HomeMy WebLinkAbout2017-10-26MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING
THURSDAY, OCTOBER 26, 2017
CIVIC CENTER COUNCIL CHAMBER
73510 FRED WARING DRIVE, PALM DESERT, CA 92260
1. CALL TO ORDER - 3:00 P.M.
Mayor Harnik convened the meeting at 3:01 p.m.
II. ROLL CALL
Present:
Mayor Pro Tem Sabby Jonathan
Councilmember Kathleen Kelly
Councilmember Gina Nestande
Councilmember Susan Marie Weber
Mayor Jan C. Harnik
Also Present:
Lauri Aylaian, City Manager
Robert W. Hargreaves, City Attorney
Rachelle D. Klassen, City Clerk
Lori Carney, Director of Administrative Services
Russell Grance, Director of Building & Safety
Ryan Stendell, Director of Community Development
Janet M. Moore, Director of Finance/City Treasurer
Mark Greenwood, Director of Public Works
Frankie Riddle, Director of Special Programs
Stephen Y. Aryan, Risk Manager
Lt. Coby Webb, Asst. Chief, Palm Desert Police/Riverside Co. Sheriffs Dept.
Andy Martinez, Admin. Sgt., Palm Desert Police/Riverside Co. Sheriffs Dept.
Grace L. Rocha, Deputy City Clerk
III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS)
None
IV. ADJOURN TO CLOSED SESSION
Reauest for Closed Session:
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REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 26, 2017
A. Conference with Real Property Negotiator pursuant to Government Code
Section 54956.8:
1) Property: APNs 628-030-006, -007, -008, -010
(Near Homme/Adams Park)
Negotiating Parties:
Agency: Lauri Aylaian/Ryan Stendell/City of Palm Desert
Property Owner: Michael Kirkpatrick
Under Negotiation: x Price x Terms of Payment
B. Conference with Legal Counsel regarding significant exposure to litigation
pursuant to Government Code Section 54956.9(d)(2):
Number of potential cases: 2
Mr. Hargreaves noted that for Closed Session, he had two items for consideration.
One item is under anticipated litigation, which is the letter received from Mr. Kevin
Shenkman regarding a California Voting Rights Act challenge, and the other is for
the City Council to consider adding an item to the agenda by four -fifths vote, which
had presented itself after posting of the agenda.
C. Conference with Legal Counsel regarding existing litigation pursuant to
Government Code Section 54956.9(d)(1):
1) Nancy Torsney v. City of Palm Desert, et al., Riverside County Superior
Court, Case No. PSC 1704705.
On a motion by Nestande, second by Harnik, and 5-0 vote of the City Council, the
aforementioned items were added to the City Council agenda for Closed Session.
With City Council concurrence, Mayor Harnik adjourned the meeting to Closed
Session of the City Council at 3:03 p.m. She reconvened the meeting at 4:08 p.m.
V. RECONVENE REGULAR MEETING - 4:00 P.M.
A. REPORT ON ACTION FROM CLOSED SESSION.
Mr. Hargreaves stated that direction was given during Closed Session, but
no reportable actions were taken.
VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF
THE UNITED STATES OF AMERICA - Palm Desert Youth Committee Chair
Matthew Chang
VII. INVOCATION - Mayor Pro Tem Sabby Jonathan
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Mayor Harnik alerted the audience that this evening on the agenda was the Public
Hearing for Short -Term Rentals, and it will probably be around 6:00 p.m. when that
item will be addressed.
VIII. AWARDS AND PRESENTATIONS
A. PRESENTATION TO THE CITY COUNCIL OF AN UPDATE ON
PALM DESERT YOUTH COMMITTEE ACTIVITIES BY CHAIR
MATTHEW CHANG.
Mr. Chang reported that this year he was elected Chair of the Youth
Committee, and he was excited to take a bigger part in the Committee and
the City. This weekend about seven members will be volunteering with the
Golf Cart Parade at the seniors section, including helping with setup and
cleanup. On November 1, they will have Youth/Senior Technology Day at
the Joslyn Center. He said this event is very fulfilling, because they get to
assist seniors on any technology questions they may have. He reported they
have an Anti -bulling Workshop coming up at the end of November, where
they plan to develop tools for the Question & Answer segment of their
presentation, including learning activities to do when they go to the different
schools. In December, they will be attending the Celebrate the Season
Event. Lastly, they are continuing their work with the "No Idling Zone,"
stating they are working with local schools to establish no idling zones to help
with respiratory illnesses in the Valley.
Mayor Harnik pointed out that Matthew Chang was on the World Quest team
that took first place, adding they had the highest score ever achieved.
B. PRESENTATION OF 2017 PALM DESERT "MINI -MUSTER" ARTWORK
AWARDS.
On behalf of the Historical Society of Palm Desert, Mr. Mike Lewis shared
that Ms. Jan Holmlund started the Mini -Muster Program, and although she
has passed away, she will not be forgotten, because the program has been
running for 25 years. The Program was developed for third graders,
teaching fire safety and awareness through field exercises. To date, more
than 13,000 have received a Certificate of Completion from the Historical
Society. He thanked the City for proclaiming the month of October as "Fire
Prevention Month." He also thanked the principals and teachers, the Parent
Teacher Organization (PTO), and the Palm Desert Rotary, because they
make the program a true success. He presented an engraved plaque to the
City Council for the continued support of the program. He called up the
following participating school principals to join him up at the podium to be
recognized for their contributions: Allan Lehmann of George Washington
Charter Elementary, Mary Ownings of Abraham Lincoln Elementary, John
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Preston of Gerald Ford Elementary, Jeffery Hisgen of James Carter
Elementary, and Mark Baldwin of Ronald Reagan Elementary. The
teachers and Fire Department personnel were also called up to the podium
to be acknowledged.
Mayor Harnik and Mr. Lewis presented certificates to the following third
graders whose artworks were chosen to represent this year's Mini -Muster:
Peyten Dias of James Carter Elementary, Hailey Gonzalez of Gerald Ford
Elementary, Karen Hernandez of Abraham Lincoln Elementary, Kamilah
Garicia of Ronald Reagan Elementary, and Kati Dusek of George
Washington Charter Elementary. Mr. Lewis added that the winners will get
to ride on the fire truck at the Golf Cart Parade.
Deputy Chief Talbot thanked the Historical Society and the City, because
without their partnership this excellent program could not happen. This was
the 25th year since the program started, and at this point in time, they have
hit the second generation of students. He said parents have come up to him
to share they remember the mini -muster from when they were a child. He
added that this program helps the Fire Department, in that the rate of
juvenile fire setters in this community is below the national average, and the
Department is very proud of that fact. He said the best fire is the prevented
one. He thanked all the fire fighters, specifically Station 33 on Town Center
Way, for coordinating with the City and Historical Society, going out to the
schools and setting up the props, and manning the stations. He announced
that October is "National Fire Prevention Month," and reminded everyone to
always have two ways out of a home and ensure smoke detectors work.
Lastly, soon everyone will "Fall Back" on their clocks, which is a good time
to check the batteries on the smoke detectors.
Mr. Lewis presented an engraved plaque to Station 33 Fire Fighters,
reflecting the many years they have participated in the Program.
C. PRESENTATION TO THE CITY COUNCIL OF THE COACHELLA VALLEY
BRANCH OF SOUTHERN CALIFORNIA CHAPTER OF THE AMERICAN
PUBLIC WORKS ASSOCIATION'S 2016/2017 PROJECT OF MERIT
AWARD FOR THE CATALINA COMMUNITY GARDEN RENOVATION.
Landscape Supervisor Randy Chavez announced that on September 11,
2017, the Coachella Valley Branch of the American Public Works
Association presented a Certificate of Merit to the City of Palm Desert for the
Community Garden Project and presented the award to the City Council. He
also thanked the City Council for its continued support of the landscape and
park endeavors to keep them top notch for all the citizens of Palm Desert.
He said there are community gardens on San Pablo Avenue, Catalina Way,
and Guadalupe. He said staff started enhancing two of the projects, which
was a grass root effort between the engineers and landscapers in the Public
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Works Division. They are proud of what they came up with, because they
were recognized by other agencies and municipalities as being a project that
was worth the merit. He pointed out that each garden box is made out of
recycled glass, stating each box removes approximately 2,000 bottles from
out landfill.
Mayor Harnik noted the boxes are made locally in the City of Indio.
IX. ORAL COMMUNICATIONS - B
Ms. LAURIE BALDWIN, President/CEO of the Palm Desert Chamber of
Commerce thanked the City for being the Title Sponsor for the 53rd Annual
Golf Cart Parade on El Paseo this coming Sunday. She provided T-shirts to
each of the Councilmember and invited the Council to join in on the parade.
Responding to question, she said this year's theme is Desert Safari.
MR. RICARDO LORETTA, Executive Director of the Dr. Carreon Foundation,
expressed his sincere thanks for the City of Palm Desert's participation in
this year's scholarship program. The $1,200 contribution in the City's name,
the Kelly Family, the Loretta Family, and others, the funds leveraged into a
$5,000 John Benoit City of Palm Desert Scholarship for Palm Desert High
School student Chanel De La Mora. He said Chanel is a proud student at
Cal State University, San Bernardino -Palm Desert Campus. She is the first
in her family to attend college and she can look forward to a bright future.
Also thanks to the City of Palm Desert, they developed a "Four for One
Sponsor Program," wherein a sponsor dollar is matched by a dollar from the
Foundation, then those two dollars are matched by One Future Coachella
Valley, formerly known as Pathways. He's pleased to invite the City to
partner with the Carreon Foundation next year and assist with funds for at
least two students, and in return for this kind of participation, they would be
happy to have the Council at the Fall Mixer on November 13, 2017, at La
Casuelas Nuevas, at the Elected Leaders Mixer in January, and the
Scholarship Banquet in May. He said the Foundation has assisted 475 youth
of Mexican American heritage with $1.5 million in scholarships in their 26
years of existence, many of which are from Palm Desert. He thanked the
City Council once again, stating he looked forward to the continued
collaboration.
Mayor Harnik invited Mr. Loretta to look into the Outside Agency Funding
Process, which can be found in the City's website.
Mayor Pro Tem Jonathan shared that decades ago, he happened to be
President of the College of the Desert Foundation and worked with
Dr. Carreon to establish his Foundation, in fact, the campus fountain was
named after him. He said Dr. Carreon was a very kind and generous soul,
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and he would be so pleased to see how far Mr. Loretta has taken his intent
and his foundation.
MR. BRIAN NAVA, SunLine Transit Agency, announced they will be holding
their 11th Annual "Fill the Bus" food -drive event. It will take place Thursday,
November 16, 2017, and for the City of Palm Desert, the location will be at
Walmart on Monterey Avenue and Dinah Shore Drive from 7:00 a.m. to 7:00
p.m.; last year they filled up three buses and raised 15 tons of food. He said
SunLine partners with Alta Media, KESQ, Channel 3 - ABC, Walmart,
Ralphs, and Stater Bros. Each year they hold an internal competition to see
which location can raise the most items, but this year they are opening it up
to the public to see which city between, Palm Desert, Palm Springs, and La
Quinta, can raise more items. He asked for the City of Palm Desert to help
them promote the event.
MR. WALLY MELENDEZ, Thousand Palms, approached the City Council to alert
them that the timing of the signal lights at Monterey Avenue and Fred Waring Drive
needed to be checked.
X. MAYOR AND COUNCILMEMBER REPORTS & REMARKS TO THE COMMUNITY
Mayor Harnik stated City Councilmembers attend a tremendous number of
meetings, and the attempt in this section is to provide highlights from those
meetings that will impact the residents.
A. Mayor Pro Tem Sabbv Jonathan Committee Reports and General
Comments.
1. Pickleball Meetina - he attended a public meeting regarding Pickleball
that was held on October 17 at the Freedom Park facility, which was
lead by City staff. He said it is a large and growing community of
Pickleball players, and their voices are being heard. He said the group
prioritized their needs and staff is getting started on them right away.
The highest priority was resurfacing the courts as they have been
damaged, adding that lighting and other improvement will come at a
later time. It also appears that Parks & Recreation Commission may
look to forming a subcommittee to look at the bigger picture of
expanding the number of Pickleball Courts in a medium to long-term
range.
2. Martha's Villaae & Kitchen Tour - he and Councilmember Kelly had
the pleasure of visiting the facility, stating he had to thank
President/CEO Linda Barrack for touring the amazing facility that is
very effective in homelessness prevention. He said the services they
provide for individuals, men, women, specifically for families and
children is not replicated anywhere else in the Coachella Valley. With
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regards to homelessness, he also had the opportunity to visit the
cities of Palm Springs and Coachella, where along with the Desert
Healthcare District, they have been presenting the matching $103,000
grant. He looked forward to positive results with the Path of Life
Ministries Contract.
Mayor Harnik added she too toured the facility and found them to be
an amazing organization.
B. Councilmember Kathleen Kelly Committee Reports and General Comments.
1. Palm Springs Pride Parade - announced that Palm Desert will have
an entry in the Pride Parade this year. She personally couldn't
participate due to a previous obligation, but it was a source of
pleasure to her to know that two Palm Desert City Councilmembers
will represent the City at that event.
Councilmember Nestande concurred, stating that after that event,
they could come down to Sacred Heart School and Church for their
annual carnival, where there will be rides, food, music, and it's open
to the public. It's at the corner of Deep Canyon and Fred Waring
Drive.
C. Councilmember Gina Nestande Committee Reports and General Comments.
None
D. Councilmember Susan Marie Weber Meeting Summaries Report for the
Period of October 1-14, 2017.
With City Council concurrence, the Councilmember Susan Marie Weber's Meeting
Summaries Report was received and filed.
She announced that anytime the public wants to meet with a
Councilmember, all they had to do was go on line and email that
Councilmember to arrange for a meeting and/or call City Hall. She added
that the City Council was accessible and wants to hear their ideas and
suggestions.
E. Mayor Jan C. Harnik Committee Reports and General Comments.
1. Regional Access Proiect (RAP) Ribbon Cutting - she and other
Councilmembers attended the ribbon cutting, stating RAP was an
asset to the community in helping out other 501(c)(3) nonprofit
organizations, and she was glad to have them in Palm Desert.
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2. 13' Annual Greater Palm Springs Economic Summit - she said many
representatives from Palm Desert attended, and they learned about
where the Valley was headed, in terms of tourism, agriculture, and
education.
F. City Council Requests for Action.
None
G. City Council Consideration of Travel Reauests/Reports.
None
XI. STAFF REPORTS AND REMARKS
A. City Manager
1. City Manager's Meeting Summaries Report for the Period of
October 2-13, 2017.
With City Council concurrence, the City Manager's Meeting Summaries Report was
received and filed.
2. Personnel Update: She announced and welcomed Code Compliance
Officers Alex Vasquez and Rusty Hannah, they are the two new
additions to the Code Enforcement Department; they have been on
board for eight days.
3. TRAK-iT Goina Live - she thanked staff, specifically, the Community
Development and Finance Department for their work in the
implementation of TRAK-iT, which went live on Monday. She said the
City reached a milestone, in that staff had been working for 18 months
on implementing this new software system for the purpose of
processing a business license, encroachment permit, etc. However,
it's not completely seamless and staff will spend the next month or
two tweaking the system to make it work. She also thanked Cherie
Williams for her tenacity and efforts on this, where most put in 18
months, she put in 24 months. Lastly, thanks to Information Systems
Manager Clay Von Helf.
B. City Attorney
None
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C. City Clerk
Ms. Klassen noted that the City Council meeting of November 9 will be
adjourned to November 16, 2017. The schedule will be the same, but its
3:00 p.m. for Closed Session and 4:00 p.m. for the regular session. She
added that the change was made to accommodate Councilmembers and
staff that will be attending a conference.
D. Public Safety
1. Fire Department
None
2. Police Department
None
XII. CONSENT CALENDAR
A. MINUTES of the Regular City Council Meeting of October 12, 2017.
Rec: Approve as presented.
B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Dated
9/29/2017.
Rec: Approve as presented.
C. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Bighorn Golf
Club, 255 Palowet Drive, Palm Desert.
Rec: Receive and file.
D. CITY COMMITTEE AND COMMISSION MEETING MINUTES.
1. Hotel & Signature Events Committee Meeting of June 7, 2017.
2. Parks & Recreation Commission Meeting of September 5, 2017.
Rec: Receive and file.
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E. RESOLUTION NO. 2017 - 73 - A Resolution of the City Council of the City
of Palm Desert, California, Setting Forth Its Findings and Authorizing the
Destruction of Paper Records that Have Been Digitally Imaged from the
Office of the City Clerk, to Rely on the Electronic Record as the Official
Record (Exhibit "A") — Various Contracts and Subject Files from the Records
Center.
Rec: Waive further reading and adopt.
F. REQUEST FOR AUTHORIZATION to Declare a 2007 Honda Motorcycle
(VIN JH2SC51767M500084) as Surplus Property and Authorize its Disposal.
Rec: By Minute Motion, declare a 2007 Honda Motorcycle (VIN
JH2SC51767M500084), dedicated to police services, as surplus and
authorize its disposal via auction or salvage.
G. REQUEST FOR AUTHORIZATION for Information Systems Department to
Use Vendor List for Fiscal Year 2017-2018 for Equipment Replacement
Purchases in a Total Amount Not to Exceed $40,000.
Rec: By Minute Motion, approve the Information Systems Department
Vendor List for 2017-2018 annual equipment replacement purchases
in an amount not to exceed $40,000 and authorize City Manager to
execute any related agreements for same — funds are available in the
Equipment Replacement Fund.
H. REQUEST FOR APPROVAL of Payment to Superion, LLC, for Annual
Computer Software Maintenance in the Amount of $70,244.64.
Rec: By Minute Motion, approve payment to Superion, LLC, in the amount
of $70,244.64 to provide computer software maintenance for one
year — funds are available in Account No. 1104190-4336000.
I. REQUEST FOR APPROVAL of a One -Year Extension to Contract with
Desert Air Conditioning, Inc., for Quarterly Maintenance Service to the HVAC
Units at the Parkview Office Complex in the Amount of $9,744 (Contract
No. C34071).
Rec: By Minute Motion, approve/authorize: 1) A one-year extension for
Contract No. C34070 with Desert Air Conditioning, Inc., Palm Springs,
California, for quarterly maintenance service to HVAC units at the
Parkview Office Complex in the amount of $9,744; 2) City Manager
to execute said contract extension; 3) City Manager to approve a
second contract extension in Fiscal Year 2018-2019, including any
price modifications, should staff recommend it — funds are available
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in General Government CAM #444, Account No. 5104195-4369601 —
this is an annual contract with quarterly payments.
J. REQUEST FOR APPROVAL of Amendment No. 3 to Contract with
Melissa Morgan Fine Art and Artist Steve Tobin to Extend the Loan Period
for Temporary Exhibition of Steve Tobin's Sculpture Large Steel Root
(Contract No. C32400).
Rec: By Minute Motion, approve/authorize: 1) Amendment No. 3 to subject
contract with Melissa Morgan Fine Art and Artist Steve Tobin to
extend temporary exhibition of Large Steel Root currently installed in
the Civic Center; 2) staff to finalize negotiations of subject contract
with Melissa Morgan Fine Art and Steve Tobin, and the Mayor to
execute same, subject to satisfaction of the City Attorney — no funds
are required for this Amendment.
Mayor Harnik noted she would be abstaining on item J.
Upon motion by Harnik, second by Kelly, and 5-0 vote of the City Council (AYES:
Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None), the remainder of the
Consent Calendar was approved as presented.
