HomeMy WebLinkAboutSS3 - Short-Term Lodgings�EWPR CITY OF
T
- z NEWPORT BEACH
<,FoR�P City Council Staff Report
August 9, 2016
Study Session Item No. SS3
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Kimberly Brandt, Community Development Director - 949-644-3232,
kbrandt@newportbeachca.gov
PREPARED BY: Brenda Wisneski, Deputy Community Development Director —
bwisneski@newportbeachca.gov
PHONE: 949-949-644-3297
TITLE: Short -Term Lodgings (STLs)
ABSTRACT:
Following an overview of the City's permit regulations for short term lodging (STL) at the
January 26, 2016 Council study session, staff was directed to review several topics and
obtain feedback from the community. The following details the efforts conducted and
conclusions made to date.
DISCUSSION:
Per City Council direction, staff has completed the following:
1. Public outreach including the following events/discussions:
• March 23rd and June 21St Community Meetings
• Newport Beach Association of Realtors
• Balboa Island Improvement Association
• Individual meetings with Residents and Realtors
2. Evaluated allowing STL in some R-1 zones on the Peninsula
3. Developed a draft definition of "homesharing"
4. Expanded operational standards for vacation rentals reflective of best practices
and public input
5. Pursued agreements with the online services to disclose rental information and
submit Transit Occupancy Tax to City
While vacation rentals are part of the culture in certain communities in the city, there are
numerous concerns that the increase in the number of STLs is impacting
neighborhoods, and that there are STLs being established in areas where they are not
permitted. Staff has also learned that there are very responsible professional
management companies that focus on vacation rentals, which result in minimal, if any,
impacts to the neighborhood.
Based on the significant amount of suggestions and feedback received from the
community, staff offers the following recommendation for Council's consideration.
SS3-1
Short Term Lodgings (SLTs)
August 9, 2016
Page 2
Staff Recommendation
To maintain the character of the City's residential neighborhoods, a two phased
approach is outlined below.
Phase One — Implement through Summer 2018, which includes 2 Summer Seasons
1. Expand the STL Operational Requirements. See Attachment 1. STL permits
are subject to standard conditions listed in Municipal Code Section 5.95.050,
which was last updated in 2003. Comments from residents, as well as STL
managers, indicate the need for a more robust list of conditions to ensure that
best practices are implemented. It is also recommended that the operational
standards be separate from the Municipal Code so that they can be updated as
needed, as determined by the City Manager. The standards would be posted the
on city's website and attached to all STL permits.
2. Require permits to be renewed on an annual basis. Currently STL permits
are issued on a one-time basis. Offering a streamlined, on-line service would
allow permits to renewed more easily, and an annual renewal will ensure that
operators are kept aware the City's operational standards.
3. Require Property Owner to Submit HOA verification. Prior to the City's
issuance of a STL permit, documentation from the homeowner association shall
be submitted verifying that respective HOA's CC&Rs allow for vacation rentals.
This requirement may also be included in Municipal Code.
4. Require a Minimum Stay — 4 nights or other appropriate #. Requiring a
minimum night stay is common for most STL management companies. Longer
rentals reduce guest turnover and associated impacts such as large amounts of
trash, frequent cleaning services, and personnel and laundry. Staff
recommending that this be included as a new operating standard.
5. Include "Homesharing" in Municipal Code definition. Homesharing is the
practice of leasing one room within a residential unit where the owner, tenant,
agent, or rental manager is the long-term occupant of the unit. Transient
occupancy taxes are also collected for Homesharing. Homesharing does fall
within the City's definition of a short-term rental, but staff recommends that the
term be clearly identified in the Municipal Code.
6. Phase out the 212 "grandfathered" single family properties. STL permits
located in single-family zones which were issued prior to June 1, 2004 are
considered "grandfathered" and there is not a Municipal Code provision to phase
out the ability to have a STL permit. There are 212 "grandfathered" properties,
and 92 have active STL permits. To maintain the single-family character of these
neighborhoods and eliminate the inequity created by the ability for these
properties to obtain STL permits in the single-family zones, staff is
recommending that these properties be phased out by an appropriate
amortization period such as 10 years or perhaps less.
SS3-2
Short Term Lodgings (SLTs)
August 9, 2016
Page 3
7. Increase Code Enforcement Program. The community would benefit greatly
with the implementation of a more aggressive enforcement program aimed at
vacation rentals. While vacation rentals are part of the community's culture, the
increase in these uses has the potential to impact the quality of life for residents.
For this reason, enforcement of best practices and elimination of vacation rentals
in unpermitted zones is critical. A comprehensive Code Enforcement Program is
attached which would be supported by one part-time contract position in Code
Enforcement, another part-time contract position in the Revenue Division and an
outside vendor. The total annual cost of the Code Enforcement Program is
$204,000 to $211,000.
8. Continue to negotiate with online host platforms. Discussions with on-line
platforms continue, but with limited progress. Therefore, an effective code
enforcement program is critical.
Phase Two — Evaluation of Phase 1 Effectiveness
Staff would return to the Council in Fall 2018 with monitoring data to determine the
effectiveness of Phase Once in improving compliance with the STL provisions. If
additional regulations are needed, considerations may include establishing a cap on the
total number of STL permits issued citywide or geographically, extending the length of
minimum stay requirements, limiting the number of days any particular property could
be used for vacation rentals, and/or other more aggressive code enforcement efforts.
Phase Two may also include increased audits to improve compliance with transient
occupancy tax requirements. Currently, audits are limited to hotels which are
conducted by a city employee. Recognizing the growth of STL permits in the City and
the limits of the current auditing efforts, a contract employee devoted to the auditing and
enforcement of the City's Municipal Code transient occupancy tax provisions would
increase compliance. A full time, contract auditor is estimated to be $110,000 annually.
