HomeMy WebLinkAbout17 - Review and Consider Extending the Prohibition on Short -Term Lodging ActivityTO:
FROM:
CITY OF
NEWPORT BEACH
City Council Staff Report
May 12, 2020
Agenda Item No. 17
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
Grace K. Leung, City Manager - 949-644-3001,
gleung@newportbeachca.gov
PREPARED BY: Seimone Jurjis, Community Development Director,
sjurjis@newportbeachca.gov
PHONE: 949-644-3282
Emergency Ordinance Nos. 2020-003 and 2020-004: Review and
TITLE: Consider Extending the Prohibition on Short -Term Lodging Activity
ABSTRACT:
For City Council's consideration is a review of Emergency Ordinance 2020-1 adopted on
April 3, 2020 prohibiting short-term lodging ("STL") activity until May 20, 2020 or sooner due
to the outbreak of COVID-19. As alternatives, the City Council may want to consider two
other emergency ordinances for possible adoption: 1) extending the prohibition of renting a
STL unit beyond May 20, 2020 to a date agreed upon by the City Council; or 2) allow the
rental of STL units for a minimum number of consecutive nights set by the City Council.
Exceptions would continue to be provided for medical professionals or emergency
responders coming to aid with the COVID-19 outbreak.
RECOMMENDATION:
a) Find this action exempt from the California Environmental Quality Act ("CEQA")
pursuant to Section 15269(c) (the activity is necessary to prevent or mitigate an
emergency), Sections 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) Review the current status of Emergency Ordinance No. 2020-001 and take no further
action, allowing the Emergency Ordinance to expire on May 20, 2020 or sooner; or
c) Pursuant to City of Newport Beach Charter Section 412, waive full reading, direct the
City Clerk to read by title only, and adopt Emergency Ordinance No. 2020-003, An
Emergency Ordinance of the City Council of the City of Newport Beach, California,
Extending the Restrictions Set Forth in Emergency Ordinance No. 2020-1 Prohibiting.-
(1)
rohibiting.(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 Any Lodging Unit, for a Period
of Thirty (30) Consecutive Days or Less, to Any Person Other than a Medical
Professional or Emergency Responder Coming to the City of Newport Beach to Aid
with the COVID-19 Outbreak; or
17-1
Emergency Ordinance No. 2020-003: Review and Consider Extending the Prohibition
on Short -Term Lodging Activity
May 12, 2020
Page 2
d) Pursuant to City of Newport Beach Charter Section 412, waive full reading, direct the
City Clerk to read by title only, and adopt Emergency Ordinance No. 2020-004, An
Emergency Ordinance of the City Council of the City of Newport Beach, California,
Extending the Restriction Set Forth in Emergency Ordinance No. 2020-001 Prohibiting
the Issuance of Any New Short Term Lodging Permit Pursuant to Newport Beach
Municipal Code Chapter 5.95 and Requiring a Minimum Night Stay for All Short Term
Lodging Rentals.
FUNDING REQUIREMENTS:
The City collects Transient Occupancy Tax on all short-term rentals. This General Fund
revenue will be reduced during the prohibition period.
DISCUSSION:
On April 3, 2020 the City Council adopted Emergency Ordinance No. 2020-1 (Attachment
A) restricting STL permitting and activity to renting of residential units for 30 days or less.
Renting a unit for more than 30 days is allowed and not prohibited by the emergency
ordinance.
In case hotel or motels have temporarily closed during the pandemic, an 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 emergency ordinance
exempts the ban on STL activity for those units that are rented to the medical
professionals or emergency responders if the property holds a valid STL permit.
The basis for adopting the emergency ordinance was the continuous turnover of renters
in STL units, which creates a risk that COVID-19 will spread throughout the City,
especially given the high number of STL units and the dense residential neighborhoods
they are in.
To date the City has 1,530 active short-term lodging permits.
FnfnrcPment
Since the emergency ordinance went into effect, the Code Enforcement and Revenue
Divisions are proactively enforcing the prohibition. Staff notified all the STL permit holders
that an emergency ordinance was adopted and in effect. Staff also notified the two larger
internet platforms, Expedia Group (owner of Vrbo) and Airbnb of the emergency
ordinance. Both platforms responded that they notified their users of the prohibition. Staff
also reviewed the postings on the internet platforms and communicated directly through
the platform with each individual advertising their unit, that renting STL units for 30 days
or less is prohibited. Many responded back that they were blocking any reservations
during the ban, while others continued to advertise their unit as available for medical
personnel and emergency responders.
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Emergency Ordinance No. 2020-003: Review and Consider Extending the Prohibition
on Short -Term Lodging Activity
May 12, 2020
Page 3
At the time this staff report was written, Code Enforcement staff received 65 complaints
on alleged violations of the emergency ordinance. Of the complaints investigated, staff
confirmed 11 violations. Each property owner in violation of the emergency ordinance
received a $1,000 fine as per the emergency ordinance. One property owner has violated
the ban on four different occasions. Therefore, their STL permit is subject to revocation
through an administrative hearing.
