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HomeMy WebLinkAboutOrdinance 1236 - Resolution 2012-15 - Transient Occupancy Tax Short Term Rentals Applications* Approved the recommendation, with Ord. No. 1236 passed to second reading with minor modifications as proposed at this meeting (i.e., duration, maximum number of occupants, and signage) , and the new regulations for any ` "� E RT. ✓ �/` potential modification. 5-0 DEPARTMENT OF COMMUNITY DEVEt-OPMENT �'` ., ..... •.. ._.. STAFF REPORT REQUEST: AMENDMENT OF THE PALM DESERT MUNICIPAL CODE CHAPTER 3.28.020 - TRANSIENT OCCUPANCY TAX; ADDING CHAPTER 5.10 - SHORT-TERM RENTALS; AND REPEALING SECTIONS OF CHAPTER 25 - ZONING, THAT REQUIRE A CONDITIONAL USE PERMIT FOR SHORT-TERM RENTALS. SUBMITTED BY: Tony Bagato Principal Planner DATE: March 8, 2012 CONTENTS: Ordinance No. 1236 , Modifications to the Municipal Code Resolution No2012-1establishing a $25 Permit Application Fee RECOMMENDATION 1. Pass Ordinance No. 1236 to second reading approving an amendment to the Palm Desert Municipal Code Chapter 3.28.020 Transient Occupancy Tax; Adding Chapter 5.10 - Short -Term Rentals; and Repealing Sections Of Chapter 25 - Zoning, that require a Conditional Use Permit for Short -Term Rentals. 2. Adopt Resolution No.2012-15 establishing a new $25 fee for Short - Term Rental Permit applications that will be processed as required by the new ordinance. BACKGROUND On December 8, 2011, staff was directed to prepare a short-term rental ordinance and a professional services contract for an independent contractor to provide the City with services to identify and bring into compliance non -licensed short-term rentals. The contract for professional services has already been approved, and the consultant is currently identifying non -licensed rental properties within the City. Staff Report Short-term Rental Ordinance March 8, 2012 Page 2 of 4 DESCRIPTION The adoption of the new ordinance will amend nine (9) chapters of the Palm Desert Municipal Code; seven (7) of which are being repealed from the Zoning Ordinance. The proposed changes to the Municipal Code are required to provide regulations and permitting of all short-term rental properties, and to eliminate conflict with current provisions. The following chapters will be amended by the proposed ordinance: • Chapter 3.28.020 (A) Transient Occupancy Tax (Amendment) • Chapter 5.10 Short-term Rentals (New Chapter) • Chapter 25.14.030 (K) — Conditional uses (Repealed) • Chapter 25.15.022 — Conditional uses (Repealed) • Chapter 25.16.030 (K) — Conditional uses (Repealed) • Chapter 25.18.030 (M) — Conditional uses (Repealed) • Chapter 25.20.030 (0) — Conditional uses (Repealed) • Chapter 25.22.030 (1) — Conditional uses (Repealed) • Chapter 25.24.025 (1) — Conditional uses (Repealed) The first chapter listed is amended to add short-term rentals in the definition of a "hotel" for the purposes of collecting Transient Occupancy Tax (TOT) from short-term rental properties. The seven (7) chapters listed in the Zoning Ordinance (Title 25) need to be repealed to eliminate the Conditional Use Permit requirement that is no longer needed after adoption of Chapter 5.10. The majority of the proposed ordinance is the new chapter known as Chapter 5.10 Short-term Rentals. In addition to the new ordinance, a new $25.00 fee is being proposed for processing each permit application and renewal on an annual basis. Chapter 5.10 Short-term Rentals Highlights The purpose of the proposed chapter is to establish regulations for the use of privately owned residential dwellings as short-term rentals and to ensure the collection of TOT payment. The chapter includes a new permit process and requirements for each residential dwelling being operated as a short-term rental. The new chapter is similar to Rancho Mirage's current ordinance; however, extra restrictions were added to address concerns expressed by the ad -hoc subcommittee that met in 2010. The additional restrictions are: • Three (3) day minimum stay for short-term rentals • Local contact with 24 hour contact • Two (2) people per bedroom for overnight guests GAPlanning\Tony Bagato\Staff Reports\Short-term Rental Ordinance\Short-term Rental Ord CC SR.doc Staff Report Short-term Rental Ordinance March 8, 2012 Page 3 of 4 • On -site parking required • Renter notification of all the requirements of the ordinance • Noise ordinance, PDMC Chapter 9.24, to be followed, with no outdoor noise equipment (i.e. radio) between 10 p.m. and 10 a.m. These regulations were added to reduce any potential negative impacts from short-term rental properties. In addition to these regulations, the ordinance will require