Not Recommended
1. Expansion of STL areas. STL is currently permitted in residential zones, with
the exception of single-family and some Planned Community districts. The City
Council requested staff review allowing STL within the few small pockets of
single-family districts on the Peninsula which are located amongst two -unit
residential districts. Research reflects that many of these single family districts
were re -zoned to single family in 1989 due to their small size, while other areas
have historically been designated single family. The purpose of precluding STL
in single family neighborhoods is to maintain the single-family character of these
areas. Therefore, expansion of the areas where STL is permitted is not
recommended.
CONCLUSION
With City Council's direction, staff will return to a regular meeting to request
consideration of necessary amendments to the Municipal Code and additional
resources required for implementation. The correspondence received to date are
contained in Attachment C.
SS3-3
Short Term Lodgings (SLTs)
August 9, 2016
Page 4
ATTACHMENTS:
Attachment A — Proposed Operating Standards
Attachment B — Code Enforcement Program
Attachment C — Correspondence
SS3-4
Attachment A
Proposed Operational Standards
SS3-4
DRAFT
SHORT TERM LODGING PERMITS
PROPOSED OPERATIONAL CONDITIONS a
(Updated August 2, 2016) qeoRP
Excerpt from Newport Beach Municipal Code Section 5.95.050. Proposed modifications are underlined.
1. Maximum Occupancy: The owner shall, by written or oral agreementlimit overnight occupancy of the
short term lodging unit to two (2) adults (18 Vears of age of older) per bedroom a SP8G f r. ^umber e
E)GGUPaRtS, with the Rumber Gf GGGUpantS RGt te eXGeed that permitted by the proviSieRS Of Title 15 ef the
Newport Beach M n'r'nol Gede
4--.2. Minimum Stay: Lodging units shall be rented to a quest(s) a minimum of four (4) days.
32. Control of Unreasonable Noise: 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.
43. Prevent Recurrence of Unreasonable Noise: 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.
54. Refuse Collection. 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).
65. Interior Notification: 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. The notice shall contain
the following:
The name of the local contact person's name, phone number, and/or email at which that
person may be reached on a 24 hour basis. The local person must be located within 10
miles of the unit.
ii. Number of overnight quests permitted.
iii. The number and location of on-site parking spaces.
;J,.,. The trash DickuD day for the unit and notification of current Municipal Code rules and
regulations concerning the storage and placement of containers for waste collection.
v. The date and location for on -street parking affected by street sweeping_
,i 'v Notification that the occupant/quest is responsible for all activities occurring on the property
and that the occupant/auest may be cited and fined for creatina a disturbance or violatina
any provisions of the Municipal Code
76. Exterior Notification: The owner of the short term lodging unit shall display a notice on the exterior of
the dwellina unit so that it is leaible and visible to the aeneral Dublic. The sian shall include:
i. Local contact person and phone number who is available on a 24-hour basis and resides
within 10 miles of the propertV.
SS3-5
DRAFT
Short Term Lodaina Permit Number and Citv website address to access permit
information.
iii. The phone number of the City's Police Department 949-644-3215 and Code Enforcement
Department 949-644-3717.
7:8. Safety Enhancement Zone. With respect to any short term lodging unit that is located in any Safety
Enhancement Zone, the owner of the unit and any agent retained by the owner shall take immediate
action during the period that the Safety Enhancement Zone is in effect to prevent occupants or guests
from engaging in disorderly conduct or committing violations of this code or State Law pertaining to noise,
disorderly conduct, the consumption of alcohol or the use of illegal drugs.
Local Contact Person Information: The owner shall provide the City with the name and 24-hour phone
number of a local contact person (as defined as a person residing within 10 miles of property). Failure to
respond to calls from the City in a timely and appropriate manner may result in revocation of the short
term lodging permit. The owner or managing agent must provide new local contact person and his or her
phone number within 5 business days of a change in the local contact person.
Required Parking: The owner shall ensure that all available parking spaces onsite, which may
include garage, carport, and driveway spaces, and tandem parking, are available for the
occupants/quests of the short term lodging unit.
4$11. Permit Number to be Displayed on Advertisements: Require any agent, owner, or hosting
online platform to list the City's short term lodging permit number on any advertisement.
44-.12. Unregistered or Otherwise Non -Compliant Units: If any owner, managing agent, or online
hosting platform causes or permits the short-term rental of a dwelling unit without first obtaining the
appropriate City permit and license shall be in violation of the City's Municipal Code. The owner and/or
managing agent will be required to vacate the transient quests from the unit at the end of their
agreement. All subsequent agreements shall be terminated.
4-2-.13. No Commercial Activity: The dwelling unit shall not be used for any type of commercial event.
14. Citv's Riaht to Access: The short term Iodaina unit may be entered for inspection purposes with
consent or a legal court order
SS3-6
Attachment B
Proposed Code Enforcement Program
SS3-7
SS3-8
c
m
F n
U'Z
,v
y 1P
VI.IF t)ft:
Short Term Lodging
Proactive Code Enforcement Program
August 2, 2016
Inter-Departmental Coordination
1.
Code Enforcement to coordinate with the Police Department and monitor
issuances of DACs and LUGOs on properties permitted to operate STL.
2.
Revenue Division to direct all reports STL operations located in areas where they
are not permitted to Code Enforcement for investigation and potential
enforcement action.
Proactive Investigation
1.
Contract with a professional service to provide a very robust database of on-line
advertisements, their locations and violations.
2.
Increase part-time, contractor services to a full-time position in Revenue Division
to review database discussed above, follow up on potential violations and
collection of transient occupancy tax, and perform other administrative duties
related to short-term lodging permits.
Proactive Enforcement
1.
