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HomeMy WebLinkAbout2017-10-03 PC Regular Meeting Minutes CITY OF PALM DESERT PALM DESERT PLANNING COMMISSION MINUTES • TUESDAY, OCTOBER 3, 2017 — 6:00 P.M. COUNCIL CHAMBER 73-510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER Chair Nancy DeLuna called the meeting to order at 6:05 p.m. II. ROLL CALL Present: Commissioner Lindsay Holt Commissioner Ron Gregory Commissioner John Greenwood Vice Chair Joseph Pradetto Chair Nancy DeLuna Staff Present: Ryan Stendell, Director of Community Development Jill Tremblay, City Attorney Eric Ceja, Principal Planner Kevin Swartz, Associate Planner Ron Moreno, Senior Engineer/City Surveyor Monica O'Reilly, Administrative Secretary III. PLEDGE OF ALLEGIANCE Commissioner John Greenwood led the Pledge of Allegiance. IV. SUMMARY OF COUNCIL ACTION Director of Community Development Ryan Stendell summarized pertinent September 28, 2017, City Council actions. V. ORAL COMMUNICATIONS None MINUTES PALM DESERT PLANNING COMMISSION OCTOBER 3, 2017 VI. CONSENT CALENDAR A. MINUTES of the Planning Commission meeting of September 19, 2017. Rec: Approved as presented. Upon a motion by Commissioner Greenwood, second by Commissioner Gregory and a 5-0 vote of the Planning Commission, the Consent Calendar was approved as presented (AYES: DeLuna, Greenwood, Gregory, Holt, and Pradetto; NOES: None; ABSENT: None). VII. CONSENT ITEMS HELD OVER None VIII. NEW BUSINESS None IX. CONTINUED BUSINESS None X. PUBLIC HEARINGS A. REQUEST FOR CONSIDERATION to recommend approval to the City Council of the proposed amendments and/or propose new amendments to Chapter 5.10 Short-Term Rentals for enforcement, operational and separation requirements, and communication for short-term rentals within the City of Palm Desert. Mr. Stendell noted the presentation is going to be presented by Mr. Swartz and himself. Technically, the Planning Commission does not have purview over the regulations in Chapter 5 of the Palm Desert Municipal Code (PDMC) for short- term rentals (STRs). However, STRs are one of the largest land use issues the City has dealt with in a very long time. He stated staff felt it was appropriate to bring this item before the Planning Commission for their input before moving it forward to the City Council. To clarify, Mr. Stendell stated that staff is requesting a recommendation on the most prudent way to handle STR issues within the City of Palm Desert. He proceeded with a PowerPoint presentation and presented a summary of Palm Desert zones and housing types. Associate Planner Kevin Swartz continued with the PowerPoint presentation and outlined the salient points of the staff report (staff report is available at www.cityofpalmdesert.org). At the end of the presentation, he offered to answer any questions. 2 GAPlanning\Monica OReilly\Planning Commission\2017\Minutes\10-3-17.docx MINUTES PALM DESERT PLANNING COMMISSION OCTOBER 3, 2017 Commissioner Lindsay Holt asked how successful the service that currently identifies unpermitted STRs is. Mr. Stendell responded that there is no statistical data on how successful the service being provided is because it is not tracked. He believed there are a fair amount of people operating without a permit. Commissioner Holt inquired if there is a number of how many STRs are operating without a permit. Mr. Stendell replied no. Commissioner Holt asked how well the hotline currently works. How many complaints are received? Mr. Stendell said the City received 73 complaints through the hotline in the year 2016. However, there are complaints that are not reported because people do not know whether to call the City, the Police Department, or people talk directly to the neighbor. With that said, communication is an important part of moving forward for STRs to be successful. Commissioner Holt asked if the complaints are coming from the same STIR owner or are the complaints throughout the community. However, the higher the density of STRs in an area the more complaints there would be, such as in Palm Desert Country Club. Mr. Stendell replied that is a fair statement. Commissioner Holt asked how many code officers are available at any given time to respond to a complaint during the day and night. Mr. Stendell responded there are four code officers. At night, STIR calls rollover to the Police Department unless there is a special beat, which means the Police Department will respond if there is an availability of officers. Commissioner Holt inquired if the ordinance is passed and fines are collected, she assumed that would allow for at least one code enforcement officer to be available during the nighttime hours to respond to complaints. Mr. Swartz replied that is correct. Staff is also proposing increasing the annual STIR application fee. Commissioner Holt asked how the City would collect fines, and what would happen if the fines are not paid. 3 GAPlanning\Monica OReilly\Planning Commission\2017\Minutes\10-3-17.docx MINUTES PALM DESERT PLANNING COMMISSION OCTOBER 3, 2017 Mr. Stendell responded that the fine is levied on the property owner. If the fine is not paid, a lien would be placed on the property. He added that the proposed ordinance is written so an owner, or in special circumstances, the tenant could also be fined. Commissioner Holt asked if a STR operator/owner could be fined when they do not respond to a complaint within 30 minutes. Mr. Swartz replied that is correct. Commissioner Holt asked if the City is going to monitor the on-site meet and greet at check-in. Mr. Stendell answered that the on-site meet and greet at check-in is the City's good intention; however, it might be hard to enforce. Commissioner Holt said she knows of other cities that have banned STRs. She asked how legally and successfully have they been in banning STRs. Mr. Stendell replied that other cities have been successful. There has been ongoing litigation; however, certain cities are taking tough stances on STRs and have been successful. Commissioner Holt asked if Palm Desert looked at banning commercially-owned STIR units. Mr. Stendell responded commercially-owned STIR units are hard to enforce because there is always a different way to mask a property's ownership. Commissioner Holt inquired if the map that shows all the STRs in Palm Desert available to the public. Mr. Stendell replied yes. He said staff created an entire section related to STRs on the City's website and noted that the City is trying their best to communicate with the community. Commissioner Holt asked if there are any safety concerns with making the map available to the public. Mr. Stendell replied no. It was noted that addresses were not shown on the map. Commissioner Holt clarified that code officers do not respond to complaints within gated communities/homeowners' associations (HOAs). Mr. Swartz replied that code officers do respond to complaints in gated communities/HOAs. 4 GAPlanning\Monica OReilly\Planning Commission\2017\Minutes\10-3-17.docx MINUTES PALM DESERT PLANNING COMMISSION OCTOBER 3, 2017 Commissioner Holt asked if code officers would respond to complaints under the proposed ordinance. Mr. Swartz replied yes. Vice Chair Joseph Pradetto asked what the revenue generated by STRs is. Mr. Swartz