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HomeMy WebLinkAbout19 - Amending the NBMC Restrictions for Short Term Lodging; and Emergency Ordinance: Restricting the Short Term Rentals on Newport Island to a Minimum of Four Consecutive NightsQ �EwPpRT CITY OF O � z NEWPORT BEACH <,FORN'P City Council Staff Report June 23, 2020 Agenda Item No.19 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Seimone Jurjis, Community Development Director - 949-644-3232, sjurjis@newportbeachca.gov PREPARED BY: Evelyn Tseng, Revenue Manager, etseng@newportbeachca.gov PHONE: 949-644-3153 TITLE: Ordinance No. 2020-15: Amending the Newport Beach Municipal Code Restrictions for Short Term Lodging; and Emergency Ordinance No. 2020-006: Restricting the Short Term Rentals on Newport Island to a Minimum of Four Consecutive Nights ABSTRACT: On July 9, 2019, the City Council formed an ad hoc committee to review the short term lodging regulations set forth in the Newport Beach Municipal Code (NBMC) Chapter 5.95. After receiving public input at several community events and meetings, the committee recommended the City Council modify the short term lodging regulations at the February 11, 2020, City Council meeting. Based on input received at the City Council meeting, the committee was tasked with conducting additional public outreach and refining its recommendations. The committee has now honed its recommendations and is proposing more succint modifications to the short term lodging regulations. In addition, given the current state of the COVID-19 outbreak, City staff is recommending the City Council lift the ban on short term lodging on Newport Island and impose a four consecutive night minimum stay. RECOMMENDATION: a) Find this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2020-15, An Ordinance of the City Council of the City of Newport Beach, California, Amending Section 3.16.060 and Chapter 5.95 of the Newport Beach Municipal Code Relating to Short Term Lodging, and pass to second reading on July 14, 2020; and 19-1 Ordinance No. 2020-15: Amending the Newport Beach Municipal Code Restrictions for Short Term Lodging; and Emergency Ordinance No. 2020-006: Restricting the Short Term Rentals on Newport Island to a Minimum of Four Consecutive Nights June 23, 2020 Page 2 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. 2020-006, An Emergency Ordinance of the City Council of the City of Newport Beach, California, Prohibiting the Rental of Any Lodging Unit on Newport Island for a Period of Four Consecutive Nights 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. FUNDING REQUIREMENTS: If the proposed ordinance is adopted, the additional restrictions may require increased staff resources for administering and enforcing the program. Also, an outsourced answering service is anticipated to cost $27,000 per year (not including first year implementation costs). To offset the increase in any additional costs, staff will complete a fee study and return to City Council with a revised short term lodging permit fee from the current amount of $103 per year. BACKGROUND: The NBMC permits short term lodging in areas where zoning primarily allows for residential duplex and multifamily structures. To regulate the short term rental of dwelling units, the City Council first adopted the short term lodging permit ordinance in 1992. In April 2004, the City Council adopted an updated ordinance that precluded a short term lodging permit from being issued in Single -Unit Residential (R-1) zoning districts, other than to the current/future owners of the 212 properties zoned for single-family uses that held short term lodging permits at the time the ordinance was adopted. In January 2019, the City Council held a study session on short term lodging and later formed an ad hoc committee to review and recommend changes to the ordinance. The ad hoc committee included City Council Members Diane Dixon, Joy Brenner, and Jeff Herdman. The committee members hosted several community events and meetings to gain public input from residents, property owners, as well as property managers and agents. In February 2020, after the committee made its recommendations and more public comments were submitted, the City Council tasked the committee with refining its recommendations. While the committee was working on honing its recommendations, the COVID-19 outbreak occurred, and the City Council adopted the following emergency ordinances to protect Newport Beach residents: 19-2 Ordinance No. 2020-15: Amending the Newport Beach Municipal Code Restrictions for Short Term Lodging; and Emergency Ordinance No. 2020-006: Restricting the Short Term Rentals on Newport Island to a Minimum of Four Consecutive Nights June 23, 2020 Page 3 - Emergency Ordinance No. 2020-001 (enacted April 3, 2020, expired May 20, 2020), which prohibited short term rentals or the issuance of new short term lodging permits. - Emergency Ordinance No. 2020-003 (enacted May 12, 2020, expires when either the state or local emergency proclamation is terminated, or when repealed by City Council), which prohibited the rental of short term lodging units on Newport Island. - Emergency Ordinance No. 2020-004 (enacted May 12, 2020, expires when either the state or local emergency proclamation is terminated, or when repealed by City Council), which allowed short term lodging to resume in Newport Beach (except as provided in Emergency Ordinance No. 2020-003), with a three consecutive night minimum stay. Also, this ordinance prohibited the issuance of new short term lodging permits. DISCUSSION: Currently, 1,523 units are active with short term lodging permits. In a non -pandemic environment, these units typically generate approximately $4 million in annual transient occupancy tax revenue. While short term rentals provide additional income to owners, they can also significantly impact the City's residents' enjoyment of their homes and neighborhood. Based on input received at the City Council meeting on February 11, 2020, and additional public outreach, the ad hoc committee has refined its recommendations to balance the needs and priorities of residents and short term rental owners as follows: Recommendations Parking The previous proposed ordinance required on-site parking for every short term lodging unit. The committee is recommending that the Planning Commission consider this change and provide input to the City Council prior to considering this modification. The proposed ordinance for City Council consideration requires an owner, on its permit application, to describe the number of parking spaces available, the location and size of each parking space, and provide that information to the transient occupant. Maximum Unit Occupant Load Previously, the recommendation proposed a maximum occupancy limit for each unit based on two people per bedroom plus two additional people. The committee is recommending that the Planning Commission consider this change and provide input to the City Council prior to considering this modification. The proposed ordinance for City Council consideration limits the number of occupants to the maximum permitted by the Building Code and Fire Code. 19-3 Ordinance No. 2020-15: Amending the Newport Beach Municipal Code Restrictions for Short Term Lodging; and Emergency Ordinance No. 2020-006: Restricting the Short Term Rentals on Newport Island to a Minimum of Four Consecutive Nights June 23, 2020 Page 4 Exterior Signage and City's Answering Service Previously, the recommendation proposed requiring the owner to post outdoor signage. Because of concerns that exterior signage would be an eyesore impacting the look of neighborhoods, the proposed ordinance eliminates the exterior signage requirement. The City will still contract with a 24-hour answering service, for neighbors to report any issues. The answering service number will be shared Citywide, including being posted the City's website. Limit on Number of Permits Issued The previously proposed ordinance had included an ultimate cap of 1,600 permits and a phase-out of short term lodging permits outside the coastal zone. The committee is recommending that the Planning Commission consider capping the total number of permits but not phase-out short term lodging outside of the coastal zone. The proposed ordinance for City Council consideration does not contain any language which limits the number of short term lodging permits; however, Emergency Ordinance No. 2020-4 does not allow for any new permits to be issued during the emergency related to COVID-19. Agents and Hosting Platforms The previously proposed ordinance required hosting platforms to collect and remit all taxes and fees. Rather than requiring hosting platforms to collect and remit taxes and fees, the proposed ordinance gives discretion to the City to require the hosting platforms collect and remit taxes and fees upon notice from the City. Under the proposed ordinance, the ultimate responsibility for the collection and remittance of all taxes and fees lies with the owners of the properties. This modification allows for the City, hosting platforms and owners to work together to ensure full collection and remittance of taxes and fees. The proposed ordinance still provides that agents and hosting platforms cannot complete any bookings unless the short term lodging unit is listed in the City's registry. In addition, agents and hosting platforms must disclose the unit's address, length of stay, person responsible and price paid to the City. Violations, Penalties, and Appeals To ensure compliance with the short term lodging requirements, the proposed ordinance still provides for stricter enforcement regulations, allowing for suspensions and revocations, depending on the violation of the short term lodging regulations. Specifically, the proposed ordinance provides that after two violations in any 12 -month period, the permit may be suspended for six months after review and consideration by the Finance Director. Additionally, the Finance Director has authority to suspend or revoke a permit if the Finance Director finds the use violates state or federal laws. 19-4 Ordinance No. 2020-15: Amending the Newport Beach Municipal Code Restrictions for Short Term Lodging; and Emergency Ordinance No. 2020-006: Restricting the Short Term Rentals on Newport Island to a Minimum of Four Consecutive Nights June 23, 2020 Page 5 The violation penalty amounts are currently up to $1,000 for the first violation, $2,000 for the second violation and $3,000, for the third violation, if such violations occurred within a year of each other. Advertising Short term Lodging Units To ensure that prospective guests know that the unit is properly permitted by the City, the proposed ordinance will require property owners who advertise their short term lodging unit on a hosting platform or through print literature, to include the short term lodging permit number issued by the City. This requirement will also assist the City in confirming the legality of the short term lodging unit. Interior Information Rules for Guests The proposed ordinance requires the owner of each short term lodging unit to post the following information in the interior of the unit: a) Name and number of a local contact available at all times, who is located within 25 miles; b) The number and location of on-site parking spaces; c) Street sweeping and trash collection schedule; and d) No amplified sound between 10 p.m. and 10 a.m. In addition, the owner must provide the transient user with a copy of the City's Good Neighbor policy. Short Term Subletting In many cases, owners are unaware that their tenants are renting the unit to a transient owner. The proposed ordinance expressly prohibits a lessee of a lodging unit from renting the unit on a short term basis or home -sharing. No Rentals to Persons Under 21 Years of Age To minimize the number of parties, the proposed ordinance expressly prohibits owners from renting a lodging unit to a transient user that is under the age of 21. Nuisance Response Plan To ensure that owners take responsibility for issues with their short term lodging customers, owners must provide a nuisance response plan when applying for or renewing a permit, indicating how they would deal with unruly guests. 