the operator to provide a "good neighbor brochure" to each renter. A "good neighbor brochure" will be prepared by City staff, and will summarize the general rules of conduct, consideration, and respect, including provisions of the Palm Desert Municipal Code. The brochure will also inform each renter that any resident will be able to call a vacation rental hotline to report any disturbances or violations of the regulations. If a violation is reported to the hotline, the short-term rental operator will have 60 minutes to appropriately respond to the complaint or disturbance by an occupant or guest. The short-term operator will contact the third party hotline to verify the disturbance has been resolved. If the short-term rental operator is not responsive to the disturbance, the third party hotline will contact the police and citations can be issued. The regulations listed in the proposed ordinance are: • Additional conditions and restrictions placed on the permit; • Permit modification, suspension or revocation based on a hearing by the City Manager or his/her designee; • Notice of violation of the chapter can be issued to any occupant, owner(s), and/or operator of the short-term rental property; • Administrative citations to the property owner(s) for any violation of the chapter. A property owner will be fined $250 for a first offense and up to $1,000 for a fourth offense of the same violation in a 12-month period. In addition, if a property owner is operating a short-term rental without a valid permit, the fine is $1,000 for the first offense and up to $2,500 for the fourth violation in a 12-month period; • An infraction citation may be issued to any occupant, owner(s) or operator pursuant to the Chapter 1.08 Citations for Code Violations, including, but not limited to, the imposition of any and all criminal penalties for any violation of the chapter. Any person convicted of an infraction shall be fined $500 for the first offense and up to $1,500 for the fourth offense in a 12-month period. In addition, anyone operating a short-term rental unit without a valid permit can be cited for an infraction of $1,000 for the first offense and up to $5,000 for the fourth offense in a 12-month period; • Public nuisance, any person can be considered a public nuisance for any violation of the chapter and will be subject to the provisions of Chapter 9.24 Noise Control and Chapter 9.25 Multiple Response to Loud or Unruly Parties, Gatherings or other similar Events of the Municipal Code. GAPlanning\Tony Bagato\Staff Reports\Short-term Rental Ordinance\Short-term Rental Ord CC SR.doc Staff Report Short-term Rental Ordinance March 8, 2012 Page 4 of 4 The provisions within this chapter will be able to deal with any nuisance from the occupant(s), as well as issue fines to the owner(s) or operator of a short-term rental property, and will provide a fine structure to deal with non -permitted short-term rentals. Fiscal Impact Previously, staff reported that there are hundreds of unregistered short-term rental property owners not paying TOT. The proposed ordinance for short-term rentals will allow staff to regulate all short-term rentals and provide the City with an enforcement method for dealing with unregistered short-term rentals, as well as potential nuisance properties operating as short-term rentals. The City of Rancho Mirage has adopted a very similar ordinance and collected $13,700 in revenue within one month of enforcement. According the consultant working with staff, the City of Palm Desert has more unlicensed rentals than Rancho Mirage, and therefore it is safe to say that bringing in the new TOT and short-term rental licenses will provide a financial benefit to the City. Submitted by: Tony Bagato Principal Planner Approval: Pain Gibson, Director of Finance M. Wohlmuth, City Manager Department Head: Lauri Aylaian Director of Community Development CITY COUNCILv XnON APPROVED DENTED ECEIVED__�,.,.,, OTHER A/o. a, 0/3 -/S-and d /0. /.:R.31p Ivp�di�i� MEETI G DA °- 'O/ AYES: ini �de NOES: ABSENT: AIQM�'- ABSTAIN: VERIFIED BY: C%1 Original on File with City d4rks Otrce * Approved the recommendation, with Ord No. 1236 passed to second reading with minor -modifications as proposed at this meeting (i.e., duration, maximum number of occupants, and signage), and a six-month review of the new regulations for any potential modification. 