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City Council Staff Report
April 3, 2020
Agenda Item No. 1
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Grace K. Leung, City Manager - 949-644-3001,
gleung@newportbeachca.gov
PREPARED BY: Seimone Jurjis, Community Development Director
PHONE: 949-644-3282
TITLE: Emergency Ordinance No. 2020-001: Prohibiting the Issuance of Any
New Short -Term Lodging Permit and/or the Rental of a Lodging Unit
for a Short -Term, to Any Person, Except a Medical Professional or
Emergency Responder
ABSTRACT:
For City Council's consideration is a temporary ban on the issuance of any new short term
lodging permit and/or the rental of any lodging unit, for less than 30 consecutive days, to
any person other than a medical professional or emergency responder during the COVID-
19 emergency.
RECOMMENDATION:
a) Find this action exempt from the California Environmental Quality Act ("CEQA")
pursuant to Sections 15269(c) (the activity is necessary to prevent or mitigate an
emergency), 15060(c)(2) (the activity will not result in a direct or reasonably
foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity
is not a project as defined in Section 15378) of the CEQA Guidelines, California Code
of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting
in physical change to the environment, directly or indirectly; and
b) Pursuant to City of Newport Beach Charter Section 412, Adopt Emergency Ordinance
No. 2020-001, An Ordinance of the City Council of the City of Newport Beach,
California, Prohibiting. (1) the Issuance of any New Short -Term Lodging Permit
Pursuant to Newport Beach Municipal Code Chapter 5.95, and/or (2) the Rental of a
Lodging Unit, for a Period of Thirty (30) Consecutive Days or Less to Any Person,
Except a Medical Professional or Emergency Responder Coming to the City of
Newport Beach to Aid with the COVID-19 Outbreak.
FUNDING REQUIREMENTS:
The City collects Transient Occupancy Tax on all short-term rentals. This revenue will be
reduced during the prohibition period.
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Emergency Ordinance No. 2020-001: Prohibiting the Issuance of Any New Short -Term
Lodging Permit and/or the Rental of a Lodging Unit, for a Short -Term, to Any Person
Other than a Medical Professional or Emergency Responder
April 3, 2020
Page 2
Short-term lodging (STL) is the rental of residential units for 30 consecutive days or less. The
rental of residential units for short-term use is prevalent in Newport Beach with 1,545 active
STL permits. These units are concentrated in densely populated residential districts of the
City, which has resulted in renters living closely next to residents.
With the worldwide outbreak of COVID-19, a State of Emergency has been declared at the
federal, state and City levels to combat this global pandemic. Of particular concern is that
COVID-19 appears to transmit easily, especially in group settings, and slowing the spread is
crucial to protect the ability of healthcare provides to handle the influx of new patients and
safeguard public health and safety. Therefore, the Governor's Stay at Home order, which
directs all individuals in the State to stay home except for essential functions, is especially
critical.
In this environment, continuous turnover of renters in STL units creates a risk that COVID-19
will spread throughout the City, especially given the high number of STL units and the dense
residential neighborhoods where they are located. To ensure the health and safety of the
community and members of the public, and to help the slow the spread of COVID-19, staff
has drafted the attached emergency ordinance to prohibit the issuance of any new short-term
lodging permits and prohibit STL activity during the term of the emergency. Any renter
currently occupying a STL unit would be allowed to continue to occupy a STL unit, but must
end occupancy on or before April 10, 2020.
In case hotel or motels have temporarily closed during the pandemic, a STL unit may be
necessary to house medical professionals or emergency responders that have been called
in to support doctors, hospitals or emergency agencies. The ordinance exempts the ban on
STL activity for those units that are rented to the medical professional or emergency
responder if the property holds a valid STL permit.
ENVIRONMENTAL REVIEW:
Find this action exempt from the California Environmental Quality Act ("CEQA") pursuant to
Sections 15269(c) (the activity is necessary to prevent or mitigate an emergency),
15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical
change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section
15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter
3, because it has no potential for resulting in physical change to the environment, directly or
indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (24 hours in advance of the
meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A — Emergency Ordinance No. 2020-01
Attachment B — Correspondence
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