mary Patricia Benz MPB/alj cc: M. Susan Schubert Karen Macaulay March 20, 2010 RECEIVED Lork i 1 MO Palm Desert Planning Commission City of Palm Desert vMMUN1TYDEVELUPM ENT 1EPAhlMENT 73-510 Fred Waring Drive (',TY of,Ai.>+DESERT Palm Desert, CA 92260 To Whom It May Concern: As a vacation rental owner in Palm Desert I must strongly protest your proposal to ban short-term rentals within the city. I purchased this property, in good faith as an investment in 2004 with the expectation that the city would continue its policy of support. It is implicit in the payment of transient occupancy taxes to the City of Palm Desert that the city has given tacit approval of these rentals. It is also discriminatory to allow short-term rentals within gated communities while denying those outside those communities the same rights. As a group we are responsible property owners who take great care in screening guests for the protection of our property and the betterment of the community. City government profits from the collection of taxes, both occupancy tax and sales tax, and local businesses and trades people are patronized by our guests and are employed at our homes. There can be no economic gain to the community by banning these rentals. It will stop the revenue stream to the city and have a negative impact on local businesses. It would appear that, not only is the city prepared to lose this income, it will spend money to monitor the implementation of this ill- conceived and poorly timed ordinance and expend city funds to defend against any lawsuits that are sure to be filed against it; a costly proposition indeed. It is unthinkable that the city would pursue this course of action in these economic times. The real estate market in the Coachella Valley and elsewhere is severely depressed with record numbers of foreclosures. Deprived of the income from our investments, many of us will be facing foreclosure as well. Foreclosed homes create a problem in any neighborhood and bring down the value of all surrounding properties. Palm Desert is a resort town and continues to exist because of tourists. Most families don't have 30 day vacations, but rather 1 to 2 weeks. This is also blatant discrimination against them. 1112 Foothill Blvd., Santa Ana, CA 92705 (714) 731-0136 fax(714) 731-6497 I request that you rescind this action for the good of the citizens of Palm Desert and the guests that visit this city to relax and enjoy the beautiful weather and enrich our economy in the process. I have enclosed a list of core issues for your review. Sinc r , / a en Macaula Encl:1 CORE ISSUES AGAINST THE SHORT-TERM RENTAL BAN PROPOSED BY THE CITY OF PALM DESERT 1. Rental of residential property is one of the vested right of property ownership; 2. There should be no distinction between the short-term rental of residential property and any other rental of residential property; 3. The prohibition of short-term rental of residential properties without identical prohibition of rental of all residential properties is dis- criminatory; 4. Prohibition of short-term rental of residential property is taking of that property without just compensation; 5. Forcing owners of residential property to be limited in their rights will subject the City of Palm Desert to significant money damages; 6. By collecting transient occupancy taxes the City of Palm Desert has given tacit consent that a ban would not be enforced; 7. The use of zoning laws in an attempt to ban short-term rentals does not fall within the scope of the Welfare, Health, or Safety proprietary pro- visions of zoning law enactments; 8. The prohibition of short-term rentals located outside gated com- munities while permitting those inside gated communities is dis- criminatory; 9. Possibly subjecting property owners, managers and local realtors to criminal penalties for renting short-term rental property is an overreaching of power by the City and is divisive to the community at large; 10. The City of Palm Desert is attempting to engage in adopting an ordinance which is unconstitutional and therefore illegal; 11. No substantive code enforcement citations or police citations or reports have ever been issued regarding any short-term rental property; 12. Claims that short-term rentals contribute to any significant increase in noise, litter, parking, or other disturbance problems are wholly un- founded. The city council has apparently responded to the complaints of a few activist-supporters of short-term rental bans; 13. Palm Desert budgets monies for promoting the city as a place for tourists to enjoy. In prohibiting the home rentals on a short-term basis the city is effectively discriminating against those families seeking an affordable means to visit Palm Desert; 14. Vacationers who utilize short-term rentals provide a significant revenue stream to local businesses which result in sales tax revenues to the city. 15. Palm Desert is sending a message to second home buyers and investors that Palm Desert is not real estate investment friendly and willing to impose penalties on anyone who is attempting to exercise the vested rights of property ownership. Richard Hemington & Debra Ann Houston 73570 Joshua Tree Street RE C ['J 11/ E Palm Desert CA 92260 Ai** j ; 2010 OMMUNITY DEVELOPMENT DEPARTMENT City of Palm Desert CITY OF PALM DESERT Department of Community Development 73510 Fred Waring Drive Palm Desert 92260 March 27th 2010 Dear Sirs Your Ref: ZOA 10-68 We write in reference to your proposed adoption of a Zoning Ordinance (25.56.530) prohibiting short term rentals in residential zones. What in your opinion(s) makes short term rentals incompatible with residential single family neighborhoods? You are aware that by definition all rental homes have to be maintained to high standards and actually add value to these