Enforce or abate unlicensed STL. STL may be located in the proper zone, but
require a license. STL located in areas not allowed shall be abated.
2.
Impose Tier 2 fines for STL violations, as necessary.
3.
Suspend permit for 60 days if LUGO issued.
4.
Suspend permit for 60 days if two DACs are issued in a consecutive twelve-
month period.
Outreach
1.
Revenue and Code Enforcement Divisions to meet with STL permit holders
annually, or more frequently if needed, to review operational standards and
permit renewal process.
2.
Continue to refine STL webpage as identifying areas STL are permitted and
existing STL permits; encourage residents to report potential violations.
SS3-8
Required Additional Resources
Currently, a part-time contractor assists the Revenue Division in monitoring the on-line
platforms for STL operating without a permit or in an area where they are not permitted,
and preparing all the necessary follow up paper work and tracking.
Although, this approach has been successful, staff is recommending that the City
pursue an agreement with an outside vendor to augment these services with a more
robust approach in identifying unpermitted short-term rentals that are advertised on the
various web platforms. This cost is estimated to be $80,000.
It is requested that the existing part-time contractor in Revenue be increased to full-time
to address increased administrative needs (annual permitting process), review the
database provided by the outside vendor, contact homeowners, and track compliance.
The increased cost would be $66,000 annually.
It is also recommended that the City contract for part-time (50%) services to assist Code
Enforcement with all aspects of the program including abatement of unlicensed and
illegally located STL units. The estimated cost is $58,000 - $65,000 annually,
depending on qualifications.
The total cost of these additional resources is $204,000 to $211,000 annually.
Staff expects that these costs will be offset by administrative citations and the collection
of unpaid transient occupancy taxes and other City fees.
Abbreviations:
DAC- Disturbance Activity Citation
LUGO- Loud and Unruly Gathering Ordinance
STL- Short-term Lodging
SS3-9
Attachment C
Correspondence
SS3-10
June 29th, 2016
Dear Newport Beach City Staff,
My name is Joanne Baker and I am a resident of Newport Beach.
G�OVFn �y
COMMUNITY
JUN 3 p 2g%
01�xl 10A- DF -VE OPl ENT
P
NEWPOIXI Ti
own my property in Newport Crest.
I attended the meeting June 21St, 2016 in the Community Room to hear about the city's perspective and plans for
short term lodging and to listen to other residents point of views.
Unfortunately, the tone of the meeting from the residents was angry and loud and some of us did not get the
opportunity to voice our views.
Most of the upset seemed to come from the Flower Streets residents in Corona Del Mar.
My experience has been very different from the position they took.
I recently retired as an O.R. nurse from Hoag Hospital.
After 44 years in nursing I looked forward to a time while I was still relatively healthy to enjoy my life and activities.
Hosting on Airbnb has given me the opportunity to make the little extra income I needed to augment my
retirement funds and it gives me time to administer to the non- profit I founded for Aids orphans.
(Besides, it's a refreshing change from being around grouchy surgeons).
But more importantly to me, hosting has given me the outstanding opportunity to be the "global citizen" I like
being.
I have met people from ALL over the world, interacting with them and learning about other cultures. (Italy,
Germany, France, England, Wales, Australia, New Zealand, India, China, Japan, Mexico, just to name a few).
And I believe that I also provide a needed service to many of my guests.
Aside from the perception that guests create noise, unwanted extra traffic and stretch local resources, my guest
just takes the place of a full time renter I may have to have to make ends meet. And guests are only here about
half the time of a full time renter, for the same amount of money for me and the renter probably would use more
resources. And besides, there would be no license fees or occupancy tax for the City if I had a renter over the
Airbnb guests.
I keep a low profile in my neighborhood and ask my guests to do the same. I truly believe that I have not had one
experience that has had a negative effect on my neighborhood. In fact, full time noisy neighbors who rent out to
college students as full time renters, and barking dogs day and night create a more disruptive environment.
About half of my neighbors are currently renters and I'm not even sure they are aware of my having Airbnb guests
as I often have friends visiting and am home while my guests are here.
provide a "homestay" experience, share meals and conversations and sometimes take my guests around to the
beautiful places and views we have here in Newport Beach. It's more than a "vacation rental" since I am in the
home at the same time. One of Airbnb's slogans is "live here" and that is the type of environment I try to create
for my guests. A "home" environment.
I do wish we could separate the verbage, "short term lodging" and "homestay" as I do believe they fit a very
different description from one another. The Flower Streets residents painted a picture of entire homes being
rented out and loud parties, extra trash and parking issues.
SS3-11
My guests rent out a single bedroom in my home.
Airbnb is an amazing conduit for interesting people to find places to stay that offer that "home" feeling.
Many would not come if they had to stay in a hotel or pay those higher prices.
Airbnb verifies guests information (unlike hotels do), get feedback from other guests, and even rate you as a host.
I am lucky enough to be what Airbnb calls a "super host" by qualifying in a 5 star rating system.
I am very selective in who I accept as a guest depending on the double review system set up by Airbnb.
They also collect the fees due making the money part easy for the host. (However, Airbnb does not collect the 10%
occupancy tax which I have to collect personally from the guest, making this part a little uncomfortable since the
guest has already paid for the room through airbnb).
My guests have included an array of interesting people that have enhanced my life – many of them have become
friends. I plan on visiting in their homes across the world.
Doctors, lawyers, nurses, International students, Grad students, in -vitro patients here to see a local fertility doctor
–some of them corse from other parts of the world even; patients who come to Hoag for surgeries but need a
place to stay locally for a few days before they travel back home. Teachers, engineers moving to the area for jobs
from other states and even other countries, and mothers visiting their daughters in eating disorder programs here
in Newport Beach and families coming to visit one another whose homes are too small to accommodate them.
