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HomeMy WebLinkAboutCC Minutes 2020-12-02 CITY COUNCIL MINUTES Cathedral City Regular Meeting Wednesday, December 2, 2020 5:30 PM City Council Chambers 68-700 Avenida Lalo Guerrero Cathedral City, CA 92234 • CALL TO ORDER The meeting was called to order at 5:30 PM by Mayor John Aguilar. • PLEDGE OF ALLEGIANCE Councilmember Mark Carnevale led the Pledge of Allegiance. • INVOCATION (MOMENT OF REFLECTION) Councilmember Ernest Gutierrez offered the Invocation. • ROLL CALL Attendee Name Title Status Arrived John Aguilar Mayor Remote Raymond Gregory Mayor Pro Tem Remote Mark Carnevale Councilmember ' Present 5:30 PM Ernesto Gutierrez Councilmember Present 5:30 PM Rita Lamb Councilmember Remote Mayor John Aguilar, Mayor Pro Tem Raymond Gregory and Councilmember Rita Lamb all participated by video conference via Zoom. • AGENDA FINALIZATION 1. CLOSED SESSION City Attorney Eric Vail announced that the City Council will meet in Closed Session to discuss the following items listed on the Agenda: A. Conference with Legal Counsel - Anticipated Litigation Pursuant to Government Code Section 54956.9(d)(2). Number of Potential Cases: One The City Council recessed to Closed Session at 5:32 pm. The City Council reconvened at 6:25 pm. City Attorney Eric Vail announced that the City Council met in Closed Session to discuss item 1A. Conference with Legal Counsel regarding one case of anticipated litigation. There was no reportable action taken. • STATEMENT OF PARTICIPATION BY THE CITY CLERK 2. PUBLIC COMMENT There were no members of the public that wished to speak. 3. LEGISLATIVE ACTIONS A. Receive and File Certification of Signatures on a Petition Received and Verified for a Referendum of Ordinance 842. Recommendation: Receive and file, there is no formal action required. City Clerk Tracey Martinez indicated that the County of Riverside Registrar of Voters Office completed their signature verification of the Referendum petition and provided a certificate which states the following: The total number of signatures submitted were 4,304 The total number of sufficient signatures on said petition were 3,515 The total number of required signatures have been certified and petition is deemed sufficient. B. Short Term Vacation Rental Ordinance and Real-Estate Sponsored Referendum Petition — Council Reconsideration or Submission to local Cathedral City Voters. Recommendation: In response to the real-estate sponsored petition to repeal sections 1 and 3 of Ordinance No. 842, it is recommended that the City Council reconsider Ordinance No. 842 regulating short term vacation rentals and either a) direct staff to prepare an Ordinance repealing Ordinance No. 842 in its entirety; or b) adopt a resolution calling a March 2, 2021 special election to submit a referendum on retaining Ordinance No. 842, in its entirety to the voters. City Attorney Eric Vail discussed the City Council's legal obligations in response to the real-estate sponsored petition to repeal sections 1 and 3 of Ordinance No. 842. He indicated that the Council will need to reconsider Ordinance No. 842, and decide whether to repeal it or put it on the ballot in either March or November of 2021. He further clarified how the measure would read should it be placed on the ballot. The following individuals provided public comment by video conferencing via Zoom: Cathedral City Page 2 Printed on 1/07/2021 Robert Magzanyan urged the City Council not to hold a special election, which he feels is not a good use of funds. With the 4000 signatures collected he feels the people have spoken and they want to keep short-term vacation rentals. He asked that the City Council work with ILCC. Alan Carvalho stated that he is grateful to be able to address the City Council. He feels that the City Council has not always been right on some issues and feels that it is important to hear the voters if necessary. He also stated that many of the short-term vacation rental supporters many not be as vocal as those who oppose it. He suggested that each Councilmember go out to their districts and ask the residents how they feel about the issue of short-term vacation rentals. Mike Fish stated that he is a proud short-term vacation rental owner and has never received a complaint on his property. He expressed his concern with the lack of communication he has encountered with the City Council. He expressed his concern with the proposed special election and feels there are many options that the City Council could consider as outlined by the City Attorney. He also expressed his concern with the City issued survey to gage voter opinion on a possible ballot measure. He feels the robust enforcement will require some time to gage its effectiveness and make an educated assessment. Nelli Arakelyan stated that her message is to the voters and residents of Cathedral City. She feels the City is still trying to push short-term vacation rentals out even after 3500 signatures were collected in favor of keeping them. She expressed her concern with the cost of the City issued survey and the cost of a special election. She also feels the City should focus on enforcing their own rules which seem to be finally working. The following individuals provided public comment via telephone: Sandra Richter stated that the signatures obtained do not represent the residents that live in the City. She feels those in favor of short-term vacation rentals are not concerned with the welfare of the citizens. She expressed her concern with the current rise in COVID-19 cases and would like protection from short-term vacation rentals contributing to the spread. Brian Felber stated that he is speaking from the heart. He feels that