HomeMy WebLinkAbout26 - A Code Amendment Related to Short -Term Lodging Citywide and on Newport Island (PA2020-048 and PA2020-326)Q �EwPpRT
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<,FORN'P City Council Staff Report
November 30, 2021
Agenda Item No. 26
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, Principal Planner, jmurillo@newportbeachca.gov
PHONE: 949-644-3209
TITLE: Ordinance No. 2021-28: A Code Amendment Related to Short -Term
Lodging Citywide and on Newport Island (PA2020-048 and PA2020-
326)
For the City Council's consideration is an ordinance amending Chapter 5.95 (Short Term
Lodging Permit) and Title 21 (Local Coastal Program Implementation Plan) of the
Newport Beach Municipal Code (NBMC) updating the regulations for short-term lodging
applicable to properties citywide to establish a maximum cap of 1,550 permits and a
minimum night stay of two consecutive nights. The ordinance would also establish
additional short-term lodging regulations applicable to Newport Island that include
establishing a maximum of 20 permits, requiring properties with short-term lodging to be
owner occupied and owner managed, establishing maximum daytime and overnight
occupancy limits, restricting rentals to a maximum of one per week, and establishing
minimum parking requirements.
RECOMMENDATION:
a) Conduct public hearing;
b) Find the action statutorily exempt from the California Environmental Quality Act
(CEQA) pursuant to Section 15265(a)(1) of the California Code of Regulations, Title
14, and Chapter 3 of the Coastal Act. Section 15265(a)(1), which exempts local
governments from the requirements of preparing an environmental impact report or
otherwise complying with CEQA in connection with the adoption of LCP Amendments;
and
c) Waive full reading, direct the City Clerk to read by title only, introduce Ordinance No.
2021-28, An Ordinance of the City Council of the City of Newport Beach, California,
Amending Chapter 5.95 (Short Term Lodging Permit) and Title 21(Local Coastal
Program Implementation Plan) of the Newport Beach Municipal Code Relating to
Short Term Lodging, and Adopting Local Coastal Program Amendment No. LC2020-
007 Related to Short Term Lodging and Local Coastal Program Amendment No.
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LC2020-008 Related to Short Term Lodging on Newport Island (PA2020-048 and
PA2020-326), and pass to second reading on December 14, 2021.
DISCUSSION:
Short-term lodging is a dwelling unit that is rented or leased for a period of less than 30
consecutive calendar days. The City of Newport Beach (City) initially regulated short-term
lodging by establishing Chapter 5.95 of the Newport Beach Municipal Code (NBMC) in
1992, which includes permitting requirements, standard operating conditions, and
penalties. Chapter 5.95 was amended in 2004 when the City prohibited the establishment
of short-term lodging in the R-1 (Single -Unit Residential) zoning district. In 2010, the City
adopted a comprehensive update to the Zoning Code (Title 20), which allowed short-term
lodging in most residential zoning districts except the R-1 zones.
Although the primary regulatory framework for short-term lodging is contained in NBMC
Chapter 5.95, it is classified as a visitor accommodation land use that provides lower cost
access to the coast. Therefore, in 2017, when the California Coastal Commission certified
the Local Coastal Plan Implementation Plan (Title 21), NBMC Chapter 21.48 was
incorporated to include general standards affecting the regulations of short-term lodging
in the coastal zone, including permitted locations.
In 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. Over the past
two years, the City Council has adopted a number of ordinances related to short-term
lodging as summarized below:
In May 2020, the City Council adopted Emergency Ordinance Nos. 2020-003 and
2020-004, which prohibited the issuance of any new short-term lodging permits
and required a three -night minimum stay for all areas of the city, except for Newport
Island where rentals were prohibited. In June 2020, the City Council adopted
Emergency Ordinance No. 2020-006 which required a four -night minimum stay on
Newport Island. These requirements were in effect until the local emergency period
was terminated on June 22, 2021.
In July 2020, the City Council adopted Ordinance No. 2020-15, amending Chapter
5.95 (Short Term Lodging Permit) of the NBMC. This ordinance was adopted in
response to complaints about unlicensed units, noise, too many guests in one unit,
shortage of available street parking, and improper use of trash containers at short-
term lodging units. The ordinance requires permit holders to post their permit
number on all advertisements, register a local contact person with the City, limit
the number of transient users that can stay overnight at a unit, comply with stricter
noise standards, and provide transient users with a copy of a good neighbor policy.
• In October 2020, the City Council adopted Ordinance No. 2020-26 (Attachment B),
amending portions of NBMC Chapter 5.95, as recommended by the Ad Hoc
Committee, relating to short-term lodging citywide that consisted of the following -
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o Minimum Night Stay- Require a minimum three -night stay;
o Limits on Permits- Establish a maximum cap of 1,550 permits and create a
waiting list for new permits once cap is reached;
o Transferability- Include provisions clarifying the transferability of permits and
establishing when a permit is deemed abandoned;
o Minimum Age- Prohibit the rental to users under the age of 25; and
o Responsibility for Parking Violations- Allows owner of the short-term rental unit
to be cited if a user receives a parking ticket while utilizing a short-term lodging
unit.
LCP Amendments
On October 13, 2020, the City Council also approved Resolution 2020-91 (Attachment C)
authorizing the submittal of LCP Amendment No. LC2020-007 to the California Coastal
Commission (CCC) to incorporate the maximum cap of 1,550 permits and minimum three -
night stay requirements applicable to properties citywide into Title 21.
On April 13, 2021, the City Council adopted Resolution No. 2021-30 (Attachment D)
authorizing submittal of LCP Amendment No. LC2020-008 to the CCC to incorporate
additional short-term lodging regulations affecting Newport Island into Title 21 as follows:
• Limits on Permits- Limit a maximum of 20 permits in Newport Island;
• Require on-site property owner and management- Any existing short-term lodging
permits that do not comply would be permitted to remain active and transferable
until one year following the effective date of the implementing ordinance. Following
the one year, any existing permits would become void except for permit holders
that comply with new requirements:
• Allow a maximum of one rental per week;
• Overnight Occupancy Limits- Restrict overnight occupancy to two persons per
bedroom, plus two additional persons, with a maximum overnight occupancy of 10
persons;
• Daytime Occupancy Limits- Limit daytime occupancy, between the hours of 7 a.m.
and 10 p.m., to a number equal to the overnight occupancy limit plus six additional
persons; and
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• Minimum Parking Requirements- Require a rental unit to provide a minimum of
one parking space that is free and unobstructed for renter use, and if only one
space is available, overnight occupancy shall be restricted to a maximum of five
persons.
Coastal Commission Action and Acceptance of Suggested Modifications
The CCC reviewed both LCP Amendments related to short-term lodging citywide and on
Newport Island at its October 13, 2021, hearing. The CCC approved the amendments as
submitted, with the exception of suggested modifications related to minimum night stay,
conversions of multi -unit structures, and parking clarifications. The CCC approval letters,
including suggested modifications, are included as Attachment E for the citywide
amendment (LC2020-007) and Attachment F for the Newport Island specific amendment
(LC2020-008).
The City Council must either accept or reject all these suggested modifications. If the
City Council rejects the suggested modifications, both LCP amendments would effectively
expire, and the revised regulations would not go onto effect. In other words, the 1,550 -
permit cap, two -night minimum night stay requirement, Newport Island specific
regulations, and related provisions in Chapter 5.95 regarding transferability and waiting
list procedures could not be implemented. Should the City Council want to partially accept
the suggested modifications, the City would need to process a new LCP amendment
application and attempt to obtain CCC approval.
The proposed ordinance accepts and incorporates all the CCC suggested modifications
into the LCP Amendments. A redline strikeout version of the proposed code revisions is
included as Attachment G.
A summary of the suggested modifications to citywide amendment (LC2020-007)
affecting both Title 21 and Chapter 5.95 of NBMC:
Reduced Minimum Night Stay (Two nights)
The proposed minimum night stay requirement is intended to reduce the number
of disturbances at short-term lodging units and the demand on Police and Fire
Department personnel services. Specifically, this provision would discourage the
use of short-term lodging units for non-residential purposes (e.g., large gatherings,
weddings, and commercial filming), and encourage vacationers to spend multiple
days visiting the beach and other sites in the area.
The CCC determined that a three -night minimum would significantly increase the
cost associated with weekend rentals for low- and moderate -income visitors and
in many instances, make the entire visit unaffordable. Short-term lodgings provide
amenities that often make them the most affordable option for overnight stays on
the coast, particularly for groups and families when restaurant meals and parking
costs saving are considered.
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Acknowledging the City's intent in providing a minimum night stay to prevent
single -day rentals, the CCC reduced the proposed three -night minimum stay to a
less prohibitive two -night minimum stay.