Other Possible Options to Consider
The City Council may want to consider two other options. The first option for the City
Council's consideration is adopting Emergency Ordinance 2020-003 (Attachment B).
This emergency ordinance is very similar to the first emergency ordinance adopted by the
City Council, but it extends the expiration of prohibition to a date beyond May 20, 2020.
If the City Council decides to adopt this emergency ordinance, then staff requests the City
Council provide a specific date that the emergency ordinance will expire.
The second option for the City Council to consider is adopting Emergency Ordinance
2020-004 (Attachment C). This emergency ordinance allows the renting of STL units for
a minimum number of consecutive nights set by the City Council. For example: If the
City Council decides that the minimum number is four consecutive nights, then it would
be a violation of the emergency ordinance to rent the STL unit for three or less
consecutive nights. The purpose of establishing a minimum night stay is to discourage
and prevent a rapid turnover of persons occupying STL units, which are interwoven
throughout the residential districts. This emergency ordinance continues to ban the
issuance of any new STL permits. Staff believe there are already many STL permits in
the City, and there is no need to allow further expansion of the STL permit program while
the City is in a declared emergency.
Both proposed emergency ordinances continue to allow a medical professional or
emergency responder to rent an STL unit for any length of time.
If any of the two emergencies ordinances are adopted they shall become effective
immediately and continue until: (a) a date agreed upon by the City Council; (b) the State
of Emergency is terminated; (c) the City's local emergency is terminated by the City
Council; or (d) the emergency ordinance is repealed.
Ad Hoc Committee on Short Term Lodaina
A City Council formed ad hoc committee for short term lodging has been reviewing the
City's current municipal code regulations. The goal of the ad hoc committee is to return
to the City Council with recommendations for potential changes to the City's municipal
code that will assist both residents and operators of STL units. The committee intends to
return on May 26, 2020 with municipal code recommendations that will affect the internet
platform activity. The committee will then return later in the summer with broader
recommendations and changes that will affect how STLs operate.
17-3
Emergency Ordinance No. 2020-003: Review and Consider Extending the Prohibition
on Short -Term Lodging Activity
May 12, 2020
Page 4
ENVIRONMENTAL REVIEW:
Find this action exempt from the California Environmental Quality Act ("CEQA") pursuant
to Section 15269(c) (the activity is necessary to prevent or mitigate an emergency),
Sections 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. 2020-001
Attachment B
— Emergency Ordinance No. 2020-003
Attachment C
— Emergency Ordinance No. 2020-004
17-4
I_rILffiflai!i1=1LNk&I
EMERGENCY ORDINANCE NO. 2020-1
AN EMERGENCY 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 ANY LODGING UNIT, FOR A PERIOD OF
THIRTY (30) CONSECUTIVE DAYS OR LESS, TO ANY
PERSON OTHER THAN A MEDICAL PROFESSIONAL OR
EMERGENCY RESPONDER COMING TO THE CITY OF
NEWPORT BEACH TO AID WITH THE COVID-19
OUTBREAK
WHEREAS, Section 200 of the Charter of the City of Newport Beach ("City") vests
the City Council with the authority to make and enforce all laws, rules and regulations with
respect to municipal affairs subject only to the restrictions and limitations contained in the
Charter and the State Constitution, and the power to exercise, or act pursuant to any and
all rights, powers, and privileges, or procedures granted or prescribed by any law of the
State of California;
WHEREAS, on January 31, 2020, the United States Secretary of Health and
Human Services announced a nationwide public health emergency, in response to the
COVID-19 outbreak;
WHEREAS, on March 4, 2020, Governor Gavin Newsom declared a State of
Emergency to make additional resources available, formalize emergency actions already
underway across multiple state agencies and departments, and help the state prepare for
broader spread of COVID-19 ("State of Emergency);
WHEREAS, on March 11, 2020, the World Health Organization declared the
COVID-19 outbreak a pandemic;
WHEREAS, on March 15, 2020, Governor Newsom called for all bars, wineries,
nightclubs and brewpubs to close throughout the state, urged all seniors and people with
chronic health conditions to isolate themselves at home, and for restaurants to reduce
occupancy by half to keep people farther away from each other;
WHEREAS, on March 15, 2020, in response to the COVID-19 outbreak, Newport
Beach City Manager Grace Leung, who is the Director of Emergency Services ("Director
of Emergency Services") for the City, issued a Proclamation of Local Emergency
("Proclamation");
WHEREAS, on March 18, 2020, the Newport Beach City Council ratified the
Proclamation and authorized the Director of Emergency Services to take certain actions
to protect the health, safety, and welfare of the public;
17-5
Emergency Ordinance No. 2020-1
Page 2 of 5
WHEREAS, on March 19, 2020, Governor Newsom issued Executive Order N-33-
20, requiring all individuals living in the State of California to stay home or at their place
of residence, except as needed to maintain continuity of operations of the federal critical
infrastructure sectors ("Stay at Home Order");
