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HomeMy WebLinkAbout11 - Fast Track Back to Business - Emergency Temporary Use Permit Program (PA2020-069)Q �EwPpRT O c — '9 TO: FROM: CITY OF NEWPORT BEACH City Council Staff Report PREPARED BY: PHONE: TITLE: ABSTRACT: May 26, 2020 Agenda Item No. 11 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL Seimone Jurjis, Community Development Director - 949-644-3232, sjurjis@newportbeachca.gov Makana Nova, Senior Planner, mnova@newportbeachca.gov 949-644-3249 Emergency Ordinance No. 2020-005: Fast Track Back to Business — Emergency Temporary Use Permit Program (PA2020-069) For City Council's consideration is Emergency Ordinance No. 2020-005 authorizing the issuance of emergency temporary use permits to allow commercial businesses or religious institutions the opportunity to expand their use and utilize the parking lots, sidewalks, or public property. The emergency temporary use permit application will be reviewed by the City departments, ensuring the expansion of use can be done in a safe manner with conditions added to minimize impacts to the surrounding properties. RECOMMENDATION: a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to 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 this project 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, waive full reading, direct the City Clerk to read by title only, and adopt Emergency Ordinance No. 2020-005, An Emergency Ordinance of the City of Newport Beach, California, Authorizing the Community Development Director to Grant Emergency Temporary Use Permits to Commercial Businesses and Religious Institutions for the Utilization of Private Property, Parking Lots, Sidewalks, and Public Property. FUNDING REQUIREMENTS: Fees for the temporary use permits and appeals are proposed to be waived. The anticipated waiver is estimated to be $100,000 to $150,000 depending on the number of businesses looking to utilize the new temporary use permit. The review process will be incorporated into currently budgeted staffing levels. Contract staff will be used to augment staffing levels where needed. Emergency Ordinance No. 2020-005: Fast Track Back to Business — Emergency Temporary Use Permit Program (PA2020-069) May 26, 2020 Page 2 DISCUSSION: Background: Businesses are experiencing considerable market changes as a result of the COVID-19 pandemic and must adapt their operations to provide a safe experience for their customers. As the statewide stay-at-home order is gradually lifted in the coming weeks and months, businesses will need to make physical modifications to ensure social distancing, technology improvements, interactions between customers and employees, and other adaptations to meet changing customer demands. As of this writing, the State has allowed retail establishments to reopen with curbside pickup only. Restaurants are permitted to offer pick-up or delivery service, as they have since the start of the stay-at-home order. The State has not yet announced when Orange County restaurants will be permitted to offer dine -in service. The City of Newport Beach understands that it is essential to the economic recovery of our businesses and community for the City to support Newport Beach businesses in reopening safely as quickly and easily as possible once the State gives them the greenlight. The City Council created an Ad Hoc Committee, comprised of Mayor Will O'Neill and Council Members Diane Dixon and Kevin Muldoon to address commercial reopening and business advancement and recommend actions that can assist Newport Beach businesses in reopening. The Ad Hoc Committee has been in discussions with local business leaders and a common request is for the City to help eliminate some of the barriers to reopening under the State guidelines by streamlining and expediting its temporary use permit process. With the concurrence of the Ad Hoc Committee, City staff is proposing the Fast Track Back to Business Initiative, centered around an emergency ordinance that if approved, will enable the City to quickly adjust and accommodate existing businesses in making physical modifications due to the changing circumstances of the COVID-19 pandemic. Proposed Ordinance: The proposed emergency ordinance (Attachment A) will provide an expedited temporary use permit process and will allow businesses or religious institutions greater latitude to expand into common areas, parking lots, and public property to more easily accommodate physical distancing requirements. The objective of the ordinance is to help existing establishments expand their use so they can be compliant with social distancing requirements in accordance with guidance from the State of California. The ordinance provides a streamlined permitting process that would allow businesses to reopen with the goal of maintaining their current occupancy. 11-2 Emergency Ordinance No. 2020-005: Fast Track Back to Business — Emergency Temporary Use Permit Program (PA2020-069) May 26, 2020 Page 3 Expedited Process: The emergency ordinance will grant the Community Development Director the authority to approve temporary use permits. The permit will allow for the waiver of parking spaces and/or reconfiguration of parking and circulation areas to accommodate curbside pick-up, take-out windows, and expanded outdoor dining to provide adequate social distancing. The ordinance also allows for extended banner permit durations to advertise modified business operations during this time period. City staff representing each of the reviewing departments (Community Development, Public Works, Police, and Fire) will review incoming applications and provide immediate feedback and/or suggestions for application submittals. Staff will review the application to ensure the following: • ADA accessibility; • Safe circulation and queuing for drivers and pedestrians; • Compliance with existing restaurant occupancy