Restricting Apartment Conversions to Short -Term Lodging
While the CCC embraces short-term lodging as a means of providing lower-cost
visitor accommodations, they also recognize that short-term lodgings may reduce
the availability of rental housing opportunities in coastal areas. Therefore, the CCC
adopted a suggested modification limiting the number of units within a multi -unit
structure consisting of five or more units that can be converted into short-term
lodging to no more than 20 percent of the total number of units within the
development. For example, the owner of a five -unit apartment complex would be
limited to a maximum of one short-term lodging permit. However, the owner of
multi -unit structures consisting of four units or less, such as a duplex, would
continue to be allowed to utilize all units for short-term lodging.
A summary of the Suggested Modifications to Newport Island Specific Amendment
(LC2020-008) affecting Title 21 of NBMC only:
Clarifying Minimum Parking Requirements
The intent of the proposed minimum parking requirements was to ensure that a
unit used for short-term lodging provides at least one on-site space that is open
and available for use by a renter to minimize demand for on -street parking. The
CCC suggested modification makes a minor point of clarification that the required
parking space is not intended to be a new additional space, but rather an existing
space may satisfy this requirement.
FISCAL IMPACT:
There is no fiscal impact related to this item.
ENVIRONMENTAL REVIEW:
Pursuant to the authority and criteria contained in the California Environmental Quality
Act (CEQA), Local Coastal Program Amendment No. LC2020-007 and Local Coastal
Program Amendment No. LC2020-008 are statutorily exempt from CEQA pursuant to
Section 21065 of the California Public Resources Code and Sections 15060 (c)(2), 15060
(c)(3), and 15378 of the California Code of Regulations Title 14, Division 6, Chapter 3
(CEQA Guidelines), because the LCP Amendments have no potential for resulting in
physical change to the environment, directly or indirectly. The proposed LCP
Amendments are also exempt pursuant to CEQA Guidelines Section 15061(b)(3), the
general rule that CEQA applies only to projects which have the potential for causing a
significant effect on the environment. The LCP Amendments themselves provide
additional regulations on short-term lodging; but, since the use is already permitted, it
does not authorize development that would directly result in physical change to the
environment.
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NOTICING:
Pursuant to Section 13515 of the California Code of Regulations, a review draft of the
LCP Amendment was made available, and a Notice of Availability was distributed on July
14, 2020, and November 20, 2020, to all persons and agencies on the Notice of
Availability mailing list and posted online.
Notice of this amendment was published in the Daily Pilot as an eighth -page
advertisement, consistent with the provisions of the Municipal Code. The item also
appeared on the agenda for this meeting, which was posted at City Hall and on the City
website.
In addition, notice of this hearing was mailed to all Newport Island property owners and
owners of property within 300 feet of the boundaries of Newport Island (excluding
intervening rights-of-way and waterways), and posted on the 14 properties that currently
maintain a short-term lodging permit on Newport Island, at least 10 days before the
scheduled meeting.
ATTACHMENTS:
Attachment A —
Ordinance No. 2021-28
Attachment B —
Ordinance No. 2020-26
Attachment C —
Resolution No. 2020-91 (LC2020-007)
Attachment D —
Resolution No. 2021-30 (LC2020-008)
Attachment E —
CCC Approval Letter and Suggested Modifications (LC2020-007)
Attachment F —
CCC Approval Letter and Suggested Modifications (LC2020-008)
Attachment G —
Redline Strikeout Version of Proposed Code Revisions
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ATTACHMENT A
ORDINANCE NO. 2021-28
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, AMENDING
CHAPTER 5.95 (SHORT TERM LODGING PERMIT) AND
TITLE 21 (LOCAL COASTAL PROGRAM
IMPLEMENTATION PLAN) OF THE NEWPORT BEACH
MUNICIPAL CODE RELATING TO SHORT TERM
LODGING, AND ADOPTING LOCAL COASTAL
PROGRAM AMENDMENT NO. LC2020-007 RELATED
TO SHORT TERM LODGING AND LOCAL COASTAL
PROGRAM AMENDMENT NO. LC2020-008 RELATED
TO SHORT TERM LODGING ON NEWPORT ISLAND
(PA2020-048 AND PA2020-326)
WHEREAS, Section 200 of the Charter of the City of Newport Beach ("City")
Charter 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 and the accompanying volume of vehicle traffic
burdens City streets and places heavy demand on parking, sewage and refuse facilities,
and paramedic and police services due to frequent complaints of noise disturbances,
disorderly conduct and other nuisance or illegal activity at short term lodging units;
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 California Penal Code related to disorderly conduct when violated
by occupants of short term lodging units;
WHEREAS, the presence of short term lodging within the City's residential
neighborhoods can disrupt the quietude and residential character of those 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;
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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;
WHEREAS, requiring a 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, establishing a maximum cap of 1,550 permits maintains the City's
large capacity for short term lodging, while guarding against future impacts that
unregulated expansion would create;
WHEREAS, the Newport Island community consists of a total of 119 parcels zoned
Two -Unit Residential (R-2), which could potentially allow up to two dwelling units per lot;
however, more than 68 percent of the parcels (81 parcels) are developed with single -unit
residences, making the community relatively low density and more single-family in
character;
WHEREAS, prior to 2018, only three parcels (two percent of the 157 total units) were
utilized for short term lodging. In the last three years, there has been a significant increase
in properties used for short term lodging, with a total of 18 short term lodging permits issued,
which equates to 11.5 percent of the total units on Newport Island;
WHEREAS, Newport Island is a unique triangular-shaped island community
surrounded by water channels on all sides and is only accessible via a single bridge.
Given the limited access to and narrow streets on Newport Island, it is important to ensure
that the number of short term lodging units on the island is limited so that emergency
personnel can properly respond to incidents without compromising the safety of Newport
Island residents and visitors;
WHEREAS, Newport Island was originally subdivided in 1907 and primarily
consists of older residences that are nonconforming to current modern parking standards,
impacting the limited on -street parking on Newport Island. On -street parking on Newport
Island is further impacted by visitors seeking public access to the water via nine street
ends and a public park,
WHEREAS, the proliferation of short term lodging units on Newport Island, which
has increased the number of transient users, has exacerbated the need for on -street
parking, negatively impacting the community and impacting public safety because
transient users and their guests park in red zones, interfering with emergency access,
and in front of driveways blocking access to neighborhood homes;
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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
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;
WHEREAS, Section 30500 of the California Public Resources Code requires each
county and city to prepare a local coastal program (LCP) for that portion of the coastal
zone within its jurisdiction;
WHEREAS, in 2005, the City adopted the City of Newport Beach Local Coastal
Program Coastal Land Use Plan ("Local Coastal Program"), which has been amended
from time to time, most recently on September 14, 2021, by Resolution No. 2021-79;
WHEREAS, the California Coastal Commission ("Coastal Commission")
effectively certified the City's Local Coastal Implementation Plan on January 13, 2017,
which the City added as Title 21 (Local Coastal Program Implementation Plan) ("Title 21 ")
to the Newport Beach Municipal Code ("NBMC"), whereby the City assumed coastal
development permit -issuing authority;
WHEREAS, on October 13, 2020, the City Council adopted Resolution No. 2020-
91 authorizing submittal to the Coastal Commission LCP Amendment No. LC2020-007
relating to citywide short term lodging regulations and also adopted Ordinance No. 2020-
26 amending portions of Chapter 5.95 of Title 5 of the NBMC relating to short term
lodging;
WHEREAS, on April 13, 2021, the City Council adopted Resolution No. 2021-30
authorizing submittal to the Coastal Commission LCP Amendment No. LC2020-008
relating to short term lodging on Newport Island and which amended LCP Amendment
No. LC2020-007;
WHEREAS, LCP Amendment Nos. LC2020-007 and LC2020-008 shall not
become effective until approval by the Coastal Commission and adoption, including any
modifications suggested by the Coastal Commission, by resolution(s) and/or ordinance(s)
of the City Council;
WHEREAS, at its October 13, 2021 hearing, the Coastal Commission approved
with modifications the amendments by Ordinance No. 2020-26 to NBMC Chapter 5.95
and certified LCP Amendment Nos. LC2020-007 with modifications (LCP-5-NPB-20-0070-
3) and LC2020-008 with modifications (LCP-5-NPB-21-0036-1 Part C) as being consistent
with the California Coastal Act; and
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WHEREAS, a public hearing was held by the City Council on November 30, 2021,
in the Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A
notice of time, place and purpose of the public hearing was given in accordance with the
Ralph M. Brown Act and Chapter 21.62 of the NBMC. Evidence, both written and oral, was
presented to, and considered by, the City Council at this public hearing.
NOW THEREFORE, the City Council of the City of Newport Beach ordains as
follows:
Section 1: The City Council hereby accepts the suggested modifications
approved by the California Coastal Commission.