Parents attending graduations at OCC, UCI and USC; visiting professors to UGI from Japan - lovely guests.
Guests coming to weddings on the boats in Newport Harbor. Snowbirds from up North in the winter, - my special
appeal is to the "senior traveler". Avery different demographic from the types of people the Flower Street
residents were describing.
I love that all these guests embrace their time in Newport Beach, becoming patrons and enjoying the local
restaurants, beaches and bike paths. I believe we are contributing TO the area, not just using up resources.
At about $75 a night before taxes (State and Federal and 10% occupancy tax), I'm not getting financially rich, but
my life has been enriched through this experience in a huge way.
To quote one of my guests – "it's hard to say goodbye after such a good week. You have been my California
lighthouse. You have made me feel safe and shown me the best places. Staying with you in your home has made
me feel calm and rejuvenated. I will think of this trip with warmth and brightness knowing I have a new auntie in
California, had a great sleep and now have a golden tan." Written by a young teacher from Seattle,
This word, "safe" shows up in a lot of my reviews...... this is important especially if you are a woman and traveling
alone. I have not had one guest that wasn't respectful of my home, quiet and considerate of my requests of them.
Please consider these positives in this Airbnb experience.
I am sure with proper monitoring we can "all get along".
If this experience went away for me, it would feel like I lost a good friend.
Thank you for your time and consideration.
Joanne Baker
w. k4__V-
949 375-0616
Tias_arms@yahoo.com
SS3-12
Canyon Crest Estates Homeowners Association
clo Joani Stavale, President
23 Canyon Crest Drive
Corona dei Mar, CA 92625
July 15, 2016
Dear Ms, Brandt
I am President of Canyon Crest Estates HOA, located off of Pacific View Drive, Corona Del Mar. I am writing to you and your
staff on behalf of our Association. This communication is resultant of an approved board action of July 13, 2016,
Canyon Crest is a small community of 42 condominiums. I attended the June 21 community meeting on short terra leases (STL)
in City of Newport Beach neighborhoods. According to the city's maps, our HOA is located within STL zoning. During open
forum, the question was asked by several City residents, .'Why is the City issuing short term lease permits to owners living in
HOAs where their CC&Rs disallow STLs?° The response was that the city cannot enforce HOA CC&Rs (understandable), nor
read all the City of Newport Beach CC&Rs (understandable).
Considering the city's concerns, limitations, and resources, Canyon Crest Estates HOA assumes the onus of responsibility in
reporting our rental restrictions to the City of Newport Beach. We are officially informing the city and want to have on record that
Canyon Crest Estates HOA CC&Rs require single family residency. Our Rules and Regulations require a minimum one
year lease.
CC&Rs Article VII, Section 3, reads:.
Single Family Residences. Residences shall be used exclusively for private single-family residential purposes, subject to the
exemption granted Declarant under Article XV, Section 4 of this Declaration.
Further. our HOA Mules and Regulations state:
Per CCRs (Article Vil.1) Canyon Crest Homes are to be used exclusively for single-family residential purposes, i.e., "share
houses", renting rooms to unrelated parties, commercial room rentals, (e.g., VRBO, AIRS&B, etc.), or ether transient/short term
rentalluse of a Unit is not permitted.
The Homeowner is responsible for informing tenants of all Rules and Regulations.
Leases require a one (1) year minimum lease terra. the HOA may make exceptions to this requirement based on individual
circumstances. The owner will provide a copy of the lease to the Management Company upon request.
The addendum enclosed includes all 42 Canyon Crest Estates HOA addresses for your files as "single family residency" and a
minimum one year lease.
Perhaps the City of Newport Beach and the local HOAs can collaborate for a peaceful resolution which will stop the permitting of
STLs where HOA CC&Rs restrict use and qualify leasing terms.
What Canyon Crest Estates HOA would ask the City to consider are several options for STL permit applicants:
1. Add the following questions to the permit form:
• Is your home in a HOA?
• If yes, do the CC&Rs and/or Rules and Regulations allow short term leases?
2. If in a HOA, include two board members' signatures that the HOA is aware of the application for a STL permit.
3. Red flag addresses that have been reported to the city as having HOA CC&R rental restrictions.
4. Require notification and signatures of X number of adjacent neighbors.
5. Place the responsibility on the HOAs to report to the City of Newport Beach the pertinent CC&Rs qualifying language
and corresponding HOA addresses as Canyon Crest Estates has done in this correspondence_
Canyon Crest Estates HOA thanks you and your team for assisting us in being proactive as we protect our community culture
and a went. We would be glad to participate in solutions that are in the best interest of the majority of our fine city's
resi ntial wners.
Si erely,
Joa e, President, iastavaleta3aol.corn, 949-7016-9665
Canyon st Estates Board of Directors
c: Canyo Crest Estates HOA Board of Directors
Marti Mello, Powerstone Property Management
Bradley Walker, Esq.
SS3-13
Canyon Crest Estates HOA, Corona Del Mar, 92625, 42 condominiums
CCRs and Rules require single family use, one year minimum lease, no STLs.
