HomeMy WebLinkAbout04 - Short Term Lodging Amendments to Chapter 5.95 (PA2020-048)Q �EwPpRT
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<,FORN'P City Council Staff Report
October 27, 2020
Agenda Item No. 4
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Seimone Jurjis, Community Development Director - 949-644-3232,
sjurjis@newportbeachca.gov
PREPARED BY: Jaime Murillo, AICP, Principal Planner,
jmurillo@newportbeachca.gov
PHONE: 949-644-3209
TITLE: Ordinance No. 2020-26: Short Term Lodging Amendments to
Chapter 5.95 (PA2020-048)
ABSTRACT:
For City Council's consideration is the adoption of amendments to the short-term lodging
regulations contained in Chapter 5.95 of the Newport Beach Municipal Code ("NBMC").
The attached ordinance was introduced and considered at the October 13, 2020, City
Council meeting.
RECOMMENDATION:
a) Find this project exempt from the California Environmental Quality Act (CEQA)
pursuant to Section 21065 of CEQA and State CEQA Guidelines Sections 15060
(c)(2), 15060 (c)(3), and 15378. The proposed action is also exempt pursuant to State
CEQA Guidelines Section 15061(b)(3) because it has no potential to have a significant
effect on the environment; and
b) Conduct second reading and adopt Ordinance No. 2020-26, An Ordinance of the City
Council of Newport Beach, California, Amending Portions of Chapter 5.95 of the
Newport Beach Municipal Code Relating to Short Term Lodging.
FUNDING REQUIREMENTS:
There is no fiscal impact related to this item.
DISCUSSION:
On October 13, 2020 the City Council held a public hearing on the proposed amendments
to the NBMC. The City Council took extensive public testimony and approved the
introduction of the attached ordinance.
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Ordinance No. 2020-26: Short Term Lodging Amendments to
Chapter 5.95 (PA2020-048)
October 27, 2020
Page 2
The primary regulatory framework for short-term lodging is contained in Chapter 5.95 of
the NBMC. The proposed ordinance includes: (1) establishing a minimum 3 -night stay
requirement; (2) instituting a maximum cap of 1,550 short-term lodging permits citywide
and the creation of a waiting list; (3) adding regulations related to the transferability of
permits; (4) establishing a minimum age of 25 for the rental of short-term lodging units;
and (5) adding regulations to ensure that any transient user or transient user's guest
complies with all state and local laws that regulate parking while the person is staying at
or visiting the short term lodging unit.
If the ordinance is adopted, then the minimum age of 25 years old to rent a unit and tying
parking tickets to short-term lodging units will go into effect in 30 days. The remainder of
the attached ordinance will not go into effect until the California Coastal Commission
(CCC) reviews and approves the item and the City Council adopts any amendments the
CCC incorporates.
ENVIRONMENTAL REVIEW:
The ordinance and LCP Amendment is exempt from the California Environmental Quality
Act ("CEQA") pursuant to Section 21065 of CEQA and State CEQA Guidelines Sections
15060 (c)(2), 15060 (c)(3), and 15378. The proposed action is also exempt pursuant to
State CEQA Guidelines Section 15061(b)(3) because it has no potential to have a
significant effect on the environment. The proposed ordinance and amendment would
decrease impacts to on -street parking and limit the number of short-term lodging permits
to minimize impacts to residential neighborhoods. Neither the ordinance nor amendment
authorize development that would directly result in physical change to the environment.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENT:
Attachment A — Ordinance No. 2020-26
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ATTACHMENT A
ORDINANCE NO. 2020-26
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, AMENDING
PORTIONS OF 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 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;
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Ordinance No. 2020-26
Page 2 of 11
WHEREAS, requiring a three (3) night minimum stay has been shown to reduce
the number of disturbances at short term lodging units, thereby reducing the demand on
Police and Fire Department personnel;
WHEREAS, the City has more short term lodging units than any other southern
California city of a similar size, and limiting the number of short term lodging units will
reduce the demand for City services, preserve the housing stock and quality and
character of the City's neighborhoods; and
WHEREAS, the City Council has reviewed and considered evidence and
documentation attesting to the need to limit the number of short term lodging permits
and 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.
NOW THEREFORE, the City Council of the City of Newport Beach ordains as
follows:
Section 1: The table of contents for 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.