Section 2: 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.
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.
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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 3: 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 4: 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 5: 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.
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:
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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.
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.
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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 6: 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 7: 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.
Section 8: Section 5.95.042 of Chapter 5.95 of Title 5 of the Newport Beach
Municipal Code is hereby added to read as follows:
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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). To avoid wholesale conversion of existing and new housing complexes into short
term lodgings, multi -unit developments with five or more units may permit a maximum of
twenty (20%) of the total number of units to be short term lodgings (rounded down to the
nearest whole number).
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.
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Section 9: 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
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Ordinance No. 2021 -
Page 10 of 16
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 10: Section 5.95.045, Subsection (A), condition number twenty-one (21)
of Chapter 5.95 of Title 5 of the Newport Beach Municipal Code is hereby amended 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 two (2) consecutive
nights.
Section 11: The row entitled "Short -Term Lodging" set forth in Table 21.18-1
(Allowed Uses) in Section 21.18.020(C) (Residential Coastal Zoning Districts Land Uses)
of Chapter 21.18 (Residential Coastal Zoning Districts (R -A, R-1, R -BI, R-2, and RM)) of
Title 21 (Local Coastal Program Implementation Plan) of the NBMC is amended to read
as follows.-
21-18-020
ollows:
21.18.020 Residential Coastal Zoning Districts Land Uses.
Table 21.18-1
Land Use R -BI
R-1 R-2
R-1- R-2- RM
R -A 6,000 6,000 RM -6,000 Specific Use Regulations
Residential Uses
Short -Term Lodging — A A Chapter 5.95 and Section
21.48.115
26-16
Ordinance No. 2021 -
Page 11 of 16
Section 12: Amend Section 21.48.115 (Short -Term Lodging) of Chapter 21.48
(Standards for Specific Land Uses) of Title 21 (Local Coastal Program Implementation
Plan) of the NBMC to repeal said section and replace it with the following:
21.48.115 Short -Term Lodging
A. Purpose. This section provides standards for the operation of short-term lodging
units to prevent over -burdening City services and adverse impacts on residential
neighborhoods and on coastal access and resources.
B. Permits.
1. No owner of a short-term 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 Chapter 5.95.
2. An owner shall be permitted to renew, reinstate, or transfer a valid permit in
accordance with the provisions of Chapter 5.95.
3. As set forth in Section 5.95.042 of Chapter 5.95, the maximum number of
short-term lodging permits shall be limited to one thousand five hundred and fifty (1,550)
permits at any time. If there are more than one thousand five hundred and fifty (1,550)
valid permits that have been issued as of January 13, 2022, no new permit shall be issued
to anyone on the waiting list, as described in Section 5.95.042 (D), until the total number
of permits does not exceed the one thousand five hundred and fifty (1,550) limit. To avoid
wholesale conversion of existing and new housing complexes into short-term lodgings,
multi -unit developments with five or more units may permit a maximum of twenty percent
(20%) of the total number of units to be short-term lodgings (rounded down to the nearest
whole number).
4. No short-term lodging unit shall be permitted on any lot in the R-1 (Single -
Unit Residential) Coastal Zoning District or any lot designated for single -unit dwelling land
use as part of a planned community development plan, unless the short-term lodging unit
was legally established on or before June 1, 2004.
C. Operational Standards. The owner, or any other person(s) or entity(ies) that hold(s)
legal and/or equitable title to the lodging unit, shall comply with all federal, state, and local
laws, rules, regulations and conditions of approval including, but not limited to, all short-
term lodging permit conditions, as set forth in Chapter 5.95. In addition, the owner, or
any other person(s) or entity(ies) that hold(s) legal and/or equitable title to the lodging
unit, shall:
26-17
Ordinance No. 2021 -
Page 12 of 16
1. By written agreement, limit overnight occupancy of the short-term lodging
unit to the maximum permitted by the Building Code and Fire Code.
2. 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.
3. 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.
4. Use best efforts to ensure compliance with applicable health and sanitation
regulations relating to waste disposal.
5. Post a copy of any applicable permits and conditions in a conspicuous place
within the unit.
6. Not rent, let, advertise for rent, or enter into an agreement for the rental of
any lodging unit, for less than two (2) consecutive nights.
7. 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 section.
D. Additional Permit Conditions for Newport Island (Map A-16). To the extent there is
any conflict between this subsection and other provisions of the Code related to short-
term rentals on Newport Island (Map A-16), this subsection shall govern and control.
1. In addition to the restriction set forth in Section 5.95.042 and subsection
(13)(3), the maximum number of short-term lodging permits issued for units located on
Newport Island shall be limited to twenty (20) short-term lodging permits at any one time.
If there are more than twenty (20) valid short-term lodging permits that have been issued
as of January 13, 2022, an owner shall be permitted to renew, reinstate, or transfer a valid
permit in accordance with the provisions of Chapter 5.95; however, no new permit shall
be issued unless: (a) permits are available for issuance pursuant to Section 5.95.042 and
subsection (13)(3); and (b) the total number of permits for units located on Newport Island
does not exceed twenty (20). If the City has issued the maximum number of permits
26-18
Ordinance No. 2021 -
Page 13 of 16
available for units on Newport Island, the City shall maintain a waiting list and follow the
same procedures as set forth in Section 5.95.042 (D). For purposes of this subsection,
the maximum number permits available will be calculated in the same manner as set forth
in Chapter 5.95.
2. An owner, agent, or other person shall only be allowed to rent a dwelling
unit on Newport Island for a short-term if the dwelling unit is located on a lot with an owner -
occupied dwelling unit that is managed by the owner of the owner -occupied dwelling unit.
3. The owner and/or agent shall limit the overnight occupancy of the short-
term lodging unit on Newport Island to the lesser of: (a) the number of occupants that can
be accommodated consistent with the on-site parking requirement set forth in subsection
(D)(4) below, or (b) two persons per bedroom plus two additional persons, up to a
maximum of ten persons. Additional daytime guests are allowed between the hours of
7:00 a.m. and 10:00 p.m. with the maximum daytime occupancy limited to a number equal
to maximum overnight occupancy plus six additional persons. The occupancy restrictions
set forth in this subsection shall be set forth in a written rental agreement.
4. Each short-term lodging unit on Newport Island shall provide a minimum of
one parking space in an existing garage or carport. Occupancy shall be limited to a
maximum of five overnight guests for a short-term lodging unit providing only one parking
space. The parking required by this subsection shall be free of obstructions and available
for use by the short-term lodging user.
5. Any existing permit holder of a dwelling unit that is not located on an owner -
occupied lot per subsection (D)(2) or does not meet the parking requirements of
subsection (D)(4) will be permitted to retain their permit until January 13, 2023.
6. No owner, agent, or other person shall rent or let a short-term lodging unit
on Newport Island more than once in any seven (7) consecutive day period.
Section 13: Amend Section 21.70.020 (Definitions of Specialized Terms and
Phrases) of Chapter 21.70 (Definitions) of the NBMC to include the following definition:
"Dwelling unit, owner -occupied" means a dwelling unit that is occupied by a natural
person who has at least a twenty-five percent ownership interest in the lot where
one or more dwelling units are located or a twenty-five percent ownership interest
in the entity that owns the lot where one or more of the dwelling units are located
and who resides in a dwelling unit on the same lot, which is the person's legal
domicile and permanent residence.
Section 14: Amend Section 21.80.010 (Area Maps) of Chapter 21.80 (Maps) of
the NBMC to include the following map:
26-19
Ordinance No. 2021 -
Page 14 of 16
A-16 — Newport Island (PDF)
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Section 15: The LCP, including LCP Amendment Nos. LC2020-007 and LC2020-
008, will be carried out fully in conformity with the California Coastal Act.
Section 16: The recitals provided in this ordinance are true and correct and are
incorporated into the operative part of this ordinance.
Section 17: The City Council hereby authorizes City staff to submit this ordinance
for a determination by the Executive Director of the Coastal Commission that this action
is legally adequate to satisfy the specific requirements of the Coastal Commission's
October 13, 2021, actions on LCP Amendment Request Nos. LCP-5-NPB-20-0070-3
(Short -Term Lodging) and LCP-5-NPB-21-0036-1 Part C (Newport Island Short -Term
Lodging).
26-20
Ordinance No. 2021 -
Page 15 of 16
Section 18: This ordinance shall not become effective for thirty days after adoption
and until the Executive Director of the Coastal Commission certifies that this ordinance
complies with the Coastal Commission's October 13, 2021, actions on LCP Amendment
Request Nos. LCP-5-NPB-20-0070-3 (Short -Term Lodging) and LCP-5-NPB-21-0036-1
Part C (Newport Island Short -Term Lodging).
