HomeMy WebLinkAbout13 - An Amendment Deleting Section 5 of Ordinance No. 2022-8 Removing Sunset Date of April 21, 2025Q �EwPpRT
CITY OF
s NEWPORT BEACH
`q44:09 City Council Staff Report
March 11, 2025
Agenda Item No. 13
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Seimone Jurjis, Community Development Director - 949-644-3232,
sjurjis@newportbeachca.gov
PREPARED BY: Tonee Thai, Deputy Community Development Director/Chief
Building Official - 949-718-1867, tthai@newportbeachca.gov
TITLE: Ordinance No. 2025-5: An Amendment Deleting Section 5 of
Ordinance No. 2022-8 Removing Sunset Date of April 21, 2025
ABSTRACT:
On April 23, 2019, the City Council adopted Ordinance No. 2019-8, setting a three-year
time limit to complete construction of one -unit and two -unit family dwellings. The COVID-
19 pandemic disrupted supply chains for certain building materials and fixtures causing
delays in completing construction. As a temporary solution to supply chain delays, the
City Council adopted Ordinance No. 2022-8 on March 22, 2022, authorizing the building
official to grant an extension of the time limit to complete construction for up to one
additional year. The temporary solution would sunset on April 21, 2025.
For the City Council's consideration is an amendment to Ordinance No. 2022-8 to remove
the sunset provision and permanently grant the building official authority to extend
building permits for up to one additional year (Attachment A).
RECOMMENDATIONS:
a) Find this action 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 it has no potential
for resulting in physical change to the environment, directly or indirectly; and
b) Waive full reading, direct the City Clerk to read by title only, introduce Ordinance
No. 2025-5, An Ordinance of the City of Council of the City of Newport Beach,
California, Removing the Sunset Provision from Ordinance No. 2022-8 Thereby
Retaining Section 15.02.095 (Section 105.3.4) to Timeframes for Completion of
Construction, and pass to second reading on March 25, 2025.
DISCUSSION:
Ordinance No. 2019-8, adopted on April 23, 2019, established a three-year
construction time limit for one- and two-family dwellings. Under this ordinance,
extensions require an administrative hearing officer's approval following a public
hearing, with a maximum extension of one year. Further extensions beyond the
fourth year necessitate City Council approval.
13-1
Ordinance No. 2025-5: An Amendment Deleting Section 5
of Ordinance No. 2022-8 Removing Sunset Date of April 21, 2025
March 11, 2025
Page 2
The COVID-19 pandemic caused significant disruptions to the construction
industry, including supply chain delays, material shortages, and labor constraints.
As a result, many projects that would have been completed within the original
three-year timeframe faced unavoidable delays.
To address these challenges, the City Council adopted Ordinance No. 2022-8 on
March 22, 2022, granting the building official temporary authority to extend
construction time limits by one year. This ordinance is set to expire on April 21,
2025. Extensions under this ordinance are granted based on adequate project
progress and necessity for completion. Any additional extensions beyond the
one-year period still require a public hearing before an administrative hearing
officer. The administrative hearing officer may grant up to two 180-day extensions.
Applicants seeking further extensions must submit a request through the City Clerk
to the City Council for consideration through a public hearing. This request must be
filed at least 45 days before the expiration of the last granted extension. To date,
no applicants have requested extensions from the City Council.
Projects that have exhausted all administrative remedies are referred to the City
Attorney's Office (CAO). The CAO may either prosecute the applicant for violating
the City's ordinance or work with the property owner to establish a completion
schedule through a settlement agreement.
The ordinance provides a consistent framework for granting extensions, ensuring
they are approved only when circumstances warrant additional time or when delays
are beyond the control of the property owner, applicant or contractor.
Since the adoption of Ordinance No. 2022-8, the building official has granted
extensions for 150 projects, with 106 successfully completed. During the same
period, 24 projects required public hearings for extensions, resulting in
12 completed projects and one still under construction. Additionally, seven
settlement agreements have been reached, and four projects are currently under
review by CAO.
