HomeMy WebLinkAbout03 - Amending Chapters 5.95 (Short-Term Lodging Permit) and 15.02 (Administrative Code Related to Construction & Demolition Waste Permits) of the NBMCQ �EwPpRT
CITY OF
s NEWPORT BEACH
`q44:09 City Council Staff Report
October 8, 2024
Agenda Item No. 3
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Jason AI -Imam, Finance Director/Treasurer - 949-644-3126,
jalimam@newportbeachca.gov
PREPARED BY: Jason AI -Imam, Finance Director/Treasurer
TITLE: Ordinance No. 2024-23: Amending Chapters 5.95 (Short -Term
Lodging Permit) and 15.02 (Administrative Code Related to
Construction & Demolition Waste Permits) of the Newport Beach
Municipal Code
ABSTRACT:
For the City Council's consideration is the adoption of an ordinance to amend various
provisions of the Newport Beach Municipal Code related to short-term lodging permits
and demolition permits. The proposed amendments would allow for the extension of
deadlines related to the transfer, suspension and revocation of short-term lodging permits
when there is good cause to do so.
The ordinance also proposes that administrative fees be paid separately, rather be
deducted from a demolition permit deposit. Other related modifications are proposed to
allow for the extension of deadlines related to various conditions associated with
demolition permits such as the deadline to claim a refund of the demolition permit deposit.
RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably
foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity
is not a project as defined in Section 15378) of the CEQA Guidelines, California Code
of Regulations, Title 14, Chapter 3, because this action will not result in a physical
change to the environment, directly or indirectly; and
b) Waive full reading, direct the City Clerk to read by title only, and introduce Ordinance
No. 2024-23, An Ordinance of the City Council of the City of Newport Beach,
California, Amending Section 5.95.043 (Transfer of Permit), and Section 5.95.065
(Suspensions and Revocations) of Chapter 5.95 (Short Term Lodging Permit) and
Section 15.02.085 (Addition of Section 105.3.1.1) of Chapter 15.02 (Administrative
Code) of the Newport Beach Municipal Code, to Update Administrative Procedures
Related to the Extension of Deadlines and the Handling of Deposits and Fees, and
pass to second reading on October 22, 2024.
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Amending Chapters 5.95 (Short -Term Lodging Permit) and 15.02 (Administrative Code
Related to Construction and Demolition Waste Permits) of the NBMC
October 8, 2024
Page 2
DISCUSSION:
Short -Term Lodaina Permits
Chapter 5.95 (Short Term Lodging Permit) of the Newport Beach Municipal Code (Code)
imposes certain conditions on short-term lodging permits, which are designed to maintain
the quality and character of the city's residential neighborhoods and to limit the impacts
of short-term lodgings on residential neighborhoods. The finance director has determined
that, in certain circumstances, there is good cause to extend deadlines for the transfer of
permits and the filing of a request for a hearing related to suspensions and revocations.
For example, if a property owner is incapacitated due to illness or injury during the
statutory timeframe to appeal a revocation, the finance director may find good cause to
extend the deadline for the property owner to request a hearing related to the revocation.
Therefore, changes to the Code are recommended, which would authorize the finance
director to allow for the extension of deadlines related to the transfer, suspension and
revocation of short-term lodging permits when there is good cause to do so.
Demolition Permits
Section 15.02.085 (Addition of Section 105.3.1.1) of the Code requires the use of
franchised waste haulers to dispose of waste resulting from the complete demolition of a
structure as well as the payment of a deposit to ensure franchised haulers are used. This
helps facilitate the City's compliance with statutory waste diversion requirements. The
Code currently provides that administrative fees are to be deducted from the demolition
permit deposit. However, it would be more timely and efficient to have the administrative
fees paid separately rather than deducted from the deposit. Other related modifications
to the Code are proposed to allow for the extension of deadlines related to various
conditions associated with demolition permits such as the deadline to claim a refund of
the demolition permit deposit.
FISCAL IMPACT:
The City may incur costs related to the administration of hearings if the City allows for the
extension of deadlines related to the transfer, suspension and revocation of short-term
lodging permits. The fiscal impact is expected to be nominal and can be absorbed within
the existing budget. The projected cost associated with separating the administrative fee
from the demolition permit deposit and the related extension of deadlines will have no
fiscal impact on the City.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
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Amending Chapters 5.95 (Short -Term Lodging Permit) and 15.02 (Administrative Code
Related to Construction and Demolition Waste Permits) of the NBMC
October 8, 2024
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).