WHEREAS, on March 19, 2020 the Federal Cybersecurity and Infrastructure
Security Agency issued guidance identifying 14 critical infrastructure sectors whose
workers provide services and functions that are essential to support a strong response to
the COVID-19 outbreak;
WHEREAS, on March 29, 2020, President Donald Trump announced that he
would be extending the social distancing guidelines through April 30, 2020;
WHEREAS, COVID-19 has been detected in hundreds of thousands of people
worldwide, including, as of April 2, 2020, 60 cases in the City, and is primarily spread from
person to person;
WHEREAS, COVID-19 is easily transmitted, especially in group settings, and it is
essential that the spread of the virus be slowed to protect the ability of public and private
health care providers to handle the influx of new patients and safeguard public health and
safety;
WHEREAS, this worldwide outbreak of COVID-19 is emerging and rapidly
evolving;
WHEREAS, since the declaration of the State of Emergency, issuance of the
Proclamation and issuance of the Stay at Home Order, owners of lodging units in the City
of Newport Beach have continued to rent lodging units for short durations;
WHEREAS, the rental of lodging units for a short term jeopardizes the health,
safety, and welfare of the public and residents of the City because: (a) there are over
1,500 lodging units in the City that have short term lodging permits; (b) the short term
lodging units, which have permits, are interwoven throughout the City's residential
districts; (c) the Stay at Home Order provides that " ... all individuals living in the State
of California [are] to stay home or at their place of residence, except as needed to
maintain continuity of operations of the federal critical infrastructure"; and (d) the
continuous turnover of persons occupying short term lodging units, which are interwoven
throughout the residential districts, creates a risk that COVID-19 will spread throughout
the City and beyond;
WHEREAS, Charter Section 412 provides that an ordinance necessary to
preserve the public peace, health or safety, may be introduced and adopted at one and
the same meeting if passed by at least five affirmative votes; and
17-6
Emergency Ordinance No. 2020-1
Page 3 of 5
WHEREAS, this emergency ordinance is necessary to limit the spread of COVID-
19 and is the least restrictive way to help ensure that the health, safety, and welfare of
the public is protected.
NOW, THEREFORE, the City Council of the City of Newport Beach ordains as
follows:
Section 1: The City Council for the City of Newport Beach hereby finds and
declares that this emergency ordinance is necessary to limit the spread of COVID-19 and
to protect the health, safety and welfare of the public including, but not limited to, the
residents of the City of Newport Beach because there are over 1,500 short term lodging
units in the City of Newport Beach, which are interwoven throughout the residential
districts, and the continuous turnover of occupants at these short term lodging units
creates a risk that COVID-19 will spread throughout Newport Beach and beyond.
Section 2: As long as this emergency ordinance is in effect, no new permit for a
short term lodging unit, which permit is required prior to renting a lodging unit on a short
term basis by Chapter 5.95 of the Newport Beach Municipal Code ("NBMC), shall be
issued by the City of Newport Beach. For purposes of this emergency ordinance, the
definition of: (a) "short term" shall have the same meaning as Section 5.95.010 (C) of the
NBMC; and the definition of "lodging unit" shall have the same meaning as Section
5.95.010 (A) of the NBMC.
Section 3: As long as this emergency ordinance is in effect or until May 20,
2020, whichever occurs first, it shall be unlawful for any owner, as defined in Section
5.95.010 (B) of the NBMC, or agent of an owner, to rent, let, advertise for rent, or enter
into an agreement for the rental of any lodging unit, where the occupancy would take
place during the time period the emergency is in effect, for a short term. Nothing in this
section shall be construed, however, to bar or preclude an existing permit holder from
renting a lodging unit for a short term to a medical professional or emergency responder
coming to the City of Newport Beach to aid with the COVID-19 outbreak. The owner of
the short-term lodging unit or units is responsible for compliance with the provisions of
this section and the failure of an agent, or any other person or entity to comply with this
section shall be deemed non-compliance by the owner.
Section 4: Any person currently occupying a lodging unit for a short term may
continue such occupancy.
17-7
Emergency Ordinance No. 2020-1
Page 4 of 5
Section 5: A first violation of this emergency ordinance shall be enforceable in
accordance with Chapter 1.05 of the NBMC and the fine shall be one thousand dollars.
A second violation of this emergency ordinance, as determined by a hearing officer in
accordance with Chapter 1.05 of the NBMC, shall be punishable by the suspension of the
short term lodging permit for one year from the date of decision by the hearing officer. A
third violation of this emergency ordinance, as determined by a hearing officer in
accordance with Chapter 1.05 of the NBMC, shall be punishable by the revocation of the
short term lodging permit, and the short term lodging permit holder shall not be eligible to
reapply for a short term lodging permit for one year.
