the operational and enforcement requirements of Chapter 5.20, requires a minimum stay of seven consecutive nights, and may occur only during discrete periods associated with special events affirmatively designated by the City Council; and
WHEREAS, on September 3, 2026, the City Council held a duly noticed public hearing regarding this Ordinance and considered all oral and written testimony, the staff report, and the other information in the administrative record; and
WHEREAS, all legal prerequisites to the adoption of this Ordinance have occurred.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIAN WELLS DOES ORDAIN AS FOLLOWS:
Section 1. Recitals.
The recitals above are true and correct and are incorporated into this Ordinance by this reference.
Section 2. California Environmental Quality Act.
The City Council finds that the action to adopt this Ordinance is exempt from the California Environmental Quality Act (“CEQA”) on each of the following independent grounds:
A. Common-Sense Exemption. The action is exempt under State CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the action may have a significant effect on the environment. The Ordinance modifies only the limited periods during which existing residential properties that otherwise comply with Chapter 5.20 of the Indian Wells Municipal Code may operate under restricted short-term residential rental permits. The Ordinance does not authorize construction or other physical development, increase residential density, modify development standards, or exempt any property or rental activity from the other operational and enforcement requirements of Chapter 5.20.
B. Class 1 Categorical Exemption — Existing Facilities. The action is also categorically exempt under State CEQA Guidelines section 15301 and Public Resources Code section 21084 because it regulates the permitting, leasing, licensing, and operation of existing private residential structures and involves, at most, a negligible expansion of an existing or former use. Any additional rental activity authorized by the Ordinance is limited to existing residences that otherwise qualify to operate under Chapter 5.20, is limited to discrete periods associated with special events designated by the City Council, and remains subject to the seven- consecutive-night minimum stay and all other applicable operational requirements.
The City Council further finds, based on the record before it, that none of the exceptions to the Class 1 categorical exemption identified in State CEQA Guidelines section 15300.2 apply.
The action does not authorize physical changes to any property, does not authorize new construction, does not affect scenic or historical resources, does not authorize activity on a hazardous-waste site, and does not present unusual circumstances creating a reasonable possibility of a significant environmental effect. The limited and temporary additional rental periods authorized by the Ordinance also do not create a significant cumulative environmental impact.
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Each exemption stated above independently supports the City Council’s determination that no further environmental review is required under CEQA.
Section 3. Amendment to Section 5.20.040.
Section 5.20.040(b)(2) of the Indian Wells Municipal Code is amended to read as set forth in Exhibit “A,” attached to and incorporated into this Ordinance by this reference. All other provisions of Section 5.20.040 remain unchanged.
Section 4. Amendment to Section 5.20.080.
Section 5.20.080(b) of the Indian Wells Municipal Code is amended to read as set forth in Exhibit “A,” attached to and incorporated into this Ordinance by this reference. All other provisions of Section 5.20.080 remain unchanged.
Section 5. Amendment to Section 5.20.220.
Section 5.20.220 of the Indian Wells Municipal Code is amended in its entirety to read as set forth in Exhibit “A,” attached to and incorporated into this Ordinance by this reference.
Section 6. Administrative Publication of Designated Events.
Following City Council designation of an additional special event under Section 5.20.220, City staff will publish the designated event and authorized rental period on the City’s website or other location customarily used by the City to provide public information concerning short- term residential rentals. Failure to publish, or any error or delay in publication, does not invalidate a designation properly approved by the City Council.
Section 7. Severability.
If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held invalid or unconstitutional by a court of competent jurisdiction, that decision does not affect the validity of the remaining portions of this Ordinance. The City Council declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, and portion regardless of whether any one or more sections, subsections, sentences, clauses, phrases, or portions are declared invalid or unconstitutional.
Section 8. Effective Date.
This Ordinance takes effect 30 days after its adoption.
Section 9. Publication and Certification.
The City Clerk is directed to certify to the adoption of this Ordinance and cause this Ordinance or a summary of it to be published or posted as required by law.
Section 10. Custodian of Records.
The custodian of records for this Ordinance is the City Clerk. The records comprising the administrative record are maintained by the City at 44-950 Eldorado Drive, Indian Wells, California 195
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92210.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Indian Wells, California, at a regular meeting held on the ___ day of October 2026. ________________________
DR. TOPER TAYLOR
MAYOR
STATE OF CALIFORNIA)
COUNTY OF RIVERSIDE) ss.
CITY OF INDIAN WELLS)
CERTIFICATION FOR ORDINANCE NO. _____
I, Angelica Avila, City Clerk of the City Council of the City of Indian Wells, California, DO HEREBY CERTIFY that Ordinance No. ____, the reading in full thereof unanimously waived, was duly passed and adopted at a regular meeting of the City Council held on the _____ day of _______ 2026, and said Ordinance was passed and adopted by the following vote:
AYES:
NOES:
and was thereafter on said day signed by the Mayor of said City of Indian Wells.
ATTEST: APPROVED AS TO FORM:
_____________________________ ______________________________
ANGELICA AVILA TODD LEISHMAN FOR
CITY CLERK BEST, BEST, & KRIEGER LLP
CITY ATTORNEY
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EXHIBIT “A”
CODE AMENDMENTS
1. Section 5.20.040 — Business license and short-term residential rental permit Subsection (b)(2) of Section 5.20.040 is hereby amended to read in its entirety as follows:
(2) Restricted Short-Term Residential Rental Permit. A restricted short- term residential rental permit may be granted to a person not operating under Section 5.20.190, 5.20.200, or 5.20.210 of this Chapter. A person operating under a restricted short-term residential rental permit may operate a short-term residential rental only during an authorized rental period established under Section 5.20.220 and is subject to the seven- consecutive-night minimum stay requirement set forth in that Section.