neighborhoods. There are many dwellings in the current economic climate that are either poorly maintained or are empty especially with the high foreclosure rate in the valley. Many thousands of visitors to the valley wish to rent private homes for less than 30 days, bringing much needed revenue to the valley, not just for the home owners but the local economy for services as well as creating employment for many direct services such as maintenance, cleaning, pool and gardening services. Your proposed adoption will result in the following detrimental effect on the city and its population: 1. Many home owners will need to sell or consider selling their property only resulting in further depreciation of the market value of homes, associated impact on the neighborhoods and resulting in a mean drop in property tax income to the City. 2. Many people employed associated with short term rentals will lose income altogether or drastically reduced income will result on unfair burden on the many families living in the City without income. 3. The service industry, golf, restaurants and leisure in particular will lose business and irreparable damage will hurt many hundreds of business' and associated business failures which is not what is required in what is already a tough economy. 4. The City is turning down the tax generated by short term rentals, 30+ day rentals do not generate any tax income. 5. The thousands of visitors who use short term rentals will not transfer to hotels, the only beneficiary of this decision. They wish a different type of vacation and there is not the capacity in the City or Valley for them anyway. This proposed Ordinance is ill conceived and is detrimental to the City and its residents especially in the worst economic recession the USA and particularly the Valley is experiencing. During the Public Hearing we will oppose this Amendment and seek legal advice with our attorneys. Yours sincerely Richard Hemington Debra Ann Houston UK Address: 21 Umachan, Erskine , PA8 7FG ,Scotland JANE E. BARON March 29, 2010 IVED City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 ;`�,�mu,;1` E41F.:vTUFFART',1FNT t'TyDtTl`OFVELO PALM DESERT 760-346-0611 info(d%palmdesert.org To Whom It May Concern: My name is Jane Baron. My husband, Alan Baron, and I own a home at 73500 Grapevine Street in Palm Desert. It is meticulously cared for and located in the un-gated neighborhood of South Palm Desert. We purchased our home in the spring of 2007 with intention to retire within two years. As a native of Southern California I am at home in the Coachella Valley. Currently both my parents live in the desert (Palm Desert and La Quinta) as well as my brother and his family. Our decision to retire in Palm Desert is deeply rooted in a desire to be near family and friends. The economic downturn beginning in 2008 resulted in our home in Santa Rosa losing 35% of its market value. This added to a number of economic factors requiring us to continue working and required us to postpone our retirement and subsequent move to the desert. Our present plan is to retire by 2014 barring any further dramatic shifts in the national and local economy. The city of Palm Desert offered a short-term lease license (Occupational License) and coupled with a membership in VRBO (Vacation Rentals by Owner) we have been able to subsidize a portion of our expenses through short-term rentals. Rental of residential property is one of the vested rights of property ownership. There should be no distinction between the short-term rental and any other type of rental of residential property, whether located in gated or non-gated communities. We average approximately twelve weeks of rental time per year. In addition to that we are able to work around the renter's schedule and come down ourselves to enjoy six weeks per year. We have a one week minimum but have found the average stay is ten to fourteen days. The clients are generally couples or families that are working and/or have children in school. We have a six person maximum. The one month or more limit now being proposed will limit our client base to those who are retired, do not work or have a pre-existing schedule. I can assure you that families with children go to restaurants, visit areas like the Living Desert, shop on El Paseo and spend time at the Palm Desert community park. Families looking for private homes outside gated communities will find them in other desert cities and will spend their time and money in those respective towns. Vacationers who utilize short-term rentals provide a significant amount of revenue for local businesses which results in sales tax revenues for the city as well as invigorating the local economy as a whole. In our rental history we have only had one unreasonable renter. Ironically this was a couple who signed a two year lease shortly after we realized our retirement plans had changed. They could not make their rent payments, allowed multiple pets with a no pets' stipulation in the contract and left the home in unsatisfactory condition. We later discovered their initial attraction to rent our home was for company parties and entertaining. A second incident occurred in the heat of the summer as the house sat vacant; there was forcible entry into our home with intent to rob it of its contents. Long term rentals and/or a vacant home do not insure neighborhood equanimity. Our experience with short-term renters has been excellent; primarily families or couples from the mid-west and Canada looking for short term relief from the cold and brutal winters. My brother and his family live and work in Palm Desert; he is our property manager who responsibly maintains and cares for our home during the times it is rented. It is good for the renters, the neighborhood and us. I am sure most