XIII. CONSENT ITEMS HELD OVER
None
XIV. RESOLUTIONS
A. RESOLUTION NO. 2017 - 74 - A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF PALM DESERT, CALIFORNIA, ESTABLISHING
SELECTION CRITERIA TO BE USED DURING THE REVIEW OF
CONDITIONAL USE PERMITS FOR COMMERCIAL CANNABIS
BUSINESSES (Relative to Case No. ZOA 17-027).
Mayor Harnik stated she would recuse herself from this item and left the
Council Chamber. Councilmember Nestande also recused herself and left
the Council Chamber.
Principal Planner Eric Ceja explained that at the last meeting the City Council
approved an Ordinance to allow for commercial cannabis businesses in the
City of Palm Desert, subject to a Conditional Use Permit (CUP), including
certain buffer criterias and cannabis uses in specific zoning districts, subject
to separation requirements. Council had asked staff to develop a selection
criteria for a merit -based review to ensure Palm Desert gets top-quality
operators. The Resolution before the City Council proposes five
selection -based criterias. He said staff researched other jurisdictions around
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the State, and looked at their selection criteria, and based on comments from
the City Council at the last meeting, staff settled on the following five: 1)
Location and neighborhood compatibility; 2) security plan; 3) experience and
qualifications of professionals; 4) building facade and interior improvements;
5) community benefits that an operator can bring to the City of Palm Desert.
Each one of these criterias is worth a single point. In their discussion about
developing a criteria, they talked about limiting the subjectivity of staff's
review and coming up with a system of objective criteria. The process would
be as follows: Phase one will include the Planning Department accepting
applications for their completeness and moving them to Phase Two, which
would be to review them against the selection criteria. Because there are
only five points, only those applications that receive those five points would
move on, while those without the entire five points would be in a holding
pattern. Phase III, for any tie breakers, staff would go to a lottery to settle.
After the lottery phase, staff will start setting hearing dates, and once those
are completed, Applicants can take their Conditional Use Permit (CUP)
approval to the State and apply for their State License. Staff recommended
the City Council adopt the proposed Resolution to establish the selection
criteria.
Councilmember Kelly called attention to the staff report, Exhibit A, page 4,
Item 3.d, where it values past business experience specific to the cannabis
industry, stating she had concerns about including that item. She asked if
it would harm staffs proposed system if that subpart were to be stricken.
Mr. Ceja replied it would not, because Item 3.c, specifically asks if the
principals of the business have successful business experience.
Mayor Pro Tem Jonathan invited public testimony on the proposed
Resolution.
MR. MARK A. HAYDEN, VP and Director of Development of Capstone
Advisors, 1545 Faraday Avenue, Carlsbad, CA, stated Capstone Advisors
is a real estate development company, and they have been in the Desert for
15 to 20 years. They have multiple holdings of office and commercial retail
properties and have been owners of 73930 El Paseo for 3 to 4 years, stating
they have made a significant investment in improving that property into a
state of the art, class A structure. He noted he had just become aware of
this issue a day or two ago, and without any formal notice, he was before the
City Council without a fair amount of time to prepare. He added that they
typically receive some public notice package notifying property owners within
a certain radius of a property or action, and they did not receive it. He said
he and the president of the company have been in contact with City staff,
which has been extremely respectful and available in giving them information
and walking them through the process. His focus this evening is to ultimately
request more time to go through this issue with City staff and be able to vet
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it out to better understand the Ordinance, because there are portions they
find confusing, and they need to find out how they fit into the process and
hopefully make it more balanced. For the record, he read out loud a letter
from Alex Zikakis, President of Capstone Advisors, Inc., and is of record in
the Office of the City Clerk. In summary, they strongly requested the City
reconsider allowing any dispensary on El Paseo, because they don't think
this type of use is consistent with the quality of the shopping the City and
other businesses in the area would like to see on its finest shopping street.
Ultimately, if there is an option to reconsider this use within the El Paseo
Zone, given the quality of buildings on the west side and their anticipation on
the east side in doing their structure, he would like to pursue it. However, if
it's not an option and the selection process is going to move forward, they
would like more time to work with staff to make it more understandable and
a balanced process for landlords.
Mayor Pro Tem Jonathan expressed his appreciation of Mr. Hayden's
attendance and input, stating Council is concerned when it hears
constituents weren't notified, specifically a stakeholder. However, he felt
Mr. Hayden was in the minority, because the City has been going through
this process for nearly a year where there has been an ad hoc committee,
publicity in the news, it's been before the City Council multiple times, and
there will be a second reading of the Ordinance, which is the next item on the
agenda. Also, the El Paseo Merchants Association weighed in on the topic.
He reiterated it was a concern to the City Council when there is lack of
notification, and the City will always strive to do a better job, because it wants
stakeholders to be part of the decision -making process.
MR. VAN TANNER, Board Member of the Regional Access Program (RAP),
recalled for the City Council that Board President Mark Moran shared the
concern at a previous meeting about cannabis operations within the
industrial area where they purchased their building. He said they currently
have 13 tenants, and 7 of those tenants have children associated with their
program, and they also hold graduation programs that include children. He's
heard comments about a particular site that has already been approached
for the use of cultivation and retail sales, and it's within a couple of hundred
feet to their back door. He would like to go on record that RAP and the
programs associated with them are concerned about the potential habitation
of cannabis uses near their building.
Councilmember Kelly stated that on the issue of RAP, she recalled staff
assuring her that its presence would bear on the appropriateness of a CUP
under the consideration of neighborhood compatibility. In other words, there
would be opportunity when considering CUP applications, to think about
neighborhood compatibility and take into account RAP's concerns. In the
staff report on page 3 of Exhibit A, there is a section relating to "Location and
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Neighborhood Compatibility." She asked if RAP's concern can be addressed
through that selection criteria.
Mr. Ceja responded it can be addressed with the proposed Resolution,
adding that with a Conditional Use Permit, staff is required to make a finding
for compatibility with surrounding uses. In addition, it's emphasized in the
proposed Resolution under Item 1(c), where it addresses "sensitive uses
within 500 feet of the location."
Councilmember Kelly asked staff if the factors mentioned by Mr. Tanner
would make his building a sensitive location.
Mr. Ceja answered yes.
Mayor Pro Tem Jonathan offered that one of the areas staff will struggle
with, and it may relate to RAP, is a question of intensity. He believed the
RAP building was a 25,000 square -foot facility, but what about a daycare of
1,000 square -feet with only three kids. He hopes the Resolution has enough
flexibility for staff to exercise judgment, including enough meat in the
Ordinance to be able to support their findings.
Mr. Ceja replied he believed there is enough language and teeth in the
Ordinance and Resolution for staff to have flexibility. Additionally, in the CUP
process, all property owners within 300 feet are notified of a public hearing
with the Planning Commission, so those in opposition or in favor of are
welcomed to those public hearings. Responding to question, he said staff
and Mr. Hayden have been in continuous dialog over the past couple of
days, and staff will continue to dialog with him.
Councilmember Weber pointed out that the Resolution is asking for a viable
business plan and successful business experience, which is not required of
other CUP's for a business, stating the City was respecting the fact that this
was a sensitive issue and is being extremely careful.
Councilmember Kelly said she greatly appreciated the work by staff in
striving to be responsive to Council's request to assure that the initial
applications are the best they can possibly be, adding she knew staff looked
at many possibilities and went out of town to the ones it felt can be
implemented most effectively. The one change she would like to make,
which she alluded to in her question, is in Exhibit A, 3(d) under
Qualifications, which essentially requires one principal of the business to
have past experience in the cannabis industry. As a general rule, she would
hate to say folks that have done something before have an inside track,
because it forecloses the City from the best talent. She feared the actual
consequence, since everybody wants to maximize their points, would force
applicants to pull a principal into their business with its past experience.
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Since one of the items already requires the principals to have successful
business experience in general, she would seek to strike Item 3(d) of Exhibit
A.
Councilmember Weber agreed to strike that item, because technically this
was illegal until recently, so those applicants would be admitting to breaking
the law.
Mayor Pro Tem Jonathan disagreed, because Council would be talking about
medicinal cannabis or applicants who were coming from Colorado or other
states. He asked Council to step back a moment and take the 20,000-foot
view, because the purpose in drafting a procedure for selecting which
cannabis business operators will be in the City was to get the very best in
terms of quality, integrity, and safety for residents and children. He's not
satisfied that the proposed procedure accomplishes that goal, and it's strictly
a policy issue. He believed the proposed structure was basically a pass/fail
system by assigning a 0 to 1 rating, and if there was a tie, those applications
would go into a lottery. He believed that everyone that would submit an
application would get the same score or similar, which removes control from
staff to ensure that the objective is reached, which is to get the best operator
in the City. He noted the letter from Mr. Bernheimer addresses this issue,
and while he won't opine on his specific recommendations, because he
suggested adding ownership of premises, a longevity in business, etc.
However, Mr. Bernheimer did make a cogent point, which is why use a 1 or 0
structure, but instead do a 0-5, which will separate the field and enable staff
to make a better selection. Also, he was opposed to a lottery, stating he
preferred obtaining the operators in the same manner it selects vendors
when it goes out for a Request for Proposal (RFP). That process narrows
it down to the top three, they are evaluated, and a panel determines which
one will be the best, which he believed can be done in this application. The
reality is that cities are always facing legal liability and risk, and the loser is
going to complain no matter what procedure is in place. He said other cities
have utilized procedures similar to what is being proposed that gives staff
greater control, but he would suggest postponing this matter and giving
direction to staff to consider Mr. Bernheimer's letter, and come up with a
procedure that accomplishes the City's goal, which is to implement a
selection process that gives staff control over which cannabis operators end
up in Palm Desert.
Councilmember Kelly believes staff has tried to list everything that a best
operator would present, stating the criteria was a description of what an
operator is going to look like. Therefore, if there are multiple applicants who
can check all the boxes, essentially "they are all the best," which can't
literally be true, but they are all superior. At that point, lawfully and fairly, the
best thing to do is a lottery. If the items are looked at carefully, they don't
strike her as being minimal requirements, because when an applicant is
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asked to have a particular quality to the exterior facade and demonstrate a
successful business experience, that's going beyond the usual CUP
requirement. Therefore, the criteria was a definition of what high -quality
looks like.
Councilmember Weber asked staff to explain the thought process between
the 0 or 1 versus the 0 to 5 rating.
Mr. Ceja replied that direction to staff was to avoid having a subjective
process, so staff looked at a binary system with ones and zeros.
Councilmember Weber commented that in order for someone to meet
criteria 3(d), the applicant would have to be coming from Colorado or
specifically for medicinal marijuana. However, the City didn't particularly want
out-of-state people coming here to do business, so how different would the
medical marijuana business be from a regular retail store, and should this be
a criteria. Based on the 18 months of the ad hoc committee meetings, she
recalled hearing that medical marijuana had quite a challenge in trying to do
deliveries, so to her, it was a totally different business operation from a
regular retail store.
Mr. Ceja said it was hard to say given the changes at the State level, in that
medical or nonmedical, will be on a near even playing field.
Mayor Pro Tem Jonathan commented he heard what everyone was saying
and maybe there is a place to meet half way. His concern is that, for
instance question No. 1(e) asks the applicant if it can identify adequate odor
control measures. If you have five applicants and they all receive a 1 rating
as a pass, but one has the state-of-the-art and most supreme odor control
measure that exist in the entire planet, and the other four don't. He would like
to give that applicant a 5 rating and maybe the others a 3. His point is that
if they all get a 1 rating to indicate they passed, it doesn't mean they are all
equal, in fact, it's unlikely. Therefore, he proposed adopting a 0 to 5 instead
of a 0 and 1. Also, instead of going directly to a lottery system, if there are
two or more applicants that are tied, a staff committee of three shall attempt
to make a selection, and if they are unable to do so, then it would go to a
lottery system. He's concerned about the impact of cannabis on the
community, so he was ensuring staff had all the tools necessary for the best
possible outcome. He believed those two changes would enable staff to
accomplish the goal. Responding to question, he said on page 3 of Exhibit
A, he proposed changing the second sentence under Selection Criteria to
read, "Selection criteria shall be rated on a point system from 0 to 5."
Councilmember Weber asked the City Manager if she felt staff had the
expertise to differentiate between security plans, because she may view one
as having a great fire prevention and suppression and HVAC, etc., but
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another staff member can say it could be bumped up. Also, without the rules
for the criteria, it will be very difficult for an applicant to come up with proper
documentation.
Ms. Aylaian explained that the reason staff was proposing a binary system
was to avoid exactly what Councilmember Weber just described. She said
it's difficult to make judgement calls and valuation on things that are not
easily quantified. It's a clearer distinction whether something is adequate or
not versus determining if eight alarms are superior to four alarms of a
different quality or different design in certain areas. The recommendation is
based upon minimizing the need for subjective decisions, because the City
could be mired for a long period of time in an evaluation process that was
fraught with reasonable arguments from the vendors that were not selected.
Although a lottery system is never a first choice, staff wasn't able to identify
any systems of selection it thought was fair to all potential applicants without
having a component of a lottery. If you open up the process to everyone and
allow the applications to come in and grade them on some other system, you
end up having to determine who goes first. This process is really all about
which application to process first and not about who ultimately gets it. Staff
anticipates between 50 and 200 applications, so if you end up with an
elaborate system to determine which CUP to address first, because
whichever applicant is prioritized, such that they get to go through the
application process first for a CUP, automatically will rule out any other
businesses that have proposed locations within the radius restrictions.
Therefore, the binary approach to screening was the most objective and
most defensible, and it gets staff to a pool of well -qualified applicants, and
from there, the decision is made on which CUP application is processed first.
There does not seem to be a fair way of judging, short of some sort of
random selection. If the City was to reduce this to some graduated scale of
1 to 5, looking at all the applications and evaluating them, suddenly what you
find is two applications that both scored an 85%, which is at the top of the
list, but then they are too close in proximity, so again, where do you start and
how do you decide to pick objectively winners and losers. She said the City
wasn't trying to pick winners and loser, it's trying to identify firms that are
well -qualified and that can meet the criteria, and then look at each
application in the order of precedence.
Mayor Pro Tem Jonathan said that was a broad defense of staff's
recommendation, but he's not sure he heard an answer to his question. He
asked if staff lacked expertise to do a broader evaluation beyond 0 and 1.
Ms. Aylaian replied she believed staff had the expertise.
Mayor Pro Tem Jonathan said he understood that the proposed procedure
is a gateway to see who is even qualified, because if the City receives
hundreds, he gets that you can't spend five hours on each application. He
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searching for something that accomplishes the concerns expressed by the
City Manager, staff, and legal counsel, but at the same time provide the tools
to control the ultimate operators. He proposed adopting the Resolution as
step one, in which the applicant has to meet the criteria to get to step two.
Step two is then a broader evaluation of those that are qualified rather than
it being the lottery. He said staff can then develop an objective criteria with
a point system, which entails some subjectivity, but so does the 0 to1 rating.
He asked if that would be an effective procedure that meets legal concerns
and at the same time gives the City greater control.
Ms. Aylaian deferred to staff and legal counsel to see if that would be equally
defensible.
Mr. Hargreaves asked everyone to step back and examine this process. He
said the City basically has a CUP process, which is well understood and is
a creature of the City's ordinances where staff has a lot of experience and
expertise in running businesses through it. The general process is that an
application comes in, it's deemed complete, it conducts an environmental
analysis, it's taken to the Planning Commission, then there is a
decision -making process there that questions whether the application meets
the criteria specified in the ordinance. If it does, great, and staff then makes
findings based on facts. He added that the law actually requires staff to make
those kinds of findings, then the application is either granted or denied a
CUP based on its ability to comply with the specified criteria. Conditional
Use Permits are generally always evaluated based on some criteria, they are
not evaluated based on how they stack up with a whole bunch of other
people, which is the most comfortable way to run a process. It's application
versus criteria, a yes or no findings, which is all pretty clean. The problem
in this case, is that there are a limited number of spaces and it becomes
very complicated, because if you grant one you may preclude others, etc.
In the initial processing, the City is not so much selecting a particular one for
giving them a CUP, it's selecting applications on a priority basis to go through
the CUP process, because that application will ultimately go to the Planning
Commission. The application will be judged against the criteria that's in the
ordinance and it's either granted or denied. By the time it gets to the
Planning Commission, the ones that don't qualify should have been selected
out. The process staff tried to put together here is more of a prioritization for
going through the process than it is a selection process. The goal was to
create a line, where the first application goes through the process and if it
gets approved, you get a pin on the map, then the second application goes
through that same process, but even if that second application is the second
most qualified, if its within 1,000 feet of Application No. 1, it's done,
regardless of how that application stacked up against anybody else. Then
next you have Application No. 3 and that one gets in. He said this is a
process that has a lot of moving pieces. And when Council talks about
selecting the very best, what does that really mean. First of all, the City
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doesn't have a lot of expertise in choosing best businesses. Because then
you have to determine if a certain business will provide the best service in
terms of recommendations of whatever marijuana it provides or is it the
business that is ultimately the most profitable, or is it the flashiest exterior
design. He asked how would staff mix and match those criterias to arrive at
whose the best, and with humans being humans, if you give a bunch of
businesses a bunch of business criterias to ten different people, you will
come up with ten different answers. Therefore, with all those different
variables, staff tried to come up with processes that people understand and
it's as objective as possible. It will filter out the ones that won't be acceptable
and allow the ones that meet the specified criteria and the ability to move
forward. He said the City had to take a chance on how the process works
out, because no matter how good a business is, if someone else gets out in
front of you and they have a pin on the map, if you're within 500 feet of that
pin, your not gonna get in. He knew staff spent excessive amounts of time
looking at all these perimeters and looking at how others have done it in
other cities. He said there are a few modifications that can be made with the
rating system, but if the City is going to use a process under the CUP, you
can't get to a full-blown beauty contest under that process. If the City wants
to take that avenue, it has to divorce itself from the CUP process and maybe
attach it to the regulatory permit process, because it has more discretion
than the CUP process.
Councilmember Kelly called attention to the provision of 5(c) in Exhibit A,
which she believed would address Mayor Pro Tem Jonathan's concerns.
That item reads, "Does the applicant provide any additional community
benefits described in either their business plan or other documentation
submitted as part of the CUP?" She said an applicant needs to be able to
satisfy all b, c, and a, to get a point under Category 5. The way she reads
this, only applicants that bring forward some form of value get a point under
number 5, which will separate the best of the best from the rest. She
believes that subpart gives staff the opportunity that Mayor Pro Tem
Jonathan is seeking to acknowledge when someone's application really
demonstrates a significant community benefit. However, let's say there is
10, 5, or 3 applicants who all get five point, the difficulty she has with saying
that a panel of three staff should then pick the best of the best, it puts them
in a difficult place of playing favorites, and the City works hard to be assured
that Palm Desert is a City of integrity. Therefore, that kind of scenario would
be problematic.
Councilmember Weber requested clarification on the scoring, because she
believed it would be a total of 20 points, and an application doesn't have to
get all the points under one criteria in order to go to two.
Mr. Ceja explained it was only a total of five points, so it would be one point
for each criteria. Further responding, he said you would have to satisfy all
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the requirements, for instance Item 3, you would need a, b, and c, to obtain
that one point.
Councilmember Weber said she misunderstood, and if that was the case,
she would not be happy with that system, because she would want each item
to stand on its own. In that scenario, including Item 3(d) would be an
advantage in this particular industry.