19-5 Ordinance No. 2020-15: Amending the Newport Beach Municipal Code Restrictions for Short Term Lodging; and Emergency Ordinance No. 2020-006: Restricting the Short Term Rentals on Newport Island to a Minimum of Four Consecutive Nights June 23, 2020 Page 6 Newaort Island In addition to the above ordinance changes, staff recommends repealing Emergency Ordinance No. 2020-003, and enacting Emergency Ordinance No. 2020-006, which allows for renting of short term lodging units on Newport Island, with a four consecutive night minimum stay, unless the permit holder is renting to a medical professional or emergency responder. Staff Resources Short term lodging unit owners are required to obtain a short term lodging permit and a business license, as well as remit transient occupancy tax. Owners and operators of illegal units who fail to comply with the City's requirements have an unfair advantage, and their units can be a detriment to the residential neighborhoods. The City dedicates staff resources within the Finance Department and Community Development Department to level the playing field for all owners and operators. The Finance Department will retain its part-time Senior Fiscal Clerk position, 21 hours per week, to continue to work with Host Compliance, or its successor, to identify unpermitted properties, process new applications (once the Emergency Order is terminated) and process renewals, but is not currently requesting additional resources. In the Community Development Department, Code Enforcement staff respond to complaints related to the operation of illegal units, noise, or complaints related to trash. No new Code Enforcement staffing is proposed at this time. Staffing levels in both departments will be further evaluated after the ordinance is fully implemented. The short term lodging permit fee will be studied to ensure that the City's costs in managing the short term lodging program are recovered. In addition, a permit renewal fee will be added. Next Steps Staff is working on other ad hoc committee recommendations. Those recommendations affect the zoning code and local coastal implementation plan. The recommended changes will be presented to the Planning Commission at the July 23, 2020 meeting. A recommendation from the Planning Commission will be brought to the City Council for consideration in September 2020. ENVIRONMENTAL REVIEW Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to 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, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. 19-6 Ordinance No. 2020-15: Amending the Newport Beach Municipal Code Restrictions for Short Term Lodging; and Emergency Ordinance No. 2020-006: Restricting the Short Term Rentals on Newport Island to a Minimum of Four Consecutive Nights June 23, 2020 Page 7 NOTICING: This 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). ATTACHMENTS: Attachment A — Ordinance No. 2020-15 Attachment B — Redline Strikeout Attachment C — Emergency Ordinance No. 2020-006 19-7 ATTACHMENT A ORDINANCE NO. 2020-15 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AMENDING SECTION 3.16.060 AND CHAPTER 5.95 OF THE NEWPORT BEACH MUNICIPAL CODE RELATING TO SHORT TERM LODGING 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, the City is a popular beach resort community that serves a large number of tourists during the summer months; WHEREAS, this influx of tourists' burdens City streets and services with heavy volume of vehicle traffic and heavy demand on parking, sewage, and refuse facilities, paramedics and police services; WHEREAS, the Police and Fire Departments frequently respond to complaints of noise disturbances, disorderly conduct and other illegal activity at short term lodging units, WHEREAS, a large number of short term lodging units are located in residential areas where dwelling units are occupied by the property owner or long term tenants and these permanent residents are adversely impacted by the noise, traffic, refuse and demand for parking resulting from occupancy of short term lodging units, WHEREAS, the presence of such visitors within the City's residential neighborhoods can sometimes disrupt the quietude and residential character of the neighborhoods and adversely affect the community; WHEREAS, the City has an interest in preserving its housing stock and the quality and character of its existing single and multi -family residential neighborhoods; WHEREAS, occupants of short term lodging units are generally not residents of the City and the City has limited ability to enforce provisions of the Newport Beach Municipal Code and the Penal Code related to disorderly conduct when violated by occupants of short term lodging units; 19-8 Ordinance No. 2020 - Page 2 of 18 WHEREAS, on May 11, 1992, the City Council adopted Ordinance 92-13, establishing regulations for the operation of short term lodging units within residential zones to mitigate the impact of this use on the residents of the City; and WHEREAS, the City Council has reviewed and considered evidence and documentation attesting to the need to further regulate and control short term lodging units in residential zones to ensure that short term lodging units are regulated in a way to maintain harmony with surrounding uses and all transient occupancy taxes and visitor serving fees are properly collected and remitted to the City. NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: Section 3.16.060 of Chapter 3.16 of Title 3 of the Newport Beach Municipal Code is hereby amended to read as follows: 3.16.060 Registration of Hotel. Within thirty (30) days after commencing business each operator of any hotel renting occupancy to transients shall register the hotel with the Finance Director and obtain a "transient occupancy registration certificate" to be at all times posted in a conspicuous place on the premises. The certificate shall, among other things, state the following: A. The name of the operator; B. The address of the hotel; C. The date upon which the certificate was issued; and D. The following statement: This transient occupancy registration certificate signifies that the person named on the certificate has fulfilled the requirements of the Uniform Transient Occupancy Tax Ordinance (Chapter 3.16 of the Newport Beach Municipal Code) by registering with the Finance Director for the purpose of collecting the tax from transients and remitting the tax to the Finance Director. This certificate does not authorize any person to conduct any unlawful business, to conduct any lawful business in an unlawful manner or to operate a hotel without strictly complying with all local laws, including those requiring a permit from any board, commission, department or office of the City. This certificate does not constitute a permit. The requirements of this section shall not apply to the operator of a hotel required to obtain a short term lodging permit pursuant to Section 5.95.020. 19-9 Ordinance No. 2020 - Page 3 of 18 Section 2: Chapter 5.95 of Title 5 of the Newport Beach Municipal Code is hereby amended to read as follows: Chapter 5.95 SHORT TERM LODGING PERMIT Sections: 5.95.005 Purpose and Findings. 5.95.010 Definitions. 5.95.015 Residential Properties Eligible for Short Term Lodging Permits_ 5.95.020 Permit Required. 5.95.025 Agency. 5.95.030 Application for Permit. 5.95.035 Denial of Permit. 5.95.040 Filing Fee. 5.95.045 Conditions. 5.95.047 Violations of Permit Conditions by Transient User, Occupant or Guest. 5.95.050 Agent and Hosting Platform Responsibilities. 5.95.055 Issuance of Administrative Subpoenas. 5.95.060 Violations, Penalties and Enforcement. 5.95.065 Suspensions and Revocations. 5.95.070 Permits and Fees Not Exclusive. 5.95.080 License and Permit Closure. 5.95.005 Purpose and Findings. The City Council of the City of Newport Beach finds and declares as follows: A. An ever-increasing number of tourists renting short term lodging units is increasing the demand for City services and creating adverse impacts in residential zones. B. Over a thousand dwelling units within residential zones near the City's beaches and harbor are rented for less than thirty (30) consecutive calendar days with the vast majority of those rentals occurring during the summer when the demand for parking and City services is the greatest. C. Many of the occupants of short term lodging units are permanent residents of areas distant from Newport Beach and the City has no effective way to prevent occupants from continuing to violate provisions of this Code and the Penal Code relating to noise, disturbances and disorderly conduct. The only effective way to minimize the problems associated with occupancy of short term lodging units is to 19-10 Ordinance No. 2020 - Page 4 of 18 impose responsibility on the owner of the property, either personally or through an agent, to control the conduct of guests and occupants. D. Numerous incidents involving excessive noise, disorderly conduct, vandalism, overcrowding, traffic congestion, illegal vehicle parking and accumulation of refuse are directly related to short term lodging units, which increasingly require response from police, fire, paramedic and other City services. E. The increase in demand for City services resulting from short term lodging units' overburdens and threatens the City's ability to provide necessary services. F. Many short term lodging units are operated by agents and/or absentee owners who exercise little or no supervision or control of occupants. G. There has been an increase in the number of lodging units booked on a short term basis where the owner of the unit does not have a short term lodging permit, affecting the ability of the City to properly regulate the impacts caused by the illegal operation. H. There has been an increase in the number of lodging units booked on a short term basis where the owner of the property has not taken steps to ensure the transient occupancy tax and visitor service fee is collected and/or remitted to the City, resulting in an unfair business advantage to these illegal operations and loss of revenue necessary to provide City services. I. Problems with short term lodgings are particularly acute in residential districts where the peace, safety and general welfare of the long term residents is threatened. J. To ensure the effective enforcement of this Code, it is necessary to have the owner include the short term lodging permit number issued by the City on all advertisements for a short term lodging unit so the transient user knows the owner is authorized to rent the lodging unit on a short term basis. K. To ensure the transient user knows the total cost associated with renting the lodging unit and to prevent fraud, it is necessary for the owner to make sure the transient user is informed of the amount of the transient occupancy tax and visitor service fee prior to completing a booking transaction. L. The restrictions of this chapter are necessary to preserve the City's housing stock, the quality and character of the City's residential neighborhoods as well as to prevent the continued burden on City services and adverse impacts on residential neighborhoods posed by short term lodgings. 