The high completion rate (71 %) for projects granted extensions by the Building
Official demonstrates the effectiveness of this streamlined approach. It reduces
administrative burdens, minimizes delays, and supports project completion.
Impacts if Ordinance No. 2022-8 Sunsets
If Ordinance No. 2022-8 expires, the authority to extend construction permits will revert
to a public hearing process overseen by an administrative hearing officer. Property
owners seeking extensions must submit applications to the City Clerk, subject to a
maximum extension of 180 days per request. The property owner may request up to
two extensions.
13-2
Ordinance No. 2025-5: An Amendment Deleting Section 5
of Ordinance No. 2022-8 Removing Sunset Date of April 21, 2025
March 11, 2025
Page 3
Additionally, the cost of obtaining an extension will increase. Currently, the fee for an
extension granted by the building official is $221. If the ordinance sunsets, the fee for
an extension request requiring a public hearing will rise to $1,496 due to administrative
costs, including hearing officer fees and public notice requirements.
The transition to a public hearing format may also introduce delays. If a hearing cannot
be scheduled before a permit expires, construction activities must cease until a decision
is rendered, leading to project downtime and increased costs for property owners.
Draft Ordinance
The proposed ordinance removes the sunset date from Ordinance No. 2022-8,
permanently granting the building official the authority to grant additional extensions, for
a total of 365 days, for projects entering their fourth year. This amendment eliminates
the requirement for a public hearing for this specific extension, streamlining the process
and reducing costs for permit holders. Extensions beyond the fourth year will still require
a public hearing.
FISCAL IMPACT:
There is no fiscal impact related to this item.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity
will notresult 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. The adoption of the amendment does not authorize new
development or change the densityor intensity of any potential future development.
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. 2025-5
Attachment B — Redlined Ordinance
13-3
Attachment A
Ordinance No. 2025-5
13-4
ORDINANCE NO. 2025- 5
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, REMOVING THE
SUNSET PROVISION FROM ORDINANCE NO. 2022-8
THEREBY RETAINING SECTION 15.02.095 (SECTION
105.3.4) OF THE NEWPORT BEACH MUNICIPAL CODE
RELATED TO TIMEFRAMES FOR COMPLETION OF
CONSTRUCTION
WHEREAS, Section 200 of the City Newport Beach's ("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 number of construction projects on private property in the City
has increased substantially over the past eleven years, which has resulted in increased
impacts to residents from construction related noise, loss of on -street parking, and
traffic;
WHEREAS, Chapter 15.02 (Administrative Code) of the Newport Beach
Municipal Code ("NBMC"), adopts and incorporates by reference Chapter 1, Division II
of the California Building Code;
WHEREAS, the City Council adopted Ordinance No. 2019-8 on April 23, 2019,
adding Section 105.3.4 to the California Building Code -as set forth in Section 15.02.095
of the NBMC, which sets a three-year time limit from the issuance of the first or original
building permit for one -unit or two -unit dwellings to complete construction;
WHEREAS, the City Council adopted Ordinance No. 2022-8 on March 22, 2022,
amending Section 15.02.095 (Section 105.3.4) of the NBMC to extend the timeframe to
complete construction by an additional year due to the impacts of COVID-19;
WHEREAS, Ordinance No. 2022-8 sunsets on April 21, 2025, pursuant to
Section 5 of the ordinance; -
WHEREAS, it is in the interest of the residents of the City to place a reasonable
time limit on the duration of construction projects and to streamline the extension
request process, so as to balance the needs of the owner of the project with the health,
safety and welfare of the neighbors; and
13-5
Ordinance No. 2025-
Page 2 of 3
WHEREAS, the City Council desires to remove the April 21, 2025, sunset
provision from Ordinance No. 2022-8,-thereby retaining the time limits for completion of
construction set forth in Section 15.02.095 (Section 105.3.4) of the NBMC.
NOW THEREFORE, the City Council of the City of Newport Beach ordains as
follows:
Section 1: The sunset provision of April 21, 2025, set forth in Section 5 of
Ordinance No. 2022-8 is hereby repealed, such that Section 105.3.4 as set forth in
Section 15.02.095 to the NBMC shall remain in place unless modified by ordinance of
the City Council. In all other respects, Ordinance No. 2022-8 shall remain unchanged.
