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NEWPORT BEACH PLANNING COMMISSION MINUTES CITY COUNCIL CHAMBERS – 100 CIVIC CENTER DRIVE THURSDAY, DECEMBER 3, 2020 REGULAR MEETING – 6:30 P.M. I. CALL TO ORDER – The meeting was called to order at 6:35 p.m.
II. PLEDGE OF ALLEGIANCE – Vice Chair Lowrey III. ROLL CALL PRESENT: Chair Erik Weigand, Vice Chair Lee Lowrey, Secretary Lauren Kleiman, Commissioner Curtis Ellmore, Commissioner Sarah Klaustermeier, Commissioner Peter Koetting, Commissioner Mark Rosene ABSENT: None Staff Present: Community Development Director Seimone Jurjis, Deputy Community Development Director Jim Campbell, Assistant City Attorney Yolanda Summerhill, City Traffic Engineer Tony Brine, Principal Planner Jaime Murillo, Code Enforcement Supervisor Brian Contino, Administrative Support Specialist Clarivel Rodriguez IV. PUBLIC COMMENTS
None V. REQUEST FOR CONTINUANCES
None VI. CONSENT ITEMS ITEM NO. 1 MINUTES OF NOVEMBER 19, 2020 Recommended Action: Approve and file
Chair Weigand noted Mr. Mosher's suggested edits. Motion made by Commissioner Ellmore and seconded by Secretary Kleiman to approve the minutes of the November 19, 2020, meeting with Mr. Mosher's revisions.
AYES: Weigand, Lowrey, Kleiman, Ellmore, Klaustermeier, Koetting, Rosene NOES: ABSTAIN: ABSENT: VII. DISCUSSION ITEMS
ITEM NO. 2 CIRCULATION ELEMENT UPDATE STATUS REPORT Summary: A presentation focusing on the existing Circulation Element, definitions and terminology, themes, coordination with other agencies and the update process.
Deputy Community Development Director Jim Campbell reported approximately 30 people participated in the November 23, 2020, virtual Circulation Element workshop. The workshop included a dialogue with the public, and it seemed to go well. Public speakers discussed Vehicle Miles Traveled (VMT), rideshare services, emerging technologies, and rerouting mapping applications away from neighborhoods among a variety of issues. The main takeaway was a desire to balance mobility, traffic, and housing. Additional virtual workshops are scheduled for December 15 and 16, 2020, to discuss themes of the existing Circulation Element. More workshops are being
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planned for January 2021. The planned visioning workshop has been moved from January 13 to January 27, 2021. The Planning Commission's next study session regarding the Circulation Element is now scheduled for February 4, 2021. A video of the initial workshop is available to the public at www.newporttogether.com.
Chair Weigand advised that he viewed the video of the workshop and found it informative. He encouraged Commissioners to view the video. In response to Chair Weigand's question, Deputy Community Development Director Campbell indicated the February 4, 2021, study session will likely include details of public comments from the three workshops and seek
feedback from the Planning Commission to guide staff and consultants. Chair Weigand noted public comments pertained to circulation of vehicles, people, and bicyclists; Uber and Lyft; widening streets; Complete Streets; and the interaction of other agencies and jurisdictions with the Circulation Element.
Commissioner Koetting shared specific comments from the public regarding coordination of the Housing Element and Circulation Element Updates, MacArthur Boulevard, Complete Streets, bicycles traveling on sidewalks, locating housing near essential stores and services, the City's Regional Housing Needs Assessment (RHNA) numbers, West Ocean Front, Mariner's Mile, regional transportation connections, alternative transportation, parking, transportation
funding, the Waze app, golf carts, coordinating traffic flow with Irvine and Costa Mesa, and a change in zoning that a resident does not want, and staff's responses.
In answer to Commissioner Koetting's query, Deputy Community Development Director Campbell clarified that the Housing Element Update has to be complete and submitted to the California Department of Housing and Community Development (HCD) in October 2021. Staff intends to complete drafts of the Housing Element Update and the
Circulation Element Update later in the spring and complete an Environmental Impact Report (EIR) over the summer so that the Housing Element Update is ready for adoption on schedule.