Section 19: 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 20: The City Council finds the adoption of this ordinance is not a project
subject to the California Environmental Quality Act ("CEQA") in accordance with Section
21065 of the California Public Resources Code and Sections 15060(c)(2), 15060(c)(3), and
15378 of the California Code of Regulations Title 14, Division 6, Chapter 3 ("CEQA
Guidelines"), because it has no potential for resulting in physical change to the environment,
directly or indirectly. The proposed action is also exempt pursuant to CEQA Guidelines
Section 15061(b)(3), the general rule that CEQA applies only to projects which have the
potential for causing a significant effect on the environment. The amendments to NBMC
Chapter 5.95 and the LCP Amendments provide additional regulations on short-term
lodging, which is an existing, permitted use, and thus do not authorize development that
would directly result in physical change to the environment.
Section 21: 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. Sections 1 through 8 and
the portion of Section 10, which added Subsection 21, to Section 5.95.045, Chapter 5.95
of Title 5, of Ordinance 2020-26, are hereby superseded by this ordinance.
Section 22: 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.
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Ordinance No. 2021 -
Page 16 of 16
This ordinance was introduced at a regular meeting of the City Council of the City
of Newport Beach held on the 30th day of November 2021, and adopted on the 14th day
of December, 2021, by the following vote, to -wit:
AYES:
NAYS:
ABSENT:
RECUSED:
BRAD AVERY, MAYOR
UX61=616
LEILANI I. BROWN, CITY CLERK
APPROVED AS TO FORM:
CI ATTORNEY'S OFFICE
A, C ff
a�-
AAON C. HARP, CITY ATTORNEY
26-22
ATTACHMENT B
City Council Ordinance
No. 2020-26
26-23
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.
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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
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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.
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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.
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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
ollows:
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.
26-30
Ordinance No. 2020-26
Page 8 of 11
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
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
26-31
Ordinance No. 2020-26
Page 9 of 11
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.
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.
26-32
Ordinance No. 2020-26
Page 10 of 11
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.
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.
26-33
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: Mayor Pro Tem AveryCouncil Member Brenner Council Member Dixon
Council Member Herdman
NAYS: Mayor O'Neill, Council Member Duffield Council Member Muldoon
ABSENT:
ATTEST:
'-I
bTY CLERK
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
AARON C. HARP, CITY A TORNEY
26-34
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven; that the foregoing ordinance, being Ordinance
No. 2020-26 was duly introduced on the 1311 day of October, 2020, at a regular meeting, and adopted by
the City Council at a regular meeting duly held on the 27th day of October, 2020, and that the same was
so passed and adopted by the following vote, to wit:
AYES: Mayor Pro Tem Brad Avery, Council Member Joy Brenner, Council Member Diane Dixon,
Council Member Jeff Herdman
NAYS: Mayor Will O'Neill, Council Member Duffy Duffield, Council Member Kevin Muldoon
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of
said City this 28th day of October, 2020.
t
LeilaVii I. Brown, MMC
City Clerk
City of Newport Beach, California
CERTIFICATE OF PUBLICATION
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, LEILANI I. BROWN, City Clerk of the City of Newport Beach, California, do hereby certify that
Ordinance No. 2020-26 has been duly and regularly published according to law and the order of the City .
Council of said City and that same was so published in The Daily Pilot, a newspaper of general circulation
on the following dates:
2020.
Introduced Ordinance: October 17, 2020
Adopted Ordinance: October 31, 2020
In witness whereof, I have hereunto subscribed my name this day of
Leilani I. Brown, MMC
City Clerk
City of Newport Beach, California
26-35
ATTACHMENT C
City Council Resolution
No. 2020-91
(LC2020-007)
26-36
RESOLUTION NO. 2020-91
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, AUTHORIZING
SUBMITTAL OF LOCAL COASTAL PROGRAM
AMENDMENT NO. LC2020-007 TO THE CALIFORNIA
COASTAL COMMISSION, AN AMENDMENT TO TITLE
21 (LOCAL COASTAL PROGRAM IMPLEMENTATION
PLAN) OF THE NEWPORT BEACH MUNICIPAL CODE
RELATED TO SHORT-TERM LODGING (PA2020-048)
WHEREAS, Section 200 of the City of Newport Beach ("City") Charter 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. To accommodate this large influx, the City
has in excess of 4,000 hotel/motel rooms and 1,500 short-term lodging units;
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, a survey conducted by the City of permitted short-term lodging within
52 communities that are located in Orange County and coastal regions of Los Angeles
and San Diego counties has shown that the City has the third highest concentration of
short-term lodging units, exceeding 177 short-term lodging units per 10,000 residents;
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;
26-37
Resolution No. 2020-91
Page 2 of 6
WHEREAS, approximately 3.4 percent of the City's housing stock is utilized for
short-term lodging units;
WHEREAS, the City has an interest in preserving its housing stock and the quality
and character of its existing residential neighborhoods;
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;
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;
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, establishing a maximum cap of 1,550 permits accommodates a minor
expansion of the City's short-term lodging capacity, while guarding against future impacts
that unregulated expansion would create;
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;
WHEREAS, a telephonic public hearing was held by the Planning Commission on
July 23, 2020, in the Council Chambers located at 100 Civic Center Drive, Newport
Beach, California, due to the Declaration of a State Emergency and Proclamation of Local
Emergency related to COVID-19. A notice of time, place, and purpose of the public
hearing was given in accordance with Government Code Section 54950 et seq. ("Ralph
M. Brown Act") and Chapter 21.62 (Public Hearings) of the Newport Beach Municipal
Code ("NBMC"). Evidence, both written and oral, was presented to, and considered by,
the Planning Commission at this public hearing.
WHEREAS, Local Coastal Program Amendment No. LC2020-007, as drafted at
the time, included more restrictive proposed standards, including prohibiting the issuance
of any new short-term lodging permits and establishing a minimum six (6) night stay for
non owner -occupied units.
26-38
Resolution No. 2020-91
Page 3 of 6
WHEREAS, at the hearing, the Planning Commission adopted Resolution No.
PC2020-027 by a majority vote (4 ayes, 2 nayes), thereby recommending the City Council
deny Local Coastal Program Amendment No. LC2020-007;
WHEREAS, a telephonic study session was held by the City Council on September
8, 2020, in the Council Chambers located at 100 Civic Center Drive, Newport Beach,
California, due to the Declaration of a State Emergency and Proclamation of Local
Emergency related to COVID-19 to discuss short-term lodging in the City;
WHEREAS, a telephonic public hearing was held by the City Council on October
13, 2020, in the Council Chambers located at 100 Civic Center Drive, Newport Beach,
California, due to the Declaration of a State Emergency and Proclamation of Local
Emergency related to COVID-19. A notice of time, place and purpose of the public
hearings was given in accordance with the Ralph M. Brown Act, and Chapter 21.62
(Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and
considered by, the City Council at these public hearings; and
WHEREAS, pursuant to Section 13515 of the California Code of Regulations Title
14, Division 5.5, Chapter 8, Subchapter 2, Article 5 ("Public Participation"), drafts of LCP
Amendment No. LC2020-007 were made available and a Notice of Availability was
distributed at least six (6) weeks prior to the City Council public hearing.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The City Council authorizes staff to submit Local Coast Amendment
No. LC2020-007, as set forth below, to the California Coastal Commission.
Section 2: The row entitled "Short -Term Lodging" set forth in Table 21.18-1
(Allowed Uses) in Section 21.18.020(C) (Residential Coastal Zoning Districts Land Uses)
of Chapter 21.18 (Residential Coastal Zoning Districts (R -A, R-1, R -BI, R-2, and RM)) of
Title 21 (Local Coastal Program Implementation Plan) of the NBMC is amended to read
as follows:
26-39
Resolution No. 2020-91
Page 4 of 6
Land Use
R -BI
R-1
R-2 RM
R-1-
R-2- RM -
R -A
6,000
6,000 6,000 Specific Use Regulations
P
ps 4...
M_...:c°
,,,r:. --€s.c '�v h_
.< 1
x._.:,..,.m3.sT,.. a � ....:. �..� ... <. ._. -
Short -Term Lodging —
—
A A Chapter 5.95 and Section
21.48.115
Section 3: Section 21.48.115 (Short-term Lodging) of Chapter 21.48 (Standards
for Specific Land Uses) of Title 21 (Local Coastal Program Implementation Plan) of the
NBMC is repealed and replaced with the following:
21.48.115 Short -Term Lodging.
A. Purpose. This section provides standards for the operation of short-term lodging
units to prevent over -burdening City services and adverse impacts on residential
neighborhoods and on coastal access and resources.