Mayor Pro Tem Jonathan appreciated the clarification, because now he
understood the maximum points would be 5 instead of 20 being the
maximum. He heard the City Manager state staff had the expertise, but from
legal counsel he heard they didn't, which is a point of concern. He believed
it would be a failure on the City's part that because it didn't have the
expertise, it would go to a lottery system, which was unacceptable to him. He
said Palm Desert was a contract City, so if it doesn't have the expertise,
contract out for it or develop it internally. He's trying to find a compromise
that everyone can live with, so he proposed changing the point rating system
from 0 to 1 to 0 to 5, and apply the rating to each sub -item, so there are a
total of 20 categories, maximum points are 100 and minimum is zero. He's
willing, but he doesn't like it, that if there are applications tied at that point,
go to a lottery.
Councilmember Weber pointed out that the ad hoc committee debated this
lottery issue a lot, because it was a matter of how to keep this process fair
and above board. She went on to say this was not the end of the world,
because if there is a demand for this business and it continues to grow, the
City will add more retail locations.
Mayor Pro Tem Jonathan referred to criteria 3(d), suggesting changing the
word "specific" to "relevant," because to have principals of business
experience is important. He agreed it doesn't necessarily have to be specific,
in other words, it doesn't have to be limited to someone who has experience
operating a cannabis business, but experience relevant to the business, and
it can simply be retail. When looking at a growth facility, it can be someone
who has farming experience.
Councilmember Weber said she liked that change. But in the meantime, she
asked the City Attorney that if the City used a system of 0 to 5, should the
City be concerned that someone will claim it isn't fair as opposed to a yes or
no answer using the 0 to 1 rating.
Mr. Hargreaves replied that no matter what the City decided on, there will be
people out there that will say it's not fair. He deferred to staff, because they
are the ones that will have to implement it.
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Mr. Stendell agreed to evaluate each item on a 0 to 5, and they will be happy
to do so, because staff has communicated at nauseam that it felt there was
a risk in doing it that way, but if that is the desire of the Council, they will do
it.
Councilmember Weber agreed there was a risk, which is why she liked the
0 to 1 rating structure, because she felt it leveled the playing field.
Councilmember Kelly offered that she was open to agreeing to Mayor Pro
Tem Jonathan's proposed package if it struck criteria 3(d), adding she
believed the prior criteria 3(c) states, "Do the principals of the business have
successful business experience?" Therefore, if the Council wants a 0 to 5
scale, that item enables staff to think about how relevant it is.
Mayor Pro Tem Jonathan said he would agree to removing 3(d) if that was
the will of the City Council. He said it was important to move this forward, so
he was comfortable with that compromise. Therefore, the suggestion is to
change the point structure to 0 to 5 for each subcategory and eliminate Item
3(d), and if there is a tie, then at that point it goes to a lottery.
Councilmember Weber asked how staff could provide a rating of 0 to 5, for
lets say, Item 4(a) where it asks, "Does the applicant provide a detailed
tenant improvement plan that identifies all interior improvements?" She said
that application will eventually go through planning and everything else, so
for staff to determine if the application can go further down the road, a yes
or no system would be easy, rather than staff rating it from 0 to 5, which puts
them in the realm of judging tenant improvement plans against others, which
she didn't believe was the goal.
Councilmember Kelly offered that some of these items lend themselves to
either being 0 or 5. She said they either have it or don't, and it's really just
a handful of items that would really be susceptible to some gradation. But
to speak to Councilmember Weber's concern, allow staff to implement that
gradation where it fits.
Mayor Pro Tem Jonathan stated that in using Councilmember Weber's
example on a detailed tenant improvement plan, with permitting, planning
deals with that every day. He said it was actually a good example where it
can be rated 0 to 5. For example, if someone comes in with a hand -drawn
sketch for a tenant improvement plan, that might be a zero or one, and if
someone else submits a detailed architecture rendering and a 3D imaging,
etc., that would clearly be a five. He trusts staff to have the ability to rate
each of the criterias, which he believes provides them greater control. He's
also confident that if staff determines it doesn't have the expertise, there are
consultants out there that do, and if that's what the City has to do, it will do
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it. Again, in order to bring this issue to something all can live with, he made
the following motion.
Mayor Pro Tem Jonathan moved to waive further reading and adopt Resolution
No. 2017-74, as amended with the following modifications: 1) Change the point structure
to a 0-5 rating system to be applied to each item; 2) eliminate Category 3(d). Motion was
seconded by Weber.
Responding to question, Mr. Ceja agreed to using the 0 to 5 rating structure.
Mr. Hargreaves asked the Council if any of the criterias would render an
application being eliminated. For example, if an application doesn't have a
security plan and they get a zero, they could be high enough in other criterias
that it wouldn't necessarily preclude the application.
Mayor Pro Tem Jonathan agreed, stating now Mr. Hargreaves was coming
back to his basic concern, which was loss of control and that's a slippery
path, because which items disqualify an applicant. In that case, staff would
have to go back to the drawing board and continue the item, if it was going
to play that came, but right now, the answer to the question is no. As
proposed by staff, there is no disqualification item.
Ms. Aylaian said staff can make that work by making them go through the
CUP process if they don't have a security plan.
Mayor Pro Tem Jonathan announced to the public that there is a distinction
in this CUP process from all other CUP processes, in that there are multiple
applicants and limited permits, which does not exist in any other case. It is
the reason for Council having to deal with this particular procedure.
Mayor Pro Tem Jonathan called for the vote and the motion carried by a 3-0 vote
(AYES: Kelly, Weber, and Jonathan; NOES: None; ABSENT: Nestande and Harnik)
Mayor Pro Tem Jonathan congratulated staff and colleagues for totally
vetting this issue and successfully coming to a compromise, stating he hoped
everything will work out well.
XV. ORDINANCES
A. For Introduction:
None
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REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 26, 2017
B. For Adoption:
1. ORDINANCE NO. 1329 - AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A
ZONING ORDINANCE AMENDMENT TO PALM DESERT
MUNICIPAL CODE SECTION 25.34.120, CHAPTERS 25.16 AND
25.18, TO ALLOW COMMERCIAL CANNABIS OPERATIONS IN
THE CITY, SUBJECT TO A CONDITIONAL USE PERMIT; AND
ESTABLISHING CHAPTER 5.101 - COMMERCIAL CANNABIS
REGULATORY PERMITS AND CHAPTER 8.38 - PERSONAL USE
OF CANNABIS, Case No. ZOA 17-027 (City of Palm Desert,
Applicant).
Mayor Harnik and Councilmember Nestande recused themselves
from this item and were absent from the Council Chamber.
Principal Planner Eric Ceja noted this was the second reading of the
Cannabis Ordinance that was passed at the last City Council Meeting.
He said he provided a supplemental Exhibit A due to an incorrect
spelling, which is highlighted on page 3 and 4. Responding to
question, he said the Ordinance will be adopted 30 days from today.
Councilmember Weber moved to waive further reading and adopt Ordinance No.
1329. Motion was seconded by Kelly and carried by a 3-0 vote (AYES: Kelly, Weber, and
Jonathan; NOES: None; ABSENT: Nestande and Harnik).
XVI. NEW BUSINESS
A. REQUEST FOR APPROVAL OF A MEMORANDUM OF UNDERSTANDING
(MOU) BETWEEN THE CALIFORNIA JOINT POWERS INSURANCE
AUTHORITY AND CITY OF PALM DESERT, AUTHORIZING
PARTICIPATION IN AN ADA (AMERICANS WITH DISABILITIES ACT)
ASSISTANCE PROGRAM IN THE AMOUNT OF $141,500 (CONTRACT
NO. C36480).
Mr. Aryan noted the staff report and respectfully requested that as part of the
motion, that the City Council authorize the City Manager to execute the
MOU.
Mayor Pro Tem Jonathan asked if the City had ever done this before and
what were the results.
Mr. Aryan explained the City currently has a program in place under the
Housing Authority with the California Joint Powers Insurance Authority to do
a similar program that was approved in March 2017. With regards to the
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City's facilities, one was looked at in 2008 regarding the public's right-of-way,
but never from an ADA perspective as a study analysis.
Councilmember Nestande moved to, by Minute Motion: 1) approve an MOU
between the California Joint Powers Insurance Authority (CJPIA) and City of Palm Desert,
authorizing participation in an ADA Assistance Program in the amount of $141,500—funds
are available in General Services Account No. 1104159-4309000; 2) authorize the City
Manager to execute said Memorandum of Understanding. Motion was seconded by Kelly
and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES:
None)
XVII. CONTINUED BUSINESS
None
XVIII. OLD BUSINESS
None
INS
iftiii
Mayor Harnik called a recess of the meeting at 6:07 p.m. and resumed the
meeting after the dinner break at 6:34 p.m. mop
XIX. PUBLIC HEARINGS
A. REQUEST FOR APPROVAL OF ONE OF THE RECOMMENDATIONS
REGARDING PROPOSED AMENDMENTS TO PALM DESERT MUNICIPAL
CODE CHAPTER 5.10 - SHORT-TERM RENTALS - FOR ENFORCEMENT,
OPERATIONAL STANDARDS, COMMUNICATION, AND DENSITY
REQUIREMENTS FOR SHORT-TERM RENTALS WITHIN THE CITY OF
PALM DESERT.
Mayor Harnik assuring the public, stated the City Council received hundreds
of letters and emails, and they have been read by Council and staff,
including having meetings with many interested parties on both sides of the
issue. She said the City Council has appreciated the public's engagement,
and this evening she called for the audience's decorum, patience, and
respect for others opinions as they come up to speak.
Mr. Stendell stated he and Mr. Swartz will be tag -teaming their presentation.
He said a study session on STRs was provided for the City Council, and the
item has gone through public hearings at the Planning Commission.
However, not everyone was able to make it to those hearings, so his
presentation will briefly update everyone on the types of zoning, talk about
how the City got here, the proposed Ordinance structure, and the two
recommendations proposed by staff. One recommendation was carried over
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by the ad hoc committee and the other was put together by staff based on
public testimony heard at the Planning Commission public hearings. The
City has the following four zoning districts for residential uses: Planned
Residential (PR), which is by far the largest use category with a little more
than 24,000 units in the City; Single -Family District (R-1), which has just
under4,000 units; Residential Mixed -Family (R-2), which has less than 2,000
units; and Residential Multi -Family (R-3), which has a little over 1,600 total
units within the City. Each category has its own intent and purpose, where
PR is a more flexible district, R-1 is a low -intensity residential neighborhood,
R-3 is higher intensity that includes apartments and condos. He displayed
a spreadsheet showing almost 36,000 total dwelling units within the City, and
the lion share of them are in the PR Zone. The fourth column of this
spreadsheet shows the total short-term rental permits issued within each
zone. Currently there are 840 permits in the PR Zone, 212 in the R-1 Zone,
64 in the R-2 Zone, and 46 in the R-3 Zone. Areas where staff sees the lion
share of nuisance issues reside in the R-1 and R-2 Zoning Districts. Short -
Term Rentals (STRs) seem to operate well in the PR and R-3 Zones with low
volume of calls to the City. How we got here is that staff noticed an up -tick
in permit issuance in the City and across the nation. He shared that he and
the City Manager had just returned from a conference where they were
presented with a statistic that indicated there was a 15X increase in STR
permits from 2010 to date. The STR industry has skyrocketed, and it was
not just in Palm Desert or California, but nationwide and probably worldwide
as well. The web -base platforms like Airbnb (Air -Bed and Breakfast) and
VRBO (Vacation Rental By Owner) has made it easy and advantageous to
do so. The City received a lot of nuisance calls that included having a STR
on each side of their home. Therefore, the City Council implemented a 12-
month moratorium and directed staff to work expediently but also have a
genuine conversation with the community. Being that was in January 2017,
and it's now October, the process took longer than expected, because there
was a lot there that wasn't anticipated by staff. At every meeting staff
learned more about the issues and uncovered more work it had to do. The
City formed an ad hoc committee that initially started with 19 members, but
as time went on and requests were made by the public to be involved, it
turned into a public forum. At the advice of the City Attorney and City
Manager, the process was to be inclusive, not exclusive, because the City
Council wanted to have this conversation to ensure it was done
transparently. For that reason, the dynamics changed into a full-blown public
forum. On October 3, 2017, the Planning Commission held its public
hearing, and each of the Commissioners comments has been summarized
in the staff report. The Planning Commission was made aware of a small
technicality, in that the short-term rental requirements are listed in Chapter
5 of the Palm Desert Municipal Code (PDMC), which is not within the
Planning Commission's purview. However, the City Council and staff wanted
to make sure, that as the land -use authority, they had a chance to weigh in.
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REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 26, 2017
At the end of the day they recognized this issue wasn't under their purview
and decided to pass along their comments to the City Council.
Associate Planner Kevin Swartz noted that approval of either
recommendation being proposed would implement new regulations for short-
term rentals relating to enforcement, operational requirements, and
communication, stating there are two options on how the City handles
density and land -use compatibility. He said both recommendations proposed
were agreed upon by the ad hoc committee and staff, which includes the
categories of Enforcement, Operational Requirements, and Communication,
but they could not reach a consensus on Density. With regard to the
Enforcement category, currently the City's Code Compliance Department
manages all complaints for STRs. The City has a third -party consultant that
is tasked with searching websites for non -permitted STRs or for advertising
something that is not part of their permit. The City also has a hotline number
where residents can call, which then goes to a dispatcher who calls the
operator, owner, or representative, and they have 60 minutes to respond to
solve the problem. Staff is hearing that the City isn't doing enough and that
it needs more tools, because the hotline is not effective, adding that many
residents weren't aware of the hotline and that the response time of 60
minutes is too slow, including that the fines are too low. The current
administrative fine structure starts at $250, the second fine is $500, and the
third is $1,000. Therefore, staff is proposing the first fine to start at $1,000,
the second citation $3,000, and the third citation to be $5,000 with a
revocation of the permit for a period of two years. He said there are
individuals operating without permits, so staff is implementing a fee structure
of $1,000, and the second fine would be $5,000, with the City having the
right to refuse a STR permit to that owner. Part of staffs recommendation
is to have the City Council direct staff to look at some sort of a swing -shift
officer that will work on the weekends and late evening hours in order to
have someone that can actually respond to a complaint on site. Staff is also
proposing a Request for Proposal (RFP) to seek third -party options or a
different operator for the hotline and website. The second category is
Operational Requirements for Owners and Renters. Staff has learned that
the current Ordinance lacks accountability between the owner and renters,
so staff wants to implement procedures making them more accountable. The
first one is to require they meet and greet on site, so that the owner can
provide a copy of the Good Neighbor Brochure and go over the rules
regarding noise, parking, trash, etc. The renter will be required to sign a
formal acknowledgment; the form would be provided by the City. They are
also to provide the operators with a 24-hour contact information, stating this
requirement provides the City the opportunity to fine both the occupant and
renter. The current Ordinance requires a response time of 60 minutes, and
staff is requesting to reduce it to 30 minutes. The category of
Communication is being addressed due to the lack of communication
between existing homeowners, renters, and operators. He said existing
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homeowners need to know which homes are short-term rentals, which is why
staff is requiring that the Applicant provide to the City mailing labels of those
within a 200-feet radius of their property, excluding the PR Zones, because
most of those homes are gated. He added that homeowners' associations
(HOAs) do a good job of letting residents know which homes are short-term
rentals. Notification is to be sent to those residents within 200 feet, and the
City would provide a copy of the Good Neighbor Brochure where it will list the
hotline number or the swing -shift officer's number, if the City decides to hire
one. He noted some HOAs are more financially stable than others, such as
Bighorn, Desert Falls, Palm Valley, etc., where they have on -site security to
regulate STRs, but others do not. In some HOAs, their CC&R's (Covenants,
Conditions, and Restrictions) do not permit STRs. Some HOAs are adding
language to their CC&R's to exclude them and if legitimate, the City would
not issue permits to those neighborhoods. The last category is Density,
where he will cover the approaches the City will take. He displayed a map
of the City and pointed out the gated communities and their locations. When
talking about density, two recommendations are being proposed, the one
from the Committee creates a buffer/separation, and the one from staff
prohibits any new STRs within the R-1 and R-2 Zones. With the
Committee's recommendation, there wasn't a consensus due to the buffer
idea, but they did agree to move the Ordinance forward to this point. The
buffer would only apply to the R-1 and R-2 Zones, in that no new rentals
would be allowed within a 500-foot radius in the R-1 Zone and within a 300-
foot radius in the R-2 Zone. The idea was to eliminate concentration on one
side of the street or block, precluding one neighbor from being sandwiched
in. He displayed a map indicating where all the known STRs were located.
With regards to staffs recommendation, he said the moratorium allowed staff
to study the impacts of STRs within the community, and it allowed residents
to voice their concerns. Staff has heard from hundreds of residents who
have stated their quality of life is suffering and many have considered moving
out of Palm Desert. Therefore, staff proposed not allowing any new STRs
within the R-1 and R-2 Zones. The existing STRs will be able to continue to
operate as long as they are in compliance with the Chapter. Staff is
confident that with the proposed enforcement, it will remove bad operators
and allow reasonable ones to continue to operate in a respectful manner,
and from a land -use standpoint, prohibiting STRs in the R-1 and R-2 Zones,
was the right thing to do. However, STRs will be able to continue in the PR
and R-3 Zones. Regardless of which recommendation the City Council
chooses, if any, both the Committee and staff recommend issuing two types
of permits. The first one would be a Temporary Short -Term Permit that would
still apply to the R-1 and R-2, where a homeowner could obtain a temporary
permit to rent out on four separate occasions for no more than 18 days.
They could use all 18 days as one occasion or break it up into two or three,
but no more than four. This would provide the opportunity for those
individuals who rent out for the festivals or tennis tournaments. He said
many residents have stated they leave during those weekends, because they
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don't want to deal with the crowds, but they are able to capitalize on that
financially. With the Temporary Short -Term Rental Permit, the Applicant
would still have to comply with all STR requirements, including paying
Transient Occupancy Tax (T.O.T.). The other permit is the On -site Owner
Permit, which would be a homeowner that wishes to rent out a bedroom or
casita. With this permit the owner would have to live on site while renting out
the room or casita and demonstrate occupancy, which could entail
verification through a neighbor. Again, the applicant would have to be
compliant with the STR Ordinance and paying T.O.T. In conclusion, staff
has put forth the amended recommendation in the belief that the City's
primary role is to define uses within each zoning district. Short-term rentals
seemed to blur the line of compatible uses within the single-family zones to
the point that the amended recommendation is the best course of action. He
offered to answer any questions.
Mayor Pro Tem Jonathan inquired what constituted a violation, because
when a resident calls in a complaint about noise and within 30 minutes the
noise is gone, then at 2:00 a.m. it's noisy again or it happens again in the
next weekend. He questioned at what point is there an actual violation
subject to the sanctions described by staff.
Mr. Swartz responded that if the City moved forward with a swing -shift
officer, that officer can make a judgement call, and if found in violation, a
citation can be issued on site. Further responding he said there are decibel
levels for noise, which may be hard to measure, so again, a judgement call
would be made.
Mayor Pro Tem Jonathan stated he would assume that in a case where there
is timely compliance there wouldn't be a violation, even though the adjacent
neighbor had been disturbed, but what happens when it happens again or
on the following weekend.
Mr. Swartz said there is nothing written on whether someone gets one or two
strikes, but it would be a judgement call.
Mayor Pro Tem Jonathan asked staff to elaborate on the hours of operation
for the swing -shift officer, because the way he's reading it, it will not result in
a 24/7 live person answering the phone.
Mr. Swartz said staff hasn't established the guidelines, it's something staff
is asking the City Council to allow them to look into.