limitations, hours of operation, and restrictions on alcohol usage'; • Delineation of outdoor dining spaces with physical barriers or markers; • An adequate parking supply as to not impact public streets; • That the temporary use would not create any other hazard to public health, safety, or welfare of the public; and • State guidelines are utilized and practiced Applications will be reviewed through a checklist process. Departments will have the opportunity to include conditions to ensure that each application and proposal is safe and operable for the duration of the emergency ordinance. Emergency temporary use permits issued will expire 14 days after the City emergency order is terminated or repealed. Once approved, more information on the program will be posted on the City's website at: https://www.newportbeachca.gov/backtobusiness 1 The state Alcohol Beverage Control (ABC) recently issued its fourth notice of regulatory relief allowing for a COVID-19 Temporary Catering Authorization. This will authorize the on -sale consumption of those alcoholic beverages for which the licensee has on -sale privileges on property that is adjacent to the licensed premises, that is under the control of the licensee, and where bona fide meals are being served. ABC will grant these temporary authorizations only for areas in which bona fide meals may be served for on-site consumption in accordance with state and local health and safety directives, and the temporary authorization will be conditioned on the licensee adhering to such directives. The licensee must obtain a COVID-19 Temporary Catering Authorization from ABC prior to serving alcohol outdoors. 11-3 Emergency Ordinance No. 2020-005: Fast Track Back to Business — Emergency Temporary Use Permit Program (PA2020-069) May 26, 2020 Page 4 Appeals: Applicants may appeal the Community Development Director's decision on emergency temporary use permits to the City Manager. The decision of the City Manager is final. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this project exempt from the California Environmental Quality Act (CEQA) pursuant to 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 this project 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 (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENT: Attachment A — Emergency Ordinance No. 2020-005 11-4 ATTACHMENT A EMERGENCY ORDINANCE NO. 2020-005 AN EMERGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AUTHORIZING THE COMMUNITY DEVELOPMENT DIRECTOR TO GRANT EMERGENCY TEMPORARY USE PERMITS TO COMMERCIAL BUSINESSES AND RELIGIOUS INSTITUTIONS FOR THE UTILIZATION OF PRIVATE PROPERTY, PARKING LOTS, SIDEWALKS AND PUBLIC PROPERTY 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 the 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; 11-5 Emergency Ordinance No. 2020-005 Page 2 of 6 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 April 14, 2020, Governor Newsom outlined six factors that the State of California would consider when modifying the Stay at Home Order including: (1) the ability to test, contact trace, isolate, and support the exposed; (2) the ability to protect those at high risk for COVID-19; (3) the surge capacity for hospital and health systems; (4) the therapeutic development to meet the demand; (5) the ability of businesses, schools, and childcare facilities to support physical distancing; and (6) a determination of when to reinstitute measures like Stay at Home; WHEREAS, on April 28 2020, Governor Newsom announced four "Resilience Roadmap Stages" that the State of California would use to guide its gradual reopening process, which consists of the following four stages: Stage 1, Safety and Preparedness; Stage 2, Lower Risk Workplaces; Stage 3, Higher Risk Workplaces; and Stage 4, End of Stay at Home Order; WHEREAS, on May 4, 2020, Governor Newsom announced that, beginning May 8, 2020, the State of California would move from Stage 1, which had been in place statewide since the issuance of the Stay at Home Order, to Stage 2, which is the gradual re -opening of some lower risk workplaces; WHEREAS, COVID-19 has been detected in millions of people worldwide, including, as of May 13, 2020, 130 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, as commercial businesses and religious institutions in the City begin to re -open, it is critical that they do so in a manner where social distancing is maintained to limit the spread of COVID-19; 11-6 Emergency Ordinance No. 2020-005 Page 3 of 6 WHEREAS, to help existing commercial businesses and religious institutions operate in a safe manner where social distancing is maintained in accordance with guidance from the State of California and local health officials, it is necessary to temporarily allow commercial businesses and religious institutions to operate on private property, parking lots, sidewalks and public property; and 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. NOW, THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: The City Council of 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 because it is essential that contact between persons, which could lead to the spread of COVID-19, be limited, and the use of private property, parking lots, sidewalks and public property is necessary to allow existing commercial businesses and religious institutions operate in a safe manner where social distancing is maintained in accordance with guidelines issued by the State of California and local health officials. Section 2: The Community Development Director is hereby authorized to grant emergency temporary use permits, which allow for the temporary use of private property, parking lots, sidewalks and public property for commercial and religious uses. An application for an emergency temporary use permit shall be filed with the Community Development Department, on forms approved by the Community Development Director, and shall include all information and materials specified by the Community Development Director. After consulting with City departments, as applicable, the Community Development Director may approve or conditionally approve an emergency temporary use permit if the Community Development Director finds that the temporary use would not create a hazard to the health, safety or welfare of the public. The Community Development Director may impose any conditions deemed necessary to ensure that the temporary use does not create a hazard to the public health, safety or welfare of the public. 