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2021 01 27 CC Minutes Sp Mtg CITY COUNCIL MINUTES Page 1 of 12 January 27, 2021 SPECIAL MEETING   CITY COUNCIL SPECIAL MEETING MINUTES WEDNESDAY, JANUARY 27, 2021 CALL TO ORDER A special meeting of the La Quinta City Council was called to order at 5:00 p.m. by Mayor Evans. This meeting provided teleconferencing accessibility pursuant to Executive Orders N-25-20, N-29-20, N-33-20, N-35-20, and N-60-20 executed by the Governor of California, and the directives under the “Regional Stay At Home Order” from the California Department of Public Health, in response to the state of emergency relating to novel coronavirus disease 2019 (COVID-19) and enabling teleconferencing accommodations by suspending or waiving specified provisions in the Ralph M. Brown Act (Government Code § 54950 et seq.). PRESENT: Councilmembers Fitzpatrick, Peña, Radi, Sanchez, Mayor Evans ABSENT: None CITY STAFF PRESENT: City Manager McMillen, City Attorney Ihrke, Deputy City Clerk Romane, Design and Development Director Castro, Hub Manager Sanchez, Community Resources Director Escobedo, and Code Compliance/Animal Control Supervisor Meredith. PLEDGE OF ALLEGIANCE City Attorney Ihrke led the audience in the Pledge of Allegiance. CONFIRMATION OF AGENDA – Confirmed PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – None STUDY SESSION 1. DISCUSS SHORT-TERM VACATION RENTAL (STVR) PROGRAM AD-HOC COMMITTEE (Committee) RECOMMENDATIONS Design and Development Director Castro, City Attorney Ihrke, Hub Manager Sanchez, Community Resources Director Escobedo, and Code CITY COUNCIL MINUTES Page 2 of 12 January 27, 2021 SPECIAL MEETING   Compliance/Animal Control Supervisor Meredith presented the staff report, which is on file in the Clerk’s Office. City Manager McMillen said Staff is reviewing and comparing the lists of unpermitted STVR properties identified by the City’s vendors to ensure accuracy and confirm violations; compliance measures will be initiated in phases; pursuant to the recent code amendments related to STVRs, which went into effect on January 15, 2021, operating STVRs illegally is subject to a $5,000 dollar fine and a permanent ban from the STVR program. Council discussed homeshare-type STVR activity which has required little to no Code Compliance Staff efforts because the property owner is present on- site during the renter(s) stay; the City’s options to enforce compliance from unpermitted STVR operators; and homeowners’ associations (HOAs) ability to adopt regulations as part of their covenants, conditions and restrictions (CC&Rs) imposing rules and mitigation measures for STVR activities to ensure compliance, fines for unpermitted activities by its residents, as well as imposing a fee to operate as a STVR. Council commended Staff for the detailed report presented tonight. Council discussed the ability to impose a limit on the number of STVRs per owner to only one and the related verification process for the City; such limitation would also apply to the members of a business entity and would not allow the same person to own a STVR as a private owner and/or as a member of a business entity; ability to impose a requirement that a STVR property owner must reside within a certain geographic area such as La Quinta, the Coachella Valley, or Riverside County, etc.; current statistics show the number of one-night stays is minimal, thus imposing a requirement for a minimal two- night stay may not reduce STVR activity; limiting the allowed number of bookings to 32 per permit/per year would be more effective in reducing STVR activity; a special event permit would be needed if occupancy exceeds the permit limit after 10 p.m; mismanagement of HOAs regarding STVRs and the responsibility of HOAs to enforce its own CC&R regulations regarding STVRs rather than relying on the City to do so, and the City’s willingness to assist HOA Boards to develop regulations to achieve self-governance; STVRs over four bedrooms are examined to determine if there are bedroom conversions and if those conversions meet Building Code standards; need for consistency in permitting large STVRs that due to