Mayor Pro Tem Jonathan requested staff explain the statement made that
HOAs can opt out of regulation, asking if there was a presumption that they
will self -regulate, in which the City plays no role.
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Mr. Swartz replied that HOAs can self -regulate if they want to impose more
restrictive limitations or conditions, but they still have to abide by the City's
Ordinance, which still has enforcement tools. Further responding, he said
the HOA can say they don't want music past 8:00 p.m., which is something
that is not in the City's Ordinance. In other words, HOAs can come up with
stricter rules.
Mayor Pro Tem Jonathan said he failed to understand that staff was
differentiating between regulation and enforcement. Therefore, enforcement
would still be provided by the City, but if an HOA wanted to set the bar
higher, they could.
Mr. Swartz concurred, added that some HOAs impose fines on their
residents as well.
Councilmember Kelly stated her question relates to staffs recommendation
to omit STRs in Planned Residential areas from the requirement of mailing
a notice to nearby neighbors. Because when looking at the map of where
existing STRs are located, there is the occasional odd STR in an HOA that
doesn't seem to have them. Therefore, she asked if staff thought about the
fact that requiring mailing of the notice would alert folks that somebody had
submitted an application for a permit in an HOA that perhaps doesn't permit
STRs.
Mr. Swartz said staff believes that with the new language, HOAs can contact
the City and hopefully solve that issue.
Mayor Harnik commented that the way she understood the fine structure
based on the language, it could be possible for someone to get multiple fines
for different things in one day. If someone had a 7-day rental, they could get
a $1,000, $3,000, and $5,000 fine during that period.
Mr. Swartz agreed.
Mayor Harnik went on to say that the fines for those non -permitted operators
were not stiff enough, questioning if there were guidelines that staff used to
come up with those figures.
Mr. Swartz agreed, stating staff originally looked at higher fees such as
$10,000 and $15,000, but the City Attorney advised it would be difficult to
collect those higher amounts.
Councilmember Weber pointed out that in some cases, it could be the
resident didn't realize they needed a permit, which can be discussed when
being cited, because many people told her they were unaware and had not
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idea they needed a permit. Excluding those in the audience today, she
believed there is a reasonable amount unaware of the requirements.
Mr. Swartz said the violator will be informed, but they will still be issued a
$1,000 fine.
Mayor Harnik declared the public hearing open and invited public testimony
FAVORING or OPPOSING this matter.
MS. DEBRA HOUSTON, Joshua Tree Street, Palm Desert, approached the
Council to express her support of STRs, stating she had been coming to
Palm Desert for more than 20 years before she was lucky enough to buy a
home, which she has renovated and rented out since 2008 without any
complaints. Since then, she has built some wonderful relationships with her
guests that want to rent a home rather than stay in a hotel. These guests
take care of the house like it was their own, and they spend a lot of money
in Palm Desert whether it is dining, gas stations, golf courses, shopping, etc.,
and in addition, they are paying their Transient Occupancy Tax (T.O.T.).
She agreed that if there is a party and nuisance house, they should have
their permit revoked, so she was in favor of punishing the few perpetrators,
but not penalizing the many law-abiding homeowners and renters who want
their vacation private homes. She asked that instead of creating a
catastrophic ordinance, instead create tougher regulation to set apart
nuisance renters, because they are not wanted anyway.
MR. BRETT MITCHELL, Ironwood Street, Palm Desert, shared he was
concerned with the proposed fines, because what happens when someone
who is against STRs makes a small investment of renting their home for
three days with the intent of obtaining a citation. Further, he has invested
more than $15 million in Palm Desert, stating the homes he's purchased
were disasters and he renovated them and their property values have gone
up. He said Palm Desert will rethink this just as the City of Indian Wells,
because their property values have gone down in the last three years and
they are hoping to get STRs back. He said investors don't want bad renters,
they want good relationships with the neighbors. He reiterated that the City
needs to consider the owner who doesn't want a STR next door, how simple
it would be to get someone with three strikes.
MR. RICHARD FOLKERS, Juniper Street, Palm Desert, thanked the City
Council for all the time dedicated to this matter, because it is controversial
and difficult to handle. He personally has STR on the left, right, across the
street, and two down the road, so that 200-foot rule would cover four units.
He asked what could be done to get bad operators removed, because he
didn't think there was anything strenuous enough for those who are in his
situation. He knew these investors put a lot of money into these homes and
fixed them up, and it's a concern to them to lose their rentals, but on the
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other hand, these areas used to be neighborhoods and they are losing their
flavor. He requested placing five-year term limits on permits, because some
situations are very controversial, understanding that it works well in some
places, but no so much in others.
Mayor Harnik pointed out Mr. Folkers was a former Public Works Director for
the City of Palm Desert.
MS. JACQUELINE DAMRON, Silver Canyon Lane, Palm Desert, noted she
was also a homeowner at Big Bear Lake, but she doesn't rent her houses.
She went on to share that in Big Bear they did the 24-hour hotline, and it
doesn't work. The expectation is that someone is going to be on duty
answering the telephone and someone's going to be dispatched, but it
doesn't happen. She said a homeowner can be very careful in whom they
think they are letting into their home, but suddenly there are 14 cars and 35
people, and they spend the night; the trash and parking are a nightmare.
She expressed her opposition to the City spending $100,000 for a 24-hour
hotline and swing -shift person and asked the Council to reconsider.
MR. JIM WALKER, San Jose Avenue, Palm Desert, shared that the issues
in his street started in 2013, when an out of the area buyer bought a house,
remodeled it, and increased a five -bedroom house by making the garage
part of the home and inserting two more beds there. So this home now has
room for 12 people, but is advertised for 14 people on the website. This
home is always over occupancy, and they have been fighting this issue for
years. He noted the City has worked well with them, in that they understand
where they're coming from. He said the homeowner has never cared about
the neighborhood, so the neighbors band together to approach the City.
Because of the parking issues, a neighbor painted the curb red to keep them
away from his house, so all the parking ends up in front of his area and
mailboxes. The problem he has now is diminishing returns, and why should
this neighborhood improve their homes when STRs bring their value down,
which is totally wrong. He said they are opposed to STRs, and the fines
don't matter as long as the bottom line is black. He said the current
regulations don't work, in that they have used the hotline and have called
upon the Sheriff's Department on several occasions to supplement their
enforcement. He asked the Council to take his comments into consideration,
stating he appreciated the City's efforts on this matter.
MR. DEBRA VOGLER, Shadow Mountain Drive, Palm Desert, stated she
was opposed to STRs in the R-1 and R-2 areas, including other areas that
include residences. In the event the City Council took a vote to allow them,
she asked the City to consider imposing the following requirements and
restriction to avoid them becoming party houses masquerading as single-
family homes: 1) STR should not be rented for less than 30 days; 2) rentals
should be comparable to local hotel rates; 3) require contracts by
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renter/landlord/owner to be filed with the City prior to renting; 4) charge a
separate administrative fee for maintaining contracts; 5) contracts should be
assessed at the time contract is filed; 5) failure for completed documentation
should result in a fine; 6) tax payer money, including taxes on residential
properties should not be used to promote or enforce code compliance for
specific business segments or sectors; 7) consultants or writers should not
add to the burden of extra police enforcement; 8) other home businesses are
not allowed to add to the traffic burden or disturb the peace, and should not
require extensive code compliance monitoring; 9) impose a Transient
Accommodation Tax sufficient to enable the City to hire sufficient number of
code officers with authority to cite and arrest violators if necessary. She said
this expense should be seen as the cost for doing business and therefore
shared by the short-term business owners. She went on to list other
numerous fees, restrictions, and regulations. Lastly, she urged the City
Council to work with Coachella Valley Economic Partnership (CVEP) for the
right kind of infrastructure that will enable the City to bring high-tech
companies to the area, because it needs more than hospitality and tourism
to grow the economy and raise property values.
MR. STEPHEN ROSE, East Sunny Dunes, Palm Springs, complimented the
City Council of Palm Desert on whatever it decides, because it went through
a thoughtful and inclusive process. He felt compelled to share the misery
that has been brought upon the residents of Palm Springs in single-family
neighborhoods. Where he once knew his neighbors, they are now living in
a neighborhood of strangers where 15% to 20% of the homes are full-time
hotels, and 80% of them are owned by someone out of the area, stating the
majority of them never spend a night in them; it is tearing their
neighborhoods apart. In a single year over half a million tourists decent on
neighborhoods that are already inhabited by 25,000 residents, stating they
are being crushed. He said residents have been forced to run a ballot
initiative to take back their neighborhood. The initiative is very similar to what
Palm Desert is presenting to its residents in recommendation B, with a
notable exception that Palm Springs has included a 24-month sunset period
on existing STRs. He urged the City Council to protect and cherish the
neighborhoods, because they are much more than just another venue for
tourists, and not to sell them out for an 11 % of the take. The whole scheme
enriches the few at the expense of many. For years residents shared their
community and entertained their guest, and it wasn't for money, but for the
pride of place and the comfort of their company. If the industry wants to
provide this product, they should build a vacation village on properly zoned
land, and they should build them to the same Building, Health and Safety
standards that are required of hotels. He said if you break the neighborhood,
like Humpty Dumpty, you can't put them back together again.
MS. JANINE JUDY, Masson Street, Palm Desert, stated she lives on a long
cul-de-sac consisting of twenty homes. Currently there are three STRs on
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her street and one directly behind, and the three on her street are owned by
the same owner, adding that only one non -short -term -rental separated the
three homes. Two of the STRs are definitely party houses, stating she
couldn't imagine what the neighbors who live behind them or next door
experience almost every weekend. In 2009 she moved to Palm Desert from
another local City to be closer to her job, but more important, to live in a safer
neighborhood. Unfortunately, she no longer felt safe with the increase traffic,
strangers, noise, and Uber drivers who drive extremely fast in a family
neighborhood. One of the options for consideration this evening is a buffer
for the residential zones. If buffers are to be implemented, why should there
be a difference between R-1 and R-2, because both are residential family
homes. Whether or not they are houses, condos, duplexes, or apartments,
STRs have no place in single-family neighborhoods, since they are basically
a commercial operation. She supports staffs recommendation to prohibit
new STRs in R-1 and R-2 Zones. Her street is a family neighborhood, not
a hotel district. She also agrees with staffs recommendations to prohibit all
new STRs, higher penalties for continued violators, and stricter enforcement
procedures. She said residents do not know the names or the history of
those in STRs, so how does a City protect the residents, especially their
children from strangers.
MR. HECTOR AYALA, Willow Street, Palm Desert, stated he built his home
as a vacation rental and this past year has been extremely complicated for
him. He said many people are coming back to the Desert and he's being
asked if the moratorium has been lifted. His response is that it has not been
lifted, but he has offered to take them to Palm Springs. This group of 40 to
50 people comes with a lot of money and have been coming to the Desert
for many years, but they decided to stay in Palm Springs. He knows a lot of
people that rent their homes and they will always use them as vacation
rentals, but the City won't be collecting that T.O.T. He said they have been
building homes in the Desert for a while, and they are to be used as a
vacation rental, adding they pay the school and City fees. He said the City
hasn't enforced the T.O.T. and is losing a lot of money, but once enforced,
he believed the amount collected by the City would be doubled. His
recommendation is to restrict rentals to people over the age of 30 and not
allow music at all. The house he built was meant to be used as a vacation
rental, but with the moratorium, it sat empty that he's experienced several
break-ins. Until the City makes a decision and/or provides solutions, he has
a police officer staying in the house free of charge to avoid it being
vandalized.
MS. SHELLY BRICKER, San Pasqua!, Palm Desert, shared she has three
STRs on her street, and the two across the street are rented together as one.
The house is advertised as 12 bedrooms and sleeping 30-plus people,
stating she didn't understand how that was allowed. Regardless of what the
City Council decides this evening, she requested these houses be looked
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into specifically. She won't list everything she's had to endure these past
three years, which includes increase crime involving these homes directly,
to the point where a property owner had to hire a private security for a period
of time. She grew up in Palm Desert and chose to raise her children here,
stating she is an active member of the community and former president of
Washington Charter Parent Teacher Organization. Palm Desert schools are
the best and at the top of the list in the State, and she is representing the
young family demographic that helped develop Palm Desert into what it has
become. She is opposed to reducing neighborhoods into cheap weekend
short-term destinations. She asked the City Council to listen and take into
consideration what its residents have to deal with on a daily basis.
MR. JIM KANE, Skyward Way, Palm Desert, offered that for most of the past
35 years he's marveled at the way Palm Desert has managed their mix of
commercial, residential, recreational, and educational opportunities, stating
it's been done better than any other city in the Valley. However, in 2012, the
City took a wrong turn when it permitted STRs in all neighborhoods. He
didn't want to play the blame game, because he believed the City Council
acted in good faith then in trying to alleviate some economic problems from
the 2008 collapse. He understood no one could have foreseen the tidal
wave of STRs and the exponential growth of Airbnd or their ability to out-
think the hotel industry and most cities globally. He wants the Council to
know that the experience of the past five years has made them adamantly
opposed to STRs in the R-1 and R-2 Zones. To paraphrase the City's own
Vision Statement, "Neighborhoods are supposed to be the building blocks of
the City." The truth is that out -of -control STRs are a cancer in a
neighborhood. He supported staffs recommendation, but it didn't go far
enough, because you can't cure cancer with a band -aid. He said this was
a lot bigger than just a few older retirees wanting to live in Mayberry. He
invited the Council to drive by the neighborhoods to see the hundreds of
street signs or the petitions with almost 2,000 signatures that have been
gathered in opposition to STRs. They are not oblivious to the challenges
before the City Council, and they are extremely appreciative of the time
Council and staff has spent on this matter. On a positive note, he discovered
there are a lot of bright, educated, and caring neighbors who can come up
with a solution to a dilemma if they are asked. He begged the City Council
to listen to this group, stating it will hear some very innovative and
progressive ideas at a better way to write an Ordinance that will actually
boost real estate values and will properly support the local resort industry.
Best of all, it will reduce the insults to the quality of life of the citizens that this
Council was sworn to serve.
MR. ALAIN PINEL, Buckboard Trail, Palm Desert, an active real estate
broker, shared that over time he had the privilege of running several of the
top ten real estate companies in the country. As City leaders, it has to
envision what they want Palm Desert to become. In 2012, the City passed
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an Ordinance that completely changed the quality of life in residential
neighborhoods. As soon as the minimum rent stay was cut down to two
nights, hunting season was open for investors to rush and buy whatever
home they could grab. It didn't take long for the negative impacts to take
effect. Gone were the motivations many people had to purchase a home in
Palm Desert, including the prospect of attracting badly needed young people,
entrepreneurs who could open a business here, diversity of residential
neighborhoods, sense of sanctity for those wanting to raise their families
here, and the hope of building equity. The City receives $1.5 million a year,
but the City's amazing benefits such as the weather, available space, and
affordable prices will actually go to waste, because the right people are not
being marketed. He doubted town leaders meant to create this crisis, but it
happened. However, today, it wants to be a good community partner by
reestablishing the 30-day minimum stay in residential neighborhoods to
regain control of the City's destiny by making it a safe and enjoyable place
to stay.
MR. BRUCE POYNTER, Calliandra Street, a retired local fire captain, shared
he has five STRs within sight of his property, stating that on any given Friday
or Saturday night, one or more of them generate ten times the noise and
traffic as all the neighbors combined. There is loud music, car horns, car
doors slamming, screaming, yelling, and often fighting, stating no hotel would
tolerate it. On three of the past Saturday nights, at least one or more have
required, police, fire, or medic response, and sometimes all three. One of
his neighbors has required public safety services in that time frame. Besides
supervising an engine company and paramedic units, he also monitors fire
and police dispatch, and on the same Friday and Saturday night, these
parties are full blast and it happens to be the busiest for emergency services.
He said police are dealing with armed robberies, drunk drivers, tractor/trailer
crashes on Interstate 10, and the Fire Department is responding to house
fires using the jaws of life, extricating crash victims on Highway 111,
paramedics are resuscitating drowning victims, drug overdoses, etc. He acts
as the defacto site manager while the business person is sound asleep in
Orange or San Diego County. With the turnover of these properties and the
percentage that turn into parties, he didn't believe any number of code
enforcement officers can control them. He said complaint will rotate to law
enforcement, and dispatch will put noise disturbances at the bottom of the
list, meanwhile the party goes on. He understood both sides of this issue,
because he comes from a large family of real estate brokers and agents.
However, full-time residents are suffering more than most are aware and out
of town investors don't care. He believed Palm Desert has the best Council
and best services in the Valley, but as a resident, he felt abandoned in favor
of commercial interest. He asked the City Council to restore the 30-day
minimum stay, so that neighbors can return to the peaceful and friendly
place it used to be.
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MS. DENISE TOLAND, Buckboard Trail, stated their mid-century duplexes
were built in 1963 and her unit shares a common driveway and carport, and
laundry rooms are access through adjacent exterior doors. For two years
nothing but a four -inch thick wall separated her from a STR. She is a woman
living alone and one day coming out of her home she felt like she was
emerging out from a Motel 6. If only properties had security guards and
surveillance cameras like Motel 6. She shared how one morning a shirtless
shoeless man appeared just outside her laundry room, and on one afternoon
her door opened, it was a couple who mistook her home from a STR. Also,
on one evening a man on drugs mistook her home for the one next to hers,
he was fresh out of prison looking for an old girlfriend. With drug induced
strength, he shook her door forcefully, lifting the hinge pins half way out from
the hinges, and she called 911. Police couldn't get there fast enough that by
the time they arrived he was gone, and she was assured he was no longer
in the neighborhood, but ten minutes later, he was back again pounding on
her door. She said these intrusions forced her to purchase a semiautomatic
weapon and learned to use it. When STRs make her feel vulnerable and
afraid, she feels safer with her loaded gun. She asked if that's what the City
wants, fearful residents purchasing guns to protect themselves from
strangers in the neighborhood, stating it was not a Palm Desert she cared to
envision.
MR. DAVID TOLTZMANN, Bursera Way, Palm Desert, stated he has a STR
behind his residence. The STR is a new home built specifically for vacation
rentals. Last week he called both the Sheriff and Code Enforcement twice
for late night violations, stating he's had to do this all summer. He
questioned why he had to police the property, listen to the drunken pool
parties at 1:00 a.m., and dreaded the Friday check -ins, including having to
all the Sheriff and Code Enforcement all the time. He moved to a home with
a vacant lot behind it, and now he has a small hotel. He didn't consider
himself an old fart who doesn't want change, because he understood change
was vital. However, STRs and their investors are not the answer, and they
have no place in residential neighborhoods. He asked the City Council to
ban them in the R-1 and R-2 Zones with a sunset clause to phase them out,
and return neighborhoods to neighbors.
MR. DAVID PETERS, Amber Street, Palm Desert, a general builder
contractor and a real estate broker, stated there is a STR next door and one
across the street. The one next door he helped build and sell, but the new
people in it now have seven bedrooms. The house he sold had four
bedrooms, but the three -car garage was closed off and converted to more
bedrooms, which meant they can have up to 14 people staying there and
another 5 or 6 people during the day. He said there could be up to 20
people next door, and he's tired of having to sleep with earplugs because of
all the noise, or having to police it. It was time for the City to take a different
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approach and see what works in Palm Desert. For many years the 30-day
rental worked well where there were people coming from Canada and stayed
30 to 60 days, including people from the east coast. He said those types of
guests participated in the City of Palm Desert shows, charities, church, etc.
He reiterated this problem didn't exist when the minimum stay was 30 days,
adding the City didn't have hundreds of letters or signed petitions to stop it.