homeowners in Palm Desert have similar arrangements. Claims that short-term rentals contribute to any significant increase in noise, parking or other disturbance problems are unfounded. The current proposal put forth by the City of Palm Desert to revoke the short-term vacation rental license is extremely troubling. This action does not address all tax-paying homeowners equally, exempting homeowners living in gated communities. Gated communities are not exempt from the rules and policies of the towns they are located in. The legal notice we received about this change in policy was sent with a two week period to arrange to come and attend in person. Many homeowners work and live in distant towns and this did not demonstrate an earnest and considerate gesture for all homeowners concerned to attend. Based on the hasty nature of this meeting and the seriousness of the issues I plan to attend and represent other like-minded single-family residential owners on opposing this adoption of the Zoning Ordinance Amendment. Many other private homeowners in Palm Desert who understand the inequity and discrimination of this proposal will be supported by our group and will be in attendance as well. Palm Desert is a small and active community and it is my hope to come together and talk about policy change responsibly. Sincerely, rat aforw--- Jane E. Baron 2657 Knob Hill Drive Santa Rosa, Ca 95404 707-694-9646 jbaron@sonic.net ,11 Of 3a, p", a/eivz",C CA 939.?"-.661 fir' As' '7 P1hit/N/A/ L24'/0i0i.5- / n/ 735/0 / iv W i3 r'k , ✓�/ D.F 7C y . � x; of mzMi,4-18 f'li? 70/V' ' 3A A M /�.c c D.4.(6 7 2 ' r U/Is 2/90vED icy ..ehw a1 T?//s 6. d?off ,e i?OIV P'i/RE#T J "9 THE" A�t,PQT ' /9i 73/3c j'�, a/.) ll/PP/Y7///AJ P4>Y. �o�;' T�,�' i4621/ TV OE vW :1Y5 'twT4L ROPM'fl` ai,4 ;Le/pcO re eeNT /7 AS A J/AM72a,c i 4 fT,9L J 2 a/f (.&E/40 oceA,s/DlV, ZZV E%/J / 17 oa,estlices 7ewe //J ,09 tf7e/ 4/e/M5 To 46.T Tie /3e ' 'T�'` , z)' axe- J'i0M/7" di eie/v.s-/4 Z',4J/ /9.4© 4/7 t/ 7i 4'f e OP/ fr ' M/C'/'"Q eeiR �/wE f c7 <tiA2e7 9,&C fr' Ta d61/.74%)4 7-NE 11T' tf 7 D T, %H,s of &q v 4 U or3 Au/ /i 71- 4E .9R rievt Ace024-7)vcc MTh' 7 '� ' -asi�vd-4-'i E 2>/00)Z3 7/O / ',&v/7i/ec /tf, wz x4e4:Lf--" /9��ei44i -WiJaW$ L PE7 /*/A/7 Tim Coizz 9 ,e/261 ,c7,V. 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PROPERTY: Occupant rents, for vacation purposes only, the furnished real property and improvements described as: . ,situated in . County of ,California("Premises"). The Premises has bedroom(s)and bath(s). 3. ARRIVAL AND DEPARTURE: Arrival: (Date)at (rime)Deparhne: (Date)at (Time). 4. AUTHORIZED USE AND GUESTS:The Premises are for the sole use as a personal vacation residence by not more than adults and children. 0 (If checked)In addition to the Occupant ids in paragraph 1,only the following shall reside at the Premises: ("Authorized Guests"). No other guests,visitors or persons are permitted. If the Premises are used, in any way, by more or&Went persons than those identified in this paragraph.(I)Occupant,Authorized Guests and all others may be required to immediately leave the Premises or be removed from the Premises;(II)Occupant is hn breach of this Agreement and(lie)Occupant forfeits its right to return of any security deposit 5. PAYMENTS:Occupant agrees to the fowing payments: A. The Premises will not be held for Occupant until both the reservation fee and this Agreement signed by Occupant have actually been received.Once paid,the reservation fee is for services rendered in entering into this Agreement and is B. Category Amount Due Payment Due Date Reservation Fee: $ Rent $ Security Deposit $ Cleaning Fee: $ Other. $ Other. $ Transient Occupancy Tare _ $ Total: $ . 6. BALANCE DUE;LATE CHARGE:If any amount due is not received by the apprrcabte Payment Due Date,Owner may,at Owner's or Owner's Represertagve's sole discretion, either terminate this Agreement and refund to Occupant all payments except the reservation fee,or impose a late charge of$ 7. SECURITY DEPOSIT: A. The security deposit will be 0 transferred to and held by Owner;or 0 held in Owner's Representative's trust account B. All or any portion of the security deposit, upon termination of occupancy, may be used as reasonably necessary to: (i) cure Occupant's default in payment of rent, non-sufficient funds ("NSF') fees or other sums due (ii) repair damage, excluding ordinary wear and tear, caused by Occupant or Occupant's guests or licensees; (iii)dean the Premises: and(iv) replace or return personal property or appurtenances.Within three weeks after Occupant vacates the Premises, Owner shall: (1)furnish Occupant an itemized statement indicating the amount of any security deposit(I) received, (ii)withheld and the basis for its disposition,and(iii)withheld pending receipt of utility,phone and bills;and — (2)return any remaining portion of the security deposit to Occupant C. No interest will be paid on the security deposit unless required by local ordinance. D. If the security deposit is held by Owner,Occupant agrees not to hold Owner's Representative responsible for its return. If the security deposit is held by Owner's Representative and the security deposit is released to someone other than Occupant,then Owner's Representative's only duty shall be to notify Occupant, in writing,where and to whom the security deposit has been released. terminates this Agreement priorto the latest Payment Due Date, $. CANCELLATION;t�1D:If Occupant cancels or all payments except the reservation foe will be refunded to Occupant. If Occupant cancels or otherwise terminates this Agreement after the latest Payment Due Date, Occupant shall be responsible for rent, commission to Owner's Representative and all marketing and preparation costs necessary to ready the Premises for re-rental. The laws of the United