ATTACHMENTS:
Attachment A — Ordinance No. 2024-23
Attachment B — Redlined Changes to Chapter 5.95 of the Code
Attachment C — Redlined Changes to Chapter 15.02 of the Code
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Attachment A
Ordinance No. 2024-23
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ORDINANCE NO. 2024-23
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, AMENDING
SECTION 5.95.043 (TRANSFER OF PERMIT), AND
SECTION 5.95.065 (SUSPENSIONS AND REVOCATIONS)
OF CHAPTER 5.95 (SHORT TERM LODGING PERMIT)
AND SECTION 15.02.085 (ADDITION OF SECTION
105.3.1.1) OF CHAPTER 15.02 (ADMINISTRATIVE CODE)
OF THE NEWPORT BEACH MUNICIPAL CODE, TO
UPDATE ADMINISTRATIVE PROCEDURES RELATED TO
THE EXTENSION OF DEADLINES AND THE HANDLING
OF DEPOSITS AND FEES
WHEREAS, Section 200 of the City 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 City 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 committed to ensuring the safety, health, and welfare of
all its residents, visitors, and businesses;
WHEREAS, Chapter 5.95 (Short Term Lodging Permit) of the Newport Beach
Municipal Code ("NBMC"), regulates the rental of dwelling units, for less than thirty (30)
consecutive calendar days, to help preserve the City's housing stock, maintain the
quality and character of the City's residential neighborhoods, and limit the impacts of
short term lodgings on residential neighborhoods;
WHEREAS, both NBMC Section 5.95.043 (Transfer of Permit), which imposes
limits on the transfer of short term lodging permits, and Section 5.95.065 (Suspensions
and Revocations), which sets forth the applicable procedures for the suspension and
revocation of short term lodging permits, contain fixed deadlines that cannot be
extended;
WHEREAS, as part of the administration of the short term lodging permit
program, the Finance Director has determined that, in certain circumstances, there is
good cause to extend deadlines for the transfer of permits and the filing of a request for
hearing;
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Ordinance No. 2024-
Page 2 of 6
WHEREAS, to ensure that the short term lodging permit provisions of the NBMC
are administered in the most efficient manner, the Finance Director has requested that
the City Council amend Section 5.95.043 (Transfer of Permit) and Section 5.95.065
(Suspensions and Revocations) to authorize the Finance Director to extend deadlines if
the Finance Director determines that good cause exists to grant an extension;
WHEREAS, Chapter 15.02 (Administrative Code) of the NBMC, adopts and
incorporates by reference Chapter 1, Division II of the California Building Code (2022
Edition);
WHEREAS, Section 15.02.085 (Addition of Section 105.3.1.1) of the NBMC
requires the use of franchised waste haulers to dispose of waste resulting from the
complete demolition of a structure as well as the payment of a deposit to ensure
franchised haulers are used, which helps facilitate the City's compliance with statutory
waste diversion requirements;
WHEREAS, Section 15.02.085 (Addition of Section 105.3.1.1) of the NBMC
provides that administrative fees are to be deducted from the demolition permit deposit;
WHEREAS, the Finance Director has determined that it would be more efficient
to have the administrative fees paid separately, rather than have the administrative fees
deducted from the demolition permit deposit;
WHEREAS, other related modifications to Section 15.02.085 (Addition of
Section 105.3.1.1) of the NBMC are necessary to allow for the extension of deadlines,
when there is good cause to do so, and to reflect changes in procedures related to
demolition permits; and
WHEREAS, the City Council desires to amend the NBMC to increase efficiency
by allowing the extension of deadlines, when there is good cause to do so, separate the
administrative fee from the demolition permit deposit, and update administrative
procedures related to demolition permits.
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Ordinance No. 2024-
Page 3 of 6
NOW THEREFORE, the City Council of the City of Newport Beach ordains as
follows:
Section 1: Subsection (B) of Section 5.95.043 (Transfer of Permit) of the
NBMC is hereby amended and shall read as follows:
"B. The deadlines set forth in subsection (A) of this section are established for
purposes of setting deadlines for the transfer of a valid permit that has not been
deemed abandoned in accordance with Sections 5.95.030 (B) through (F). The
deadlines set forth in subsection (A) of this section shall not extend the deadlines set
forth in or in accordance with Sections 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 subsection (A), as may be extended for good cause, as set forth in
subsection (C)."
Section 2: Subsection (C) is hereby added to Section 5.95.043 (Transfer of
Permit) of the NBMC and shall read as follows:
"C. If good causes exist, as determined in the sole discretion of the Finance Director,
the Finance Director may extend the deadlines set forth in subsection (A) of this
section."