5-0 GAPlanning\Tony Bagato\Staff Reports\Short-term Rental Ordinance\Short-term Rental Ord CC SR.doc CITY OF PALM DESERT LEGAL NOTICE NOTICE OF INTENT TO AMEND THE PALM DESERT MUNICIPAL CODE CHAPTER 3.28.020 - TRANSIENT OCCUPANCY TAX: ADDING CHAPTER 5.10 - SHORT-TERM RENTALS: AND REPEALING SECTIONS OF CHAPTER 25 — ZONING, REQUIRING A CONDITIONAL USE PERMIT FOR SHORT-TERM RENTALS. PROJECT DESCRIPTION: The City of Palm Desert is approving a new ordinance to regulate and license all short-term rental properties within the City of Palm Desert. PROJECT LOCATION: City of Palm Desert, changing the Palm Desert Municipal Code PUBLIC HEARING: Said public hearing will be held before the City of Palm Desert City Council on Thursday, March 8, 2012 at 4:00 p.m. in the Council Chamber at the Palm Desert Civic Center, 73-510 Fred Waring Drive, Palm Desert, California, at which time and place all interested persons are invited to attend and be heard. Written comments concerning all items covered by this public hearing notice shall be accepted up to the date of the hearing. Information concerning the request is available for review in the Department of Community Development at the above address between the hours of 8:00 a.m. and 5:00 p.m. Monday through Friday. If you challenge the proposed actions in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council at, or prior to, the public hearing. PUBLISH: Desert Sun Rachelle Klassen, City Clerk February 26, 2012 Palm Desert, California ORDINANCE NO. 1236 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING PALM DESERT MUNICIPAL CODE CHAPTER 3.28.020 - TRANSIENT OCCUPANCY TAX; ADDING CHAPTER 5.10 - SHORT-TERM RENTALS; AND REPEALING SECTIONS OF CHAPTER 25 —ZONING, REQUIRING A CONDITIONAL USE PERMIT FOR SHORT- TERM RENTALS. WHEREAS, the City Council adopted Ordinance No. on March 8, 2012 revising sections of the Palm Desert Municipal Code; and WHEREAS, said application has complied with the requirements of the "City of Palm Desert Procedure for Implementation of the California Environmental Quality Act", Resolution No. 10-26, the Director of Community Development has determined that the project will not have a negative impact on the environment and is exempt from CEQA, and WHEREAS, at said public hearings, said City Council heard and considered all testimony and arguments of all interested persons; and NOW, THEREFORE, BE IT ORDINANDED by the City Council of the City of Palm Desert, California, that the following section of the Palm Desert Municipal Code is hereby amended, as follows: Section 1: That Chapter 3.28.020 (A) Definitions is hereby amended to read as below: "Hotel" means any structure, or any portion of any structure, which is occupied or intended or designed for use or occupancy by transients, including, but not limited to dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodginghouse, roominghouse, apartment house, time- share project or facility, dormitory, public or private club, mobile home or house trailer at a fixed location, recreational vehicle or other similar structure or portion thereof, including a "short term rental unit" as defined in Section 5.10. Section 2: That Chapter 5.10 Short-term Rentals is hereby added to the Palm Desert Municipal Code as follows: ORDINANCE NO. 1236 Chapter 5.10 SHORT-TERM RENTALS 5.10.010 Title 5.10.020 Purpose 5.10.030 Definitions 5.10.040 Authorized agent or representative 5.10.050 Short-term Rental Permit —Required 5.10.060 Short-term Rental Permit —Application 5.10.070 Operational requirements and standard conditions 5.10.080 Recordkeeping duties 5.10.090 Violations 5.10.100 Requirements not exclusive Chapter 5.10 SHORT-TERM RENTALS 5.10.010 Title This chapter shall be referred to as the "Short-term Rental Ordinance." 5.10.020 Purpose A. The purpose of this chapter is to establish regulations for the use of privately owned residential dwellings as short-term rentals that ensure the collection and payment of Transient Occupancy Taxes (TOT) and minimize the negative secondary effects of such use on surrounding residential neighborhoods. B. This chapter is not intended to provide any owner of residential property with the right or privilege to violate any private conditions, covenants and restrictions applicable to the owner's property that may prohibit the use of such owner's residential property for short term rental purposes as defined in this chapter. 