since the July City Council meeting, we are moving backwards. He would like to see how the new enforcement team plays out and focus on enforcement which he feels can be done. He noted that he helped collect signatures for the referendum and most residents felt that the decisions of the City Council were not the correct ones. He stated that the ILCC is willing to work with the City and he urged the City to do the same. Boris Stark thanked the City for the new compliance team. He stated that in light of the COVID-19 pandemic, he hopes that the City is giving clear direction to residents to prevent gatherings. He feels that as he has reflected back on this process, the City has not come to the table to talk and negotiate the issues. Instead, the City is headed down a path that will cost the taxpayers' money. He Cathedral City Page 3 Printed on 1/07/2021 would like the City Council to take into consideration how the community is being divided when they make their decisions. He also suggested that the Council see firsthand how well the ordinance in Palm Springs is working and see there is a way to co-exist with a good ordinance and good enforcement. Keith Haarmeyer thanked the City Council for their time. He stated that he is a voting resident who also rents his property occasionally. He expressed his concern with the City Council's decisions and feels they are being wrong and unfair. He urged the City Council to reconsider Ordinance No. 842 and not put it on a ballot wasting taxpayers' money. He feels that the City Council has ignored the 3500 who have spoken on the referendum and the City issued survey was not objective. As a STVR owner, he never wants a party at his home or next to his home. He feels many other owners feel the same way. He urged the Council to rethink their position, stop the ban, and make a decision that works for everyone. Lindsay Jones appreciates staff's efforts with the new enforcement. She asked that the enforcement team proceed lawfully in their efforts and expressed her concern with a recent incident. She claims enforcement officers entered one of her properties placing her guests and staff at risk by directly violating pandemic restrictions. Video from the incident was also used for City marketing without permission. She also expressed her concern with the cost of a special election during a time when employees are being laid off. She urged the City to come to the table with ILCC to come up with fair regulations and enforcement. Kevin Ogilvie thanked the City Council and City Manager Charles McClendon for setting up enforcement that has been lacking over the years. He urged the City to review the methods used by the enforcement team and expressed his concern with a recent citation a property he manages received. He questioned if these citations are being given to non-short-term rentals and being enforced city-wide. He also urged the City Council to come to the bargaining table instead of spending money on a costly special election. Paul Lougee stated that he owns a short-term rental in Cathedral City and is a board member of ILCC. He questioned why the City Council has refused to communicate with Share Cathedral City, which is the organization that lead a successful referendum by collecting over 3,500 signatures to overturn Ordinance No. 842. He noted the Council's options in response to the referendum and expressed his concern with the cost of the City issued survey and a possible special election. He urged the City Council to come to the negotiating table and save taxpayer's dollars. Adam Ramirez stated that he previously spoke on a short-term vacation rental issue. He urged the City Council to lead the City down a constructive path. He feels that they all know what proper enforcement can do for this industry. He also feels that too often City Councils take the easy way out and forgo the hard work to foster and promote the growth of a new market. During these times he finds it shocking to push away any revenue source and he expressed his concern with the cost of the City issued survey and a possible election, which could be used to cover employee salaries. Cathedral City Page 4 Printed on 1/07/2021 The following individuals submitted a public comment for the record. Their comment was read for three minutes and the full comment will be made part of the record according to our standard procedures: Brad Hogie stated that the residents of Cathedral City are tired of party houses, multiple vehicles on the street and noise. He requested that the City Council keep the phase-out of short-term vacation rentals in Cathedral City. Tom Patterson stated that he is opposed to short-term vacation rentals in residential neighborhoods as they present security risks and unnecessary COVID-19 exposure. Gary Nadeau expressed his concern with short-term vacation rentals turning his neighborhood into a ghetto. He feels that short-term vacation rentals are businesses in residentially zoned neighborhoods. He requested that short-term vacation rentals be banned. Gillian Cross expressed concern about a short-term vacation rental near her. She stated that she supports the restrictions in Ordinance No. 842 and encouraged the City Council to send the issue to a city-wide vote. Ruth Fernandez feels short-term vacation rentals are businesses and do not belong in residential areas. She opposes short-term vacation rentals and would like them banned from her beautiful city. Judith Stevenson expressed her concern with short-term vacation rentals turning homes into party houses and nuisances. She requested that the City Council refer the issue of short-term vacation rentals to a city-wide vote. Ruth Grau shared some information on tenants that