Address
1 Canyon Crest Drive
3 Canyon Crest Drive
5 Canyon Crest Drive
7 Canyon Crest Drive
9 Canyon Crest Drive
11 Canyon Crest Drive
17 Canyon Crest Drive
19 Canyon Crest Drive
21 Canyon Crest Drive
23 Canyon Crest Drive
25 Canyon Crest Drive
27 Canyon Crest Drive
29 Canyon Crest Drive
31 Canyon Crest Drive
33 Canyon Crest Drive
35 Canyon Crest Drive
37 Canyon Crest Drive
39 Canyon Crest Drive
41 Canyon Crest Drive
1 Canyon Lane
2 Canyon Lane
3 Canyon Lane
4 Canyon Lane
5 Canyon Lane
6 Canyon Lane
1 Crest Circle
3 Crest Circle
5 Crest Circle
+6 Crest Circle
7 Crest Circle
8 Crest Circle
9 Crest Circle
10 Cast Circle
11 Crest Circle
15 Crest Circle
17 Crest Circle
19 Crest Circle
20 Crest Circle
21 Crest Circle
22 Crest Circle
23 Crest Circle
SS3-14
From: Newport Beach News [ ma i Ito: noreply(d) newportbeachca. gov]
Sent: Wednesday, June 22, 2016 7:57 AM
To: Brandt, Kim
Subject: Short -Term Lodging Meeting
Hi Kim,
We attended the Short -Term Lodging (STL) Meeting last night and wanted to reach out and
thank you and everyone in your department for handling this process so professionally.
Unfortunately those of us who are in favor of STL did not have an opportunity to have our voices
heard due to the din raised by the STL proponents. I hope you know that these proponents do not
represent the majority IMHO.
It appears you are making good progress and we do like the concept of matching police reports
with property owners. We are not in favor of the proposed sign as proposed.
Just as there are no bad dogs —just bad owners, same goes for STL property owners — there are
good ones and bad ones.
We have been licensed hosts for almost 2 years and have had nothing but positive experiences.
Keep up the great work.
Regards,
Chuck & Angela Cortright
721 & 721 1/2 Marguerite Ave, Corona del Mar, CA 92625
949-933-0455 mobile
SS3-15
From: Kevin Trussell[mai Ito: kevin@)advancedlumber.com]
Sent: Friday, June 24, 2016 10:08 AM
To: Brandt, Kim
Subject: Vacation rentals
Kim,
I recently purchased a duplex on the Peninsula, with the intention of living in one unit and
renting out the second. I use a local management co to vet the tenants, to insure partiers aren't
trashing my place and disturbing the neighbors. The vacationers must pickup the keys st the
management office. This allows for a second look. They also stop by to make sure that maximum
occupancy of 6 is not exceeded. Those breaking our rules are asked to leave.
I paid for a STR permit and remit a bed tax to the city.
Airbnb was tested. But I felt we lost control over the maturity of our guests.
I believe all landlords should be held to this standard. Unfortunately, a few violate the City's
rules and give us good guys a bad reputation.
I attended the last community outreach and was satisfied with your proposal. I think rigid
enforcement of the existing regulations and enacting the new plan would go a long way towards
our goals
Some of the residents suggested a minimum stay of 7 or 30 days. I disagree. Many families
simply can't afford lengthy vacation or are looking for a weekend getaway.
The idea to limit total rental days to 90 is also a bad idea. While it's said " it's not about the
money" it is. Vacationers spend more than residents on a daily basis, pay sales and bed tax, fill
parking meters and boost local business revenues.
Thank you for your consideration. I'm available for further discussion, if needed.
Kevin Trussell
714-679-0632
SS3-16
From: Michael Dutton [mailto:dttnmchl@yahoo.com
Sent: Monday, July 25, 2016 3:18 PM
To: Dixon, Diane <ddixon@newportbeachca.gov>; tpetros@newportbeach.gov; Duffield, Duffy
<dduffield@newportbeachca.gov>; Muldoon, Kevin <I<muldoon@newportbeachca.gov>; Selich, Edward
<edselich@road run ner.com>; speotter@newportbeachca.com; Curry, Keith <keithcurrvl@vahoo.com>
Cc: Buzby, Lisa <lbuzby@newportbeachca.gov>
Subject: Short Term Rentals
July 25, 2016
City of Newport Beach
Diane B. Dixon, District 1, Mayor
Tony Petros, District 2
Duffy Duffield, District 3
Kevin Muldoon, District 4, Mayor Pro Tem
Edward D. Selich, District 5
Scott Peotter, District 6
Kieth D. Curry, District 7
Dear Mayor and Council Members,
I am writing this letter to request the City of Newport Beach to reconsider its position
concerning the issuance of short-term lodging permits to housing units subject to
CC&R's.
On June 21, 1 attended the community meeting held by the City of Newport Beach
regarding short-term rentals. At that meeting, I asked why the City grants short-term
lodging permits to owners of properties located in residential communities subject to
CC&R's which specify that short term rental activities are prohibited. The Assistant City
Attorney attending that meeting answered my question by stating that the City does not
have the staff capacity to review all CC&R's to assess whether short term rental
activities are permitted and that the enforcement of CC&R's is a private contractual
matter that should be addressed by the owners of the units subject to the CC&R's.
I believe that the City's position on this matter is unreasonable since it ignores the fact
that the issuance of the short term lodging permit by the City enables the CC&R short
term rental violations in the first place. While it sounds plausible that the owners of the
units subject to CC&R's should be able to enforce compliance with the rules, the fact of
the matter is that most of the projects in Corona Del Mar that are subject to CC&R's are
two unit 'duplex -style' condominiums which either do not have a formally constituted
homeowners association (HOA) or have one that is composed of only two members -
the owners of each of the units - and is therefore stalemated and unable to act on any
matter on which the owners do not agree. Accordingly, by issuing short-term lodging
permits to property owners intent on engaging in short term rental activities in open
violation of CC&R restrictions, the City forces the owner(s) of attached unit(s) who
SS3-17
object to such activity to hire lawyers and incur substantial legal costs to enforce the
CC&R requirements.