19-11 Ordinance No. 2020 - Page 5 of 18 5.95.010 Definitions. For the purpose of this chapter, the following definitions shall apply: A. "Accessory dwelling unit" shall have the same definition as set forth in Chapter 20.70 of Title 20 of this Code. B. "Agent" shall mean any person who is authorized in writing by the owner to represent and act for an owner. C. "Booking transaction" shall mean any reservation or payment service provided by a person who facilitates a short term lodging rental transaction between a transient user and owner for the use of a unit for a period of less than thirty (30) consecutive calendar days. D. "City Manager" shall mean the City Manager of the City or his or her designee. E. "Finance Director" shall mean the Finance Director of the City or his or her designee. F. "Gross floor area," shall mean the area of the lodging unit that includes the surrounding exterior walls and any interior finished portion of a structure that is accessible and that measures more than six feet from finished floor to ceiling. Stairwells and elevator shafts above the first level shall be excluded from the calculation of gross floor area. G. "Home -sharing" shall mean an activity whereby the owner hosts a transient user in the owner's lodging unit, for compensation, for periods of less than thirty (30) consecutive calendar days, during which time the owner of the unit lives onsite, in the unit, throughout the transient user's stay and the owner, the transient user and any other occupants live together in the same unit as a single housekeeping unit. H. "Hosting platform" shall mean a person, other than an owner or agent, who participates in the short term lodging business by facilitating a booking transaction using any medium of facilitation. I. "Lodging unit" or "unit" shall mean a "dwelling unit" as that term is defined in Chapter 20.70, of Title 20 of this Code. An accessory dwelling unit shall not be considered a lodging unit or unit for purposes of this chapter. J. "Owner" shall mean the person(s) that hold(s) legal and/or equitable title to the lodging unit. K. "Person" shall mean any individual and any form of business entity including, but not limited to, all domestic and foreign corporations, associations, syndicates, joint stock 19-12 Ordinance No. 2020 - Page 6 of 18 corporations, partnerships of every kind, clubs, business or common law trusts, societies, or limited liability companies. L. "Residential district" shall mean those areas of the City so designated by Title 20 of this Code as well as any other area in the City designated for a residential use as part of a Planned Community Development Plan, Specific Area Plan or Planned Residential District. M. "Short term" shall mean a lodging unit that is rented or leased as a single housekeeping unit for a period of less than thirty (30) consecutive calendar days. This also includes home -sharing. N. "Short term lodging unit registry" shall mean the published registry maintained by the City that sets forth a list of all owners and the address of all units that have a valid short term lodging permit and business license with the City, a copy of which is available, without charge, to any person who requests a copy and which shall be accessible on the City's website. O. "Single housekeeping unit" shall have the same definition as set forth in Chapter 20.70 of Title 20 of this Code. P. "Transient" or "Transient user" shall mean any person or persons who, for any period less than thirty (30) consecutive calendar days either at his or her own expense, or at the expense of another, obtains lodging in a lodging unit or the use of any lodging space in any unit, for which lodging or use of lodging space a charge is made. 5.95.015 Residential Properties Eligible for Short Term Lodging Permits. Only properties in a residential district that are authorized under Titles 20 and 21 of this Code and this chapter shall be eligible for a short term lodging permit. Subsequent to June 1, 2004, no annual permit shall be issued to or renewed for any dwelling unit on any parcel zoned for "Single-family Residential (R-1)" or that is designated for a single-family residential use as part of a Planned Community Development Plan, Specific Area Plan or Planned Residential District, unless a permit has previously been issued for that lodging unit and the permit was not subsequently revoked. 5.95.020 Permit Required. No owner of a lodging unit shall advertise for rent or rent a lodging unit located within a residential district for a short term without a valid short term lodging permit for that unit issued pursuant to this chapter. 19-13 Ordinance No. 2020 - Page 7 of 18 5.95.025 Agency. An owner may retain an agent to comply with the requirements of this chapter, including, without limitation, the filing of an application for a short term lodging permit, the management of the short term lodging unit or units, and the compliance with the conditions to the short term lodging permit. The permit shall be issued only to the owner of the short term lodging unit or units. The owner of the short term lodging unit or units is responsible for compliance with the provisions of this chapter and the failure of an agent to comply with this chapter shall be deemed non-compliance by the owner. 5.95.030 Application for Permit. An application for an annual short term lodging permit, or renewal thereof, shall be filed with the Finance Director upon forms provided by the City and shall contain the following information: A. The name, address and telephone number of the owner of the unit for which the short term lodging permit is to be issued. B. The name, address and telephone number of the agent, if any, of the owner of the unit. C. Evidence of a valid business license issued by the City for the separate business of operating a short term lodging unit or units. D. The number of bedrooms in the lodging unit. E. The gross floor area of the lodging unit. F. The number of parking spaces available onsite and a description indicating the location and size of each parking space. G. A nuisance response plan, which sets forth the owner's plan for handling disruptive guests. H. A certification that the applicant has reviewed the covenants, conditions and restrictions, if any, and a short term use is permitted at the location pursuant to the terms of the covenants, conditions and restrictions, if any. i. Acknowledgement of receipt and inspection of a copy of all regulations pertaining to the operation of a short term lodging unit. J. Such other information as the Finance Director deems reasonably necessary to administer this chapter. 19-14 Ordinance No. 2020 - Page 8 of 18 5.95.035 Denial of Permit. If permits are available for issuance, no application filed by an owner for an annual permit or renewal of a permit for a unit eligible to be used as a short term lodging unit, as provided for in Section 5.95.015 and this Code, shall be denied unless: the owner does not have a current valid business license; the owner has failed to pay transient occupancy tax, the visitor service fee, a penalty, a fine or inspection cost, due and owing to the City; the nuisance response plan is deemed inadequate by the Finance Director; or the short term lodging permit for the same unit and issued to the same owner has been revoked. 5.95.040 Filing Fee. An application or renewal application for a short term lodging permit shall be accompanied by a fee established by resolution of the City Council, provided, however, the fee shall be no greater than necessary to defer the cost incurred by the City in administering the provisions of this chapter and for providing the answering service. 5.95.045 Conditions. A. All permits issued pursuant to this chapter are subject to the following standard conditions: 1. The owner shall prohibit a lessee of a lodging unit from renting the lodging unit to a transient user for a short term and from home -sharing. 2. The owner shall not rent a lodging unit to a transient user that is under the age of 21. 3. The owner shall enter into a written agreement with the transient user that requires: a. All persons residing in the short term lodging unit to live together as a single housekeeping unit; and b. Limits the overnight occupancy of the short term lodging unit to the maximum permitted by the Building Code and Fire Code. 4. The owner shall ensure that the transient user complies with all terms of the written agreement set forth in Subsection 5.95.045 A (3). 5. The owner shall use best efforts to ensure that the transient user, occupants and/or guests of the short term lodging unit do not create unreasonable noise or disturbances, engage in disorderly conduct, or violate provisions of this Code or any state or federal law pertaining to noise, disorderly conduct, the consumption of alcohol, or the use of illegal drugs. 19-15 Ordinance No. 2020 - Page 9 of 18 6. The owner shall, upon notification that any transient user, occupant and/or guest of his or her short term lodging unit has created unreasonable noise or disturbances, engaged in disorderly conduct or committed violations of this Code or any state or federal law pertaining to noise, disorderly conduct, the consumption of alcohol or the use of illegal drugs, promptly use best efforts to prevent a recurrence of such conduct by any transient user, occupant or guest. 7. The owner of the short term lodging unit shall use best efforts to ensure compliance with all the provisions of Title 6 of this Code. 8. The owner of the short term lodging unit shall provide the transient user with a copy of Sections 5.95.047, 10.28.007, 10.28.010, 10.28.020, 10.58.030, and 10.66.020 of this Code. 9. The owner of the short term lodging unit shall provide the transient user with a copy of the good neighbor policy created by the City and available on the City website, post a copy of the short term lodging permit and post a copy of the conditions set forth in this subsection in a conspicuous place within the unit. The notice shall be in substantial compliance with a template created by the City, which shall be available on the City website, and contain the following: a. The name of the local contact person(s) and phone number at which that person(s) may be reached on a twenty-four (24) hour basis. The local person(s) must be located within twenty-five (25) miles of the unit and shall respond to any call related to the unit within thirty (30) minutes; b. The number and location of onsite parking spaces; C. The street sweeping schedule for all public rights-of-way within three hundred (300) feet of the unit; d. The trash collection schedule for the unit, and the Code rules and regulations concerning the timing, storage and placement of trash containers and recycling requirements; e. Notification that no amplified sound or reproduced sound is allowed outside or audible from the property line between the hours of 10:00 p.m. and 10:00 a.m.; and f. Notification that any transient user, occupant or guest is responsible for all activities occurring on the property and that any transient user, occupant or guest may be cited and fined for creating a disturbance or violating any provision of this Code. 19-16 Ordinance No. 2020 - Page 10 of 18 10. With respect to any short term lodging unit that is located in any Safety Enhancement Zone, the owner of the unit and any agent retained by the owner shall take immediate action during the period that the Safety Enhancement Zone is in effect to prevent any transient user, occupant or guest from engaging in disorderly conduct or committing violations of this Code or state or federal law pertaining to noise, disorderly conduct, the consumption of alcohol or the use of illegal drugs. 11. The owner shall: a. Ensure that all transient occupancy taxes and visitor service fees are collected and remitted to the City and otherwise comply with all transient occupancy tax and visitor service fee requirements, as set forth in Chapters 3.16 and 3.28. b. If the owner uses an agent to collect and remit the transient occupancy tax and the visitor service fee, either voluntarily or as directed by the City, the owner shall be responsible for ensuring that the agent collects and remits the transient occupancy tax and the visitor service fee to the City pursuant to the requirements set forth in this chapter, Chapter 3.16 and Chapter 3.28. C. If the Finance Director directs, in writing, a hosting platform to collect and remit the transient occupancy tax and the visitor service fee, the owner shall: (i) be responsible for ensuring that the hosting platform collects and remits the transient occupancy tax and the visitor service fee to the City in accordance with this chapter, and (ii) when filing a return in accordance with Sections 3.16.070 and 3.28.040, the owner shall provide the City with a copy of all receipts showing the date the short term lodging unit was rented, the name of the hosting platform, the amount of transient occupancy tax and visitor service fee collected by the hosting platform, and proof that the transient occupancy tax and visitor service fee was remitted to the City. 12. The owner shall provide the City with the name and twenty-four (24) hour phone number of a local contact person(s) (who reside within twenty-five (25) miles of the property) who shall respond to contacts from the answering service, respond to any call related to the unit within thirty (30) minutes, and ensure compliance with this chapter in a timely manner. The owner or agent must provide a new local contact person and his or her phone number within five (5) business days, if there is a change in the local contact person(s). 13. The owner shall ensure that all available parking spaces onsite, which may include garage, carport, and driveway spaces, as well as tandem parking are available for the transient user, occupant or guest of the short term lodging unit. The owner shall disclose the number of parking spaces available onsite and shall inform the transient user, occupant and/or guest that street parking may not be available. 