Section 2: The recitals provided in this ordinance are true and correct and are
incorporated into the substantive portion of this ordinance.
Section 3: 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 4: 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 5: 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.
13-6
Ordinance No. 2025-
Page 3 of 3
Section 6: 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 11 th day of March, 2025, and adopted on the 25th day of
March, 2025, by the following vote, to -wit -
AYES:
NAYS:
ABSENT:
Joe Stapleton, Mayor
ATTEST:
Leilani I. Brown, City Clerk
APPROVED AS TO FORM:
CITY TORNEY'S OFFICE
C y _-
Aafon C. Harp, City Attorney
13-7
Attachment B
Redlined Ordinance No. 2022-8
13-8
ORDINANCE NO. 2022-8
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
NEWPORT BEACH, CALIFORNIA, AMENDING SECTION
15.02.095 OF THE NEWPORT BEACH MUNICIPAL CODE
AUTHORIZING AN EXTENSION OF THE TIME LIMIT TO
COMPLETE CONSTRUCTION FOR AN ADDITIONAL
YEAR
WHEREAS, Section 200 of the City of Newport Beach's ("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 number of construction projects on private property in the City has
increased substantially over the past eight years, which has resulted in increased impacts to
residents from construction related noise, loss of on -street parking, and traffic;
WHEREAS, on April 23, 2019, the City Council adopted Ordinance No. 2019-8 setting
a three-year time limit from the issuance of the first or original building permit for one -unit or
two -unit dwellings to complete construction;
WHEREAS, on January 31, 2020, the United States Secretary of Health and Human
Services announced a nationwide public health emergency, in response to the COVID-19
outbreak;
WHEREAS, on March 4, 2020, Governor Gavin Newsom declared a State of
Emergency to make additional resources available, formalize emergency actions already
underway across multiple state agencies and departments, and help the state prepare for
broader spread of COVID-19;
WHEREAS, due to the impacts caused by COVID-19 disrupting the supply lines for
products and materials, and the health impacts to skilled workforce, some construction
projects may take longer than three years to complete; and
WHEREAS, it is in the interest of the residents of the City to place a reasonable time
limit on the duration of construction projects, so as to balance the needs of the owner of the
project with the health, safety and welfare of the neighbors.
13-9
Ordinance No.2022-8
Page 2 of 7
NOW, THEREFORE, the City Council of the City of Newport Beach ordains as follows:
Section 1: Section 105.3.4 of Section 15.02.095 of the Newport Beach Municipal
Code is hereby amended to read as follows:
Section 105.3.4 Extension of time limit to complete construction.
The maximum allowable time to complete construction, as set forth in Section 105.3.3, may
be extended as follows:
1. Application for Extension to Building Official.
a) A property. owner, or authorized agent of the property owner, may request an extension
by filing with the Building Official, in writing and on a form provided by the Building Official,
an application for extension which sets forth: (i) the address of the project site; (ii) the name
of the applicant and property owner; (iii) when the first or original building permit was issued;
(iv) the length of time extension requested, which shall not be greater than three hundred
and sixty-five (365) calendar days; (v) how many previous extensions have been granted;
(vi) the basis for the requested extension; (vii) the new end project date if the application is
approved; (viii) a brief description of the improvements that are the subject of the application;
and (ix) any other information requested by the City.
b) Unless authorized bythe Building Official in writing, an application for extension shall be
submitted no later than forty-five (45) calendar days prior to the expiration of the building
permit. The application for extension to the Building Official shall be accompanied the fee
set forth in the City's master fee schedule.
c) Within forty-five (45) days of a request for extension, the Building Official may ministerially
grant, conditionally grant or deny a request for extension for a period not to exceed three
hundred sixty-five (365) calendar days. The Building Official shall only grant an extension if
he/she determines adequate progress has been made towards completion of construction
and the request for extension is necessary for its completion. The decision of the Building
Official shall be final and non -appealable.