5.95.042 Maximum Number of Permits.
5.95.043 Transfer of Permit.
Ordinance No. 2020-26
Page 3 of 11
5.95.045 Conditions.
5.95.047 Violations of Permit Conditions by Transient User, Occupant or Guest.
5.95.050 Agents 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.
Section 2: Section 5.95.005, Subsection (L), of Chapter 5.95. of Title 5 of the
Newport Beach Municipal Code is hereby amended to read as follows:
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 and address the impacts on residential neighborhoods posed by short term
lodgings.
Section 3: Section 5.95.025, of Chapter 5.95. of Title 5 of the Newport Beach
Municipal Code is hereby amended to read as follows:
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 an annual permit, the renewal
of a permit, the reinstatement of a permit or the transfer of a permit; the management of
the short term lodging unit or units; and the compliance with the short term lodging
permit conditions. 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.
Section 4: Section 5.95.030, of Chapter 5.95. of Title 5 of the Newport Beach
Municipal Code is hereby amended to read as follows:
5.95.030 Application for Permit.
An application for an annual short term lodging permit, renewal of a short term lodging
permit, reinstatement of a short term lodging permit or transfer of a short term lodging
permit shall be filed with the Finance Director upon forms provided by the City.
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Ordinance No. 2020-26
Page 4 of 11
A. An application for a new permit, renewal permit, the reinstatement of a permit or
the transfer of a permit shall contain the following information:
1. The name, address and telephone number of the owner of the unit for
which the short term lodging permit is to be issued.
2. The name, address and telephone number of the agent, if any, of the
owner of the unit.
3. Evidence of a valid business license issued by the City for the separate
business of operating a short term lodging unit or units.
4. The number of bedrooms in the lodging unit.
5. The gross floor area of the lodging unit.
6. The number of parking spaces available on site and a description
indicating the location and size of each parking space.
7. A nuisance response plan, which sets forth the owner's plan for handling
disruptive transient users.
8. 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.
9. Acknowledgement of receipt and inspection of a copy of all regulations
pertaining to the operation of a short term lodging unit.
10. Such other information as the Finance Director deems reasonably
necessary to administer this chapter.
B. An application for the renewal of a short term lodging permit shall be filed within
thirty (30) calendar days of the short term lodging permit's expiration, or the short term
lodging permit shall be deemed abandoned.
C. An application for the reinstatement of a short term lodging permit closed by the
Finance Director pursuant to Section 5.95.080, shall be filed within thirty (30) calendar
days of the date the permit was closed by the Finance Director, or the short term
lodging permit shall be deemed abandoned.
Ordinance No. 2020-26
Page 5 of 11
D. An application for the reinstatement of a previously suspended short term lodging
permit, shall be filed within thirty (30) calendar days of the end of the suspension period,
or the short term lodging permit shall be deemed abandoned.
E. If any application is deemed incomplete, which shall be determined in the sole
discretion of the Finance Director, the application shall be completed within thirty (30)
calendar days of the service of notice that the application is incomplete, which shall be
served in accordance with Section 1.08.080, or the application and any associated
permit shall be deemed abandoned.
F. If good causes exist, as determined in the sole discretion of the Finance Director,
the Finance Director may extend the deadlines set forth in Subsections (B) through (E).
G. For purposes of calculating the maximum number of permits under Section
5.95.042, a short term lodging permit shall be deemed valid until the applicable permit
has been deemed abandoned.
Section 5: Section 5.95.035, of Chapter 5.95. of Title 5 of the Newport Beach
Municipal Code is hereby amended to read as follows:
5.95.035 Denial of Permit.
If permits are available for issuance, no timely application filed by an owner for an
annual permit, renewal of a permit, reinstatement of a permit or transfer 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.
Section 6: Section 5.95.040, of Chapter 5.95. of Title 5 of the Newport Beach
Municipal Code is hereby amended to read as follows:
5.95.040 Filing Fee.
An application for a new annual permit, the renewal of an existing permit, the
reinstatement of a permit, or the transfer of a 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.
