HomeMy WebLinkAboutSS3 - Update on Short Term Lodging - CorrespondenceReceived After Agenda Printed
June 11, 2019
Item No. SS3
From: Carmen Rawson carmen rawson@att.net3
Sent: Tuesday, June 1.1, 2019 9:1.3 AM
To: Jurjis, Seimone
Cc: Dept - City Council
Subject: Comments to Municipal Code Chapter 5.95 Short Term Lodging Permit
Attachments: City Council Mtg 2019-05-11_Comments to MC Chapter 5.95.pdf
Good morning Seimone,
Please refer to the attached file with some comments to the subject regulation. I believe it is important to define "Guest"
and "Host" as the lodging contracts are signed by said parties.
As residents of Newport Beach owning property with a short term lodging permit since 1992 my husband Ken and I have
used throughout the years the services of a local property management company (defined as "Agent") to advertise, book
and manage the lodging units we have.
Before the proliferation of internet "Hosting Platforms" (i.e. Airbnb, HomeAway [VRBG], etc) if an Agent booked a lodging
unit to a "bad"Guest, the Guest name was added to the "Do Not Re -rent" blacklist. That was the"tool" used to avert the
type of Guest we do not want in our properties - in our city (noisy, loud, too large of a group, etc).
With the reality of having to use Hosting Platforms, to be able to book a lodging unit, the "Guest blacklist" does not work
as it used to because the Host (either an Owner or an Agent) does not have total control of the booking transaction
process as many rules are set up by the Hosting Platforms (sometimes independent of what a Host would want or
independent of the local rules and regulations), Because the lodging units are "Rated" by "Guest Reviews", in the Hosting
Platforms, some Agents acting as Hosts may care more about having "good reviews" from guests rather than truly
enforcing the "house rules". We, the owner of lodging units having an Agent as the Host, have experienced this.
Few years ago we had a very large/loud group in one of our lodging units. We live at the property so we called the Agent
to come by the property and take action (as they were the Host who had a signed lodging contract with the Guest). The
Agent showed up and did nothing. I personally took action by asking the Guest to remove visitors from the unit and to
quiet down. 1 had to do that several times and what the Agent worried about was the "bad review" the Guest finally left in
the Hosting Platform.
Why am I bringing up this issue? Article 5.95.025 Agency states on the last sentence "... failure of an agent to comply
with this chapter shall be deemed non-compliance by the owner...". Additionally, Section 5.95.050
Violations/Penalties/Revocation focuses on holding the property owner liable, and not the Host.
I understand and agree that as Owner I have responsibility to comply with the Municipal Code regulations. In addition to
that I strongly believe Agents, when acting as Hosts, should also be held accountable because they are the legal party of
a lodging contract with a Guest. I am requesting herein for you to take this into consideration as part of updating Chapter
5.95 Short Term Lodging Permit.
Sincerely,
Carmen Rawson
June 11, 2019
Comments to NB MC Chapter 5.95 SHORT TERM LODGING PERMIT
5.95.005 Purpose and Findings:
In Article C., first line, remove the semicolon after the word "permanent'
5.95.010 Definitions:
In Article A. "Floor Area, Gross" paragraph a. only mentions "single unit and two-unitdwellings",
however, there are in the city multi -unit (3 or more units) dwellings with short term lodging permits.
Suggest adding a definition for "Guest" A person who signs a booking transaction contract to occupy a
lodging unit on a short term basis. Also referred to as transient user, traveler
Suggest adding a definition for "Host" A person who signs a booking transaction contract to provide a
Guest access to a lodging unit on a short term basis. The Host could be an owner, an agent, or an
intermediary.
5.95.050 Conditions:
In Article A.1., first line, remove the comma after the word "overnight'
In Articles A.I. through A.S., A.9., and A.11., first line of each, after the words "The owner" add the
words ' and the Host when other person than the owner,"
In Article A.9., how is the City planning to enforce the last sentence's requirement of "maximum of 2
vehicles per unit'?