14. The owner shall maintain a valid business license and short term lodging permit when engaging in short term lodging. 19-17 Ordinance No. 2020 - Page 11 of 18 15. The owner shall include the City issued short term lodging permit number on all advertisements for the rental of the short term lodging unit and shall ensure the transient user is informed of the amount of the transient occupancy tax and visitor service fee prior to completion of the booking transaction. 16. The owner shall ensure that a permitted short term lodging unit is only used for residential purposes and not used for non-residential uses, including, but not limited to, large commercial or non-commercial gatherings, commercial filming and/or non -owner wedding receptions. 17. The owner shall ensure that no amplified sound, or reproduced sound is used outside or audible from the property line between the hours of 10:00 p.m. and 10:00 a.m. and that the transient user does not violate the requirements set forth in this chapter, Chapters 10.28, 10.58 and 10.66. 18. The owner shall comply with the nuisance response plan submitted with the application for a short term lodging permit and approved by the Finance Director. 19. The owner shall allow the City to inspect the short term lodging unit to confirm the number of bedrooms, gross floor area, and number/availability of parking spaces, seven (7) calendar days after the City serves the owner with a request for inspection in accordance with Section 1.08.090. If, based on the inspection, it is determined that the information submitted to the City in accordance with Section 5.95.030 was false, in addition to any other remedy set forth in this chapter, the owner agrees that the owner shall be liable for the cost of conducting the inspection. 20. The owner shall provide the City with a copy of any written rental agreement(s) and the good neighbor policy, within seven (7) calendar days after the City serves the owner with a notice of request for written rental agreements and the good neighbor policy in accordance with Section 1.08.090. B. The City Manager shall have the authority to impose additional standard conditions, applicable to all short term lodging units, as necessary to achieve the objectives of this chapter. C. The City Manager shall have the authority to impose additional conditions on any permit in the event of any violation of the conditions to the permit or the provisions of this chapter subject to compliance with the procedures specified in Section 5.95.065. 5.95.047 Violations of Permit Conditions by Transient User, Occupant or Guest. In addition to other provisions of this Code, it shall be unlawful for any transient user, occupant or guest of a short term lodging unit to - 19 -18 Ordinance No. 2020 - Page 12 of 18 A. Exceed the overnight occupancy limit designated for the short term lodging unit. B. Use street parking prior to utilizing all available onsite parking space(s) for the lodging unit. C. Place trash for collection in violation of this Code's rules and regulations concerning - 1 . oncerning: a. M,., 1. The timing, storage or placement of trash containers; or 2. Recycling requirements. D. Amplify or reproduce sound between the hours of 10:00 p.m. and 10:00 1. Outside of the lodging unit; or 2. That is audible from the property line for the lodging unit. E. Use the short term lodging for any non-residential purpose, including, but not limited to, large commercial or non-commercial gatherings, commercial filming and/or non -owner wedding receptions. 5.95.050 Agents and Hosting Platform Responsibilities. A. If directed to do so by the Finance Director, in writing, agents or hosting platforms shall: 1. Collect all applicable transient occupancy taxes and visitor service fees that are imposed on the transient, pursuant to Chapters 3.16 and 3.28, from the transient, or from the person paying for such rental, at the time payment for such rental is made; and 2. Remit to the City any transient occupancy taxes or visitor service fees collected by the hosting platform or agent to the City before the last day of the month following the close of each calendar quarter or on the day specified by the Finance Director if a different reporting period has been established. Hosting platforms shall not collect or remit such taxes unless expressly authorized to do so by the Finance Director, in writing. Nothing on this subsection shall be deemed to relieve an operator, as that term is defined in Sections 3.16.020 and 3.28.020, from complying with the requirements set forth in Chapters 3.16 and 3.28 of this Code, or to interfere with the ability of an agent or hosting platform and an owner to enter into an agreement regarding fulfillment of the requirements of this subsection. B. Subject to applicable laws, agents and hosting platforms shall disclose to the City on a regular basis each home -sharing and vacation rental listing located in the City, the names of the persons responsible for each such listing, the address of each such listing, the length of stay for each such listing and the price paid for each stay. 19-19 Ordinance No. 2020 - Page 13 of 18 C. Agents and hosting platforms: 1. Shall prompt any person utilizing their advertising services to include the City -issued registration number in their listing(s), in a format designated by the City and shall not advertise any short term lodging unit where a registration number is not provided. Upon notice from the City that a listing is non-compliant, agents and hosting platforms shall cease any short-term rental booking transactions for said listing(s) within five (5) business days. An agent or hosting platform shall not complete any booking transaction for any short term lodging unit subject to a City notice that a unit is non- compliant, until notified by the City that the short term lodging unit follows the local registration requirement. 2. Shall not collect or receive a fee, directly or indirectly for facilitating or providing services ancillary to an unpermitted short term lodging unit including, but not limited to, insurance, concierge services, catering, restaurant bookings, tours, guide services, entertainment, cleaning, property management, or maintenance of the short term lodging unit. D. A hosting platform operating exclusively on the internet, which operates in compliance with subsection (A), (B), and (C) above, shall be presumed to be in compliance with this chapter, except that the hosting platform remains responsible for compliance with the administrative subpoena provisions of this chapter. E. The provisions of the section shall be interpreted in accordance with otherwise applicable state and federal law(s) and will not apply if determined by the City to be in violation of, or preempted by, such law(s). 5.95.055 Issuance of Administrative Subpoenas. The City Manager shall have the authority to issue and serve administrative subpoenas to the owner, agent or hosting platform, as necessary, to obtain specific information regarding short term rental listings located in the City, including but not limited to, the names of the persons responsible for each such listing, the address of each such listing, the length of stay for each such listing and the price paid for each stay, to determine whether the short term rental listing complies with this chapter. Any subpoena issued pursuant to this section shall not require the production of information sooner than thirty (30) calendar days from the date of service. A person that has been served with an administrative subpoena may seek judicial review during that thirty (30) calendar day period. Failure to respond to an administrative subpoena in accordance with the terms set forth therein shall be punishable in accordance with Section 5.95.060 and the City may file a judicial action to compel compliance with the subpoena. 19-20 Ordinance No. 2020 - Page 14 of 18 5.95.460 Violations, Penalties and Enforcement. A. It shall be unlawful for any person to violate any provisions or to fail to comply with any of the requirements of this chapter. B. In addition to, or separate from, the foregoing criminal penalties, any person violating any of the provisions or failing to comply with any of the requirements of this chapter is subject to the issuance of an administrative citation pursuant to the provisions of Section 1.04.010(E) and Chapter 1.05. 5.95.065 Suspensions and Revocations. In addition to any fine or penalty that may be imposed pursuant to any provision of this Code including, but not limited to Section 5.95.060, a short term lodging permit for a unit may be suspended or revoked as provided in this section. A. Suspensions/Revocations. 1. Except as otherwise provided in this subsection, if any person violates a short term lodging permit condition two (2) or more times in any twelve (12) month period or any other provision of this Code, state law or federal law, two (2) or more times in any twelve (12) month period, and the violation relates in any way to the unit that has a short term lodging permit, the short term lodging permit for the unit may be suspended for a period of six (6) months in accordance with subsection (B). 2. In the case of a short term lodging permit for a unit that is located in a Safety Enhancement Zone, if there is a violation of any provision of this Code during the period that the Safety Enhancement Zone is in effect, the short term lodging permit for the unit may be suspended for a period of one (1) year or revoked in accordance with subsection (B). 3. If a lodging unit that is subject to a short term lodging permit has been the location of two or more loud or unruly gatherings, as defined in Chapter 10.66 of this Code, while the lodging unit was occupied on a short term basis, within any twenty-four (24) month period, the permit may be suspended for a period of one (1) year or revoked in accordance with the subsection (B). A loud or unruly gathering that occurred prior to the passage of fourteen (14) calendar days from the mailing of notice to the owner in compliance with Section 10,66.030(D) shall not be included within the calculation of the two or more loud or unruly gatherings required to revoke a short term lodging permit. 4. If a person violates Section 5.95.020 regarding any unit that has had a short term lodging permit suspended pursuant to subsection (B), the short term lodging permit for the unit may be revoked in accordance with subsection (B). 5. If any person violates a short term lodging permit condition or any other provision of this Code, state or federal law within six (6) months of having a previously 19-21 Ordinance No. 2020 - Page 15 of 18 suspended short term lodging permit reinstated for a unit, and the violation relates in any way to the unit that has the short term lodging permit, the short term lodging permit for the unit may be revoked in accordance with subsection (B). 6. If any person violates a short term lodging permit condition three (3) or more times in any twelve (12) month period or provision of this Code, state or federal law three (3) or more times in any twelve (12) month period, and the violation relates in any way to the unit that has a short term lodging permit, the short term lodging permit for the unit may be revoked in accordance with subsection (B). 7. If any person fails to collect and remit transient occupancy tax or the visitor service fee in accordance with the requirements of this chapter, Chapters 3.16 or 3.28 in regards to any unit that has a short term lodging permit, two (2) or more times within any thirty six (36) month period, the short term lodging permit for the unit may be revoked in accordance with subsection (B). 8. If any person is determined to have provided false information on an application for an annual short term lodging permit, or renewal thereof, the short term lodging permit for the unit may be revoked in accordance with subsection (B). B. Permits shall be suspended or revoked, only in the manner provided in this section. 