Jim Mosher remarked that there is a list of Newport Beach sidewalks on which bicycles are allowed to travel. There
are areas within the City where it is inappropriate to ride a bicycle on the sidewalk.
David Tanner asked if the Council would adopt the draft Housing Element Update prior to submitting it to HCD because HCD wants a Housing Element that has been approved by the Council and voters.
Deputy Community Development Director Campbell indicated staff will submit a draft of the Housing Element Update
to HCD in the spring or early summer. HCD will provide comments, which staff will incorporate into the final draft document. The final draft Housing Element Update will be presented to the Housing Element Update Advisory
Committee and the Planning Commission for recommendations and the Council for approval. Following approval, staff will submit the Housing Element Update to HCD for the official certification review process. The Land Use
Element will be updated later so that it is consistent with the approved Housing Element and will be subject to a vote of the electorate given the potential magnitude of the change.
VIII. PUBLIC HEARING ITEM
ITEM NO. 3 SHORT-TERM LODGING ON NEWPORT ISLAND LCP AMENDMENT (PA2020-326) Site Location: Newport Island Summary: Amendment to the Local Coastal Program Implementation Plan to update coastal zoning regulations prohibiting the issuance of new short-term lodging permits on any property located on Newport Island. Any existing short-term lodging unit located on Newport Island will be permitted to remain provided it is located on an owner-occupied parcel and managed by the owner of the owner-occupied unit within one year of the effective date of the ordinance adopting the amendment. Recommended Action: 1. Conduct a public hearing;
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2. 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 CEQA Guidelines Section 15061(b)(3) because it has
no potential to have a significant effect on the environment; and 3. Adopt Resolution No. PC2020-044, recommending the City Council authorize submittal of Local Coastal Program Amendment No. LC2020-008 to the California Coastal Commission to amend Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code amending coastal zoning regulations for the operation of short-term lodging on Newport Island (PA2020-326).
Community Development Director Seimone Jurjis reported the Council recently adopted a short-term lodging (STL) ordinance that imposes a three-night minimum stay and a cap on the number of STL permits issued. In response to residents' complaints, the Council directed staff to initiate Code changes to address STL on Newport Island. The Planning Commission's action is a recommendation to the Council to approve or deny the proposed changes.
Principal Planner Jaime Murillo advised that the proposed amendment would prohibit the issuance of any new
permits for STL units on Newport Island and phase out existing permits over two years. An existing permitted STL unit located on an owner-occupied parcel and managed by the owner of the owner-occupied parcel would not be subject to the phase-out provision. Although Newport Island is zoned for two-family residential uses, a majority of the lots have been developed for single-family use. Over the past three years, the number of STL permits issued for
Newport Island has increased approximately 500 percent. STL typically increases noise, refuse, parking demand, and traffic. These impacts are intensified by the small size, narrow streets, and single-family residential development
of Newport Island. Outside the summer months, the public may park on Newport Island, which has nine locations for public access to the bay.
In reply to Commissioner Koetting's inquiries, Community Development Director Jurjis explained that residents are
encouraged to call the Police Department with complaints about parking. The police department will send a parking enforcement officer to investigate complaints. The Fire Chief feels the Fire Department has proper access to
properties on Newport Island.
In answer to Commissioner Ellmore's queries, Community Development Director Jurjis indicated in mid-August the Council adopted an ordinance that allows staff to cite an STL unit for violation of the Municipal Code if staff can tie a
parking citation that occurs within 100 feet of the property line to the unit. The current STL Code requires operators to collect the license plate numbers of their tenants. Code Enforcement Supervisor Brian Contino reported a couple
of citations have been issued to STL units for parking citations issued to tenants. The ordinance took effect after the end of the summer season. After two citations, a STL unit is subject to an administrative hearing process to suspend
the STL permit for six months. After three citations, the STL permit is revoked. To his knowledge, no STL permits have been suspended since the ordinance took effect.