States (Me 17 U.S. Code) forbid the occupantof a of this page. uhaut arr+eprodt In of this Turn,a any pinion thereof,by per_ ell Co hire ® ASSOCIATION T lr>itrais( )( ) ��t �ran INC:ALL RIGHTS RESERVED. VRA REVISED 1/06(PAGE 1 OF 3) VACATION REiiTAL AGREEMENT(VRA PAGE 1 OF 3) ted Premises: no hOking over or t without l una>. c harean9. HOLDINGthere 'a charge of 1 (tries the daily proratedrent(or Q if checked for guests ("Hold ova[ at O dchtiOnal � Masked including but not limited to, the cost of alternative housing ("Holdover Rate"),Occupant's� �ng over.Late dtedt-outs will be cheeped 50% can Rate Upon ter 0 if checkedrmination ) displaced by to Occupant in a professionallyof occupancy. at). Ot cupere i Ps livers P be s the e �ordinary wear and If does not return the Premises Oka win Bolin s ° i will be d San tit`catty depost the same ,air)t�d' is on the Premises.(I)O is�for all damage mid by the 11. NO PETS:Pets are not allowed. If leave the Premises,or be removed from pet,till Occupant,Authorized Guests,pet(s)ands� to immediately forfeits its right to return of any security deposit- it,(ii}Occupantin breachg of allowedlso e<►t. does octt'on the Premises,(I)Occupant is responsible for all 12. damage$�' by smoking ison the Premiss. smoking.stains, caused the smoking including, but not limited to, , buns, odors and ire+n,,.d of debris;tell Occupant, Authorized is leave the Premises,or be removed from the Premises; tel) Occupant Guests. and all Agrethersement may andb (iv)required Occupant Welts to return of any security deposit breach of this Af a check urshall pay,$25.00 as an NSF fee.Occupant agrees that this charge represents 13. NSF CHECKS: a check m to of the NSF, ay incur by reason of Occupant's NSF payment An NSF check will result in a fair and nreasonablethiAgreement estimate of costs Ownerpayment n is not math by the applicable Payment Due Date. cancelation of this lithe required to into this Agreement Occupant 14. CONDITION OF p�SEs:Occupant 0 has 0 has not viewed the Premises prior entering. shall,on arrival.examine the Premises,all furniture,furnishings,appliances,fixtures and landscaping.if any,and shall immediately condition or are in disrepair. Reporting does not give Occupant the right to report, in writing, if any are not in operating cancel this Agreement or receive a refund of any payments made. 1 5. UTILITIES:Owner is to pay for all utilities except as follows: BBOccupant agrees to pay for all terephone charges. Occupantagreesto pay iAL.1JSE:Ooar�M agrees to PIY with any and all rules and regulations that are at 16. RULES; REGtR ATI the NOCOS to shall not, and shall ensure that guests and licensees of any time posted on )c Premises o, deliveredor interfere with other of the building in which is located or its occupant shall(1) not(i)Premises cion a endanger,mercial or unlawful purpose ins g,but not limited to, [sing,manufacturing, selling, neighbors;or (a)use theOil any law or ordnance;or(iv) commit waste or nuisance on or storing, or transporting Nick drugs or other contraban4 about the Premises. MITT 0 checked) The Pig,► is a unit in a condominium, planned unit developmat @7_ CONDO a homey t• 1.The name of the HOA is Occupant or s to c�gaveled Wows, rules, regulationsand decisions of the HOA. with all • COIuTt�nu and re�idx>t�, shalt reimburse Owner for any tines or agrzes of rules and regulations of the HOA,if any. Occupant Owner shall sediy the due to any violation by or the guests or licensees of Occupant charges imposed byO HOA or shall properly authorities,operate end the Premises including. if applicable, any landscaping. 18. furniture, liances �all mechanical, . gas � keep them clean and sanitary. Occupant shalll immediately a Owner or Owner'sshall pay for Ocaupairor byant ue and a enset of Occupant excluding ordinary wear malfunction or damage.0 and tear. Occupant allh repairs or repmalfunction or damage in a timely manner. to the Premises as 9 result stoppages, �� �tree roots invading pay far ail damagedefective plumbing parts Occupant shall pay for repair of drain blockages or sewer lines. shall not make any in or about the Premises inducting. but not limited or, mmovinexhibits,orfur S 19• ALTERATIONS: wa�Ong or changing locks. antenna or saw dtsh(es),placr:g signs.displays screws,fastening devices,large naffs or adheshe materials. 20. ENTRY: r representatives and have the right to enter Vie Premises,at any time, (I)for the purpose of making A. Owner and Owner's decorations alterations, improvements, for maintenance or to supply necessary or agreed necessary or agreed repairs, has compliedwith the teems of this Agreement or re)in case of emergency. to show the services;tn)to verify that O agents have the right to err the Premises, upon reasonable notice, B. Owner Premises Owner's repsr't and , mortgagees,lenders,appraisers or o Premises. PteS iGN Nave or actual TII4�Occupare shall not assign any interest in this Agreement or sublet any part 21. i Ifof the O t Ais i is OR Premises or any p� thereof is suble#. (I) Oc upant, Authorized Guests, assignee(s), y erequired to immediately leave the Premises,or be removed from it;(a)Occupant is in breach of this sublessee(s)and ail others may to return of any security deposit and(ii Occupant fors rightve,the Premises is unavailable, Owner 22. UNA1r�A�elLABIUTY: If for any reason beyond the control of Owner or Owner's Represesrt•'ti or Owner's Representative may substitute a comparable unit or cancel this Agreement and refund in full to Occupant all payments Occupant shall:(i)give made. UPON TERMINATION OCCUPANCY:upon termination of occupancy,23. OwC Owner all copies OBLIGATIONSs opening devks to the Premises, inducing any common areas (ii) vacate the Premises and surrender it to owner empty of all persons:(I)vacate any/all parking andlor sbo<age