responded that for Fiscal Year 2016/2017 the revenue generated by STRs was approximately $1.8 million. Vice Chair Pradetto asked if the $1.8 million consists of both transient occupancy tax (TOT) and registration fees. Mr. Swartz replied that the $1 .8 million is only from TOT. Vice Chair Pradetto inquired how much of the $1 .8 million is earmarked for the enforcement of STRs. Mr. Stendell responded that currently there is no specific allocation of STR funds. Funds go to the General Fund and the City Council goes through the budget process to allocate the funds. Vice Chair Pradetto asked if there is any way to determine that the STR funds are being spent to improve enforcement staff ratios or park facilities, etc. He asked if it is whatever $1.8 million could afford the City Council. Staff replied that is correct. It was noted that the City Council would need to allocate funds for a specific purpose. At the study session held on September 27, Chair DeLuna believed the City Council discussed the allocation of funds received from STRs to pay for additional code enforcement officer(s). She asked if that is correct. Mr. Stendell responded that the City Council and staff are looking at all options to increase code enforcement. Vice Chair Pradetto commented that many residents are in opposition of STRs in Residential Single Family (R-1) and Residential Single Family/Mixed (R-2) zones. He asked if the residents have expressed an interest in foregoing the $1.8 million the City receives for the outright ban of STRs in the R-1 and R-2 zones. Mr. Swartz replied that the residents do not care for the revenue generated from STRs. Residents have expressed that their quality of life has diminished due to the STRs. 5 GAPlanning\Monica OReilly\Planning Comm ission\2017\Minutes\10-3-17.docx MINUTES PALM DESERT PLANNING COMMISSION OCTOBER 3, 2017 Commissioner Greenwood asked staff to elaborate on the City's current Noise Ordinance. Mr. Swartz responded that noise is measured on a decibel level. Therefore, from 7:00 a.m. to 10:00 p.m. the allowed level is 55 decibels. After 10:00 p.m., the decibel level goes down to 45 decibels. He noted that a reading has to be done in 10-minute increments. He also noted that the Noise Ordinance states a complaint could come down to a reasonable judgment call by the code enforcement officer. Commissioner Greenwood noted that the STIR ordinance states no music after 10:00 p.m. However, a renter/tenant could arrive home late and start a pool party at midnight. He asked if it is correct that situation would be a violation of the Noise Ordinance. Mr. Swartz replied yes, if the renter/tenant has music playing. If they have no music playing and they are quiet in the pool, then there should not be a complaint. Commissioner Greenwood referred to the administrative fines and asked if there is an ability to place restrictions or time limits on the first fine. For example, if the fine is not collected within a certain period of time, the permit could be revoked. Mr. Stendell believed there are mechanisms already in place on how to handle fines and permits. However, if the Planning Commission would like to include restrictions and time limits, staff could incorporate them into the recommendation to the City Council. Commissioner Greenwood asked staff to elaborate on STIR parking. Mr. Swartz responded that the STIR ordinance states that a renter/tenant must park within the garage, carport, or driveway. He did note that anyone is allowed to park on a public street. Chair DeLuna inquired if there is a limit on the number of cars based on the number of bedrooms in the house. Mr. Swartz replied no. Chair DeLuna suggested limiting the number cars. Such as, a three-bedroom STIR unit cannot have more than three cars. Commissioner Holt interjected that all cars have to fit in the garage, carport, or the driveway. Mr. Swartz replied that is correct. 6 GAPlanning\Monica OReilly\Planning Commission\2017\Minutes\10-3-17.docx MINUTES PALM DESERT PLANNING COMMISSION OCTOBER 3, 2017 Commissioner Greenwood pointed out there is also a section in the STR ordinance referring to daytime parking usage. Potentially during the day, a seven-bedroom house could have 20 occupants. Commissioner Holt disagreed with the daytime parking usage and felt there should be one limit, which she would talk about later in the meeting. Commissioner Ron Gregory inquired if an HOA could supersede any rules the City puts in place. Mr. Swartz replied that an HOA cannot supersede the STR ordinance; however, they are able to make stricter rules than the City's ordinance. Commissioner Holt inquired if an HOA could revise their Declaration of Covenants, Conditions and Restrictions (CC&Rs) to prohibit STRs. Mr. Swartz replied yes. However, he understood it could be an expensive process and an HOA would need to have 80 percent of votes from property owners. Commissioner Holt asked if it is the same for HOAs that only have an HOA to pay for a street lamp. Mr. Swartz replied yes. He noted that there are a lot of HOAs in the City that are not gated. Commissioner Holt inquired if there was any thought to prorate the fines on a per bedroom basis. For example, if a house is rents for $15,000 for five days and they get fined $1,000. She said people are going to take the $1,000 hit and say it is okay for 30 people to stay in the STR and who cares about the neighbors. Mr. Swartz said that they looked at that; however, they felt having a universal fine structure would be the best way to implement the penalties. Commissioner Holt asked what happens when there is a party house with 20 to 30 people and there are repeated noise violations. Is there a way to evict the renters/tenants from the house? Mr. Stendell responded he is not sure if the people could be evicted, but the City could elevate the response and get the Police Department involved. Commissioner Holt asked if it helps to remedy a situation when the Police Department shows up to a party house. Mr. Stendell replied yes. 7 GAPlanning\Monica OReilly\Planning Commission\2017\Minutes\10-3-17.docx MINUTES PALM DESERT PLANNING COMMISSION OCTOBER 3, 2017 Commissioner Holt asked if it is a matter of getting the Police Department or a code officer to the STR within a reasonable amount of time. Mr. Stendell replied that is correct. Commissioner Holt inquired if the proposed STIR ordinance does not require a home inspection before receiving a STIR permit. Mr. Swartz replied that is correct. He explained there is language in the STIR ordinance that a code officer may inspect a home if needed but not required. Commissioner Holt stated if they do not agree with the buff and separation requirements, there is no need for the temporary permit or on-site owner permit. Mr. Swartz believed there is still a need for an on-site owner permit. Commissioner Holt asked how an on-site permit holder would be treated differently than a regular STIR permit holder. Mr. Swartz replied that the on-site permit holder would not be treated differently. They would still need to go through the same process. They discussed maybe the permit fee of an on-site owner STIR should not be as high as a year-round permit. Commissioner Holt asked if the Planning Commission does