the number of guests, may require an Event Permit; and permitting STVRs only for the number of bedrooms identified in the initial home building permit and subsequent expansions/ additions, including Accessory Dwelling Units, would not be included or considered for STVR permits. CITY COUNCIL MINUTES Page 3 of 12 January 27, 2021 SPECIAL MEETING   MAYOR EVANS CALLED FOR A BRIEF RECESS AT 6:17 P.M. MAYOR EVANS RECONVENED THE CITY COUNCIL MEETING AT 6:22 P.M. WITH ALL MEMBERS PRESENT WRITTEN PUBLIC COMMENTS were received from those listed on Attachment 1 prior to the adjournment of the meeting at 12:01 a.m., including those received during the live meeting, and have been distributed to Council and incorporated into the agenda packet. PUBLIC SPEAKERS VIA TELEPHONIC ACCESSIBILITY listed in the order in which they spoke: 1. Waska, Robert (La Quinta, PGA West) – supports minimum one-week rentals; asks that the City assist PGA West with measures to control STVRs and improving their enforcement. 2. Zenz, Joanne (La Quinta, PGA West) - supports limiting STVRs due to its disruption to neighbors and diminished neighborhood quality; appreciates the City assisting PGA West, a HOA that the City isn’t obligated to assist with STVR matters. 3. Church, Gene (La Quinta Cove) – opposes STVRs; supports Committee’s recommendations; supports home-shares; and City makes more money from full-time residents than STVRs. 4. Mikulenka, Chris (North La Quinta) – questioned why citations were not issued during the recent lock-down period; 400 STVR permits exist for just 23 streets in North La Quinta and the Cove; and supports limiting permits within a 300’ radius. 5. Lambert, Jim (La Quinta, PGA West) – City’s Master Plan and Zoning Plan has no allowance for STVRs in residential zones; commended on the Committee’s recommendation; need accounting from City on its cost to administer the STVR program; any Councilmember involved in the business of real estate should recuse themselves on STVR matters. 6. Shoffstall, Don (La Quinta, PGA West) – poor audio connection – supports recommendations of N4N group such as cap on number of permits, minimum stays and extending the moratorium. 7. Hayes, Deonn E. (La Quinta) - poor audio connection - opposes a complete ban on STVRs; program must be fair and equitable to all. MAYOR EVANS CALLED FOR A BRIEF RECESS AT 7:10 P.M. TO GIVE CITY IT STAFF TIME TO IMPROVE THE AUDIO CONNECTION MAYOR EVANS RECONVENED THE CITY COUNCIL MEETING AT 7:20 P.M. WITH ALL MEMBERS PRESENT CITY COUNCIL MINUTES Page 4 of 12 January 27, 2021 SPECIAL MEETING   8. Estrada, Eddy (La Quinta, PGA West) – coalition has $200,000 to donate to a worthy organization; and some PGA West HOA Boards are under recall; support making incremental changes so improvements can be identified. 9. Wolff, Kay (La Quinta Cove) – go slow to get it right; extend moratorium; need time to reach consensus; all was well with residents and City revenues before STVRs with snow birds and long-term rentals; and Council is being pressured by corporations and out-of-town investors. 10. Hayes, Donald (La Quinta, PGA West) – support STVRs; during pandemic recovery, City should increase visitors; eliminating STVRs is unfair to low- and moderate-income families; and N4N doesn’t speak for all residents. 11. Storbo, Dick (La Quinta Cove) – supports tourism but not at the expense of residential neighborhoods; and provided four recommendations including a phase-out of STVRs. 12. Zhang, Eric (Fullerton, CA, an STVR Property Manager in La Quinta) – has asked neighbors around his STVR to contact him directly if problems arise but they don’t, they continually call City Code Enforcement; and if only long-term rental are permitted, neighbors’ complaints would be handled by the Police. 13. Baak, Sandy (La Quinta, PGA West) – support the PGA West HOA Board; house next door is run like a motel; and supports enhanced enforcement of STVR. 14. Chaine, Olivier, President of VRON-LQ, a STVR advocacy group – supports responsible STVR ordinances; and submitted a document from VRON-LQ members recommending solutions with consistent rules and enforcement. 