1. The Finance Director shall investigate whenever he or she has reason to believe that an owner has submitted an application that contains false information or committed a violation of a permit condition, this Code, state or federal law related to a permitted unit. Such investigation may include, but is not limited to, on-site property inspections. Should the investigation reveal substantial evidence to support a finding that warrants a suspension or revocation of the short term lodging permit, the Finance Director shall issue written notice of intention to suspend or revoke the short term lodging permit. The written notice shall be served on the owner in accordance with Section 1.08.080, and shall specify the facts which, in the opinion of the Finance Director constitute substantial evidence to establish grounds for imposition of the suspension and/or revocation, and specify the proposed time the short term lodging permit shall be suspended and/or that the short term lodging permit shall be revoked within thirty (30) calendar days from the date the notice is given, unless the owner files, before the suspension and/or revocation becomes effective, a request for hearing before a hearing officer, who shall be retained by the City, and pays the fee for the hearing established by resolution of the City Council. 2. If the owner requests a hearing and pays the hearing fee, established by resolution of the City Council, within the time specified in subsection (13)(1), the Finance Director shall serve written notice on the owner, pursuant to Section 1.08.080, setting forth the date, time and place for the hearing. The hearing shall be scheduled not less than fifteen (15) calendar days, nor more than sixty (60) calendar days, from the date on 19-22 Ordinance No. 2020 - Page 16 of 18 which notice of the hearing is served by the Finance Director. The hearing shall be conducted according to the rules normally applicable to administrative hearings. At the hearing, the hearing officer will preside over the hearing, take evidence and then submit proposed findings and recommendations to the City Manager. The City Manager shall suspend or revoke the short term lodging permit only upon a finding that a violation has been proven by a preponderance of the evidence, and that the suspension or revocation is consistent with the provisions of this section. The City Manager shall render a decision within thirty (30) calendar days of the hearing and the decision shall be final. C. If a short term lodging permit is suspended, it shall be the owner's responsibility to vacate any future bookings and remove all advertisements related to the short term rental of the unit during the term of the suspension. If a short term lodging permit is revoked, it shall be the owner's responsibility to vacate any future bookings and remove all advertisements related to the short term rental of the unit. D. After any suspension, the owner may reapply for reinstatement of the short term lodging permit which shall be processed in accordance with Section 5.95.030, provided the owner has paid the City all amounts owed the City in accordance with this chapter and Chapters 3.16 and 3.28 of this Code. 5.95.070 Permits and Fees Not Exclusive. Permits and fees required by this chapter shall be in addition to any license, permit or fee required under any other chapter of this Code. The issuance of any permit pursuant to this chapter shall not relieve the owner of the obligation to comply with all other provisions of this Code including, but not limited to, those provisions pertaining to the use and occupancy of the lodging unit or the property on which it is located as well as the collection and remittance of transient occupancy taxes and visitor service fees in accordance with this chapter and Chapters 3.16 and 3.28. 5.95.080 License and Permit Closure. A. Any owner that has ceased operating a short term lodging unit shall inform the Finance Director in writing of the date of the last rental, and having done such, the short term lodging permit shall be closed. The City will send a final transient occupancy tax and visitor service fee bill, which will be due and payable thirty (30) days from the date of the invoice. B. The Finance Director shall close any permit that has no short term lodging activity for a period of two consecutive years by remitting zero dollars on the required transient occupancy tax and visitor service fee forms and or has failed to return the transient occupancy and visitor service forms. After any permit closure pursuant to this subsection, the owner may reapply for reinstatement of the short term lodging permit which shall be processed in accordance with Section 5.95.030. 19-23 Ordinance No. 2020 - Page 17 of 18 Section 3: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion of this ordinance. Section 4: If any section, subsection, sentence, clause or phrase of this 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 ordinance. The City Council hereby declares that it would have passed this 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 5: The City Council finds the introduction and adoption of this ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant to 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. Section 6: Except as expressly modified in this ordinance, all other Sections, Subsections, terms, clauses and phrases set forth in the Newport Beach Municipal Code shall remain unchanged and shall be in full force and effect. 19-24 Ordinance No. 2020 - Page 18 of 18 Section 7: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be published pursuant to City Charter Section 414. This ordinance shall become effective thirty (30) days after the adoption of this ordinance. This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 23rd day of June, 2020, and adopted on the 14th day of July, 2020, by the following vote, to -wit: AYES: NAYS: ABSENT: RECUSED: WILL O'NEILL, MAYOR ATTEST: LEILANI I. BROWN, CITY CLERK APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE AARON C. HARP, CITY ATTORNEY 19-25 ATTACHMENT B 3.16.060 Registration of Hotel. Within thirty (30) days after commencing business each operator of any hotel renting occupancy to transients shall register the hotel with the Finance Director and obtain a "transient occupancy registration certificate" to be at all times posted in a conspicuous place on the premises. The certificate shall, among other things, state the following: A. The name of the operator; B. The address of the hotel; C. The date upon which the certificate was issued; and D. The following statement: This transient occupancy registration certificate signifies that the person named on the certificate has fulfilled the requirements of the Uniform Transient Occupancy Tax Ordinance (Chapter 3.16 of the Newport Beach Municipal Code) by registering with the Finance Director for the purpose of collecting the tax from transients and remitting the tax to the Finance Director. This certificate does not authorize any person to conduct any unlawful business, to conduct any lawful business in an unlawful manner or to operate a hotel without strictly complying with all local laws, including those requiring a permit from any board, commission, department or office of the City. This certificate does not constitute a permit. The requirements of this section shall not apply to the operator of a hotel required to obtain a short term lodging permit pursuant to Section 5.95.020. 19-26 Chapter 5.95 SHORT TERM LODGING PERMIT Sections: 5.95.005 Purpose and Findings. 5.95.010 Definitions. 5.95.015 Residential Properties Eliaible for Short Term Lodaina Permits. 5.95.020 Permit Required. 5.95.025 Agency. 5.95.030 Application -Rt for Permit. 5.95.035 Denial of Permit. 5.95.040 Filing Fee. 5.95.050 GGRditiE)R&-. 5.Q� X0605.95.045 Conditions. 5.95.047 Violations/ of Permit Conditions by Transient User, Occupant or Guest. 5.95.050 Agent and Hosting Platform Responsibilities. 5.95.055 Issuance of Administrative Subpoenas. 5.95.060 Violations, Penalties and Enforcement. F 95 065 Preyed pro fnr Impesitinn of Pena Itie /ReVeGatinn v�wv 595.070 Pe x5.95.065 Suspensions and Revocations. 5.95.070 Permits and Fees Not Exclusive. 5.95.080 P8Ralty. 5.95.090 /gym ozatinn and /amnesty Per�aLicense and Permit Closure. 5.95.005 Purpose and Findings. The City Council of the City of Newport Beach finds and declares as follows: A. An ever --increasing number of tourists renting short term lodging units is severely eSGala+innincreasing the demand for City services and creating adverse impacts in residential zones. B. Several Over a thousand dwelling units within residential zones near the City's beaches and harbor are rented for less than thirty (30) consecutive calendar days with the vast majority of those rentals occurring during the summer when the demand for parking and City services is the greatest. C. _Many of the occupants of short term lodging units are permanent; residents of areas distant from Newport Beach and the City has no effective way to prevent occupants from continuing to violate provisions of the Muni„ipa this Code and the Penal Code 19-27 relating to noise, disturbances and disorderly conduct. The only effective way to minimize the problems associated with occupancy of short term lodging units is to impose responsibility on the owner of the property, either personally or through an agent, to control the conduct of guests and occupants. D. Numerous incidents involving excessive noise, disorderly conduct, vandalism, overcrowding, traffic congestion, illegal vehicle parking and accumulation of refuse are directly related to short term lodging units, which increasingly require response from police, fire, paramedic and other City services. E.— The increase in demand for City services resulting from short term le slodging units' overburdens; and threatens, the City's ability to provide suGhnecessarV services. F. Many short term lodgir gslodging units are operated by agents and/or absentee owners who exercise little or no supervision or control of occupants. G G. There has been an increase in the number of lodging units booked on a short term basis where the owner of the unit does not have a short term lodging permit, affecting the ability of the City to properly regulate the impacts caused by the illegal operation. H. There has been an increase in the number of lodging units booked on a short term basis where the owner of the property has not taken steps to ensure the transient occupancy tax and visitor service fee is collected and/or remitted to the City, resulting in an unfair business advantage to these illegal operations and loss of revenue necessary to provide City services. I. Problems with short term lodgings are particularly acute in residential districts where the peace, safety and general welfare of the long term residents a-reis threatened. J. To ensure the effective enforcement of this Code, it is necessary to have the owner include the short term lodging permit number issued by the City on all advertisements for a short term lodging unit so the transient user knows the owner is authorized to rent the lodging unit on a short term basis. K. To ensure the transient user knows the total cost associated with renting the lodging unit and to prevent fraud, it is necessary for the owner to make sure the transient user is informed of the amount of the transient occupancy tax and visitor service fee prior to completing a booking transaction. 