not recommend the buffer and separation requirement, does staff still want the Commission's comments and opinions on the temporary STIR permit. Mr. Swartz replied yes. Commissioner Holt asked what kind of changes staff could make to the STIR ordinance without the changes going back to the Planning Commission and the City Council. Mr. Stendell responded that the only time staff could make minor changes is if the City Council directs the City Manager or the City Attorney to make non- substantive changes. He noted that the PDMC and Zoning Ordinance, which are living documents, are frequently amended. Mr. Swartz added that the City Council and staff would not feel comfortable making changes at an administrative level. The City Council and staff would like to send it through the process again. Commissioner Holt asked if no changes could be made to the ordinance, but staff could make changes to the application, application process, and application permit fees. 8 GAPlanning\Monica OReilly\Planning Commission\2017\Minutes\10-3-17.docx MINUTES PALM DESERT PLANNING COMMISSION OCTOBER 3, 2017 Mr. Stendell replied yes. They could make changes at an administrative level to the application; however, the fees are tied to certain nexus points. Commissioner Holt asked if staff could make changes to the application and tracking process if the public had concerns that were not addressed. Mr. Stendell replied yes. Vice Chair Pradetto asked if he rented a STR and wanted to have a party that exceeds the maximum occupancy, is there a mechanism to apply for an event permit or something that would allow him to have the party. Mr. Swartz replied no. The City does not issue a Temporary Use Permit (TUP) for events at residential homes; only for events at commercial properties. Commissioner Gregory referred to the requirement for the STIR operator/owner meet and greet the renter/tenant, and asked if it also pertained to an owner's representative. Mr. Swartz replied that is correct. It could be the owner's representative or property manager. Commissioner Holt asked where the buck stops when it comes to nuisance abatement. Is it the City, owner, or operator? Mr. Stendell responded that it is the operator working with the City. The City's contact person will be the STIR operator, and the City would seek compliance from the operator listed on the application. Commissioner Holt asked if the City could deny an application based on who the applicant is and prior experience with the applicant. Mr. Swartz said there is language in the STR ordinance. The City Manager has the discretion to deny a STIR application, if it happens to be a repeat violator. Commissioner Greenwood noted there are three proposed administrative fines within a 12-month period. If a STR operator is in compliance, could the operator accrue all three fines over multiple days or would they only get fined once. Mr. Swartz believed the STIR operator could accrue the three fines over multiple days. Commissioner Holt asked if the fines would be for the same violation or multiple violations. 9 GAPlanning\Monica OReilly\Planning Commission\2017\Minutes\10-3-17.docx MINUTES PALM DESERT PLANNING COMMISSION OCTOBER 3, 2017 Mr. Stendell responded that the City Attorney stated theoretically the City could levy the fines. Therefore, a STR operator could be fined $1 ,000 for the first violation, $3,000 for the second violation, and $5,000 for the third violation over multiple days. Chair DeLuna declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. MR. KURT DAVIS, Palm Desert, California, stated he lives next to a STR and complained about the loud music. The Police Department has gone out to the property four different times every other weekend. The STR has affected his quality of life, and he is concerned the value of his home will depreciate and retaliation from the tenant(s). Chair DeLuna asked the audience to not applaud and thanked them for their cooperation. MR. ROBERT KANE, Palm Desert, California, said he and his wife were impacted by a STR approximately two years ago. Their quality of life has changed now that they are bound on two of three sides by STRs. He referred to the chart that indicated the housing types and asked when is the 5.33 percent going to be enough in the R-1 zone. He stated the $1 .8 million in revenue should be spent on enforcement and STR owners should be held accountable. MS. JANINE JUDY, Palm Desert, California, stated there are a total of three STRs owned by the same person, with one STR directly behind her home. She moved from Desert Hot Springs to Palm Desert to feel safe; however, she no longer feels safe with the increase of strangers, noise, and traffic at all hours in her neighborhood. She noted that her neighborhood is zoned R-2 with only a 300-foot buffer. She suggested STRs not be allowed in single-family residential areas and asked the Planning Commission to consider a 500-foot buffer in all residential zones. MR. IAN PATTERSON, an executive for Vacation Palm Springs, Palm Desert, California, stated he has been in the industry for seven years. He understood there are issues with STRs, but there are also positives. He employs over 200 people locally with full benefits. He said there is a lack of enforcement and is in favor of enforcement. He is also in favor of the on-site meet and greet and heavy fines. Regarding HOAs, it takes a 67 percent vote to make a CC&Rs change and if you purchase a home prior to a CC&R change, that person will fall under the old CC&Rs. He said they want to coexist, live by the rules, and be part of the community. He offered his business card so people can contact him so they can see what he and his staff do. 10 GAPlanning\Monica OReilly\Planning Commission\2017\Minutes\10-3-17.docx MINUTES PALM DESERT PLANNING COMMISSION OCTOBER 3, 2017 MR. JEREMY OGUL, a representative for HomeAway, Palm Desert, California, voiced his concern with the 500-foot proximity limit. He encouraged the Planning Commission to ask the following questions: 1) where did the limit come from; 2) how did they arrive at 500 feet; and 3) what is the long-term impact for the STRs located in R-1 and R-2 zones. He felt the proximity limits is an unfair system. He stated the most effective way to address concerns with noise and party houses is to have a rapid enforcement response and heavy fines. HomeAway supported the ordinance without the proximity limits. MS. LEILA BLEEKER, Palm Desert, California, stated that her friend rents a room in her home to help her family make ends meet. She commented that STRs are the new economy and it is what the new generation wants. Her friend makes approximately $200 a month from renting their room, and a $1 ,000 fine would put her out of business. She felt the fine to be restrictive and unfair. She also felt the requirement to notify neighbors of a STR unfair since long-term rental landlords do not have to notify neighbors. In addition, the 500-foot restriction would be a backdoor ban. MR. PAUL HERRERA, on behalf of the California Desert Association of Realtors, they felt the proposed STR Ordinance meets the challenges posed by people on many sides. He stated the members of their association support 10 and a half pages of the ordinance. However, they