Section 6: The City Manager shall take any and all action to ensure that this
emergency ordinance and the provisions contained herein are given widespread publicity.
Section 7: The City Manager and Director of Emergency Services is hereby
authorized to issue orders and regulations and take such other actions as may be
necessary or appropriate to respond to the COVID-19 outbreak.
Section 8 The recitals provided in this emergency ordinance are true and
correct and are incorporated into the substantive portion of this emergency ordinance.
Section 9: If any section, subsection, sentence, clause or phrase of this
emergency ordinance is for any reason held to be invalid or unconstitutional, such
decision shall not affect the validity or constitutionality of the remaining portions of this
emergency ordinance. The City Council hereby declares that it would have passed this
emergency ordinance and each section, subsection, sentence, clause or phrase hereof,
irrespective of the fact that any one or more sections, subsections, sentences, clauses or
phrases be declared invalid or unconstitutional.
Section 10: The City Council finds and determines that the introduction and
adoption of this emergency ordinance is not subject to 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.
17-8
Emergency Ordinance No. 2020-1
Page 5 of 5
Section 11: This emergency ordinance shall become effective upon its adoption
and shall continue in full force and effect until: (a) May 20, 2020; (b) the State of
Emergency is terminated by proclamation of the Governor of California; (c) the local
emergency proclaimed on March 15, 2020 and ratified by the City Council on March 18,
2020, is terminated by proclamation of the City Council; or (d) such time as this
emergency ordinance is repealed in whole, or in part, by the City Council.
Section 12: The Mayor shall sign, and the City Clerk shall attest to the passage of
this emergency ordinance. The City Clerk shall cause the emergency ordinance, or a
summary thereof, to be published pursuant to City Charter Section 414.
This emergency ordinance was introduced and adopted at a special meeting of the
City Council of the City of Newport Beach held on the 3rd day of April 2020, by the
following vote, to -wit:
AYES: Mayor Will O'Neill, Mavor Pro Tem Bra Avery, Council Member Joy Brenner,
Council Member Diane Dixon, Council Member Duffy Duffield, Council
ber Jeff Herdman
NAYS: None
ABSENT: Council Member Kevin Muldoon
ATTEST:
� r
LEILANI I. BROWN, bTY CLERK
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
A ON C. HARP, OTY ATTORNEY
7
WILL O'NEILL, MAYOR
Q t, FO RSI
17-9
ATTACHMENT B
EMERGENCY ORDINANCE NO. 2020-003
AN EMERGENCY ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF NEWPORT BEACH, CALIFORNIA,
EXTENDING THE RESTRICTIONS SET FORTH IN
EMERGENCY ORDINANCE NO. 2020-1 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 ANY
LODGING UNIT, FOR A PERIOD OF THIRTY (30)
CONSECUTIVE DAYS OR LESS, TO ANY PERSON
OTHER THAN A MEDICAL PROFESSIONAL OR
EMERGENCY RESPONDER COMING TO THE CITY OF
NEWPORT BEACH TO AID WITH THE COVID-19
OUTBREAK
WHEREAS, Section 200 of the Charter of the City of Newport Beach ("City") vests
the City Council with the authority to make and enforce all laws, rules and regulations with
respect to municipal affairs subject only to the restrictions and limitations contained in the
Charter and the State Constitution, and the power to exercise, or act pursuant to any and
all rights, powers, and privileges, or procedures granted or prescribed by any law of the
State of California;
WHEREAS, on January 31, 2020, the United States Secretary of Health and
Human Services announced a nationwide public health emergency, in response to the
COVID-19 outbreak;
WHEREAS, on March 4, 2020, Governor Gavin Newsom declared a State of
Emergency to make additional resources available, formalize emergency actions already
underway across multiple state agencies and departments, and help the state prepare for
broader spread of COVID-19 ("State of Emergency);
WHEREAS, on March 11, 2020, the World Health Organization declared the
COVID-19 outbreak a pandemic;
WHEREAS, on March 15, 2020, Governor Newsom called for all bars, wineries,
nightclubs and brewpubs to close throughout the state, urged all seniors and people with
chronic health conditions to isolate themselves at home, and for restaurants to reduce
occupancy by half to keep people farther away from each other;
WHEREAS, on March 15, 2020, in response to the COVID-19 outbreak, Newport
Beach City Manager Grace Leung, who is the Director of Emergency Services ("Director
of Emergency Services") for the City, issued a Proclamation of Local Emergency
("Proclamation");
17-11
Emergency Ordinance No. 2020-003
Page 2 of 6
WHEREAS, on March 18, 2020, the Newport Beach City Council ratified the
Proclamation and authorized the Director of Emergency Services to take certain actions
to protect the health, safety, and welfare of the public;
WHEREAS, on March 19, 2020, Governor Newsom issued Executive Order N-33-
20, requiring all individuals living in the State of California to stay home or at their place
of residence, except as needed to maintain continuity of operations of the federal critical
infrastructure sectors ("Stay at Home Order");
WHEREAS, on March 19, 2020 the Federal Cybersecurity and Infrastructure
Security Agency issued guidance identifying 14 critical infrastructure sectors whose
