CITY COUNCIL STAFF REPORT
DATE: November 12, 2025 CONSENT CALENDAR
SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 2118 AMENDING PALM SPRINGS MUNICIPAL CODE SECTION 5.25
RELATIVE TO THE ALLOTMENT OF ANNUAL CONTRACT LIMITS FOR
VACATION RENTAL PERMIT HOLDERS
FROM: Scott C. Stiles, City Manager
BY: Department of Special Program Compliance
SUMMARY:
This is the second reading of an ordinance to amend Palm Springs Municipal Code (PSMC) Section 5.25 regarding the allotment of annual contract limits for vacation rental permit holders.
RECOMMENDATION:
Waive the second reading of text in its entirety, read by title only, and adopt Ordinance No. 2118, “AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTIONS 5.25.070(b) OF THE CITY’S VACATION RENTAL
ORDINANCE, REGARDING THE ANNUAL CAP ON THE NUMBER OF VACATION
RENTALS THAT CAN OCCUR ON RESIDENTIAL PROPERTY WITHIN THE CITY OF PALM SPRINGS.”
STAFF ANALYSIS:
On October 22, 2025, Ordinance No. 2118 was introduced for first reading as noted below:
ACTION: Waive reading of the text in its entirety, read by title only and introduce for first reading, Ordinance No. 2118, “AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA AMENDING SECTIONS 5.25.07(b) OF THE CITY’S
VACATION RENTAL ORDINANCE, REGARDING THE ANNUAL CAP ON THE
NUMBER OF VACATION RENTALS THAT CAN OCCUR ON RESIDENTIAL PROPERTY WITHIN THE CITY OF PALM SPRINGS”
City Council Staff Report
November 12, 2025 -- Page 2
Second Reading of Ordinance 2118
AYES: Councilmembers Garner, Bernstein, Ready, Mayor Pro Tem Soto, Mayor deHarte
NOES: None
ABSENT: None
The City Council voted to introduce Ordinance No. 2118, subject to certain revisions which were made at the time of first reading. Namely, the City Council voted to not increase the number of allowable rentals for those properties permitted after November 2022. The Council also voted to keep the “third quarter” distinction for pre-November 2022 permitted properties. Those revisions resulted in the following language:
Ҥ 5.25.070 Operational Requirements and Standard Conditions. ***
(b) For new permittees, on and after the effective date of this oOrdinance No. 2075, no more than 26 contracts for vacation rental use of a property shall be allowed or provided in any calendar year. For existing permittees, no more than 32 contracts for vacation rental use of a property shall be allowed or provided in any calendar year; however, up to four additional contracts shall be allowed or provided for the third quarter of a calendar year so long as the entire term of each such contract occurs during such third quarter, subject to reduction in such numbers on and after January 1, 2026. A contract includes any occupancy of a property subject to a vacation rental registration certificate by persons other than the owner when the owner is not present during such occupancy, regardless of whether compensation is paid for such occupancy or whether occupancy is evidenced in an agreement or document. For any property for which a Junior vacation rental registration certificate has been issued, no more than six contracts for vacation rental use of that property shall be allowed or provided in any calendar year.
(1) [Intentionally left blank].
(2) [Intentionally left blank].
(3) For Existing Permittees, the 32 + four contract limitation above shall be reduced to 26, on January 1, 2026. For new permittees, on and after the effective date of this ordinance, no more than 26 contracts for vacation rental use of a property shall be allowed or provided in any calendar year.
(4) Notwithstanding the restrictions imposed by this subparagraph, the owner at the time an application or renewal is submitted can designate and file with the enforcement official the names of up to five persons who may occupy the vacation rental unit at no cost and without requiring the presence of the owner on the premises of the vacation rental. Each such occupancy shall fully comply with all other provisions of this chapter, including, without limitation, the requirement to submit a contract summary prior to each applicable occupancy, as set forth in Section 5.25.070(h).
City Council Staff Report
November 12, 2025 -- Page 3
Second Reading of Ordinance 2118
The attached ordinance incorporates those revisions made at first reading.
This report provides for the City Council to waive further reading and adopt the ordinance, which shall be effective 30 days from adoption.
REVIEWED BY:
Department Director: Veronica Goedhart
Assistant City Manager: Teresa Gallavan
City Manager: Scott Stiles
ATTACHMENTS:
A. Ordinance No. 2118