are concerned with the buffer and separation requirements. A track record should matter more than whether another property three doors down or a block over has a permit. Therefore, they requested the language on the buffer and separation requirements be removed and have an emphasis on enforcement and allow the penalties to properly work to address the concerns of the community. MS. JANN BULLER, Palm Desert, California, stated she is in favor of the on-site STR operator, subject to compliance with the ordinance provisions. She said it enables individuals to use their own homes as it suits their needs, including supplementing their incomes. She is in favor of HOAs with CC&Rs to make decisions on whether or not to allow STRs within their boundaries. She is in opposition of STRs outside of HOAs where the owner is not on-site in R-1 zones. She expressed a real neighborhood requires actual neighbors to have a safe and pleasant community. MS. CHRIS SPEAR, Palm Desert, California, said she is a vacation home manager so she understands both sides of the STR situation. She explained that she has met lots of wonderful people that are in the valley for a weekend or a week who are not here to party. She felt party houses could be enforced. She also felt the Temporary STR Permit would not be a great solution. She said those are the people who want to make a quick buck. She believed they could coexist; it is all about respect. 11 GAPlanning\Monica OReilly\Planning Comm ission\2017\Minutes\10-3-17.docx MINUTES PALM DESERT PLANNING COMMISSION OCTOBER 3, 2017 MR. JIM KANE, Palm Desert, California, stated he and his neighbors felt the City Council approved STRs in 2012 to help alleviate economic pain as a result of the collapse of the housing market. However, no one saw the tidal wave of STRs that would be sparked by the exponential growth of the Airbnb world. With that said, they adamantly oppose the existence of any STRs in the R-1 and R-2 zones. STRs have become a cancer in their once serene neighborhoods. He asked the Commission to deny the STR ordinance in its entirety, and recommend to the Council to do the same and restore the ban of STRs in R-1 and R-2 zones. Commissioner Holt interjected that it is common to prohibit applauding, booing, sneering, etc. during the City Council and Planning Commission meetings. She said the Planning Commission does not want anyone in the audience to feel intimated regardless of the opinions by others. MR. STEVE NASH, Palm Desert, California, stated there are five STRs within a block from his home. He is uneasy raising his 11-year-old daughter in an area where unknown people go into their neighborhood on a weekly basis. He said R- 1 and R-2 zones are exclusively for residential purposes. He noted that the proposed ordinance is an attempt to regulate a commercial activity. STRs are owned and operated by companies and individuals as income producing businesses. He voiced there is no logical way for permitting a commercial business in a residential neighborhood. MS. ATHENA MARTINEZ, Palm Desert, California, voiced that STRs should not be banned, specifically on-site rentals. She explained on-site STR operators are able to make extra money to pay for kids' college tuition, improvements to their home, insurance, and care for aging parents; not everyone has the extra income. She said a casita or a one-bedroom rental should be allowed with a different permit that does not cost $300, which is too much if you are only making about $200 a month. She disagreed with the requirement to notify neighbors if you are only renting a bedroom. She stated it is wrong that no one knows where the $1.8 million in revenue has been spent. The City needs to use the money for enforcement. MR. JOHN CURAN, Palm Desert, California, communicated that the City's Zoning Ordinance requires zoning districts to be in agreement with the General Plan. The General Plan established R-1 and R-2 zones as strictly residential with limited exceptions permitted by a Conditional Use Permit (CUP). The Planned Residential (PR) zone was established for residential/hotel commercial, mixed- use geared to the visiting public. He pointed out that 840 STR units are in the PR zone and 212 in the R-1 zone, which is the major source of the controversy for STRs. He voiced that the General Plan does not state that commercial uses will be integrated into residential areas. 12 GAPlanning\Monica OReilly\Planning Commission\2017\Minutes\10-3-17.docx MINUTES PALM DESERT PLANNING COMMISSION OCTOBER 3, 2017 MR. DAVID TOLTZMANN, Palm Desert, California, stated he has a non- permitted five-bedroom, six-bath STR house directly behind his home. He complained about the noise happening almost every weekend. One weekend he called the hotline, which nothing happened the first hour. He called the hotline again with no additional information. After the second call, he decided to call the Police Department. A few days later he found the house was marketed on four different websites. He notified the Code Enforcement Division so the appropriate action could be taken. He mentioned he met with Councilmember Susan Marie Weber to let her know of the illegal STR. He found out that the owner was awaiting a permit, and allowing friends and family stay at the home. He noted the home is booked 80 percent of the time at a minimum of $750 a night and asked who lets family and friends stay for free in a million dollar home. He stated the company the City hired to find unpermitted STRs is not working. In addition, there are drones flying over his property, overflow of trash, and an overflow of parking. MR. ROB LUCAS, Palm Desert, California, had the Planning Commission listen to a recorded message from a STR owner threating Mr. Lucas for calling the City numerous times. He noted that the guy who left the message was part of the Ad Hoc Committee who took part in drafting the regulations for the STR ordinance. He stated he has been dealing with his neighbor for a year and there has been no enforcement. He voiced a commercial enterprise does not belong in an R-1 and R-2 zone. A 30-day minimum stay in a STR unit would solve the problem. MS. DENISE TOLAND, Palm Desert, California, stated she lives next to a STR unit. When she purchased her home, she expected a neighbor; however, a Palm Springs vacation rental realtor handed her a business card. She was then told by the realtor that it could be difficult living next to a STR and provided her with a 24-hour phone number if she needed help. However, the realtor should have added, "you are now the on-site manager." Ms. Toland complained about the noise, trash left behind, having to give directions, and answer tenant questions. One day, an older couple was in her hallway because they had mistaken her home for the STR unit. She has had sleepless nights and her health has plummeted. She indicated that the STR unit was sold and now has a caring neighbor. MR. BRUCE POINTER, Palm Desert, California, said he has five STRs within sight or sound from his property. The STRs generate lots of noise and traffic, and there are weekends where assistance from the Police and Fire Departments are needed, which are an excessive use of the City's public safety services. He voiced