15. Smith, Jeff (La Quinta Cove) – STVR problems will not be solved with regulations; and supports no new permits and a phase-out of STVR program. 16. Owens, Steven (La Quinta Cove) – operates STVRs in La Quinta and northern California without problems or complaints from neighbors; and supports the STVR program. 17. Osborn, Terry (La Quinta Cove) – STVR has contributed to La Quinta property values and neighborhood revival; the current recommendations make sense; he rents his house via the STVR program and suggests neighbors call owners directly if there are problems; and believes STVRs will drop off once the pandemic is over. 18. Hylton, Edie (La Quinta Cove) – had a STVR permit but discontinued it due to affects on their house and neighbors; supports phasing out STVRs starting with a freeze on new permits; City revenue will come from hotels reopening, new hotels and new transient occupancy zones; voters CITY COUNCIL MINUTES Page 5 of 12 January 27, 2021 SPECIAL MEETING   supported Measure G for an economically healthy City; and supports housing inventory for local workers and middle-income families. 19. Armendarez, Edward (La Quinta Cove) – STVR does not belong in residential neighbors. 20. Gotshalk, Arlene (La Quinta Cove) – opposes STVR; made recommendations to accommodate visitors in other ways; and highlighted legal cases re STVR. 21. McQuiggan, Timothy (La Quinta PGA West) – provided the reason for the recall of two PGA West HOA Boards; City is not treating the root cause of residents’ problems; more regulations are not the solutions; and STVRs is not in the long-term interest of a community. --- Young, Robert – withdrew his request to speak 22. Breeswine, Carrie (La Quinta, PGA West) – does not support a total ban on STVR; expects neighbors to respect her by controlling their STVRs; supports minimum stay requirements; and does not support multiple warnings or leeway to unpermitted STVRs. 23. Nasso, Austin - STVR owner of four-bedroom property; explained his oversight of each rental; City should not ban STVR now during the pandemic; and focus on few bad actors and re-evaluate after the pandemic. 24. Quill, Paul (La Quinta Cove) – generally opposes STVRs but does support the N4N recommendations; and explained the means for voters to get an anti-STVR Measure on the ballot. 25. Tamm, Jelena (La Quinta / Newport Beach) - owner of California Vacation Villas & a La Quinta property owner; asked if the list of violators of STVR rules will be made public; support lifting the moratorium; Code Compliance must contact the local manager of any STVR receiving a complaint and given 30 minutes to resolve the problem; and fines related to guest behavior should be issued to the guest, not the owner. 26. Parnell, Karen (La Quinta PGA West) – opposes extending the moratorium because the STVR bubble is over with the subsidence of the pandemic; opposes permitting day guests that exceed the maximum number of overnight guests; supports hiring contractors rather than increasing Code Compliance staff; and agrees that PGA West has mismanaged STVRs. 27. Williams, Linda (La Quinta) – supports phasing-out STVR in residential zones and increasing housing in transient occupancy zones; 70% of the City’s population is families and investor purchases of properties for STVR is decreasing housing opportunities for permanent residents; and opposes the issuance of new permits. 28. Gray, Richard (North La Quinta) – supports placing a STVR initiative on the ballot for residents to decide; STVR provide no benefit or compensation to residents; enforcement is not successful and cost for it will continue to rise; STVR is unfair competition to hotels which have CITY COUNCIL MINUTES Page 6 of 12 January 27, 2021 SPECIAL MEETING   few complaints; STVR tax revenue is not worth neighborhood destruction; and illegal activity is easily done and difficult to detect in STVRs. 29. Segal, Stefanie (La Quinta PGA West) – opposes STVRs in PGA West unless owners manage their renters and negotiate with PGA West HOA Board to resolve all the problems the STVR owners have caused. 30. Vince, Barbara (North La Quinta) – opposes STVRs; her cul-de-sac was quiet until STVRs; and supports a ban on STVRs in her neighborhood. 