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Ordinance No. 2020-26
Page 6 of 11
Section 7: Section 5.95.042 of Chapter 5.95. of Title 5 of the Newport Beach
Municipal Code is hereby added to read as follows:
5.95.042 Maximum Number of Permits.
A. The maximum number of short term lodging permits shall be limited to fifteen
hundred and fifty (1,550) permits at any time. If there are more than fifteen hundred and
fifty (1,550) valid permits that have been issued as of the effective date of this section,
an owner shall be permitted to renew, reinstate, or transfer a valid permit in accordance
with the provisions of this chapter; however, no new permit shall be issued to anyone on
the waiting list, as described in Subsection (D), until the total number of permits does
not exceed the fifteen hundred and fifty (1,550). For purposes of calculating the
maximum number of permits available, a permit shall be deemed valid and unavailable
until it is abandoned in accordance with Section 5.95.030, (B) through (F), and/or
Section 5.95.043 (B).
B. An owner who has a short term lodging permit or an owner seeking to reinstate
a short term lodging permit, that has not been abandoned in accordance with Section
5.95.030 (B) through (F), shall have priority to renew or reinstate the permit over anyone
on the waiting list, as described in Subsection (D).
C. An owner seeking to transfer a valid short term lodging permit, that files an
application within the timeframes set forth in Section 5.95.043 (A), shall have priority to
transfer the permit over anyone on the waiting list, as described in Subsection (D).
D. If the City has issued the maximum number of permits available, the City shall
maintain a waiting list. An application for placement on the waiting list shall be submitted
to the Finance Director, on a form approved by the Finance Director, and shall be
accompanied by a fee established by resolution of the City Council. In the event a short
term lodging permit becomes available, the Finance Director shall notify the person or
persons next in order on the waiting list. The notice shall specify that applications will be
accepted for ten (10) calendar days after the date of the notice, and that failure to apply
within the ten (10) calendar day period shall result in removal of the person or persons
receiving notice from the waiting list. Notice shall be deemed given when deposited in
the United States mail, with the first class postage prepaid, and addressed as specified
by the person or persons on the waiting list. The City shall not be liable for a failure to
notify any person or persons on the waiting list since placement on the list does not
create any property right in any person or persons on the list nor any contractual
obligation on the part of the City.
Ordinance No. 2020-26
Page 7 of 11
Section 8: Section 5.95.043, of Chapter 5.95. of Title 5 of the Newport Beach
Municipal Code is hereby added to read as follows:
5.95.043 Transfer of Permit.
A. A short term lodging permit that is valid and has not been abandoned in
accordance with Section 5.95.030 (B) through (F), may be transferred to any of the
following:
1. If the owner transfers the ownership of the lodging unit to an inter vivos
trust, family trust, or other similar type of trust estate, a valid short term lodging permit
may be transferred to the inter vivos trust, family trust, or other similar type of trust
estate, if an application to transfer a valid permit, in accordance with Section 5.95.030,
is filed within three hundred and sixty-five (365) days of the date title is transferred to
the inter vivos trust, family trust, or other similar type of trust estate.
2. If the owner transfers the ownership of the lodging unit to a corporation,
limited liability company, partnership, limited partnership, or similar business entity, a
valid short term lodging permit may be transferred to the business entity, if an
application to transfer a valid permit, in accordance with Section 5.95.030, is filed within
three hundred and sixty-five (365) days of the date title is transferred to the business
entity.
3. If the owner transfers the ownership of the lodging unit to an immediate
family member, which shall include a spouse, domestic partner, child, stepchild,
grandchild, parent, stepparent, mother-in-law, father-in-law, son-in-law, daughter-in-law,
grandparent, great grandparent, brother, sister, half-brother, half-sister, stepsibling,
brother-in-law, sister-in-law, aunt, uncle, niece, nephew, or first cousin (that is, a child of
an aunt or uncle), a valid short term lodging permit may be transferred to the immediate
family member, if an application to transfer a valid permit, in accordance with Section
5.95.030, is filed within three hundred and sixty-five (365) days of the date title is
transferred to the immediate family member.
4. If the owner sells the lodging unit to a bona fide purchaser for value, a
valid short term lodging permit may be transferred to the purchaser, if an application to
transfer a valid permit, is filed in accordance with Section 5.95.030, within sixty (60)
days of the date title is transferred to the purchaser.
5. If the owner is deceased, the short term lodging permit for the short term
lodging unit may be transferred to the heir(s) once the estate is closed and the assets
distributed, if an application to transfer a valid permit, is filed in accordance with Section
Ordinance No. 2020-26
Page 8 of 11
5.95.030, within ninety (90) days of the date the heir(s) becomes the owner of the short
term lodging unit.