B. Zoning Districts and Planned Communities. No short-term lodging unit shall be
permitted on any parcel in the R-1 (Single -Unit Residential) Coastal Zoning District or any
parcel designated for single -unit dwelling land use as part of a planned community
development plan, unless the short-term lodging unit was legally established on or before
June 1, 2004.
C. Permits. No owner of a short term 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 Chapter 5.95. As set forth in Section 5.95.042,
of Chapter 5.95, 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 Chapter 5.95; however, no new permit shall be issued to anyone
on the waiting list, as described in Section 5.95.043 (D), until the total number of permits
does not exceed the fifteen hundred and fifty (1,550).
D. Operational Standards. The owner, or any other person(s) or entity(ies) that hold(s)
legal and/or equitable title to the lodging unit, shall comply with all federal, state, and local
laws, rules, regulations and conditions of approval including, but not limited to, all short
term lodging permit conditions set forth in Chapter 5.95. In addition, the owner, or any
other person(s) or entity(ies) that hold(s) legal and/or equitable title to the lodging unit,
shall:
26-40
Resolution No. 2020-91
Page 5 of 6
1. By written agreement, limit overnight occupancy of the short-term lodging
unit to the maximum permitted by the Building Code and Fire Code.
2. 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.
3. 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.
4. Use best efforts to ensure compliance with applicable health and sanitation
regulations relating to waste disposal.
5. Post a copy of any applicable permits and conditions in a conspicuous place
within the unit.
6. Not rent, let, advertise for rent, or enter into an agreement for the rental of
any lodging unit, for less than three (3) consecutive nights.
7. 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 section.
Section 4: LCP Amendment No. LC2020-007, shall be carried out in full
conformance with the California Coastal Act of 1976 as set forth in the California Public
Resources Code Section 30000 et seq. LCP Amendment No. LC2020-007 shall not
become effective until approval by the Coastal Commission and adoption, including any
modifications suggested by the Coastal Commission, by resolution(s) and/or ordinance(s)
of the City Council.
Section 5: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
26-41
Resolution No. 2020-91
Page 6 of 6
Section 6: If any section, subsection, sentence, clause or phrase of this
resolution 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 resolution. The City
Council hereby declares that it would have passed this resolution, 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 7: The City Council finds the adoption of this resolution is not a project
subject to the California Environmental Quality Act ("CEQA") in accordance with Section
21065 of the California Public Resources Code and Sections 15060 (c)(2), 15060 (c)(3),
and 15378 of the California Code of Regulations Title 14, Division 6, Chapter 3 ("CEQA
Guidelines"). The proposed action is also exempt pursuant to CEQA Guidelines Section
15061(b)(3), the general rule that CEQA applies only to projects which have the potential
for causing a significant effect on the environment. The LCP Amendment itself provides
additional regulations on short-term lodging; but, since the use is already permitted, it does
not authorize development that would directly result in physical change to the environment.
Section 8: This resolution shall take effect immediately upon its adoption by the
City Council, and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 131h day of October, 2020
Will O'Neill
Mayor
ATTEST: _c N WOW
04C
Leilani I. Brown
City Clerk`
JR()ON IA -
APPROVED AS TO FORM:
CITY TTORNEY'S OFFICE
" ( , V"',
Aaron'C. Harp
City Attorney
26-42
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH
I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven; the foregoing resolution, being Resolution
No. 2020-91, was duly introduced before and adopted by the City Council of said City at a regular
meeting of said Council held on the 13th day of October, 2020; and the same was so passed and adopted
by the following vote, to wit:
AYES: Council Member Joy Brenner, Council Member Diane Dixon, Council Member Duffy
Duffield, Council Member Jeff Herdman
NAYS: Mayor Will O'Neill, Mayor Pro Tem Brad Avery, Council Member Kevin Muldoon
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of
said City this 141h day of October, 2020.
6c
&YJK-
Leilani I. Brown
City Clerk
is
26-43
ATTACHMENT D
City Council Resolution
No. 2021-30
(LC2020-008)
26-44
RESOLUTION NO. 2021-30
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, AUTHORIZING
SUBMITTAL OF LOCAL COASTAL PROGRAM
AMENDMENT NO. LC2020-008 TO THE CALIFORNIA
COASTAL COMMISSION, AN AMENDMENT TO TITLE
21 (LOCAL COASTAL PROGRAM IMPLEMENTATION
PLAN) OF THE NEWPORT BEACH MUNICIPAL CODE
RELATED TO SHORT-TERM LODGING ON NEWPORT
ISLAND (PA2020-326)
WHEREAS, Section 200 of the City of Newport Beach ("City") Charter 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, Section 30500 of the California Public Resources Code requires each
county and city to prepare a local coastal program ("LCP") for that portion of the coastal
zone within its jurisdiction;
WHEREAS, in 2005, the City adopted the City of Newport Beach Local Coastal
Program Coastal Land Use Plan ("Local Coastal Program"), as amended from time to
time including most recently on February 12, 2019, via Resolution No. 2019-16;
WHEREAS, the California Coastal Commission effectively certified the City's Local
Coastal Implementation Plan on January 13, 2017, and the City added Title 21 ("Local
Coastal Program Implementation Plan") ("Title 21") to the City of Newport Beach
Municipal Code ("NBMC") whereby the City assumed coastal development permit -issuing
authority on January 30, 2017;
WHEREAS, on October 13, 2020, after deliberation of Local Coastal Program
Amendment No. LC 2020-007, the City Council initiated an amendment to Title 21 (Local
Coastal Program Implementation Plan) ("LCP Amendment") related to short-term lodging
on Newport Island;
26-45
Resolution No. 2021-30
Page 2 of 9
WHEREAS, the LCP Amendment is consistent with the City of Newport Beach
General Plan ("General Plan") including, but not limited to, General Plan Policy LU 2.6
(Visitor Serving Uses), which provides for "... uses that serve visitors to Newport Beach's
ocean, harbor, open spaces, and other recreational assets, while integrating them to protect
neighborhoods and residents" in that the LCP Amendment continues to allow short-term
lodging as a visitor serving use, while providing necessary protections to the residents of
Newport Island;
WHEREAS, the LCP Amendment is consistent with the following policies of the Local
Coastal Program:
Policy 2.3.3-6: Continue to issue short-term lodging permits for the rental of
dwelling units as a means of providing lower-cost overnight visitor
accommodations while continuing to prevent conditions leading to increase
demand for City services and adverse impacts in residential areas and coastal
resources; and
Policy 2.7-3: Continue to authorize short-term rental of dwelling units pursuant to
permits and standard conditions that ensure the rentals will not interfere with
public access and enjoyment of coastal resources;
WHEREAS, the Newport Island community consists of a total of 119 parcels zoned
Two -Unit Residential (R-2), which could potentially allow up to two dwelling units per lot;
however, more than 68 percent of the parcels (81 parcels) are developed with single -unit
residences, making the community relatively low density and more single-family in
character;
WHEREAS, prior to 2018, only 3 parcels (two percent (2%) of the 157 total units)
were utilized for short-term lodging;
WHEREAS, in the last three years, there has been a significant increase in properties
used for short-term lodging, with a total of 18 short-term lodging permits issued, which
equates to 11.5 percent of the total units on Newport Island;
WHEREAS, Newport Island is a unique triangular-shaped island community
surrounded by water channels on all sides and is only accessible via a single bridge;
WHEREAS, given the limited access to and narrow streets on Newport Island, it is
important to ensure that the number of short-term lodging units on the island is limited so
that emergency personnel can properly respond to incidents without compromising the
safety of Newport Island residents and visitors;
WHEREAS, Newport Island was originally subdivided in 1907 and primarily
consists of older residences that are nonconforming to current modern parking standards,
impacting the limited on -street parking on Newport Island;
26-46
Resolution No. 2021-30
Page 3 of 9
WHEREAS, on -street parking on Newport Island is further impacted by visitors
seeking public access to the water via nine street ends and a public park;
WHEREAS, the proliferation of short-term lodging units on Newport Island, which
has increased the number of transient users, has exacerbated the need for on -street
parking, negatively impacting the community and impacting public safety because
transient users and their guests park in red zones, interfering with emergency access,
and in front of driveways blocking access to neighborhood homes;
WHEREAS, Newport Island is a residential area where dwelling units are primarily
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 Newport Island can sometimes
adversely disrupt the quietude and residential character of the neighborhood;
WHEREAS, the City has an interest in preserving its housing stock and the quality
and character of the Newport Island residential community;
WHEREAS, a telephonic public hearing was held by the Planning Commission on
December 3, 2020, in the Council Chambers located at 100 Civic Center Drive, Newport
Beach, California, observing restrictions due to the Declaration of a State Emergency and
Proclamation of Local Emergency related to COVID-19. A notice of time, place and
purpose of the public hearing was given in accordance with the California Government
Code Section 54950 et seq. ("Ralph M. Brown Act'), and Chapter 21.62 (Public Hearings)
of the NBMC. Evidence, both written and oral, was presented to, and considered by, the
Planning Commission at this public hearing;
WHEREAS, at the hearing, the Planning Commission adopted Resolution No.