13-10
Ordinance No.2022-8
Page 3 of 7
2. Application for Additional Extension(s).
a) If construction of the project has not been completed within the timeframe authorized by
the Building Official, a property owner, or authorized agent of the property owner, may
request an additional extension by filing with the City Clerk, in writing and on a form provided
by the City Clerk, an application for extension which sets forth: (i) the address of the project
site; (ii) the name of the applicant and property owner; (iii) when the first or original building
permit was issued; (iv) the length of time extension requested, which shall not be greater
than one hundred and eighty (180) calendar days; (v) how many previous extensions have
been granted; (vi) the basis for the requested extension; (vii) the new end project date if the
application is approved; (viii) a brief description of the improvements that are the subject of
the application; and (ix) any other information requested by the City.
b) Unless authorized bythe Building Official in writing, an application for extension shall be
submitted no later than forty-five (45) calendar days prior to the expiration of the building
permit.
c) An application for extension filed with the City Clerk shall be accompanied by a hearing
and noticing fee identified in the City's master fee schedule.
3. Scheduling and Noticing.
a) For an application for an additional extension set forth in subsection 2), a Hearing Officer,
designated by the City Manager, shall hear and decide whether a second application for
extension, or third application for extension, shall be granted, conditionally granted, or
denied. The City Council shall hear and decide whether any additional application for
extension shall be granted, conditionally granted or denied. The applicable hearing body
shall be referred to herein as the "review authority."
b) For any application for extension to be heard by a Hearing Officer, the City Manager shall
appoint a Hearing Officer with the requisite qualifications and experience to consider the
application for extension. The Hearing Officer shall not be a City employee and the
employment, performance evaluation, compensation and benefits of the Hearing Officer, if
any, shall not be conditioned, either directly or indirectly, upon the outcome of any decision
by the Hearing Officer.
13-11
Ordinance No.2022-8
Page 4 of7
Within seven (7) calendar days of the City Clerk's receipt of an application for extension, the
City Manager or his/her designee shall notify the applicant of the name of the Hearing Officer
in accordance with Section 1.08.080. If the applicant wishes to challenge the designated
Hearing Officer, the applicant shall have seven (7) calendar days from the date of service of
the notice to submit to the City Manager a request, in writing, to disqualify the Hearing Officer,
which sets forth the basis for disqualification. A Hearing Officer may only be disqualified for:
(i) bias; (ii) prejudice; (iii) a conflict of interest; or (iv) a reason for which a judge may be
disqualified after a showing of good cause under the laws of the State of California.
The City Manager will review any request for disqualification and make a decision as to
whether a Hearing Officer shall be disqualified. The City Manager's decision shall be final. If
the City Manager disqualifies a Hearing Officer, the City Manager shall designate a new
Hearing Officer in accordance with the procedures in this subsection.
c) The applicant shall be notified of the time and place set for the hearing of the application,
in accordance with Section 1.08.080, at least ten (10) calendar days prior to the date of the
hearing. All hearings on an application to be heard by the review authority shall be noticed
in the following manner:
(i) Mailed to property owners within three hundred (300) feet of the project site that is the
subject of the application, at least ten (10) calendar days in advance of the hearing. The
notice shall contain: the address of the project site; the length of time extension requested;
the new end project date if the application is approved; the name of the applicant and
property owner; a brief description of the improvements; the date, time, and place of the
hearing; and a statement informing the person they have the ability to attend the hearing and
provide comments; and
(ii) Posted by the applicant at the project site, that is the subject of the application, at least
ten (10) calendar days before the scheduled hearing. The size, location and number of
sign(s) shall be posted as determined by the City Manager or his/her designee. The applicant
shall be responsible for maintaining the sign(s) in a satisfactory condition and shall remove
all sign(s) within twenty-four (24) hours following the conclusion of the hearing.
The failure of any person or entity to receive notice given in compliance with this
subsection shall not invalidate the actions of the applicable review authority.
4. Conduct of Hearing.
a) hearing shall be held at the date, time, and place for which notice was given.