Section 3: Subsection (13)(1) of Section 5.95.065 (Suspensions and
Revocations) of the NBMC is hereby amended and shall read as follows:
"B. Permits shall be suspended or revoked, only in the manner provided in this
section.
1. The Finance Director shall investigate whenever he or she has reason to
believe that an owner has submitted an application that contains false information or
committed a violation of a permit condition, this Code, state or federal law related to a
permitted unit. Such investigation may include, but is not limited to, on -site property
inspections. Should the investigation reveal substantial evidence to support a finding
that warrants a suspension or revocation of the short term lodging permit, the Finance
Director shall issue written notice of intention to suspend or revoke the short term
lodging permit. The written notice shall be served on the owner in accordance with
Section 1.08.080, and shall specify the facts which, in the opinion of the Finance
Director constitute substantial evidence to establish grounds for imposition of the
suspension and/or revocation, and specify the proposed time the short term lodging
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Ordinance No. 2024-
Page 4 of 6
permit shall be suspended and/or that the short term lodging permit shall be revoked
within thirty (30) calendar days from the date the notice is given, unless the owner files
with the Finance Director, before the suspension or revocation becomes effective, a
request for hearing before a hearing officer, who shall be retained by the City, and pays
the fee for the hearing established by resolution of the City Council. Subject to
subsection (E), failure to file a timely request for hearing and pay all applicable fees
shall result in the suspension or revocation of the permit."
Section 4: Subsection (E) is hereby added to Section 5.95.065 (Suspensions
and Revocations) of the NBMC and shall read as follows:
"E. If good causes exist, as determined in the sole discretion of the Finance Director,
the Finance Director may extend the deadlines set forth in this section."
Section 5: Section 15.02.085 (Addition of Section 105.3.1.1.) of the NBMC is
hereby amended its entirety and shall read as follows:
"Section 105.3.1.1 Construction and demolition waste permits. Prior to issuance of a
building permit for construction having a valuation over $100,000 or a demolition permit
for complete demolition of a structure, the permittee shall certify that a City franchised
solid waste hauler shall be used for the handling, removal and disposal of all
construction and demolition waste. A permit deposit and fees, set by Resolution of the
City Council, shall be paid at the time of submitting the building or demolition permit
application and the Construction and Demolition Waste Certification and Deposit Form.
Said deposit shall be returned to the permittee at the conclusion of the construction or
demolition project, upon the submittal of documentation that a franchised solid waste
hauler was used to handle, remove and dispose of all construction and demolition
waste. Claims for refund of the permit deposit, that qualify, must be requested by April
30, 2025, or six (6) months from the date the permit receives a final status from the
Building Division, whichever is later. The permit deposit shall be forfeited in its entirety if
the identified franchised solid waste hauler is not used to handle, remove and dispose
of all construction and demolition waste.
If the Building Official finds that the work described in an application for a building or
demolition permit and the plans, specifications and other data filed therewith conform to
the requirements of this Code and the technical codes and other pertinent laws and
ordinances, and that the fees specified in Section 109 have been paid and that a
franchised solid waste hauler is being used, the Building Official shall issue a permit
therefor to the applicant. Prior to any construction or demolition activities authorized by
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Ordinance No. 2024-
Page 5 of 6
the permit, the permittee shall notify the Community Development Department's Code
Enforcement Division no less than twenty-four (24) hours or more than seventy-two (72)
hours in advance of its intent to commence construction or demolition and provide the
name of the franchised solid waste hauler that will haul and dispose of the construction
and demolition waste. Any hauling or disposal of demolition and construction waste by
other than the identified franchised solid waste hauler shall subject the project to
suspension of work as authorized in this Code and subject the deposit to forfeiture.
If good causes exist, as determined in the sole discretion of the Building Official, the
Building Official may extend the deadlines set forth in this section."
Section 6: The recitals provided in this ordinance are true and correct and are
incorporated into the substantive portion of this ordinance.
Section 7: The Finance Director and Building Official are hereby authorized to
retroactively extend deadlines, upon a finding of good cause, to extent they are
authorized to do so in Sections 1 through 5 of this ordinance.
Section 8: 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 9: 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 10: Except as expressly modified in this ordinance, all other sections,
subsections, terms, clauses and phrases set forth in the NBMC shall remain unchanged
and shall be in full force and effect.
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Ordinance No. 2024-
Page 6 of 6
Section 11: The Mayor shall sign and the City Clerk shall attest to the passage
of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be
published pursuant to City Charter Section 414. This ordinance shall be effective thirty
(30) calendar days after its adoption.