PC2020-044 by a majority vote (6 ayes, 1 nays), thereby recommending the City Council
deny Local Coastal Program Amendment No. LC2020-008;
WHEREAS, a telephonic public hearing was held by the City Council on April 13,
2021, in the Council Chambers located at 100 Civic Center Drive, Newport Beach,
California, observing restrictions due to the Declaration of a State Emergency and
Proclamation of Local Emergency related to COVID-19. A notice of time, place and
purpose of the public hearing was given in accordance with the California Government
Code Section et seq. ("Ralph M. Brown Act'), and Chapter 21.62 (Public Hearings) of the
NBMC. Evidence, both written and oral, was presented to, and considered by, the City
Council at this public hearing;
26-47
Resolution No. 2021-30
Page 4 of 9
WHEREAS, the City Council has reviewed and considered evidence and
documentation attesting to the need to limit the number of short-term lodging permits on
Newport Island; and
WHEREAS, pursuant to Section 13515 of the California Code of Regulations Title
14, Division 5.5, Chapter 8, Subchapter 2, Article 5 ("Public Participation"), drafts of LCP
Amendment No. LC2020-008 were made available and a Notice of Availability was
distributed at least six (6) weeks prior to the City Council public hearing.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The City Council authorizes staff to submit Local Coast Amendment
No. LC2020-008, as set forth below, to the California Coastal Commission as an
amendment to LC2020-007 previously submitted to the California Coastal Commission.
Section 2: Amend Section 21.48.115 (Short -Term Lodging) of Chapter 21.48
(Standards for Specific Land Uses) of Title 21 (Local Coastal Program Implementation
Plan) of the NBMC to repeal said section and replace it with the following:
21.48.115 Short -Term Lodging
A. Purpose. This section provides standards for the operation of short-term lodging
units to prevent over -burdening City services and adverse impacts on residential
neighborhoods and on coastal access and resources.
B. Permits.
1. No owner of a short-term 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 Chapter 5.95.
2. An owner shall be permitted to renew, reinstate, or transfer a valid permit in
accordance with the provisions of Chapter 5.95.
3. As set forth in Section 5.95.042, of Chapter 5.95, the maximum number of
short-term lodging permits shall be limited to one thousand five hundred and fifty (1,550)
permits at any time. If there are more than one thousand five hundred and fifty (1,550)
valid permits that have been issued as of [EFFECTIVE DATE OF ORDINANCE NO.
2020-26], no new permit shall be issued to anyone on the waiting list, as described in
Section 5.95.042 (D), until the total number of permits does not exceed the one thousand
five hundred and fifty (1,550) limit.
Resolution No. 2021-30
Page 5 of 9
4. No short-term lodging unit shall be permitted on any lot in the R-1 (Single -
Unit Residential) Coastal Zoning District or any lot designated for single -unit dwelling land
use as part of a planned community development plan, unless the short-term lodging unit
was legally established on or before June 1, 2004.
C. Operational Standards. The owner, or any other person(s) or entity(ies) that hold(s)
legal and/or equitable title to the lodging unit, shall comply with all federal, state, and local
laws, rules, regulations and conditions of approval including, but not limited to, all short
term lodging permit conditions, as set forth in Chapter 5.95. In addition, the owner, or
any other person(s) or entity(ies) that hold(s) legal and/or equitable title to the lodging
unit, shall:
1. By written agreement, limit overnight occupancy of the short-term lodging
unit to the maximum permitted by the Building Code and Fire Code.
2. 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.
3. 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.
4. Use best efforts to ensure compliance with applicable health and sanitation
regulations relating to waste disposal.
5. Post a copy of any applicable permits and conditions in a conspicuous place
within the unit.
6. Not rent, let, advertise for rent, or enter into an agreement for the rental of
any lodging unit, for less than three (3) consecutive nights.
7. 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 section.
26-49
Resolution No. 2021-30
Page 6 of 9
D. Additional Permit Conditions for Newport Island (Map A-16). To the extent there is
any conflict between this subsection and other provisions of the Code related to short-
term rentals on Newport Island (Map A-16), this subsection shall govern and control.
1. In addition to the restriction set forth in Section 5.95.042 and subsection
(13)(3), the maximum number of short-term lodging permits issued for units located on
Newport Island, shall be limited to twenty (20) short-term lodging permits at any one time.
If there are more than twenty (20) valid short-term lodging permits that have been issued
as of the [EFFECTIVE DATE OF ORDINANCE], an owner shall be permitted to renew,
reinstate, or transfer a valid permit in accordance with the provisions of Chapter 5.95;
however, no new permit shall be issued unless: (a) permits are available for issuance
pursuant to Section 5.95.042 and subsection (13)(3); and (b) the total number of permits
for units located on Newport Island does not exceed twenty (20). If the City has issued
the maximum number of permits available for units on Newport Island, the City shall
maintain a waiting list and follow the same procedures as set forth in Section 5.95.042
(D). For purposes of this subsection, the maximum number permits available will be
calculated in the same manner as set forth in Chapter 5.95.
2. An owner, agent, or other person shall only be allowed to rent a dwelling
unit on Newport Island for a short-term if the dwelling unit is located on a lot with an owner -
occupied dwelling unit that is managed by the owner of the owner -occupied dwelling unit.
3. The owner and/or agent shall limit the overnight occupancy of the short-
term lodging unit on Newport Island to the lesser of: (a) the number of occupants that can
be accommodated consistent with the on-site parking requirement set forth in subsection
(D)(4) below, or (b) two persons per bedroom plus two additional persons, up to a
maximum of ten persons. Additional daytime guests are allowed between the hours of
7:00 a.m. and 10:00 p.m. with the maximum daytime occupancy limited to a number equal
to maximum overnight occupancy plus six additional persons. The occupancy restrictions
set forth in this subsection shall be set forth in a written rental agreement.
4. Each short-term lodging unit on Newport Island shall provide a minimum of
one parking space in a garage or carport. Occupancy shall be limited to a maximum of
five overnight guests for a short-term lodging unit providing only one parking space. The
parking required by this subsection shall be free of obstructions and available for use by
the short-term lodging user.
5. Any existing permit holder of a dwelling unit that is not located on an owner -
occupied lot per subsection (D)(2) or does not meet the parking requirements of
subsection (D)(4) will be permitted to retain their permit until [ONE YEAR AFTER
EFFECTIVE DATE OF ORDINANCE].
26-50
Resolution No. 2021-30
Page 7 of 9
6. No owner, agent, or other person shall rent or let a short-term lodging unit
on Newport Island more than once in any seven (7) consecutive day period.
Section 3: Amend Section 21.70.020 (Definitions of Specialized Terms and
Phrases) of Chapter 21.70 (Definitions) of the NBMC to include the following definition.-
"Dwelling
efinition:
"Dwelling unit, owner -occupied" means a dwelling unit that is occupied by a natural
person who has at least a twenty-five percent ownership interest in the lot where one or
more dwelling units are located or a twenty five percent ownership interest in the entity
that owns the lot where one or more of the dwelling units are located and who resides in
a dwelling unit on the same lot, which is the person's legal domicile and permanent
residence.
Section 4: Amend Section 21.80.010 (Area Maps) of Chapter 21.80 (Maps) of
the NBMC to include the following map:
A-16 — Newport Island (PDF)
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26-51
Resolution No. 2021-30
Page 8 of 9
Section 5: LCP Amendment No. LC2020-008, shall be carried out in full
conformance with the California Coastal Act of 1976 as set forth in the California Public
Resources Code Section 30000 et seq. LCP Amendment No. LC2020-008 shall not
become effective until approval by the Coastal Commission and adoption, including any
modifications suggested by the Coastal Commission, by resolution(s) and/or ordinance(s)
of the City Council.
Section 6: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
Section 7: If any section, subsection, sentence, clause or phrase of this
resolution 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 resolution. The
City Council hereby declares that it would have passed this resolution, 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 the adoption of this resolution is not a project
subject to the California Environmental Quality Act ("CEQA") in accordance with Section
21065 of the California Public Resources Code and Sections 15060 (c)(2), 15060 (c)(3),
and 15378 of the California Code of Regulations Title 14, Division 6, Chapter 3 ("CEQA
Guidelines"), because it has no potential for resulting in physical change to the environment,
directly or indirectly. The proposed action is also exempt pursuant to CEQA Guidelines
Section 15061(b)(3), the general rule that CEQA applies only to projects which have the
potential for causing a significant effect on the environment. The LCP Amendment itself
provides additional regulations on short-term lodging; but, since the use is already permitted,
it does not authorize development that would directly result in physical change to the
environment.