space;and(iv)deriver the Premises to Owner in the same condition less onfmary wear and tear as received upon arrival 24. PERSONAL PROPERTY AND INJURY: property,Inc dmg vetadt ,ere not insured by Owner or,if applicable,Owner A. against loss or damage Oft s it guests'personal due to fire:theR.van�ssm,rain.water' aimirsd ar negligent acts of otliers.or any other c� doespersonal to Occupant, �s or lice sees due to any reason other than the condition of the Premises or obtain insurance to protect Occupant,guests and licensees B. Occupant Insurance:owner recommends that Occupant�y and their personalndH tifrom any loss or damage. e s t to to indemnify,defend and hold harmless Owner and Owner's Representative G. from all claims, costs and attorney fees resulting from loss, damage or injury to Occupant, from all clauris, disputes. litigation. judgments. Occupant's guests or licensees ortheir personal property. receipt of a copy of this page. it Octwpanrs initials( )( ) save" uarrY copy:vase 2002-2006.CALIFORNIA ASSOCIATION OF REALTORSO,INC' PAGE 2 OF 3) �' VRA REVISED 11116(PAGE 2 OF 3) I VACATION RENTAL AG ( Uall : Premises outng of this Agreement,or any resulting trarlSalcioh,before 25. MEDIATION:Occupy agrees to mediate any dispute resorting to arbitration or court action.Mediation if any,shall be divided equally among the parties involved. 2&_ 0 IVIETHAIVPHETAWRIE CONTAMINATION:Prior to signing this Agreement, Landlord has given Tenant a notice that a health official has issued an order prohibiting occupancy of the property because of methamphetamine contamination.A copy of the notice and order are attached 27. DATA BASE DISCLOSURE: Notice: Pursuant to Section 290.48 of the Penal Code, �n about specified registered sex offenders is made available to the pudic via an Internet Web site maintained by the Department of Justice at www.megansiaw.ca.gay. Depending on an offender's crkninat history,this inft.wirialiun will include either the address at which the offender resides or the ccarurmmity of rem and ZIP Code in which he or she resides.(Neither Landlord nor Brokers,if any,are required to check this websda If Tenart warts further iron,Tenant should obtain isrlformadon acts weite) 28. JOINT AND INDIVIDUAL OBLIGATIOIIM If there is more than one Occupant, each one shall be individually and completely responsible for the performance of all obligations under this Agreement,jointly and individually with every other Occupant 29. TRANSIENT OCCUPANCY:Occupant is renting the Premises as a transient lodger for the number of days specified in paragraph 3 from Owner who retains full legal,��and access rights. 30. KEYS;LOCKS:Upon arrival,(key(s)to or 0 )Occupant will ri -ive:- remote control device(s)for garage door/gate opener(s), ❑ key(s)to mailbooc, 0 ❑ key(s)t too common area(s),Pre have 0 have not been rekeyed. If Occupant rekeys existing locks or Occupant acknowledges that locks to the Premises 0 opening devices, shall immediately deliver copies of all keys to Owner or Owner's RepresentatiVe.Occupant shall pay all costs and charges related to loss of any keys or opening devices.Occupant may not remove locks,even tT installed by Occupant 31. OTHER TERMS AND CONI1t1oNs,including ATTACHED SUPPLEMENTS: ❑ Check-in procedure ❑ Contract man ❑ 32. ENTIRE CONTRACT: Time is of the essence. AN prior agreements between Owner and Occupant are incorporated in this Agreement, which consblutes the entire contract. It Is intended as a farad expression of the parties' agreement, and may not be contradicted by evidence of any prior agreement or contemporaneousoral agreement The parties further intend that this Agreement constitutes the complete and exclusive statement of its terms, and that no extrinsic evidence whatsoever may be introduced in any judicial or other proceeding,g, if ore, involving this Agreement. Any provision of this Agreement that is held to be invalid shall not affect the verily or enforceability of any other pion in this Agreement The waiver of any breach shall not be construed as a continuing of the same or any subsequent breach..This Agreement sty be governed and construed in accordance with the taws of the St;a of California. California shall have pews:nal. air aver the pasties and the county in which the Pr to hiit. -is toasted shad be the forum fosany legal action brought in ran to this A nest Occupant Date City State Zip Address Telephone Fax E-mail Occupant Date ZIP Address City Stae Telephone Fax E-mail For information regarding the Premises or this Agreement,contact ❑ Owner or 0 Owner's Remove. (Name) By City State Zip Address E�nanl Telephone Fax THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS*(CAR.).NO REPRESENTATION IS MADE AS TO THE LEGAL VAUDI Y OR ADEQUACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE EROICER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS.IF YOU DESIRE LEGAL OR TAX ADVICE.CONSULT AN APPRoPRiATE estate Industry.tt is not InternInt toiY tl@ user es .r4it.REALrOR®[y a ceyisEmed membership This form Is ev tee Ern'IISe try tie rear murk which may be used only by members on the NATIONAL ASSOCIATION OF REALTORSObwho subscribe to its Code of Elhlc*. Published and DDT by. apEi' 1• , REAL ESTATE BLISME&S SERVICES,INC. a subskliar7 aunt California Assocrallo9 of REJIL7ORS6 �� mhe s'ism sucrw- 525 South Virgil Acute,Los Angeles,California 90020 _.