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Home My WebLink AboutORD 1338ORDINANCE NO. 1338 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING AMENDMENTS TO PALM DESERT MUNICIPAL CODE CHAPTER 5.10 SHORT-TERM RENTALS IN REGARDS TO TERMINATION AND AMORTIZATION OF SHORT-TERM RENTALS WITHIN THE CITY IN R-1 AND R-2 ZONES WHEREAS, pursuant to the authority granted to the City of Palm Desert ("City") by Article XI, Section 7 of the California Constitution, the City has the police power to regulate the use of land and property within the City in a manner designed to promote public convenience and general prosperity, as well as public health, welfare, and safety; and WHEREAS, adoption and enforcement of regulations and other land use regulations lies within the City's police powers; and WHEREAS, the City Council reviewed the existing ordinance and made amendments on how the City should regulate short-term rentals in certain zones at the recommendation of the Planning Commission and an Ad Hoc Short -Term Rental Subcommittee, comprised of industry representatives, elected officials, community members, and City staff; and WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 31d day of October, 2017, hold a duly noticed public hearing to consider recommendations from the Ad Hoc Short -Term Rental Committee in regards to enforcement, operational requirements, communication, and density to the City Council; and WHEREAS, the City Council of the City of Palm Desert, California, did on the 14t' day of December, 2017, hold a duly noticed public hearing and approved staffs recommendation with clearly specified modifications, including elimination of certain Short -Term Rentals in R-1 and R- 2 Zones in specified time frames and subject to individual extensions if necessary to avoid unconstitutional takings; and WHEREAS, the City Council of the City of Palm Desert, California has determined that the amendments to Municipal Code Chapters 5.10, are consistent with the General Plan and applicable state law; and WHEREAS, at said meeting, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, said City Council did find the foregoing facts and reasons to exist to approve said ordinance: NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Palm Desert, California as follows: SECTION 1. Adoption of Recitals. The City Council hereby adopts the foregoing recitals as its findings in support of the following regulations to add a hardship extension process and further finds that the following regulations, including the eventual elimination of certain short-term rentals in R-1 and R-2 zones are beneficial and appropriate to protect the health, safety and welfare of the residents and businesses of Palm Desert within the City limits. ORDINANCE NO.1338 SECTION 2. Adoption of amendments to Chapter 5.10 "Short -Term Rentals" am Section 5.10.070 is amended and Section 5.10.075 is added as specified in Exhibit "A". SECTION 3. Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase in this ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof irrespective of the fact that any one (1) or more subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared unconstitutional, or invalid, or ineffective. SECTION 4. California Environmental Quality Act Finding. The City of Palm Desert (City), in its capacity as the Lead Agency under the California Environmental Quality Act (CEQA), has determined that the amendments to Chapter 5.10 is exempt from CEQA review pursuant to Section 15061(b)3 in that the amendments to further regulate the use of short- term rentals will not have a significant negative impact on the environment. SECTION 5. Publication. The City Clerk of the City of Palm Desert, California, is hereby directed to publish this ordinance in The Desert Sun, a newspaper of general circulation, published and circulated in the City of Palm Desert, California, and shall be in full force and effect thirty (30) days after its adoption. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm Desert, California, at its regular meeting held on the 24th day of May. 2018, by the following vote, to wit: AYES: HARNIK, KELLY, NESTANDE, WEBER, and JONATHAN NOES: NONE ABSENT: NONE ABSTAIN: NONE SABBY JO' 4ATHAN, MAYOR C.\UsersVg nchezWppDataLLocalUM c osolt\Wndo \Temporary Internet Files\Content.Oudook\SCOZBF5V%Final STR CC Ord Hardship Extensions.docx ORDINANCE NO.1338 Exhibit "A" Section 5.10.070 shall be amended as follows: "5.10.070 Short -Term Rental Permit — Prohibited in R-1 and R-2 zones. The City shall prohibit the issuance of new Short -Term Rental Permits within the R-1 and R- 2 zones of the City as described below. These requirements do not apply to Temporary Short - Term Rental Permits and On -Site Owner Short -Term Rental Permits. A. A new Short -Term Rental Permit within the R-1 zone will not be issued. B. A new Short -Term Rental Permit within the R-2 zone will not be issued. 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 December 31, 2019. Additional renewals for operation beyond December 31, 2019, may be granted as provided in Section 5.10.075 "Termination and amortization of short-term rentals in R-1 and R-2 zones; Hardship Extensions." D. If an existing permit is revoked pursuant to this chapter, and the Short -Term Rental unit is located in the R-1 or R-2 zones, then a new permit will not be issued." Section 5.10.075 shall be added as follows: "5.10.175 - Termination and amortization of short-term rentals in R-1 and R-2 zones; Hardship Extensions A. This section shall apply to Short -Term Rental Permits in R-1 and R-2 zones that are to be terminated by December 31, 2019 ("Terminating Short -Term Rentals") under section 5.10.170. The purpose of this section is to prevent an unconstitutional taking of private property without compensation under the federal or state constitutions by providing for an extension of the amortization period past the December 31, 2019 as necessary to avoid a taking ("Hardship Extension"). Hardship Extensions are intended to provide Terminating Short - Term Rental owners the additional time necessary within which to recover costs that they reasonably invested primarily for short-term rental use to the extent that such costs could not already have been recovered during the allowed period of short-term rental use of the property and cannot be recovered once the short-term rental use is terminated. The provisions of this section supersede any other provision of this code relating to the continuation or amortization of a non -conforming use and shall at all times be interpreted to prevent an unconstitutional taking of private property under the federal or state constitutions. C.\UsersVsanchezWppData\Loc KMicrosott\Windo \Temporary Intemet Files\Content 0ut1ookZC0ZBF5V1Fina1 STR CC Ora Hardship Extenwns.aocx ORDINANCE NO.1338 B. The city council shall adopt by resolution a policy detailing the process for applying for and deciding applications for Hardship Extensions. Application for Hardship Extensions shall initially be considered by the Department of -� Community Development. The city manager is authorized to finally decide such applications and there shall be no appeals to the city council. The city council may also establish fees by resolution for the processing and consideration of Hardship Extension applications and appeals. C. Upon the conclusion of the amortization period, including any Hardship Extension, the terminating short-term Rental use shall cease. Thereafter, the owner's property may be used as a long-term residence, a long-term residential rental, or for any other lawfully permitted or conditionally permitted use in the zone." .w 4 C \Users\OsancaezV,ppDataLLL c IMMu ft\Wnao \Temporary IMemet Fites\Content Cutlook%5C0ZBFSV\Fina1 STR CC ON Hardship ExtensionsGocx