26-52
Resolution No. 2021-30
Page 9 of 9
Section 9: This resolution shall take effect immediately upon its adoption by the
City Council, and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 13th day of April, 2021
v Iz-, r, ��
Bra ery
Mar
ATTEST: 0,0 rm
26-53
Leilani I. Brown —
n
City Clerk
r --
C'q
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Aaron C. Harp
City Attorney
26-53
STATE OF CALIFORNIA
COUNTY OF ORANGE ss.
CITY OF NEWPORT BEACH
I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven; the foregoing resolution, being Resolution
No. 2021-30 was duly introduced before and adopted by the City Council of said City at a regular meeting
of said Council held on the 131h day of April, 2021; and the same was so passed and adopted by the
following vote, to wit:
AYES: Mayor Brad Avery, Council Member Joy Brenner, Council Member Diane Dixon, Council
Member Duffy Duffield
NAYS: Mayor Pro Tem Kevin Muldoon, Council Member Noah Blom, Council Member Will
O'Neill
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of
said City this 141h day of April, 2021.
0,'—Leilani I. Brown
City Clerk
Newport Beach, California
26-54
ATTACHMENT E
Coastal Commission
Approval Letter and
Suggested Modifications
(LC2020-007)
26-55
1.
STATE OF CALIFORNIA - NATURAL RESOURCES AGENCY
CALIFORNIA COASTAL COMMISSION
SOUTH COAST DISTRICT OFFICE
301 E. OCEAN BLVD., SUITE 300
LONG BEACH, CA 90802
(562)590-5071
Jaime Murillo, Principal Planner
Community Development Department
City of Newport Beach
100 Civic Center Drive
Newport Beach CA 92660
GAVIN NEWSOM, GOVERNOR
October 18, 2021
Re: City of Newport Beach LCP Amendment Request No. LCP-5-NPB-20-0070-3 (Short
Term Lodging)
Dear Mr. Murillo:
You are hereby notified that the California Coastal Commission, at its October 13, 2021
meeting, approved City of Newport Beach Local Coastal Program (LCP) Amendment
No. LCP-5-NPB-20-0070-3 with suggested modifications. The amendment to the
Implementation Plan (IP) portion of the Newport Beach certified LCP will amend IP
Section 21.48.115 (Short Term Lodging).
The LCP amendment will be fully effective once:
1. The City of Newport Beach City Council adopts the Commission's suggested
modifications,
2. The City of Newport Beach City Council forwards the adopted suggested
modifications to the Commission by Resolution, and,
3. The Executive Director certifies that the City has complied with the Commission's
October 13, 2021 action.
The Coastal Act requires that the City's adoption of the suggested modifications be
completed within six (6) months of the Commission's action. Pursuant to the
Commission's action on October 13, 2021, certification of LCP Amendment No. LCP-5-
NPB-20-0070-3 is subject to the attached Suggested Modifications (Attachment "A").
Thank you for your cooperation and we look forward to working with you and your staff
in the future. If you have any questions regarding the modifications required for effective
certification of this LCP amendment, please contact Liliana Roman at our Long Beach
office (562) 590-5071.
Sincerely,
Zach Rehm,
South Coast District Supervisor
Page 1 of 4
26-56
Attachment "A"
Suggested
Modifications
26-57
Suggested Modification #1 — Modify proposed new IP Section 21.48.115(D)6 as
follows:
6. Not rent. let, advertise for rent. or enter into an aareement for the rental of
any lodging unit, for less than (3) two2 consecutive nights.
Suggested Modification #2 — Add the following language to the end of the proposed
new IP Section 21.48.115(C) as follows:
C. Permits. No owner of a short term 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 Chapter 5.95. As set forth in Section 5.95.042,
of Chapter 5.95, 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 Chapter 5.95; however, no new permit shall be issued to anyone
on the waiting list, as described in Section 5.95.043 (D), until the total number of permits
does not exceed the fifteen hundred and fifty (1,550). To avoid wholesale conversion
of existina and new housing complexes into short-term lodainas, multi -unit
developments with five or more units may permit a maximum of twenty percent
20%) of the total number of units to be short term lodainas (rounded down to the
nearest whole number).
Suggested Modification #3 — Reflect Suggested Modification #2 language in Title 5
Chapter 5.95, Section 5.95.042(A):
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). To avoid
wholesale conversion of existing and new housing complexes into short-
term lodainas, multi -unit developments with five or more units may permit
a maximum of twenty (20%) of the total number of units to be short-term
lodainas (rounded down to the nearest whole number).
26-58
Suggested Modification #4 — Reflect Suggested Modification #1 language to reduce
the minimum number of rental nights from 3 to 2 nights in Title 5 Chapter 5.95, Section
5.95.045(A)(21):
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
two 2 consecutive nights.
26-59
ATTACHMENT F
Coastal Commission
Approval Letter and
Suggested Modifications
(LC2020-008)
26-60
`STATE OF CALIFORNIA - NATURAL RESOURCES AGENCY
CALIFORNIA COASTAL COMMISSION
.SOUTH COAST DISTRICT OFFICE
301 E. OCEAN BLVD., SUITE 300
LONG BEACH, CA 90802
(562) 590-5071
GAVIN NEWSOM, GOVERNOR
October 18, 2021
Jaime Murillo, Principal Planner
Community Development Department
City of Newport Beach
100 Civic Center Drive
Newport Beach CA 92660
Re: City of Newport Beach LCP Amendment Request No. LCP-5-NPB-21-0036-1 Part C
(Newport Island Short Term Lodging)
Dear Mr. Murillo:
You are hereby notified that the California Coastal Commission, at its October 13, 2021
meeting, approved City of Newport Beach Local Coastal Program (LCP) Amendment
No. LCP-5-NPB-21-0036-1 Part C with suggested modifications. The amendment to
the Implementation Plan (IP) portion of the Newport Beach certified LCP will amend IP
Section 21.48.115 (Short Term Lodging).
The LCP amendment will be fully effective once:
1. The City of Newport Beach City Council adopts the Commission's suggested
modifications,
2. The City of Newport Beach City Council forwards the adopted suggested
modifications to the Commission by Resolution, and,
3. The Executive Director certifies that the City has complied with the Commission's
October 13, 2021 action.
The Coastal Act requires that the City's adoption of the suggested modifications be
completed within six (6) months of the Commission's action. Pursuant to the
Commission's action on October 13, 2021, certification of LCP Amendment No. LCP-5-
NPB-21-0036-1 Part C is subject to the attached Suggested Modifications (Attachment
„A„
Thank you for your cooperation and we look forward to working with you and your staff
in the future. If you have any questions regarding the modifications required for effective
certification of this LCP amendment, please contact Liliana Roman at our Long Beach
office (562) 590-5071.
Sincerely,
Zach Rehm,
South Coast District Supervisor
Page 1 of 3
26-61
Attachment "A"
Suggested
Modifications
26-62
Suggested Modification #1 — Modify proposed new IP Section 21.48.115(D)4 as
follows:
4. Each short-term lodging unit on Newport Island shall provide a minimum of one
parking space in an existing garage or carport. Occupancy shall be limited to a
maximum of five overnight guests for a short-term lodging unit that sing
only one parking space. The parking required by this subsection shall be free of
obstructions and available for use by the short-term lodging user.
Suggested Modification #2 — Clarification regarding changes to IP Section 21.48.115
approved by the Commission under LCP Amendment No. LCP-5-NPB-20-0070-3:
Amendments to the language of IP Section 21.48.115 and Chapter 5.95 approved
by the Commission under LCP Amendment No. LCP-5-NPB-20-0070-3 at its
October 13. 2021 meeting shall be reflected in this subject LCP Amendment No.
LCP-5-NPB-21-0036-1 Part C.
26-63
ATTACHMENT G
Redline Strikeout
Revisions
26-64
Redline Strikeout Revisions to Chapter 5.95 and Title 21
Related to Short Term Lodging
Chapter 5.95 Revisions (Affected Sections)
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 Permits
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.
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 the 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 impose responsibility on the owner of
the property, either personally or through an agent, to control the conduct of guests and
occupants.
26-65
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 is particularly acute in residential districts where the
peace, safety and general welfare of the long term residents are 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 and address
the Gontini ied burden en City cen,ir ec gni-! adverse impacts on residential neighborhoods posed
by short term lodgings.
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; short term I.,.-lg4Kj nermi+ the
management of the short term lodging unit or units, and the compliance with the GeRditinno to
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.
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 er Yevr Rewal
thereof, shall be filed with the Finance Director upon forms provided by the City_ and shal
Gontain the following information:
26-66
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:
Al. 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.
