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HomeMy WebLinkAbout92-13 - Establishing Regulations for the Operation of Short Term Lodging Units Within Residential ZonesORDINANCE NO. 92- 13 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ESTABLISHING REGULATIONS FOR THE OPERATION OF SHORT TERM LODGING UNITS WITHIN RESIDENTIAL ZONES. •WHEREAS, the City of Newport Beach is a popular beach and resort community that serves a large number of tourists during the summer months, and WHEREAS, many duplexes and some multi - family structures are rented to college students during the school year and to tourists, for periods of thirty (30) days or less during Summer, and WHEREAS, this influx of tourists burdens City streets and services with heavy volumes of vehicle traffic, and heavy demand on parking, sewage, and refuse facilities, paramedics and police services, and • WHEREAS, this influx of tourists in short term lodging units results in many large parties, gatherings and events, and WHEREAS, the Police Department frequently responds to complaints of noise, disturbances, disorderly conduct and other illegal activity at short term lodging units, and WHEREAS, a large number of short term lodging units are located in residential areas where dwelling units are occupied by the property owner or long term tenants and these permanent residents are adversely impacted by the noise, traffic, refuse and demand for parking resulting from occupancy of short term lodging • units, and WHEREAS, the City Council has reviewed and considered evidence and documentation attesting to the need to regulate and control short term lodging units in residential zones, -1- WHEREAS, occupants of short term lodging units are generally not residents of the City of Newport Beach, may not be residents of the State of California, and the City has limited ability to enforce provisions of this Code and the Penal Code related to noise or disorderly conduct when violated by occupants of short term • lodging units. NOW, THEREFORE, the City Council of the City of Newport Beach hereby ordains as follows: SECTION 1: Section 5.04.030 of the Municipal Code is amended to read as follows: 115.04.030 Branch Establishments And separate Business. A separate license must be obtained for each branch establishment or location of the business transacted and carried on and for each separate type of business at the same location, and each license • shall authorize the licensee to transact and carry on only the business license thereby at the location or in the manner designated in such license. Operation of short term lodging units as defined in Chapter 5.95 of this code is separate business for which a separate license must be obtained for each structure containing a short term lodging unit." SECTION 2: Section 5.04.105 of the Municipal Code is amended to read as follows: 115.04.105 Exemption For Residential Units. No business license shall be required for the business of renting two or less • residential rental units at the same or different locations. A "rental unit" shall mean and include all residential units except one which is the part -time or full -time residence of the owner, and no part thereof is offered or available for rent at any time during the license year. -2- V The exemption for residential rental units shall not apply to rental of units for short term lodging purposes and defined in Chapter 5.95 of the Municipal Code." SECTION 3: Chapter 5.95 is hereby added to the Newport Beach • Municipal Code to read as follows: CHAPTER 5.95 SHORT TERM LODGING PERMIT Sections: 5.95.005 Purpose and Findings. 5.95.010 Definitions. 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. 5.95.050 Conditions. 5.95.060 violations /Penalties. 5.95.065 Procedures For Imposition of Penalties /Revocation. 5.95.070 Permits And Fees Not Exclusive. 5.95.080 Penalty. 5.95.090 Amortization And Amnesty. 5.95.005 Purpose And Findings. The City Council of the City of Newport Beach finds and declares as follows: A. An ever increasing number of tourists renting short term lodging units is severely escalating the demand for City services and creating adverse impacts in residential zones. B. Several thousand dwelling units within residential zones near the City's beaches and harbor are rented for less than thirty (30) days with the vast majority of those rentals occurring during the summer when the demand for parking and City services is greatest. C. Many of the occupants of short term lodging units are permanent residents of areas distant from Newport Beach and the City has no effective way to prevent occupants from continuing to violate provisions of the Municipal Code and Penal Code relating to noise, disturbances and disorderly conduct. The only effective way to minimize the problems associated with occupancy of short term lodging units is to impose responsibility on the owner of the property, either personally or through an agent, to control the -3- conduct of guests and occupants. D. Numerous incidents involving excessive noise, disorderly conduct, vandalism, overcrowding, traffic congestion, illegal vehicle parking and accumulation of refuse are directly related to short term lodging units which increasingly require response from police, fire, paramedic and other City services. • E. The increase in demand for City services resulting from short term lodgings overburdens, and threatens, the City's ability to provide such services. F. Many short term lodgings are operated by agents and /or absentee owners who exercise little or no supervision or control of occupants. G. Problems with short term lodgings are particularly acute in residential districts where the peace, safety and general welfare of the long term residents are threatened. H. The restrictions of this Ordinance are necessary to prevent the continued burden on City services and adverse impacts • on residential neighborhoods posed by short term lodgings. 