CITY COUNCIL STAFF REPORT
DATE: JUNE 24, 2026 BUSINESS & LEGISLATIVE
SUBJECT: AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING VARIOUS PROVISIONS OF CHAPTER 5.25 OF THE CITY
OF PALM SPRINGS MUNICIPAL CODE REGARDING VACATION
RENTALS, AMENDING SECTION 2.50.080 REGARDING APPEALS TO
THE ADMINISTRATIVE APPEALS BOARD, AND ADDING SECTION
3.24.085 APPLYING CALIFORNIA’S SHORT TERM RENTAL
FACILITATOR ACT OF 2025 TO THE CITY
FROM: Scott C. Stiles, City Manager
BY: Special Program Compliance
SUMMARY:
On October 22, 2025, staff presented the first reading of Ordinance No. 2118, which amended Chapter 5.25 of the Palm Springs Municipal Code (PSMC) by removing the upcoming reduction of annual contract stays for legacy operators. At that meeting, staff also presented recommendations from the Administrative Appeals Board (AAB) and Vacation Rentals Owners and Neighbors (VRON). The City Council directed staff to return with proposed amendments for consideration and adoption.
RECOMMENDATION:
Waive the reading of text in its entirety, read by title only, and introduce for first reading an Ordinance entitled, “AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING VARIOUS PROVISIONS OF CHAPTER 5.25 OF THE CITY
OF PALM SPRINGS MUNICIPAL CODE REGARDING VACATION RENTALS, AMENDING SECTION 2.50.080 REGARDING APPEALS TO THE ADMINISTRATIVE APPEALS BOARD, AND ADDING SECTION 3.24.085 APPLYING CALIFORNIA’S SHORT TERM RENTAL FACILITATOR ACT OF 2025 TO THE CITY”.
BACKGROUND:
On October 22, 2025, staff presented Ordinance No. 2118, which amended Chapter 5.25 by eliminating the then-upcoming reduction of contract stays allowed annually for legacy vacation rental permit holders. At that time, staff also evaluated recommendations from the AAB and VRON to determine whether they could be implemented administratively or
City Council Staff Report
June 24, 2026 -- Page 2
Ordinance Restating Chapter 5.25 Vacation Rentals and 2.50.080 Administrative Appeals 1 4
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required ordinance amendments. These recommendations are included as Attachment B.
STAFF ANALYSIS:
Administrative Appeals Board (AAB) Recommendations:
In June 2025, the AAB submitted recommendations for updates to the vacation rental ordinance. Staff presented its analysis to the AAB on August 13, 2025, outlining how existing policies and procedures address most recommendations.
Staff determined that all AAB recommendations may be implemented administratively, except those related to rental platforms and property management companies, which require ordinance amendments.
In 2025, the California Legislature enacted Senate Bill 346, establishing the Short-Term Rental Facilitator Act of 2025 (Government Code §50990 et seq.). The Act authorizes cities to adopt local provisions requiring rental platforms and facilitators to provide identifying information and display permit numbers.
Staff recommends incorporating these provisions into the Palm Springs Municipal Code, in order to:
Formally adopt the Short-Term Rental Facilitator Act within Palm Springs Require rental platforms and property managers, upon request, to provide:
Property address (including nine-digit ZIP code)
Assessor’s Parcel Number (if needed)
Listing URL and limited identifying details
Require display of City-issued permit numbers on all listings
Staff believes that these additional measures will enhance enforcement, improve transparency, and support compliance without altering the existing permitting framework.
For those recommendations that can be accomplished administratively, City staff will work with the City Attorney’s Office to craft administrative regulations to implement those recommendations.
VACATION RENTAL OWNERS AND NEIGHBORS (VRON) RECOMMENDATIONS:
VRON submitted thirteen proposed modifications. Staff supports nine of these, as outlined in Attachment B. These staff-supported modifications are analyzed in Attachment B and are contained in the accompanying ordinance.
The four remaining (non-staff-supported) items are summarized below:
City Council Staff Report
June 24, 2026 -- Page 3
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VRON Recommendation Staff Position
Eliminate requirement that all
adult occupants sign the
Statement of Rules and
Regulations, limiting signature to
the Responsible Renter.
Not recommended. Requiring acknowledgment by all adult
occupants supports enforceability and compliance. Staff is pursuing administrative measures to streamline execution through digital means.
Eliminate requirement to post the
Registration Certificate and
applicable operational conditions
on-site.
Not recommended. On-site posting requirements are
reasonably related to enforcement and public
accountability.
Expand AAB discretion in
adjudicating violations.
Not recommended. The current ordinance establishes
objective standards and enforcement criteria that ensure consistency, due process, and defensibility.
Exclude bookings associated with
declared emergencies or
evacuations from contract stay
limitations.
Not recommended. Such determinations are appropriately
addressed on a case-by-case basis to ensure consistency with public safety considerations and program integrity.
For example, the January 2025 Los Angeles fire had a
total of 23 contract stays submitted, of which seven met criteria for approval.
ENVIRONMENTAL ASSESSMENT:
This Ordinance is not subject to the California Environmental Quality Act (Public Resources Code Section 21000 et seq.) pursuant to Section 15060(c)(2) and 15060(c)(3) of the State Guidelines, because the Ordinance will not result in a direct or reasonably foreseeable indirect physical change in the environment and is not a "project," as that term is defined in Section 15378 of the State Guidelines. In addition, the City Council also determines this Ordinance consists of regulations intended to ensure that the incidental short term rental use of residential property remains an ancillary and secondary use of residential property in the City and thereby preserve the residential character of the City's single- family and multi-family neighborhoods as identified in the City's adopted General Plan, and its concomitant Environmental Impact Report. Thus, to the extent there is any environmental impact from the adoption of this Ordinance, the City Council finds that the Environmental Impact Report for the adopted General Plan is the controlling environmental document.
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the following City Council Strategic Plan Broad Goal: Economic Development.
City Council Staff Report
June 24, 2026 -- Page 4
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FISCAL IMPACT:
There is no fiscal impact with the proposed modifications. Any incremental administrative workload will be absorbed within existing staff capacity. No new appropriations are required.
REVIEWED BY:
Department Director: Veronica Goedhart
Assistant City Manager: Teresa Gallavan
City Manager: Scott Stiles
ATTACHMENTS:
A. Draft Ordinance
B. VRON Recommendations
C. Administrative Regulation Table