This ordinance was introduced at a regular meeting of the City Council of the City
of Newport Beach held on the 8th day of October, 2024, and adopted on the 22nd day
of October, 2024, by the following vote, to -wit:
AYES:
NAYS:
ABSENT:
WILL O'NEILL, MAYOR
ATTEST:
LEILANI I. BROWN, CITY CLERK
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
C. /
AA ON C. HARP, CITY ATTORNEY
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Attachment B
Redlined Changes to Chapter 5.95 of the Code
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Chapter 5.95 (Short Term Lodging Permit)
5.95.043 Transfer of Permit.
B. The deadlines set forth in subsection (A) of this section are established for purposes of setting
deadlines for the transfer of a valid permit that has not been deemed abandoned in accordance with
Sections 5.95.030(B) through (F). The deadlines set forth in subsection (A) of this section shall not
extend the deadlines set forth in or in accordance with Sections 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 seet:ionsubsection (A), as may be extended for good cause, as set forth in subsection (Cl.
C. If good causes exist, as determined in the sole discretion of the Finance Director, the Finance
Director may extend the deadlines set forth in subsection U of this section.
5.95.065 Suspensions and Revocations.
B. Permits shall be suspended or revoked, only in the manner provided in this section.
1. The Finance Director shall investigate whenever he or she has reason to believe that an owner
has submitted an application that contains false information or committed a violation of a permit
condition, this Code, state or federal law related to a permitted unit. Such investigation may
include, but is not limited to, on -site property inspections. Should the investigation reveal
substantial evidence to support a finding that warrants a suspension or revocation of the short
term lodging permit, the Finance Director shall issue written notice of intention to suspend or
revoke the short term lodging permit. The written notice shall be served on the owner in
accordance with Section 1.08.080, and shall specify the facts which, in the opinion of the
Finance Director constitute substantial evidence to establish grounds for imposition of the
suspension and/or revocation, and specifythe proposed time the short term lodging permit shall
be suspended and/or that the short term lodging permit shall be revoked within thirty (30)
calendar days from the date the notice is given, unless the owner files with the Finance Director,
before the suspension afrd/or revocation becomes effective, a request for hearing before a
hearing officer, who shall be retained by the City, and pays the fee for the hearing established by
resolution of the City Council. Subject to subsection (E), failure to file a timely request for hearing
and pay all applicable fees shall result in the suspension or revocation of the permit.
E. If good causes exist, as determined in the sole discretion of the Finance Director, the Finance
Director may extend the deadlines set forth in this section.
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Attachment C
Redlined Changes to Chapter 15.02 of the Code
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Chapter 15.02 (Administrative Code)
15.02.085 Addition of Section 105.3.1.1.
Construction and demolition waste permits. Prior to issuance of a building permit for construction
having a valuation over $100,000 or a demolition permit for complete demolition of a structure, the
permittee shall certify that a City franchised solid waste its hauler shall be used for the
handling, removal and disposal of all construction and demolition waste. A permit deposit and
fees, set by Resolution of the City Council, shall be paid at the time of submitting the building or
demolition permit application and the Construction and Demolition Waste Certification and
Deposit Form. Said deposit shall be returned to the permittee , mintis adn-iinistrative fees set by
Council,Resoluteon of the City at the conclusion of the construction or demolition project, upon
the submittal of documentation that a franchised solid waste erase hauler was used to handle,
remove and dispose of all construction and demolition wastes. Claims for refund of the permit
deposit, that qualify, must be requested by April 30, 2025, or six (6) months from the date the
permit receives a final status from the Building Division, whichever is later. The permit deposit shall
be forfeited in its entirety if a franchised solid waste ehauler is not used to handle, remove
and dispose of all construction and demolition wastes.
If the Building Official finds that the work described in an application for a building or demolition
permit and the plans, specifications and other data filed therewith conform to the requirements of
this Code and the technical codes and other pertinent laws and ordinances, and that the fees
specified in Section 109 have been paid and that a franchised solid waste terse hauler is being
used, the Building Official shall issue a permit therefor to the applicant. Prior to any construction or
demolition activities authorized by the permit, the permittee shall notify the Community
Development Department's Code Enforcement Division no less than
twenty-four (24) hours or more than seventy-two (72) hours in advance of its intent to commence
construction or demolition and provide the name of the franchised solid waste wise hauler
that will haul and dispose of the construction and demolition wastes. Any hauling or disposal of
demolition and construction wastes by other than the identified franchised solid waste wise
hauler shall subject the project to suspension of work as authorized in this Code and subject the
deposit to forfeiture.
If good causes exist, as determined in the sole discretion of the Building Official, the Building
Official may extend the deadlines set forth in this section."
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