HomeMy WebLinkAbout05 - A Code Amendment Related to Short -Term Lodging Citywide and on Newport Island (PA2020-048 and PA2020-326)Q SEW Pp�T
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z NEWPORT BEACH
c�<,FORN'P City Council Staff Report
December 14, 2021
Agenda Item No. 5
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Seimone Jurjis, Community Development Director - 949-644-3232,
sjurjis@newportbeachca.gov
PREPARED BY: Jaime Murillo, AICP, Principal Planner,
jmurillo@newportbeachca.gov
PHONE: 949-644-3209
TITLE: Ordinance No. 2021-28:
Lodging Citywide and on
326)
ABSTRACT:
A Code Amendment Related to Short -Term
Newport Island (PA2020-048 and PA2020-
For the City Council's consideration is the adoption of Ordinance No. 2021-28, 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) 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
b) Conduct second reading and adopt 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).
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Ordinance No. 2021-28: A Code Amendment Related to Short-term Lodging Citywide
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December 14, 2021
Page 2
DISCUSSION:
On October 13, 2020, the City Council adopted Resolution 2020-91 authorizing the
submittal of Local Coastal Program (LCP) Amendment No. LC2020-007 to the California
Coastal Commission (CCC) relating to short-term lodging to incorporate the maximum
cap of 1,550 permits and establishing minimum night stay requirements applicable to
properties citywide into Title 21 (Local Coastal Plan Implementation Plan).
On April 13, 2021, the City Council also adopted Resolution No. 2021-30, authorizing
submittal of LCP Amendment No. LC2020-008 to the CCC to incorporate additional short-
term lodging regulations affecting Newport Island into Title 21.
On October 13, 2021, the CCC reviewed and approved both LCP Amendments related
to short-term lodging citywide and on Newport Island with suggested modifications.
The attached ordinance was introduced and considered at the November 30, 2021, City
Council meeting. This item is the final adoption of the ordinance amending Chapter 5.95
and Title 21 of the Newport Beach Municipal Code to approve LC2020-007 and LC2020-
008, as modified by the Coastal Commission. Once adopted, Community Development staff
will send the ordinance to the Coastal Commission Executive Director for a determination
that it is legally adequate to satisfy the specific requirements of Coastal Commission's action
on the LCP amendment.
If Ordinance No. 2021-28 is adopted, it will go into effect on January 13, 2022.
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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Ordinance No. 2021-28: A Code Amendment Related to Short-term Lodging Citywide
and on Newport Island (PA2020-048 and PA2020-326)
December 14, 2021
Page 3
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENT:
Attachment A — Ordinance No. 2021-28
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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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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 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
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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:
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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
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Ordinance No. 2021-28
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:
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Ordinance No. 2021-28
Page 14 of 16
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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).
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Ordinance No. 2021-28
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. 2021-28
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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
ATTEST:
LEILANI I. BROWN, CITY CLERK
APPROVED AS TO FORM:
CI ATTORNEY'S OFFICE
a-, C ff
AA ON C. HARP, CITY ATTORNEY
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