5.10.030 Definitions For purposes of this chapter, the following words and phrases shall have the meaning respectively ascribed to them by this section: 2 ORDINANCE NO. 1236 "Applicable laws, rules and regulations" means any laws, rules, regulations and codes (whether local, state or federal) pertaining to the use and occupancy of a privately owned dwelling unit as a short-term rental. "Applicant" means the owner of the short-term rental unit or the owner's authorized agent or representative. "City Manager' means that person acting in the capacity of the City Manager of the City of Palm Desert or designee. "Good neighbor brochure" means a document prepared by the City that summarizes the general rules of conduct, consideration, and respect, including without limitation provisions of the Palm Desert Municipal Code and other applicable laws, rules or regulations pertaining to the use and occupancy of short-term rental units. "Local contact person" means the person designated by the owner or the owner's authorized agent or representative who shall be available twenty-four (24) hours per day, seven (7) days per week for the purpose of: (1) responding within sixty (60) minutes to complaints regarding the condition, operation, or conduct of occupants of the short-term rental unit; and (2) taking remedial action to resolve any such complaints. "Owner" means the person(s) or entity(ies) that hold(s) legal and/or equitable title to the subject short-term rental. "Operator" means the Owner or the designated agent or representative of the Owner who is responsible for compliance with this chapter with respect to the short term rental unit. "Property" means a residential legal lot of record on which a short- term rental unit is located. "Responsible person" means an occupant of a short-term rental unit who is at least twenty-one (21) years of age and who is legally responsible for ensuring that all occupants of the short-term rental unit and/or their guests comply with all applicable laws, rules and regulations pertaining to the use and occupancy of the subject short-term rental unit. 3 ORDINANCE NO. 1236 "Short-term rental unit" means a privately owned residential dwelling, such as, but not limited to, a single-family detached or multiple - family attached unit, apartment house, condominium, cooperative apartment, duplex, or any portion of such dwellings, rented for occupancy for dwelling, lodging, or sleeping purposes for any period less than a monthly basis. "Short-term rental permit" means a permit that allows the use of a privately owned residential dwelling as a short-term rental unit pursuant to the provisions of this chapter, and that incorporates by consolidation a Transient Occupancy Registration Permit and any other potential licensing required in Chapter 5 of the Palm Desert Municipal Code. "Transient" for purposes of this chapter means any person who seeks to rent or who does rent a privately owned residential unit for a period less than a monthly basis. "Transient Occupancy Registration Permit" means a permit that allows the use of a privately owned residential dwelling as a short-term rental unit pursuant to the provisions of Chapter 3.28 Transient Occupancy Tax respectively. 5.10.040 Authorized agent or representative A. An owner shall designate the owner or an agent or a representative to comply with the requirements of this chapter on behalf of the owner. The owner or designated agent of representative is referred to as "Operator' in this chapter. B. Notwithstanding subsection A, the owner shall not be relieved from any personal responsibility or personal liability for noncompliance with any applicable law, rule or regulation pertaining to the use and occupancy of the subject short-term rental unit, regardless of whether such noncompliance was committed by the owner's authorized agent or representative or the occupants of the owner's short-term rental unit or their guests. 0 ORDINANCE NO. 1236 5.10.050 Short-term Rental Permit —Required A. The Operator is required to obtain a short-term rental permit from the City, pursuant to the provisions of this chapter and Chapter 3.28 respectively, before renting any privately owned residential dwelling to any transient for a period less than a monthly basis. B. A short-term rental permit shall be required to be renewed on an annual basis based on the anniversary of the original permit issuance in order to remain valid. 5.10.060 Short-term Rental Permit —Application A. The operator must submit the following information on a short-term rental permit application form provided by the City: 1. The name, address, and telephone number of the owner of the subject short-term rental unit; 2. The name, address, and telephone number of the operator; 3. The name, address, and twenty-four hour telephone number of the local contact person; 4. The address of the proposed short-term rental unit; 5. The number of bedrooms and the applicable overnight and daytime occupancy limit of the proposed short-term rental unit; 6. Acknowledgement of receipt and inspection of a copy of the good neighbor brochure; 7. Such other information as the City Manager or designee deems reasonably necessary to administer this chapter. B. The short-term rental permit application shall be accompanied by an application fee established by resolution of the City Council. 