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January 26, 2016 <br />Insider's Guide <br />From: Kiff, Dave <br />Sent: Saturday, January 23, 2016 6:49 PM <br />Subject: Insider's Guide - Tuesday, January 26, 2016 <br />So the Insider's Guide was taking a lazy Saturday afternoon nap when, in the middle of a dream involving Sarah Palin <br />talking about Balboa Island sea walls, the Guide realized that the Guide had not sent itself out in advance of the <br />Tuesday, January 26th City Council meeting. It woke up a start. No, the Guide had not had any beer. <br />So here it is. And thank you, Governor Palin, for your concern about our seawalls. <br />This is what may be of interest to you on the Newport Beach City Council meeting of Tuesday, January 26th, <br />2016. Meeting information and a link to the full Council agenda is at the end of this e-mail. <br />The study session starts at 5:00 p.m., a little later than usual. We'll cover an interesting topic —short-term rentals in a <br />time of airbnb (correct, airbnb has no caps, no dashes!) and VRBO and homesharing. The short version of it is that our <br />current code says that vacation rentals are permitted when they are under 31 days, when the location has a permit, <br />when they remit bed taxes to the City, and when they're in the right zone. The right zone is anything but R-1 (with an <br />exception below). <br />If you live in R-1, and you are one of the Lucky Few, you've got a short-term lodging permit (STLP) that was issued <br />before a moratorium on new STLPs in the R-1 zones back in 1994. Homes in the R-1 with current STLPs were <br />grandfathered -in, meaning that the property can change title but the pre -1994 permit stays with the property unless <br />revoked. Revocations can occur for misbehavior of tenants, among other things. <br />Anyway, on to 2016! In recent years we've seen more and more folks use (and like) airbnb. All good, right? Well, <br />maybe not. If you're operating an airbnb in an R-1 without an STLP, you're breaking the rules. You may not be paying <br />hotel bed taxes, like your fellow STLP-ers and area hotels are (you've unleveled a pretty important playing field). And <br />your neighbors may be a tad upset at you for operating something akin to a hotel in a residential area. <br />So the questions for the community and council are: should we apply greater enforcement to folks operating vacation <br />rentals without proper permits? On the other side of the pendulum, should we issue more STLPs, including lifting the <br />moratorium in R-1 zones? What about something in the middle — like allowing more summer rentals in R-1, but not in <br />the off-season? Or Thurs-Sundays? Or lift the cap just to the number of permits that we had in 1994 (some properties <br />today have SLTPs that are not active...)? Should the Code allow more homesharing versus total vacation rentals, where <br />the homeowner must live there during the time of the rental? (forgive me, but that doesn't sound like fun —the Guide <br />would be a total wet blanket to vacationers in the Guide's house — "is it so hard to put the dang Cheerios box back in the <br />cupboard?P!"). <br />High -visitor communities across the region are dealing with this same issue — San Clemente, Laguna, etc. What fun. <br />The regular session starts at 7:00 p.m., and there are some significant items on there. I'll highlight only a few. <br />Mooring rates come back, following an appraisal that supported the Council's 2015 suggestion that a $35/linear <br />foot/year was a good rate for offshore moorings. This item is proposed to be heard at 7:30 p.m., because we <br />anticipate a good number of mooring permittees with us. <br />Blackball is back (and gosh, we thought we could actually leave this on the Consent Calendar), but it's merely to <br />codify what the Council agreed with last summer. I won't get into it all again, but if this is an issue you care about, <br />please read the staff report. <br />