11-7 Emergency Ordinance No. 2020-005 Page 4 of 6 The Community Development Director shall have the authority to immediately revoke any emergency temporary use permit granted pursuant to this emergency ordinance if the Community Development Director determines that there has been a violation of any condition of approval. Any revocation of an emergency temporary use permit shall be deemed effective upon the posting of a notice of revocation at the site of the business granted the emergency temporary use permit. Any decision made by the Community Development Director, pursuant to the authority granted the Community Development Director under this emergency ordinance, may be appealed by the applicant/permittee to the City Manager by notifying the City Manager of the appeal within three (3) calendar days of the decision. The City Manager shall have authority to sustain, reverse or modify the decision of the Community Development Director. The City Manager's decision shall be final. All application fees and appeal fees directly related to this emergency ordinance are hereby waived. Section 3: As long as an emergency temporary use permit is in effect, all Newport Beach Municipal Code provisions and any restrictions set forth in a discretionary permit regulating uses, nonconforming uses, development standards, parking, signage, permit procedures or other regulations specifically addressed in the emergency temporary use permit that would otherwise regulate the use and development of private or public property, are hereby suspended for sites subject to an emergency temporary use permit, to the extent that the Newport Beach Municipal Code provisions or restrictions set forth in a discretionary permit conflict with the terms of the emergency temporary use permit. Section 4: As a condition of receiving an emergency temporary use permit, the permittees shall agree to defend, indemnify and hold harmless the City and its employees from and against any and all claims, demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever which may arise from or in any manner relate (directly or indirectly) to the issuance of the emergency temporary use permit. This indemnification shall include, but not be limited to, damages awarded against the City, if any, costs of suit, attorneys' fees, and other expenses incurred in connection with such claim, action, or proceeding whether incurred by applicant, City, and/or the parties initiating or bringing such proceeding. 11-8 Emergency Ordinance No. 2020-005 Page 5of6 Section 5: Permittees that utilize public property shall obtain and maintain insurance in an amount specified by the City's Risk Manager. Unless otherwise indicated by the Risk Manager, permittees shall obtain and maintain commercial general liability insurance on an "occurrence" basis, including completed products and completed operations, property damage, bodily injury and personal and advertising injury with a limit of not less than $1,000,000 per occurrence. This insurance shall be endorsed to name the "City of Newport Beach, the City Council, its employees, and agents" as additional insureds, and provide that this insurance is primary and non-contributory with any other insurance or self-insurance available to the City. Permittees shall also maintain workers' compensation as required by the State of California with Statutory Limits, and Employer's Liability Insurance with a limit of not less than $1,000,000 per accident for bodily injury or disease. The Workers' Compensation policy shall be endorsed with a waiver of subrogation in favor of the "City of Newport Beach, the City Council, its employees, and agents." If permittee maintains broader coverage and/or higher limits than the minimums provided in this Section, the City requires and shall be entitled to the broader coverage and/or higher limits maintained by the permittee. All policies shall be issued by an agent or representative of an insurance company licensed to do business in the State of California, which has one of the three highest or best ratings from the Alfred M. Best company. All insurance policies shall contain an endorsement obligating the insurance company to furnish the Community Development Director with at least thirty (30) days written notice in advance of the cancellation of the policy. The City reserves the right to require a permittee to submit the requisite insurance documents for review at any time. Section 6: Areas used for temporary commercial and religious uses shall be accessible to the disabled. Section 7: The emergency temporary use permit shall expire fourteen (14) days after this emergency order is terminated or repealed, as provided for in Section 11. 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. 11-9 Emergency Ordinance No. 2020-005 Page 6 of 6 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 May 26, 2020, and shall continue in full force and effect until: (a) 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 (b) 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 regular meeting of the City Council of the City of Newport Beach held on the 26th day of May 2020, by the following vote, to -wit: AYES: NAYS: ABSENT: WILL O'NEILL, MAYOR r-ri111*1151 LEILANI i. BROWN, CITY CLERK APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE '." C "�' AARON C. HARP, CITY ATTORNEY 11-10