5 ORDINANCE NO. 1236 C. The Tax Administrator, as defined in Section 3.28.020(E) shall issue the Short -Term Rental Permit, which will incorporate a Transient Occupancy Registration Permit, as provided in Section 3.28.060 if the applicant satisfies the requirements of this Chapter 5.10 and Chapter 3.28. D. A short-term rental permit application may be denied if the applicant has had a prior short-term rental permit for the same unit revoked within the past twelve (12) calendar months. E. Within fourteen (14) days of a change of property ownership, change of operator, or any other change in material facts pertaining to the information contained in the short term rental permit, the operator shall submit an application and requisite application fee for a new short-term rental permit, which must be obtained prior to continuing to rent the subject unit as a short-term rental. 5.10.070 Operational requirements and standard conditions A. The operator shall use reasonably prudent business practices to ensure that the short-term rental unit is used in a manner that complies with all applicable laws, rules and regulations pertaining to the use and occupancy of the subject short-term rental unit, including Chapter 3.28 (Transient Occupancy Tax). B. Minimum Number for Rent or Lease: The minimum number of days that a short-term rental can be occupied for is three (3) days. Less than three (3) day rentals or leases shall be prohibited. C. Maximum Number of Occupants: The maximum number of overnight guests for a short-term vacation rental shall not exceed two (2) persons per bedroom. Additional daytime guests are allowed between the hours of 7:00 am and 10 pm, with the maximum daytime guests not to exceed one (1) person per bedroom. The following table illustrates the maximum number of occupants: Number of Bedrooms Total of Overnight Occupants Total Daytime Occupants (Including Number of Overnight Occupants) 0 — Studio 2 3 1 2 3 N ORDINANCE NO. 1236 2 4 6 3 6 9 4 8 12 5 10 15 6 12 18 7 14 21 D. Appearance, Visibility or Location: A short-term vacation rental shall not change the residential character of the outside appearance of the residence, either by the use of colors, materials, lighting, or any advertising mechanism. E. Signs: No signs, either on site or off site, shall be used to advertise the availability of the rental unit to the public. F. On -site Parking Required: All parking associated with a short-term vacation rental shall be entirely on -site, in the garage, carport, and driveway or otherwise off of the public street. G. Noise: Occupants of the short-term vacation rental shall comply with the standards and regulations of the Palm Desert Municipal Code Chapter 9.24 Noise Control and Chapter 9.25 Multiple Responses to Loud or Unruly Parties, Gatherings or Other Similar Events. No radio receiver, musical instrument, phonograph, compact disk player, loudspeaker, karaoke machine, sound amplifier, or any machine, device or equipment that produces or reproduces any sound shall be used outside or be audible from the outside of any short-term rental unit between the hours of 10 p.m. and 10 a.m. H. Renter Notification: The operator shall provide each occupant of the short-term vacation rental with the following information prior to occupancy of the unit and/or shall post such information in a prominent location within the unit: 1. Operator with 24 hour availability. 2. The maximum number of overnight occupants and the maximum number of daytime occupants as permitted pursuant to the chapter. 7 ORDINANCE NO. 1236 3. Trash pick-up day and applicable rules and regulations pertaining to leaving or storing trash on the exterior of the property. 4. A copy of the Palm Desert Municipal Code Chapter 9.24 Noise Control and Chapter 9.25 Multiple Responses to Loud or Unruly Parties, Gatherings or Other Similar Events 5. Notification that the occupant or owner may be citied or fined by the City in accordance with this chapter and/or Chapter 9.24 Noise Control and Chapter 9.25 Multiple Responses to Loud or Unruly Parties, Gatherings or Other Similar Events. I. While a short-term rental unit is rented, the operator shall be available twenty-four (24) hours per day, seven (7) days per week for the purpose of responding within sixty (60) minutes to complaints regarding the condition, operation, or conduct of occupants of the short-term rental unit or their guests. J. The operator and the designated local contact person shall use reasonably prudent business practices to ensure that the occupants