workers provide services and functions that are essential to support a strong response to
the COVID-19 outbreak;
WHEREAS, COVID-19 has been detected in millions of people worldwide,
including, as of April 30, 2020, 97 cases in the City, and is primarily spread from person
to person;
WHEREAS, COVID-19 is easily transmitted, especially in group settings, and it is
essential that the spread of the virus be slowed to protect the ability of public and private
health care providers to handle the influx of new patients and safeguard public health and
safety;
WHEREAS, this worldwide outbreak of COVID-19 is emerging and rapidly
evolving;
WHEREAS, since the declaration of the State of Emergency, issuance of the
Proclamation and issuance of the Stay at Home Order, owners of lodging units in the City
of Newport Beach have continued to rent lodging units for short durations;
WHEREAS, the rental of lodging units for a short term jeopardizes the health,
safety, and welfare of the public and residents of the City because: (a) there are over
1,500 lodging units in the City that have short term lodging permits; (b) the short term
lodging units, which have permits, are interwoven throughout the City's residential
districts; (c) the Stay at Home Order provides that "... all individuals living in the State of
California [are] to stay home or at their place of residence, except as needed to maintain
continuity of operations of the federal critical infrastructure"; and (d) the continuous
turnover of persons occupying short term lodging units, which are interwoven throughout
the residential districts, has the potential to create a risk that COVID-19 will spread
throughout the City and beyond;
17-12
Emergency Ordinance No. 2020-003
Page 3 of 6
WHEREAS, Charter Section 412 provides that an ordinance necessary to
preserve the public peace, health or safety, may be introduced and adopted at one and
the same meeting if passed by at least five affirmative votes;
WHEREAS, in furtherance of Governor Newsom's Stay at Home Order and to help
prevent the spread of COVID-19 throughout the residential areas of Newport Beach and
beyond, on April 3, 2020, the City Council adopted Emergency Ordinance 2020-001,
which prohibits the issuance of new short term lodging permits and/or the rental of units
for a short term to any person other than those medical professionals and emergency
responders coming to the City of Newport Beach to aid with the COVID-19 outbreak;
WHEREAS, there is a need to extend the restrictions set forth in Emergency
Ordinance No. 2020-001 until 2020, to help protect the community from the
spread of COVID-19; and
WHEREAS, this emergency ordinance extending the restrictions in Emergency
Ordinance No. 2020-001, for a limited time, is the least restrictive way to help ensure that
the health, safety, and welfare of the public is protected.
NOW, THEREFORE, the City Council of the City of Newport Beach ordains as
follows:
Section 1: The City Council for the City of Newport Beach hereby finds and
declares that this emergency ordinance is necessary to help limit the spread of COVID-
19 and to protect the health, safety and welfare of the public, including, but not limited to,
the residents of the City of Newport Beach because there are over 1,500 short term
lodging units in the City of Newport Beach, which are interwoven throughout the
residential districts, and the continuous turnover of occupants at these short term lodging
units creates a potential risk that COVID-19 will spread throughout the City of Newport
Beach and beyond. The City Council also finds and declares that there are over 1,500
units in the City of Newport Beach that have been issued short term lodging permits,
which exceeds the demand for short term lodging units in the City of Newport Beach that
are necessary to provide temporary housing to medical professionals and emergency
responders coming to Newport Beach to help aid with the COVID-19 outbreak.
Section 2: As long as this emergency ordinance is in effect, no new permits for
a short term lodging unit, which permit is required prior to renting a lodging unit on a short
term basis by Chapter 5.95 of the Newport Beach Municipal Code ("NBMC"), shall be
issued by the City of Newport Beach. For purposes of this emergency ordinance, the
definition of "short term" shall have the same meaning as Section 5.95.010 (C) of the
NBMC; and the definition of "lodging unit" shall have the same meaning as Section
5.95.010 (A) of the NBMC.
17-13
Emergency Ordinance No. 2020-003
Page 4 of 6
Section 3: As long as this emergency ordinance is in effect or until
2020, whichever occurs first, it shall be unlawful for any owner, as defined in Section
5.95.010 (B) of the NBMC, or agent of an owner, to rent, let, advertise for rent, or enter
into an agreement for the rental of any lodging unit, where the occupancy would take
place during the time period the emergency is in effect, for a short term. Nothing in this
section shall be construed, however, to bar or preclude an existing permit holder from
renting a lodging unit for a short term to a medical professional or emergency responder
coming to the City of Newport Beach to aid with the COVID-19 outbreak. The owner of
the short-term lodging unit or units is responsible for compliance with the provisions of
this section and the failure of an agent, or any other person or entity to comply with this
section shall be deemed non-compliance by the owner.