S3. Evidence of a valid business license issued by the City for the separate business of
operating a short term lodging unit or units.
S4. The number of bedrooms in the lodging unit.
€5. The gross floor area of the lodging unit.
F-6. The number of parking spaces available onsite and a description indicating the
location and size of each parking space.
t . A nuisance response plan, which sets forth the owner's plan for handling disruptive
guests.
98. 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.
Acknowledgement of receipt and inspection of a copy of all regulations pertaining to
the operation of a short term lodging unit.
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.
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.
26-67
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
ahandoned_
5.95.035 Denial of Permit.
If permits are available for issuance, no timely application filed by an owner for an annual
permit., er 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 for a „r,i+ eligible to he used as a chert term lerdg'Rg , ini+
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 for a new annual permit, the renewal of an existing permit, the reinstatement of a
permit, or the transfer of a er renewal appliGatien fer a chert term lerdgiRg 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.
5.95.042 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 Dermits that have been issued as of the effective date of this section. an owner shall be
itted to renew. reinstate. or transfer a valid Dermit in accordance with the Drovisions 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). To avoid wholesale conversion of existing and new
housing complexes into short-term lodgings, multi -unit developments with five or more units
may permit a maximum of twenty (20%) of the total number of units to be short-term lodgings
(rounded down to the nearest whole number).
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).
26-68
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.
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 sixtv-five (365) days of the date title is transferred to the inter vivos trust. familv
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
Dermit. in accordance with Section 5.95.030. is filed within three hundred and sixtv-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 familv member.
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4. If the owner sells the lodaina 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 lodaina permit for the short term lodain
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 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 U 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_
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
twenty-five (25).
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 (A)(3) of this section.
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.
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.
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7. The owner of the short term lodging unit shall use best efforts to ensure compliance
with all the provisions of Title 6.
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.
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 on-site 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.
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 and Chapters 3.16 and 3.28.
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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 resides 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 business days, if there is a change in the local contact person(s).
13. The owner shall ensure that all available parking spaces on site, 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 on site 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.
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 nonresidential uses, including, but not limited to, large
commercial or non-commercial gatherings, commercial filming and/or nonowner 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 and 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
calendar days after the City serves the owner with a request for inspection in accordance
with Section 1.08.080. 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.
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20. The owner shall provide the City with a copy of any written rental agreement(s) and
the good neighbor policy, within seven 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 1.08.080.
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 two (2) 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
was 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.
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.
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.
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Title 21 (Local Coastal Program Implementation Plan) Revisions- Affected Sections
21.18.020 Residential Coastal Zoning Districts Land Uses.
Table 21.18-1
Land Use R -BI
R-1 R-2
R-1- R-2- RM
R -A 6,000 6,000 RM -6,000 Specific Use Regulations
Residential Uses
Short -Term Lodging — — A A Chapter 5.95 and Section
21.48.115
21.48.115 Short -Term Lodging.
A. Purpose. This section provides standards for the operation of short-term lodging units to
prevent over -burdening City services and adverse impacts on residential neighborhoods and on
coastal access and resources.
B. Permits.
No owner of a short-term lodaina unit shall advertise for rent. or rent a lodaina unit
located within a residential district for a short term, without a valid short-term lodging permit for
that unit, issued pursuant to Chapter 5.95.
2. An owner shall be permitted to renew. reinstate. or transfer a valid Dermit in
accordance with the provisions of Chapter 5.95.
3. As set forth in Section 5.95.042. of Chaster 5.95. the maximum number of short-
term lodging permits shall be limited to one thousand five hundred and fifty (1,550) permits at any
time. If there are more than one thousand five hundred and fifty (1,550) valid permits that have
been issued as of January 13, 2022, no new permit shall be issued to anyone on the waiting list,
as described in Section 5.95.042 (D), until the total number of permits does not exceed the one
thousand five hundred and fifty (1,550) limit. To avoid wholesale conversion of existing and new
housing complexes into short-term lodgings, multi -unit developments with five or units may permit
a maximum of twentv Dercent (20%) of the total number of units to be short-term Iodainas
(rounded down to the nearest whole number).
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4. No short-term lodging unit shall be permitted on any lot in the R-1 (Single -Unit
Residential) Coastal Zoning District or any lot designated for single -unit dwelling land use as part
of a planned community development plan, unless the short-term lodging unit was legally
established on or before June 1, 2004.
C. Operational Standards. The owner, or any other person(s) or entity(ies) that hold(s) legal
and/or equitable title to the lodging unit, shall comply with all federal, state, and local laws, rules,
regulations and conditions of approval including, but not limited to, all short term lodging permit
conditions set forth in Chapter 5.95. In addition, the owner, or any other person(s) or entity(ies)
that hold(s) legal and/or equitable title to the lodging unit, shall:
1. By written sFeral agreement, limit overnight occupancy of the short-term lodging unit
to a speGifiG RuRciber Of GGGWpaRtG, with the Rumber Of GGGWpaRtG REA tG eXG the
maximum permitted Building Code and Fire Code GGGWpaRGY limitS.
2. 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 eCode or any state or federal law
pertaining to noise, disorderly conduct, the consumption of alcohol, or the use of illegal
drugs.
3. Upon notification that any transient user, occupants and/or guests of his or her short
term lodging unit have has created unreasonable noise or disturbances, engaged in
disorderly conduct, or committed violations vielate nrn„ici„nc of this sCode or any Estate 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 those any
transient user, occupants or guests.
4. Use best efforts to ensure compliance with applicable health and sanitation
regulations relating to waste disposal.
5. Post a copy of any applicable permits and conditions in a conspicuous place within
the unit.
6. Not rent, let, advertise for rent, or enter into an agreement for the rental of any lodging
unit. for less than a two (2) consecutive niahts.
67. 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
section.
D. Additional Permit Conditions for Newport Island (Map A-16). To the extent there is any
conflict between this subsection and other provisions of the Code related to short-term rentals on
Newport Island (Map A-16), this subsection shall govern and control.
1. In addition to the restriction set forth in Section 5.95.042 and subsection (B)(3), the
maximum number of short-term lodging permits issued for units located on Newport Island, shall
be limited to twenty (20) short-term lodging permits at any one time. If there are more than twenty
(20) valid short-term lodging permits that have been issued as of the January 13, 2022, an owner
shall be permitted to renew, reinstate, or transfer a valid permit in accordance with the provisions
of Chapter 5.95; however, no new permit shall be issued unless: (a) permits are available for
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issuance pursuant to Section 5.95.042 and subsection (B)(3); and (b) the total number of permits
for units located on Newport Island does not exceed twenty (20). If the City has issued the
maximum number of permits available for units on Newport Island, the City shall maintain a
waiting list and follow the same procedures as set forth in Section 5.95.042 (D). For purposes of
this subsection, the maximum number permits available will be calculated in the same manner as
set forth in Chapter 5.95.
An owner, agent, or other person shall only be allowed to rent a dwelling unit on
Newport Island for a short-term if the dwelling unit is located on a lot with an owner -occupied
dwelling unit that is managed by the owner of the owner -occupied dwelling unit.
The owner and/or agent shall limit the overnight occupancy of the short-term
lodging unit on Newport Island to the lesser of: (a) the number of occupants that can be
accommodated consistent with the on-site parking requirement set forth in subsection (D)(4)
below, or (b) two persons per bedroom plus two additional persons, up to a maximum of ten
persons. Additional daytime quests are allowed between the hours of 7:00 a.m. and 10:00 p.m.
with the maximum daytime occupancy limited to a number equal to maximum overnight
occupancy plus six additional persons. The occupancy restrictions set forth in this subsection
shall be set forth in a written rental agreement.
4. Each short-term lodging unit on Newport Island shall provide a minimum of one
parking space in an existing garage or carport. Occupancy shall be limited to a maximum of five
overnight quests for a short-term lodging unit providing only one parking space. The parking
required by this subsection shall be free of obstructions and available for use by the short-term
lodging user.
Any existing permit holder of a dwelling unit that is not located on an owner -
occupied lot per subsection (D)(2) or does not meet the parking requirements of subsection (D)(4)
will be permitted to retain their permit until January 13, 2023.
No owner, agent, or other person shall rent or let a short-term lodging unit on
Newport Island more than once in any seven (7) consecutive day period.
21.70.020 (Definitions of Soecialized Terms and Phrases
"Dwelling unit, owner -occupied" means a dwellinq unit that is occupied by a natural person who
has at least a twenty-five percent ownership interest in the lot where one or more dwelling units
are located or a twenty five percent ownership interest in the entity that owns the lot where one
or more of the dwelling units are located and who resides in a dwelling unit on the same lot, which
is the person's leaal domicile and permanent residence.
21.80.010 (Area Maps)
A-16 — Newport Island (PDF)
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