and/or guests of the short-term rental unit do not create unreasonable noise or disturbances, engage in disorderly conduct, or violate any applicable law, rule or regulation pertaining to the use and occupancy of the subject short-term rental unit. K. Prior to occupancy of a short-term rental unit, the operator shall: (1) obtain the name, address, and a copy of a valid government identification of the responsible person; (2) provide a copy of the good neighbor brochure to the responsible person; and (3) require such responsible person to execute a formal acknowledgement that he or she is legally responsible for compliance by all occupants of the short-term rental unit and their guests with all applicable laws, rules and regulations pertaining to the use and occupancy of the short-term rental unit. This information shall be maintained by the operator for a period of three (3) years and be made readily available upon request of any officer of the City responsible for the enforcement of any provision of the Municipal Code or any other applicable law, rule or regulation pertaining to the use and occupancy of the short-term rental unit. 93 ORDINANCE NO. 1236 L. The operator and/or the designated local contact person shall upon notification that the responsible person and/or any occupant and/or guest of the short-term rental unit has created unreasonable noise or disturbances, engaged in disorderly conduct, or committed violations of any applicable law, rule or regulation pertaining to the use and occupancy of the subject short-term unit, promptly respond within sixty (60) minutes and appropriate manner to immediately halt or prevent a recurrence of such conduct by the responsible person and/or any occupants and/or guests. Failure of the owner, and/or operator to respond to calls or complaints regarding the condition, operation, or conduct of occupants and/or guests of the short-term rental within sixty (60) minutes and appropriate manner shall be subject to all administrative, legal and equitable remedies available to the City. M. The operator and/or the designated local contact person shall report to the City Manager, or designee, the name, violation, date, and time of disturbance of each person involved in three or more disorderly conduct activities, disturbances or other violations of any applicable law, rule or regulation pertaining to the use and occupancy of the subject short-term unit. N. Trash and refuse shall not be left stored within public view, except in proper containers for the purpose of collection by the City's authorized waste hauler on scheduled trash collection days. The operator shall use reasonably prudent business practices to ensure compliance with all the provisions of Chapter 8.16 (Solid Waste) of the Municipal Code. O. The operator and/or the designated local contact person shall post a copy of the short-term rental permit and a copy of the good neighbor brochure in a conspicuous place within the short-term rental unit, and a copy of the good neighbor brochure shall be provided to each occupant of the subject short-term rental unit. P. The operator shall post the current short-term rental permit number on or in any advertisement appearing in any newspaper, magazine, brochure, television trade paper, Internet website, etc., that promotes the availability or existence of a short-term rental unit in a place or location deemed acceptable by the City Manager or designee. In the X ORDINANCE NO. 1236 instance of audio -only advertising of the same, the short-term rental permit number shall be read as part of the advertising. Q. Unless otherwise provided in this chapter, the operator shall comply with all provisions of Chapter 3.28 of the Municipal Code concerning transient occupancy taxes, including, but not limited to, submission of a monthly TOT return in accordance with Section 3.-28.070 of Chapter 3.28 of the Municipal Code, which shall be filed monthly even if the short-term rental unit was not rented during each such month. R. The City Manager, or designee, shall have the authority to impose additional conditions on the use of any given short-term rental unit to ensure that any potential secondary effects unique to the subject short- term rental unit are avoided or adequately mitigated. S. The standard conditions set forth herein may be modified by the City Manager, or designee, upon request of the operator based on site -specific circumstances for the purpose of allowing reasonable accommodation of a short-term rental. All requests must be in writing and shall identify how the strict application of the standard conditions creates an unreasonable hardship to a property such that, if the requirement is not modified, reasonable use of the property for a short-term rental would not be allowed. Any hardships identified must relate to physical constraints to the subject site and shall not be self-induced or economic. Any modifications of the standard conditions shall not further exacerbate an already existing problem. 