STR businesses are affecting the elderly and long-term residents for profit and pleasures of non-residents that do not care for the neighborhood. He asked that the Planning Commission consider a 30-day minimum stay for STRs. 13 GAPlanning\Monica OReilly\Planning Commission\2017\Minutes\10-3-17.docx MINUTES PALM DESERT PLANNING COMMISSION OCTOBER 3, 2017 MS. TINA GOLDBERG, Palm Desert, California, voiced STRs are a business that should not be in a residential zone. She shared that a STR operator was cited for noise violations. However, the owner appealed the citation and it was necessary for her to attend the hearing. If she did not attend the hearing, the citation would be dismissed. She requested a different hearing date because she had other appointments scheduled for the same day, but she was told it was not possible. The day of the hearing, she showed up and the STR operator did not. During the hearing, the code officer was asked many questions by the hearing examiner; however, the officer's response was "I don't know and will have to check into that." She stated she was prepared for the hearing but the code officer was not. She then called the Code Enforcement Division to find out the outcome of the hearing and she was told the STR operator had won. She asked how it was possible since he did not show up to the hearing. She found out that the STR operator was given another hearing date, yet she was not given that option. She felt the City is unorganized or showing preference. She asked the Planning Commission to consider reverting to the 30-day minimum stay for STRs. MS. SHERRELL SUTHERLAND, Palm Desert, California, mentioned she met with several City Council members and Mr. Swartz to gauge a plan regarding code enforcement. There are four City code officers that have other duties. She said the plan is to add a code officer to work on the weekends until 1 :00 a.m.; however, she asked what happens if a call comes in after 2:00 a.m. She stated the only way to enforce STR regulations is to have someone respond to the calls. She asked if the City has talked to the police and the city attorney to find out how the City is going to enforce the new STR Ordinance. She briefly spoke about STR issues in other cities and hoped the Planning Commission does not recommend expanding the STR Ordinance. MS. CHRISTEL PROKAY, Palm Desert, California, stated she has a petition with approximately 1,500 signatures opposing the STR ordinance. The signatures are from local residents and local businesses that pay local taxes. She has talked to about 1,800 people and 80 percent of them do not want STRs in Palm Desert. The long-term residents want to live in peace and quiet and enjoy their neighborhoods and prayed that the City does not transform into an Airbnb territory. MR. PAUL MURPHY, Palm Desert, California, briefly mentioned STRs on the Oregon coast. He noted that a vast majority of STRs in Palm Desert are not owned by Palm Desert residents. He commented he helped a young gentleman carry 20 bags of ice into a STR house across the street from his home. He asked him why they didn't go to a hotel. The gentleman responded that they would've been kicked out the first hour if they stayed at a hotel. Lastly, he mentioned tenants staying in the STR house are blocking his mailbox so the mailman cannot deliver his mail. He complained to the City and they sent someone to paint his curb red. He said that is great, but taxpayers are paying for it. 14 GAPlanning\Monica OReilly\Planning CommissioM2017\Minutes\10-3-17.docx MINUTES PALM DESERT PLANNING COMMISSION OCTOBER 3, 2017 MR. VAN TANNER, Palm Desert, California, said he has a long history in Palm Desert and serving the community. In 2012, the City Council passed an ordinance that changed the definition for STRs to anything less than 28 days, but a minimum of two nights and three days. The change created an increase from 50 STRs in 2009 to 1,228 in 2012, with an increase in revenues of approximately $1 .8 million. He stated the increase in STRs has diminished the quality of life for people that live next to a STR. To give neighborhoods back to permanent residents, he asked the Planning Commission to consider a minimum 30-day STR definition with no CUP available. He voiced he would look to see a complete ban of STRs in Palm Desert in non-gated communities. MR. TIM SULLIVAN, Palm Desert, California, communicated his family has experienced from their backyards STR parties, raucous family reunions, and generally, alcohol-fueled celebrations. Therefore, he requested that the Planning Commission reject the STR ordinance and revert to its successful 30-day minimum stay for STRs. He noted that there was no local hotel representation as part of the process, in which they specialize in short-term stays. He stated to reject the proposed ordinance and restore the integrity of their neighborhoods they all cherish. MS. DONNA AULT, Palm Desert, California, moved from Orange County to Palm Desert for the peace and quiet the desert provides. She and her husband are deeply disturbed by the commercial properties called STRs, which are changing their neighborhoods. She said companies own STRs and they are making a profit from the neighborhoods permanent residents have created. STRs create lower property values and a poor quality of life. Ms. Ault expressed that STRs are not held up to the same standards, regulations, or liabilities as hotels. She asked that the Planning Commission make the right decision for all and return to the 30-day minimum stay for STRs. MR. TIM SKOGEN, Palm Desert, California, requested that the Planning Commission correct the negative impact of STRs in their residential neighborhoods. He stated their neighborhoods have degraded and devolved since the ordinance was changed five years ago from a 30-day minimum stay to a two-day minimum stay. It's a mistake that needs to be fixed. He asked that the Planning Commission recommend to the City Council to rescind the current ordinance and return to the 30-day minimum stay to protect the current and future residents from the blight of short-term party rentals. MR. ALAIN PINEL, Palm Desert, California, said the Planning Commission's primary responsibility is to the people who live in Palm Desert. The Palm Desert residents work, shop, and pay taxes in Palm Desert. He stated STRs has become a spreading cancer. He asked that the City put a stop to it and reclaim Palm Desert to protect the quality of life of their residents. 