Section 4: Any person occupying a lodging unit as of April 3, 2020, may
continue such occupancy.
Section 5: A first violation of this emergency ordinance shall be enforceable in
accordance with Chapter 1.05 of the NBMC and the fine shall be one thousand dollars.
A second violation of this emergency ordinance, as determined by a hearing officer in
accordance with Chapter 1.05 of the NBMC, shall be punishable by the suspension of the
short term lodging permit for one year from the date of decision by the hearing officer. A
third violation of this emergency ordinance, as determined by a hearing officer in
accordance with Chapter 1.05 of the NBMC, shall be punishable by the revocation of the
short term lodging permit, and the short term lodging permit holder shall not be eligible to
reapply for a short term lodging permit for one year. For any suspension or revocation
referred to in this section, the City shall conduct the hearings in accordance with Section
1.05.080, 1.05.090, and 1.05.110 of the NBMC except that the City shall set the hearing
for consideration by a hearing officer without requiring a request for hearing to be filed or
fine to be paid or deposited and all notices shall be sent to the holder of the short term
lodging permit.
Section 6: The City Manager shall take any and all action to ensure that this
emergency ordinance and the provisions contained herein are given widespread publicity.
Section 7: The City Manager and Director of Emergency Services is hereby
authorized to issue orders and regulations and take such other actions as may be
necessary or appropriate to respond to the COVID-19 outbreak.
Section 8 The recitals provided in this emergency ordinance are true and
correct and are incorporated into the substantive portion of this emergency ordinance.
17-14
Emergency Ordinance No. 2020-003
Page 5 of 6
Section 9: If any section, subsection, sentence, clause or phrase of this
emergency ordinance is for any reason held to be invalid or unconstitutional, such
decision shall not affect the validity or constitutionality of the remaining portions of this
emergency ordinance. The City Council hereby declares that it would have passed this
emergency ordinance and each section, subsection, sentence, clause or phrase hereof,
irrespective of the fact that any one or more sections, subsections, sentences, clauses or
phrases be declared invalid or unconstitutional.
Section 10: The City Council finds and determines that the introduction and
adoption of this emergency ordinance is not subject to 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.
Section 11: This emergency ordinance shall become effective upon its adoption
and shall continue in full force and effect until: (a) 2020; (b) the State of
Emergency is terminated by proclamation of the Governor of California; (c) the local
emergency proclaimed on March 15, 2020 and ratified by the City Council on March 18,
2020, is terminated by proclamation of the City Council; or (d) such time as this
emergency ordinance is repealed in whole, or in part, by the City Council.
Section 12: The Mayor shall sign, and the City Clerk shall attest to the passage
of this emergency ordinance. The City Clerk shall cause the emergency ordinance, or a
summary thereof, to be published pursuant to City Charter Section 414.
17-15
Emergency Ordinance No. 2020-003
Page 6 of 6
This emergency ordinance was introduced and adopted at a special meeting of the
City Council of the City of Newport Beach held on the 12th day of May 2020, by the
following vote, to -wit:
AYES:
NAYS:
ABSENT:
WILL O'NEILL, MAYOR
ATTEST:
LEILANI I. BROWN, CITY CLERK
APPROVED AS TO FORM:
CITY TTORNEY'S OFFI
C.