19-28 L. The restrictions of this chapter are necessary to preserve the City's housing stock, the quality and character of the City's residential neighborhoods as well as to prevent the continued burden on City services and adverse impacts on residential neighborhoods posed by short term lodgings. (Ord. 92-13 § 3 (part), 92) 5.95.010 Definitions. For the purpose of this chapter, the following definitions shall apply: A. "Accessory dwelling unit" shall have the same definition as set forth in Chapter 20.70 of Title 20 of this Code. B. "Agent" shall mean any person who is authorized in writing by the owner to represent and act for an owner. C. "Booking transaction" shall mean any reservation or payment service provided by a person who facilitates a short term lodging rental transaction between a transient user and owner for the use of a unit for a period of less than thirty (30) consecutive calendar days. D. "City Manager" shall mean the City Manager of the City or his or her designee. E. "Finance Director" shall mean the Finance Director of the City or his or her designee. F. "Gross floor area," shall mean the area of the lodging unit that includes the surrounding exterior walls and any interior finished portion of a structure that is accessible and that measures more than six feet from finished floor to ceiling. Stairwells and elevator shafts above the first level shall be excluded from the calculation of gross floor area. G. "Home -sharing" shall mean an activity whereby the owner hosts a transient user in the owner's lodging unit, for compensation, for periods of less than thirty (30) consecutive calendar days, during which time the owner of the unit lives onsite, in the unit, throughout the transient user's stay and the owner, the transient user and any other occupants live together in the same unit as a single housekeeping unit. H. "Hosting platform" shall mean a person, other than an owner or agent, who participates in the short term lodging business by facilitating a booking transaction using anv medium of facilitation. "Lodging unit" or "unit" shall mean a "dwelling unit" as that term is defined in T44e 19-29 Chapter 20.70, of Title 20 of this Code. An accessory dwelling unit shall not be considered a lodging unit or unit for purposes of this chapter. J. "Owner" shall mean the person(s) or en+ity(mec that hold(s) legal and/or equitable title to the lodging unit. C. "Shertter�.�llll Fn an GGGUpanGy of a ledging unit fer a noried ref thirty (30) nensen„+iye nelendar days er leK. "Person" shall mean any individual and any form of business entity including, but not limited to, all domestic and foreign corporations, associations, syndicates, joint stock corporations, partnerships of every kind, clubs, business or common law trusts, societies, or limited liability companies. L. "Residential district" shall mean those areas of the City so designated by Title 20 of the Muni^in l Gedethis Code as well as anv other area in the Citv desianated for a residential use as part of a Planned Communitv Development Plan. Specific Area Plan or Planned Residential District. G "Gity Manage M. "Short term" shall mean a lodging unit that is rented or leased as a single housekeeping unit for a period of less than thirty (30) consecutive calendar days. This also includes home -sharing. N. "Short term lodging unit registry" shall mean the published registry maintained by the City that sets forth a list of Newport Reanh or his or her recnentiV— occi`vneeo F. FnnanGe DireGter" shall Fneai4all owners and the Finan^o DireGte address of the of N eaGh or his er her R8e(Ord. 2013 11 § 27, 2013; Ord. 2008 5 20, 2008; Ord. 92 992/ Ne ewner ef a ledging unit IGGated within a residential diStFiGt shall rent that Unit fer a shert term with e..+all units that have a valid short term lodging permit and business license with the City, a copy of which is available, without charge, to any person who requests a copy and which shall be accessible on the City's website. O. "Single housekeeping unit" shall have the same definition as set forth in Chapter 20.70 of Title 20 of this Code. P. "Transient" or "Transient user" shall mean any person or persons who, for any period less than thirty (30) consecutive calendar days either at his or her own expense, 19-30 or at the expense of another, obtains lodging in a lodging unit or the use of any lodging space in any unit, for which lodging or use of lodging space a charge is made. 5.95.015 Residential Properties Eligible for Short Term Lodging Permits. Only properties in a residential district that are authorized under Titles 20 and 21 of this Code and},�tthii�:�l.,,� this chapter ,, apter shall be eligible for a short term lodging permit` feF that n;+ ed piu nrsuarRt tCan+ Ne. Subsequent to June 1, 2004, no annual permit shall be issued subsequent to june 1, 2004 eor renewed for any dwelling unit on any parcel zoned for "Single-family Residential (R-1)" or that is designated for a single-family residential use as part of a Planned Community Development Plan, Specific Area Plan or Planned Residential District unless a permit has previously been issued for that dwellipglodging unit and the permit was not subsequently revoked. (Ord. 004.6 § 1, 2004: Ord 92 13 § 3�n�), 1 99 5.95.020 Permit Required. No owner of a lodging unit shall advertise for rent or rent a lodging unit located within a residential district for a short term without a valid short term lodging permit for that unit issued pursuant to this chapter. 5.95.025 Agency. An owner may retain an agent er a representative to comply with the requirements of this chapter, including, without limitation, the filing of an application for a short term lodging permit, the management of the short term lodging unit or units, and the compliance with the conditions to the short term lodging permit. The permit shall be issued only to the owner of the short term lodging unit or units. The owner of the short term lodging unit or units is responsible for compliance with the provisions of this chapter and the failure of an agent to comply with this chapter shall be deemed non-compliance by the owner. (Ord. 9213 § 3(n'�c), 1r99�� 5.95.030 ApplicantApplication for Permit. An application for aan annual short term lodging permit, or renewal thereof, shall be filed with the Finance Director upon forms provided by the City and shall contain the following information: A. The name, address and telephone number of the owner of the unit for which the short term lodging permit is to be issued. 19-31 B. The name, address and telephone number of the agent, if any, of the owner of the unit. C. Evidence of a valid business license issued by the City for the separate business of operating a short term ledgiagslodging unit or units. D. EyOdenGe The number of a valid transient r.nnUn�nnI ronic+}ratmen nor+ifiGate 0ss Corr by the iiity fir bedrooms in the lodging unit. l=E. The gross floor area of the lodging unit. F. The number of parking spaces available onsite and a description indicating the location and size of each parking space. G. A nuisance response plan, which sets forth the owner's plan for handling disruptive guests. H. A certification that the applicant has reviewed the covenants, conditions and restrictions, if any, and a short term use is permitted at the location pursuant to the terms of the covenants. conditions and restrictions. if anv. I. Acknowledgement of receipt and inspection of a copy of all regulations pertaining to the operation of a short term lodging unit. l=J. Such other information as the Finance Director deems reasonably necessary to administer this chapter. (Ord. 92 13 § 3 (pa °2-) 5.95.035 Denial of Permit. Nelf permits are available for issuance, no application filed by an owner for an annual permit or renewal of a permit for a unit eligible to be used as a short term lodging unit, as provided for in Section 5.95.015 and this Code, shall be denied unless a normit fG : the owner does not have a current valid business license; the owner has failed to pay transient occupancy tax, the visitor service fee, a penalty, a fine or inspection cost, due and owing to the City; the nuisance response plan is deemed inadequate by the Finance Director; or the short term lodging permit for the same unit and issued to the same owner has been revokedpursuarnt to SeEt+en 5.95.065 ref this Ghapter. (Ord. 92 13 § 3 /nom 19923_ 5.95.040 Filing Fee. 19-32 ARM application or renewal application for a short term lodging permit shall be accompanied by a fee established by resolution of the City Council, provided, however, the fee shall be no greater than necessary to defer the cost incurred by the City in administering the provisions of this chapter. (Ord. 92-13 § 3 (part) 992) and for providing the answerina service. 5.95.0590 Conditions. A. All permits issued pursuant to this chapter are subject to the following standard conditions: 1. The owner shallT-byprohibit a lessee of a lodging unit from renting the lodging unit to a transient user for a short term and from home -sharing. 2. The owner shall not rent a lodging unit to a transient user that is under the age of 21. 3. The owner shall enter into a written or orallagreement t with the transient user that requires: a. All persons residing in the short term lodging unit to live together as a single housekeeping unit; and b. Limits the overnight, occupancy of the short term lodging unit to a spenifin number of en pants with the number of en panto net to need that .��Tu,,,,��Q�c���� �o�c���e�c��the maximum permitted by the nrevioieno of Title 15 efvf the Ne pert BQeaGh nn niGpaTBuildin Code.. and Fire Code. 4. The owner shall ensure that the transient user complies with all terms of the written agreement set forth in Subsection 5.95.045 A (3). 5. The owner shall use best efforts to ireensure that the transient user, occupants and/or guests of the short term lodging unit do not create unreasonable noise or disturbances, engage in disorderly conduct, or violate provisions of this eedeCode or any Stage Lastate or federal law pertaining to noise, disorderly conduct, the consumption of alcohol, or the use of illegal drugs. 36. The owner shall, upon notification that e^^tsany transient user, occupant and/or guest&guest of his or her short term lodging unit havehas created unreasonable noise or disturbances, engaged in disorderly conduct or committed violations of this eedeCode or State —Lawany state or federal law pertaining to noise, disorderly conduct, the consumption of alcohol or the use of illegal drugs, promptly use 19-33 best efforts to prevent a recurrence of such conduct by those occ marts or guests -any transient user, occupant or quest. 47. The owner of the short term lodging unit shall use best efforts to ,ureensure compliance with all the provisions of Title 66 of the MuniGiparthis Code 58. The owner of the short term lodging unit shall provide the transient user with a copy of Sections 5.95.047, 10.28.007, 10.28.010, 10.28.020, 10.58.030, and 10.66.020 of this Code. 9. The owner of the short term lodging unit shall provide the transient user with a copy of the good neighbor policy created by the City and available on the City website, post a copy of the short term lodging permit and post a copy of the conditions set forth in this seEtiensubsection in a conspicuous place within the unit. The notice shall be in substantial compliance with a template created by the Citv. which shall be available on the City website, and contain the following: a. 6—The name of the local contact person(s) and phone number at which that person(s) may be reached on a twenty-four (24) hour basis. The local person(s) must be located within twenty-five (25) miles of the unit and shall respond to any call related to the unit within thirty (30) minutes; b. The number and location of onsite parking spaces; C. The street sweeping schedule for all public rights-of-way within three hundred (300) feet of the unit; d. The trash collection schedule for the unit, and the Code rules and regulations concerning the timing, storage and placement of trash containers and recycling requirements; e. Notification that no amplified sound or reproduced sound is allowed outside or audible from the property line between the hours of 10:00 p.m. and 10:00 a.m.; and f. Notification that any transient user, occupant or quest is responsible for all activities occurring on the property and that any transient user, occupant or quest may be cited and fined for creatina a disturbance or violatina anv provision of this Code. 19-34 10. With respect to any short term lodging unit that is located in any Safety Enhancement Zone, the owner of the unit and any agent retained by the owner shall take immediate action during the period that the Safety Enhancement Zone is in effect to prevent ^^^vccapantsany transient user, occupant or guestsguest from engaging in disorderly conduct or committing violations of this eodeCode or State state or federal law pertaining to noise, disorderly conduct, the consumption of alcohol or the use of illegal drugs. 