15 GAPlanning\Monica OReilly\Planning Commission\2017\Minutes\10-3-17.docx MINUTES PALM DESERT PLANNING COMMISSION OCTOBER 3, 2017 The Planning Commission took a break at 8:17 p.m. and reconvened the meeting at 8:27 p.m. MR. RICHARD FOLKERS, Palm Desert, California, stated he is surrounded by STRs. He mentioned there is a property for sale on the corner of Joshua Tree Street and Juniper Street. He is concerned with the property being sold and potentially becoming a party house. He also noted there is a hotline to call; however, he does not know the number or where to find the number and hoped someone could give him the number. Lastly, he said going from a 30-day minimum stay to a two-day minimum stay was the wrong thing to do. MS. NICOLE ZAMBON, Palm Desert, California, said she in favor of quality STRs that will maintain and enhance the quality of Palm Desert. She currently manages 30 vacation rentals in Palm Desert. The majority of the guests are couples and families looking for a relaxing getaway. She said the rentals she manages belong to second-home owners, and the owners do not want to see their homes trashed or damaged. She felt the proposed STR ordinance is subjective and arbitrary. She also felt the buffer of 500 feet is restrictive. She stated she lives in south Palm Desert and would like to see quality tourists more than tumbleweeds in the months of May through October. She asked that the Planning Commission to consider a three or four-night minimum stay instead of two nights. MR. MARK GREEN, Palm Desert, California, commented that he is in favor of allowing some STRs, with restrictions. He felt if a homeowner lives in the home and wants to rent out a bedroom or casita, they should be allowed to rent as a STR. He commented noise disturbance comes from homes with large groups and the owner is not present. To allow a homeowner to rent a room or casita, it helps that person pay the mortgage; therefore, a distinction should be made. He also felt having STRs adds economic dynamism and prosperity to Palm Desert so the City shouldn't turn their backs completely to STRs. MS. KATHLEEN SUNSHINE OBRIEN, Palm Desert, California, indicated she is a realtor and felt they could all work together. She has never had the experiences people are sharing with the Planning Commission. She noted that most of the problems are coming from STRs that are not permitted. She felt STR operators should take a training class and be required to have a rental book at the property, with the City's rules and regulations. She briefly mentioned how they handle STRs for Goldenvoice and Palm Desert Country Club. Lastly, she believed the two-night minimum stay should be changed to a four-night minimum stay and they could all work together. MS. DEBRA VOGLER, Palm Desert, California, voiced to not have STRs in Palm Desert. She asked the Planning Commission to consider the following to avoid neighborhoods from becoming party houses: 1) a STR could not be rented for less than 30 days; 2) the amount of rent should commensurate with what a 16 GAPlanning\Monica OReilly\Planning Commission\2017\Minutes\10-3-17.docx MINUTES PALM DESERT PLANNING COMMISSION OCTOBER 3, 2017 month's stay would cost at a comparable hotel; 3) a rental contract signed by the renter and the landlord/owner and filed with the City before they are able to stay on the property; 4) have a separate fee to cover the administration for maintaining the contracts. If paperwork is not filed properly, then a fine should be paid before the property could be rented out again; 5) taxpayer money, including property taxes on rental properties, should not be used to promote or enforce code compliance for a specific business segment or sector, such as STR businesses. Therefore, STR businesses should be charged a transient accommodations tax sufficient to enable the city to hire several full-time code enforcement officers; 6) residents that are not using their homes as a STR property should not be forced to use their own funds to correct or mitigate issues arising from disturbance caused by STRs; 7) STR code violation fines should be paid in full before the property could be rented out again; 8) a STR renter that incurs more than one violation in a 12-month period should not be permitted to stay as a guest or renter in a STR property for a period of 24 months from the day of the first infraction; and 9) City staff work with the Coachella Valley Economic Partnership to get more sources of revenue. MR. PAUL LOUGEE, Palm Desert, California, indicated he owns a property management business and he sees both sides of STR arguments. He felt the proposed regulations make sense. However, it comes down to everyone working with one another and being respectful. He stated the 500 buffer is arbitrary and it will penalize the good STR operators. MS. GAMEELA VERONA, Santa Monica, California, stated she invested all her money to buy a STR and closed escrow in January 2017. She was unable to get a STR permit due to the moratorium established in the same month. Since she bought the home over the market value price because she was buying a business, she is unable to sell the house for the same price. She cannot rent the house long-term because she cannot get enough money from a renter to cover the mortgage payment and bills. She felt if the City had proper enforcement and strict fines, it would alleviate some of the problems with STRs. MS. NATALIE HENNA, Palm Desert, California, said she is a nurse and she has elderly patients that have STRs. Her elderly patients depend on the income from STRs to pay for medical expenses or to help their family. She heard many disheartening stories regarding STRs, and asked where the enforcement is. She stated the revenue from STRs should be put toward increasing enforcement and do not completely ban STRs. MR. JIM PEARCE, Palm Desert, California, stated he manages about 90 properties in Palm Desert in PR zones. He noted that there are flaws in the proposed ordinance. He felt a person who wants to rent a property for six months or less should get a permit, otherwise there will be misrepresentation and people will take the risk of proceeding without a permit. He commented that the STR moratorium has done more to encourage STRs to go underground. The other 17 GAPlanning\Monica OReilly\Planning Commission\2017\Minutes\10-3-17.docx MINUTES PALM DESERT PLANNING COMMISSION OCTOBER 3, 2017 flaw in the ordinance is the 200-foot notice requirement. It is not defined as just applicable to R-1 and R-2. He noted that people in PR zones are going to be buried with notices. Regarding HOAs, they should allow or not allow STRs. If not, it will seem like HOAs could opt-in or opt-out of the STR ordinance. Lastly, all STIR permits should expire on one date in the middle of the summer. If not, he will find himself in a technical violation due to administrative errors and subject to a$1 ,000 fine. MR. RON MARRA, Palm Desert, California, said he lives in a PR zone. He noted most concerns are in the R-1 and R-2 zones. He stated his condominium is not a zone; it is his residence. Therefore, he does not know why his residence should be treated differently from a house that is a residence. He voiced if there are going to be STR regulations in R-1 and R-2 zones, the regulations should be placed in all zones. MR. DAVID LUNGLEY, Palm Desert, California, complained about loud music, parking issues, and trash left behind by tenants staying in the STR by his home. He commented that the Code Enforcement Division was very helpful and he was informed of the moratorium; however, the STR parties still go on. MS. KIM HOUSKEN, Palm Desert, California, mentioned she lives in south Palm Desert. She voiced her concern with STRs changing the character of their neighborhoods. She mentioned there are two STRs by her house. One STR advertises that it sleeps 15 for $199 a night, and the other STIR advertises that it sleeps 12 for $189 a night. She noted the City would be making more in TOT revenue