5.95.010 Definitions. For the purpose of this Chapter, the following definitions shall apply: A. "Lodging Unit" or "Unit" shall mean "dwelling unit" as that term is defined in Section 20.87.140 of this Code. B. "Owner" shall mean the person(s) or entity(ies) that hold(s) legal and /or equitable title to the lodging unit. C. "Short Term" shall mean occupancy of a lodging unit for a period of thirty (30) consecutive calendar days or less. D. "Residential District" shall mean those areas of the City so designated by Title 20 of the Municipal Code. E. "City Manager" shall mean the City Manager of the City of Newport Beach or his or her respective assignees. F. "Finance Director" shall mean the Finance Director of the City of Newport Beach or his or her designee. -4- 5.95.020 Permit Required. No owner of a lodging unit located within a residential district shall rent that unit for a short term without a valid Short Term Lodging Permit (Permit) for that unit issued pursuant to this Chapter. • 5.95.025 Agency. An owner may retain an agent or a representative to comply with the requirements of this Chapter, including, without limitation, the filing of an application for a permit, the management of the short term lodging unit or units, and the compliance with the conditions to the permit. The permit shall be issued only to the owner of the short term lodging unit or units. The owner of the short term lodging unit or units is responsible for compliance with the provisions of this Chapter and the failure of an agent to comply with this Chapter shall be deemed non - compliance by the owner. 5.95.030 Application For Permit. An application for a Permit •shall be filed with the Finance Director upon forms provided by the City and shall contain the following information: A. The name, address and telephone number of the owner of the unit for which the Permit is to be issued. B. The name, address and telephone number of the agent, if any, of the owner of the unit. C. Evidence of the a valid Business License issued by the City for the separate business of operating short term lodgings. D. Evidence of a valid Transient Occupancy Registration Certificate issued by the City for the lodging unit. E. Acknowledgement of receipt and inspection of a copy of all regulations pertaining to the operation of a short term lodging unit. • F. Such other information as the Finance Director deems reasonably necessary to administer this Chapter. 5.95.035 Denial Of Permit. No application shall be denied unless a Permit for the same unit and issued to the same owner has -5- been revoked pursuant to Section 5.95.065 of this Chapter. 5.95.040 Filing Fee. An application for a Short Term Lodging 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. 5.95.050 Conditions. A. All Permits issued pursuant to this Chapter are subject to the following standard conditions: 1. The owner shall, by written or oral agreement, limit overnight occupancy of the short term lodging unit to a specific number of occupants, with the number of occupants not to exceed that permitted by the provisions of Title 15 of the Newport Beach Municipal Code. 2. The owner shall use best efforts to insure that the •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 law pertaining to noise, disorderly conduct, the consumption of alcohol, or the use of illegal drugs. 3. The owner shall, upon notification that occupants and /or guests of his or her short term lodging unit have created unreasonable noise or disturbances, engaged in disorderly conduct or committed violations of this Code or state law pertaining to noise, disorderly conduct, the consumption of alcohol or the use of illegal drugs, promptly use best efforts to prevent a recurrence of such conduct by those occupants or guests. 4. The owner of the short term lodging unit shall use best • efforts to insure compliance with all the provisions of Title 6 of the Municipal Code (Garbage, Refuse and Cuttings). 5. The owner of the short term lodging unit shall post a copy of the Permit and a copy of the conditions set forth in this Section in a conspicuous place within the unit. cm B. The City Manager shall have the authority to impose additional standard conditions, applicable to all short term lodging units, as necessary to achieve the objectives of this Ordinance. C. The City Manager shall have the authority to impose • additional conditions on any permit in the event of any violation of the conditions to the permit or the provisions of this Ordinance subject to compliance with the procedures specified in Section 5.95.065. 