He asked the City Council to reinstate that 30-day minimum stay. The
reason these renters don't stay at a hotel is because they can't raise their
music to high decibels or do the same thing they can in a house. He asked
the City Council not to feel sorry for these people, because if the City puts an
end to STRs, the owners will probably make a big amount of money when
they resale. According to the multiple listing, Palm Desert property's prices
are flat based on the average price of a household, and it's been that way for
the last four years, which he believed was due to the STRs. He heard hotel
companies won't come to Palm Desert, because of the STRs.
MR. PAUL MURPHY, Shyward Way, Palm Desert, stated he and his wife
moved to Palm Desert from Oregon 19 years ago, adding they normally
spend their summers in Oregon. He offered that in northern Oregon coast at
Cannon Beach, today more than 60% of the single-family homes are STRs.
His niece has a lovely home in Cannon Beach, but six of the eight homes on
her street are STRs, stating she doesn't want to be there because it's so
noisy and out of order. He said school enrollment is down that they can't get
people to serve on committees in Cannon Beach, and their city manager
resigned because he was sick and tired of running a hotel. In Gearhart
where they have their summer home, a community of 2,500 has 78 licensed
STRs, but only two are owned by people that live there. They will be phased
out as the homes are sold or the owners pass away. Of course STR owners
aren't thrilled, so they started having recall elections, but that didn't work, so
now they are trying to change the Ordinance. In any regard, it's a mess
there. As a matter of fact, that election is coming up in November. Now
let's look to what's happening here, where a couple of weeks ago he
assisted a young man carrying 20 bags of ice into the STR across the street
from his home. He asked him why he didn't go to a hotel and the response
was that they were kicked out the first hour they were there. Further, a few
weeks ago, there were nine vehicles parked on the street and two in the
driveway. One was right in front of his mailbox where the mailman had to
knock on his door to deliver his mail. He walked across the street and rang
the door bell to inform the STR guest about the vehicle parked in front of his
home, and the response was that it was a public street and they slammed
the door shut. He emailed Councilmembers Gina Nestande and Kathleen
Kelly, and they spoke to the City Manager who then sent Public Works to
paint the curb red in front of the mailbox, which he believes the cost of that
is paid by the taxpayer, questioning if the City was going to paint every curb
red that's by a mailbox.
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MS. SHERRELL SUTHERLAND, Broken Arrow Trail, Palm Desert, a retired
assistant chief for the California Highway Patrol, approached the Council to
talk about the problems with code enforcement. She has no criticism of
Palm Desert's Code Compliance Officers, because the system itself is
designed to fail. No matter how many officers, ordinances, and fines it
institutes, law enforcement is most successful when there is proactive
enforcement where you actively look for violations and curb them before they
become a bigger problem. She remarked it was such a disservice to the
residents. The current STR enforcement plan is reactive, in that the City
responds after someone has been bothered to the point of calling the police
before anything is done, and even then, an officer may not be available
based on the hour of the day. If a Code Enforcement Officer is not on duty,
the call falls on Palm Desert Police Department to handle, and yet the
Sheriff's Department was never included in the planning about how to deal
with the response to STRs. The next problem is that many of the new
regulations in the draft are not enforceable, questioning how the City will ever
know if new tenants are greeted by a responsible party and briefed about the
good neighbor policies or if a STR responsible party responds to a complaint
within the required time frame. Additionally, how can the City enforce
parking restrictions without knowing what cars belong to the tenants of a
short-term rental. She reiterated that these ordinances are setting up Code
Enforcement Officers for failure. She heard the argument that they might as
well make STRs legal, because they'll continue to exist by going
underground. If the City couldn't enforce a few non -permitted STRs, how did
it think it can handle a vast expansion of permitted ones. She added that
she was confident that the majority of the residents do not want STRs,
stating she and others are willing to be part of the solution and urged the
Council not to hesitate in reaching out to them for committees or
suggestions.
MS. DONNA AULT, Haystack Road, Palm Desert, thanked the Council for
addressing this important issue. She said pride of ownership is important to
Palm Desert, stating it's what kept neighborhoods attractive, including
increase property values in a thriving real estate market. Pride of ownership
is the model of a healthy economy and healthy city, and it is not the model
of STRs. She said many residents feel abandoned by the City, distressed
that so much consideration has been given to the multiple commercial
acquisitions of out-of-town investors. The values shared of being good
neighbors seemed to be working against the residents, because these
investors ravage Palm Desert residential neighborhoods. Residents do not
want conflict, however, they have been compromised long enough. Their
health, property values, and standard of living were the reasons they
purchased a home in Palm Desert, but they have been compromised. She
understood any investment is a risk, but they do not want to regret theirs, nor
do they want to leave the neighborhoods that they love. They have no
problems with owner -occupied rentals, but do have a problem with out-of-
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town investors making an obscene amount of money at the expense of
residents and neighborhoods they have worked so hard to create. Unlike
many of the residents, they have options. They can turn STRs into 30-day
rentals, sell their properties, or profit from long-term leases. Additionally,
they can invest in mix -use areas zoned for STRs. She said so many
communities across the state, country, and world are trying to come to grips
with the affliction of short-term rentals, and it is this Council's opportunity and
calling to correct the problem inherited. She appreciates that Council wants
to stop the bleeding, but she is asking that it remove the disease.
MS. CHRISTEL PROKAY, Siesta Trail, Palm Desert, stated she and her
husband were proud residents of Palm Desert for 45 years. She understood,
like everything else, a town may change, but it should change for the better.
She held a petition with almost 2,000 signatures opposing STRs in
residential neighborhoods, and those numbers are increasing. The
signatures are from local residents and businesses that pay local taxes. She
said it was worth noting that about 80% of the people she contacted are
opposed to STRs, they are frustrated, concerned, and some deeply angry
with the current situation. She went on say these residents build the
neighborhoods, so for them this battle is about the soul of Palm Desert and
what they want its future to be. She prayed that this Council does not
transform the town into an Airbnd destination and its residents into second-
class citizens. She thanked the City Council for listening and asked for their
immediate help.
MR. TIM SKOGEN, Skyward Way, Palm Desert, thanked the City Council for
their time, stating he and his wife have resided in Palm Desert for 35 years.
They and the neighbors care deeply about the City that is being torn apart
by the negative impacts of STRs. The adverse repercussion on real estate
values and sales patterns, using industry standards and statistics, the
average Palm Desert home value has essentially remained flat over the last
four years, while other areas in California have almost doubled. Another
critical metric is days on a market prior to selling. Palm Desert homes are
averaging 28% longer to sell, which is directly impacted by the third factor,
which is the percentage that is reducing the selling price, which is a 18%
drop from initial pricing. None of this is good news for Palm Desert residents
and they should be very concerned. One may ask which city has a high
number of STRs in R-1 and R-2 neighborhoods, because there is some
correlation here that needs correction. In his neighborhood there is a house
for sell since May, and it's already dropped in price $80,000, and that won't
be the end price. The market report for that home advertises it as follows:
"The home is a huge value with huge income opportunity in that short-term
rentals are permitted, offering no HOA fees or restrictions, a perfect home for
music festivals and part-time retreats. You can make thousands on Airbnd,
VRBO, and seasonal guests. Personal options make this home a winner."
He said the City was incorporated in 1973, which is 44 years ago, so for
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more than 40 years the neighborhoods were the envy of the Valley. Since
the Ordinance was changed five years ago and reduced to a two-day stay,
communities have degraded, which was not this Council's doing. This was
the time for this Council to do so something about it, stating many campaign
platforms promised to protect the quality of life and public safety. He asked
the Council not to abandon its promises and turn those good words into
proper deeds. He said everyone in this room is at risk of having a home next
door become a commercial and mini -hotel party house. He thanked the City
Council for their thoughtful consideration.
MS. CATHY FORRISTER, Calliandra, Palm Desert, retired bank manager,
stated she has been a resident of the Coachella Valley for more than 40
years and has resided in Palm Desert for more than 30. The Desert has
always been a vacation destination, and the City has always catered to
visitors, but it has distinct areas for them. During her years as a bank
manager, a good share of customers were seasonal residents, many rented
for a month or more, came year after year, and then decided to purchase in
Palm Desert for the serenity the neighborhoods have always offered. Those
that stayed for short periods lodged in hotels, motels, timeshares, etc., and
it kept a nice balance for all. When looking for a permanent resident, she did
her due diligence by researching the different areas at all times during the
day and all days of the week. She checked the different CC&Rs and the
different zonings, and she decided on south Palm Desert in the Silver Spur
Ranch because it felt like a small community with varying ages and quite
neighborly. When the City Council changed the rental terms in 2012, from
30 days to as little as two days, it changed the neighborhood, taking away
the sense of community. For several years now, she has noticed party -typed
rentals that have increased traffic, nosie, and disturbances at all times of the
day and night. She said these guests are not here for the purpose of
becoming part of the neighborhood, and the owners become investors for
profit, and those living near STRs become the ordinance enforcers. She
read up on both sides of the issue and her conclusion is that no matter what
regulations are placed, unless they are contained in an area away from
residential areas or patrolled by their own security and enforcement, they will
continue to disturb residents, which puts the onerous of calling and reporting
on the people being disturbed at all time. She asked the Council to restore
the 30-day minimum stay requirement for residential areas.
MR. JOHN CURRAN, Somera Road, Palm Desert, noted a letter was sent
to the City Council, but he remembered something he failed to mention. As
a former bartender near a big college for five years, he felt he could speak
about being drunk and stupid with some expertise. He's opposed to STRs
units in residential zones, because of the drunk and stupid people that rent
these houses, including the one behind his home on Haystack Road. The
City is proposing a new ordinance that presumes to solve the problems of
noise and party houses in the neighborhoods, but it won't work, because the
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REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 26, 2017
City cannot manage drunk and stupid. He said New Orleans puts drunk and
stupid in the fence quarter where it's isolated and they can manage it. You
have to put drunk and stupid in parts of the City where there is security
guards, cameras, and police close at hand. He said hotels, bars, shopping
malls, and commercial strips have cameras and security, stating they have
police crawling all over them when things are happening. He said you
cannot stop drunk and stupid by one or two code officers. If the City has 2%
of the STRs as party houses, that's 25 houses, and if they are really cooking
on a Coachella Fest weekend, one or two guys can't handle it. He said Palm
Desert has a serious management problem that can't be fixed with what is
being proposed. He believed it was in good faith, but it was tinkering around
the edges with new fines, new methods, etc., but that's not the approach
needed, the City Council has to do the right thing and get party houses out
of the R-1 and R-2 Zones.
MS. JANN BULLER, Somera Road, Palm Desert, congratulated the planning
staff, because they listened to the residents. She was in favor with just about
everything being proposed in version two, but asked that it make two
additional changes as follows: 1) add a clause that phases out existing STRs
in the R-1 and R-2 Zones. It would be great if that can be accomplished in
a year, but not more than two; 2) delete the provision for temporary STRs,
because it has the feel of a little bit pregnant. She asked the City Council to
please approve version two with the suggested changes, and then everyone
can get passed the moratorium and end the uncertainty.
MR. SAM HOOVER, Willow Avenue, Palm Desert, shared he has been a
part-time resident in Palm Desert for more than 40 years, stating he lives the
rest of the year in Lake Forest, Illinois, where he's an attorney. He came to
this issue rather late, in fact, he's only been back in town for a week, but the
neighbors brought him up to date with what's going on. He actually was not
aware of how bad the situation was, but is very impressed with the group that
has taken an interest. It's amazing that a neighborhood and a community
can pull themselves together to this extent, and the group championing the
cause are well educated with fabulous backgrounds consisting of experts in
one area or another such as bankers, hotel managers, real estate
representatives, contractors, etc., stating they know what they're talking
about. One thing was evident in that the Council is being under attack by the
STR industry. He went online and learned how these STR representatives
are taught to deal with city councils. For instance, they tell councils to view
those in opposition as whiner with anecdotal stories and portray them as
emotional. It's true they are emotional, because they are severely impacted
by what's happened. Also, these representatives are encouraged to meet
with the City Council and Mayor, and be very accommodating, making sure
they appear very reasonable, but under no circumstance give away any
ground as far as regulation is concerned. There is no mention about the
effects of their STRs on the community. He said Palm Desert is a prime
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REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 26, 2017
target and it's so lucrative to investors who buy a run down home and charge
$10,000, $15,000, or $20,000 for a week, which is enormous and a terrible
thing. He asked the Council not to enact legislation that will take -away rights
from its citizens.
MR. VAN TANNER, Cricket Cove, Palm Desert, thanked the Council for
listening to everyone this evening. He noted he had a long history with Palm
Desert when it comes to serving the community for the sole purpose of
preserving and increasing the quality of life for its residents, including tourists
who help fund this great City. In 2009, there was an Ordinance that
prohibited STRs for less than 30 days without a Conditional Use Permit. The
Ordinance that was passed in October 2012 changed the definition of STRs
to anything less than 28 days, but no fewer than two nights and three days.
This change increased STRs from 50 to 1,228 currently. While the change
increased the amount of revenue for the City to approximately $1.8 million,
it had also diminished the quality of life for those who live near them. He
might add that many of these residents were around way before the STRs
came to town. He said to whom does the Council owe its loyalty, to the
residents or those that profit from residential areas that are currently allowing
STRs. He divulged he didn't have a horse in this race, as he and his wife live
in a gated community that does not allow rentals for anything less than 30
days, but he was advocating for all those who bought their home in a
residential neighborhood that now lives near a party house. He's confident
no Councilmember would want a party house next door. Therefore, he
asked the Council to create an ordinance that gives the neighborhoods back
to its residents from those that seek short-term profits at the expense of
permanent residents. He asked that short-term rentals be banned in the R-1
and R-2 Zones, and existing ones to end by December 2019, when they
have the option of turning their property into Tong -term leases or sell the
property. He said this was an opportunity for the Council to create a legacy
and do the right thing, because this Council had nothing to do with what
happened in 2009.
MR. TIM SULLIVAN, Deergrass Drive, Palm Desert, a 25-year resident,
approached the Council to summarize the recommendations of his
neighbors. It was important to note that Project Palm Desert Neighborhoods
is a completely organic organization. There are no consultants, no public
relations specialist, no form letters, or paid legal staff. It was just neighbors
coming together hoping to work with the City to solve a real problem. Their
reason for being is to protect designated residential areas from commercial
exploitation. Real neighbors that have lived here and established these
neighborhoods are the heart of the social fabric of Palm Desert, which can't
be replaced by visitors. He said residents want to feel safe in their home and
not have to worry about a revolving door of strangers, adding they want to be
free of disruptive and disrespectful renters and outside owners, many of
whom don't seem to care. He urged the Council to end the moratorium and
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REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 26, 2017
the months of uncertainty for everyone. Version two of the proposed
ordinance is heading in the right direction, and they are ready to embrace it
with two changes. First, add a provision phasing out existing STRs in the R-
1 and R-2 neighborhoods, except when an on -site owner is present and
permitted. Counting on attrition to eliminate the 276 STRs currently in R-1
and R-2 neighborhoods could take decades, stating their quality of life has
been compromised for the past five years. A one year phase out or at the
most two years, would show residents that their City Council represents their
interest. It also provides investors and property managers sufficient time to
redirect their capital or convert to Tong -term rentals. Secondly, no permits
issued for STRs, because issuing temporary permits in the R-1 and R-2
Zones continue to favor investors who are often from out of town. City
zoning laws should not be circumvented or compromised to accommodate
other profitable STRs, especially if the long-term rental market appears
vibrant. Residents should not be asked to compromise the quality of life so
investors can maximize their profits. Lastly, they tried to establish and
recommend a proactive and collaborative approach for the future of STRs.
He knows they're not going away, he's simply asking that they be
accommodated in neighborhoods properly zoned, and in neighborhoods yet
to be developed where more forethought can be applied. This is a
wonderful opportunity to plan and partner with Airbnd and the like to create
vibrant neighborhoods for residents and visitors alike. He thanked the
Council for their time and their service to the City and its residents.
MR. STEVE NASH, Willow Street, Palm Desert, thanked the Council for the
opportunity to address this issue, including staff for producing a much
improved version two of the proposed Ordinance. He shared that he spent
seven years as a fighter pilot in the U.S. Air Force, and he is now a captain
for American Airlines. He and his wife moved to Palm Desert in 2002, where
they are raising their 11-year-old daughter. He understood the rezoning of
2012 in the R-1 and R-2 Zones and why it happened, but if the City doesn't
get a handle on it, it will turn Palm Desert into a bunch of mini -hotels
masquerading as single-family residents. The street he lives on has a bunch
of families with kids, and one block away, there are five STRs. It means
there are car loads of people they have never seen before, not knowing their
backgrounds or who they are, stating it's not the kind of neighborhood he
wants to raise his daughter. He reiterated that version two is a much better
Ordinance with a couple of additions such as adding in a sunset clause for
existing STRs in the R-1 and R-2 Zones, allowing time for people to
transform their business plan to a long-term rental, and either sell their home
or move into the home. The other change is to eliminate the 18-day/short-
term permit, because it couldn't be enforced effectively, including eliminating
the CUP's. With these common sense changes, he would be in favor of
approving version two and getting this thing done.
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REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 26, 2017
MR. MIKE MCLEAN, a resident of Palm Springs, California, noted he owned
a vacation rental company, and stated he has attended many of the
stakeholder meetings, and at each meeting he's asked for the data. What
the City Council is considering is a ban or defacto ban like there is no other
option. He questioned how the City got here, because staffs rationale was
that there was "an up tick in permits," what did that mean and how did staff
quantify it. In other words, what was the differential and the number of
nuisance calls. He is compassionate and he felt for the residents, and they
shouldn't have to go through what they've gone through, but the problem is
not in the STRs industry, it was with enforcement. The City had a new
ordinance in place since 2012, so it's apparent the City hasn't enforced what
it has, so instead of addressing enforcement, the Council is going to a
draconian measure of banning an entire industry, which doesn't make sense.
By using the City's data, it shows that 1,228 homes are registered as STRs,
which represents Tess than 3.5%. Therefore, of those 1,200 homes, how
many homes have received one citation or two citations, how many fines
have been issued, and how many permits have been pulled, etc. The
biggest issue here is that the City Council is going down a road of
unintended consequences. There are numerous cities in California that have
banned vacation rentals, but they still have them. The City of Ojai has a
population of 7,000 and this morning there were 700 properties advertised
on VRBO Home -Away.
MR. MATT BECHSTEIN, a non -Palm Desert resident, admittedly said he
was pro -vacation rental speaking on behalf of homeowners in Palm Desert.
He works for Orange Palms Vacation Homes, and like his colleague Mike
McLean, he's interested in being a good operator, stating most of their
homes don't have a record of receiving citations or complaints, because they
do their best to operate good rentals and be good neighbors. He said they
have dealt with these issues for the past two years, and Palm Springs had
an in-depth conversation about how STRs should be managed, and they did
a good job of coming up with an ordinance that worked for them. He noted
that Mr. Boris Stark who works for the City of Palm Springs in the Vacation
Rental Department was present to lend some advice as well, because
residents' concerns are legitimate and real. But on the other side of this
issue, they manage multimillion dollar assets for people who put their
life -savings into these homes and it's part of their retirement plan, and where
their families have vacationed for the last 50 years. Therefore, they do
become close with their owner -partners, and he wanted to convey that STRs
is not an insult to people's quality of life. In fact, STRs were invited to Palm
Desert in 2012 to do business and encourage a healthy real estate market.