In response to Commissioner Klaustermeier's questions, Code Enforcement Supervisor Contino related that citations
may be issued for noise, refuse, parking, and disturbing the peace. The bulk of complaints pertains to a few properties.
In reply to Secretary Kleiman's inquiry, Community Development Director Jurjis clarified that a code enforcement
officer must witness the violation in order to issue a citation. Photos may be used to document a parking violation. Code Enforcement Supervisor Contino advised that four citations have been issued to STL units on Newport Island, but he was not aware of the total number of citations issued on Newport Island. Community Development Director Jurjis added that staff has not developed a nexus between STL and citations. The Council initiated the proposed
amendment.
In answer to Commissioner Rosene's queries, Community Development Director Jurjis reported a Council ad hoc committee studied nonconforming parking of STL units, found about 400 units in Newport Beach have nonconforming parking, and did not want to take permits away from STL units. The ad hoc committee recommended the Council require homeowners to declare the number of parking spaces and the location of the spaces and did not recommend
any minimum requirements for parking. Occupancy of STL units is based on floor area and not based on parking availability. Prior to August 2020, there were no STL operating regulations to address the operation of STL, beyond trash and noise; therefore, staff has no code enforcement data to support violations.
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In response to Commissioner Klaustermeier's question, Principal Planner Murillo related that the City began issuing STL permits in 1992. Community Development Director Jurjis noted STL has been a part of Newport Beach's culture for a very long time, but the actual program began in 1992.
In reply to Chair Weigand's inquiries, Principal Planner Murillo indicated a preferential parking permit is required to park on the streets of Newport Island from May to September, and each property receives three permits. Anyone can park on the streets of Newport Island from October to April. All Commissioners disclosed no ex parte communications.
Chair Weigand opened the public hearing. Lori Bowman opposed the requirement for an owner to occupy the property in order to retain an STL permit. Her
family relies on rental income to maintain the property, does not rent to parties who cause disturbances or damage property, and complies with all STL requirements. The loss of rental income would impose a financial hardship on
her family. Singling out Newport Island is unfair and unequitable. Jim Mosher commented that the City's Coastal Land Use Plan states that single-family homes are offered to visitors on a short-term basis. He questioned whether the Finley Tract, which is located across the Rialto Canal from Newport
Island, has experienced an increase in STL units and impacts similar to Newport Island and, if so, whether the amendment should apply to the Finley Tract as well. Finding 6 on page 15 of the staff report implies that STL units
impact visitors attempting to park on Newport Island; however, visitors are not allowed to park on Newport Island during the summer months.
Gary Cruz advised that the online packet for the meeting does not contain all correspondence from the public. Not
all STL tenants are bad, but some are really bad. Some homeowners purchased properties on Newport Island to escape partying. Rental income makes STL a lucrative business and could lead to the end of the residential
neighborhood. Construction vehicles are likely the main cause of parking congestion.
Chair Weigand clarified that public correspondence submitted prior to the Friday before the meeting is included in the packet. Correspondence submitted between Friday and the meeting is provided to Commissioners via email.
Charles Gayton stated he received a citation related to his STL tenants, and it cost him $1,000. He has had more
problems with long-term tenants than short-term tenants. All STL units should be treated equally. STL tenants have not ruined Newport Island.
Mike Ivey supported STL. Newport Island residents park illegally more often than STL tenants. Residents treat STL
tenants differently than other residents. STL units across the City should be treated the same. These regulations penalize the good STL operators.
Mark Markos expressed concern regarding vehicles parking illegally and blocking access for emergency vehicles
and residents. Life on Newport Island has changed over the past two years as the number of STL units has increased. One STL unit may add four or five vehicles to Newport Island at one time, and there are only 50 parking
spaces on Newport Island. Scott McFetters agreed that STL units have impacted the quality of life of Newport Island residents. STL units are rented for corporate and private parties and for one night at a time. The people who oppose the amendment do not
live on Newport Island and do not suffer the impacts of STL units.