5.95.060 Violations /Penalties. A. Violations. The following conduct shall constitute a violation for which the penalties specified in subsection B. may be imposed, or the Permit revoked: 1. The owner has failed to comply with the standard conditions specified in Section 5.95.050(A.); or • 2. The owner has failed to comply with conditions imposed by the City Manager pursuant to the provisions of Section 5.95.050(B.) or (C.); or 3. The owner has wilfully violated the provisions of this Chapter. 4. The owner has failed to pay the Transient Occupancy Tax as required by Chapter 3.16 of this Code. B. Penalties. The penalties for violations specified in subsection A. shall be as follows: 1. For the first violation within any twelve (12) month period, the penalty shall range from a Notice of Violation to a fine not to exceed Two Hundred and Fifty Dollars ($250.00); 2. For a second violation within any twelve (12) month • period, the penalty shall range from a fine not to exceed Five Hundred Dollars ($500.00) to revocation of the Permit; 3. For a third violation within any twelve (12) month period, the penalty shall range from a fine not to exceed One Thousand Dollars ($1,000.00) to revocation of the Permit; and -7- 4. For a fourth violation within any twelve (12) month period, the Permit shall be revoked in accordance with the provisions of Section 5.95.065. 5.95.065 Procedures For Imposition of Penalties /Revocation. •Penalties, including a Notice of Violation, shall be imposed, and permits shall be revoked, only in the manner provided in this Section. A. The Finance Director shall conduct an investigation whenever he or she has reason to believe that an owner has committed a violation described in Section 5.95.060(A.). Should the investigation reveal substantial evidence to support a finding that a violation occurred, the Finance Director shall issue written notice of intention to impose a penalty and /or revoke the Permit. The written notice shall be served on the owner, shall specify the facts which, in the opinion of the Finance Director, constitute •substantial evidence to establish grounds for imposition of the penalties and /or revocation, and specify that the penalties will be imposed and /or the Permit will be revoked within thirty (30) days from the date the notice is given unless the owner and /or operator files, with the City Clerk and before the penalties or revocation becomes effective, a request for hearing before the City Manager. B. If the owner requests a hearing within the time specified in Subsection A, the City Clerk shall serve written notice on the owner, by written mail, of the date, time and place for the hearing. The hearing shall be scheduled not less than fifteen (15) days, no more than sixty (60) days, from the date on which notice of the hearing is served by the City Clerk. The City Manager may • preside over the hearing or may designate a hearing officer to take evidence and submit proposed findings and recommendations to the City Manager. The City Manager shall impose the penalties or revoke the Permit only upon a finding that a violation has been proven by a preponderance of the evidence, and that the penalty or C2:1= revocation is consistent with the provisions of section 5.95.065(B.). The hearing shall be conducted according to the rules normally applicable to administrative hearings. The City Manager shall render a decision within thirty (30) days of the hearing and the decision shall be final. • 5.95.070 Permits And Fees Not Exclusive. Permits and fees required by this Chapter shall be in addition to any license, Permit or fee required under any other Chapter of this Code. The issuance of any Permit pursuant to this Chapter shall not relieve the owner of the obligation to comply with all other provisions of this Code pertaining to the use and occupancy of the lodging unit or the property on which it is located. 5.95.080 Penalty. Any person violating the provisions of this Chapter by operating a short term lodging unit without a valid Permit shall be guilty of a misdemeanor. • 5.95.090 Amortization And Amnesty Period. Owners of short term lodging units shall make application for a Permit pursuant to this Chapter within sixty (60) days after the effective date of this Ordinance. Owners of short term lodgings who, prior to the effective date of this Ordinance, failed to obtain a Transient Occupancy Registration Certificate pursuant to Chapter 3.16 of the Municipal Code, may do so without penalty notwithstanding the provisions of Chapter 3.16, if an application for the certificate is filed no later than sixty (60) days after the effective date of this Ordinance. SECTION 4: The Mayor shall sign and the City Clerk shall • attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper of the City, and it shall be effective thirty (30) days after its adoption. . SECTION 5: This Ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach, held on the 27th day of April , 1992, and adopted on the 11th day of May , 1992, by the following vote, to wit: • AYES, COUNCILMEMBERS WATT, TURNER, SANSONE, HART, COX, PLUMMER NOES, COUNCILMEMBERS NONE • ABSENT COUNCILMEMBERS NONE M DID t r D11 Iloll r IRWIN -10-