AARON C. HARP, CITY ATTORNEY
17-16
ATTACHMENT C
EMERGENCY ORDINANCE NO. 2020-004
AN EMERGENCY ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF NEWPORT BEACH, CALIFORNIA,
EXTENDING THE RESTRICTION SET FORTH IN
EMERGENCY ORDINANCE NO. 2020-001 PROHIBITING
THE ISSUANCE OF ANY NEW SHORT TERM LODGING
PERMIT PURSUANT TO NEWPORT BEACH MUNICIPAL
CODE CHAPTER 5.95 AND REQUIRING A MINIMUM
NIGHT STAY FOR ALL SHORT TERM LODGING
RENTALS
WHEREAS, Section 200 of the Charter of the City of Newport Beach ("City") vests
the City Council with the authority to make and enforce all laws, rules and regulations with
respect to municipal affairs subject only to the restrictions and limitations contained in the
Charter and the State Constitution, and the power to exercise, or act pursuant to any and
all rights, powers, and privileges, or procedures granted or prescribed by any law of the
State of California;
WHEREAS, on January 31, 2020, the United States Secretary of Health and
Human Services announced a nationwide public health emergency, in response to the
COVID-19 outbreak;
WHEREAS, on March 4, 2020, Governor Gavin Newsom declared a State of
Emergency to make additional resources available, formalize emergency actions already
underway across multiple state agencies and departments, and help the state prepare for
broader spread of COVID-19 ("State of Emergency);
WHEREAS, on March 11, 2020, the World Health Organization declared the
COVID-19 outbreak a pandemic;
WHEREAS, on March 15, 2020, Governor Newsom called for all bars, wineries,
nightclubs and brewpubs to close throughout the state, urged all seniors and people with
chronic health conditions to isolate themselves at home, and for restaurants to reduce
occupancy by half to keep people farther away from each other;
WHEREAS, on March 15, 2020, in response to the COVID-19 outbreak, Newport
Beach City Manager Grace Leung, who is the Director of Emergency Services ("Director
of Emergency Services") for the City, issued a Proclamation of Local Emergency
("Proclamation");
WHEREAS, on March 18, 2020, the Newport Beach City Council ratified the
Proclamation and authorized the Director of Emergency Services to take certain actions
to protect the health, safety, and welfare of the public;
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Emergency Ordinance No. 2020-004
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WHEREAS, on March 19, 2020, Governor Newsom issued Executive Order N-33-
20, requiring all individuals living in the State of California to stay home or at their place
of residence, except as needed to maintain continuity of operations of the federal critical
infrastructure sectors ("Stay at Home Order");
WHEREAS, on March 19, 2020 the Federal Cybersecurity and Infrastructure
Security Agency issued guidance identifying 14 critical infrastructure sectors whose
workers provide services and functions that are essential to support a strong response to
the COVID-19 outbreak;
WHEREAS, COVID-19 has been detected in millions of people worldwide,
including, as of April 30, 2020, 97 cases in the City, and is primarily spread from person
to person;
WHEREAS, COVID-19 is easily transmitted, especially in group settings, and it is
essential that the spread of the virus be slowed to protect the ability of public and private
health care providers to handle the influx of new patients and safeguard public health and
safety;
WHEREAS, this worldwide outbreak of COVID-19 is emerging and rapidly
evolving;
WHEREAS, since the declaration of the State of Emergency, issuance of the
Proclamation and issuance of the Stay at Home Order, owners of lodging units in the City
of Newport Beach have continued to rent lodging units for short durations;
WHEREAS, the rental of lodging units for a short term jeopardizes the health,
safety, and welfare of the public and residents of the City because: (a) there are over
1,500 lodging units in the City that have short term lodging permits; (b) the short term
lodging units, which have permits, are interwoven throughout the City's residential
districts; (c) the Stay at Home Order provides that "... all individuals living in the State of
California [are] to stay home or at their place of residence, except as needed to maintain
continuity of operations of the federal critical infrastructure"; and (d) the continuous
turnover of persons occupying short term lodging units, which are interwoven throughout
the residential districts, has the potential to create a risk that COVID-19 will spread
throughout the City and beyond;
WHEREAS, Charter Section 412 provides that an ordinance necessary to
preserve the public peace, health or safety, may be introduced and adopted at one and
the same meeting if passed by at least five affirmative votes,
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Emergency Ordinance No. 2020-004
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WHEREAS, in furtherance of Governor Newsom's Stay at Home Order and to help
prevent the spread of COVID-19 throughout the residential areas of Newport Beach and
beyond, on April 3, 2020, the City Council adopted Emergency Ordinance 2020-001,
which prohibits the issuance of new short term lodging permits and/or the rental of units
for a short term to any person other than those medical professionals and emergency
responders coming to the City of Newport Beach to aid with the COVID-19 outbreak;
WHEREAS, there is a need to extend the restrictions set forth in Emergency
Ordinance No. 2020-001 prohibiting the issuance of new short term lodging permits and
to require a minimum night stay for all short term lodging rentals to help protect the
community from the spread of COVID-19; and
WHEREAS, this emergency ordinance extending the restriction prohibiting the
issuance of new short term lodging permits set forth in Emergency Ordinance No. 2020-
001 and to require a minimum night stay for all short term lodging rentals is the least
restrictive way to help ensure that the health, safety, and welfare of the public is protected.
NOW, THEREFORE, the City Council of the City of Newport Beach ordains as
follows:
Section 1: The City Council for the City of Newport Beach hereby finds and
declares that this emergency ordinance is necessary to help limit the spread of COVID-
19 and to protect the health, safety and welfare of the public, including, but not limited to,
the residents of the City of Newport Beach because there are over 1,500 short term
lodging units in the City of Newport Beach, which are interwoven throughout the
residential districts, and the continuous turnover of occupants at these short term lodging
units creates a potential risk that COVID-19 will spread throughout the City of Newport
Beach and beyond. The City Council also finds and declares that there are over 1,500
units in the City of Newport Beach that have been issued short term lodging permits,
which exceeds the demand for short term lodging units in the City of Newport Beach that
are necessary to provide temporary housing to medical professionals and emergency
responders coming to Newport Beach to help aid with the COVID-19 outbreak.