Note the last two Articles of this Section are labeled "12", change the last one to "13"
5.95.055 Agent and Hosting Platform Responsibilities:
In Article A.I. add the word "number' after the word "phone
In Article B., first line, add the word "shalt' before the words "be responsible"
5.95.060 Violations/Penalties/Revocations:
In Article D., the line before last, after the words "calculation of the" replace the word "three with
"two"
Received After Agenda Printed
June 11, 2019
Item No. SS3
From: Jurjis, 5eimone
Sent: Monday, June 10, 2019 5:24 PM
To: Brown, Leilani
Cc: Nelson, Jennifer
Subject: Fwd: Short Term Lodging
Attachments: image002 jpg; ATT00001.htm; image004 jpg; ATT00002.htm; image0O9 jpg;
ATT00003.htm; ima9e010 jpg; ATTO0004.htm; image012jpg; ATT00005.htm; LUGO.docx,
ATT00006.htm
Comments to study session.
5eimone
Begin forwarded message:
From: Craig Batley <c_batlev@burrwhite.com>
Date: lune 10, 2019 at 5:14:01 PM PDT
To: "Navarrete, Monique" EMNava rrete new ortbeachca. ova
Cc: "Jurjis, Seimone" rsiuriis@newportbeachca.jqov>, Will O'Neill <onei114newr)ort0@gmaiI.com>, Jeff Edson
<1eff.edsonPhotmail.com>, Diane Dixon Edianebdixon@gmail.com>
Subject: RE: Short Term Lodging
Monique,
Thank you for meeting with me today. As you know, the city staff conducted hours of community meetings, and
submitted revisions in the code addressing vacation rentals a couple years ago. At a city council presentation, after the
presentation, Ed Selich said with his 7 years on the council, he had never received a complaint from anyone on Balboa
Island and saw no reason to make any changes in the code. Discussion ended and NO changes were made. Apparently,
the consensus was, if it is not broken, why fix it. With that sentiment in mind, I think fewer changes the better, but any
changes be targeted.
Ok, with the advent of Airbnb maybe a few things have changed. However, I believe the proposed changes need more
review, than a quick study session provides. For instance, all the references within the new language refer to various
code sections and make it awkward without switching back and forth to look up the referenced code to understand the
full meaning.
I will be speaking at the study session tomorrow to address a few items during my 3 minutes, but more time is needed
to align changes with the realities of the those operators who manage the vacation units on a day to day basis. As you
know Burr White Realty has always adhered to the city codes, especially the noise restrictions and TOT quarterly
reporting, with accompanying explanatory excel spread sheet (which no operator provides).
Additionally, the city attorney drafted a suggested NEWPORT BEACH LOUD OR UNRULY GATHERING ORDINANCE
ADDENDUM (attached) for use of all leases and STL agreements with tenants and guests residing on the peninsula or
Balboa Island. Using this addendum enables an owner or operator to mirror the exact language in the ordinance, by
attaching this city draft to leases and STL agreements. I propose the city drafts another addendum for STL properties to
include similar language to include the following:
6. True Representation of Occupancy. OPPERATOR manages homes that are privately owned
and operated. The owners who make their homes available through OPPERATOR request that they
are marketed and rented only to vacationing families. If OPPERATOR finds that Occupant (guest)
has made a false representation of occupants, or the sole occupants at the premises are under the
age of 26, or that there are any unsupervised minors at the premises, Occupant (guest) is subject to
immediate termination of tenancy with no refund of rental monies. Each home has a sleeping
occupancy bed limit set by the owner. If Occupant (guest) exceeds this bed limit for any reason,
Occupant (guest) will be considered in violation of this rental agreement and will be charged a
minimum fine of $100.00 OR MORE per person per night. In addition, occupancy limits for day usage
for Occupant's guests and invitees are limited to one and a half (1 1/2) times the premises'
occupancy or bed limit. If Occupant (guest) desires to exceed this limit for a specific purpose (family
gathering or holiday celebration), Occupant (guest) must put such request in writing with total number
of guests specified.
17. Peaceful and Lawful Occupation. The Occupant, their guests and invitees, shall not disturb,
annoy, endanger or interfere with other occupants of the rented premises or the neighbors of the
rented premises, nor shall the Occupant, their guests and invitees, use the premises for any unlawful
purposes, including but not limited to, using, manufacturing, selling, providing, storing or transporting
illicit drugs or other contraband, or violate any Federal, State or local law or ordinance, including, but
not limited to, the use of alcohol by minors or commit waste or a nuisance upon the rented premises.