He said professional managers were in Palm Desert and ready to respond
to real-time issues. He went on to say that if the City decides to implement
30-day rentals, it eliminates professional managers. He encouraged Palm
Desert City Council to talk to Councilmembers from Palm Springs, because
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they really put some thought into their ordinance by consulting with the
industry and community.
MS. TANYA GOFF, Clifton Forge Street, Palm Desert, empathized with
those living next to any of the party houses described by previous speakers,
but in saying that, she confessed she owned a STR in Palm Desert Country
Club. She's blessed with having fabulous neighbors where the rental is
located and there have been no complaints. She rents to families with
children and pets and it's been nothing but a great experience for her and
the neighbors of her STR. She knows this because she goes to dinner and
hangs out with the renters and neighbors, stating she's very proactive in
whom she allows in her home. What prompted her to buy another home was
so that she could have family come down to visit in Palm Desert free of
charge, because she doesn't have space in her home. She said everyone
is busy painting STRs with a broad brush that investors don't care and are
making $10,000 a week, questioning where was that house, because she
would love to make that kind of money. She added that she employs
gardeners, housekeepers, and she also has a property manager. Her rental
is on the golf course, so guests are prone to use the struggling Palm Desert
Country Club Golf Course. She would be open to making the minium stay
up to five days, but if it's increased to 30 days, it would crush so many that
do cater to families that are taking a vacation and going to a tennis
tournament, because not everybody is going to Coachella Fest and drinking
to excess. She reiterated that her guests are not outside causing a nuisance
to the neighbors like what others are experiencing, because she's
committed, and it's important for her to follow the rules, pay her tax, and be
a good citizen. For the folks that are not permitted and are a party house,
they make her angry, so she was in agreement that the City needed to find
a way to get rid of them, because they don't belong in the community, but
business does.
MS. SUSIE PEAT, Willow Street, Palm Desert, 16-year Palm Desert
resident, expressed her opposition to short-term rentals of Tess than 30 days
in residential areas. She said that in 2007-2008 Denise Roberge had a
noise issue with high decibel levels during live music at her Agusta
Restaurant at the corner of El Paseo and Portola Avenue where nearby
homeowners were disturbed by the noise for quite a while, which is the same
type of noise that STRs create. It affects residents' peace, sleep, and
productivity day after day, weekend after weekend, and it's not what
neighborhoods deserve. She pointed out that Agusta Restaurant was in a
commercial zone, yet it affected residents a quarter of a mile away or more,
so imagine that noise being just down the street. The City has more than
1,200 STRs, and they are no longer in commercial zones, such as El Paseo,
but down the block where neighbors used to be. She added that STRs are
not interested in preserving the quality of life. In reading the minutes from
2007 and 2008, it's interesting to note that many of the representatives and
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REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 26, 2017
staff that were involved at that time are still working for the City, so they may
recall the difficulties surrounding the Denise Roberge issue and asked the
Council to again vote accordingly.
MR. JEREMY OGUL, on behalf of Home Away, stated it was hard to indicate
on his speaker card whether he was in support or opposed to the ordinance,
because on the one hand it gives the City and staff powerful tools to provide
rapid response and enforcement, and impose stiff fines, which he
wholeheartedly supported. However, on the other hand, the Ordinance
proposes placing a ban on permits in certain neighborhoods, and based on
what many other cities have tried, it doesn't work. He noted that Planning
Commissioner Nancy De Luna put it so perfectly when she said, "A ban
doesn't limit short-term rentals, it simply limits the City's ability to control and
enforce the law." He said there is a lot of anger and emotion driving this
debate, and much of it is justified, but unfortunately, this issue is missing the
data. The kind of data he can offer from Home Away, in that the average
booking in Palm Desert is nine nights, and based on surveys conducted by
The Greater Palm Springs Convention and Visitors Bureau (CVB), the vast
majority of vacation renters are the age of 55 or older. His request is for the
City to get the enforcement system in place immediately and equip staff with
the tools they need to shut down nuisance operators, including collecting
data on complaints in order to know where to put the focus going forward.
Until the City has all that in place, it's too early to decide to stop issuing new
permits. Therefore, he respectfully requested that the City Council strike
Section 5.10.070 to remove the location -based restrictions and adopt the
rest of the enforcement measures and operational standards as proposed.
MS. KELLY MCLEAN, Palm Springs resident, shared she worked with
McLean Company, which is her father's, and is also a board member of the
Vacation Rental Tourism Association. Hearing the complaints and issues
from the neighbors is definitely concerning, and regardless of what steps are
taken this evening, it is incumbent upon a city to direct staff to come up with
a solution for recurring problem properties that don't even show up on the
hotline. She said residents don't want to police their properties, which she
understood, but they need a place to go to where they can meet monthly to
discuss problematic properties and have communication from both sides,
whether that is with a task force, owner/neighbor, etc., but that it leads to a
resolution. She offered that vacation rentals support 3,500 jobs, which is a
lot of people working locally. She felt a lot of fear -based comments were
made that STR guests are only here to party for a weekend, which she felt
was not totally true. The CVB did an Intercept Study from 2016, and it
indicated that 74% of the visitors that stay in vacation rentals are staying for
eight plus nights, the average age is 55 and older, and 41 % are college
educated, 30% are graduate level educated, and 70%+ are families. As part
of the Tourism Association, many of the property managers here this evening
are ready to respond, because vacation rentals in neighborhoods can coexist
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peacefully if they are managed well. She said the hotline can work if City
government works with stakeholders and neighbors to come to a resolution,
so they are opposed to a ban that will just lead to more enforcement.
MS. KRISTIN KAMINSKY, Silver Spur, Palm Desert, a full-time resident of
Palm Desert, expressed her support for STRs, claiming it brought up her
property value, brought in tax revenue and customers. She is also in favor
of compromise and rather than vehemently opposing them, she believed a
solution could be found, which comes in the way of strict guidelines and
fines. She honestly didn't believe the City wasn't doing anything about the
party homes, because last weekend she called the rental complaint hotline
and within 30 minutes that party she was dealing with was completely gone.
She was tired of STRs being lumped into the same category, in that there is
one down the street that has lovely vacationers, stating she recently met a
couple at the park that fell in love with their vacation home so much that they
want to move to south Palm Desert and purchase a property. Additionally,
an elderly couple next door rents out their casita short-term as a means of
income, so not all STRs are problems. She is also frustrated with those
knocking on her door and putting up signs against STRs as if they represent
all -Palm Desert constituents, because she didn't believe they represented
the restauranteurs, business owners, or reasonable people who can come
to solutions. Lastly, eight years ago, prior to STRs, El Paseo was a ghost
town, therefore, getting rid of them will negatively effect businesses and
cause them to go elsewhere. She believed Palm Desert needed STRs, and
it was the way of the future, but with policy and enforcement in place.
MS. CHRIS SPEAR, Virginia Avenue, Palm Desert, stated that for the past
five years she has been employed by a large vacation rental company. She
is out in the field on a daily basis with guests coming in from other parts of
the country, and whether they are here for a week or a month, she has met
so many wonderful people. However, if they don't respect the house or
neighbors, she has no problem evicting them and she doesn't need police
or enforcement. After speaking at the Planning Commission meeting, she
realized there was lack of enforcement on the City's part, and much of it is
from not understanding what goes on, because most guests are not
partygoers. The question was raised about the fines and if in a seven-day
rental they could get multiple fines, which she says no, because if it's one
she's involved with, and they are having a party, they are not getting a
second chance if she has to go back again. The party house is the
unpermitted one, which can be shut down, and it can be based on reviews.
If you have police and enforcement showing up to party houses week after
week, the guests will put those reviews on the website that the house will not
be rented, which is an easy solution. She's against the proposed zoning, in
that she lives at Palm Desert Country Club and on a weekend night she can
sit out on her patio and hear music from the Country Club, but for the most
part it's very quiet.
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MR. VINCE KARLEN, Joshua Tree Street, Palm Desert, thanked the City
Council for the opportunity to speak. He wouldn't go into some of the
unfortunate experiences he has had with STRs, stating that instead he will
focus on what vacation rentals might mean for the future of the City, which
is of interest to him as a millennial and someone who has already lived in
Palm Desert on and off for almost 20 years. He confessed he was born in
Europe and has traveled quite a bit, and he wanted to assure the Council
there are a great number of cities that frankly are not particularly unique and
don't necessarily have a special character that's worth trying to maintain and
preserve. However, Palm Desert's specialness is in the small town intimate
feel that residents enjoy, where people know the names of their neighbors
on the street they share. A very telling example, earlier this year while he
was traveling abroad, his 73-year-old mother suffered a severe panic attack,
and of course the neighbor she knew drove her to the hospital, which would
have been faster than calling an ambulance. He asked the City Council to
consider the type of investment that transients and tenants make to the
community besides providing revenue tax for improving the roads. He said
the City Council should ask themselves if these guests care about the health
of the schools, churches and synagogues, and how many of them attend City
Council meetings. He believed the answer was that they didn't care,
because they are here today and gone tomorrow.
MR. MIGUEL ANGEL GOMEZ, Buckboard Trail, Palm Desert, he and his
husband purchased a house in Palm Desert, thinking it was STR-friendly,
and they closed escrow in December, but were unable to obtain a permit.
He said they invested in Palm Desert thinking they would be able to offset
some of their investment by turning it into a vacation rental as a retirement
plan. He said residents should be thankful they live in a place many want to
visit and that it had a STR problem, but all the issues raised about noise and
party houses are justified and they need to be addressed properly. He also
owns a house outside Desert Hot Springs that is a vacation rental and has
been very successful for three years; they have 5-star reviews. They have
good neighbors there that before there is a problem, they are called to
address it and they immediately engage with the renters or Airbnb, which is
the platform they use. He believed most the problems in Palm Desert are
with vacation rentals that are party houses that need to be dealt with swiftly,
because he wouldn't want a party house next door. However, he wasn't
opposed to having a STR next door where he would have an opportunity to
meet people from all parts of the world on a regular basis, stating he would
welcome it, because most are law-abiding. He would like to be given the
opportunity to have his home as a STR in Palm Desert, and he would follow
all the rules and do everything necessary. He said the City Council had a big
decision to make and thanked them for all the work done on this matter. He
said he knew the Council will do what's right for the City as a whole, and he
will be fine with their decision.
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MR. DAVID KRAUSS, Noise Aware from Dallas, Texas, addressed the 60-
minute response time, which he believed was too long to respond to a noise
nuisance. In fact, he didn't think neighbors should be relied upon to resolve
issues. He represented Noise Aware that uses privacy safe decibel sensors
to resolve noise issues quickly without relying on neighbors; the sensor
works similarly to a smoke detector. He was once the unwilling host to a
large loud party at his own STR in Dallas. He realized that noise is a major
issue, and the way to solve it was to pro -actively respond and reach out to
your guests, which is what Noise Aware does. They recently created a
response center, which is an after hour immediate response, similar to how
a fire department would response to a fire immediately, and they have seen
awesome results. With proactive responses, 80% of issues can be resolved
within 15 minutes. It's important for the City to consider technology, because
the most important thing about the rules created here this evening is that
they work. He offered to personally provide the City with their data, stating
they have done studies of comparing short-term and Tong -term incidents of
noise nuisance issues. He also offered to help staff craft what is a very
difficult ordinance to pass.
MR. SCOTT HINZ, Acme House Company in Palm Springs, was dismayed
by all the complaints and issues being dealt within Palm Desert, because as
a professional management company, they solve issues right away. He said
they employ monitoring systems in their homes, and it alerts them even
before the neighbors call them, and it's been a fantastic tool. He said there
are solutions to dealing with these issues, but it doesn't include banning the
whole industry. He urged the City Council to use technology, because it's
real and it works.
MS. LISA RISING, Turn Key Vacation Rentals, stated they go through great
lengths to ensure they have respectful guests, homeowners, and agencies
alike by going through a stringent vetting process for guests that stay in the
rentals, and they use the technology mentioned by previous speakers Mr.
Hinz and Mr. Krauss. They have monitors inside and outside of the homes,
including video doorbells, and they also employ a security officer that makes
weekly rounds to ensure rules are being followed as it relates to trash,
parking, etc. She was in favor of employing the proposed Ordinance with a
couple of exceptions. However, she didn't believe there was justification for
a ban, adding that after six months from when Palm Springs passed their
Ordinance, they are seeing zero citations for noise issues, so they know it's
working. With more than 2,000 permits issued in Palm Springs, they have
yet to put a cap or a ban on their permits. She believed enforcement was
the answer here in Palm Desert. Additionally, there is not one city in
California that has adopted a separation or buffer rule, in that a 200- or 300-
foot buffer would create disparity and mess with property values. When you
take away short-term rentals, you take away a whole industry, because
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people are visiting Palm Desert and Palm Springs in the Coachella Valley for
a reason, and that is to bike, hike, and be part of the community.
MR. VINCE HERRING, Pinyon Street, Palm Desert, spoke in favor of version
two as proposed by staff. He has followed this process from the beginning
and watched staff work hard, and this evening there was a lot of reinventing
of the wheel, but Council had a recommendation by staff. He noted he didn't
live in a gated community, but he did have a homeowner's association and
the City Council was the board who writes the CC&R's for those that live
outside gated communities. He viewed these issues as money on the one
hand and quality of life on the other, and he hopes this Council makes the
right decision.
MR. PAUL HERRERA, California Desert Association of Realtors (CDAR),
informed the Council that they have been working closely with the Short -
Term Rental Task Force since it was created earlier this year. In addition to
discussions, they deliberated on this issue with their own 19-member
committee and ultimately came back with a consensus that residents were
raising important concerns and deserve to be addressed both in policy and
practice. Meanwhile, the City hosted stakeholders meetings that clearly
identified that Palm Desert had lacked policy tools to be responsive to their
concerns. City staff has done a commendable job to writing policy that
increases enforcement tools, penalties, and operating standards for anyone
owning or managing a short-term rental in Palm Desert. That part of the
proposal essentially is everything that was in the initial draft, including the
buffer, which received near consensus support, including their own.
However, that's where the consensus ends, because today they oppose
action that would curtail short-term rentals based on assumptions rather than
on documented track records of the individual permit holder. He urged the
City Council to approve as soon as possible enhanced enforcement and
operating standards that are in the draft ordinance, and they also request a
period of evaluation to determine if more steps are necessary. Perhaps, the
City will discover that what it proposes to accomplish doesn't work, and if so,
it would be reasonable to follow additional policy options, including the ones
they currently oppose. However, to do so now, would be to skip a vital step
in how a City may use its power and authority to constraint rights when it
finds it proper and necessary. They don't believe that the dialog of the past
six months has lead them to that point.
MR. PAUL LOUGEE, Belair Road, Palm Desert, shared he used to travel to
Palm Desert as a child and he recently got reacquainted with the community,
adding he grew up in Chicago. He fell in love with the Desert, partially
because of the uniqueness of feeling like a local for a couple of weeks, and
he also saw an opportunity to start a property management to help
homeowners do a STR with their own property and improve their return. Of
the 13 homes he now manages on behalf of permanent residents in the
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p.m.
Coachella Valley, many of them were struggling to make ends meet because
Tong -term tenants were mostly seasonal, or the tenants they did have treated
the home terribly and required an eviction by the Sheriff or law enforcement,
and at the end of the lease, the damages went beyond the security deposit.
Having now operated in the Desert in this industry over the past 12 months,
he could certainly understand both sides of the argument. As others have
mentioned, operators do not want to impose on someone's quality of life, but
the majority of the property managers have not had any issues, stating the
majority of the issues stem from enforcement and needing to address the
bad actors. He believed they are non -permitted and are out-of-town
investors, and they don't regulate their rentals. He said it was important for
enforcement to happen in order to weed out the bad operators, so that good
operators like himself don't get a bad name. Of the 13 homes he monitors,
none have received a citation. He added that the neighbors on his block
know who he is, and the only neighbor who has an issue with him, has
claimed he was racially discriminated against, but at this point, Code views
him as the boy who cried wolf. He believed it was important to have a penalty
for people that are screaming foul when there is none. Just today, he signed
an agreement with Noise Aware to install monitoring devices in his homes,
because the one complaint he did receive dealt with parking. Therefore,
since that time, with the surveillance cameras, he can see who is parked in
the driveway and the number of vehicles. It's a simple thing to do for
operators who want to be in good standing with neighbors and have good
functioning businesses.
Mayor Harnik called a recess at 9:03 p.m. and reconvened the meeting at 9:15
MS. MELISSA NALE, San Benito Circle, Palm Desert, stated she
appreciated listening to everyone's comments, because as a short-term
vacation homeowner since 2012, she has not had those negative
experiences. She appreciates Mayor Pro Tem Jonathan comments about the
citations, because she felt it was unclear. She asked for further clarification,
because if she had a guest that received a citation, she would expect her
property manager to respond and take care of the situation, and if they did,
she wouldn't expect to be fined, but if it happened again with those same
guests, she would expect a fine, and she would want those guests removed
as well. She said staff prepared a great report, because they're not easy to
do on controversial ones that have many unique issues. One issue she
wasn't aware of is the number of guests allowed per bedroom, in that she felt
a limit should be placed, because she too would be against having 14 guests
in one home in a residential neighborhood or the ability to rent next to
another short-term rental and create a big party house. She was
disappointed that she wasn't notified by the City about this meeting, given
she is a permitted vacation homeowner, but instead received an email from
a vacation homeowner group. Additionally, in reading through the Planning
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Commission minutes, there was a comment made that they didn't want to
hear from investors. However, not all people that are renting their home are
investors. She lived in this community in Palm Desert for five years, before
her life took a turn and she had to move out of the area. At the time, she
thought she would live in Palm Desert for quite some time, and she fixed up
her home to an appraised value that was higher than the rest of the
neighborhood, but when she tried to sell it, the appraisal wasn't meeting the
amount she wanted to get out of it, so she chose to put it on VRBO and
within a week it was rented out and business routed out of it. She's in
support of Option A, because she didn't think a ban as presented by staff is
necessary. She said if one operates a short-term rental correctly, it's
successful for the neighborhood and businesses within Palm Desert. She
suggested the City allow homeowners to operate their business as they see
fit, stating she has been operating successfully for five years without
complaints.
MR. GABE AGUIRRE, Skyward Way, Palm Desert, registered his opposition
to STRs, and the biggest reason is for the safety of his family, especially
when he's working out of town and leaving his four year -old -son and wife
behind. He shared he had a STR in Orange County with a phenomenal
property management company, he received his check on time, and the
place was always clean. However, on one occasion he opened up the drawer
and there was a crack pipe that his son had access to, so you don't know
who is renting your house. He divulged he has a long-term rental off
Bursera, which is south Palm Desert, to good tenants and he has had no
complaints. He is probusiness, in that he is a financial advisor locally and is
in favor of getting the economy going, but the reality is that if there is no
crime, you don't need code enforcement. He doubted the City had the
budget to spend the extra money for the enforcement required. He thanked
the City Council for all it was doing, stating he loved hearing both views on
this issue.
MS. DEANNA MORGAN, Straw Flower Circle, Palm Desert, she concurred
with all the concerns raised this evening, stating she understood there are
people that need to make a living off of these STRs, but she is one of the
unfortunate ones living next to a party house. She said most of her
weekends are spent sleeping in her guest room, because the noise is too
much. She no longer holds family gatherings because of the issues that
come along with STRs, such as second-hand smoke from both cigarettes
and marijuana, and the profanity. She is in favor of the proposed
regulations, including the 500-foot buffer, but with enforcement in place to
respond, because the hotline is not working.