Gina Cruz remarked that the dramatic increase in STL permits, the City's lack of foresight, and the encouragement for residents to complain have caused tension among neighbors. STL operators want the right to earn income from their property, and she wants the right to a good night's sleep so that she can earn her salary.
Mason Ye wanted to preserve Newport Island and the community, but a blanket ban on STL units is not the right answer. The City should be able to find a compromise.
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Bud Reveley commented on Newport Island residents' loss of privacy, peaceful enjoyment, and the feeling of community caused by the increase in STL units on Newport Island. Short-term rentals will eliminate the availability of long-term rental housing.
John DiGiovanni opposed the proposed amendment. He has evicted unruly STL tenants from his unit in the past and requested neighbors contact him personally with issues. Police should be called to issue citations for Code violations. Permits with multiple citations should be suspended but not revoked. Permit parking can be extended to year-round. He questioned whether staff has documentation of citations for STL tenants and whether any STL permits for Newport Island have been suspended or revoked. STL tenants support local businesses and merchants
and provide the City with tax revenue. Peter Burkhard believed STL has not been a part of the fabric of life on Newport Island. STL tenants will use the most convenient parking space rather than a parking space assigned to the unit. He supported the amendment.
Residents should not have to police the neighborhood.
Chair Weigand closed the public hearing. In answer to Chair Weigand's questions, Community Development Director Jurjis reported the Council adopted an emergency ordinance prohibiting the issuance of new permits. If the Council and the Coastal Commission approve
the proposed amendment, STL owners will have one year to transition to owner occupancy. The Council debated the issues of owner occupancy and renewal of the existing STL permits, and a majority of the Council supported
owner occupancy as a way to manage STL units. Unlike Balboa Island, Newport Island does not have alleyways to access garages.
In reply to Secretary Kleiman's inquiry, Community Development Director Jurjis explained that STL permits have to
be renewed annually. The renewal application will include a declaration by the property owner that he is living onsite. A code enforcement officer will not proactively check units for owner occupancy. In response to a complaint, code
enforcement will visit the property to verify owner occupancy. Administrative hearing officers have set a high bar for evidence supporting the City's claims against STL units.
Secretary Kleiman noted the Council deliberated the issues, and public comments seem to be evenly divided on the
issues. The Council's meeting minutes reflect majority support for prohibiting the issuance of new permits for the City overall and slightly less support for an owner-occupied and managed requirement. She could support a limitation
on one's property rights if she believed the requirement would alleviate the issues described in public comments. However, she did not believe the requirement would resolve the problems.
Commissioner Ellmore stated the Planning Commission focuses on planning. The issues at hand pertain to property
rights. The existing ordinance is intended to identify bad operators and should be given time to work. He did not necessarily agree with imposing a blanket limitation on property rights on a portion of the City. Newport Island will
always have parking issues, especially with construction.
In response to Chair Weigand's query, Assistant City Attorney Yolanda Summerhill advised that adopting an ordinance that limits STL permits does not deprive a property owner of the economic value of his property.
Vice Chair Lowrey related that the requirement could be viewed as downzoning Newport Island property from two-family to single-family residential with respect to an STL permit. He concurred with Commissioner Ellmore's comments. Applying a different rule to one portion of the City seems like spot zoning. The ordinance has not been
given a chance to resolve residents' complaints.
In answer to Chair Weigand's question, Community Development Director Jurjis reported the Council implemented the STL permit program and can remove it. Long-term rentals are a property right, but this program applies to short-term rentals, which are rentals of less than 30 days. Staff needs time to get through the summer season and determine what does and does not work, staffing levels, and fees. The Council wants to respond to Newport Island
residents and understands the ordinance needs time to work. The Council preferred to address this issue while addressing STL.
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In reply to Commissioner Rosene's inquiry, Community Development Director Jurjis indicated the Council has determined staff needs additional resources, and recruitment for an additional code enforcement officer is underway. Also, staff is attempting to retain contract staff. The Council authorized staff to implement a 24-hour hotline for STL
complaints. Since its implementation in October, the hotline has received approximately 30 calls. Chair Weigand indicated the reactive approach to code enforcement creates animosity among neighbors. He took issue with a requirement for the owner to live onsite. He inquired whether Commissioners could support capping permits at the current number but not requiring owner occupancy.