31. Mitzev, Vasko (La Quinta Cove) – owns a LQ STVR, splits time between La Quinta and Orange County; has invested over $100,000 to maintain his La Quinta property; only 5% of housing stock in La Quinta are STVR, a small and beneficial number; illegal STVRs cause the problems and should be shut down; complaints should first be made to owners; and those making multiple non-valid complaints to the City should be penalized. --- Mitzey, Jill – withdrew her request to speak 32. Fraiser, Jennifer (La Quinta Cove & Victoria, Canada) – wishes to rent her Cove home for minimum 28-days but has not heard back from the City; concerned that if she is not permitted to rent out, she will lose her La Quinta house; problems in PGA West should be handled by PGA West; and intends to retire in LQ so supports the community and its opposition to STVRs. --- Adams, Deborah Lynn – unable to reach, City called multiple times. MAYOR EVANS CALLED A RECESS AT 9:10 P.M. MAYOR EVANS RECONVENED THE CITY COUNCIL MEETING AT 9:20 P.M. WITH ALL MEMBERS PRESENT Mayor Evans requested that Council start discussion with slide no. 19 of the staff report. Council discussed the timing of STVR problems which began prior to the onset of the COVID-19 pandemic, as early as 2018; Council’s intention is to fix the problem, rather than place blame and Council works for the community as a whole, not any one industry or interest group; the City has no jurisdiction with regard to HOA CC&Rs or HOA Board decisions however should the City adopt citywide STVR regulations that are stricter than those in any HOA’s CC&Rs, the City regulations would rule. In response to Councilmember Sanchez’ conflict question, City Attorney Ihrke stated that being a licensed real estate broker does not present a conflict of interest because Councilmember Sanchez has no financial interest in any STVR. Mayor Evans added that no Councilmember operates any STVRs. CITY COUNCIL MINUTES Page 7 of 12 January 27, 2021 SPECIAL MEETING   Council discussed the reasons for the moratorium; the regulations enacted by the City of Palm Springs and the need for data on the effectiveness of those regulations; density options in residential zones such as limiting the number of permits within a certain radius, setting a minimum number of nights for stays, limiting occupants, limiting number of rental days per year, limiting the number of bookings per year, limiting the number of STVR properties per person; consensus was reached to table the 300’ radius limitation for now; consensus in support of hosted homeshares with no minimum stays and allowing owners to occupy auxiliary dwelling units during homeshares; consensus to continue the moratorium on homeshares due to the pandemic, and to avoid a flood of applications from those erroneously claiming to operate a homeshare; creating a lower fee permit, and accompanying regulations that apply to owners renting their primary residences a few times a year as opposed to absentee owners; data shows that 192 permits have been issued to those renting their primary residences for STVRs or homeshares; consensus that properties with five or more bedrooms would require a “special event” permit however, if only eight or less occupants rents such a house, an STVR permit would suffice. Council moved on to discuss noise complaints; requiring noise meters on all STVR properties or just those generating complaints; requiring noise meters both inside the house and at the property line; distinguishing types of noises for example loud pool play from children of STVRs versus the children of residents; requiring noise devices to meet certain specifications; consensus reached to direct staff to design a noise monitoring pilot program and; consensus to keep Executive Order No. 9 in place; consensus to keep “quiet time” to the 10 p.m. to 7 a.m. as stated in the Municipal Code. Regarding trash complaints, Council reached a consensus to include a requirement that STVR owners have a trash management plan so that trash bags and/or bins are not left at curbs for days. Council took up parking matters next with discussions