5.10.080 Recordkeeping duties The operator shall maintain for a period of three (3) years, records in such form as the tax administrator (as defined in, and required by, Chapter 3.28) may require to determine the amount of transient occupancy tax owed to the City. The tax administrator shall have the right to inspect such records at all reasonable times. Such records shall be maintained at the owner or operator's premises or shall be available for delivery to the tax administrator within one (1) week after request, which may be subject to the subpoena pursuant to Section 3.28.110 10 ORDINANCE NO. 1236 5.10.090 Violations A. Additional Conditions. A violation of any provision of this chapter by any of the occupants, owner(s) or the operator shall authorize the City Manager or designee to impose additional conditions on the use of any given short-term rental unit to ensure that any potential additional violations are avoided. B. Permit Modification, Suspension and Revocation. A violation of any provision of this chapter by any of the occupants, owner(s) or the operator shall constitute grounds for modification, suspension and/or revocation of the short-term rental permit and/or any affiliated licenses or permits pursuant to the provisions set forth in Chapter 5.10 of the Municipal Code. 1. Whenever any operator fails to comply with any provision of this chapter, the City Manager or designee upon hearing, after giving the operator and/or owner ten (10) days notice in writing specifying the time and place of hearing and requiring him to show cause why the short term rental permit should not be revoked, may modify, suspend or revoke the permit held by the operator. 2. The City Manager, or designee, shall give to the operator and/or owner written notice of the modification, suspension or revocation of the permit. The notices required in this section may be served personally or by mail. 3. The tax administrator shall not issue a new short term rental permit after the revocation of a permit unless he or she is satisfied that the former holder of the permit will comply with the provisions of this chapter. During the period of time while such a permit is suspended, revoked or otherwise not validly in effect, the use of the dwelling as a short term rental unit is prohibited. C. Notice of Violation. The City may issue a notice of violation to any occupant, owner(s) or operator, pursuant to Chapter 5.10 of the Municipal Code, if there is any violation of this chapter committed, caused or maintained by the any of the above parties. 11 ORDINANCE NO. 1236 D. Administrative Citation. The City may issue an administrative citation to the property owner(s) pursuant to Chapter 8.81 (Administrative Citation) of the Municipal Code if there is any violation of this chapter committed, caused or maintained. Nothing in this section shall preclude the City from also issuing an infraction citation upon the occurrence of the same offense on the same day to any occupant, owner(s) or the operator. Unless otherwise provided herein, any person issued an administrative citation pursuant to this chapter shall for each separate violation be subject to: (1) an administrative fine in an amount not to exceed two hundred fifty dollars ($250) for the first citation; (2) an administrative fine in an amount not to exceed five hundred dollars ($500) for a second citation issued for the same offense within a twelve (12) month period of the date of the first offense; and (3) a fine in an amount not to exceed one thousand dollars ($1,000) for a third (3) and any subsequent citation issued for the same offense within a twelve (12) month period of the date of the first offense. Notwithstanding the above, operating a short-term rental unit without a validly issued short-term rental permit shall be subject to: (1) a fine in an amount not to exceed one thousand dollars ($1,000) for the first citation; (2) a fine in an amount not to exceed one thousand five hundred dollars ($1,500) for a second citation issued for the same offense within a twelve (12) month period of the date of the first offense; and (3) a fine in an amount not to exceed two thousand five hundred dollars ($2,500) for the third citation issued for the same offense within a twelve (12) month period of the date of the first offense. E. Infraction. The