she recently hosted at her short-term vacation rental to give the City Council an idea of who is coming into their city. She indicated that during the COVID-19 pandemic guests have preferred short-term rentals to hotels as there is less interaction with other people and they are able to stay safe and isolated. Curt and Vana Elwell shared some information on tenants that they recently hosted at their short-term vacation rental. They indicated that Cathedral City will become their home when they retire in a few years and renting short-term is helping to get to their retirement sooner. They asked that the City Council not punish those who have been following the rules and urged them to shut down the illegal operators. Mark Leach expressed his concern with a short-term vacation rental near his home in Panorama. He indicated that he has expressed his concerns to Mayor Pro Tern Raymond Gregory on numerous occasions. He strongly opposes short- term vacation rentals and requests that the City Council allow the citizens to vote on this issue. Barbara Effler requested that the City Council reject the short-term vacation Cathedral City Page 5 Printed on 1/07/2021 rental industry's demands to rescind the short-term vacation rental ordinance that was previously passed. She supports a city-wide vote on the issue because of the following: short-term vacation rentals disrupt R1 neighborhoods, enforcement has not worked, tourism will continue through home-sharing, and short-term vacation rentals reduce the number of homes available for long-term rentals and purchases. Mariellen Boss requested that the City Council not allow short-term vacation rentals in neighborhoods. She stated that she bought her home 30 years ago to live in a neighborhood not next to a hotel. She feels HOAs are designed for short-term renters and her neighborhood was not set up for short-term renters. Burt Boss stated that he lives in the area known as Landau Homes which has a set of CCRs that prohibit short-term vacation rentals. He requested that the City Council not allow short-term vacation rentals in residential areas of the City. Danny Lee feels that the residents' fight to defend their residential neighborhoods has been long. He feels the City is a place for workers to rest at night, families to raise their children and retirees to enjoy a calm peaceful retirement, not a tourist center. He also feels the City does not realize major revenues from tourist dollars like Palm Springs and Coachella. He urged the City Council to send it to a vote in March. Doug Evans provided a recap of the City Council's decisions regarding short- term vacation rentals and the referendum circulated by the short-term vacation rental industry. He expressed his concern with the claims made by ILCC, which he feels are not supported by facts. He supports putting the referendum on the ballot and thanked the City Council for putting the residents first. Cyndie and Bruce Swauger thanked the City Council and staff for their hard work during the COVID-19 pandemic. They are thankful for the short-term vacation rental moratorium and Ordinance No. 842 and urged the City Council not to repeal Ordinance No. 842. They appreciate the City Council's concern for the well-being of its full-time residents. Warren Grau commented on all the things he is doing to ensure there are no parties at his short-term vacation rental. He stated that he prefers short-term tenants to long-term tenants because it allows him to use the property himself as much as possible and he plans to retire here one day. He shared some recent reviews from tenants he has hosted. Jeff Bergen expressed his concern with the small group of investors who are running businesses in the City's neighborhoods at the expense of the full-time residents. He feels that since the moratorium was put into place home prices have sky-rocketed. He also feels that all the enforcement in the world can't protect the sanctity of our community. He feels the issue must come to a vote and short-term vacation rentals must be banned. Mayor John Aguilar stated that the City Council will take a brief recess at 7:44 pm. Cathedral City Page 6 Printed on 1/07/2021 The City Council reconvened at 7:51 pm. Shine Nissar thanked the City Council for adopting the short-term vacation rental Ordinance No. 842. She urged the Council not to repeal the ordinance and she is opposed any measure seeking to overturn it. Bob Ohda thanked City staff for keeping the City functioning during the current pandemic. He indicated that the residents of Cathedral City love the City, support local companies, shop local, participate in community life, support school, and support police and fire personnel. He feels that the City Council's recent actions related to short-term vacation rentals prove they care very deeply about the Community. He supports Ordinance No. 842 and also supports the rights of short-term vacation rental supporters to sponsor a referendum on the ballot to challenge the new ordinance. He urged the City Council to submit a referendum on the ballot for a vote. Teri Hargreaves urged the City Council to stand firm against the short-term vacation rental industry and not repeal Ordinance No. 842. She expressed her concern with the tactics used by 1LCC and Share Cathedral City to obtain signatures on the referendum petition. She also expressed her concern with the cost of a special election forced by short-term vacation owners and managers. She stated that she is a member of Cathedral City Residents (CCR) which is an association of local residents that support Ordinance No. 842, and she is confident that they will defeat the Cathedral City Short-Term Vacation Rental Regulation Measure if it