11. The owner shall: a. Ensure that all transient occupancy taxes and visitor service fees are collected and remitted to the City and otherwise comply with all transient occupancy tax and visitor service fee requirements, as set forth in Chapters 3.16 and 3.28. b. If the owner uses an agent to collect and remit the transient occupancy tax and the visitor service fee, either voluntarily or as directed by the City, the owner shall be responsible for ensuring that the agent collects and remits the transient occupancy tax and the visitor service fee to the City pursuant to the requirements set forth in this chapter, Chapter 3.16 and Chapter 3.28. C. If the Finance Director directs, in writing, a hosting platform to collect and remit the transient occupancy tax and the visitor service fee, the owner shall: (i) be responsible for ensuring that the hosting platform collects and remits the transient occupancy tax and the visitor service fee to the City in accordance with this chapter; and (ii) when filing a return in accordance with Sections 3.16.070 and 3.28.040, the owner shall provide the City with a copy of all receipts showing the date the short term lodging unit was rented, the name of the hosting platform, the amount of transient occupancy tax and visitor service fee collected by the hosting platform, and proof that the transient occupancy tax and visitor service fee was remitted to the City. 12. The owner shall provide the City with the name and twenty-four (24) hour phone number of a local contact person(s) (who reside within twenty-five (25) miles of the property) who shall respond to contacts from the answering service, respond to any call related to the unit within thirty (30) minutes, and ensure compliance with this chapter in a timely manner. The owner or agent must provide a new local contact person and his or her phone number within five (5) business days, if there is a change in the local contact Person(s). 13. The owner shall ensure that all available Darkina spaces onsite. which m include garage, carport, and driveway spaces, as well as tandem parking are available for the transient user. occuaant or auest of the short term lodaina unit. The owner shall 19-35 disclose the number of parking spaces available onsite and shall inform the transient user occupant and/or quest that street parking may not be available. 14. The owner shall maintain a valid business license and short term lodging permit when engaging in short term lodging. 15. The owner shall include the City issued short term lodging permit number on all advertisements for the rental of the short term lodging unit and shall ensure the transient user is informed of the amount of the transient occupancy tax and visitor service fee prior to completion of the booking transaction. 16. The owner shall ensure that a permitted short term lodging unit is only used for residential purposes and not used for non-residential uses, including, but not limited to, large commercial or non-commercial gatherings, commercial filming and/or non -owner wedding receptions. 17. The owner shall ensure that no amplified sound, or reproduced sound is used outside or audible from the property line between the hours of 10:00 p.m. and 10:00 a.m. and that the transient user does not violate the requirements set forth in this chapter, Chapters 10.28. 10.58 and 10.66. 18. The owner shall comply with the nuisance resaonse plan submitted with the application for a short term lodging permit and approved by the Finance Director. 19. The owner shall allow the City to inspect the short term lodging unit to confirm the number of bedrooms, gross floor area, and number/availability of parking spaces, seven (7) calendar days after the City serves the owner with a request for inspection in accordance with Section 1.08.090. If, based on the inspection, it is determined that the information submitted to the City in accordance with Section 5.95.030 was false, in addition to any other remedy set forth in this chapter, the owner agrees that the owner shall be liable for the cost of conducting the inspection. 20. The owner shall provide the City with a copy of any written rental agreement(s) and the good neighbor policy, within seven (7) calendar days after the City serves the owner with a notice of request for written rental agreements and the good neighbor policy in accordance with Section 1.08.090. B. The City Manager shall have the authority to impose additional standard conditions, applicable to all short term lodging units, as necessary to achieve the objectives of this chapter. C. The City Manager shall have the authority to impose additional conditions on any permit in the event of any violation of the conditions to the permit or the provisions 19-36 of this chapter subject to compliance with the procedures specified in Section 5.°� X065. (,2903-5 §0,2-003: n� 9i13 § 3 spa 92)5.95.065. 5.95.069047 Violations Penaltmes/ReVeGatmen. of Permit Conditions by Transient User, Occupant or Guest. In addition to other Drovisions of this Code. it shall be unlawful for anv transient user occupant or quest of a short term lodging unit to: A. Exceed the overnight occupancy limit designated for the short term lodging unit. B. Use street parking prior to utilizing all available onsite parking space(s) for the lodging unit. C. Place trash for collection in violation of this Code's rules and regulations concerning: The timing, storage or placement of trash containers; or 2. Recycling requirements. D. AmDlifv or rearoduce sound between the hours of 10:00 a.m. and 10:00 a.m.: 1. Outside of the lodging unit; or 2. That is audible from the property line for the lodging unit. E. Use the short term lodging for any non-residential purpose, including, but not limited to, large commercial or non-commercial gatherings, commercial filming and/or non -owner wedding receptions. 5.95.050 Agents and Hosting Platform Responsibilities. A. If directed to do so by the Finance Director, in writing, agents or hosting platforms shall: 1. Collect all applicable transient occupancy taxes and visitor service fees that are imposed on the transient, pursuant to Chapters 3.16 and 3.28, from the transient, or from the person paving for such rental, at the time payment for such rental is made; and 19-37 Remit to the Citv anv transient occuoancv taxes or visitor service fees collected by the hosting platform or agent to the City before the last day of the month following the close of each calendar quarter or on the day specified by the Finance Director if a different reporting period has failed ply With the Standard-GeRdit;e;s speEifiedbeen established. Hosting platforms shall not collect or remit such taxes unless expressly authorized to do so by the Finance Director, in writing. Nothing on this subsection shall be deemed to relieve an operator, as that term is defined in Sections 3.16.020 and 3.28.020, from complying with the requirements set forth in Chapters 3.16 and 3.28 of this Code, or to interfere with the ability of an agent or hosting platform and an owner to enter into an agreement regarding fulfillment of the requirements of this subsection. B. Subject to applicable laws, agents and hosting platforms shall disclose to the City on a regular basis each home -sharing and vacation rental listing located in the City, the names of the persons responsible for each such listing, the address of each such listing, the length of stay for each such listing and the price paid for each stay. C. Agents and hosting platforms: 1. Shall prompt any person utilizing their advertising services to include the City -issued registration number in their listing(s), in a format designated by the City and shall not advertise any short term lodging unit where a registration number is not provided. Upon notice from the City that a listing is non-compliant, agents and hosting platforms shall cease any short-term rental booking transactions for said listing(s) within five (5) business days. An agent or hosting platform shall not complete any booking transaction for any short term lodging unit subject to a City notice that a unit is non-compliant, until notified by the City that the short term lodging unit follows the local registration requirement. 2. Shall not collect or receive a fee, directly or indirectly for facilitating or providing services ancillary to an unpermitted short term lodging unit including, but not limited to, insurance, concierge services, catering, restaurant bookings, tours, guide services, entertainment, cleaning, property management, or maintenance of the short term lodging unit. D. A hosting platform operating exclusively on the internet, which operates in compliance with subsection (A), (B), and (C) above, shall be presumed to be in compliance with this chapter, except that the hosting platform remains responsible for compliance with the administrative subpoena provisions of this chapter. 19-38 E. The provisions of the section shall be interpreted in accordance with otherwise applicable state and federal law(s) and will not apply if determined by the City to be in violation of, or preempted by, such law(s). 5.95.055 Issuance of Administrative Subpoenas. The City Manager shall have the authority to issue and serve administrative subpoenas to the owner, agent or hosting platform, as necessary, to obtain specific information regarding short term rental listings located in the City, including but not limited to, the names of the persons responsible for each such listing, the address of each such listing, the length of stay for each such listing and the price paid for each stay, to determine whether the short term rental listing complies with this chapter. Any subpoena issued pursuant to this section shall not require the production of information sooner than thirty (30) calendar days from the date of service. A person that has been served with an administrative subpoena may seek judicial review during that thirty (30) calendar day period. Failure to respond to an administrative subpoena in accordance with the terms set forth therein shall be punishable in accordance with Section 5.95.nF�060 and the City may file a judicial action to compel compliance with the subpoena. 5.95.060 Violations, Penalties and Enforcement. A. It shall be unlawful for any person to violate any provisions or to fail to comply with any of the requirements of this chapter. B. mho owner has foilorJIn addition to, or separate from, the foregoing criminal penalties, any person violating any of the provisions or failing to comply with ^^s �sed-by the G ty " g�any of the requirements of this chapter is subject to the issuance of an administrative citation pursuant to the provisions of Section 5.95.050(B) or (C-Y,1.04.010(E) and Chapter 1.05. `d. The E)WR r has wilfully yiGloted the PFOVISOORS of this G- aptep,-.GF 4 The ewnor has foiled5.95.065 Suspensions and Revocations. In addition to pay the transient GGGU , tax required by Chapter 3.16any fine or Penalty that may be imposed pursuant to any provision of this Code. - S. Penalties. The penal including, but not limited to Section 5.95.060, a short term lodging permit for violations SpeGifie a unit may be suspended or revoked as provided in subsentien (A) of this section shall be as follows: 1 . For the first y'olot'OR withiRA. Susaensions/Revocations. Except as otherwise provided in this subsection. if anv person violates a short term lodging permit condition two (22) or more times in any twelve (12) month period, the penalty 19-39 shall raRge from a notiGe of violatiOR to a fine not to exGeed two hURdred and fifty dollars ($250.T 2. Foo a se^o"'cvnd violation �„ n or any other provision of this Code, state law or federal law, two (2) or more times in any twelve (12) month period, the en�hall raRge from a fine not to evneed fide hunrJ red dollars ($500.00) to reyGGation of the permit• , 3. Fe and the violation relates in anyway to the unit that has a short term lodging permit, the short term lodging permit for the unit may be suspended for a twelve (12) month period, the penalty shall raRge from a fine not to evneed one thou isand dollars epermit;00) te F8VOGatiOR of the and 4 For a fey firthynelatien within any twelve (12) month period the permit shall he Teed— of six (6) months in accordance with the previsions e f SeGtOOR 5.°�5.subsection (B). G—.2. In the case of a short term lodging permit for a dwelt+rgunit that is located in a Safety Enhancement Zone, the PeRalt F;� failure to comply with an i st��d eeaditie+-if there is a violation of any N provision of this Code during the period that the Safety Enhancement Zone is in effect($1,000.00) the short term lodging permit for the unit may be suspended for a period net le.rsi than sixty (60) da ,sof one (1) year or revoked in accordance with subsection (B). D. ReVOGatien for Loud d or Unruly uli Gatherinrr 3. If a lodging unit that is subject to a short term lodging permit has been the location of threetwo or more loud or unruly gatherings, as defined in Chapter 10.66 of this Code, while the lodging unit was occupied on a short term basis within any twenty-four (24) month period, the permit s#afimay be suspended for a period of one (1)year or revoked.