Commissioner Rosene could support a recommendation that does not include a requirement for owner occupancy. Commissioner Klaustermeier believed the 18 permitted operators include a couple of bad operators, and the previously approved ordinance needs time to have some effect.
Chair Weigand suggested the question is whether 18 permits are too many because the permitted units are causing
problems. Commissioner Klaustermeier advised that the Council approved an overall cap of 1,550 STL permits. Further restricting one specific section of the City is not fair.
Commissioner Koetting expressed surprise that more STL permits have not been rescinded. He concurred with
Commissioner Ellmore's and Vice Chair Lowrey's comments. Three citations before revocation may be too many.
Vice Chair Lowrey added that a new makeup of the City Council comes into play with the issue. The Council may take the Planning Commission's concerns and comments and review the issues.
Motion made by Commissioner Ellmore and seconded by Vice Chair Lowrey to recommend the City Council not
authorize submittal of Local Coastal Program Amendment No. LC2020-008 to the California Coastal Commission to amend Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code amending
coastal zoning regulations for the operation of short-term lodging on Newport Island (PA2020-326). Substitute Motion made by Chair Weigand to approve the staff recommendation with deletion of the requirement for owner occupancy of short-term lodging units. Substitute Motion failed for lack of a second.
Vote on the Motion
AYES: Lowrey, Kleiman, Ellmore, Klaustermeier, Koetting, Rosene NOES: Weigand
RECUSED: ABSENT:
IX. STAFF AND COMMISSIONER ITEMS ITEM NO. 4 MOTION FOR RECONSIDERATION None ITEM NO. 5 REPORT BY THE COMMUNITY DEVELOPMENT DIRECTOR OR REQUEST FOR MATTERS WHICH A PLANNING COMMISSION MEMBER WOULD LIKE PLACED ON A FUTURE AGENDA. Deputy Community Development Director Campbell reported the City Council has approved a first reading of the ordinance addressing third-floor building massing. The Planning Commission's December 17, 2020, and January 7, 2021, meetings have been canceled. The Planning Commission's next meeting is scheduled for January 21, 2021, and the agenda currently has four items.
X.
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In reply to Commissioner Ellmore's inquiry, Deputy Community Development Director Campbell indicated several
applications for large developments are pending but likely will not be presented to the Planning Commission in
the near term.
Deputy Community Development Director Campbell reminded the Commission of the December 15 and 16
Circulation Element virtual workshops. Information is available at www.newporttogether.com. The discussions
may be lively based on the topics planned for the workshops.
Chair Weigand encouraged Commissioners to attend the workshops or view the recordings afterwards. He noted
the next Planning Commission meeting may be virtual due to Executive Orders released earlier in the day.
In response to Commissioner Koetting's questions, Community Development Director Jurjis advised that the
applicant for the 76 Station project received preliminary construction bids that were very high. Consequently, the
property owner has decided to remodel the existing structure to include a convenience store. Deputy Community
Development Director Campbell indicated the application for the Shell car wash project has been delayed but
will be presented to the Council on January 26, 2021. The revitalization plan for Mariner's Mile has been shelved.
Vice Chair Lowrey announced the annual holiday event for the Planning Commission has been postponed to the
spring or summer, depending on the status of COVID-19 restrictions.
ITEM NO. 6 REQUESTS FOR EXCUSED ABSENCES
None
ADJOURNMENT -8:30 p.m.
The agenda for the December 3, 2020, Planning Commission meeting was posted on Wednesday,
November 25, 2020, at 5:10 p.m. in the Chambers binder, on the digital display board located inside the
vestibule of the Council Chambers at 100 Civic Center Drive, and on the City's website on Wednesday,
Nove er 2~: at 5:
Lauren Kleiman, Secretary
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