All other provisions of Section 5.20.040 remain unchanged.
2. Section 5.20.080 — Transient occupancy tax
Subsection (b) of Section 5.20.080 is hereby amended to read in its entirety as follows:
(b) Restricted Short-Term Residential Rental Permit Holders. An owner operating under a restricted short-term residential rental permit, or a managing agent acting on the owner’s behalf, must report and remit transient occupancy tax to the City, even if a zero balance exists for the reporting period, on or before the 30th day following the end of each calendar month during which the restricted short-term residential rental permit authorized operation under Section 5.20.220, on a form prepared by the City or in a manner otherwise acceptable to the City.
All other provisions of Section 5.20.080 remain unchanged.
3. Section 5.20.220 — Special-event exception
Section 5.20.220 is hereby amended to read in its entirety as follows:
§ 5.20.220. Special-event exception.
(a) BNP Paribas. Annual Indian Wells Tennis Garden Tournament. An owner who registers a property for operation as a short-term residential rental under Section 5.20.050 may rent the property for a period of no 197
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fewer than seven consecutive nights during the period commencing seven days before and ending three days after the conclusion of the annual professional tennis tournament held at the Indian Wells Tennis Garden that, as of 2026, is known as the BNP Paribas Open. That period constitutes an authorized rental period for purposes of this Chapter without further action by the City Council.
(b) Additional special events. The City Council may, by resolution or minute order, designate an additional special event held within the City for purposes of this Section. A designation must:
(1) Identify the special event;
(2) Identify the scheduled dates of the event; and
(3) Establish the authorized rental period during which restricted short-term residential rental permits may be used, including any authorized days before or after the event. An authorized rental period established under this subsection may commence no earlier than seven days before the scheduled beginning of the special event and may end no later than three days after its scheduled conclusion.
(c) Minimum Stay. A rental authorized under this Section must be for no fewer than seven consecutive nights.
(d) Effect of Designation. A City Council designation under subsection (b) constitutes the City’s determination that the designated event qualifies as a special event for purposes of this Chapter. No additional finding or administrative determination that the event is sponsored, endorsed, promoted, or financially supported by the City is required.
(e) Public Notice. Following a designation under subsection (b), the City will publish the designated event and authorized rental period on the City’s website or other location customarily used to provide public information concerning short-term residential rentals. Publication is for public notice and administrative convenience and is not a condition to the validity of a designation approved by the City Council.
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Attachment 2
REDLINE / STRIKEOUT OF CODE AMENDMENTS
Key: deleted text; added text
Section 5.20.040 — Business license and short-term residential rental permit * * *
(2) Restricted Short-Term Residential Rental Permit. A restricted short-term residential rental permit may be granted to a person not operating pursuant tounder Section
5.20.190, 5.20.200, or 5.20.210 of this Chapter. SuchA person operating under a restricted short- term residential rental permit may only operate a short-term residential rental during the annual tennis tournament held each year pursuant to Section 5.20.220 of this Chapter, and operate a short-term residential rental only during an authorized rental period established under Section
5.20.220 and is subject to the seven nightseven-consecutive-night minimum stay requirement set forth in that Section.
Section 5.20.080 — Transient occupancy tax
* * *
(b) Restricted Short-Term Residential Rental Permit Holders. TheAn owner operating under a restricted short-term residential rental permit, or a managing agent acting on the owner’s behalf, shallmust report and remit TOTtransient occupancy tax to the City, even if a zero balance exists for the reporting period, on or before the 30th day following the end of the month in which the annual, professional tennis tournament is held each calendar month during which the restricted short-term residential rental permit authorized operation under Section
5.20.220, on a form prepared by the City or in a manner otherwise acceptable to the City. § 5.20.220. Tennis tournament Special-event exception.
An owner who registers a property for operation as a short-term residential rental pursuant to Section 5.20.050 may rent the property for a period of no less than seven consecutive 199
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nights during the period commencing one week preceding and ending three days after conclusion of the annual professional tennis tournament held each year at the Indian Wells Tennis Garden. (a) BNP Paribas. An owner who registers a property for operation as a short-term residential rental under Section 5.20.050 may rent the property for a period of no fewer than seven consecutive nights during the period commencing seven days before and ending three days after the conclusion of the annual professional tennis tournament held at the Indian Wells Tennis Garden that, as of 2026, is known as the BNP Paribas Open. That period constitutes an authorized rental period for purposes of this Chapter without further action by the City Council. (b) Additional special events. The City Council may, by resolution or minute order, designate an additional special event held within the City for purposes of this Section. A designation must:
1. Identify the special event;
2. Identify the scheduled dates of the event; and
3. Establish the authorized rental period during which restricted short-term residential rental permits may be used, including any authorized days before or after the event.
An authorized rental period established under this subsection may commence no earlier than seven days before the scheduled beginning of the special event and may end no later than three days after its scheduled conclusion.
(c) Minimum Stay. A rental authorized under this Section must be for no fewer than seven consecutive nights.
(d) Effect of Designation. A City Council designation under subsection (b) constitutes the City’s determination that the designated event qualifies as a special event for purposes of this Chapter. No additional finding or administrative determination that the event is sponsored, endorsed, promoted, or financially supported by the City is required. (e) Public Notice. Following a designation under subsection (b), the City will publish the designated event and authorized rental period on the City’s website or other location customarily used to provide public information concerning short-term residential rentals. Publication is for public notice and administrative convenience and is not a condition to the validity of a designation approved by the City Council.
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