< VRA REVISED 1106(PAGE 3 OF 3) rrerix°ODD'' VACATION RENTAL AST(VRA PACE 3 OF 3) tihmak Palm Desert, California vacation rental by owner: 2 bedroom House r... Page 1 of 8 Palm Desert Vacation Rental "VRB0° Home > USA > California > Deserts > Palm Desert > Palm Desert, South > Private Homes > VRBO Listing =135989 Sleek, Stylish & Spacious Mid Century, Steps to El Paseo I rig ate t{uuu�.1'a;m llc�crt ('.II 1,,,',i 1 A :e l,uu R n nc On u r•n I t1',;t'35'1f q Location: Private Homes,Palm Desert,South, Call Owner Palm Desert,Deserts,California,USA Accommodations: House, 2 Bedrooms+ Phone 1: (831)625-5562 Convertible bed(s), 3 Baths(Sleeps 4-6) (California,USA) • WELCOME TO f aw39t/iYl "RETURN TO ME YOUR OWN „Keywords: House F1 r'7 r Y y#1359890n VRBO.Ben, t tt ! please Jiecl,out •M calendar ter p de-at ed late_ ,y r x ' `f`.i PRIVATE RESORT, w [ ,: " .a (Returning monthly guests,don't forget to request your reward to (._ Stroll to the El Paseo from this spacious Mid Century home situated on nearly one half acre i"- t of privacy.Enjoy casual luxurious living in this 2 bedroom 3 bathroom approximately 2400 square foot home.Wonderful floor plan with generous size rooms that creates a relaxed environment. The master bedroom has a California King Bed.Sliding glass doors opening to the pool which is just steps away.The large guest bedroom has 2 extra long twin beds made into - an Eastern King Bed.(We have linens for both,whichever you prefer.)The den has a Queen Sofabed. The master bathroom has a large glass block shower.The hall bathroom has retro original lime green tile with a tub&shower and the 3rd bathroom also has a shower. Dining Room The Dining Room seats 6. There is seating for approximately 10 on the south facing Pebble Tech patio that views the saltwater pool and jacuzzi surrounded by both lush and Desert landscaping,fully fenced and private with dramatic outdoor lighting.Fire Ring adjacent to Jacuzzi. Actual utilities used(phone,pay per view,gas,electric)will be deducted from security deposit. This is a NON-SMOKING premise. Vacation Rental Features http://www.vrbo.com/135989 3/30/2010 Palm Desert, California vacation rental by owner: 2 bedroom House r... Page 2 of 8 Air Conditioning Washer Dryer Linens Provided Covered Parking Off Street Parking Wood Fireplace King Bed Twin/Single Bed Convertible Bed Cable/Satellite TV DVD VCR CC Player Private Hot Tub Private Pool h2u Full Kitchen Cooking Utensils Provided Refrigerator Dishwasher Microwave Ice Maker Or:[docr'�dti rsr Gas/Electric BBQ Grill Deck/Patio Lanai Mountain View Telephone:Separate fax line Computer With print/scan Broadband Internet WiFi(Wireless Internet) Ocher::mr.^:Ges Fire Ring,Saltwater Pool&Jacuzzi,Alarm System 2,4db/it Pet Friendly Minimum Age Limit for Renters: Smoking Not Allowed Guests must he a minimum of 28 years of age Octdchi,t,es ai rite and Golf Tennis Zoo/Wildlife Park ;eahyl Shopping Sightseeing Restaurants Biking Mountain Biking Wildlife Viewing Hiking Rock Climbing Fitness Center/Gym Health/Beauty Spa Antiquing Cinemas/Movie Theaters Live Theatre Museums Horseback Riding Hot Air Ballooning Rate Details(In US Dollars) Personal Currency Assistant"^ Jun acg .. $1400;week .- 5-43o0,month Sep-:d.ry .. >ii.0'week .. $49001 month Dec May .. $1A00;week .. $5500;month Refundable $LOCO security deposit. Pets accepted at owners discretion. Add;tional security may be required. Cleansing fees $150-$205. .25% deposit to hold reservation. Balance must be revered at days prier to arrival Reservations made less than a weeks in advance must be paid an frill.Cancella ties Polio;. 25% deposit -sill be forfeited if you cancel 2 months or less before date, unless a replacement is found. 38 TOT tax applies on stays less than 32 nights. Note:Until confirmed,rates are subject to change without notice. Dates available:Year Round Before contacting us,please check our calendar for your desired dates. Phone 1: (831)625-5562(California,USA) Note: Each property is individually owned or managed. Property Photos http://www.vrbo.com/135989 3/30/2010 Palm Desert, California vacation rental by owner: 2 bedroom House r... Page 3 of 8 ,- viii. yr f' Partial View Of Living Room-Palm Desert Vacation Rental f / d PI cores �� � � •.. ; Partial Front View of House-Palm Desert Vacation Rental • 1 f 3 1 1 Partial View Rear Yard-Palm Desert Vacation Rental va max. Irving Room http://www.vrbo.com/135989 3/30/2010 Palm Desert, California vacation rental by owner: 2 bedroom House r... Page 4 of 8 # k L1 in:np Room 4 34,1 a .. Kitchen http://www.vrbo.com/135989 3/30/2010 Palm Desert, California vacation rental by owner: 2 bedroom House r... Page 5 of 8 S § ssrva.= • fay tlastei Bedroom „r y. . Guest Bedroom Partial Brew of Den 1), ,. Partial View Plaster Batllroonl http://www.vrbo.com/135989 3/30/2010 Palm Desert, California vacation rental by owner: 2 bedroom House r... Page 6 of 8 `i,, .. -. :: ril. d i ry k i i .„ mx t +r 1 Bathroom 4 'ice".:: ?A� .� bin$ i1 Y S y,fii q 4 t f 1xi Partial View 3rd Bathroom //www http: .vrbo.com/135989 3/30/2010 Palm Desert, California vacation rental by owner: 2 bedroom House r... Page 7 of 8 00,.. ;„.. (p.,. . - t Partial View Hall Bath 42*4b JP U y 1 Law dry 1 1 j I t U , ; wY p { Part,al View Rear Yard t*\i irk * t.. e 4 s 64440roe '4Y . 4 . Desert Landscaping http://www.vrbo.com/135989 3/30/2010 Palm Desert, California vacation rental by owner: 2 bedroom House r... Page 8 of 8 Traveler Reviews(o) This property does not have any reviews yet. Be the first to write a review for this listing... Dates available:Year Round Before contacting us,please check our calendar for your desired dates. Phone 1: (831)625-5562(California,USA) Note. Each property is individually owned or managed. Vacation Rentals by Owner Listing#135989 There have been 13082 visitors to this page since the counter was last reset in 2007. This listing was first published here in 2007. Date last modified-March 24,2010 ..,. re t,.is ev ggptg me nggest and gt88t r r,la .. ,rtr F .. n Ev ,.:ER also n- los,at s and apa tr ver,s of O r ` ref _ , rd.t nger ry yet .t itr tt� re„ selpform nl ro��.. ..a1� .t -_t t,r.IFLO.ca.it. to All r gtrtsreserved.. ,fr ,cl.:ra .,t. er��f the VRBO Tennis and Locutions and PrvacyvPocy no.vO-, atIon Grta. ty U,trtr ., Cat,,tcan.p trae.ze .e\gnat t08. Pat.R nh1 Oft http://www.vrbo.com/135989 3/30/2010 N O — .. 