My wife and I live in a 'duplex -style' condominium on Poinsettia Avenue in Corona Del
Mar and are currently in the middle of dealing with this exact situation. In violation of the
CC&R's governing our building, the owner of the rear unit obtained a short term lodging
permit from the City of Newport Beach and regularly rents her home out to transient
renters she obtains by listing her home for rental on various short term rental web sites
such as Airbnb and VRBO. This short term rental activity is extremely disruptive for a
variety of reasons caused by the transient renters including excessive noise, multiple
loud parties, trash problems, parking problems, etc. Moreover, we believe that the rear
unit owner's actions in disregarding the CC&R's and effectively operating a motel
business in our condominium building significantly diminishes the market value of our
home since many prospective buyers would not purchase a home that is attached to a
short term rental unit. When the rear unit owner commenced this short-term rental
activity and refused our requests to discontinue this activity, we contacted the City for
help, however, the City refused to intervene and revoke the short-term lodging permit
for the rear unit despite the fact that we provided the City staff with the specific
language in our CC&R's which clearly shows that short term rentals are prohibited in our
condominium project. Accordingly, we ultimately hired a law firm and commenced legal
processes to enforce compliance with the CC&R's. This legal action caused the owner
of the rear unit to take a number of retaliatory actions against us and has required us to
file a lawsuit against the rear unit owner to protect our rights. So far, we have spent
over $30,000 in legal fees and we have not yet resolved the matter. I believe that these
legal costs could have been avoided if the City made some relatively minor changes to
its short term lodging permit application process to ensure that permits are only issued
to applicants who either are not subject to CC&R restrictions or have complied with the
terms of such restrictions.
The City should amend its short term permit application process to require the applicant
to answer whether or not the property is subject to CC&R's and, if the answer to this
question is "yes", to require the applicant to answer if the CC&R's allow short-term
rental activities (or better yet, to require the applicant to submit affirmative evidence that
short term rentals are allowed such as a signed approval of the homeowners
association or approval by the owners of other units attached to the property). If an
applicant were to answer these questions falsely, the City could then revoke the short
term housing permit and/or impose substantial fines on the applicant if owners of units
attached to the property were to subsequently file complaints with the City after short
term rental activities commence. A simple modification to the permit application
process along the lines suggested above would not require the City to undertake a
detailed legal analysis of all CC&R's and would provide vital protection to all of the
owners of properties in our community. Moreover, I noted during the community
meeting that the City of Newport Beach, like the City of San Francisco, is taking legal
action against Airbnb and other online short term rental platforms to require them to only
accept listings from properties that have valid short term rental permits. I think it is only
reasonable that if the City expects online rental platforms to consider the City's rules in
SS3-18
accepting listings, the City should likewise consider CC&R rules in issuing short term
lodging permits to properties located in condominiums and other attached housing
developments.
I know that the City Council is considering the issue of short term rentals at its August
9th meeting. I respectfully request that the matters raised in this email are considered
during this meeting.
Respectfully Submitted,
Michael J. Dutton
608 Poinsettia Avenue
Corona Del Mar, CA 92625
cc: Aaron C. Harp
City Attorney
City of Newport Beach
Site Visitor Name: Chuck Cortright
Site Visitor Email: chuckgcortri_hg t.com
SS3-19
To all it may concern:
While we are discussing short-term lodging rules I would like to add one point.
Many lodgers that enter our communities on a short-term basis feel they are paying a
rental fee and should be allowed to party late in the evening. Whether it is week days or
weekends many of us rise early. As home owners or long term lessees, we are respectful of our
neighbors and noise abuse. Our home is located close to a home that the non resident owners
rent out during the summer. Many nights the vacationers are partying on the patio as late as 1:00
am. We have called the owners several times with our concerns and their reply is that if they
lived in the home they could do as they like. We explained that if you lived in the house you
would not party late (maybe occasionally) because you would be more respectful of your
neighbors.
It is our suggestion that their should be curfews for short term renters, 10:00 pm seems
reasonable for outside. We hope you will give this suggestion consideration.
Sincerely,
Del and Bonnie Chase
Newport Beach resident of 30 years
Sent from my iPad
SS3-20
From: Don Abrams
To: Brandt, Kim
Cc: Wisneski, Brenda; Sally McManus; Hunter Foster
Subject: Meeting
Date: Wednesday, July 06, 2016 3:40:51 PM
Hi Kim and Brenda;
Thanks for meeting with us today. It was illuminating to us and I hope, helpful to you as well. I think
most of our combined suggestions are reasonable and good. The only idea you mentioned that probably
would not work well for us is the uniform sign idea. Our rental signs, like our sale signs, are used to
identify the property and us as managers. A generic sign would be harder for the public to identify and
would tend to dilute our brand.
We appreciate your efforts.
Sincerely,
Don
Sent from my Phone
SS3-21
From:
Bob Small
To:
Brandt, Kim
Subject:
RE: Following up on Short Term Lodging Situation
Date:
Wednesday, June 29, 2016 5:31:38 PM
Okay thanks. But from my prospective it just doesn't make sense. Being able to more effectively
execute LUGO situations is the key and again, it is the locals (long term tenants) that cause the lion
share of the problems. Summer and winter. They go out clubbing and then they come home and
continue to party.
Hope to stay in touch.
Bob
From: Brandt, Kim [mai Ito: KBrandt@newportbeachca.gov]
Sent: Wednesday, June 29, 2016 8:29 AM
To: 'Bob Small'
Subject: RE: Following up on Short Term Lodging Situation
Hello Bob,
The meeting last week was well attended, and there were a number residents in attendance that
were very vocal about the negative impacts of vacation rentals in their neighborhoods. There were
many comments regarding the need for more stringent regulations.