is put on the ballot. Cheryl Williams stated that she is a Realtor and a co-owner of a corporate housing company. She stated that her home is a rental about 135 days a year. She lives in her home the remainder of the year and feels it is her right to rent her home when she is away. She also feels she shouldn't be forced to move in order to maintain a lifestyle she worked hard to get. She indicated that she has never had a complaint from her neighbors in the three years she has rented her home. She discussed her company's strict policies and recommends that short-term vacation rentals be managed by companies like hers. Steve and Elisa Turner stated that they purchased their home in 2013 as a retirement home. They stay in the home a few weeks a year and rent it out to help with expenses. They follow all rules set forth by the City and screen their guests carefully. They believe extra enforcement of non-permitted operators should be targeted and feels there are other options verses an outright ban on all short-term vacation rentals. Ronald Mendiola thanked the City Council for protecting residential neighborhoods with Ordinance No. 842. He expressed his frustration with living next to a short-term vacation rental. He feels the new ordinance has clear direction and language for code enforcement to enforce. He encouraged the City Council to give the residents a chance to vote on this issue if needed. Kelly Sharbaugh stated that when she helped gather signatures for the Cathedral City Page 7 Printed on 1/07/2021 referendum only one person out of fifty was opposed to short-term vacation rentals. She expressed her concern with bad neighbors making complaints when there is no real issue. She also expressed concern with the cost of a special election when there is an opportunity to see how the new enforcement works. She would like to try working together for the greater good of the Community. Ellen Kane stated that Palm Desert United is a resident's group which has been committed to protecting quality of life in her community. She advocated for their short-term vacation rental ordinance that since implemented has restored quality of life in neighborhoods. She stated that they fully support Cathedral City Residents (CCR) in their request that the City Council not repeal short-term vacation Ordinance No. 842. Chris Platt and Robert Dorman stated that they purchased their home in Cathedral City over 8 years ago with hopes of retiring here. In that time, they have opened their home up to guests and have not had a single complaint against the property or visitors to the property. They check in with their neighbors when they come to visit, which is often, to ensure their quality of life has not been compromised by their guests. They are legal and compliant owners and they are willing to comply with stricter regulations in lieu of a total phase-out. They requested that the City Council consider rescinding the order to phase-out rentals. James Mewes expressed his concern with the enforcement and the measures taken by the City to control short-term vacation rentals to correct a problem he feels they created by allowing too many permits in certain areas. He expressed his concern with the members of the Short-Term Vacation Task Force and their recommendations. He feels the City is being punitive to short-term vacation rental owners by dramatically raising the fees and he urged the City Council to reconsider. Alessandra Montanaro stated that she loves hosting families and keeping them safe by conducting new cleaning standards, advising guests of safety concerns and encouraging them to stay at the home. She indicated that her guests want to get away from their daily stress and enjoy the home and pool without leaving the home. Mike Ziskind stated that he is the Chairman of Neighborhoods of Rancho Mirage, a neighborhood organization whose goal is to guarantee that our residential neighborhoods are not commercialized by motels. He stated that Cathedral City, like many other cities, has stood up to protect its families and neighborhoods and they fully support the efforts of Cathedral City Residents (CCR). He feels Ordinance No. 842 should not be repealed. Cynthia Ridley expressed her concern with the cost of a special election and suggested folding it into the midterm elections in 2022 at no cost to the City or compromising and working together with the short-term vacation rental owners. She feels this will allow time for the City to see if the new enforcement measures work. She also expressed her concern with the money spent to collect data from 400 people when over 4000 signatures were collected in support of short-term Cathedral City Page 8 Printed on 1/07/2021 vacation rentals. Color Gallagher stated that he has never had a complaint about his rental. He limits his rental as he does not want it used as a party house. He expressed his concern with not being heard and the City taking away income from homeowners who need it to support their families. He feels that responsible owners should not be punished, and he has a right to rent his property. Larry McGill stated that he is not a short-term vacation rental owner and opposes any ban on short-term vacation rentals. He suggested that the City Council reconsider and stop any further enactment or enforcement of administrative regulations involving short-term vacation rentals and put the matter to a vote. Melinda Johnston stated that she strongly opposes short-term vacation rentals in neighborhoods. She feels short-term vacation renters are not neighbors and supports Ordinance No. 842. She encouraged the City Council to send the issue to a city-wide vote. Darryl Keene is opposed to eliminating vacation rentals