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CITY COUNCIL STAFF REPORT
DATE: FEBRUARY 25, 2026 BUSINESS & LEGISLATIVE
SUBJECT: INTRODUCTION OF ORDINANCE ADDING SECTION 12.28.055 TO THE
PALM SPRINGS MUNICIPAL CODE REGULATING VEHICLE
COMMERCIAL ACTIVITY IN THE PUBLIC RIGHT-OF-WAY
FROM: Scott C. Stiles, City Manager
BY: Jeffrey S. Ballinger, City Attorney
SUMMARY:
This agenda item provides the City Council with the opportunity to consider and introduce an ordinance that regulates vehicle sales/rental activity in the public right-of-way in a content-neutral manner to promote traffic and pedestrian safety, and protect residential parking. The proposed Ordinance would add Section 12.28.055 to the Palm Springs Municipal Code and would generally prohibit vehicle sales/rental activity in the public right-of-way, while providing a narrow safe harbor based on objective criteria.
RECOMMENDATION:
Introduce Ordinance adding 12.28.055 to the Palm Springs Municipal Code regulating vehicle commercial activity in the public right-of-way, and schedule the Ordinance for adoption at a subsequent meeting.
BACKGROUND:
The City has received recurring complaints regarding vehicles that are parked and left standing on City streets for multiple days in a manner consistent with using the public right-of-way to facilitate vehicle sales or rentals/exchanges. Residents have reported that these vehicles reduce the availability of curb parking for nearby homeowners and visitors, and create traffic and pedestrian safety concerns where pedestrians stop to view vehicles, particularly in areas where vehicle speeds are higher.
The City’s existing parking regulations in Chapter 12.32 provide the City with authority to establish parking prohibitions and time limits through posted signage and curb markings.
In practice however, residents and staff have reported ongoing challenges in addressing vehicle parking patterns associated with vehicle commercial activity, including circumstances where vehicles are moved short distances to avoid citation or where sign-
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based time limitations are not in place. In addition, the City has previously prohibited the use of City streets for storage of vehicles (PSMC 12.28.040) as well as for the purpose of washing, waxing, wiping, greasing, or repairing vehicles (PSMC 12.28.050).
The proposed Ordinance is intended to provide an additional tool for addressing this ongoing issue by regulating conduct and use of the public right-of-way in a content neutral manner, without regulating the content of signage.
STAFF ANALYSIS:
Under the proposed Ordinance, the City Council would add a new Section 12.28.055 to the Palm Springs Municipal Code, to regulate vehicle commercial activity in the public right-of-way. The key components of the Ordinance are summarized below.
1. Content-Neutral Approach.
The Ordinance is drafted to regulate conduct within and the use of the public right-of-way, not speech. The Ordinance does not reference the content of any “for sale” sign or other message. A violation of the Ordinance may be established without regard to, and without evidence of, the content of any sign, writing, or communication.
2. General Prohibition.
The Ordinance would generally prohibit “Vehicle Commercial Activity” in the public right- of-way. “Vehicle Commercial Activity” is defined to include parking, standing, stopping, placing, or leaving a vehicle in the public right-of-way for the primary purpose of facilitating the sale, exchange, lease, or transfer of ownership of the vehicle for value, including conduct intended to coordinate viewings, inspections, test drives, or otherwise facilitate a any such transaction.
3. Objective Enforcement Tools; Rebuttable Presumption.
To improve clarity and enforceability, the Ordinance provides that enforcement may consider the totality of circumstances and includes an objective rebuttable presumption of Vehicle Commercial Activity where the same vehicle is parked or left standing in the public right-of-way within a one-thousand (1,000) foot radius for more than seventy-two (72) consecutive hours, unless credible evidence demonstrates a lawful purpose unrelated to facilitating a commercial transaction.
4. Safe Harbor Defense for Limited Local Activity.
The Ordinance establishes a narrow safe harbor defense, in order to minimize impacts to City residents who may occasionally sell a personally owned vehicle in proximity to where it is ordinarily kept. The safe harbor would apply when the vehicle is parked within one- tenth (0.1) mile of the vehicle’s registered owner address and is otherwise lawfully parked, complies with all other applicable parking restrictions (including posted time limits and curb markings), and does not create a traffic or pedestrian safety hazard. The safe harbor 55575.18100\44646701.1
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includes limitations intended to prevent abuse, including limitations on multiple vehicles associated with the same registered owner address and time limitations.
5. Relationship to Existing Parking Regulations.
The Ordinance is intended to supplement, and not limit, the City’s existing parking authorities, including the City’s ability to establish parking prohibitions and time limits through authorized signage pursuant to Palm Springs Municipal Code Section 12.32.010 and related provisions. Staff anticipates that, depending on conditions in particular neighborhoods, a combination of existing sign-based tools and the proposed Ordinance may be appropriate.
6. Enforcement.
The Ordinance contemplates enforcement by peace officers or code enforcement officers of the City. Violations may be enforced through administrative citation pursuant to the City’s administrative citation procedures set forth in Chapter 1.06 of the Palm Springs Municipal Code. Each day a violation continues constitutes a separate violation. Any vehicle removal or towing is expressly limited to the extent authorized by state law and applicable City policies and procedures.
Staff believes the proposed Ordinance provides a balanced approach to address persistent impacts on residential parking and public safety, while minimizing unintended impacts on residents who occasionally sell a vehicle near their home. The safe harbor is intended to provide narrow and objective pathways for limited activity while preventing repeated, extensive, or extended use of the public right-of-way for commercial purposes.
ENVIRONMENTAL ASSESSMENT:
The proposed ordinance is not a project subject to the California Environmental Quality Act (“CEQA”). (State CEQA Guidelines, § 15060(c)(3).) Section 15378 of the State CEQA Guidelines provides that organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment do not qualify as a project subject to CEQA. Here, the proposed ordinance constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment because it establishes regulations governing vehicle commercial activity in the public right-of-way. Accordingly, the proposed ordinance is not a project subject to CEQA.
Even if the proposed ordinance does qualify as a project subject to CEQA, it would be exempt from CEQA because it can be seen with certainty that there is no possibility that the proposed action may have a significant effect on the environment for the same reasons referenced above. (State CEQA Guidelines, § 15061(b)(3).) 55575.18100\44646701.1
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ALIGNMENT WITH STRATEGIC PLANNING:
This agenda item aligns with the City Council’s goal of focusing on items that impact quality of life by promoting traffic and pedestrian safety and protecting the reasonable availability of residential curb parking.
FISCAL IMPACT:
Fiscal impacts are anticipated to be minimal and primarily related to staff time for enforcement and administration of the hardship permit process. Any administrative citation revenue is not intended as a funding source and is dependent on compliance and enforcement activity.
REVIEWED BY:
City Attorney: Jeffrey S. Ballinger
City Manager: Scott Stiles
ATTACHMENTS:
A. Ordinance adding Section 12.28.055 to the Palm Springs Municipal Code Regulating Vehicle Commercial Activity in the Public Right-of-Way.