B. The deadlines set forth in Subsection (A) are established for purposes of setting
deadlines for the transfer of a valid permit that has not been deemed abandoned in
accordance with Section 5.95.030 (B) through (F). The deadlines set forth in Section A
shall not extend the deadlines set forth in or in accordance with Section 5.95.030 (B)
through (F). Authorization to transfer a valid short term lodging permit shall be deemed
waived and the permit abandoned if an application is not filed to transfer a permit in
accordance with the deadlines set forth in this section.
Section 9: Section 5.95.045, Subsection (A), (2), of Chapter 5.95. of Title 5 of
the Newport Beach Municipal Code is hereby amended to read as follows:
2. The owner shall not rent a lodging unit to a transient user that is under the
age of twenty-five (25).
Section 10: Section 5.95.045, Subsection (A), of Chapter 5.95. of Title 5 of the
Newport Beach Municipal Code is hereby amended to add conditions numbers twenty-
one (21) through twenty-three (23), which shall read as follows:
21. Neither an owner or the owner's agent shall rent, let, advertise for rent, or
enter into an agreement for the rental of any lodging unit, for less than three (3)
consecutive nights.
22. The owner shall:
a. Require every transient user and guest of the transient user to
comply with all state and local laws that regulate parking while staying at or visiting the
short term lodging unit;
b. Require every transient user to provide the owner with the license
plate number for all vehicles, which are used by the transient user or the transient user's
guest while staying at or visiting the short term lodging unit; and
C. Provide the City with the vehicle license plate number(s) for every
vehicle, which were used by the transient user or the transient user's guest while
staying at or visiting the short term lodging, within seven calendar days after the City
serves the owner with a notice of request for the vehicle license plate number(s) in
accordance with Section 1.08.080.
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Ordinance No. 2020-26
Page 9 of 11
23. The owner shall ensure that any transient user or transient user's guest
complies with all state and local laws that regulate parking while the transient user or
transient user's guest is staying at or visiting the short term lodging unit. For purposes
of this condition, a transient user or transient user's guest shall be presumed to be
staying at or visiting a short term lodging unit if a parking citation is issued to the
transient user or the transient user's guest within one hundred (100) feet of the property
line of the short term lodging unit during the time the transient user is renting the short
term lodging unit.
Section 11: Section 5.95.047, of Chapter 5.95. of Title 5 of the Newport Beach
Municipal Code is hereby amended to read as follows:
5.95.047 Violations of Permit Conditions by Transient User, Occupant or Guest.
A. 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:
1. Exceed the overnight occupancy limit designated for the short term
lodging unit.
2. Use street parking prior to utilizing all available on-site parking space(s)
for the lodging unit.
3. Place trash for collection in violation of this Code's rules and regulations
concerning:
a.m.:
a. The timing, storage or placement of trash containers; or
b. Recycling requirements.
4. Amplify or reproduce sound between the hours of 10:00 p.m. and 10:00
a. Outside of the lodging unit; or
b. That is audible from the property line for the lodging unit.
5. Use the short term lodging for any nonresidential purpose, including, but
not limited to, large commercial or noncommercial gatherings, commercial filming and/or
nonowner wedding receptions.
6. Rent a lodging unit to any person for a short term.
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Ordinance No. 2020-26
Page 10 of 11
B. In addition to other provisions of this Code, it shall be unlawful for any lessee to
rent a lodging unit to any transient user for a short term.
Section 12: The recitals provided in this ordinance are true and correct and are
incorporated into the substantive portion of this ordinance_
Section 13: 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 14: 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 15: 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.
Section 16: 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, Section 9, the portion of Section 10,
which adds Subsections 22 and 23 to Section 5.95.045, Chapter 5.95. of Title 5, and
Section 11, of this ordinance, shall become effective thirty (30) calendar days after its
adoption. Sections 1 through 8 and the portion of Section 10, which adds Subsection
21, to Section 5.95.045, Chapter 5.95. of Title 5, of this ordinance, shall become final
and effective upon the effective date of approval by the California Coastal Commission
of LC2020-007 and adoption, including any modifications suggested by the California
Coastal Commission, by resolution(s) and/or ordinance(s) of the City Council.
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Ordinance No. 2020-26
Page 11 of 11
This ordinance was introduced at a regular meeting of the City Council of the City
of Newport Beach held on the 13th day of October, 2020, and adopted on the 27th day
of October, 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 ATTORNEY'S OFFICE
'_ _ C, ff '_'
AA ON C. HARP, CITY ATTORNEY
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