MS. KEELY LEDEBUR, Siesta Trail, Palm Desert, stated she loves her
neighborhood and hopes to live in Palm Desert for a long time. Sadly the
influx of STRs brings a constant stream of strangers into the neighborhood,
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and with strangers comes misery for many. She likes to know her neighbors,
and she wants her kids to feel safe when walking the dog, stating she
doesn't want to police a STR down the street. She understands she lives in
a resort destination and wants to welcome the visitors to this beautiful City,
but there are areas zones for commercial businesses and hotels, and STRs
don't belong in the R-1 and R-2 neighborhoods.
MR. MARCO SUAREZ, Lavender Way, Palm Desert, he and his wife have
been coming to Palm Desert for more than 30 years, stating that anyone who
has ever been here knows that Palm Desert is special, whether it's the
mountain views or world -class restaurants, golf courses, or entertainment,
and he's proud to call home. However, without the hundreds of people that
flood in, to now a year-round resort town, most of the great attractions go
away. Without STRs, some of those people will never be back. Like many,
he started coming to Palm Desert as a tourist, then a homeowner, and now
a proud owner of one and possibly two short-term vacation rentals. About
11/z years ago, he purchased a home off Hovley Lane and spent $40,000 in
the local economy to fix it up, he has paid the City over $5,000 in T.O.T., and
every month they spend more than $500 on local service providers who in
turn spend the money in the local economy. Last March they purchased
another home off Deep Canyon in the hopes of converting it into another
vacation rental, but at that time, they were unaware of the moratorium. On
that home they spent $80,000 in improvements, but unlike the home on
Hovley Lane, they have yet to pay any T.O.T. since they don't have a permit.
They do spend more than $220 per month on local service providers, which
would be more if they are able to get a permit. His point is that the City
benefits from short-term vacation rentals, and he and his wife are not a big
corporation, in that he and many others are hardworking, money -saving
responsible caring people who want to invest their money wisely in order to
sail into retirement with something they are proud of. He said this was not
a quick return on investment, but it is their long-term plan to buy an income.
He didn't believe the City had a STR problem, but an enforcement problem,
because you have rentals with too many guests creating noise and parking
problems. As a business owner, he can say that the public sector has the
answer, and with all do respect, more government oversight is not the
answer. He proposed the City hire a private company to do the enforcement
and pay them only when there is a fine, giving them half the money collected,
and the other half can be used on the existing enforcement team to oversee
the private company. This proposal would not cost the City any money, but
actually put more money into the City's coffers, adding there is probably 20
other better ideas, all of which are better than density restrictions. When
voting this evening, he asked the Council to vote for progress.
MS. JARMEELA VERONA, expressed her appreciation for the opportunity
to help come up with a win -win solution. She respects the challenges the
City needs to address to try to make everyone happy, and she has so much
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compassion for homeowners that felt violated and imprisoned in their own
home and community. She fell in love with the community, the land, the
history, and she wants nothing more than to preserve the history and culture
in a positive way. She said people need to start bridging the gap between
the life and morals she was raised with and what is destined to come. She
said people need to take more leadership roles and do less fighting and
focus on solutions. One of the ways this can be accomplished is by
implementing more enforcement, consider the decibel noise system,
increase the fees in the fines, and revoke permits for repeated offenders.
She added that denying people permits before proving themselves doesn't
seem righteous or fair. She said STRs brought revenue and jobs to Palm
Desert. She said people are renovating homes that were once a disaster,
like the one sold to her. It would be great to set up committees from both
sides to find solutions, including allocating funds to them so they can do
things in the community and be a contribution. It would be nice to see
individuals that don't live here to do some volunteer work and contribute to
the fabric of the community in some way. Enforcing a moratorium now
seemed short-sighted without giving people the opportunity to function
properly and responsibility. She plans to be here for a long time to contribute
in a positive way to the community in hopes of coming up with commonsense
regulations, stating she's open to having a discussion with anyone and
helping in any way she could.
MS. DARCI HOPE shared she was a native of Palm Desert and is raising her
children here. She loves Palm Desert and its high -quality of life, including
the friendly atmosphere. As a native, resident, and constituent, she is deeply
concerned about the future of Palm Desert. She has lived here long enough
to see what happened in Palm Springs when they suddenly put a stop to
Spring Break and businesses closed down and the strip was boarded up,
adding it took 20 years for the City to recover from that grave mistake. She
said Palm Desert needs its tourists, because the economy depends on them.
Palm Desert is a second -home resort community of 50,000 people, and it's
very arrogant to think the City could even begin to survive or be as beautiful
and special without catering to the people that spend their money here.
What was once a sleepy retirement community that shut down in the
summer time has now become a bustling global destination. Yes, there are
people that rent out their primary and secondary homes, and even just a
room at a time, for the many different reasons that include hardship, losses
of job, divorce, unexpected medical expenses, offset increasing property
taxes, supplement their income, or just to make ends meet. She said
residents have been given a beautiful gift that it's even a possibility to rent
out. Unfortunately, many owners who rent out are not able to be at these
meetings, but they are helping local businesses thrive, provide employment
to housekeepers, handymen, and bringing revenue to restaurants, golf
courses, etc. Residents who are opposed to STRs are not thinking about the
repercussion of their actions, because our economy is based on tourism.
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She has a neighbor on one side that never trims her trees, they are forty -feet
tall and grow over the property line and shed leaves on her yard. She has
asked the neighbor to cut them, but refuses, so she cuts them herself, then
the neighbor calls the police. Her point is that she has a bad neighbor, but
she doesn't come down to the City and demand to have all the trees
removed in Palm Desert, because that would be absurd. No one wants party
houses in their neighborhoods, but there are far more STRs that are
responsible and respectful to their neighbors and neighborhoods. The City
has rules in place like no music outside after 10:00 p.m., but it hasn't been
enforced, otherwise residents wouldn't be so angry. The City was also not
imposing a T.O.T., which could be used toward the enforcement of those
rules. She said the City needs nighttime code enforcement, but if it hasn't
been enforcing what is already in place, how will it enforce an entire ban
without the $1.8 million, and would the City then raise property taxes. She
said the City had the perfect scenario for STRs to pay for the regulation and
enforcement of rules regarding occupancy and noise. She hopes the City
Council looks out for the future of Palm Desert and gives enforcement a
chance.
MS. MARY SUAREZ, Lavender Way, Palm Desert, stated she was in favor
of STRs, but the City needs to move forward with strict enforcement. (About
45 seconds of this recording was blank.) She hopes the City focuses on
the number of bedrooms allowed and the ridiculous 300-foot rule, because
they are still going to be there when the City implements it.
MR. JIM PEARCE, Country Club Drive, Palm Desert, Owner and General
Manager of Fairway Vacation Rentals, stated all of their properties are in
residential zones, and he was proud to say that they have never been cited
by the City or a HOA for rental activities. It's now crunch time and it's
important that a workable ordinance be adopted. He asked the City Council
to give consideration to the issue cited here, stating that unless addressed,
it will have an ordinance that is confusing, difficult to enforce, laden with
unintended consequences. At the Planning Commission meeting of October
3, 2017, two extremely misguided ideas came up during discussion. The first
idea was to extend the moratorium on the issuance of STR permits. The
moratorium has been in place for ten months and it has had the effect of
having operators go underground, the City has lost out on T.O.T, and these
underground operators have been emboldened by their success over the
past ten months. The second idea was to raise permit fees to fund greater
enforcement, which he believed was a terrible idea. The City's philosophy
should be to make it easy and inexpensive to register and very expensive
and consequential for failure to do so. Additionally, the City generates $1.8
million in T.O.T. from STRs, which is ample funding for the much needed
upgrades to enforcement, adding that amount is up about $1 million in just
the past two years. The Ordinance only requires a permit to rent for less
than 27 days, which should be amended to rent for less than 180 days,
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REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 26, 2017
stating that without the change, underground operators will claim that it was
a 30-day rental with a rotating crop of actual residents, resulting in no permit
required and no T.O.T. enforcement mechanism for the City. The mailing
label requirement has been now focused on the R-1 and R-2, which is going
to be ridiculous, redundant, and confusing for neighbors surrounding a rental
in planned residential areas. The ordinance should provide for a single date
by which all annual permits must be renewed. He suggested the date of July
31, because at that time, most operators and City staff have more time,
providing for no excuses for non -registration. He believed this was important
to address, because it does not distinguish between an innocent
administrative error and a blatant intrusion on neighborhoods. He thanked
the City for its consideration and its efforts.
MS. REBECCA LUCAS, Riata Trail, Palm Desert, shared she has a STR
abutting her back yard, and there have been numerous weekends where her
family couldn't use their own yard due to the very loud parties at the rental
house. When they use the City's mechanisms for reporting abuse, the
hotline and the Sheriffs Department, they were threatened by a lawsuit by
the owner of the STR. In addition, he threatens to interfere with the sale of
their home. She emailed a letter to all appropriate persons at City Hall
detailing these threats in June. She hoped the Mayor and Councilmembers
would agree with Manhattan Beach Mayor Wayne Powell when he said, "The
residential nature of the community, the peace and quite of the residents,
rules over someone's profit." On a side note, when the City of Santa Monica
voted on this issue, one of their Councilmembers was asked to be recused
because her husband was an attorney for Airbnb, stating she hoped this
Council will do the same with any conflicts of interest that would affect its
decision.
MR. BRENT ZAMBON, Verba Santa, Palm Desert, a single-family
homeowner in the R-1 Zone, expressed his support for the regulations of a
week ban, but not a full -out restrictive one. He believed a ban today would
be suffocating property improvement and the infusion of new families in the
community. Many of the homes in his area are older and in need of updating
similar to Palm Springs and La Quinta. He and his wife moved to Palm
Desert from San Diego by choice to start a family. He was originally
introduced to the Desert via a rental, stating he certainly wouldn't have
purchased a home without the short-term rental opportunity or 30-day ban
in place. He has invested substantially into their property with the
understanding that one day they will be able to use it as a short-term rental
or a second home or upgrade to a larger home. They now have one of the
nicer homes in the area, which at one time was the biggest eyesore on the
street. He said there are many more people in the San Diego and Los
Angeles area and beyond that have similar stories, ones that wouldn't have
purchased without a short-term rental income. He said these people are
needed to visit and investing in home improvements, and they should be
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REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 26, 2017
welcomed for investing dollars into remodeling and providing year-round
tourism. While he may see more cars in the driveway, the noise has never
been an issue, and quite frankly, he's happy to see people visit in June and
July. There are a few regulations he's a fan of where in Maui, they issue a
certain amount of permits per zone where the city is more selective about
what property will be taken on, which encourages improvement. Further, a
seven-day minimum stay would be ideal, and a three- or four- weekly rental
will allow surrounding cities to visit in May or June, because people will not
come to say an entire month in the summer. He was in favor of requiring
owners to obtain a property manager to qualify for a permit. Lastly, adopt
similar rules to the City of Palm Springs where they prohibit the number of
cars based on the number of bedrooms, and only allow 32 stays a year. The
500-foot buffer is restrictive and virtually a ban, which he was against, stating
it will derail the growth and infusion of new blood in the community.
With no further testimony offered, Mayor Harnik closed the public hearing.
Councilmember Kelly stated one of the speakers raised concern about side -
by -side properties which had been joined and rented. She asked if there
was something in the proposed Ordinance that would address such
situations.
Mr. Swartz said there was in Section 10.100, under operational requirements
for all types of short-term rentals, item "I" where it states, "No property use
shall cross over any property line."
Councilmember Nestande commented she learned a lot of things this
evening, specifically about Noise Aware and companies of that sort, asking
if staff had contact information and if it has looked into the technologies
available.
Mr. Swartz answered yes.
Mayor Pro Tem Jonathan shared he started this process with an open mind
and he had no opinion, stating he needed to absorb the comments,
experiences, and perspectives from the people. He met with a lot of folks,
stakeholders, and homeowners on both sides, including industry
representatives, etc. He said this issue was a tough one as heard by
testimonies this evening, and it's virtually impossible to make everyone
happy. His thinking has evolved and was looking at what is best for this City
and its residents. He is comfortable with staffs alternate amended
recommendation, which would prohibit STRs in the R-1 and R-2 Zones. He
also thinks that existing permits need to be phased out from the R-1 and R-2
Zones, and the time line should be through June 30, 2019, which is 11/2
years, but more significantly, its two seasons. Additionally, he didn't think the
City should allow permits in the R-1 and R-2 Zones. His rationale is that
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there was discussion about what a horrible impact STRs obviously has on
some people and their quality of life. He believed the City owed it to
residents to help in that situation. On the other hand there was concern from
industry and STR owners that they shouldn't be banned. He clarified that the
City was not banning STRs, the proposal from staff maintains 80% of
existing STRs, which are in the Planned Residential areas, and they are
untouched by staff's recommendation and can continue. The City would be
affecting 20% of the STRs that are causing 80% or 100% of the problem.
Through the process, he was searching for a reasonable compromise, and
that's where he evolved to and that's where he stood.
Councilmember Weber asked for further clarification about phasing out 20%
of the STRs.
Councilmember Kelly responded it meant phasing out 276 permits.
Mayor Pro Tem Jonathan added it was just a little more than 20%, but that
would only apply in the R-1 and R-2 Zones. Additionally, 80% of existing
STRs are untouched and there is capacity for future growth. The reason he
wants to provide a 1 % year phase out, is because he felt the City owed those
property owners an opportunity to react to the modification in the policy and
either convert to longer term rentals, occupy the home, or sell the home.
Councilmember Kelly stated she supports staffs recommendation pertaining
to the R-1 and R-2 neighborhoods. There haven't been many complaints
from Planned Residential areas, but they are not free from complaints,
because the City received quite a few submissions. It varies considerably
from place to place, but it was clear that the presence of gates and on -site
security dissuades the worst renters. She suspected that the statistic of
generating an average of nine days and average age over 55 years old is
largely driven by the significant short-term rentals in planned residential
neighborhoods, because she walked every day in south Palm Desert and
she sees the comings and goings of occupants, and its not nine days, it
people coming for the weekend. In anticipation that the Council would be
talking about a sunset provision, she asked the City Attorney to supply
suggested language and a suggested date, which is as follows:
Proposed Substitute language for Section 5.10.07(c): Existing
Short -Term Rental Permits in R-1 and R-2 Zones may be renewed
if otherwise qualified, but all such Short -Term Rental Permits shall
terminate, and such uses permanently cease operation, by July 1,
2020. Additional renewals for operation beyond July 1, 2020 may
be granted only by the City Manager based on the criteria outlined
in Section 25.34.140 "Exceptions Based on Unconstitutional
Takings."
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Councilmember Kelly went on to say that Mayor Pro Tem Jonathan's sunset
differs, which is something that can be discussed. Responding to question,
she said she would like to discuss the elimination of short-term rentals in the
R-1 and R-2 Zones, because she would like to offer some of the history.
She said Ms. Athena Martinez participated quite actively in the task force
work, and she was unable to attend this evening, but she did submit a written
statement. Ms. Martinez is representative of one category of full-time
residents who would like to make very sparing use of their house, especially
at prime demand times to help with the family budget. Therefore, short-term
rentals was inserted in the spirit of compromise to be accommodating toward
that interest. The thought process at this point would be that if STRs are
phased out in R-1 and R-2 Zones, and if notices have to be sent out as the
proposed Ordinances requires for these occasional temporary uses, it would
be easy for neighbors to monitor whether a rental was permitted or not. She
would like to have further discussion on this matter, but that's the history
behind allowing occasional short-term rentals.
Councilmember Weber asked for further clarification.
Councilmember Kelly explained that if it's the Council's collective judgment
to no longer issue short-term rentals permits in R-1 and R-2 neighborhoods,
it then has the question of how to handle those that exist. So, staff's
recommendation was to count on attrition as folks decide they no longer
want to use those permits. What she and Mayor Pro Tem are suggesting is
a sunset clause, because it specifies a date certain by which existing
operators need to wind up that business and put the property to a different
use.
Responding to question about the second sentence to the sunset clause
provided, Mr. Hargreaves stated the issue of how much time the City needs
to provide to give people to phase out, which is basically an amortization
period. The law on that is not clear, stating that generally under takings in
the Federal Constitution, you have to respect investment and expectations,
to the extent you have investment expectation on a permit you have to
renew annually is in question. You can arguably phase permits out as soon
as they expire, or you can provide longer time. In that the longer period you
provide, the less push back and the more defensible it is. He added that 11/2
years would be defensible, but the 21/2 he suggested would be more
defensible. The second sentence creates an escape clause in case
someone makes a compelling case under the fifth amendment that they are
required to have more time, and where the City can look at it on an individual
basis and make a determination. The language comes out of the Zoning
Ordinance, which creates that same exception. It basically states that if
there is some aspect to the Zoning Ordinance, because of its application to
a particular piece of property creates an unreasonable burden on that
property, then the property owner can make a showing under that section
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and be relieved of that particular burden. Further responding, he said the
City would run a greater risk that one can challenge if it removes the second
sentence.
Councilmember Weber said she understood the Ordinance would still allow
18 day rentals for people that want to rent out a short term for festivals held
in Indio. It will also allow for the on -site rental such as renting out a bedroom
or casita.
Mr. Swartz agreed, stating it was a compromise to banning them in R-1 and
R-2, but if Council wants to remove it, it can be recommended as part of the
motion.
Councilmember Weber said she didn't want to remove them, she just wanted
everyone to know those two options could remain whether Council decided
on versions one or two. Additionally, does the City require a business
license for people that have a short-term rental, because many of the STRs
speakers referred to them as their business.
Mr. Stendell confirmed they have a business license as well.
Councilmember Weber stated that a homeowner that says they purchased
a home and they are going to rent it out, they don't know they need a
business license. Also one of the speakers talked about requiring a private
security company for their rentals making the homeowner responsible for it,
which was not mentioned in the Ordinance, but thought Council should
consider requiring it. Additionally, there was mention about having a seven-
day minimum for a short-term rental, but still renting it for three or seven days
for 52 weeks during the year, which she didn't think was a solution.
Mayor Harnik commented that people can say they are renting it out for six
months, but they actually rent it for three days, stating there will be those
who try to go around the system no matter what is decided. She read the
comments from the Planning Commissioners and thought they were very
insightful, including all those involved who are concerned for Palm Desert
and its future. She said staff made the comment that STRs are doing a lot
better in the Planned Residential, questioning why that was the case,
because what's troubling, in talking to Code Compliance, is that they didn't
feel the City had a good set of facts on the number of citations and
complaints.
Mr. Swartz agreed, adding that a lot of the homes in the Planned Residential
are in gated communities and the financially stabled ones do a good job of
enforcing.
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Mayor Harnik shared that in the Marketing Committee, the General Manager
at the JW Marriott said a seven-day stay should be the minimum, because
it would kind of level the playing field, being well aware that the shared
economy with Airbnd and VRBO is out of the bottle, and he provided very
good reasoning. She said the three-day stays were the party houses,
questioning who got fined when there was a violation, was it the renter, the
owner, or both.
Mr. Swartz responded that it's mainly the operator, but it could be the renter
or both, because with the proposed modifications the City would be able to
fine both.
Councilmember Kelly added that the issue was collection.
Mayor Harnik asked what happens after an unpermitted STR is discovered.
Mr. Stendell pointed out that the proposed ordinance includes stiff penalties,
in that operating without a permit, the fine starts at $1,000 and the second
violation goes up to $5,000.
Mayor Harnik agreed that after hearing from speakers and Councilmember
Weber's comments, some didn't know they are required to have a permit,
therefore, the City has to communicate that it's unacceptable to operate a
STR without a permit, and those that do deserve a higher fine than $1,000.