- in accordance with the subsection (B). A loud or unruly gathering that occurred prior to the passage of fourteen (14) calendar days from the mailing of notice to the owner in compliance with Section 10.66.030(D) shall not be included within the calculation of the threetwo or more loud or unruly gatherings required to revoke a short term lodging permit. (Ord. 2011 13 § 2 spa nnn G nnn ��r})1 p , 201 1 : Ord. 2003-5 §1 2003: n�i�3§ (part), 5 95 065 Prol+ed ire fer Imposition of Pena lties/QeVenatien Penalties, finely Jinn a netinen If a person violates Section 5.95.020 regarding any unit that has had a short term lodging permit suspended pursuant to subsection (B), the short term lodaina permit for the unit may be revoked in accordance with subsection MW 5. If any person violates a short term lodging permit condition or any other provision of this Code, state or federal law within six (6) months of having a previously suspended short term lodging permit reinstated for a unit, and the violation; relates in any 19-40 way to the unit that has the short term lodging permit, the short term lodging permit for the unit may be revoked in accordance with subsection (B). 6. If anv person violates a short term lodaina permit condition three (3) or more times in any twelve (12) month period or provision of this Code, state or federal law three (3) or more times in any twelve (12) month period, and the violation relates in any way to the unit that has a short term lodging permit, the short term lodging permit for the unit may be revoked in accordance with subsection (B). 7. If any person fails to collect and remit transient occupancy tax or the visitor service fee in accordance with the requirements of this chapter, Chapters 3.16 or 3.28 in regards to any unit that has a short term lodging permit, two (2) or more times within any thirty six (36) month period, the short term lodging permit for the unit may be revoked in accordance with subsection (B). 8. If anv person is determined to have provided false information on an application for an annual short term lodging permit, or renewal thereof, the short term lodging permit for the unit may be revoked in accordance with subsection (B� Permits shall be imposed and permits shall hosuspended or revoked, only in the manner provided in this section. A—.1. The Finance Director shall GORdu^+ an investigate whenever he or she has reason to believe that an owner has submitted an application that contains false information or committed a violation deSGribed in SeGti„n 5.95.060(A), It NX�lnr MN of a permit condition, this Code, state or federal law related to a permitted unit. Such investigation may include, but is not limited to, on-site property inspections. Should the investigation reveal substantial evidence to support a finding that men ^GGU"--,Awarrants a suspension or revocation of the short term lodging permit, the Finance Director shall issue written notice of intention to impose a penalty ani'/suspend or revoke the short term lodging_ permit. The written notice shall be served on the owner, in accordance with Section 1.08.080, and shall specify the facts which, in the opinion of the Finance Director; constitute substantial evidence to establish grounds for imposition of the no eesuspension and/or revocation, and specify that the penalties will be impesed and/er the proposed time the short term lodging permit Wfl4shall be suspended and/or that the short term lodging permit shall be revoked within thirty (30) calendar days from the date the notice is given unless the owner files, with the Gity Clued before the "mss -suspension and/or revocation becomes effective, a request for hearing before a hearing officer, who shall be retained by the City, and pays the fee for the hearing established by resolution of the City nnCouncil. 19-41 2. B�.If the owner requests a hearing and pays the hearing fee, established by resolution of the City Council, within the time specified in subsection (A) of this seGtie41-;5)(1), the CityerkFinance Director shall serve written notice on the owner, by written mail a pursuant to Section 1.08.080, setting forth the date, time and place for the hearing. The hearing shall be scheduled not less than fifteen (15) calendar days, nor more than sixty (60) calendar days, from the date on which notice of the hearing is served by the Cites C',rk.Finance Director. The Gity Manager ma"hearing shall be conducted according to the rules normally applicable to administrative hearings. At the hearing, the hearing officer will preside over the hearing er may desigRate a -hearing off icer to take evidence and then submit proposed findings and recommendations to the City Manager. The City Manager shall ,impose -the p���suspend or revoke the short term lodging permit only upon a finding that a violation has been proven by a preponderance of the evidence, and that the penaftysuspension or revocation is consistent with the provisions of Section 5.95.060(B), (G) or (D)The hearing shall -be-Ge'�'n UGted aGGE)rding to rules normally applinahle to administrative hearinthis section. The City Manager shall render a decision within thirty (30) calendar days o�f�the hearing and the decision shall be final. rrd. 2011-13 § 2 (part), 2011: 922-1.3 3 3 (part), '9'_/ C. If a short term lodging permit is suspended, it shall be the owner's responsibility to vacate any future bookings and remove all advertisements related to the short term rental of the unit during the term of the suspension. If a short term lodging permit is revoked, it shall be the owner's responsibility to vacate any future bookings and remove all advertisements related to the short term rental of the unit. D. After any suspension, the owner may reapply for reinstatement of the short term lodging permit which shall be processed in accordance with Section 5.95.030, provided the owner has paid the City all amounts owed the City in accordance with this chapter and Chapters 3.16 and 3.28 of this Code. 5.95.070 Permits and Fees Not Exclusive. Permits and fees required by this chapter shall be in addition to any license, permit or fee required under any other chapter of this Code. The issuance of any permit pursuant to this chapter shall not relieve the owner of the obligation to comply with all other provisions of this Code including, but not limited to, those provisions pertaining to the use and occupancy of the lodging unit or the property on which it is located. (Ord. 92 1-3-§ as well as the collection and remittance of transient occupancy taxes and visitor service fees in accordance with this chapter and Chapters 3(part), 1992-).16 and 3.28. 5.95.080 PenaltyLicense and Permit Closure. 19-42 A. Any Ferc�E)Iot'Rg the pFevisi^nsof this o"apter b �-owner that has ceased operating a short term lodging unit without a „alid permit shall be inform the Finance Director in writing of a misdemeanor. (Ord 92 13 § 3 (no 9 5.95.090 Amertmzatienthe date of the last rental, and Amnesty Period. Owners-Qf-having done such, the short term lodging units shall - - - -- - - - - - - - - -- 0 -- - - - - - - -- - -- - - - -' - - -- r r • r 92 13 § 3 (part), 19Jermit shall closed. The CitV will send a final transient occupancV tax and visitor serTice fee bill,whi will be due and payable thirty (30) days from the date of the invoice. B. The Finance Director shall close anv permit that has no short term lodaina activit for a period of two consecutive years by remitting zero dollars on the required transient occupancy tax and visitor service fee forms and or has failed to return the transient occupancy and visitor service forms. After any permit closure pursuant to this subsection, the owner may reapply for reinstatement of the short term lodging permit which shall be processed in accordance with Section 5.95.030. 19-43 ATTACHMENT C EMERGENCY ORDINANCE NO. 2020-006 AN EMERGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, PROHIBITING THE RENTAL OF ANY LODGING UNIT ON NEWPORT ISLAND FOR A PERIOD OF FOUR CONSECUTIVE NIGHTS 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 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; 19-44 Emergency Ordinance No. 2020-006 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 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 re -opening 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 June 10, 2020, 163 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, 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 Newport Beach have continued to rent lodging units for short durations; WHEREAS, as the City moves through the stages of re -opening, the rental of lodging units for short durations 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; and (b) 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; 19-45 Emergency Ordinance No. 2020-006 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, 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 prohibited 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 Newport Beach to aid with the COVID-19 outbreak; WHEREAS, on May 12, 2020 the City Council adopted Emergency Ordinance 2020-003, which extended the restrictions in Emergency Ordinance 2020-001, limiting the rental of short term lodging units on Newport Island,- WHEREAS, sland;WHEREAS, after considering the current status of the re -opening of businesses in Newport Beach and the unique circumstances applicable to Newport Island, such as the high density of units, the location of short term rental units, lack of parking, and narrow streets and sidewalks, it is appropriate to modify the restriction prohibiting the rental of short term lodging units on Newport Island from a complete ban to a restriction requiring all rentals be for at least four consecutive nights; and WHEREAS, this emergency ordinance modifying the restrictions on the rental of short term lodging units on Newport Island, 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, because the short term lodging units on Newport Island are interwoven throughout the island, which has a high density of units, narrow streets and sidewalks, and a lack of parking, which increases contacts between persons and could lead to the spread of COVID-19. 19-46 Emergency Ordinance No. 2020-006 Page 4 of 6 Section 2: 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 Newport Beach Municipal Code ("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 four 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 shorter 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 3: Emergency Ordinance No. 2020-003 is hereby repealed; provided, however, that the repeal of Ordinance No. 2020-003 shall not affect any offense or act committed or done, or any punishment, penalty or forfeiture incurred, prior to the effective date of this emergency ordinance, nor any suit, prosecution or proceeding for violation of Emergency Ordinance No. 2020-003, which is pending at the time this emergency ordinance is adopted. The reference in Emergency Ordinance No. 2020-004, Section 3, to Emergency Ordinance No. 2020-003 is hereby modified to reference Emergency Ordinance No. 2020-006. Section 4: 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 5: 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 6: The recitals provided in this emergency ordinance are true and correct and are incorporated into the substantive portion of this emergency ordinance. 19-47 Emergency Ordinance No. 2020-006 Page 5of6 Section 7: 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 8: 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 9: This emergency ordinance shall become effective June 23, 2020, and shall continue in full force and effect until: (a) the State of Emergency is terminated by proclamation of the Governor of California; (b) 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 (c) such time as this emergency ordinance is repealed in whole, or in part, by the City Council. Section 10: 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. Emergency Ordinance No. 2020-006 Page 6 of 6 This emergency ordinance was introduced and adopted at a regular meeting of the City Council of the City of Newport Beach held on the 23rd day of June, 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 O)=F1 AARON C. HARP, CITY ATTORNEY 19-49