which is based on the financial burden this will cause to the service industry and the City. He feels the City did not make a decision based on sound reasoning or accurate information. He feels the City needs to welcome money available to the businesses and residents from tourism. Damian Thomas is in support of short-term vacation rentals in Cathedral City. He owns a short-term vacation rental that is managed by a reputable property management company and has had zero complaints. He feels that since the current short-term vacation rental compliance team has only existed for less than a month, it makes sense to delay any further action for at least a year to allow time to evaluate the effectiveness. Mark Archacki feels the City does not need to spend money on a special election and questioned how the City can justify the expenditure to the taxpayers. He stated that cities that get rid of vacation rentals end up raising taxes to make up for the shortfall and questioned if that is where they are headed. He feels that time is needed for new rules and enforcement to work, and in a years' time we will be able to put illegal rentals out of operation and identify problem rentals. He feels the City Council is focusing on the negatives of vacation rentals and not the positives. He bought his home and has spent thousands of dollars improving it which has contributed to a rise in home values. He urged the City Council not to spend money on an election when they are eliminating jobs for services that are needed in the Community. He suggested keeping the moratorium, grandfather in existing permits, strictly enforce rules, and shut down violators. Ed Emond-Worline supports the short-term vacation Ordinance No. 842. He feels that repealing the ordinance would line the pockets of investors and continue to tear apart the residential neighborhoods. He would like to live next to neighbors not weekend tourists and feels no amount of enforcement can solve the noise complaints. He urged the City Council not to repeal Ordinance No. 842. Cathedral City Page 9 Printed on 1/07/2021 Arlene Gotshalk, on behalf of members of STVR Restrictions for La Quinta, stated that citizens of La Quinta have been following the Cathedral City City Council and are inspired that they put their residents first. She indicated that they fully support the Cathedral City Residents' position not to repeal short-term vacation rental Ordinance No. 842. Robert Kranack is in support of short-term vacation rentals in non HOA's. He feels the City is moving in the right direction for proper enforcement but more needs to be done. He indicated that enough support for short-term vacation rentals has been shown on the petition to stop the ordinance and now is not the time to spend money on a special election. He urged the City Council to continue to work on proper enforcement to make everyone happy. City Clerk Tracey Martinez noted that the City Clerk's Department received two comments opposing short-term vacation rentals, two comments expressing concern over issues caused by short-term vacation rentals, three comments in support of short-term vacation rentals, and five comments supporting a special election. Councilmember Mark Carnevale supports moving forward with a Special Election to let the people vote. Mayor Pro Tem Raymond Gregory thanked all those that provided comments and stated that they continue to hear the pleas of both sides and have tried to come up with the best solutions. He feels that the safety and security of our neighborhoods are our priority and residential neighborhoods are meant for residents. He indicated that there is a housing shortage and he feels that residents contribute to the fabric of our community. He concurs with Councilmember Carnevale and is willing to make a motion when the time comes. Councilmember Rita Lamb agrees with the Council and appreciates the time and effort of those who have commented. She also feels the safety and security of our full-time residents is their priority and she concurs with Councilmember Carnevale and Mayor Pro Tem Gregory. Councilmember Ernesto Gutierrez has heard from multiple residents who are suffering because of short-term vacation rentals and are living in hell. Many have moved out of the Community because they could no longer handle it. The City and Council have spent many hours related to this issue and he was elected to serve the residents and feels that he has done that. He supports a Special Election. Mayor John Aguilar stated that when this conversation first started over a year ago, he was very much on the fence and questioned if the Council's decision was the right one. But after a year of participating with the task force he now feels that short-term vacation rentals under any circumstance are disruptive to our neighborhoods and are a bad idea. Councilmember Ernesto Gutierrez questioned why the Council cannot draft an argument for the Measure. Cathedral City Page 10 Printed on 1/07/2021 City Attorney Eric Vail responded that he recommends the City Council keep themselves separate and not draft an argument. Reso-2020-62 A motion was made by Mayor Pro Tem Gregory and seconded by Councilmember Carnevale to adopt a resolution calling a March 2, 2021 special election to submit a referendum on retaining Ordinance No. 842, in its entirety to the voters. RESULT: APPROVED [UNANIMOUS] MOVER: Raymond Gregory, Mayor Pro Tern SECONDER: Mark Carnevale, Councilmember AYES: Aguilar, Gregory, Carnevale, Gutierrez, Lamb ADJOURN The Regular Meeting was adjourned by Mayor John Aguilar at 8:42 pm. 1 Aakti )_11/1_,(1( 12 1,17 /1,LcsV / M. . , City o :t -dral City City Clerk,IQ of Cathedral City Cathedral City Page 11 Printed on 1/07/2021