if 12 to 15 people were staying at a hotel because they would need up to three hotel rooms. She felt there is not an issue if an on-site STR owner wants to rent a bedroom or casita. Additionally, she does not feel there is an extreme hotel shortage to allow STRs. With no further testimony offered, Chair DeLuna declared the public hearing closed. Commissioner Gregory commented neighborhoods are zoned for people to live in. STR operators are profiting off structures, which were created by investment, time, friendship, and neighborhood qualities of people that live there. It is also an easy way for STR operators to make money since the infrastructure has been paid for and looked after by the existing residents. He believed the issues with STRs inadvertently started in 2012 by the City Council not knowing the impact they would have. As a result, STRs have created stress for many homeowners, which is difficult to see. He felt most of the problems with STRs are in the R-1 and R-2 zones in which there should not be STRs. He noted that he does not have a problem with the on-site owner who would want to rent a room or a casita. He also does not have a problem with a 30-day minimum stay requirement. If the STR ordinance passes, Vice Chair Pradetto stated the fees for permits are far too low. He believed that the fees collected should go toward code 18 G:\Planning\Monica OReilly\Planning Commission\2017\Minutes\10-3-17.docx MINUTES PALM DESERT PLANNING COMMISSION OCTOBER 3, 2017 enforcement and TOT into the City's General Fund. He shared he does not live next to a STIR, but he lived next to two terrible neighbors that did not let him sleep and he was forced to move. He does not think the City is using any part of the $1.8 million in revenue to compensate any of its residents for the loss of sleep. If the City pursued to ban STR, he stated the City should take some time to learn from other jurisdictions. He felt that the investors who own STRs that do not live in the community have no right and should not be able to comment. In reference to STRs are a commercial activity and should be banned, he clarified that the City does allow some home base businesses and STRs completely violate the intent of home base businesses. He supported the on-site owner and temporary STIR as long as the owner is a year-round resident and not seasonal. Additionally, he supported restricting permanent STRs in R-1 and R-2 zones. However, potentially allow STRs, subject to a CUP. Commissioner Greenwood echoed both Gregory and Pradetto's comments. He commented that it would be premature to move an ordinance forward without having a firm hold on STRs. He would consider or recommend the moratorium remain in effect on STRs as it stands for a minimum of one full season. During the moratorium, implement enforcement procedures to see if they make a difference. STRs in PR zones made sense to him, and he felt HOAs should be able to decide what is best for their community. He did not feel comfortable with STRs in R-1 and R-2 zones. If the City were to move forward with the proposed ordinance, it would have to be with great caution. Vice Chair Pradetto inquired if permitted STRs are still operating during the current moratorium. Mr. Stendell replied yes. Vice Chair Pradetto asked if the number of complaints has decreased, increased, or been steady during the moratorium. Mr. Stendell believed the number of complaints has increased since the moratorium. Commissioner Holt asked staff to elaborate on the process a resident should follow when dealing with disorderly STIR tenants. Mr. Stendell responded that staff will update the City's website with the STIR hotline number (after-hours hotline: (760) 833-7998) and the correct procedure to report a complaint. He explained that once a call is in the system, each call is documented and given a case number. Commissioner Holt asked if the City notifies the STIR operator prior to the expiration of their permit. 19 GAPlanning\Monica OReilly\Planning Comm ission\2017\Minutes\10-3-17.docx MINUTES PALM DESERT PLANNING COMMISSION OCTOBER 3, 2017 Mr. Stendell replied yes. Commissioner Holt inquired if the City's rules and regulations are outlined in the Good Neighbor Brochure. If not, can the City provide information to the STIR operator so they can give to the tenants? Mr. Stendell replied yes. He felt the City needs to do a better job providing the information. Commissioner Holt expressed that the City needs to take action on the STIR ordinance. She believed the moratorium is doing more harm than good. She stated STRs are going to take place in Palm Desert, as they do in most vacation communities throughout California. However, STRs should happen legitimately and be transparent. She empathized for the residents whose quality of life has been impacted by STRs. She felt there is a burden placed on residents living next to STRs, and the City should alleviate the burden with the revenue from STRs. The City should also have a zero-tolerance policy for unpermitted STRs and the operators/owners who violate the ordinance through the use of heavy fines. She noted she does not see a problem with the on-site owner STIR. The problems are coming from the STRs in R-1 and R-2 zones, and no one should have to deal with disorderly neighbors no matter which zone they live in. She stated the City should be able to fine a STIR operator/owner the maximum combination of fines and revoke a permit in a single weekend. She said party homes cause neighbors to have sleepless nights, and she knows people buy a home in south Palm Desert because it is quiet. She believed that once the regulations are enforced by the Code Enforcement Division, enforcement of STRs should become easier. If the City Council adopts the ordinance, she listed the following considerations: 1) limiting the number of occupants during the day and night; 2) home inspections prior to the issuance of a permit; 3) an on-line tracking system for complaints; 4) limiting the number of permits a STIR operator/owner can have and limiting the number of permits in R-1 and R-2 zones; 5) reviewing the STIR ordinance in six months to one year from the date of adoption to make sure that the additional fines and enforcement of regulations are working; and 5) increasing the number of code officers during festival season and year-round. In addition, Commissioner Holt listed the goals of the STIR ordinance in the following order: 1) address concerns of residents by applying fines and regulations to prohibit noise, parking and safety concerns; 2) allow residents to earn income; 3) provide TOT for the City; 4) allow visitors an opportunity to stay in Palm Desert; and 5) create an environment encouraging property investment. With those goals in mind, she hoped the City Council will have an STIR ordinance that will work for everyone. She voiced if an STIR operator/owner or tenant threatens a neighbor; it should be punishable as well. She concluded by thanking City staff, the Ad Hoc Committee, and residents. 