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I-- c0 G c0 Z > H H o a s Sarah Pallett&Joe Churchill RECEIVED 130 Pueblo Lane,Topanga, CA 90290 �,r K U _310 April 1st, 2010 'OMMUNITY DEVELOPMENT DEPARTMENT In regards to: CASE NO.ZOA 10-68,Short-term rentals in the R-1 zone. CITY OF PALM DESERT Dear Planning Commission, We are homeowners in the Palm Desert Country Club area. We have been vacationing in the Coachella Valley since 2000 and decided to purchase a home in 2005 when our first child was born. Our house in Los Angeles is small and we had need of a larger place for when our Toronto-based family visits. We specifically decided not to purchase in Palm Springs as we wanted something more family oriented. We, like many of our guests, have rented numerous private homes for vacations, both here and in the Carolinas, and felt quite comfortable with the prospect of owning a property supported by short-term rentals. We are quite stunned with the proposed change in direction. We are not in agreement with the conjecture that short-term rentals create "party houses" and that the only way to mitigate these "party house" situations from occurring is to eliminate the owners option to conduct short-term rentals in the first place. We also find it difficult to substantiate the conjecture that the short-term rental industry is the primary reason why the "party house" exists in the first place. We hope that the City of Palm Desert will determine that prohibiting short-term rentals will not eliminate the "party house". We hope that they realize enacting such a ban will ultimately hurt the local economy. During a time when every tax and tourism dollar counts, prohibiting short-term rentals will eliminate the economic uplift provided. We are of the opinion that a properly mandated and monitored rental program is the best way to address both the concerns of the city and the owners. We agree that the existing conditional use permit process provides adequate safeguards for the city and its residents.And we feel strongly that our results over the past three and a half years demonstrate that the following is true: It is possible to allow short-term rentals that serve the needs of the city, the resort vacationer and the owner while preserving the high quality of life found in a livable, sustainable and balanced community. We feel strongly that our property and the method by which we utilize it are completely in line with the community goals stated in the Comprehensive General Plan'. We acknowledge the boost Palm Desert's identity as a premier resort destination gives us and we implement a short-term rental program that enhances that image. We love our quiet,tranquil desert location. We love the amenities in the area— the restaurants,the shopping,and the outdoor activities. We know that our clients love all this as well— as we have several repeat guests. And the direct, uncensored feedback we receive reinforces that we are doing our part to build upon this image, not destroy itz. 1 From a financial perspective, we have over$140,000 invested. This includes house equity and capital investments, including over$25,000 spent at local stores to outfit our home. We rely heavily on three separate local small businesses for our success: Dennis and Ron, our pool team; Gregorio and family, our garden experts; and Mechelle's crew, the cleaners. Our local business spend (operating costs)over 3.5 years is$75,000. The Transient Occupancy Tax (TOT)collected and remitted over the same period is an additional $10,000. And we have remitted $21,000 in property taxes. Over three and a half years, our total cash outlay in the local economy adds up to$246,000. This is not inclusive of our and our guests'discretionary spending on restaurants, activities etc. This investment is material to us. We do not want a "Spring Break Party Group"to wreck this. One week's rental income on a bad client would cost us a lot more than the dollars we could collect. To that extent, we screen all our prospective clients. We always calls them and speak with them and do not rely upon email alone. We reinforce that this is a private residence in a quiet community. On more than one occasion she has politely told prospective clients "No" because they were clearly not going to respect our property or our neighborhood. The clients we gravitate towards are the ones with needs similar to our own. We tend to rent to multi- generational families that are attracted to our stand-alone casita (typically for the grand-parents) and the children's gear we stock. Our second most popular category is golfing destination foursomes because we can comfortably house the entire group and they are usually home to sleep only-they eat out, play golf for four days and leave. In our short-term lease agreement,we clearly state that any substantiated neighbor complaints will result in a forfeiture of the security deposit3. In the past three and a half years,we have not had to forfeit a security deposit. And yes, our neighbors have our cell phone numbers, home numbers and email addresses. We've established a protocol with them to resolve an issue before it becomes major. We hope that it is evident from our track record, our screening processes, our investments, and our clientele choices that we are compatible with single-family neighborhoods. We hope that the City also sees that we are making a positive contribution to the city. We strongly urge the City of Palm Desert to continue to allow short-term rentals and to maintain control over their neighborhoods by enforcing the Conditional Use Permits. Sincerely, CLVZIA Sarah Pallett and Joe Churchill 2 City of Palm Desert Comprehensive General Plan-Community Design Element 111-151 Goal 1 A high quality of life provided within a livable, sustainable and balanced community with a distinct character consistent with the City's status as a premier resort community and important commercial center. Goal 2 An aesthetically pleasing community appearance achieved on all levels, which preserves and enhances the City's resort identity,community image and natural setting. 