Councilmember Weber added it shouldn't deter an owner from apologizing
and making it right.
Mayor Harnik went on to say she has spent a lot of time talking to people in
Palm Springs about their experience, one of them being that they prohibit
any amplified music on short-term rentals. She's not sure about going to that
extent, but many residents are earlier risers and/or they are trying to put their
children to bed because it's a school night, so she felt 10:00 p.m. was too
late. Another issue that has come up is the noise decibel that perhaps this
device that has been talked about could be part of the solution. She also
agreed with the comment made by Ms. Goff that STRs are being painted
with a broad brush, adding she listened to a voice mail left on Ms. Rebecca
Lucas telephone that was so inflammatory and it was loaded with threats and
profanity, simply because she objected to the noise and imposition.
However, not all STR owners are that way. She heard a number of people
today whom she knows personally, talking about how STRs are bad, yet
these people go to other communities and use Airbnd and VRBO, and some
have a short-term rental. She believed many were over generalizing, but the
City hasn't done a great job of enforcing, but it was due to many reasons.
Many have said they didn't want to bother anybody and they didn't want to
call the City, and that the 24-hour hotline wasn't working well. Therefore, if
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the City is going to respond, it needs to have something better than it had.
She said the City actually thought it was doing a good job, because it didn't
get a lot of complaints, but it has learned that people didn't want to complain,
and the hotline wasn't so hot. She said her neighbor next door has a STR,
and when their guests come for the tennis tournament, they are delightful.
She even had one couple introduce themselves to her, and they are quiet,
good, and fine, but she wouldn't want STRs all around her. On one
occasion, she did call her neighbor to have them quiet down, and they did.
Communication is an issue here as well, because she didn't want to send a
message that this was a business model that an investor can come to Palm
Desert and into neighborhoods to buy a few homes and create a business
where they have a new set of people every three days, because it doesn't
work. She wasn't comfortable just moving forward on this, because there
was so much information to go through and felt more discussion was
needed. In fact, she requested information from a professional property
manager who in their years of operation only had one complaint, but then
this is what they do for a living. She said the City had to maintain its
neighborhoods, however, she's gone places with her husband and five kids,
and no one has ever complained. She said the City had to get the bad
actors out, because it didn't want party houses. For the record, she noted
she sat on the City Council in 2012 when the decision was made to change
the short-term rental ordinance, and it was changed for a good reason.
Many homes were being foreclosed, and at that time, the question was
whether it preferred a closed and blighted house next door or have someone
who was renting for a week, which is how that came about. It was a tough
economic time, people were losing their homes, banks didn't care and they
weren't maintaining the homes. The Council couldn't foresee this new
industry of shared economy coming at us like it did, stating it was one of
those unintended consequences.
Mayor Pro Tem Jonathan said everyone was struggling with the same things
that Mayor Harnik mentioned, but it was the City Council's job this evening
to set policy and it owed it to the people on both sides of the issue to do so.
The reluctance to form a decision this evening comes from the discomfort
that everyone is experiencing in that there is no perfect solution, but he's not
sure that any more time or any more looking at the same set of facts is going
to make anyone more comfortable. There is no perfect solution, but there
is what he believes a reasonable compromise, which is to deal with the
problems it's heard by eliminating STRs in the R-1 and R-2 Zones and
permitting them in the Planned Residential Zones.
Mayor Harnik agrees that no more permits should be issued in the R-1 and
R-2 Zones without a doubt, because the City hasn't found its way here, and
it should be backed up with enforcement. She was in favor of hiring a Code
Enforcement Officer, but not two or three, because the City didn't want to
take on the obligation of the pensions and full-time benefits, but if more is
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needed, it can contract out. She would like for enforcement to take place and
have a central place for people to talk and communicate, so that the City can
gather facts and make the best decision, and return in six months with an
update. She said six months will be after the festival period, so that may be
a reasonable time to come back. Additionally, it's ridiculous to allow
someone rent out seven bedrooms and converting the garage to add more
beds. She doubted a permit was issued for it and it should be shut down
immediately.
Councilmember Nestande stated she was understanding that Council was
fine with allowing a Planned Residential moratorium, and having Multi -family
R-3 to be removed, which would be a first step to making some people
happy. She said the City has been made aware that it has a problem, but it
hasn't given enforcement and penalties a chance to work. She would be
very hesitant to just prohibit short-term rentals in R-1 and R-2 Zones without
giving penalties and fines a chance to work. She believed more time was
needed to discuss it, so a compromise would be to give them a chance. She
agreed the City didn't want to add more employees due to pensions, but it's
been brought up that the City could hire a security guard or contract out for
services for patrolling south Palm Desert, Pinyon Street, Bursera, Haystack,
and Calliandra, which seems to be anecdotally where most of the complaints
are coming from based on speakers and letters received. However, Palm
Desert has a population of 50,000 residents and this Council represents
them all. She's trying to make everyone happy, which is impossible, but she
wants to do what's best for the City, children, family, friends, and businesses.
Councilmember Weber agreed that one of the problems was lack of
enforcement based on the out -of -control situations and trauma caused to
residents, she questioned how the City can stop these homes from
expanding the number of bedrooms in a home and how staff determines the
maximum number of people that can stay in a home.
Mr. Swartz explained that staff asks how many bedrooms are in the house
and based on a formula that's how many guests they can have. He said the
short-term rental is attached to the home not with the guest that rents the
house, and staff doesn't look at the actual contracts. Further responding, he
said a rental that has more guests than is allowed would be a violation, but
what happens after is a good question.
Mayor Harnik offered that when she stayed at a VRBO in Idlewild this
summer, the rules and regulations were posted, and if violated, you may be
asked to leave immediately.
Councilmember Weber stated that if the City was going to do enforcement,
she was in favor of escorting guests off the premises if the situation was so
severe.
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Mr. Stendell added that staff was not equipped to answer the question as to
what will happen next if someone is found in violation. He said staff has not
had that type of situation and it doesn't manage short-term rentals in that
form. When staff is asked those types of questions, such as what type of
resources will it take, and can it crack down on this, it will continue to get
answers from staff that have a question mark at the end of it.
Councilmember Nestande suggested hiring security guards.
Councilmember Kelly interjected, stating the more discussion there is, the
more she is convinced that short-term rentals in residential neighborhoods
are simply not compatible, because Council is talking about creating this
elaborate monitoring system, and if one is needed, it confirms it's not a
compatible use. Whether or not it makes everyone happy, it is the obligation
of the City Council to preserve the zoning to its highest and best use. It was
critical for Council not to fancifully go to this scenario that it can create a
world of perfect enforcement, because there are too many things to address.
The folks have spoken to the City Council compellingly, having picked their
Palm Desert neighborhood to have a sense of community where they know
their neighbors without guessing whose going to be next to them at any given
weekend.
Councilmember Nestande asked about the people that purchased a home
and was told that this moratorium would be lifted and invested $50,000, like
the one on Willow Street. She said she felt for the people on both sides,
which is why she was pushing to give enforcement a chance, adding that
Council couldn't be so rigid, because it would hurt those that will be losing
thousands of dollars.
Mayor Pro Tem Jonathan commented that perfect enforcement assumes
there are violations, and it assumes that enforcement will deal with those
violations. Based on that assumption, it meant residents are dealing with
violations and experiencing them. Enforcement didn't mean that violations
don't occur, it means they occur, but they will be dealt with in some form.
Therefore, residents are still experiencing the fallout of violations. Or, lets
just say there are no violation and it's an absolute perfect universe, the City
will still have cul-de-sac neighborhoods that have numerous STRs rather
than homeowners, in that they are still renters, it's a revolving door, it's still
compromising the residential nature of the neighborhoods. He agreed that
Palm Desert is very special and by modifying the nature of the R-1 and R-2
Zones to where there is a business being transacted and is equivalent to a
Airbnd or VRBO, it erodes the residential nature. So even with perfect
enforcement, residents will still have STRs and still experience parties every
weekend, which typically when you have neighbors that own their home,
there is an occasional party or something that goes on, but it's not every
weekend and it doesn't start in the morning or include afternoon barbequing
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and drinking, which is still in compliance. By allowing STRs in the R-1 and
R-2 Zones, what is likely to happen is that there will be violations, and even
if there are no violations, the quality of life would still be adversely impacted.
However, Council had to be mindful of those who have an expectation of
earning a profit, which is why he is suggesting a 1'/2 years phase out. Like
many investments, not all of them work out. Responding to question, he said
the Ordinance will not change things for the PR and R-3 Zones. He also
wants to eliminate the temporary permits for 18 days that can be used in four
incidents. The season for most people is five months and four of those
weekends, at a minium, will have parties going on. Therefore, the Council
might as well eliminate the STR business in the R-1 and R-2 Zones.
Councilmember Weber believed that STRs get out of hand because the City
had no teeth in its ordinance and it was not following through with
enforcement, so she was okay with the 18 days for those that want to rent
out their casita. She thought the purpose of the ordinance was to make it an
easy transition for the neighbors that it now has an ordinance with teeth in
it.
Councilmember Kelly offered that the City has an obligation to enforce its
rules in planned residential as well, because not all those in the PR are
equally able to self -enforce. Therefore, whatever the City does with R-1 and
R-2 Zones, it will need the enforcement mechanisms.
Mayor Harnik stated there will always be a need for Code Enforcement. With
respect to outside music, allowing it to go on until 10:00 p.m. was a mistake.
Ms. Peat spoke about the Agusta situation, so an easy remedy is to change
it to a reasonable time of 9:00 p.m. for families and early risers.
Mr. Stendell explained that 10:00 p.m. was consistent with neighborhood
standards listed in Chapter 9.24, which is Noise Control. In other words,
there is not a different standard for STRs, it's the same for every parcel or
house in the City, which is 10:00 p.m. and it goes down from 55 decibels to
45 decibels and that was across the board, which is reference in Chapter
9.24. If the City needs to change the ordinance standard, it doesn't have to
change it at multiple places in the Code.
Councilmember Kelly stated that on the topic of noise and time, Council's
expectations here should be the same as generally applied, and it may be
a topic it may want to invite staff to look at and bring back, but it wasn't right
for Council to tinker with at this time. She went on to say STRs was not just
a south Palm Desert problem, based on testimony heard this evening voicing
dire concern from north of Frank Sinatra, the vicinity of Rutledge Way by the
schools, and a variety of other neighborhoods. She asked if it was possible
to approve people like Ms. Goff who seems to be terrific people, but at the
same time send a message that it's not an appropriate business model to
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purchase two, three, or four houses in Pam Desert for short-term use. Sadly,
she didn't think it was possible to achieve those two goals, but the City that
tries to limit the number of rentals one person can own is fooling themselves,
because partnership agreements can be used to evade those limits.
Therefore, Council has to decide what are the best policies for the City
Tong -term.
Mayor Harnik agreed, but the City never had enforcement in place, which is
what is bothering her. She went on to say that she understood residents'
pain and she too, saw the coming and goings, but enforcement was not in
place and the City had no teeth to back it up. Part of the confusion is that on
one hand Council was saying there shouldn't be any STRs, but they can
have an 18-day stay, which are conflicting statements to her, adding she
didn't like that provision.
Councilmember Kelly responded that 18 days out of 165 is a small
concession, and it seems to be hopeful to some members to feel good about
staffs recommendation.
Mayor Pro Tem Jonathan reminded the Council that it wasn't talking about
eliminating STRs, it eliminating 20% of the them, because 80% will remain.
Secondly, he didn't like the 18-day stay, but if in order to move forward, the
City may need to try it out with enforcement to see if people can live with it.
He was willing to try it through June 30 and re-evaluate the temporary
aspect, but he would rather not do it. In order to move forward, he
suggested staffs recommendation with version two, including the phase out
of permits in the R-1 and R-2, and if necessary, allow the 18-day temporary
maximum for rental incidents, with the agreement that it expires June 30,
2019, and then listen to the folks again and re-evaluate.
Councilmember Weber was not in agreement, because what would happen
to those that have been waiting on a decision to be able to obtain a permit.
Secondly, the City has not had enforcement or rules in place so that all of
these horror stories would have been prevented, and it hasn't been given a
chance. Along that line, she also shared the concern about the number of
people that can in a home and turning it into a hotel. She said she could be
tolerant of one or two guests changing every now and then, because there
are respectful guests. Unfortunately, Council is hearing about the guests
that are not treating their rental like a neighborhood, but she felt
uncomfortable saying to a homeowner it was stopping STRs, because it's
their private property. She questioned how both can be accomplished with
an ordinance.
Councilmember Kelly said it can be done by limiting residential zones to
residential purposes. She asked Mayor Harnik if she too was opposed to the
18-day clause, because she was trying to see where there was a consensus.
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Mayor Harnik replied the conflict with the 18-day clause is that you can rent
four times for a total of 18 days, which can supplement someone's income,
but it will encourage the party house, which becomes, Coachella, Coachella,
and Stage Coach, etc. She believed the main problems are the party houses
and the 18-day clause lends itself to that type of rental.
Councilmember Kelly believed there was consensus for staff's
recommendation, a sunset clause with a date to be determined, and
amending the penalty for unpermitted STRs, so that the fine is up to $5,000
instead of up to $1,000, adding that staff would not be required to use the
$5,000 penalty unless they deemed it a case of blatant abuse.
Mayor Harnik added that in Palm Springs they have an appeal's court type
of process having to do with these kinds of issues, which can be helpful in
these types of circumstances.
Mayor Pro Tem Jonathan suggested staff's recommendation, with the
following modifications: 1) a phase out with the proposed language, but he
would propose to July 1, 2019, which is 11/2 versus 21/2, and he would also
omit the second sentence, because it would be inviting an open door. He
believed that if people will challenge they will do it any way; 2) no temporary
permits in the R-1 and R-2 Zones, 3) elevate the penalties for unpermitted
permits as discussed.
Councilmember Kelly said she would second the motion if the second
sentence can be inserted back in order to defer to the advice of the City
Attorney. Mayor Pro Tem Jonathan agreed.
Mayor Harnik pointed out that STR permits will still be issued in the PR and
R-3 Zones.
Councilmember Kelly believed these new measures will be tested during the
sunset period, including the PR Zone where residents are expressing
concerns. Therefore, this will not be the last time that Council will be
deliberating on this topic. She went on to say that the Ordinance is also
requesting support for enforcement and have staff come back in six months
with an update on how everything is working.
Mr. Stendell agreed, stating the recommendation is authorizing staff to create
one position and also research request for proposals or other options.
Councilmember Kelly offered that the greatest gift Council can provide is a
greater level of certainty, so that people can make decisions on their
investment. Putting off the date of sunset or even if there will be one,
preserves uncertainty that is unhealthy. Further, everyone has options using
their property for a 90-day rental, which for years and years generated
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appropriate levels of income, stating people can make intelligent choices if
the Council provides the guidance that's necessary to remove the
uncertainty.
Mayor Pro Tem Jonathan concurred, stating it provides time for those
homeowners to create their own business strategy.
Councilmember Weber asked for further clarification, because she's hearing
that no permits would be issued for the R-1 and R-2 Zones, precluding
people from using their house.
Councilmember Kelly said there are a lot of things you can't use your house
for, but she won't list them.
Mayor Pro Tem Jonathan explained that homeowners have a variety of other
options, such as continue to live in the home, rent it out for 30 days or more,
sell the home, etc. He added that the only thing being proposed is that STRs
are not compatible with residential zoning.
Councilmember Weber stated people can claim a 30-day rental, but actually
conduct a three-day stay. Mayor Harnik asserted there will always be people
who try to get away with it.
Mayor Pro Tem Jonathan commented that the beauty of it is that Council,
staff, residents, and industry representatives are present, so in moving
forward, if there are tweaks and refinements that need to be made, because
there are problems not anticipated, they will be addressed.
Mayor Harnik suggested that the motion should include that staff return in six
months to review, because it was not easy to get to this point. Responding
to question, she said she wants more information and data about how things
are working.
Mr. Stendell stated that instead of leaving any action open, he offered to
provide monthly reports if necessary. He said there is a central place to
communicate now, but the problem is that residents don't get the correct
information as to what number to call. The owner of a STR, under the new
guidelines, would have to submit mailing labels with those within 200-feet.
He said maybe staff will come up with a refrigerator magnet, because right
now residents don't know where to call and the City needs to do a better job.
Mayor Pro Tem Jonathan remarked that residents complain to the renter,
which the City never hears about. He was willing to modify the motion
requesting staff return to the City Council with a report.
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Ms. Aylaian said it will take at least 60 to 90 days to set up and be
operational with the hiring of new staff, consultants, and setting up
procedures. Therefore, staff will need a longer period to effectively start
gathering data.
Mr. Hargreaves requested Council be explicit so that it can bring back the
changes in the Ordinance. The City Council, City Attorney, and staff
discussed the motion and language and determined the motion to be as
follows.
Mayor Pro Tem Jonathan moved to: 1) Ordinance No. 1332 passed to second
reading, as amended with the following modifications: a) Phasing out existing Short -Term
Rental Permits in the R-1 and R-2 Zones by July 1, 2019, using the proposed language
provided by the City Attorney; b) elevating the penalties for unpermitted Short -Term
Rentals up to $5,000 per citation and for second and subsequent citations, with the City
having the right to refuse issuance of any Short -Term Rental Permit within the City;
c) eliminating all language referencing Temporary Short -Term Rental Permits; d) directing
staff to report back to the City Council in nine (9) months; 2) By Minute Motion,
authorize/direct: a) City Manager to develop an appropriate position and add one full-time
employee to the Code Compliance Division for the purpose of enhanced monitoring and
enforcement of Short -Term Rental Permits, with an estimated cost of up to $100,000
annually; b) staff to release a Request for Proposals (RFP) for operating a Short -Term
Rental Hotline and performing other compliance activities; c) staff to calculate a permit fee
based upon the all-inclusive cost of administering a Short -Term Rental Compliance
Program and return to City Council at a later date with enabling resolution for fee adoption.
Motion was seconded by Kelly.
Mayor Pro Tem Jonathan thanked Mr. Stendell, specifically Mr. Swartz for doing a
fantastic job and being very attentive and respectful of everyone. Additionally, those
individuals that took the time to write letters, emails, call and meet, and doing it with
dignity, because not all cities are as blessed.
Councilmember Kelly added that Councilmembers may sound like they had their
minds made up, but in actuality, it's taken every bit of input received to help form
their judgements, and Council is appreciative of the people who wrote them a letter
or spoke this evening. Additionally, she thanked Councilmember Nestande with
whom she served on the Task Force Committee, because although you may start
and finish on different places on some of the issues, she learned from all the
questions raised by her and for all she brought to the table.
Councilmember Nestande said thank you for the kind words and the feeling was
mutual.
Mayor Harnik commented she was sure nobody thought she came with her mind
made up, because this has been a bumpy road. She thanked staff for being at all
meetings, stating she didn't know how or when they got all their work done.
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REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 26, 2017
Responding to question, Mayor Pro Tem Jonathan said he would not consider
allowing the 18-day clause, stating he would like to let the motion play out to see
where it stands.
Mayor Harnik called for the vote and the motion carried by a 4-1 vote (AYES:
Jonathan, Kelly, Weber, and Harnik; NOES: Nestande).
XX. ADJOURNMENT
With City Council concurrence, Mayor Harnik adjourned the meeting at 11:09 p.m.
ATTEST:
C—Irdi D. KLASSE TY CLERK
CITY OF PALM DESERT, CALIFORNIA
t� //
)AN C. HARNIK, MAYOR
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