20 GAPlanning\Monica OReilly\Planning Commission\2017\Minutes\10-3-17.docx MINUTES PALM DESERT PLANNING COMMISSION OCTOBER 3, 2017 Chair DeLuna also thanked City staff and the community members. She communicated that a home is the most passionate issue for people. She mentioned she has lived in the desert for over 25 years. She has witnessed the climate in the desert change with the music festivals and tennis tournament. She felt the City needs to be responsive to the change in a responsible way to protect the citizens of Palm Desert. At the same time, people need to be aware of the issues with unpermitted STRs. If the City does not have some type of system in place or STRs are banned completely, the City is going to drive STIR operators/owners underground with no policies to regulate them. She noted that most of the complaints are coming from the R-1 zone, which she sees as an enforcement issue. She supported having a STR ordinance with provisions for increased enforcement. If STRs are banned and driven underground, Vice Chair Pradetto asked Chair DeLuna and Commissioner Holt what kind of operators do they foresee more likely to go underground. Commissioner Holt responded that she knows a lot of people who operate STRs underground. She believed a lot of them live in Palm Desert year-round and rent out their home during the music festivals. Vice Chair Pradetto felt the people most likely to go underground are those that live in the area full-time. He said he is in favor of allowing them to have a temporary permit as proposed by staff. Commissioner Holt understood the people that rent their home during the music festivals are the homes that get the most complaints. Vice Chair Pradetto noted that they live in the area full-time and would have to answer to their neighbors if there is an issue with the tenants. Chair DeLuna interjected that it goes back to an issue of enforcement. If the enforcement issue is solved, it would calm the residents down and increase their perception of quality of life. Commissioner Holt remarked if the enforcement does not work, then at that point you change the ordinance. She stated she did not agree with the buffer/separation requirements because she feels it does not resolve anything. Whether it is one to three disorderly neighbors, no one should live next to one disorderly neighbor. Therefore, it is a code enforcement issue. Chair DeLuna asked staff if they need a recommendation from the Planning Commission. Mr. Stendell replied yes. He asked the Planning Commission to make a recommendation based on the ordinance proposed by staff and give staff broad 21 GAPlanning\Monica OReilly\Planning Comm ission\2017\Minutes\10-3-17.docx MINUTES PALM DESERT PLANNING COMMISSION OCTOBER 3, 2017 or specific direction. Staff would then figure out the mechanics and make the recommendation to the City Council. Chair DeLuna asked if they should address the core issues in more detail before making a recommendation. Commissioner Greenwood commented that they still need to figure out how to deal with what they currently have permitted and what needs to be studied, such as how many code officers will be needed to enforce STRs. He commented the proposed STIR ordinance definition of a "responsible party" to be 21 years of age, and asked if it should be 25 years of age. In addition, should the length of stay be a minimum of four to five days versus the two-day minimum. Vice Chair Pradetto agreed to increase the length of stay. By increasing the length of stay, you are creating a different product than a hotel room. Chair DeLuna interjected and agreed to change the age of the responsible party to 25 years of age. She believed a person 25 years of age is fiscally in a better position than a person 21 years of age. Commissioner Holt interjected that they do not have enough facts or statistics to make a decision about the length of stay. Vice Chair Pradetto remarked that most people make decisions without data or facts. Commissioner Holt stated she does not want decisions based on emotions, but she also does not want people to suffer. Commissioner Gregory asserted that they are going to have great difficulty coming to a consensus or a resolution due to divergent opinions. Typically, they would continue a difficult decision. However, in this case, the City Council does not have the time because they have act on the moratorium. He noted that their comments are recorded and included in the minutes and the Council could make up their own minds. He stated the Planning Commission is not setting the policy, it is the City Council. Vice Chair Pradetto listed the following comments and/or recommendations that were made by the Planning Commission: 1) remove the buffer/separation requirement; 2) limit the number of occupants; 3) increase code enforcement; 4) restrict or ban STRs in R-1 and R-2 zones; 5) increase length of stay; 6) increase the age of the responsible party; 7) consider the temporary STIR permit; and 8) consider the on-site owner-occupied STIR. Commissioner Greenwood interjected that the owner-occupied STIR is a different situation and should be looked at differently. 22 GAPlanning\Monica OReilly\Planning Commission\2017\Minutes\10-3-17.docx MINUTES PALM DESERT PLANNING COMMISSION OCTOBER 3, 2017 Chair DeLuna voiced her concern banning STRs in the R-1 and R-2 zones. She stated they would go underground and the City will have no control and no recourse. Vice Chair Pradetto added to allow STRs in R-1 and R-2 zones to the list. Chair DeLuna asked staff if their list procedurally acceptable. Mr. Stendell replied yes. He commented that staff has heard plenty of broad direction from the Planning Commission. He stated is it highly likely there will not be a consensus on a specific direction. Staff would outline the Commission's and public concerns and move forward to the October 26 City Council meeting. Chair DeLuna moved to, by Minute Motion, recommending to the City Council to move the STR ordinance forward with the caveat addressing the following list: 1) remove the buffer/separation requirement; 2) limit the number of occupants; 3) increase code enforcement; 4) restrict or ban STRs in R-1 and R-2 zones; 5) increase length of stay; 6) increase the age of the responsible party; 7) consider the temporary STR permit; 8) consider the on-site owner-occupied STR; and 9) allow STRs in R-1 and R-2 zones. Motion was seconded by Vice Chair Pradetto and carried by a 5-0 vote (AYES: DeLuna, Greenwood, Gregory, Holt, and Pradetto; NOES: None; ABSENT: None). Mr. Stendell announced the next STR public hearing is October 26 in the Council Chamber. He indicated staff is going to do their best summarizing comments, concerns, and theories addressed by the Planning Commission. Chair DeLuna thanked the community and staff. She stated the Planning Commission will do the best they can to be stewards of their concerns. XI. MISCELLANEOUS None XII. COMMITTEE MEETING UPDATES A. ART IN PUBLIC PLACES None B. PARKS & RECREATION None 23 GAPlanning\Monica OReilly\Planning Commission\2017\Minutes\10-3-17.docx MINUTES PALM DESERT PLANNING COMMISSION OCTOBER 3, 2017 XIII. COMMENTS None XIV. ADJOURNMENT With the Planning Commission concurrence, Chair DeLuna adjourned the meeting at 9:47 p.m. NANCY DIfLUNA, CHAIR ATTEST: RYAfV STENDELL, SECRETARY PALM DESERT PLANNING COMMISSION MONICA O'REILLY, RECO , ING SECRETARY 24 GAPlanning\Monica OReilly\Planning Commission\2017\Minutes\10.3.17.docx