2 Select Guest Feedback a) We had an absolutely wonderful time at your place! It was perfect for our large family,which included my lyr old niece and my in-laws, who enjoyed the privacy of the little house. We've stayed at more than 10 rental properties in California over the past 4 years and yours is heads and tails above every other property, including a luxury Lake Tahoe rental. Your attention to every detail—from providing shampoo and soaps to the gorgeous decor and landscaping to the practicalities of great kitchenware and appliances—were deeply appreciated. Frankly, staying at your home was more like visiting a luxury inn run by an exceptional management team. I was impressed throughout with your great customer service, always friendly, helpful and highly responsive. In short, we loved it and plan to come again! Elise Cornille,San Francisco and Kentucky. b) Your home is nothing short of amazing! We had a wonderful, relaxing time. Everything was perfect!Thanks for allowing us to be guests in your home. We are already making plans to come back. My parents absolutely loved the guest house.They did not want to leave.The children never got out of the pool. The Hernandz Family. Rancho Cucamonga, CA. c) Boy it's a hot summer in the desert! Enjoyed the pool with the temperature hitting 107. Lovely home with all the amenities to make having an infant easier when traveling. Thank you for sharing your home! The Cikes, Vancouver, BC Canada. d) We had a wonderful time!Your place is so handy for everything. We came with completely different people this time and they love it too. Some of us walked to the courts [BNP Paribis Tennis Tournament]. Then we went to play tennis at the park. I'm sure we will be back! Valerie Hecker, Colorado. 3 3 Relevant Short-Term Lease Clauses • Renter and/or their guests shall not disturb, annoy, endanger, or inconvenience neighbors. This includes but is not limited to: parking areas,guests must not encroach on neighbors' lawn, mailboxes, driveway or parking area; noise levels, both inside and outside, especially music; late comings and goings that are noisy or disruptive; over-occupancy; unauthorized pets; unsupervised children; any failure to observe posted rules and regulations. Guests disturbing the quiet of others will be evicted with no refund and complete forfeiture of the security deposit. • Renter agrees that any guest who is found using drugs or allows others to use drugs on the premises will be immediately denied continued occupancy at these premises. • Renter and/or their guest shall not use the premises for any immoral or unlawful purposes, nor violate any law or ordinance, nor commit waste or nuisance on or about the premises. • Owner reserves the right to refund deposits, refuse rental or terminate occupancy if, in our opinion, the occupancy may be detrimental to the property. No refunds will be given if occupancy is terminated as a result of violation of our rental regulations or if the reservation was obtained under false pretense. 4 FROM :PMC FAX NO. :4154546201 Apr. 01 2010 09:15PM P1 RECEIVED Francis and Diana Parnell ,.vta PO Box 998 Ross,CA 94957 OMMIJNITY DEVELOPMENT DEPARTMENT 415-459-0771 CiTY OF PALM DESERT April 1,2010 Lauri Ayialan,Secretary Palm Desert Planning Commission City of Palm Desert 73-150 Fred Waring Drive Palm Desert, California 92260-2578 RE:Proposed limitation of short term residential rentals Dear Ms.Aylaian, I am responding to your legal notice regarding case number ZOA 10-68 to be heard on 4/6/10.We have owned property in Palm Desert for several years and pay transient occupation tax on our rentals just like hotels, motels and bed and breakfasts. Restricting residential rentals will have a significant financial impact on us and many other property owners who purchased property knowing they could subsidize their expenses with rental income. We do not accept rentals less than 7 days and rent almost exclusively to families. We should be able to use our property in this manner. This proposed change would have significant negative impact on the local economy. It would force homeowners unable to cover basic expenses to sell their properties In this down economy. It would also create a higher vacancy rate, further lowering property values,decreasing property tax revenue, and harming local small businesses that are supported by people who vacation in Palm Desert through short term rentals. Many of these people are families who would not otherwise visit Palm Desert for periods of time less than a month if they had to stay in several hotel rooms. I know this personally,as we have five children and used to come to Palm Desert for vacations at least once every year for 15+years.We would never have stayed in hotels due to the cost and inconvenience; we always rented homes. This type of rental also helps the real estate market as many of today's Palm Desert homeowners are yesterdays"short term lessees. A more reasonable solution would be to prohibit short-term rentals of less than 7 days in residential zones.This more moderate plan would allow non-residential property owners to continue subsidizing their expenses through short- term rentals while addressing the City Council and Planning Commission's concerns that short term rentals are not compatible with single-family neighborhoods. Sincerely,1:0)40.44. Pi$ Diana D. Parnell Francis W. Parnell