It is our intent to present our recommendations to the City Council on August 9th. The PowerPoint
presentation is on the City's website at this link:
htt //www.newportbeachca.gov/government/departments/finance/revenue-division/short-term-
rentals
k/- � VVL
From: Bob Small [mai Ito: bob(a)coronadelmarproperties.com]
Sent: Tuesday, June 28, 2016 11:45 AM
To: Brandt, Kim
Subject: RE: Following up on Short Term Lodging Situation
Sorry, but I was out of town last week. How did the meeting/presentation go? What was decided
and what might happen next.
Thanks
Bob
From: Brandt, Kim [mai Ito: KBrandt(a) newportbeachca.gov]
Sent: Wednesday, June 15, 2016 10:30 AM
SS3-22
To: 'Bob Small'
Subject: RE: Following up on Short Term Lodging Situation
Hello Bob,
I do apologize for not sending the draft to you earlier. I would appreciate any comments you have
on the proposed changes that are shown in redline.
Please let me know if you have any questions.
From: Bob Small [mai Ito: bob(a)coronadelmarproperties.com]
Sent: Tuesday, June 14, 2016 4:22 PM
To: Brandt, Kim
Subject: Following up on Short Term Lodging Situation
Hello Kimberly. I just received the invite to the meeting on the 21St. It didn't have much
information and I thought you were going to send me a rough draft of the discussion points so I
could chime in, so to speak.
Is that still possible?
Thanks
Bob
Bob Small
Broker - Corona del Mar Properties, Inc.
949-335-2084
BRE 00714743
Corona del liar
P R 0 P E R T I E S
SS3-23
From:
Craig Batley
To:
Brandt, Kim; Wisneski. Brenda
Cc:
Harp, Aaron
Subject:
STL Promise
Date:
Friday, July 15, 2016 3:29:36 PM
Attachments:
SHORT TERM RENTAL CONDITIONS 2016-1.docx
Hi All:
As discussed, attached is a rough statement of proposed conditions & promise that each STL permit
holder must agree to each year when renewing their STL permit. The last public forum many
residents voiced their concern of permits being issued when the CC&R's prohibit such. I believe the
city should make all owners responsible to NOT violate CC&R's of their respective units AND if they
do the city has the right to revoke said STL BECAUSE the terms they agree to stipulate issuance of a
STL will NOT violate CC&R's.
As the August 9th council meeting is around the corner I suggest we meet once again to review the
Pledge & Promise to obtain the STL permit. We want to submit to council something that will work
in the market place.
Please advise
CRAIG BATLEY
C� (949) 675.4630 1,-:(949) 675.2127
BRE if. 00483753
Burr White Realty www,bnrrwhiit.c<?m
2901 Nvgxot Knolea-ard, Ne mgpUrw. BtaCh, CA 92663
SS3-24
SHORT TERM LODGING PERMIT RENTAL CONDITIONS
Permit Requirements.
STL permit holder is responsible for compliance with the provisions of Chapter 5.95 of the Newport Beach
municipal code and the failure of an owner or agent to comply with this chapter shall be deemed non-
compliance subject to chapter 5.95.060 of the code.
Usage Limits
No vacation rentals can be used for business purposes such as business retreats, sales events, non -owner
participant wedding receptions, or other high intensity purposes without an additional permit.
How many short-term rentals can I have in my home? Only one short-term rental shall be allowed within a
dwelling. More than one short-term rental within a dwelling shall be considered a Bed and Breakfast and
subject to the regulations outlined in Section 30.48.040Z of the Encinitas Municipal Code.
Minimum Number Days for Rent or Lease
The Minimum number of days that a short-term rental can be occupied is for two nights. Rentals or leases
for one night shall be prohibited.
Maximum Number of Overnight Guests
Maximum number of overnight guests must be stipulated on guest contract, in any event, guest
occupancy shall not exceed 2 guests (excluding children) per bedroom.
California Uniform Housing Code
California's Department of Housing and Community Development enforces compliance with the state building
codes. The agency has adopted uniform or model codes to help enforce these standards. Under the Uniform
Housing Code, the maximum occupancy standard used to determine overcrowding is located in section
503(b), stating that every dwelling unit must have at least one room which must have at least 120 feet of floor
area. Other habitable rooms must have an area of not less than 70 square feet. The code states that when
more than two person occupy a room used for sleeping purposes, the square area must be increase by 50
square feet for each additional occupant.
Verification by Owner Association/CC&Rs
Verification that short term vacation rentals are allowed by Homeowners Association Conditions,
Covenants and Restrictions (CC&Rs) or other standards, if applicable. STL permits will be revoked upon
proof CC&R's prohibit STLodging.
On-line Advertising
Require that all ONLINE advertising MUST include City permit number.
All internet listings MUST advertise 10% TOT Tax and MUST be in guest contracts
Inspection
All short term rentals are subject to city code enforcement inspection as deemed necessary or at city
discretion prior to subsequent renewals.
Post STL Permit
All STLP Rentals must post permit in prominent place inside unit near the main entry door
Recommended language to be added to the posted permit inside units:
➢ All City of NB laws must be respected, including but not limited to: Noise, Nuisance, Parking and
Occupancy Perm.
➢ PLEASE BE CONSIDERATE OF YOUR NEIGHBORS
SS3-25
Post Business License
All Rentals to post business license in prominent place in unit
General Information
Name address telephone and email of the contact person responsible for managing the short term rental
shall be provided to the City and shall be permanently posted in the rental unit in a prominent location.
Any change shall be provided promptly to all parties described above.
The Owner, or his or her agent shall be available 24 hours a day seven days a week to respond to any guest
or neighborhood questions or concerns.
Post Responsible Contact Number on Exterior and Requirements
Applicants shall display notice on the exterior, within plain view of the general public and/or common
areas, a 24-hour, seven-day phone number answered directly by person responsible for the facility to take
complaints regarding its operation.
Applicants are required to provide a response within 1 hours as outlined in SBMC 4.47.060.