13-12
Ordinance No.2022-8
Page 5 of 7
b) The review authority shall only consider evidence and testimony, presented by the
applicant or any other interested person, relevant to whether: (i) special circumstances
warrant an extension of time; (ii) the failure to meet the time limit was caused by
circumstances beyond the property owner's, applicant's or their contractor's control; and (iii)
any approval should contain conditions to ensure timely completion of the project in a manner
that limits impacts on surrounding property owners. Any documents submitted by City staff
shall constitute prima facie evidence of the respective facts contained in those documents.
c) The review authority may grant, or conditionally grant, up to a one hundred and eighty
(180) calendar day extension, per application for extension, if it finds special circumstances
warrant an extension oftime orthefailureto meetthetime limitwas caused by circumstances
beyond the property owner's, applicant's or their contractor's control. If the review authority
makes the findings to grant an extension, the review authority shall consider whether
conditions are necessary to ensure timely completion of the project in a manner that limits
impacts on surrounding property owners. The review authority shall deny the application if it
cannot make the findings set forth in this subsection.
d) A hearing may be continued without further notice, provided the Hearing Officer or chair
of the review authority announces the date, time, and place to which the hearing will be
continued before the adjournment or recess of the hearing.
e) The review authority may announce a tentative decision and defer its action on a final
decision until appropriate findings and/or conditions of approval have been prepared.
f) The review authority shall issue a written decision, setting forth its findings, and the
decision shall be final and effective on the date the decision is made, unless otherwise
specified by the review authority. The review authority shall provide the City Clerk with its
final decision within three (3) calendar days of the date of decision and the City Clerk shall
mail a copy of the final decision to the applicant within ten (10) calendar days of receipt of
the final decision.
5. Judicial Proceeding.
Nothing herein shall prohibit the Building Official from issuing a building permit or extending
a building permit if the extension is a term of an enforceable settlement agreement between
the City and the property owner or a term of a court order/judgment.
13-13
Ordinance No.2022-8
Page 6 of 7
6. Judicial Review.
The decision of the review authority shall not be appealable to any City body. A person shall
not seek judicial review related to any application for extension until the person has first
exhausted all administrative procedures set forth in Section 15.02.095.
Section 2: The recitals provided in this ordinance are true and correct and are
incorporated into the substantive portion of this ordinance.
Section 3: If any section, subsection, sentence, clause or phrase of this ordinance
is for any reason held to be invalid or unconstitutional, such decision shall notaffect 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 4: The City Council finds and determines that 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.
1
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110 1114A\
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Section 6: 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.
13-14
Ordinance No. 2022-8
Page 7 of7
This ordinance was introduced at a regular meeting of the City Council of the City of
Newport Beach held on the 8th day of March, 2022, and adopted on the 22nd day of March,
2022, by the following vote, to -wit:
AYES: Council Member Avery, Council Member Brenner, Council Member Dixon,
Council Member Duffield, Council Member O'Neill
NAYS: Mayor Muldoon, Mayor Pro Tern Blom
ABSENT:
ATTEST:
f-W
r
LEILANI 1. BROWN, CITY CLERK jr
-
APPROVED AS TO FORM: Z'F:
CITY ATTORNEY'S OFFICE
AARON C. HARP, CITY ATTORNEY
13-15
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. 2022-8 was duly introduced on the 81h day of March, 2022, at a regular meeting, and adopted by the
City Council at a regular meeting duly held on the 22n° day of March, 2022, and that the same was so
passed and adopted by the following vote, to wit:
AYES. Council Member Brad Avery, Council Member Joy Brenner, Council Member Diane
Dixon, Council Member Duffy Duffield, Council Member VVill O'Neill
NAYS: Mayor Kevin Muldoon, Mayor Pro Tern Noah Blom
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of
said City this 23' d day of March, 2022.
010�, j
Leilani 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 1. BROWN, City Clerk of the City of Newport Beach, California, do hereby certify that
Ordinance No. 2022-7 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.
Introduced Ordinance: March 12, 2022
Adopted Ordinance: March 26, 2022
In witness whereof, I have hereunto subscribed myname this day of April, 2022.
Leila ill.. ffim t,MAAQ-
City Clerk
City of Newport Beach, California
13-16