on requiring a parking site plan for new and renewing STVR permits; consensus that existing STVR requirement of 4-persons to 1-vehicle ratio is satisfactory for all guests staying overnight on the property; consensus that parking for STVRs with five or more bedrooms will be addressed under the special event permit soon to be required. Council discussed the current two-strike regulation versus three-strikes i.e., number of citations “strikes” before the property’s permit is suspended and the consensus was to keep the two-strike regulation in place due to its effectiveness in reducing complaints. CITY COUNCIL MINUTES Page 8 of 12 January 27, 2021 SPECIAL MEETING   Council discussed daytime and nighttime occupancy and reached a consensus to keep the existing ordinance in place which provides for a range rather than a fixed number of occupants. Council asked Staff to explore getting property owners/managers to sign a statement acknowledging City regulations, and to explore the possibility of getting all renters to also sign such a document. Additionally, Council wishes Staff to explore the legality and practicality of getting a deposit from renters to be held against STVR violations occurring during their stay. Mayor Evans provided a recap of items on which the Council reached a consensus as follows: 1. Radius limitation - tabled until Staff provides additional data. 2. Hosted homeshares in residential zones – continue program with no minimum stays; owners of hosted homeshares may occupy auxiliary dwelling units while renting the main dwelling unit; continue the moratorium on homeshares due to the pandemic, and to avoid a flood of applications from those erroneously claiming to operate a homeshare. 3. Properties with five or more bedrooms – require a “special event” permit unless it’s rented by eight or less occupants, then a STVR permit would suffice; parking plans are to be required for a special event permit. 4. Noise – staff directed to initiate a noise monitoring pilot program; “quiet time” to remain 10 p.m. to 7 a.m. as required by the Municipal Code. 5. Executive Order No. 9 – to remain in effect. 6. Trash – owners to be required to have a trash management plan. 7. Parking – existing requirement of 4-persons to 1-vehicle ratio to remain for overnight guests. 8. Suspension due to citations – the two-strike regulation to remain in place. 9. Occupancy – the existing ordinance allowing for a range is to remain in place. 10. Limiting permits per owner – tabled until Staff provides additional data. 11. Setting minimum nights per stay – tabled until Staff provides additional data. 12. Limiting rentals per year – tabled until Staff provides additional data. MAYOR’S AND COUNCIL MEMBERS’ ITEMS Mayor Evans reminded listeners of the “purple tier” status and urged residents to support local restaurants and businesses. CITY COUNCIL MINUTES Page 9 of 12 January 27, 2021 SPECIAL MEETING   ADJOURNMENT There being no further business, a motion was made and seconded by Councilmembers Radi/Pena to adjourn at 12:01 a.m. Motion passed unanimously. Respectfully submitted, MONIKA RADEVA, City Clerk City of La Quinta, California CITY COUNCIL MINUTES Page 10 of 12 January 27, 2021 SPECIAL MEETING   ATTACHMENT 1 to CITY COUNCIL SPECIAL MEETING MINUTES THURSDAY, JANUARY 27, 2021 WRITTEN PUBLIC COMMENTS were received from the citizens below listed in alphabetical order, prior to the adjournment of the meeting at 12:01 a.m., including those received during the live meeting, and have been distributed to Council and incorporated into the agenda packet: 1. Alejo, Irene – supports STVRs 2. Aleman, Michelle – supports STVRs with more restrictions 3. Anderson, Lee – supports STVRs with crack downs on party houses 4. Anonymous – supports STVRs; provided recommend provisions 5. Armendarez, Edward – opposes STVRs 6. Bakall, Ergun – opposes STVRs 7. Bernick, DeBora - supports STVRs 8. Bernick, Charles – supports of STVRs 9. Beron, Bette – opposes STVRs 10. Best, Lawrence – commented on Staff’s analysis of the Ad Hoc Committee’s report 11. Bonilla, Elena – supports STVRs 12. Brar, Tony – supports STVRs 13. Briesach, Mary – supports STVRs 14. Brown, Derrick – opposes STVRs 15. Butler, Marty – opposes STVRs 16. Calhoun, Tiffany – supports STVRs 17. Capobianco, Peter – moving out of La Quinta due to STVRs in PGA West 18. Chavez, Shannon – supports STVRs; commented on Ad Hoc Committee’s recommendations 19. Colby, Chuck – supports STVRs with beefed up enforcement 20. Cunnington, Karayn – opposes STVRs; supports Ad Hoc Committee’s recommendations 21. Cunnington, Ed – opposes STVRs; supports Ad Hoc Committee’s recommendations 22. Currie, Cindy – opposes STVRs 23. Cutchin, Marcia – opposes new licenses for non-hosted STVRs 24. Daniels, Lynne – supports STVRs 25. Daniels, Rob – supports STVRs 26. Ditter, Jill – opposes STVRs 27. Ehren, Melissa – opposes STVRs 28. Franco Dianne – supports keeping the moratorium CITY COUNCIL MINUTES Page 11 of 12 January 27, 2021 SPECIAL MEETING   29. Futalan, Mark – supports STVRs 30. Futalan, Desiree – supports STVRs 31. Goldfinch, Greg – supports N4N in opposing STVRs 32. Gotshalk, Arlene – opposes STVR 33. Graves, Cathy – opposes STVRs 34. Graves, Dean – opposes STVRs 35. Grenier, Kylie – opposes STVRs; supports N4N’s recommendations 36. Hagerman, Allen – opposes STVR; supports a minimum two-week stay 37. Hefti, Denise – supports STVRs 38. Heitner, Jeff – supports limiting number of STVRs & minimum one-week stay 39. Howard, Angie – supports STVRs 40. Jelus, Carol – supports STVRs 41. Jelus, Paul – supports STVRs 42. Kaiser, Ambrosio – opposes STVRs 43. Kaiser, Jeffrey – opposes STVRs 44. Kaiser, Joanna – opposes STVRs 45. Khan, Anthony – supports STVRs and capping the number of permits issued 46. Khan, Suzanne – supports limiting STVRs to existing permits 47. Kraemer, Linda – opposes STVRs 48. Lambert, Jim – opposes STVRs; supports Ad Hoc Committee’s recommendations 49. Larson, Kim – opposes STVRs; supports extending the moratorium 50. Lloyd, Walt – opposes STVRs 51. Logan, John – supports STVRs 52. Long Jr., Russ – opposes STVRs; supports N4N 53. Madonado, Carol – supports STVRs 54. McDade, Jason – supports STVRs 55. McGrath, Elaina – supports STVRs 56. McGrath, Sean – supports STVRs and recall of the moratorium 57. Millar, Elaine – opposes STVRs 58. Montavon, Barb – opposes STVRs and illegal ads 59. Nagel, Joni – opposes STVRs 60. Neighbors for Neighborhoods, rep Daniel Villegas – opposes new STVRs 61. Neighbors for Neighborhoods, rep Don Shoffstall – opposes STVRs 62. Nelson, Matthew – opposes STVRs 63. Niederhauser, Steven – supports STVRs 64. Nimis, Connie – opposes STVRs 65. Nimis, Donald – opposes STVRs 66. Porter, Jennifer – supports STVRs 67. Potenza, Nick – opposes STVRs 68. Pracht, Patricia – opposes STVRs 69. Pracht, Terry – opposes STVRs 70. Quill, Paul – opposes STVRs 71. Reed, Diane – supports STVRs CITY COUNCIL MINUTES Page 12 of 12 January 27, 2021 SPECIAL MEETING   72. Rolston, Bob – supports limiting STVRs 73. Santiago, Adam – commented on Ad Hoc Committee’s recommendations 74. Savageau, Joe – opposes STVRs 75. Servais, Mike – opposes STVRs 76. Siegel, Neale – opposes STVRs 77. Smith, Mike – supports STVRs 78. Smith, Susie – supports STVRs 79. Smith, Jeff – opposes STVRs 80. Smith, Val – opposes STVRs 81. Soliman, Janet – supports STVRs 82. Speidel, Paul – supports STVRs 83. Stearns, David – opposes STVRs 84. Storbo, Dick – opposes STVRs; supports Ad Hoc Committee’s recommendations 85. Storbo, Janis - opposes STVRs; supports Ad Hoc Committee’s recommendations 86. Struthers, George – supports 28-day minimum rentals 87. Struthers, Monica – supports 28-day minimum rentals 88. Sweeney, Michael – supports STVRs 89. Thompson, Marie – opposes STVRs 90. Vano, Jon – opposes STVRs; supports a permanent moratorium 91. Vano, Laura – opposes STVRs; supports a permanent moratorium 92. Venosa, Joe – supports STVRs 93. Vince, Barbara – opposes STVRs 94. VRON-LQ, rep Olivier Chaine – supports STVRs 95. Williams, Linda – opposes STVRs 96. Wilson, Rich – supports limiting STVRs 97. Wolff, Kay – supports extending the moratorium on non-hosted rentals 98. Yukich, Janet – opposes STVRs 99. Yukich, Jim – opposes STVRs 100. Zehnder, Susan – opposes STVRs 101. Zehnder, Werner – opposes STVRs