Ineffective or nonresponse shall be grounds for a violation and/or penalty pursuant to NBMC
The INTERIOR notice or STL contract shall contain the following:
i. The name of the local contact person and phone number at which that person may be reached
on a 24 hour basis. The local person must be located within 10 miles of the unit.
ii. The number and location of on.site parking spaces.
iii. The trash pickup day for the unit and notification of current Municipal Code rules and regulations concerning
the storage and placement of containers for waste collection.
iv. Notification that the occupant/guest is responsible for all activities occurring on the property and that the
occupant/guest may be cited and fined for creating a disturbance or violating any provisions of the Municipal
Code.
Exterior Notification: The owner of the short term lodging unit shall display a notice on the exterior of the dwelling
unit so that it is legible and visible to the general public. The sign shall include:
i. Local contact person and phone number who is available on a 24.hour basis and resides within
10 miles of the property.
Short Term Lodging Permit Number
Guest Notification
The owner or operator shall provide guests of the short term vacation rental with the following
information prior to occupancy of the unit and/or shall post such information in a prominent location
within the unit:
➢ Owner or his or her agent contact with 24-hour availability
➢ The maximum number of overnight guests
➢ Trash pick-up day, rules and regulations regarding trash take out and placement/storage
➢ Street sweeping days within 50 feet of property
➢ A copy of CITY NBMC Noise ordinances, including LUGO
➢ Notification that the occupant and/or owner will be fined by the City for noise ordinance violations
DACS/LUGOS
Summary of applicable Homeowners Association Conditions, Covenants and Restrictions (CC&Rs) and
bylaws, including (if applicable) pool location and hours.
Sign LUGO Addendum
All guests must sign a LUGO addendum
SS3-26
DACS/LUGOS Violations
Noise
Any STLP recipient issued 3 DACS/LUGOS violations occurring during a SHORT TERM guest stay (30 days or
less) shall result in City of NB Administration hearing to modify, limit, discontinue, suspend or revoke a
STLP, and OR city of NB has option to inspect property.
DACS and police calls during winter term, (typically 9 -month) leases will not accrue towards DAC violations
on a STLP permitted property
Occupants of the short term rental shall comply with all the standards and regulations of the noise
ordinances of NBMC, sections XXXXXXXX.
Safety Enhancement Zone. With respect to any short term lodging unit that is located in any Safety Enhancement
Zone, the owner of the unit and any agent retained by the owner shall take immediate action during the period that
the Safety Enhancement Zone is in effect to prevent occupants or guests from engaging in disorderly conduct or
committing violations of this code or State Law pertaining to noise, disorderly conduct, the consumption of alcohol or
the use of illegal drugs.
Local Contact Person Information: The owner shall provide the City with the name and 24.hour phone number of a local
contact person (as defined as a person residing within 10 miles of property). Failure to respond to calls from the City in a timely
and appropriate manner may result in revocation of the short term lodging permit. The owner or managing agent must provide
new local contact person and his or her phone number within 5 business days of a change in the local contact person.
Required Parking: The owner shall ensure that all available parking spaces onsite, which may include garage, carport, and
driveway spaces, and tandem parking, are available for the occupants/guests of the short term lodging unit.
Permit Number to be displayed on Advertisements: Require any agent, owner, or hosting online platform to list the City's
short term lodging permit number on any advertisement.
Unregistered or Otherwise Non*Compliant Units: If any owner, managing agent, or online hosting platform causes or permits
the short-term rental of a dwelling unit without first obtaining the appropriate City permit and license shall be in violation of the
City's Municipal Code. The owner and/or managing agent will be required to vacate the transient guests from the unit within
twenty four (24) hours of the City's notification.
No Commercial Activity: The dwelling unit shall not be used for any type of commercial event.
SS3-27
/'VIN
_ JI. A. JI A A A .A A A A A. A.A A A A A A A._A.A.
CITY OF NEWPORT BEACH, Attention City Council
100 Civic Center Drive
Newport Beach, CA 92660
August 2, 2016
REQUESTED COMMUNITY INPUT REGARDING SHORT TERM RENTAL RULES
Council Members,
The Newport Shores Community Association (NSCA) is comprised of approximately 450 homes in the West
Newport Beach area of the City. Our Association maintains a one -acre clubhouse community area that is for the
membership that includes a college size pool, tennis court, basketball court, volleyball court, tot lot and sand
beach BBQ area. The NSCA Board of Directors consists of eleven elected members from the community that are
charged with management of the clubhouse facility and to address issues which impacts the clubhouse property.
The NSCA Board has been closely watching the City's cormnunity outreach efforts as it relates to short tern
rentals (STRs) in the City. Though we are mostly an R-1 community, there are five R-2 property exceptions in
our membership along with three grandfathered R-1 properties that are legally allowed STR permits. STR's
bring increased noise, trash and congestion to already very crowded areas in the City. Parking continues to be an
issue for our community and STR's only exacerbate the situation.
The STRs also directly impact our Clubhouse facility. A situation arose recently where about a dozen people
from outside our neighborhood were utilizing the clubhouse pool in a very unsafe manner. Though the rules are
clearly known by our membership and posted on the facility walls, the individuals choose to ignore them to the
detriment of our members. As it turns out, these people were visiting another family that was staying in what we
believe is an illegal unpernitted STR.
The NCSA Board supports maintaining the current laves for STRs and not expanding STR uses in R-1
areas. The NSCA Board would also support increased enforcement and would support eliminating all
grandfathered permits currently not in use in the R-1 areas throughout the City.
Thank you for your consideration and attention to this issue. Your service to the City is greatly appreciated.
Ce: Dave Kiff, City Manager
511 CANAL STREET
NEWPORT BEACH, CALIFORNIA 92663
NSCA
SS3-28