City may issue an infraction citation to any occupant, owner(s) or operator, pursuant to the provisions set forth in Chapter 1.08 Citations for Code Violations of the Municipal Code, including, but not limited to, the imposition of any and all criminal penalties set forth therein if there is any violation of this chapter committed, caused or maintained by the any of the above parties. Unless otherwise provided herein, any person convicted of an infraction shall, for each separate violation of this chapter be subject to: (1) a fine in an amount not to exceed five hundred dollars ($500) for a first conviction of an offense; (2) a fine in an amount not to exceed seven hundred fifty dollars ($750) for a second conviction of the same offense within a twelve (12) month period of the date of the first offense; and (3) a fine in an amount not to exceed one thousand dollars ($1,000) for the third conviction of the same offense within a twelve (12) month period of the date of the first offense. The fine for a fourth and subsequent convictions of the same offense within a 12 ORDINANCE NO. 1236 twelve (12) month period of the date of the first offense shall be one thousand five hundred dollars ($1,500). Notwithstanding the above, operating a short-term rental unit without a validly issued short-term rental permit shall be subject to: (1) a fine in an amount not to exceed one thousand dollars ($1,000) for a first conviction of an offense; (2) a fine in an amount not to exceed one thousand five hundred dollars ($1,500) for a second conviction of the same offense within a twelve (12) month period of the date of the first offense; and (3) a fine in an amount not to exceed two thousand dollars ($2,000) for the third conviction of the same offense within a twelve (12) month period of the date of the first offense. The fine for a fourth and subsequent convictions of the same offense within a twelve (12) month period of the date of the first offense shall be five thousand dollars ($5,000). F. Public Nuisance. It shall be a public nuisance for any person to commit, cause or maintain a violation of this chapter, which shall be subject to the provisions of Chapter 9.24 Noise Control and Chapter 9.25 Multiple Responses to Loud or Unruly Parties, Gatherings or Other Similar Events of the Municipal Code. Section 3: That Chapter 25.14.030 (K) — Conditional uses is hereby repelled in its entirety. Section 4: That Chapter 25.15.022 — Conditional uses is hereby repelled in its entirety. Section 5: That Chapter 25.16.030 (K) — Conditional uses is hereby repelled in its entirety Section 6: That Chapter 25.18.030 (M) — Conditional uses is hereby repelled in its entirety Section 7: That Chapter 25.20.030 (0) — Conditional uses is hereby repelled in its entirety Section 8: That Chapter 25.22.030 (1) — Conditional uses is hereby repelled in its entirety Section 9: That Chapter 25.24.025 (1) — Conditional uses is hereby repelled in its entirety 13 ORDINANCE NO. 1236 Section 10: Certification: That 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. Section 11: Effective Date: This ordinance shall take effect thirty (30) days after its seconding reading. PASSED, APPROVED AND ADOPTED at a regular meeting of the Palm Desert City Council, held on this day of 2012, by the following vote, to wit: AYES: NAYS: ABSENT: ABSTAIN: ATTEST: RACHELLE D. KLASSEN, City Clerk City of Palm Desert, California APPROVED AS TO FORM: Dave Erwin, City Attorney 14 ROBERT A. SPEIGAL, Mayor RESOLUTION NO.2012-15 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ESTABLISHING A FEE FOR PROCESSING SHORT-TERM RENTAL PERMIT APPLICATIONS. WHEREAS, the City has established a new permit for short-term rentals, requiring staff time for review and processing of the each permit on an annual basis. WHEREAS, staff wishes to recoup a portion of such costs to the City in the form of a fee similar to other local government agencies. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, that a fee of twenty five dollars ($25) be established to offset the expenses to the City, payable using a cashier's check, money order, or cash for the purposes of paying the fee. BE IT FURTHER RESOLVED that the City Council does hereby authorize the City Treasure/Director of Finance to charge the fee of twenty five dollars ($25) for processing each short-term rental permit application. PASSED, APPROVED AND ADOPTED at a regular meeting of the Palm Desert City Council, held on this day of 2012, by the following vote, to wit: AYES: NAYS: ABSENT: ABSTAIN: ATTEST: ROBERT A. SPEIGAL, Mayor APPROVED AS TO FORM: RACHELLE KLASSEN, City Clerk Dave Erwin, City Attorney City of Palm Desert, California