Section 2: As long as this emergency ordinance is in effect, no new permits for
a short term lodging unit, which permit is required prior to renting a lodging unit on a short
term basis by Chapter 5.95 of the Newport Beach Municipal Code ("NBMC"), shall be
issued by the City of Newport Beach. For purposes of this emergency ordinance, the
definition of "short term" shall have the same meaning as Section 5.95.010 (C) of the
NBMC; and the definition of "lodging unit" shall have the same meaning as Section
5.95.010 (A) of the NBMC.
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Emergency Ordinance No. 2020-004
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Section 3: As long as this emergency ordinance is in effect, it shall be unlawful
for any owner, as defined in Section 5.95. 010 (B) of the NBMC, or agent of an owner, to
rent, let, advertise for rent, or enter into an agreement for the rental of any lodging unit for
less than consecutive nights, where the occupancy would take place during the
time period the local or statewide emergency related to COVID-19 is in effect. Nothing in
this section shall be construed, however, to bar or preclude an existing permit holder from
renting a lodging unit for a short term to a medical professional or emergency responder
coming to the City of Newport Beach to aid with the COVID-19 outbreak for any length of
time. The owner of the short-term lodging unit or units is responsible for compliance with
the provisions of this section and the failure of an agent, or any other person or entity to
comply with this section shall be deemed non-compliance by the owner.
Section 4: Any person occupying a lodging unit as of April 3, 2020, may
continue such occupancy.
Section 5: A first violation of this emergency ordinance shall be enforceable in
accordance with Chapter 1.05 of the NBMC and the fine shall be one thousand dollars.
A second violation of this emergency ordinance, as determined by a hearing officer in
accordance with Chapter 1.05 of the NBMC, shall be punishable by the suspension of the
short term lodging permit for one year from the date of decision by the hearing officer. A
third violation of this emergency ordinance, as determined by a hearing officer in
accordance with Chapter 1.05 of the NBMC, shall be punishable by the revocation of the
short term lodging permit, and the short term lodging permit holder shall not be eligible to
reapply for a short term lodging permit for one year. For any suspension or revocation
referred to in this section, the City shall conduct the hearings in accordance with Sections
1.05.080, 1.05.090 and 1.05.110 of the NBMC except that the City shall set the hearing
for consideration by a hearing officer without requiring a request for hearing to be filed or
fine to be paid or deposited and all notices shall be sent to the holder of the short term
lodging permit.
Section 6: The City Manager shall take any and all action to ensure that this
emergency ordinance and the provisions contained herein are given widespread publicity.
Section 7: The City Manager and Director of Emergency Services is hereby
authorized to issue orders and regulations and take such other actions as may be
necessary or appropriate to respond to the COVID-19 outbreak.
Section 8 The recitals provided in this emergency ordinance are true and
correct and are incorporated into the substantive portion of this emergency ordinance.
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Emergency Ordinance No. 2020-004
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Section 9: If any section, subsection, sentence, clause or phrase of this
emergency ordinance is for any reason held to be invalid or unconstitutional, such
decision shall not affect the validity or constitutionality of the remaining portions of this
emergency ordinance. The City Council hereby declares that it would have passed this
emergency ordinance and each section, subsection, sentence, clause or phrase hereof,
irrespective of the fact that any one or more sections, subsections, sentences, clauses or
phrases be declared invalid or unconstitutional.
Section 10: The City Council finds and determines that the introduction and
adoption of this emergency ordinance is not subject to 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.
Section 11: This emergency ordinance shall become effective upon its adoption
and shall continue in full force and effect until: (a) 2020; (b) the State of
Emergency is terminated by proclamation of the Governor of California; (c) the local
emergency proclaimed on March 15, 2020 and ratified by the City Council on March 18,
2020, is terminated by proclamation of the City Council; or (d) such time as this
emergency ordinance is repealed in whole, or in part, by the City Council.
Section 12: The Mayor shall sign, and the City Clerk shall attest to the passage
of this emergency ordinance. The City Clerk shall cause the emergency ordinance, or a
summary thereof, to be published pursuant to City Charter Section 414.
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Emergency Ordinance No. 2020-004
Page 6 of 6
This emergency ordinance was introduced and adopted at a special meeting of the
City Council of the City of Newport Beach held on the 12th day of May 2020, by the
following vote, to -wit:
AYES:
NAYS:
ABSENT:
WILL O'NEILL, MAYOR
ATTEST:
LEILANI I. BROWN, CITY CLERK
APPROVED AS TO FORM:
CITY TTORNEY'S OF E
G �.. teCt.
AARON C. HARP, CITY ATTORNEY
17-22