The Occupants (guests) shall be responsible to pay any fines, assessments or charges imposed by
any public authorities due to any violation(s) of any rules, regulations, laws or ordinances by the
Occupant (guests), their guests or invitees. Should any Occupant, their guests and invitees, cause a
disturbance resulting in police action, this rental may be terminated immediately, and no refund of
rental monies shall be made.
This language enables an operator to remove any guest with no advance notice for violating the agreement, since STL
stays are LESS than 30 days and are defined in the State municipal code as Proprietor—Guest relationships, and can be
evicted by "hoteliers" for disorderly conduct (like rock stars) with no notice.
Lastly, I am suggesting council appoint a onetime committee of myself, staff (Monique), Jeff Herdman, and Wil O'Neill to
meet, discuss and review these proposed changes into order to produce a document that efficiently accomplishes the
purpose for the update
NEWPORT BEACH LOUD OR UNRULY GATHERING ORDINANCE
ADDENDUM
This document is an Addendum and is part of the Rental/Lease Agreement, dated <CurrentDate>
between Beachwalk Inc. DBA Burr White Realty [Agent For Owner] and <Customer_FUIIName>
[Resident(s)] for the premises located at <Unit_Addressl> Newport Beach, CA <Unit_PostalCode> Unit
Code: <Unit_Code> (the "Premises").
Whereas, the Premises is located in the City of Newport Beach and is subject to the City of Newport
Beach Loud or Unruly Gathering Ordinance as codified in Chapter 10.66 of the Newport Beach Municipal
Code ("Ordinance"); and
Whereas, under the Ordinance, "Owner(s)" and "Responsible Person(s)" may be liable for civil fines of
between $500 and $3,000 plus penalty and interest as well as other associated costs; and Whereas, the
City Council for the City of Newport Beach has legislatively declared that a Loud or Unruly Gathering is a
public nuisance and contrary to the public health, safety, general welfare, and quiet enjoyment of
residential property; and
Whereas, the Ordinance defines a "Loud or Unruly Gathering" as a gathering of eight (S) or more persons
on any Residential Unit for a social occasion or other activity upon which loud or unruly conduct occurs
and results in a public nuisance or a threat to the public health, safety, general welfare, or quiet
enjoyment of residential property or nearby public property; and
Whereas, the Ordinance defines, "loud or unruly conduct" to include, without limitation, any or all of the
following: (a) excessive noise or traffic, (b) obstruction of public streets by crowds or vehicles, (c)
obstruction of rights of way by people or vehicles, (d) public drunkenness, (e) the service of alcohol to
Minors, (f) possession and/or consumption of alcohol by Minors, (g) assaults, batteries, fights, domestic
violence or other disturbances of the peace, (h) vandalism, (i) litter, or Q) urinating or defecating in public.
NOW, THEREFORE, IN CONSIDERATION OF the promises and covenants contained herein and other
good and valuable consideration, the receipt of which is hereby acknowledged, Resident and Owner
agree as follows:
1. Resident understands and agrees that Resident will not violate the Ordinance, intentionally or
unintentionally, while in possession or control of the Premises.
2. Resident understands and agrees that fines or fees assessed under the Ordinance may be levied on
Resident afterjust one Loud or Unruly Gathering under the Ordinance:
3. Nothing herein is deemed to be authorization of or consent by Owner for any Loud or Unruly Gathering
of Resident or Resident's guests or invitees in violation of the Ordinance.
4. Any violation, specifically including a first violation, of the Ordinance by Resident or Resident's guest or
invitees while Resident is in possession of the Premises shall be a material and incurable breach of the
Agreement and Owner, at its sole option, may terminate the Agreement as a result of said violation of the
Ordinance.
5. Except as modified in this Addendum, the terms of the Agreement, and all attachments to the
Agreement are and shall remain the same and in full force and effect.
The undersigned Resident(s) acknowledge(s) having read and understood the foregoing
DATE: RESIDENTIGUEST SIGNATURE:
{(Dte_es_:signerl:date}} {(Sig_es_:signertsignature}}